Managing Public Sector Reform Impacts of GMS Cooperation and Integration on Public Sector Reform

Overview GMS Cooperation and Integration GMS Cooperation and Integration GMS as center of future economy GMS as center of future economy

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 M GDP 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 Greater Mekong Subregion (GMS)

Map Displaying GMS Corridors Network

Road Transport Network 1992

2006

2015 R3 a 228 km R3 b 253 km R 9 EWEC rd Bridge Nakhon Panom – Takek 4 th Bridge – Chiang Kong - Hoisai

Power Transmission Line Telecommunications Backbone GMS Power GridGMS Power Grid Info. Super Highway NetworkInfo. Super Highway Network

Energy & Power Establish Energy Power Market Establish Energy Power Market - Power Grid - Power Grid - Power Trade Operating - Power Trade Operating Agreement Agreement Cross Border Cooperation on Alternative Energy i.e. Biofuels Hydropower & Others Cross Border Cooperation on Alternative Energy i.e. Biofuels Hydropower & Others Support Energy for the Poor i.e. Rural Electrification, Border Power Trade Support Energy for the Poor i.e. Rural Electrification, Border Power Trade Myanmar Hydro Potential Thanlwin : 16,000 MW Myanmar Natural Gas Potential Yadana & Yetagun: 7.98 tcf Malaysia Power Exchange Existing 300 MW Future 300 MW Oil & Gas in JDA 5 tcf (Thai Share) Lao PDR Hydro Potential Mekong Tributaries : 5,000 MW Thailand’s Energy Infrastructure: Cooperation with Neighboring Countries

Cross-Border Transport Facilitation in the GMS Export/Transit Cargo As required “No-Man’s Zone” C-L,C-V Q-L,Q-V CCA Physical Inspection C-L,C-V Q-L,Q-V CCA Physical Inspection Lao PDR Viet Nam C-L+VQ-L+VI-L+V I-V+LQ- V+L C- V+L C-Customs I-Immigration Q-Quarantine L-Lao PDR V-Viet Nam Coverage Exchange of Traffic RightsExchange of Traffic Rights Facilitation of Frontier-Crossing FormalitiesFacilitation of Frontier-Crossing Formalities Components Framework AgreementFramework Agreement Annexes and Protocols (A&P)Annexes and Protocols (A&P) MOUs for Pilot ImplementationMOUs for Pilot Implementation

Strategic Framework for Action on Trade Facilitation and Investment (SFA-TFI) Action plan to support trade facilitation, addressing bottlenecks along the supply chain on a regional level: Action plan to support trade facilitation, addressing bottlenecks along the supply chain on a regional level: Trade logistics Trade logistics Customs Customs Inspection, quarantine, and SPS Inspection, quarantine, and SPS Business mobility Business mobility

Ruili – Muse Mohan – Boten Veune Kham – Dong Kralor Hat Lek – Cham Yeam Mukdahan – Savannakhet Lao-Bao – Dansavanh Aranyaprathet – Poipet Bavet – Moc Bai Hekou – Lao Cai Myawaddy – Mae Sot Mae Sai – Tachilek Houayxay – Chiang Khong Nam Phao – Cau Treo Chongmek – Wang Tao Nongkhai – Thanaleng Geographic Coverage of CBTA FIRST PHASE (commencing in 2005/06) SECOND PHASE (commencing in 2007) THIRD PHASE (commencing in 2008/2009) POTENTIAL NEW BORDER CROSSING POINTS YOUYIGUAN (PRC) - HUU NGHI (VIE) THAKHEK (LAO) – HA TINH (VIE) LORK (CAM) – XA XIA (VIE) BY 2009 FULL IMPLEMENTATION

Promoting the GMS as a Single Tourist Destination 2005: GMS Tourism Sector Strategy ( ) – 1.Mekong River Corridor 2.Golden Triangle 3.East-West Corridor 4.Emerald Triangle 5.Southern Coastal 6.Green Cluster 7.Houphanh-Than-Hoa Oun La Tourism Circuit 8.Andaman Coast and Islands 10. Red River Valley 11. Guangxi-North Vietnam Islands Source: GMS Tourism Sector Strategy ( )

2 Will new economic centers appear within GMS over the next 20 years? If so, where will it likely be located and why? Will new economic centers appear within GMS over the next 20 years? If so, where will it likely be located and why?

ASEAN Community (APSC, AEC, ASCC) ASEAN Community (APSC, AEC, ASCC) Global Trends of Regional Integration IMT- GT GMSACMECS GMSACMECS BIMSTEC NAFTA APEC EU ASEM WTOWTO KoreaJapanPRC ACD FTAs FTAs e.g. Japan, China, Australia, New Zealand, Bahrain, Peru, India, USA, BIMSTEC etc… India

JDS – Stability & Security IMT-GT – Avian Influenza Energy, Natural Disaster and Earthquake Security S trengthening Capacity by Promoting Subregional Cooperation ACMECS -- Sister Cities Contract Farming Narrowing Economic Gap GMS -- Connectivity Competitiveness Community BIMSTEC -- New Emerging Economies Poverty Eradication Anti-Terrorism

Strategic Location of Thailand in Southeast Asia Cambodia Bangladesh Thailand Vietnam Laos Myanmar China India Malaysia Indonesia Singapore Brunei Sri Lanka Philippines Japan Afganistan Pakistan Korea Bay of Bengal South China Sea Gulf of Thailand Middle East Europe Africa USA  Southeast Asia’s Pop. = 555 mill. in > 700 mill. expected in 2030  GNI accounts for 785 bill. USD in > could attain 2,465 bill. USD in 2030  Southeast Asia’s Pop. = 555 mill. in > 700 mill. expected in 2030  GNI accounts for 785 bill. USD in > could attain 2,465 bill. USD in 2030 Market Potentials:  312 millions of pop. in GMS  67.5 millions of pop. in IMT-GT  2,400 millions in PR China + India Market Potentials:  312 millions of pop. in GMS  67.5 millions of pop. in IMT-GT  2,400 millions in PR China + India

Building Economic Partnership within the Region Thailand’s Regional Development Outlook Strategic Location Trade & Investment Openness Trade & Investment Openness Competitive Economy Enhanced Connectivity & Efficient Logistics Enhanced Connectivity & Efficient Logistics

What will be the impact of tighter infrastructure and economic integration between the regions (e.g., GDP growth in the country/ region, level of trade activities, migration) vs. standalone case? What will be the impact of tighter infrastructure and economic integration between the regions (e.g., GDP growth in the country/ region, level of trade activities, migration) vs. standalone case?

Aggregate Annual Cross-Border Trade Export and Import Between Thailand and Four-Neighbouring Countries and Transit Trade To/From China During (January-April)

Impacts Close the development gap between GMS countries Close the development gap between GMS countries Regular Migration, open border Regular Migration, open border Interdependence Interdependence Over exploitation of NR Over exploitation of NR

Words of Advice You cannot solve today problem with yesterday solution You cannot solve today problem with yesterday solution

Do not cut Don’t cut people feet to meet your shoes, Don’t cut people feet to meet your shoes, Train and show them to make the shoes that fit them Train and show them to make the shoes that fit them