RIF and ECF: The Road Ahead

Fourth GMS Economic Corridors Forum Mandalay, Myanmar 28 June 2012

Arjun Goswami
Director Regional Cooperation and Operations Coordination Division Southeast Asia Department, ADB
Greater Mekong Subregion Economic Cooperation Program

Looking ahead: Two parts, each important Key issues from RIF process
Role of ECF in implementing the new SF

Key issues from RIF (1)

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 (2)

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 (3)

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 nations greatest asset: HRD remains a GMS strategic priority
Strengthening regional stock and flows of skilled labour Mitigating negative consequences

Key issues from RIF (4)

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

Implications for GMS corridor development (1)

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

From Supply to Demand driven

Regional versus National

Implications for GMS corridor development (2)

Domestic connectivity and trade balanced Multisector Markets, Markets, Markets
Develop markets Connect markets Connect people to markets

Implications for GMS corridor development (3)

Develop markets
Urban development, multisector infrastructure Industrial clusters Logistics, TTF, private investment, business climate

Implications for GMS corridor development (4)

Connect markets
Domestic connectivity Production networks and value chains Logistics, TTF

People to markets
Rural connectivity

skills, factor movement

Multisector Investment Projects: 2 examples

GMS Corridor Town Development Project (CLV) GMS Tourism Infrastructure Development (CLV)

Role of ECF
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

Sector WGs -- evolving

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

Examples:
EOC MTCO RPCC WGA GMRA

ECF Dynamics
Broad ECF objective of engaging all sectors and levels of government Governors Forum (GF) Corridor-specific symposia Proposed Corridor Task Forces (CTFs)

Institutionalizing the Multisector Approach

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

Questions for Consideration Moving Forward

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 ECFs level?

Thank you!