gms economic cooperation program and asean economic community
DESCRIPTION
GMS Economic Cooperation Program and ASEAN Economic Community. PROSPECTS AND CHALLENGES for LMM. Suchat Katima Director, Mekong Institute (29 Nov 2012). Topics. Greater Mekong Subregion (GMS) The “Prosperity Gap” - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/1.jpg)
GMS Economic Cooperation Program and ASEAN Economic CommunityPROSPECTS AND CHALLENGES for LMM
Suchat Katima Director, Mekong Institute (29 Nov 2012)
![Page 2: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/2.jpg)
Topics•Greater Mekong Subregion (GMS)•The “Prosperity Gap”•Related Challenges in Achieving AEC 2015•Implications on Labor Migration Management
![Page 3: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/3.jpg)
Thailand
Land area: 513 thou sq km
Population: 65.8 M
GDP per capita: US$3,133
Cambodia
Land area: 181 thou sq km
Population: 14.1 M
GDP per capita: US$510
Myanmar
Land area: 677 thou sq km
Population: 54.8 MGDP per capita: US$255 (2005)
People’s Republic of China
Land area: 633 thou sq km
Population: 97.3 M
GDP per capita: US$1,135(figures for Yunnan and Guangxi only)
Viet Nam
Land area: 332 thou sq km
Population: 84.1 M
GDP per capita: US$724
Lao PDR
Land area: 237 thou sq km
Population: 5.7 M
GDP per capita: US$601
The GMS in 2006
Land area: 2.6 M sq km
Population: 323 M
GDP per capita: US$1,453*
* excludes Myanmar
The GMS Economic Cooperation
![Page 4: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/4.jpg)
![Page 5: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/5.jpg)
Infrastructure is developed in specific geographical areas based on economic potential.Usually starts with transport links, but extends to other infrastructure as well as the “software” for their optimal use.
![Page 6: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/6.jpg)
Some Characteristics of Economic Corridors:
• Create links to major markets;
• With nodal points – centers of enterprise development;
• Extend the benefits of improved transport linkages to remote locations and integrates them with more prosperous areas;
• Open up investment opportunities;• Promote synergies through the
clustering of projects;• Provide demonstration effects.
6
![Page 7: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/7.jpg)
Road Transport Network
2015R3 a 228 km R3 b 253 kmR 9 EWEC 2463rd Bridge Nakhon Panom – Takek4th Bridge – Chiang Kong - Hoisai
![Page 8: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/8.jpg)
1992
2004
2012
Power Transmission Line
Telecommunications Backbone
• GMS Power Grid
• Info. Super Highway Network
![Page 9: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/9.jpg)
• Resources:
Available: Gas, Teak, Gemstone, Needs: Refined Oil, investment
Available: Tin, Rubber, HiTech, RiceNeeds: Fuel, Labor
Available: Timber, Fisheries, Product, GemstoneNeeds: Fuel, investment
Available: Copper, Lead, Zinc, Tin, Iron, HydropowerNeeds: Powdered Ores, Timber, Fisheries Products
Available: Timber. Hydropower, TinNeeds: Fuel, investment
Available: Crude Oil, Gas, Coal, ApatiteNeeds: Steel, Refined Oil
Available: Tin, Fisheries, ProductsNeeds: Manganese, Iron
Interdependency of GMS Countries
![Page 10: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/10.jpg)
II. Diversity of GMS
Source: IMF and National Bureau of Statistics of China *Data in 2008
![Page 11: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/11.jpg)
II. Diversity of GMS (cont)GDP per capita (Current USD)
GDP per capita at PPP
(Current USD)Thailand 3,940 8,059Guangxi* 2,155 naYunnan* 1,812 naVietnam 1,060 2,942Lao PDR 878 2,266Cambodia 775 2,015Myanmar 459 1,197
Source: IMF and National Bureau of Statistics of China *Data in 2008
Purchasing power in 2009:
![Page 12: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/12.jpg)
“One Vision, One Identity, One Community”
ASEAN GMS Countries - 2010
Land area: 1.94 M sq Km
Population: 232 M
ASEAN Countries - 2010
Land area: 4.48 M sq Km
Population: 614 M
![Page 13: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/13.jpg)
ASEAN Economic Community by Dec 31, 2015 0% tariff and reduction of non-tariff
barriers Single Production Base Single Marketing Base Free movement of investment,
capital and services Free movement of business people Free movement of knowledge
workers
![Page 14: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/14.jpg)
Source:–AEC Chartbook 2010
Per Capita GDP – US$
![Page 15: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/15.jpg)
Disparity bet. Rich & Poor
Big Economy – Small EconomyCoastal – InlandUrban – RuralRich and PoorHave – Have not
![Page 16: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/16.jpg)
Implications on LMM
1. Second Wave of Migrants
2. More landless labors
3. Limited SME ability to integrate into GVC• Cannot compete with modern SMEs
4. Limited Good Agricultural Practices (GAP)• Less economic self-sufficiency & less food
security
![Page 17: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/17.jpg)
Small and Medium Enterprises
Limited ability to integrate into ASEAN and
global value chains
![Page 18: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/18.jpg)
AgricultureLimited absorptive capacity and adjustment of
agriculture policies and practices to a larger
and more competitive economy
![Page 19: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/19.jpg)
Lack of GAPs and Good Postharvest Practices
![Page 20: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/20.jpg)
What we need for the GMS
Modern farmers Machine operators, mechanics,
electricians, skilled factory workers, accredited vocational skills / MRA
Entrepreneurs Services Providers (Hotel, food
chains, tourism, logistics) Clusters, Associations, Consortia
![Page 21: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/21.jpg)
What we have
BA, MBA, political sciences, humanity
International AffairsLanguages (translators,
interpreters) employees, followers, contented
low skilled workers Loosely organized business
association and Chamber of Commerce
![Page 22: GMS Economic Cooperation Program and ASEAN Economic Community](https://reader035.vdocument.in/reader035/viewer/2022062302/568165a2550346895dd880de/html5/thumbnails/22.jpg)
Conclusion
Development gaps need to be addressed
Education and skills training must be based on current and anticipated needs
Minimum LMM standard and Mutual Recognition Arrangement must be in place and operational
Value chains integration of farmer associations and SMEs – a must