Fourth GMS Economic Corridors Forum

Mandalay, Myanmar 28 June 2012

RIF and ECF: The Road Ahead

Arjun Goswami

Director Regional Cooperation and

Operations Coordination Division Southeast Asia

Department, ADB•Greater Mekong Subregion Economic Cooperation Program

• Key issues from RIF process

• Role of ECF in implementing the new SF

Looking ahead: Two parts, each important

• Transport infrastructure: missing elements, alignment

• Relative roles of transport modes in GMS

• Future changes in relative transport modes

• Intra-modal and inter-modal transport

• Road transport significant, role as complement

• Structure of transport services across GMS• Logistics drivers and sector assessments • History and economic geography

Key issues from RIF (1)

• Urbanization

Will happen

Growth most in urban areas

Modern manufacturing and services growth benefit from urban clustering

Need to integrate several sectors including environment, energy, transport and food chains into urban development

Also linked to logistics development and migration

Key issues from RIF (2)

• Migration: Substantial and growing, many effects– Aging population and economic disparities imply

substantial migration, both intra-GMS and extra-GMS, and rural-urban

– Migrant workers can help match regional demand and supply, affect competitiveness

– Remittances, transfer of knowledge and skills, entrepreneurship

• People are a nation’s greatest asset: HRD remains a GMS strategic priority– Strengthening regional stock and flows of skilled labour– Mitigating negative consequences

Key issues from RIF (3)

• Agriculture:– Food security and agriculture productivity

– Rural Infrastructure

– Value Chain Support

– Sustainable Natural Resources Management

• Energy:– Grid driven; basic input

– Infrastructure and institutional development: road map

– RE, EE, electrification

• Environment: cutting across sectors, CEP II

Key issues from RIF (4)

• Way forward- investment priorities in GMS• Location? Type? Scope?

• From Supply to Demand driven

• Regional versus National

Implications for GMS corridor development (1)

• Domestic connectivity and trade balanced

• Multisector

• Markets, Markets, Markets– Develop markets

– Connect markets

– Connect people to markets

Implications for GMS corridor development (2)

• Develop markets– Urban development, multisector

infrastructure

– Industrial clusters

– Logistics, TTF, private investment, business climate

Implications for GMS corridor development (3)

• Connect markets– Domestic connectivity

– Production networks and value chains

– Logistics, TTF

• People to markets– Rural connectivity

– skills, factor movement

Implications for GMS corridor development (4)

• GMS Corridor Town Development Project (CLV)

• GMS Tourism Infrastructure Development (CLV)

Multisector Investment Projects: 2 examples

• Greater importance for ECF – multi-sector body focused on corridor development

• Specific sectoral work in SWG/Fs to continue, with links to ECF

• Need to effectively engage subnational/local stakeholders

Role of ECF

Several changes evident at WG level responding to changing Program context.

Examples:

• EOC

• MTCO• RPCC• WGA• GMRA

Sector WGs -- evolving

Broad ECF objective of engaging all sectors and levels of government

• Governors Forum (GF) • Corridor-specific symposia• Proposed Corridor Task Forces (CTFs)

ECF Dynamics

• Pragmatism, manageability, efficiency – need to prioritize corridor clusters

• Prioritization aligned with national priorities as well as regional plan

• Cluster development coordination: National Corridor Coordinating Groups (NCCG), with national sectoral and local/subnational representation

• Need for strengthening of GMS National Secretariats

• Issues from NCCGs to be elevated to ECF

Institutionalizing the Multisector Approach

1. Do we agree on the analyses presented and implications for corridor development?

2. Are prioritized clusters an appropriate model for pursuing corridor development?

3. How do we organize/manage the multisector interventions in the prioritized clusters? Is the NCCG concept the way to go?

4. How will the NCCGs coordinate/relate with the ECF?5. What kind of strengthening will the GMS National

Secretariats need?6. What should be the ECF’s level?

Questions for Consideration Moving Forward

Thank you!