Mekong Connection Jul-Oct Issue

Dear Readers,

 

I am pleased to inform you that the Newsletter of the Mekong Institute: July to October issue is now available for download.

It has featured the Mekong Forum in it, and has some interesting features on Steve Jobs, Floods and many more.

Do take some time to take a look at it. Please click on the following link to view it:           Mekong Connection

 

 

Thank you very much!

The MI team

Proceedings

Dear Delegate,

We are pleased to inform you that the complete PDF version of the Mekong Forum Proceedings is now available for download.

 

You may access it through the “Archive” page of this site, or through clicking this picture:

 

We hope you will find it useful!

 

-The Mekong Forum Team

 

Keeping the Dialogue Going

 

How can GMS countries best prepare themselves for the challenges of integrating into ASEAN by 2015?

Programme

UPDATED   PROGRAMME:

 

Day 1 : July 12, 2011
09:00 – 09:30		Registration
09:30 – 09:45		Welcome and Opening Plenary
09:45 – 10:15		Key Developments in the Move Towards AEC 2015 Priority Demands for HRD and Capacity Building Dr. Surin Pitsuwan ASEAN Secretary-General (to be confirmed)
10:15 – 10:45		Overview: From GMS to the ASEAN Economic Community –  Implications for Regional Cooperation and Integration Dr. Narongchai Akrasanee Chairperson of MI Steering Committee
10:30 – 11:00		Coffee Break and Networking -          Informal inter-action among participants to learn about each other’s organizations  and programs/ services -          Tables or booths will be set up for participants to display their products (photos, brochures, publications, video presentations)
11:00 – 11:30		HRD and Capacity Building in Promoting Regional Integration and Cooperation: The EU and GMS Experiences Dr. Lothar Mahnke Managing Director, Regionalmica Asia Pte Ltd.
11:30 – 12:00		Meeting Priority Challenges:  Synergizing HRD and Capacity Building Initiatives within the GMS and AEC 2015 Framework for ASEAN Integration and Narrowing Development Gaps Dr. Suchat Katima Director, Mekong Institute
12:00 -13:30		L U N C H
13:30-15:30		Parallel Facilitated Discussions : Issues and Challenges
		Group 1:		Improving Mekong Countries’ Capacity to Implement Free Trade Agreements Discussion Leader:   Dr. Watcharas Leelawath Deputy Executive Director, The International Institute for Trade and Development (ITD)
		Group 2:		Integrating SMEs of Mekong Countries into ASEAN and Global Value Chains Discussion Leader: Dr. Masaya Shiraishi Professor, Graduate School of Asia-Pacific Studies, Waseda University
		Group 3:		Improving Cross-border Facilitation and Implementing ASEAN Good Agricultural Practices for Mekong Countries Discussion Leader: Dr. Anthony Zola Senior Researcher, Mekong Environment and Resources Institute – MERI
16:00-17:30		Group Presentations and Plenary Session
17:30 – 17:45		Summary
18:30		R E C E P T I O N   &   D I N N E R Hosted by MI Steering Committee Chairman,  Dr. Narongchai Akrasanee Followed by a GMS Cultural Show
Day 2 : July 13, 2011
08:30 – 9:00	Recap of Day One
09:00 – 10:30	Parallel Facilitated Discussions: Formulating Action Plans 2012 – 2015
	Group 1:		Improving Mekong Countries’ Capacity to Implement Free Trade Agreements   Discussion Leader: Mr. Oudet Souvannavong Secretary General, GMS Business Forum
	Group 2:		Integrating SMEs of Mekong Countries into ASEAN and Global Value Chains   Co-Discussion Leaders: Dr. Rattanatay Luangladbandith,   Regional Economist, ADB;  and   Dr. Masato Abe,  Economic Affairs Officer, Investment and Enterprise Development Section, Trade and Investment Division, UNESCAP
	Group 3:		Improving Cross-border Facilitation and Implementing ASEAN Good Agricultural Practices for Mekong Countries   Discussion Leader: Mr. Rony Soerakoesoemah Head of IAI & NDG Division,ASEAN Economic Community Department, ASEC   (Working Coffee Break)
10:30 – 11:30	Presentation of Action Plans
11:30 – 12:00	Synthesis and Way Forward   Dr. Suchat Katima Director, Mekong Institute
12:00 – 13:00	L U N C H

Background

The Greater Mekong Sub-region (GMS) and the ASEAN are fast moving towards the goal of regional economic integration by 2015. This economic integration is characterized by :

• a single market and production base
• a highly competitive economic region
• a region of equitable economic development
• a region that is fully integrated into the global economy.

To achieve this goal human resource development and capacity building stand among the principal components and areas of cooperation that are identified in the ASEAN Economic Community (AEC) Blueprint for 2015 and the Initiative for ASEAN Integration (IAI). However, to date, there have been limited opportunities for interested organizations to come together to discuss and deliberate associated challenges and identify specific opportunities for cooperation.

Therefore the Mekong Institute (MI) is launching a Mekong Forum with the theme “From GMS to AEC 2015: Prospects for Human Resource Development and Capacity Building in Regional Cooperation and Integration” on 12-13 July 2011 in Khon Kaen, Thailand. The Forum will focus on the prospects and challenges in human resource development and capacity building in the context of the ASEAN Economic Community. The Forum seeks to bring together for the first time, HRD providers and capacity builders in the GMS and the ASEAN, who are concerned with regional cooperation and integration. As envisioned, the Forum would become an annual event.

MI, as the Forum host, is a GMS-based inter-governmental organization chartered by the six governments of the sub region. Its principal mandate is to serve the human resource development needs for regional integration and cooperation in the GMS. MI’s own goals and strategies for the next 5 years are framed within the context of an integrated ASEAN community by 2015. As such, MI is taking the initiative to construct a platform for meaningful dialogues on the GMS and the ASEAN.

AEC 2015 Blueprint

The ASEAN Heads of State in line with the Declaration of ASEAN Concord in Bali, Indonesia adopted the AEC 2015 Blueprint in October 2003. The Bali Declaration provides for the creation of the ASEAN Community by year 2020 to bring about a stronger, more united and cohesive ASEAN. The AEC seeks “to achieve higher levels of economic dynamism, sustained prosperity, inclusive growth and integrated development of ASEAN.”

Salient features of the AEC are (a) a single market and production base, (b) a highly Competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. These four main features are underpinned by human resource development and research.

The ASEAN Single Market and Production Base has five core elements and two components. The five core elements consist of free flow of goods, free flow of services, free flow of investment, free flow of capital and free flow of skilled labour. The two components comprise the 12 priority integration sectors, as well as food, agriculture and forestry.

Initiatives for ASEAN Integration (IAI)

Given the different levels of development among ASEAN member countries, the Initiative for ASEAN Integration (IAI) was launched in November 2000 to give direction in narrowing the development gap among member countries. IAI seeks to accelerate the economic integration particularly of Cambodia, Laos, Myanmar and Vietnam (CLMV) to ensure that all member countries share the benefits of the ASEAN Community.

The IAI also attaches importance to the establishment and strengthening of training organizations in these countries. It encourages linkages with those from other ASEAN member countries for mutual assistance and invites international support to meet the training needs of government officials in CLMV.

Integration Issues and Challenges

To assist CLMV to integrate their economies to the GMS and ASEAN, MI, in collaboration with national and regional partners, has identified three top priority issues. These are: limitation of human resource capacity in implementing Free Trade Agreements, limited ability of Small and Medium Sized Enterprises (SMEs’) to integrate into ASEAN and global value chains and limited absorptive capacity and adjustment of cross-border contract farming facilitation and adherence to best-practice agriculture policies and practices. Therefore, the challenges from an HRD and capacity building perspective are how best to:

1. Enhance HR Capacity in Implementing Free Trade Agreements

The increase in connectivity that has occurred with development of Economic Corridors in the Greater Mekong Sub-region (GMS) and the Initiatives for ASEAN Integration (IAI) have highlighted the importance of complementary measures related to policies and institutions in regional trade. Trade facilitation has emerged as a key element to spur investment and economic growth in the sub-region. Closer economic relations between Mekong economies, and their integration into the ASEAN Economic Community have underscored the importance of strengthening capacity on trade policy making and negotiations.

While the economic philosophies in the GMS have shifted towards market-oriented economies, the shortage of government officials trained in market economic principles and economic integration at sub-regional, regional and global levels is clearly an obstacle for the GMS, especially the in the four new ASEAN member states (CLMV).

Although the intra-economic and trade relations within these four countries have increased significantly in recent years, they still do not have sufficient trade related capacity to fully benefit from the opportunities provided by open markets of multilateral trading systems. The proliferation of Free Trade Agreements (FTAs) has placed increasing strains on regional FTA negotiations and creating a demand for new technical skills among stakeholders.

2. Improve SME Values Chains in the Mekong Countries and Integrate with ASEAN and Global Value Chains

The need to develop Small and Medium Sized Enterprises in Cambodia, Lao PDR, Myanmar, and Vietnam has been well recognized. SMEs are the backbone of every economy in the GMS. They typically account for more than 95 per cent of all private enterprises in the GMS countries and employ 75-90 per cent of the domestic workforce. However the relative share of SMEs’ production in total domestic output is disproportionately smaller, on average 20-40 per cent, and the direct contribution of SMEs to merchandise export earning is also small, at 15-25 per cent. Moreover, SMEs typically produce a narrow range of low value-added products. They also face challenges arising from rapid technological progress and intensified global competition. Expected supporting functions for SMEs’, which are crucial for further industrialization of the CLMV countries, have not been fully developed. In particular, woman and young entrepreneurs who run SMEs are often in a disadvantaged position to access finance and business development services needed to facilitate their export businesses.

Against the above background, one of the most immediate challenges facing SMEs’ in the CLMV is how to link more effectively with regional and global markets. By accessing emerging markets in the economic growth triangle, SMEs can improve their supply-side capacities while achieving increased turnovers as well as profits. This is a tough challenge for SMEs that face significant constraints to compete effectively at the international level. Integrating CLMV SMEs into value chains is complicated by the difficulties they face due to limited internal capacity, accounting structures, and the ability to move upward in and meet the requirements and expectations of the value chain. Pursuing SME Cluster and Export Consortia might be the best answer to trade promotion and value chain integration.

3. Improve Cross-border Contract Farming Facilitation and Implement ASEAN-Good Agricultural Practices to Enhance International Competitiveness

During the past decades CLMV agriculture has diversified from mainly rice to include various cash crops including cassava, sugar cane, kenaf, maize, soybean, peanut, fresh vegetables and fruits. This diversification has been facilitated mainly by infrastructure development and economic cooperation and integration in the GMS countries. Transnational contract farming has been promoted throughout the sub-region under multilateral agreement like AFTA, ACMECS and AISP and through bilateral agreements. But in spite of the many advantages for producers, growers and integrators, contract farming has some intrinsic disadvantages and failures in its implementation.

The majority of farmers in the CLMV have limited capital. Although it is commonly recognized that small family farms are potential and important sources of growth in agricultural production, small-scale agriculture has some social and economic disadvantages. Contract farming and large scale agricultural land concessions are seen as a form of private sector involvement that can address some of these socio-economic disadvantages, especially in the provision of inputs, credit, improved technology, information and access to markets. However, there have been many reported cases where small farm-agribusiness linkages have had negative impacts on farmers in the CLMV.

The two biggest challenges related to cross-border contract farming are:

	Cross-Border Facilitation of Fresh Produce
	Fresh produce from CLMV need to be transported to markets and processing factories in other ASEAN countries in a speedy manner to maintain their freshness and quality. Cross-border facilitation especially the speedy implementation of Cross Border Transport Agreement (CBTA), like single window and single inspection, must be implemented at all border-crossings. There is an urgent need to have a joint dialogue between central government agencies, border officials, contract-farming investors and farmers on this matter. A series of training and workshop would also be useful so that fresh produce farmers, contractors and border officials have the same understanding of the requirements.
	Postharvest Practices
	One of the AEC goals is to enhance the international competitiveness of its food and agricultural products by developing and implementing standards for a number of agricultural practices. ASEAN has adopted Good Agricultural Practices (ASEAN-GAP) for the production, harvesting and postharvest handling of fresh vegetables and fruit. Postharvest loss in fresh fruits and vegetables is estimated at 40-50% in CLMV countries. Causes of this loss are varied, with microbiological, mechanical and physiological factors being the main cause in perishable crops. Other causes are inadequate harvesting, packaging, handling skills and refrigerated storage as well as inadequate transportation. While large scale operations benefit from investing in costly handling machinery and high-tech postharvest treatments, often these options are not practical for small-scale contract farmers. Instead, simple, low cost technologies often can be more appropriate for small volume, limited resource commercial operations farmers involved in direct marketing, as well as for suppliers to exporters in ASEAN countries. The 2011 Mekong Forum will provide a platform to discuss and deliberate these key integration issues and challenges and identify collaborative opportunities to address them.