Contact | Recommend this newsletter

Information on economic cooperation and integration in Asia From the GIZ Regional Economic Cooperation and Integration in Asia Programme

Issue No. 3 November 2013

Editorial Dear readers, the third issue of Connect Asia is out and brings you an overview of the activities of the GIZ RCI Programme and delivers an update on regional economic cooperation and integration processes in Asia. Our current edition highlights activities in the field of Special Economic Zones, particularly with regard to Cross-Border Economic Zones. Still regarded as policy instrument to foster economic development and international cooperation, it has attracted much interest especially in view of the successful implementations in East Asia. Needless to say, this holds true in times of increasing intraregional trade and investments in Asia. As you can see from the News and Dates section of this newsletter, the programmes work will continue after the publication of this issue with two highprofile events taking part in November on the topic of trade facilitation and port cooperation in Bangkok, Thailand. If you require further information, as always feel free to reach out and contact us. Since this will be the last issue for this year, I would like to take the opportunity to thank our subscribers and readers for their ongoing support. With an ever growing base of subscribers I feel that there is a place for this newsletter and we look forward to greet you again in 2014 and continue to provide you with information on programme activities as well as a review on current trends in East Asian regionalism. We hope you enjoy reading this newsletter and we appreciate any feedback and comments. With the best wishes Magnus C. M. Brod Editor

Dates and Events 14-15 November Second Meeting of the Greater Mekong Subregion Urban Development Task Force Kunming, PR China Asian Development Bank (ADB) www.adb.org/... 22 November Workshop on City Logistics Beijing, PR China Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH Contact jingzhu.li@giz.de 26 November Workshop: Port Cooperation in the Pan-Beibu Gulf Region Bangkok, Thailand Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH Contact magnus.brod@giz.de 27 November Annual Conference: Realizing an Innovative, Inclusive, and Integrated Asia and the Pacific Tokyo, Japan Asian Development Bank Institute (ADBI) www.adbi.org/...] 27-28 November Expert Forum: Cross-border Cooperation and Trade Facilitation in Asia Bangkok, Thailand Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH Contact magnus.brod@giz.de 27-28 November Workshop: Driving Change for Sustainable Ports Project Design and Strategic Approach Bangkok, Thailand Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH www.sustainableport.org/...] 1-4 December CSR Retreat Asia

Contents Study Tour: Special Economic Zones Workshop: Management of Cross-border Cooperation - EU Experiences Roundtable: Special Economic Zones and Cross-border Economic Clusters Conference: Triangular Cooperation in Southeast Asia North-East Asia Forum on Trade Facilitation Recent Trends in Asian Regionalism

Programme News

Programme News
Special Economic Zones

Study Tour with Secretariat to the Lao National Committee for Special Economic Zones

In light of ongoing negotiations between the Lao PDRs government and the Chinese provincial authorities of Yunnan to set-up a cross-border economic zone on the border of Boten, Luangnamtha province (Lao PDR) and Mohan, Yunnan province (PR China), in the third quarter of 2013, GIZ RCI in cooperation with the Secretariat to the Lao National Committee for Special Economic Zones (S-NCSEZ) conducted a study tour on the topic of Cross-border Economic Zones/Clusters from 21 to 25 July 2013. GIZ RCI Programme staff and Lao PDRs representatives of line ministries, which are involved in the CBEZ negotiations, visited Viet Nam and South China to gain in-depth practical knowledge on relevant implications with regards to conceptualization, implementation and management of CBEZs. Whilst the Dong Dang Pingxiang CBEZ of Vietnam in cooperation with PR China served as a regional PBG best practice model, the meeting with representatives of the Department of Commerce (DofCom) in Guangxi provided the delegates with the opportunity to gain profound insights into the Chinese approach towards CBEZ. Among the other institutions visited were the Central Institute for Economic Management (CIEM) in Hanoi, the Department for Border and Mountainous Trade of the Vietnamese Ministry of Industry and Trade (MoIT), the Dong Dang Lang Son Border Economic Zone Management Board, the Management of Pingxiang Dong Dang CBEZ as well as the China-Malaysia Qinzhou Industrial Park. A short documentation of the workshop which contains the event's main findings and inputs is available for download: www.scribd.com/... Contact : Lisa.Brueckner@giz.de top Regional Integration

CSR Retreat Asia Bangkok, Thailand Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH www.emm-network.org/... 6 December Launch of Study: Transparency in Corporate Reporting: Assessing Emerging Market Multinationals Kuala Lumpur, Malaysia Transparency International www.transparency.org/... December 2013 (tbc) Conference: Provincial Public Private Dialogue (PPPD) Lao National Chamber of Commerce and Industry Contact Kirsten.Focken@giz.de

More on GIZ RCI Programme Regional economic cooperation and integration play an increasingly important role in Asias economic landscape. They help countries to overcome the limitations of domestic markets and foster inclusive development, both by boosting economic growth and by providing the resources for propoor policies. The GIZ RCI Programme supports regional stakeholders with the aim to strengthen selected core processes of regional economic cooperation and integration and to contribute to sustainable and inclusive economic development in the region. (GIZ RCI Programme Leaflet)

Workshop: Project Management of Cross-border CooperationEuropean Experiences

On 7 and 8 August 2013, the programme GIZ RCI Programme, in cooperation with the Secretariat of Pan-Beibu Gulf Economic Cooperation (PR China) held a workshop on "Project Management of Cross-border Cooperation: European Experiences" in Nanning, PR China.

Stay up to date with GIZ RCI If you would like to continue receiving regular updates on our programme activities and further insights on regionalisation processes in Asia, please refer to the GIZ Newsletter mainpage and subscribe here.

Cross-border cooperation is widely accepted to be of high importance in Southeast Asia as it can increase economic activity in rural border areas and thereby reduce disparities between states. The event brought together decision makers from relevant ministries from Cambodia, Lao PDR, Viet Nam, Malaysia, Thailand, Myanmar as well as the PR China to discuss European experiences with local cross-border cooperation. For this purpose, GIZ RCI Programme invited Mr. Jens Gabbe, former secretary general of the Association of European Borders Regions (AEBR) and Mr. Steffen Rubach, managing director of the EUREGIO Salzburg-Berchtesgadener Land-Traunstein, to share their valuable knowledge on successful management strategies of cross-border projects. During the second day, opportunities and challenges of cross-border cooperation in the region were debated by the participants. A comprehensive documentation of the workshop which contains the event's main findings and inputs is available for download: www.scribd.com/... Contact Lisa.Brueckner@giz.de top Special Economic Zones

Follow GIZ

Follow @rci_asia

Roundtable on Special Economic Zones and Cross-border Economic Zones

As follow-up to the successful study tour in July 2013 as well as against the background of manifold Special Economic Zone (SEZ) approaches,

which have evolved regionally and world wide, GIZ RCI organized an expert round table to provide technical representatives of the SNCSEZ with in-depth knowledge on the topic of Cross-border Economic Zones (CBEZ) and SEZ in Beihai, PR China from 5 to 7 September 2013. While CBEZs and SEZs bear great potential for economic development, an adequate design, clear policy frameworks as well as sufficient regulatory and administrative knowledge are crucial for the successful implementation of national SEZ strategies. Against this background, this expert knowledge exchange aimed at sharing general and country-specific experiences about SEZ implementation strategies and identifying possible solutions for Lao PDRs development bottlenecks. Its main purpose was to convey to the S-NCSEZ a clearer understanding of the specific role of SEZ in economic development strategies and to strengthen their capacities to effectively manage cross-border economic zones. In three sessions the participants discussed achievements, but also challenges of their national SEZ policy. Topics of particular interest were rules and regulations, SEZ monitoring mechanisms, the division of responsibilities between national and provincial level, and between government and management board as well as labour skills development issues. A comprehensive documentation of the workshop which contains the event's main findings and inputs is available for download: www.scribd.com/... Contact : Lisa.Brueckner@giz.de top Triangular Cooperation

Triangular Cooperation in Southeast Asia Conference

On September 19 and 20 2013 Thailand International Development Cooperation Agency (TICA) under the Ministry of Foreign Affairs of the Kingdom of Thailand and the Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) have jointly held the Triangular Cooperation in Southeast Asia conference. The conference brought together development professionals, officials and researchers to present and discuss past and present triangular cooperation efforts. Over 100 delegates from Thailand, Malaysia, Indonesia, Cambodia, Lao PDR, Myanmar, Viet Nam, Germany, and a number of speakers and representatives of the diplomatic corps and aid agencies, the UN and its specialized agencies, academics and NGOs took part in the Conference to exchange lessons-learned, best practices and other experiences. The conference helped to identify ways and means of future development cooperation in Southeast Asia in support of the establishment of ASEAN Community through a more holistic integration of member countries. It also showed how triangular cooperation can be utilized as a tool to foster regional integration in ASEAN and can support emerging economies to reach their objectives in the Initiative for ASEAN Integration (IAI) while benefiting the recipient countries at the same time. Contact : Julia.Langendorf@giz.de top Trade Facilitation

Conference: North-East Asia Forum on Trade Facilitation

The North-East Asia Forum on Trade Facilitation was held on August 6, 2013 in Ulaanbaatar, Mongolia. The Forums agenda was focused on Trade Financing and Facilitation for Regional Integration, i.e. on Financing for Trade and Transport Development in North-East Asia and Trade Finance Issues and Challenges. The Third Meeting of the Greater Tumen Initiative (GTI) Trade Facilitation

Committee (TFC) was held back-to-back with the Northeast Asia Forum on Trade Facilitation, in cooperation with the UNESCAP sub-regional office for East and Northeast Asia, the Mongolian Customs and the Mongolian National Chamber of Commerce and Industry (MNCCI) as well as others. The Forum was organized by Tumen Secretariat with the aim to strengthen inter-governmental cooperation in the trade and investment sector among the four GTI member states: PR China, Mongolia, the Republic of Korea, and the Russian Federation. The GIZ RCI Programme Regional Coordinator in Mongolia provided logistical support and presented the viewpoints of GIZ as GTI development partner during the meetings group discussion. As a result of the 3rd Meeting, the participants expressed their contentment with achieved results and progresses since the last TFC meeting and have stated an increase of their involvement in the field of trade facilitation in Northeast Asia in order to further promote the cooperation among the GTI member countries. The Russian Federation will host the next TFFC Board meeting which will be held in March 2014. For more information please refer to the GTI website under www.tumenprogram.org/... Contact : Lkhagvasuren.Khulan@giz.de top

Recent Trends in Asian Regionalism

UN Economic and Social Commission for Asia and the Pacific (UNESCAP)

Handbook on Negotiating Preferential Trade Agreements

UNESCAP joined forces with the Asia-Pacific Research and Training Network on Trade (ARTNeT) to compose this handbook on negotiating preferential trade agreements. It is aimed at policy makers, offers ideas and presents the experiences of other countries. It thereby helps to initiate and implement agreements. As most developing nations lack resources and capacity in these crucial areas, the handbook comes as a useful tool. Download the paper from: www.unescap.org/... (PDF 1,6 MB) top Multilateral Institutions

Joint statement on Trade Facilitation Assistance

In a joint statement, the heads of African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IADB), the International Monetary Fund (IMF) and the World Bank Group urge WTO-members to reach an agreement at the Ninth WTO Ministerial Conference in Bali on 3-6 December. The institutions highlight the need for such an agreement for developing and least-developed states and point to benefits of trade facilitation for development as demonstrated by a growing body of research. Read the full statement here: www.adb.org/... Centre for Economic Policy Research (CEPR)

New Study on Aid for Trade

In a recent study, Peter Nunnenkamp and his colleagues find that aid-for-trade mostly benefits middle-income countries, whereas low-income countries tend to see fewer positive impacts. A major finding of the study is that the widely held opinion of donour countries being the main beneficiaries of their aid policies can be refuted. Moreover, the study sheds light on systematic failures of aid for trade as it tends to foster export growth of middle income countries but does not deliver this effect for the least developed countries of Sub-Saharan Africa- a group of countries where the need for improvement seems more pressing than in its richer counterparts in Southeast Asia. For more details about the study, please visit: www.voxeu.org/... The Economist

China proposes Asian Infrastructure Bank

Chinese President Xi Jinping has announced plans of establishing a Chinese Infrastructure Bank, prior to the APEC forum in Bali in the beginning of October. Such an institution could use vast Chinese capital to improve infrastructure in the region and would closely cooperate with other donors, like the ADB. The author suggests that benefits for the PR China would be twofold: the infrastructure in its neighboring countries would be improved and China could enhance its standing without increasing reservations against the nation in the region. Access the full article here: www.economist.com/...

Asian Development Bank (ADB)

Report on Regional and Subregional Program Links

This report by the ADB demonstrates the links between ASEAN and the three subregional programs Greater Mekong Subregion (GMS), Brunei DarussalamIndonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) and Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT). It concludes that ASEAN is responsible for policy coordination, harmonization, and standards setting and thus the speed of integration. The subregional initiatives provide the geographic context, thereby allowing for fine tuning of policies. Download the paper from: www.adb.org/... (PDF 1,5 MB)

Centre for Economic Policy Research (CEPR)

Hector R. Torres: Watchdog for WTO

Former Executive Director of the International Monetary Fund (IMF) Hector R. Torres advocates the establishment of an independent watchdog for the World Trade Organsation (WTO) which, in his opinion, would allow for an improvement in determining the case for WTO rule exceptions. Despite progress, the author argues, many former developing countries still enjoy the right to opt out from WTO obligations. An independent control institution would prevent not only such cases but could contribute to closer scrutiny of WTOs performance. Access the full article here: www.voxeu.org/... Asian Development Bank Institute (ADBI)

Future of the World Trade System: Asian Perspectives

On 11th and 12th March 2013, the Asian Development Bank Institute teamed up with the Centre for Trade and Economic Integration in Geneva to host a conference on the Future of the World Trade System: Asian Perspectives. Richard Baldwin, Masahiro Kawai and Ganeshan Wignaraja put together a series of aceademic pieces which have been presented in the context of the conference, on the emergence of regional, bilateral and plurilateral agreements which have taken the lead over WTO rules in world trade. Download the report at: www.voxeu.org/... (PDF 2,3 MB) Hanns Seidel Foundation (HSS)

Bibliography on East Asia Regionalism and Integration

The Hans Seidel Foundation (HSS) Korea updated the bibliography on East Asia Regionalism and Integration for the years of 2007-present. The list, which is maintained by Dr. Bernhard Seliger contains key publications and academic achievements for this relevant field of Asian development. Download the bibliography from: www.asianintegration.org... (1.9 MB) The Economist

Multilateral Trade Pacts giving way to Regional ones

Regional Trade Agreements (RTA) have long been seen as paving the way for multilateral WTO deals. Recently, however, they have become to be considered as a potential alternative for the latter as the "Doha Round" seems to be faltering. Consequently, the number of RTAs has increased dramatically, leaving critics to fear more fragmentation of the world trade system. Free trade agreements on the regional level might be better than no agreements at all, however small states might lack the leverage to negotiate preferential trade agreements and could lose from this new trend. Read the full article here: www.economist.com/...

Registration information
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany Friedrich-Ebert-Allee 40 53113 Bonn, Germany Phone: +49 228 44 60-0 Fax: +49 228 44 60-17 66 Dag-Hammarskjld-Weg 1-5 65760 Eschborn, Germany Phone: +49 61 96 79-0 Fax: +49 61 96 79-11 15

Email: info@giz.de Internet: www.giz.de Registered at Local court (Amtsgericht) Bonn, Germany: HRB 18384 Local court (Amtsgericht) Frankfurt am Main, Germany: HRB 12394 VAT no. DE 113891176 Tax no. 040 250 56973 Chairman of the Supervisory Board Hans-Jrgen Beerfeltz, former State Secretary Management Board Tanja Gnner (Chair) Dr Christoph Beier (Vice-Chair) Dr Hans-Joachim Preu Cornelia Richter

If you no longer wish to receive this newsletter, please click here.

In charge of this newsletter:

Dr. Jrgen Steiger, juergen.steiger@giz.de

Editor(s):
Magnus C. M. Brod, magnus.brod@giz.de

Contributors:
Lisa Brckner, lisa.brueckner@giz.de Magnus C. M. Brod, magnus.brod@giz.de Khulan Lkhagvasuren, lkhagvasuren.khulan@giz.de Julia Langendorf, julia.langendorf@giz.de Torben Niemeier, rci-asia2@giz.de

Unsubscribe | Disclaimer | Contact | Recommend this newsletter | www.giz.de