Challenges It is only fair to ask what issues pose a threat to the above scenario. Six challenges stand out:
1. Conflict over negative extemalities, which can run from smuggling of animal parts and trafficking of human beings to pandemics. To date, countries have jointly addressed these issues although none, with the exception of the SARS and Avian flu pandemics, has threatened whole nations on a long-term basis. The issue of the multiple uses of the head waters of the Mekong and the impact on downstream countries is a potential source of conflict 2. Conflict over border town activities. One of the hallmarks of mainland Southeast Asian urban development is the rapid growth of small border villages into semi-lawless boom towns that provide sexual services. gambling and drugs to citizens from the other country. Mongla in the Wa Special Autonomous zone in Myanmar was, as late as 1989 a village which served as a regional headquarters of the Burma Communist Party. In the middle of the decade this town attracted over a thousand visitors a day from across the border in China for services not available and proscribed in China (Williams 2003). Similar towns exist on the Thai-Cambodian and the Laos-PRC borders. The activities may be legally curtailed over time, but their replacement as a source of investment and employment may not be easy 3. Quasi-extraterritoriality of foreign investors, leasing of land for long periods without transparency, and eviction of the original tenants without much compensation, create resistance to further cooperation. At present the issue seems to be the most serious in the Lao People's Democratic Republic, where land rights are being used as collateral to fund investment from Thailand and Vietnam, as well as China (Nyiri 2009) 4.Lack of institutions to regulate cross-border migration. Since the early nineties cross-border migration from neighbouring countries to Thailand has increased almost unabated, and increased connectivity through corridors will most likely strengthen this trend. At present foreign labour is estimated to be 5-10 per cent of the labour force, although it is highly concentrated in fishing. garments, construction. domestic service, and the rice industry. The labour force, which is estimated at about 1.5 million, is to a great extent illegal in both the country of origin (left without documents) and in the destination (not registered and/or no work permit). Numerous studies have highlighted worker abuse manifested by workers being paid less than the official minimum wage, forced overtime, poor work conditions, and harassment by local officials (Arnold and Hewison 2006). The system benefits Thailand in that its industries remain globally competitive and firm owners make large profits from the cheap labour. However, the arrangement also benefits the origin country, which receives remittances and is able to alleviate its unemployment problem. The arrangement is least beneficial for individual workers. Termination of this system by either one of the governments involved could have spatial consequences of since many the industries that are heavily migrant dependent are geographically clustered (garments and fisheries) 5. Appropriate institutions to complement the work of economic corridors. Institutions are important at the interface of transport and land us because they are the rules by which decisions are made (Stough 2004) However, the long experience of the Cross Border Transport Agreement (CBTA), which provides a framework for the smooth flow of goods and services across the six GMS countries, shows that designing, agreeing on, ratifying, and implementing agreements can be a costly and time-consuming activity requiring deep financial and technical resources. At the end of 2009, three countries were observing the CBTA but this comes only after ten years of negotiation mushu Feng 2010) The need for an institution that ensures the smooth functioning and development of each economic corridor was recognized early on and an EWEC Commission" that would develop the corridor, as well as ensure equitable distribution of benefits and costs, was proposed (ADB 2001). Some movement in this direction can be seen in the convening of corridor meetings and a "Governor's Forum although its effectiveness might be limited by its large membership and the lack of financial technical resources. Effective institutions must and also have fair representation within each country, as well as across countries. It essential that the needs and preferences of the private is sector be addressed by such institutions. 6. Limited local capacity to take advantage ofnew economicopportunities. Regional cooperation leads to de facto decentralization which itself can take many guises Nap 2010). However, whatever form it takes it is a further demand on the already limited capacity for urban management at the local level. In the Lao People's Democratic Republic, the contribution from the government has been generally reactive. No comprehensive policy strategies for components of the many regional cooperation programmes exist, leaving the country vulnerable to being exploited by stronger partners that have already formulated and implemented clear plans and strategies Mabitt 2006) Sok Chenda has noted the existence of both institutional and capacity constraints in Cambodia. but these are equally applicable to many other GMs countries. Capacity constraints include the limited authority of local government, lack of strategy, lack of ability to implement key facilities, as well as inward-looking orientation, short time horizons, and overlapping demands (Sok Chenda 2009). Unless national capacities are improved, countries will not be able to implement complementary policies and investments, and thereby take full advantage of the new opportunities provided by regional cooperation. Decentralization may also lead to new identities, or the resurrection of older ones, and to conflicts between the political centre and other regions of the country Burnell 2006)
Challenges It is only fair to ask what issues pose a threat to the above scenario. Six challenges stand out:
1. Conflict over negative extemalities, which can run from smuggling of animal parts and trafficking of human beings to pandemics. To date, countries have jointly addressed these issues although none, with the exception of the SARS and Avian flu pandemics, has threatened whole nations on a long-term basis. The issue of the multiple uses of the head waters of the Mekong and the impact on downstream countries is a potential source of conflict 2. Conflict over border town activities. One of the hallmarks of mainland Southeast Asian urban development is the rapid growth of small border villages into semi-lawless boom towns that provide sexual services. gambling and drugs to citizens from the other country. Mongla in the Wa Special Autonomous zone in Myanmar was, as late as 1989 a village which served as a regional headquarters of the Burma Communist Party. In the middle of the decade this town attracted over a thousand visitors a day from across the border in China for services not available and proscribed in China (Williams 2003). Similar towns exist on the Thai-Cambodian and the Laos-PRC borders. The activities may be legally curtailed over time, but their replacement as a source of investment and employment may not be easy 3. Quasi-extraterritoriality of foreign investors, leasing of land for long periods without transparency, and eviction of the original tenants without much compensation, create resistance to further cooperation. At present the issue seems to be the most serious in the Lao People's Democratic Republic, where land rights are being used as collateral to fund investment from Thailand and Vietnam, as well as China (Nyiri 2009) 4.Lack of institutions to regulate cross-border migration. Since the early nineties cross-border migration from neighbouring countries to Thailand has increased almost unabated, and increased connectivity through corridors will most likely strengthen this trend. At present foreign labour is estimated to be 5-10 per cent of the labour force, although it is highly concentrated in fishing. garments, construction. domestic service, and the rice industry. The labour force, which is estimated at about 1.5 million, is to a great extent illegal in both the country of origin (left without documents) and in the destination (not registered and/or no work permit). Numerous studies have highlighted worker abuse manifested by workers being paid less than the official minimum wage, forced overtime, poor work conditions, and harassment by local officials (Arnold and Hewison 2006). The system benefits Thailand in that its industries remain globally competitive and firm owners make large profits from the cheap labour. However, the arrangement also benefits the origin country, which receives remittances and is able to alleviate its unemployment problem. The arrangement is least beneficial for individual workers. Termination of this system by either one of the governments involved could have spatial consequences of since many the industries that are heavily migrant dependent are geographically clustered (garments and fisheries) 5. Appropriate institutions to complement the work of economic corridors. Institutions are important at the interface of transport and land us because they are the rules by which decisions are made (Stough 2004) However, the long experience of the Cross Border Transport Agreement (CBTA), which provides a framework for the smooth flow of goods and services across the six GMS countries, shows that designing, agreeing on, ratifying, and implementing agreements can be a costly and time-consuming activity requiring deep financial and technical resources. At the end of 2009, three countries were observing the CBTA but this comes only after ten years of negotiation mushu Feng 2010) The need for an institution that ensures the smooth functioning and development of each economic corridor was recognized early on and an EWEC Commission" that would develop the corridor, as well as ensure equitable distribution of benefits and costs, was proposed (ADB 2001). Some movement in this direction can be seen in the convening of corridor meetings and a "Governor's Forum although its effectiveness might be limited by its large membership and the lack of financial technical resources. Effective institutions must and also have fair representation within each country, as well as across countries. It essential that the needs and preferences of the private is sector be addressed by such institutions. 6. Limited local capacity to take advantage ofnew economicopportunities. Regional cooperation leads to de facto decentralization which itself can take many guises Nap 2010). However, whatever form it takes it is a further demand on the already limited capacity for urban management at the local level. In the Lao People's Democratic Republic, the contribution from the government has been generally reactive. No comprehensive policy strategies for components of the many regional cooperation programmes exist, leaving the country vulnerable to being exploited by stronger partners that have already formulated and implemented clear plans and strategies Mabitt 2006) Sok Chenda has noted the existence of both institutional and capacity constraints in Cambodia. but these are equally applicable to many other GMs countries. Capacity constraints include the limited authority of local government, lack of strategy, lack of ability to implement key facilities, as well as inward-looking orientation, short time horizons, and overlapping demands (Sok Chenda 2009). Unless national capacities are improved, countries will not be able to implement complementary policies and investments, and thereby take full advantage of the new opportunities provided by regional cooperation. Decentralization may also lead to new identities, or the resurrection of older ones, and to conflicts between the political centre and other regions of the country Burnell 2006)
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Challenges It is only fair to ask what issues pose a threat to the above scenario. Six challenges stand out:
1. Conflict over negative extemalities, which can run from smuggling of animal parts and trafficking of human beings to pandemics. To date, countries have jointly addressed these issues although none, with the exception of the SARS and Avian flu pandemics, has threatened whole nations on a long-term basis. The issue of the multiple uses of the head waters of the Mekong and the impact on downstream countries is a potential source of conflict 2. Conflict over border town activities. One of the hallmarks of mainland Southeast Asian urban development is the rapid growth of small border villages into semi-lawless boom towns that provide sexual services. gambling and drugs to citizens from the other country. Mongla in the Wa Special Autonomous zone in Myanmar was, as late as 1989 a village which served as a regional headquarters of the Burma Communist Party. In the middle of the decade this town attracted over a thousand visitors a day from across the border in China for services not available and proscribed in China (Williams 2003). Similar towns exist on the Thai-Cambodian and the Laos-PRC borders. The activities may be legally curtailed over time, but their replacement as a source of investment and employment may not be easy 3. Quasi-extraterritoriality of foreign investors, leasing of land for long periods without transparency, and eviction of the original tenants without much compensation, create resistance to further cooperation. At present the issue seems to be the most serious in the Lao People's Democratic Republic, where land rights are being used as collateral to fund investment from Thailand and Vietnam, as well as China (Nyiri 2009) 4.Lack of institutions to regulate cross-border migration. Since the early nineties cross-border migration from neighbouring countries to Thailand has increased almost unabated, and increased connectivity through corridors will most likely strengthen this trend. At present foreign labour is estimated to be 5-10 per cent of the labour force, although it is highly concentrated in fishing. garments, construction. domestic service, and the rice industry. The labour force, which is estimated at about 1.5 million, is to a great extent illegal in both the country of origin (left without documents) and in the destination (not registered and/or no work permit). Numerous studies have highlighted worker abuse manifested by workers being paid less than the official minimum wage, forced overtime, poor work conditions, and harassment by local officials (Arnold and Hewison 2006). The system benefits Thailand in that its industries remain globally competitive and firm owners make large profits from the cheap labour. However, the arrangement also benefits the origin country, which receives remittances and is able to alleviate its unemployment problem. The arrangement is least beneficial for individual workers. Termination of this system by either one of the governments involved could have spatial consequences of since many the industries that are heavily migrant dependent are geographically clustered (garments and fisheries) 5. Appropriate institutions to complement the work of economic corridors. Institutions are important at the interface of transport and land us because they are the rules by which decisions are made (Stough 2004) However, the long experience of the Cross Border Transport Agreement (CBTA), which provides a framework for the smooth flow of goods and services across the six GMS countries, shows that designing, agreeing on, ratifying, and implementing agreements can be a costly and time-consuming activity requiring deep financial and technical resources. At the end of 2009, three countries were observing the CBTA but this comes only after ten years of negotiation mushu Feng 2010) The need for an institution that ensures the smooth functioning and development of each economic corridor was recognized early on and an EWEC Commission" that would develop the corridor, as well as ensure equitable distribution of benefits and costs, was proposed (ADB 2001). Some movement in this direction can be seen in the convening of corridor meetings and a "Governor's Forum although its effectiveness might be limited by its large membership and the lack of financial technical resources. Effective institutions must and also have fair representation within each country, as well as across countries. It essential that the needs and preferences of the private is sector be addressed by such institutions. 6. Limited local capacity to take advantage ofnew economicopportunities. Regional cooperation leads to de facto decentralization which itself can take many guises Nap 2010). However, whatever form it takes it is a further demand on the already limited capacity for urban management at the local level. In the Lao People's Democratic Republic, the contribution from the government has been generally reactive. No comprehensive policy strategies for components of the many regional cooperation programmes exist, leaving the country vulnerable to being exploited by stronger partners that have already formulated and implemented clear plans and strategies Mabitt 2006) Sok Chenda has noted the existence of both institutional and capacity constraints in Cambodia. but these are equally applicable to many other GMs countries. Capacity constraints include the limited authority of local government, lack of strategy, lack of ability to implement key facilities, as well as inward-looking orientation, short time horizons, and overlapping demands (Sok Chenda 2009). Unless national capacities are improved, countries will not be able to implement complementary policies and investments, and thereby take full advantage of the new opportunities provided by regional cooperation. Decentralization may also lead to new identities, or the resurrection of older ones, and to conflicts between the political centre and other regions of the country Burnell 2006)
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