CAPACITY DEVELOPMENT FOR INTEGRATING CLMV ECONOMY INTO AEC

1. CAPACITY DEVELOPMENT FOR INTEGRATING CLMV ECONOMY INTO AEC CHALLENGES& MI’s RESPONSES Suchat Katima Director, Mekong Institute

2. Topics Greater Mekong Subregion (GMS) The “Prosperity Gap” Related Challenges in Achieving AEC 2015 HRD and Capacity Building Approach

3. The GMS Economic Cooperation 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) Myanmar Land area: 677 thou sq km Population: 54.8 M GDP per capita: US$255 (2005) Viet Nam Land area: 332 thou sq km Population: 84.1 M GDP per capita: US$724 Thailand Land area: 513 thou sq km Population: 65.8 M GDP per capita: US$3,133 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 Cambodia Land area: 181 thou sq km Population: 14.1 M GDP per capita: US$510

5. Interdependency of GMS Countries Available: Tin, Fisheries, Products Needs: Manganese, Iron • Resources: Available: Copper, Lead, Zinc, Tin, Iron Needs: Powdered Ores, Timber, Fisheries Products Available: Crude Oil, Gas, Coal, Apatite Needs: Steel, Refined Oil Available: Gas, Teak, Gemstone Needs: Refined Oil Available: Timber. Hydropower, Tin Needs: Fuel Available: Tin, Rubber, Natural Gas Needs: Fuel Available: Timber, Fisheries, Product, Gemstone Needs: Fuel

6. II. Diversity of GMS Source: IMF and National Bureau of Statistics of China *Data in 2008

7. II. Diversity of GMS (cont) Purchasing power in 2009: Source: IMF and National Bureau of Statistics of China *Data in 2008

8. “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

9. Per Capita GDP – US$ Source:–AEC Chartbook 2010

10. Priority HRD/Capacity Building Issues • Limited capacity to implement FTAs and trade and investment policies • Limited absorptive capacity for agriculture policies • Limited SME ability to integrate into GVC • Limited Good Agricultural Practices (GAP)

11. Trade and Investment • Limited capacity to implement FTAs and Investment Policies

12. Small and Medium Enterprises • Limited ability to integrate into ASEAN and global value chains

13. Agriculture • Limited absorptive capacity and adjustment of agriculture policies and practices to a larger and more competitive economy

14. Lack of GAPs and Good Postharvest Practices

15. Narrowing Development Gap of CLMV through AEC integration

18. Targets and Indicators 288 beneficiaries • Two training cycles – 48 pax • One TOT – 24 national trainers • Four National packages • Four national trainings 96 pax • Four Action Researches • 120 young agriculturists

19. 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).

20. Modular Capacity Building Approach ToT localize Institutionalize

21. HD & Capacity Building Options Policy Dialogue Training Exchange Visits Practicum Best practices Forums Upskilling Mentoring Action Research Technology Transfer