CAPACITY DEVELOPMENT FOR INTEGRATING CLMV ECONOMY INTO AECCHALLENGES & MI’s RESPONSES

Suchat Katima Director, Mekong Institute

Topics

•Greater Mekong Subregion (GMS)•The “Prosperity Gap”•Related Challenges in Achieving AEC

2015•HRD and Capacity Building Approach

Thailand

Land area: 513 thou sq km

Population: 65.8 M

GDP per capita: US$3,133

Cambodia

Land area: 181 thou sq km

Population: 14.1 M

GDP per capita: US$510

Myanmar

Land area: 677 thou sq km

Population: 54.8 M

GDP per capita: US$255 (2005)

People’s Republic of China

Land area: 633 thou sq km

Population: 97.3 M

GDP per capita: US$1,135

(figures for Yunnan and Guangxi only)

Viet Nam

Land area: 332 thou sq km

Population: 84.1 M

GDP per capita: US$724

Lao PDR

Land area: 237 thou sq km

Population: 5.7 M

GDP per capita: US$601

The GMS in 2006

Land area: 2.6 M sq km

Population: 323 M

GDP per capita: US$1,453*

* excludes Myanmar

• Resources:

Available: Gas, Teak, Gemstone Needs: Refined Oil

Available: Tin, Rubber, Natural GasNeeds: Fuel

Available: Timber, Fisheries, Product, GemstoneNeeds: Fuel

Available: Copper, Lead, Zinc, Tin, IronNeeds: Powdered Ores, Timber, Fisheries Products

Available: Timber. Hydropower, TinNeeds: Fuel

Available: Crude Oil, Gas, Coal, ApatiteNeeds: Steel, Refined Oil

Available: Tin, Fisheries, ProductsNeeds: Manganese, Iron

Interdependency of GMS Countries

II. Diversity of GMS

Source: IMF and National Bureau of Statistics of China *Data in 2008

II. Diversity of GMS (cont)

GDP per capita (Current USD)

GDP per capita at PPP

(Current USD)

Thailand 3,940 8,059

Guangxi* 2,155 na

Yunnan* 1,812 na

Vietnam 1,060 2,942

Lao PDR 878 2,266

Cambodia 775 2,015

Myanmar 459 1,197

Source: IMF and National Bureau of Statistics of China *Data in 2008

Purchasing power in 2009:

“One Vision, One Identity, One Community”

ASEAN GMS Countries - 2010

Land area: 1.94 M sq Km

Population: 232 M

ASEAN Countries - 2010

Land area: 4.48 M sq Km

Population: 614 M

Source:–AEC Chartbook 2010

Per Capita GDP – US$

Priority HRD/Capacity Building Issues

1. Limited capacity to implement FTAs and trade and investment policies

2. Limited absorptive capacity for agriculture policies

3. Limited SME ability to integrate into GVC

4. Limited Good Agricultural Practices (GAP)

Trade and Investment

Limited capacity to implement FTAs and

Investment Policies

Small and Medium Enterprises

Limited ability to integrate into ASEAN

and global value chains

AgricultureLimited absorptive capacity and adjustment

of agriculture policies and practices to a

larger and more competitive economy

Lack of GAPs and Good Postharvest Practices

Narrowing Development Gap of CLMV through AEC integration

Narrow DevGap of CLMV

Increased CB AgriTrade and Investment

Increased no. of CLMVSMEs integrated into

RVC and GVC

GAP & PHP training for practitioners and trainers provided

Improved GAP and PHP practices in CLMV

Increased cross-border SME clusters and improved export network

Action research on SME Clusters and Export Network carried out

Increased no. of CLMV SMEs integrated into Regional and Global Value Chains

Increased utilization of FTAs by SME exporters

Training on SME clusters and Export Network provided

Training on FTAs and trade negotiation are provided

Multi-stakeholders forum and on-line information services on FTAs are provided

Multi-stakeholders engagement forums carried out

L

M

S

Workshop and Study Visits on CBCF policies and practices provided

Improved CBCF management policies and practices

Action researches on GAPs and CB PHP conducted

Studies on CBCF on GMS ECs conducted

Training on business database and network are provided Producers & Buyer Forums carried out

Public-Private Engagement on GAP and PHP carried out

Increased cross-border agriculture trade and investment

Enhanced understanding of GAP & PH Practices

Improved understanding of CBCF management policies and practices

Increased understanding of value of SME clusters and export networking

Increased understanding of FTAs by SME exporters

Improved GAP& PH

Enhanced Understanding of

GAP & PH

Training

Action R

PPP

Targets and Indicators

Two training cycles – 48 pax One TOT – 24 national trainers Four National packages Four national trainings 96 pax Four Action Researches 120 young agriculturists

288beneficiaries

Capacity building can be successful only if:

It is placed in a HRD context Trainees have the possibilities to use and

apply the knowledge learned;Regional and Cultural Differences, and

Sensitivities are taken into account;Regional and national training and

research institutes are involved and strengthened; and

There is strong regional cooperation (networking, communication, alumni networks).

Modular Capacity Building Approach

Do to learn

Share to learn

Learn to do

ToT

localize

Institutionalize

HD & Capacity Building Options

Exchange Visits

Technology Transfer

Training

Upskilling Mentoring

Policy Dialogue

Action Research

Best practicesForums

Practicum