BIMP-EAGA: Regional & international governance system

Holy Trinity University

Puerto Princesa City

GRADUATE SCHOOL

Reporter : ARNOLD C. VALDEZ, JR.,

Subject : PA 808 – Regional and

International Governance System

Professor : ARMANDO RODRIGUEZ, Ph.D.

Topic : BIMP-EAGA

Sultan Omar Ali Saifuddien Mosque, BRUNIE

Toraja House, Indonesia

Mt. Kinabalu, Malaysia

BIMP-EAGA LOCATION MAP

BACKGROUND

In 1992, then President Fidel V. Ramos of

the Philippines proposed a major economic

initiative in ASEAN: the expansion of economic

cooperation among the border areas of Brunei

Darussalam, Indonesia, Malaysia and the

Philippines.

BIMP-EAGA was formally launched on March 24, 1994, in Davao City, Mindanao, Philippines.

This proposal met with a favorable response from the leaders of the three other countries, and eventually led to the creation of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area or BIMP-EAGA.

This sub-regional

economic cooperation is

a key strategy of the

participating governments

to promote socio-

economic development in

their less developed and

more remote territories.Rafflesia arnoldii

EAGA is comprised of the following focus

areas:

1. the entire sultanate of Brunei Darussalam;

2. the provinces in Kalimantan, Sulawesi,

Maluku, and Papua in eastern Indonesia;

3. the states of Sabah and Sarawak and the

federal territory of Labuan in Malaysia; and

4. Mindanao and Palawan in the Philippines.

VISION, GOALS AND STRATEGIC

OBJECTIVES

Strong Public-Private Partnership

One of BIMP-EAGA’s defining characteristics is the strong partnership between the private and public sectors, with each playing a clearly defined role

Since its inception, BIMP-EAGA

recognized for growth in the sub-region to be

sustainable it must be market-driven and private

sector-led. The private sector is thus considered

as the primary engine for BIMP-EAGA’s

growth.

The role of the public sector is that of facilitator and

enabler. As such, the participating governments are

committed to provide BIMP-EAGA with:

A facilitative framework created by coordinating and

harmonizing public policy to establish a unified business

climate conducive to investment

Adequate physical infrastructure needed to link the

businesses of the subregion and to improve their access to

regional and global markets

An effective commercial infrastructure, by providing

avenues for financing, information, and skills to improve

entrepreneurial capacity and capability.

Organizational and Institutional

Structures

To operationalize the EAGA

cooperation initiative, institutional structures

and cooperation mechanisms were

established both at the country and at the

sub-regional levels.

The BIMP-EAGA Summit

The annual Summit of Leaders is the highest

policy level mechanism of BIMP-EAGA. It is where

the Leaders of the four member countries review

the accomplishments and provide new directives

to enhance cooperation. The Summits clearly

demonstrate that BIMP-EAGA not only has full

political support but also that Leaders are taking

great interest in the developments in the sub-

region.

The Senior Officials Meeting and Ministers Meeting (SOMM)

• At the sub-regional level, the principal

mechanism for consultation among the member

countries is the Senior Officials Meeting (SOM)

and the Ministers Meetings (MM). The SOMM

provides the subregion’s strategic directions and

general policy guidelines, in addition to drawing

the attention of the central governments to the

development requirements of the growth area.

The SOM is held at least twice a year and the

MM takes place once a year.

The Clusters and Working Groups

The core operational mechanism for BIMP-EAGA consists of the four Working Group Clusters representing the sub-region’s priority areas of cooperation. Within each cluster are Working Groups representing the priority sectors for development. Public and private sector organizations participate in both the Clusters and the Working Groups. Together they identify opportunities and constraints to cooperation development; establish the sub region’s Flagship Projects; and formulate action plans to accelerate implementation of the Flagship Projects and improve growth in the sub-region.

Cluster Working Group Lead Country

Transport, Infrastructure, & ICT Development (TIICTD)

• Air Linkages• Sea Linkages• Land Transport• Construction & Construction Materials• Telecommunications & Information Communication Technology

Brunei Darussalam

Natural Resource Development (NRD)

• Agro-Industry• Fisheries Cooperation• Forestry & Environment• Energy & Mineral Resources

Indonesia

Joint Tourism Development (JTD)

Joint Tourism Development Malaysia

SME Development (SMED) Capital Formation & Financial Services Philippines

Customs, Immigration, Quarantine & Security (CIQS)

• Customs Sector• Immigration Sector• Quarantine Sector• Security Sector

Philippines

The National Secretariats

BIMP-EAGA initially had a fully decentralized institutional structure without a central secretariat. To ensure that in-country initiatives were sustained, each member country designated a ministry or government agency to serve as its BIMP-EAGA National Secretariat. The National Secretariats mainly coordinate in-country EAGA activities and ensure that commitments are delivered on a timely basis. The National Secretariats also provide technical and administrative support to their respective Senior Officials and Ministers.

BIMP-EAGA Facilitation Center

• The fully decentralized structure gave BIMP-EAGA the flexibility it needed in its formative stages. However, with the anticipated increase in development projects and the growing interest from a number of external partners, the SOMM agreed to create the BIMP-EAGA Facilitation Center (BIMP-FC).

The BIMP-FC is an important component of the concerted effort to revive the EAGA initiative. BIMP-FC is designed to accelerate cooperation development in BIMP-EAGA by establishing more structured institutional coordination and project facilitation mechanisms. The terms of reference of BIMP-FC include:

• Undertaking, jointly with the private sector,

investment promotion and business networking

activities;

• Establishing and maintaining an information

database;

• Coordinating the promotion of trade-related

events;

• Establishing systems and undertaking

monitoring of project implementation activities; and

• Assisting the private sector in resolving issues

related to the implementation of projects.

• The BIMP-FC is public sector-led central

secretariat. It complements the efforts of the

BIMP-EAGA Business Council (BEBC) in

coordinating trade and investment activities, and

in facilitating the implementation and monitoring

of priority development projects.

• The BIMP-FC also functions as the secretariat

for the SOMM. Originally hosted and funded by

the Federal Government of Malaysia and the

State Government of Sabah, the four member

governments of BIMP-EAGA now jointly fund the

operations of the BIMP-EAGA FC.

• The BIMP-EAGA Business Council (BEBC),

formerly known as the East ASEAN Business

Council, was established on 19 November 1994.

It is the official representative organization of the

private sector in EAGA. In recognition of its

standing as an equal partner in the development

of the subregion, BEBC was accorded “fifth

country” status in 1997.

BIMP EAGA Business Council

The objectives of BIMP-BC are:

• Promote economic development and other business

activities in EAGA;

• Foster closer relationships and economic cooperation

among business organizations in the EAGA;

• Deal with issues of common concern and disseminate

pertinent information;

• Make representations on behalf of the BEBC’s

members with the involved governments and to liaison

between businesses, other economic entities and relevant

governments authorities within EAGA; and

• Advocate for policies, plans, projects and regulatory

changes.

In 2003, BEBC successfully carried out its organizational

restructuring, and is now re-focusing its attention on the

development of small and medium enterprises (SMEs).

CLUSTERS AND PROJECTS

• Transport, Infrastructure and ICT Development

• Joint Tourism Development

• National Resource Development

• Small and Medium Enterprise Development

• Custom, Immigration & Quarantine and Security Task Force

Key Sectors

• Agro-industry. Major agriculture products include coconut, palm oil, livestock and poultry, and high-value tropical fruits and vegetables. EAGA areas are focusing on expanded production, complementation, processing and export, to supply specialitymarkets such as the halal food trade.

• Fisheries. The subregion is a global center for the production and processing of important marine products, with tuna and seaweedamong its major exports.

Tourism. EAGA is a leading ecotourism destination.

It has pristine rainforests and vast coral reefs, and is

ethnically and culturally diverse. Tourist activities

include visits to cultural sites, as well as diving,

snorkeling, trekking, mountain climbing, game

fishing, and other adventure sports. Twenty-

two World Heritage Sites are in EAGA, eight are in

Indonesia ; five are in Malaysia; six are in the

Philippines.

Transport and Shipping. EAGA is connected by sea

and air to most major cities in Asia. To ensure its

competitiveness, the subregion is in the process of

upgrading its airports and seaports, and

implementing multilateral agreements to facilitate

cross-border movement.

• Energy. Energy resources are abundant

in the subregion. In addition to oil, natural

gas and coal resources, EAGA offers

investment opportunities in the renewable

energy sector, taking advantage of

geothermal, biomass, hydro and wind

power.

TYPE OF GOVERNANCE

As to the Type of Governance, the BIMP-EAGA

can be told that is anchored on the first type of

Governance. Because the this sub-region is focusing

on the promotion of socio-economic development of

less developed and more remote territories in the

regions; the expansion of economic cooperation

among the border areas of Brunei Darussalam,

Indonesia, Malaysia and the Philippines.

The subregion likewise want to close the economic

development gap across and within the EAGA

member countries

• However, the second type of governance may be also applied. Because there are certain issues in the national states level which cannot be controlled or contained by action at the level of national states alone.

• The BIMP-EAGA stresses on the strengthen the Private-Public Sector partnership

Moreover, from the reporter’s point of view, the BIMP-EAGA is a shared type of governance.

• It involve regions participation

• Access to information

• Dialogue before decisions

• Empowering diverse interest

• Religion is not an issue in this sub-region. Considering the fact the Philippines is the only Christian or Catholic country in this organization. What is important here is the strong and weak points of each member/country and must be given attention for the welfare of each people.

IMPLICATION

• The creation of BIMP-EAGA basically intended for the building of strong partnership between the private and public sectors.

• Growth and sustainable must be sustainable and market driven and private sector led.

• The only role of the public sector or government is that facilitator and enabler.

• Thus, the culture of politics has no space as possible.

Recommendations

• Each member/country of the sub-region must do their part for strong partnership.

• Encourage the private sectors’ participation.

Thank You!!