Opening Borders and Working Together During the Ninth Conference on the Program of Economic Cooperation in the Greater Mekong Subregion, key topics addressed by Ministers were opening borders and working together to overcome poverty and shared environmental problems, and to strengthen investment and business linkages. Ministers expressed: •confidence that the Mekong Subregion is rebounding from the Asian economic crisis stronger and more integrated; •determination to redouble their initiatives to accelerate, strengthen and extend regional economic cooperation within the Subregion; and •commitment to broaden the benefits of regional economic co-operation, especially for the poor. Ministers noted with great appreciation progress in promoting regional economic cooperation since the Eighth Conference in October 1998. They agreed that the GMS Program has graduated to the full implementation stage, now that civil works have begun on two major road corridors linking the subregion: the East-West Corridor and the Phnom Penh-Ho Chi Minh City Highway Improvement Project. Notably, Ministers highlighted the progress in opening borders, which moves the GMS Program into a new policy/regulatory plane. Very importantly, Ministers adopted a time table for application of a Framework Agreement for the Facilitation of the Cross-Border Movement of Goods and People: •completion of the Framework Agreement by the end of 2000; •adoption and signing of the Framework Agreement by all six GMS countries by the end of 2001; •application of the Framework Agreement, including all protocols and annexes, throughout the GMS by 2005; and •early application of the Framework Agreement for selected corridors, including the two road corridors already noted. Further, Ministers from Lao PDR, People's Republic of China (PRC) , Thailand, and Myanmar committed to early signing of the Commercial Water Navigation Agreement for the Upper Mekong/Lancang River; ADB was requested to assist in developing and improving water transportation in the subregion. Ministers recognized the role of framework agreements and time-bound schedules in providing a highly useful mechanism for stepping-up the pace of regional cooperation among GMS countries. They requested ADB assistance in finalizing a quadrangle agreement among Lao PDR, People's Republic of China, Myanmar and Thailand for facilitating water transportation on the Upper Mekong/Lancang River. Ministers expressed interest in possible protocol agreements for regional power trade and a transmission master plan, and for creating a telecommunications "grid" for the GMS. Ministers noted that by extending the concept of framework agreements to address core regional cooperation objectives for each of the eight sectors included in the GMS Program, the benefits of cooperation will be advanced and more apparent. Progress in trade and investment-related matters, a new dimension of the GMS Program, was of considerable interest for Ministers. They endorsed proposals to simplify and harmonize customs procedures concerning cross-border trade, including the establishment of single-stop inspection facilities. To further promote open borders among GMS countries, Ministers encouraged pilot testing of trade facilitation arrangements, joint review of regulatory procedures, and improvements in the payments systems for GMS trade. Concerning investment, Ministers agreed that a much more prominent role in the GMS Program must be played by the private sector. They expect that the creation of economic corridors will play a major role in attracting investment, in encouraging cross-border production and distribution, and in reducing poverty. These corridors can also act as pilot projects in the development and application of cross-border agreements, such as for trade and investment. In addition to the East-West Economic Corridor currently being assessed, Ministers agreed that other economic corridors should be considered for the subregion. Ministers expressed strong appreciation for ADB's catalytic and support role in promoting regional cooperation. They requested that ADB 'stay the course' in supporting the eight sets of sector activities included in the GMS Program, even in the case of those sectors such as tourism where considerable advances have already been made. Given changing needs and conditions, Ministers requested ADB's assistance in strengthening the institutional capacity and structures necessary for expanded and more complex regional cooperation arrangements in the future. They also requested that ADB intensify its efforts in mobilizing and coordinating resources in partnership with the donor community and the private sector. Of particular interest is the need to increase private sector participation and financing; Ministers requested early convening of the GMS Business Forum and indicated that establishment of a subregional financing facility should be considered. So as to establish a framework for these efforts, and to give further momentum to the GMS Program, Ministers requested ADB assistance in preparing a Medium-Term Strategy for Regional Cooperation. Throughout their discussions, Ministers agreed with the opening remarks of the President of ADB, Mr. Tadao Chino, that the benefits of regional economic cooperation must be broadened to more directly benefit the poor. They noted that while the Asian financial crisis is easing, it has revealed the lack of social security measures to assist the unemployed and disadvantaged people. Ministers committed to working closely together to protect the environment, and to strengthen education, health and other services fundamental to ensuring greater opportunity for poor people. They also pledged that poverty alleviation will feature in the design of future regional initiatives. Regional cooperation, they concluded, is vital to the interests of all people in the subregion - especially in this new millennium. A more detailed statement is attached. The Ninth Conference The Ninth Ministerial Conference was held in a much more positive economic environment than prevailed during the Eighth Conference, when the Asian financial and economic crisis was at its height. Delegations from the six participating countries in the GMS Program (Cambodia, People's Republic of China, Lao PDR, Myanmar, Thailand, and Viet Nam) expressed relief and confidence that the worst was over and the prospects for growth and renewed investor interest look strong. The Asian crisis has prompted increased attention to economic reforms, including ways to improve competitiveness through more efficient use of capital, labor and natural resources. In this context, the door is open for further advances in regional economic cooperation. At the same time, however, the Asia crisis has worsened the problem of poverty and future economic cooperation initiatives must favor benefits for the poor. The ADB-supported GMS Program encourages economic cooperation initiatives within the Subregion, so as to help the member countries be good neighbors and better business partners. The Program includes: improving transportation and telecommunications linkages within the Subregion; energy sharing; measures to facilitate greater trade and investment; collaborative efforts to enhance health, education and labour market services in the Subregion; the promotion of tourism; and joint efforts concerning transborder environmental issues. National delegations for the six participating countries were headed by the following: H.E. Chhay Than, Minister, Ministry of Planning, Cambodia; H.E. Jin Liqun, Vice Minister, Ministry of Finance, People's Republic of China; H.E. Phao Bounnaphol, Minister, Ministry of Communication, Transport, Post and Construction, Lao People's Democratic Republic; H.E. Brig. Gen. David O. Abel, Minister, Office of the State