1. Economic Corridor Development in Subregional Programs Workshop/Integration Exercise for Module 2

2. Suggested Guide and Template
What to Present?
Suggested Guide and Template

3. Part A: Lessons Learned from the Field Visits
Identify three (3) good practices and three lessons (3) lessons learned on drivers of economic corridors after the field visits (and presentations) on economic corridors in Iskandar, Eastern and Northern Corridors; GrEEEN cities in Melaka and Songkhla; urban development and planning in Melaka and Iskandar; transport and trade facilitation (TTF) in Sadao Customs; and in special economic zones (SEZs) based on the scoping study and as part of economic corridors in Iskandar, Eastern and Northern corridors in Malaysia

4. Part B: Economic Corridor Key Features
Choose one economic corridor; or can be a subsection of a particular corridor
Brief assessment:
Development and Economic Potential of the Economic Corridor (Opportunities)
Comparative advantages and natural key assets (Strengths)
Implementation Bottlenecks (Weaknesses)
Threats, i.e. environmental, social, etc (Threats)
Only choose top three per S,W,O and T

5. Part B: Economic Corridor Key Features
Use matrix below for your economic corridor (or sub-corridor); use key words/phrases only
Name of Economic Corridor (Sub-corridor):
Comparative Advantages/
Natural Key Assets
(Strengths)
Economic and Development Potential
(Opportunities)
Implementation Bottlenecks
(Weaknesses)
Potential Threats, e.g. social, environmental etc (Threats)
Only top three (most important); focused and specific to the economic corridor (subcorridor)

6. Part C: Economic Corridor Key Stakeholders
Use matrix below for your economic corridor (or sub-corridor) stakeholders; key words and phrases only
Stakeholders
Interest in the Economic Corridor
Role in the Economic Corridors
Resources they bring to the Economic Corridor
Only top five (most important); focused and specific to the economic corridor (subcorridor)

7. Part D: Applying Models in Economic Corridor Development
Refer to the models presented and choose what you think is the most relevant/appropriate to your selected corridor
Assess/analyze the selected corridor using the models: refer to powerpoints on: (i) GMS economic corridors; (ii) economic corridors concepts, characteristics and models; and (iii) reading (pages 10-12):
P. Srivastava. Regional Corridors Development in Regional Cooperation. ADB. Economics Working Papers Series. No May 2011

8. 4. How does an Economic Corridor Develop? Stages and Approaches
Transport corridor
Transport and trade facilitation (TTF) corridor
Logistics corridor
Urban development corridor
Economic Corridor
Physical infrastructure
Multimodal
Designed to reduce time and cost of movement of goods and people
Soft infrastructure
Harmonized corridor institutional framework to facilitate efficient flow of goods and people
Measured by progress in cross-border transport operations and border formalities
Similar to TTF corridor, but also encompass warehousing and cold storage investments
Development of city-based economic clusters/nodes and agglomeration
Enable multisector approach and private sector participation
Attract investment and generate economic activities along less-developed areas
Increased private sector participation
Well-developed production chains
Transit corridor
for landlocked countries
One approach envisages economic corridors as evolving through five main stages: (i) transport corridor; (ii) transport and trade facilitation corridor; (iii) logistics corridor; (iv) urban development corridor; (v) economic corridor.
However, Srivastava (2011) has argued that this kind of approach produces gray areas especially between stages 2 and 5: the differences between stages 2-5 may not be clear cut, and there may be significant overlaps between stages.
May have some overlap between the stages
Sources: Banomyong, 2007; Srivastava, 2011; ADB, CAREC 2012

9. A Framework for Corridor Development (P. Srivastava)
Broad
Nar
row
Zone II
National + Broad
Zone IV
Regional + Broad
Urban, SMEs, Rural Roads
CBEZ, Integrated regional border plan
Zone I
National + Narrow
Zone III
Regional + Narrow
Zone I, representing the national and narrow stage of the corridor is a useful starting point, marked by the corridor or highway’s initial construction, or by upgrading of existing (lower quality) roads.
For Zone II, there are several initiatives that may be undertaken for widening the corridor. These include activities that may broadly be termed ‘area development plans’ through a variety of methods such as urbanization, improving urban infrastructure, promoting industrial development, enhancing business climate and capacities for SMEs, and investing in tourism infrastructure.
Zone III, narrow and regional, is the transformation of the (narrow) national into regional corridor through extension beyond national boundaries. The focus of the “narrow” corridor is on moving goods and people at fast speed and least cost from “point to point”. The “points” are usually urban centers, which may now be in more than one country along the corridor. between the centers served by the regional corridor. Enhancing the regionality of narrow corridors may also be supported by promoting development and strengthening of trade and logistics -- logistics facilities and services -- e.g., dry ports/inland container depots, warehouses, border SEZs, inter-modal transport links.
Finally, Zone IV marks the last stage of corridor development, wherein the transformation of the corridor from a narrow, national entity into a broad and seamless regional entity is completed. This is an advanced stage that is neither inevitable, nor easy to achieve in the short run. Movement towards Zone IV corridors may require joint regional plans, or joint plans for cross-border area development by the concerned countries or, at the least, coordination of national plans.
Road construction, upgrading
TTF, logistics
National Regional

10. Components of Economic Corridors
Ports
Labor, Services &
Knowledge Innovation
Transport, Goods
Labor & Services
Goods
Services
Production
Urban
Transport,
Goods, Services and Knowledge Innovation
An economic corridor may be seen as having three complementary components. First is the trade and transport corridor itself, where roads and ports are an integral component, especially in the context of logistics performance, second are the industrial production clusters that produce goods and services, and finally are the urban centers that function as major markets and as a source of labor, technology, knowledge, and innovation
Transport, Goods
& Services
Labor, Services, Goods & Knowledge Innovation
Logistics & Distribution

11. Part D.1: Economic Corridor Type and Characteristics
What “type” is your chosen economic corridor (can be stages or zones refer to models)
Can also be in terms of geographical scope, sector and who leads (institutional dimension; see next slide) and who benefits
What are characteristics of the economic corridor (refer to powerpoint of Alfredo)

12. Types of Economic Corridors
Descriptions
Geographic Scope
Urban vs urban-rural
Subnational or national level
Transnational or regional (supranational)
Sectoral
Mono-sectoral (agriculture, environment, tourism)
Multi-Sectoral
Institutional Dimensions
Government (national and sub-national)-led
Private sector-led
Donor or international financial institution-led
Multi-stakeholder partnerships-led (PPP corridor)
Beneficiaries
SMES
Local community
If Transport
Corridor
Unimodal
Bimodal
Multimodal

13. Part D.2: Economic Corridor Development Approaches
Given the type and characteristic of economic corridor (or subcorridor); what is the current Economic Corridor Development (ECD) Approach (Strategy and Action Plan); if you do not have an existing ECD, what do you suggest?
Present your ECD using a figure; you may refer to the NSEC strategy and action plan as example or the Iskandar, Eastern and Northern Corridors in Malaysia as example

14. Strategic Framework for the NSEC Action Plan
Vision
Ultimate Goals
Objectives
Focal Sectors
Environment
Dynamic, well-integrated
Engine for socio-economic development
Attract investment
Gateway for ASEAN-PRC trade
Generate higher income
Increase employment opportunities
Reduce income disparities
Improve living conditions
Address social and environmental concerns
Strengthen physical infrastructure
Facilitate cross-border trade and transport
Promote investment
Address human resource constraints
Enhance institutional arrangements
Infrastructure
Trade and transport facilitation
Investment promotion
Using the strategic framework for NSEC as an example, this slide shows the links between the vision and goals, strategic objectives, and key sectors involved in implementing the SAP for NSEC.
The vision of NSEC defined across 4 key pillars.
The ultimate goals are focused on benefitting the people living along the NSEC.
To achieve the vision and goals, the more immediate objectives of NSEC development are multi-sectoral and cross-cutting in nature.
For the NSEC, there are 6 focal sectors.
Human resource development
72 projects in the NSEC Action Plan
For each project or activity:
Expected outcomes/results
Progress indicators
Implementing bodies/agencies
Timeframe
Status
Institutional development

15. Part D.2: Economic Corridor Development Approaches
Assess your economic corridor (or subcorridor) in terms of its ECD; you may refer to the Framework/Model which uses Direction and Delivery (next slide) in your assessment

16. Framework for Economic Corridors
Delivery and Implementation Mechanisms
Delivery at Scale
Effective Direction
Soft interventions in the agricultural sector
Cross-sectoral soft interventions
Hard interventions
Hard and Soft Interventions
Strategy and Targeted Sectors
Corridor Develop-ment Matrix
Leadership and Alignment
Finance and Risk Management
Source: World Economic Forum (WEF) 2013 as Cited with Approval on pages 35 to 36
Gálvez Nogales, E Making economic corridors work for the agricultural sector. Agribusiness and Food Industries Series No. 4. FAO, Rome,

17. Part D.2: Economic Corridor Development Approaches
Direction and Delivery Model Application, Guide Questions to Consider:
Leadership and alignment of the goals and vision of concerned stakeholders. Are enablers and facilitators shaping the corridor clear? Is a participatory process to develop the corridor vision and engage stakeholders in place?
Strategy identified and targeting of sectors/industries, products or firms. If the final goal is to have a corridor roadmap, is it agreed upon by all the key stakeholders?
ƒCorridor development matrix. The roadmap is materialized in a matrix that lists and prioritize the corridor projects, the funding source and their nature, e.g. investments and TA projects. Does your corridor have a roadmap in place? If yes present highlights ONLY, if not, how to have a road map?

18. Part D.2: Economic Corridor Development Approaches
Direction and Delivery Model Application, Guide Questions to Consider:
Finance and risk management. Are there efforts to mobilize resources (private or public, local or international) to be able to implement the corridor program? How are risks being managed?
ƒSoft and hard corridor interventions. What about the (i) soft interventions (TTF, Logistics etc) and (ii) hard infrastructure interventions? Are these in place? If not, what can be done to ensure interventions are effective?
Delivery and implementation mechanisms. What is the institutional arrangements established among stakeholders to ensure effective delivery? Is it in place? If not, why?

19. Part E: Drivers of Economic Corridors
Given good practices and lessons learned in the field visits (Part A) are there practices (can be strategic, operations and institutional) on the three drivers of economic corridors (TTF, SEZs and GrEEEn cities) that you can adapt to your subregion’s economic corridor? Please present in brief what are these good practices and how can you adapt?

20. Part F: Economic Corridor Recommended Strategy and Actions
Given your analysis in parts A, B and C propose recommendations for the economic corridor (sub-corridor) in terms of strategy and actions; can be in the form of policy measure, institutional mechanisms, what about the type of infrastructure (e.g. are the corridors for enhanced connectivity? value chains?)
Include proposals on how drivers for economic corridors (i.e. transport and trade facilitation, grEEEN cities and on special economic zones) can be strengthened to promote ECD where relevant and appropriate
NO prescribed format but please spend more time on this

21. Levels of Economic Corridors and Interventions
Characteristic(s)
Priority Focus Interventions 1
Cross-border connection(s) established; many missing links require substantial improvements
Physical connectivity – improve transport infrastructure 2
Cross-border connection(s) established; few sections require improvements
Physical connectivity – improve transport infrastructure and cross-border facilities 3
Transport infrastructure nearing completion along full length of corridor
Improvement of cross-border facilities, TTF and facilitation of logistics services 4
Transport infrastructure completed along full length of corridor; TTF and other measures in progress
Continuation of TTF and facilitation of logistics services, border and corridor towns development; investment promotion and enterprise development, multimodal transport development and improve access to and from adjacent areas 5
Transport infrastructure completed along full length of corridor; major sections functioning as trade and transit corridor; able to attract investments
Further streamlining rules, regulations and procedures involving transport, trade and investment, multimodal integration and interoperability, expanding urban-rural linkages along and around the corridor
In addition to retaining the strategic frameworks of the SAPs, the following recommendations come from the review:
There is a need to prepare “section-specific corridor concept plans” for selected pilot areas, and we have initiated this process.
(ii) The Action Plans need to be refined by reducing the number of projects, and only include high-priority projects.
(iii) There is a need to Monitor and update the Action Plans, preferably utilizing the monitoring system for the RIF Implementation Plan.

22. IRDA PLANNING PROMOTION FACILITATION Blue prints Sector Development
GOVERNANCE STRUCTURE OF
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY
Blue
prints
Set out the parameters for a sustainable development
Sector Development
Roadmap for the key economic sectors
Incentives
Develop incentives specific for sectors
PLANNING
Investment Destination
Brand Guardian of Iskandar Malaysia as Investment Destination
9 Promoted Sectors
Promote private and public investments in Iskandar Malaysia
PROMOTION
Iskandar Service Center
Advisory and Assistance on completion of documents and expedite processes & approvals
Investment Monitoring
Monitor & Align sector development, enabler development and investment development
FACILITATION