Dependence on natural resources.The economic expansion in the region since 1990 has been fueled largely by exports driven in turn by the extraction of natural resources
– water resources to support rapid expansion of hydropower generation
capacity; land resources for increased agricultural production, mining and mineral
-based industries; and forest resources for timber and other products. Between 10 to 40% of arable land in GMS countries is already degraded. GMS
-wide environmental indicators are showing downward trends
. Continued unsustainable resource extraction
practices could seriously undermine future economic development of the subregion.