EWEC: A Growing Gap or EWEC: A Growing Gap or Bridge Being Built?Bridge Being Built?

Focus:Focus:

• Infrastructure Development and its Infrastructure Development and its Impacts on the RegionImpacts on the Region

• Tourism and Cultural ImpactsTourism and Cultural Impacts• Community DevelopmentCommunity Development• Environment ConsequencesEnvironment Consequences• Reactions and Inputs for Reactions and Inputs for

Recommendations Recommendations

EWECEWEC

The Logic of ADB and EWEC:

infrastructure integration economic integration supports social & cultural integration poverty reduction in the region

Motivating FactorsMotivating Factors

• Push factors (Collapse of Soviet Union, Push factors (Collapse of Soviet Union, Protectionism fears, US embargo, FDI)Protectionism fears, US embargo, FDI)

• Pull factors (geographical proximities, old trade Pull factors (geographical proximities, old trade routes, historical links, cultural and ethnic ties, routes, historical links, cultural and ethnic ties, political tensions & economic reforms)political tensions & economic reforms)

Therefore, Promises are:Therefore, Promises are:

• Increase market access & promote the gains from Increase market access & promote the gains from tradetrade

• Enhance political cohesionEnhance political cohesion

• To further other trade and economic policy goalsTo further other trade and economic policy goals

Source: Mya Than, 1997

• Based on a strategy to guide Asian nations on regional Based on a strategy to guide Asian nations on regional cooperation and integration (RCI). cooperation and integration (RCI).

• To support poverty reduction through regional collective To support poverty reduction through regional collective actions that lead to greater physical connectivity; actions that lead to greater physical connectivity; expansion of trade and investment; development of expansion of trade and investment; development of financial systems and macroeconomic and financial financial systems and macroeconomic and financial stability; and improved environmental, health, and social stability; and improved environmental, health, and social conditions. conditions.

• The RCI strategy aims to build and deepen integration in The RCI strategy aims to build and deepen integration in four interrelated pillars:four interrelated pillars:– regional and sub-regional programs on cross-border regional and sub-regional programs on cross-border

infrastructure and related software infrastructure and related software – trade and investment trade and investment – money and finance money and finance – regional public goods such as prevention of communicable regional public goods such as prevention of communicable

diseases and environmental degradation.diseases and environmental degradation.

ADB in The Region

New Phase in RCINew Phase in RCI

• EWEC was nearly completed in 2005 as EWEC was nearly completed in 2005 as one of the economic transport corridorsone of the economic transport corridors

• Stretching nearly 1,500 kilometers (km) Stretching nearly 1,500 kilometers (km) • Across four countries between the Across four countries between the

Andaman and South China SeasAndaman and South China Seas• It will be the only land route crossing It will be the only land route crossing

mainland Southeast Asia from east to west. mainland Southeast Asia from east to west. • The effort involves harmonizing customs, The effort involves harmonizing customs,

building bridges, upgrading roads, building bridges, upgrading roads, promoting tourism and investment in once promoting tourism and investment in once remote areas.remote areas.

Source:

http://www.adb.org/Documents/Brochures/InBriefs/Regional-Cooperation-Integration.pdf

Objectives of EWEC:Objectives of EWEC:• To eradicate poverty and reduce the development To eradicate poverty and reduce the development

gap between EWEC areas and others in the Mekong gap between EWEC areas and others in the Mekong basinbasin

• To fully utilize the cooperative advantages of the To fully utilize the cooperative advantages of the EWEC areas in terms of labor and natural resources EWEC areas in terms of labor and natural resources to contribute to the common development of the to contribute to the common development of the whole regionwhole region

• To turn these areas into a gateway for development To turn these areas into a gateway for development for the Greater Mekong Sub-region; for the Greater Mekong Sub-region;

• Enhanced economic liberalization and facilitation; Enhanced economic liberalization and facilitation; cultural interaction to contribute to economic cultural interaction to contribute to economic integration among ASEAN members; also greater integration among ASEAN members; also greater interaction between ASEAN and others countries interaction between ASEAN and others countries outside the regionoutside the region. .

Translation of the Central Translation of the Central Vietnamese Government’s Vietnamese Government’s Actions :Actions :• Vision: Modernized society complete with Vision: Modernized society complete with

the development of high technologythe development of high technology• Promote deep sea port as a export Promote deep sea port as a export

gatewaygateway• Designated industrial areasDesignated industrial areas• Building of local roads to improve Building of local roads to improve

connectivity in Danangconnectivity in Danang• Support for second phase of EWECSupport for second phase of EWEC• The government believes EWEC has The government believes EWEC has

boosted development in Danang boosted development in Danang (infrastructure investment, industry, (infrastructure investment, industry, export-import and Human Dev) export-import and Human Dev)

RoadsRoads

New New settlementssettlements

Waiting for Waiting for investmentsinvestments

Sea Sea PortPort

Public Public spacespace

Private Private FacilitiesFacilities

Impacts:Impacts:• Openness and economic liberalization Openness and economic liberalization • Help to increase growth Help to increase growth • Focus on industries and servicesFocus on industries and services• Conversion of agriculture and other Conversion of agriculture and other

conventional types of development conventional types of development • More public spaces for local peopleMore public spaces for local people• Convenience for city lifestyles (IT Convenience for city lifestyles (IT

facilities)facilities)• Relocation of local people and city re-Relocation of local people and city re-

arrangement (ENDA project)arrangement (ENDA project)

What will happen to What will happen to agriculture?agriculture?

Further Further Impacts:Impacts:• Tourism connectivity and promisesTourism connectivity and promises

• A close examination of community A close examination of community developmentdevelopment

• Environmental consequencesEnvironmental consequences

Tourism

Tourism constitutes a significant component of GDP in GMS countries.

The most obvious and tangible benefits of tourism include income, foreign exchange earnings, tax revenue, and the creation of jobs.

Tourism is involved with too much public capital – social, cultural, and environmental. Benefits go into the pockets of a few people or groups while costs

are borne by the general public

Even with community-based tourism, incomes tends to be

more unevenly distributed than with agricultural exchanges,

as it requires investment which most of the poor could not

afford.

Commercial use of culture by tourism may lead to modification and distortion or even lead to practices that show disrespect

“…culture will continually change as the society and the beliefs of the people change. Tourism may be just one factor contributing to change. Tourism in itself neither harms or

helps the culture: it is how we deal with it that matters. If we are willing to do everything to our culture – modifying it, change it, making it falsely more spectacular in order to attract tourists – then we would damage our culture. We

would be prostituting ourselves and selling culture for money from tourists pockets.” (Akin 1992)

Questions still needing Answers (Danang, Hoi An & Hue)

Interdependence or Conflict?

Who gets the ‘Lion Share’ of the benefits?

Is there too much exploitation of the local cultural heritage?

Where are the limitations (natural resources & cultural heritage)?

How to rescue the sinking city of Hoi An?

Community Community DevelopmentDevelopment

EWEC and Community EWEC and Community Development: How are they Development: How are they connected?connected?• Who has been/will be impacted by the Who has been/will be impacted by the

EWEC?EWEC?local communities; labor force; local communities; labor force; infrastructure; impacts on young/old infrastructure; impacts on young/old generationgeneration

Benefits and Benefits and ChallengesChallenges

• Opportunity to shift to more Opportunity to shift to more skilled labor – capacity to train or skilled labor – capacity to train or ‘bring in’ outside labor?‘bring in’ outside labor?

• Creation of new market demand – Creation of new market demand – tourism. tourism.

• Resettlement: loss of culture; loss Resettlement: loss of culture; loss of jobsof jobs

• Exposure to Diseases: HIV/AIDSExposure to Diseases: HIV/AIDS

Is anything being done?Is anything being done?

Community organizations in Central Community organizations in Central Vietnam:Vietnam:

ENDA – working primarily with ENDA – working primarily with displaced communitiesdisplaced communities

Women's Union – skilled labor Women's Union – skilled labor training (garment industry), traffic training (garment industry), traffic laws and education laws and education

SNV – identifying communities “at SNV – identifying communities “at risk” and honing in on their risk” and honing in on their traditional skills/products, traditional skills/products, transforming them into transforming them into marketable products. marketable products.

EWEC: Developing Vietnam’s EWEC: Developing Vietnam’s Economy and Infrastructure for Economy and Infrastructure for the Community. the Community.

But at what cost?But at what cost?

Challenges: Environmental PerspectivesChallenges: Environmental Perspectives

Urbanization for Urbanization for IndustrializationIndustrialization

People from other People from other regions migrate to regions migrate to central Vietnam given central Vietnam given the opportunity to find the opportunity to find jobs in emerging jobs in emerging industriesindustries

Unskilled laborers Unskilled laborers migrate to other areasmigrate to other areas

The growth of Danang City

Master Plan of Danang CityMaster Plan of Danang City

Good geographical Good geographical locationlocation

Coastland ecosystem Coastland ecosystem and mountain forest and mountain forest ecosystems are ecosystems are connectedconnected

Drainage from Drainage from commercial agriculture commercial agriculture and other industries is a and other industries is a great concern for the great concern for the coastal ecosystemcoastal ecosystem

Natural resources are no longer sustainable when harvesting Natural resources are no longer sustainable when harvesting changes from household consumption to cash-marketingchanges from household consumption to cash-marketing

Localization and GlobalizationLocalization and Globalization

Degradation of the Degradation of the environment directly environment directly impacts the livelihoods impacts the livelihoods of local people, of local people, especially the poorespecially the poor

Their survival is based Their survival is based on knowledge which on knowledge which has been practiced and has been practiced and passed-down from passed-down from generation to generation to generationgeneration

The healthier the The healthier the environment, the better the environment, the better the livelihoods and the happier livelihoods and the happier the local peoplethe local people

Garbage rapidly Garbage rapidly follows the rapid follows the rapid development of the development of the area area

This is an undesirable This is an undesirable option to the pooroption to the poor

In the new money-In the new money-oriented society, oriented society, natural resources natural resources are usually are usually privatized by rich privatized by rich people people

Waiting to go……Waiting to go……

Rapid industrialization Rapid industrialization for the market for the market economy is a great economy is a great concern for the concern for the environment environment

Protection from Increased Pollution Protection from Increased Pollution

Villagers have no option but to adapt to the place where they have been Villagers have no option but to adapt to the place where they have been relocatedrelocated

Only a short time to destroy the environment…Only a short time to destroy the environment…but a much longer time to recoverbut a much longer time to recover

RecommendationsRecommendations

Policy-makers need to facilitate information Policy-makers need to facilitate information access to the publicaccess to the public

EWEC needs to open space for local people EWEC needs to open space for local people in the decision-making processin the decision-making process

EWEC needs to conduct an Environmental EWEC needs to conduct an Environmental Impact Assessment together with local Impact Assessment together with local people and publicize the outcome of the people and publicize the outcome of the reportreport

EWEC needs to be accountable for the EWEC needs to be accountable for the environmental and social costs of this large-environmental and social costs of this large-scale development projectscale development project

Who will pay for the price?

Inputs and Reactions:Inputs and Reactions:• Internal and External MigrationInternal and External Migration• Cross-border issuesCross-border issues e.g. diseases, environmental e.g. diseases, environmental

degradation of resources degradation of resources • Political differences among the countriesPolitical differences among the countries• Three meals (Breakfast in Bangkok, Lunch in Three meals (Breakfast in Bangkok, Lunch in

Vientiane and Dinner in Danang)Vientiane and Dinner in Danang) local benefits or local benefits or TNCs?TNCs?

• Loss of culture and change of livelihoods Loss of culture and change of livelihoods • Unequal level of development among countries in Unequal level of development among countries in

the regionthe region• Types of economic cooperation – focus on the joint Types of economic cooperation – focus on the joint

development of resources and infrastructure rather development of resources and infrastructure rather than on the metropolitan spillover into hinterland than on the metropolitan spillover into hinterland and common geo-political interest and geographical and common geo-political interest and geographical proximityproximity

EWEC: A Growing Gap or EWEC: A Growing Gap or Bridge Being Built? Bridge Being Built?

THANK YOU