Develop Substitution Industrie Vigorously Drive ahead Lancang-Mekong Subregion Cooperation

  Yunnan Research & Coordination office for Lancang-Mekong Subregional Cooperation (YLMCO)  Li Ping   Mo Taiyao   Dong Yi

In the early 1990s, the war of Indochina finished just now. Everything along Mekong River needs to start again. Some persons with breadth of vision suggested that “turn battlefield into bazaar”. Asian Development Bank(ADB) and most countries in the region actively respond the proposal. Under the leadership of ADB, the Greater Mekong Subregion Cooperation(GMS) appears, including China(Yunnan Province), Laos, Myanmar, Thailand, Vietnam and Cambodia six countries in total, which covers 2,330,000 km and has a population of 246,000,000. Since 1992, Greater Mekong Subregion Cooperation has worked for 12 years. During the 12 years, cooperation fields widened continuously, involving transportation, energy, telecommunication, environment, tourism, human resource development, trade and investment, drugs banning and agriculture. Today Greater Mekong Subregion Cooperation is one of the most important fields within China-ASEAN cooperation. It plays a very important role in promoting subregional countries’ social and economic development. And it also can move forward to the construction of China-ASEAN free trade zone.

I.                From the “1064” cooperation frame to “Three in length and Two in breadth” economic corridor strategic proposition, and deepen drugs banning cooperation in GMS continuously

In August1996 Lancang-Mekong Subregion Cooperation the Sixth Ministerial Conference was held in Kunming, Yunnan. Yunnan Provincial government set forth the strategic proposition of Yunnan province entering and promoting Lancang-Mekong Subregion Economic Cooperation (abbreviation “1064” cooperation frame) that is,

(i)           Drive ahead ten communications

Drive ahead aviation, water transport, highways, railways, post and telecommunications, electrified wire netting, tourism, business and trade, finance and talent communication and circulation among subregion countries.

(ii)      Excavate six types of resources

Excavate human resource of 23 million people, water energy resource of more than 2.3 million square kilometers, tourism resource, land resource, bio-resource and mineral resource.

(iii)  Restrain four disadvantages

Restrain environmental worsening, achieve sustainable development in Lancang-Mekong Basin area; Restrain illegal emigrant and immigrant, defend regional safety;

Restrain drugs production and circulation, develop substitution industries and promote national economy sound developing; Restrain AIDs and other social hideous phenomena expansion, achieve social civilization and advances.

These are the research achievements of YLMCO’s experts. This is the first time that the cooperation concept—“Develop substitution industries and Promote national economy growing well” was pushed forward. These concepts have already contained several ideas of scientific development, coordinated development, overall planning development and sustainable development. They play some leading role at that time. “Research of China participating in Lancang –Mekong Subregion Cooperation” wins the second prize of scientific and technological advance of Chinese Science & Technology Ministry. And it provides some scientific policy decision bases for China and Yunnan provincial government participating in Lancang-Mekong Subregion Cooperation.

From June 8-10,1998, the special meeting concerning drugs of the 52^nd UN conference was held in NewYork—UN’s Headquarters. Chinese state commissioner Luo Gan representing Chinese government attended the meeting and proposed 3 propositions of developing international drugs banning cooperation.

The 8^th Ministerial Conference of Asian Development Bank(ADB) subregion economic cooperation put drugs banning into Lancang-Mekong subregion economic cooperation field. This is another new cooperation mechanism of developing drugs banning. At the conference, the economic corridor strategic proposition of “Three in length and Two in breadth” was proposed. The proposition brings new concepts and mechanisms for Yunnan Province to develop “Cross-border Substitution Industries” and broadens trains of thought and ken.

Severely illegal drugs production and expansion problem within Lancang-Mekong Subregion was pointed out to solve immediately at the conference. Expanding cooperation frame and field, involving problems of drugs, was proposed. The conference asked ADB trying to increase technical and financial aids within the subregion cooperation frame. Drugs banning was permitted as a new field in Lancang-Mekong Subregion economic cooperation. At the same time, we should make some other crops replace poppies planting at the same meeting. We should try to get more attention and support from international society, meanwhile we should benefit people in remote areas of subregion.

Also building “Three in length and Two in breadth” economic corridor strategic proposition was put forward at the conference. That is to say, from south to north there are three lines. They are Kunming—Myithyina—Mandalay--Yangon; Kunming—Houayxay(golden triangle)—Bangkok; Kunming----Hanoi—Hai Phong; From east to west there are two lines. They are Mawlamyne—Phisanulok—Savannakhet—Da Nang; Yangon—Bangkok—Phnom Penh—Hochiminh City. The economic corridor will connect infrastructure construction, resources development, trade and investment, tourism, drugs banning and environmental protection into a whole. Tie together subregional countries social economy development through the economic corridor. Some important pivots in the economic corridor will gradually become economic centers. At te perspective of development, the economic corridor which is on the basis of subregion countries’ cooperation will serve China, Southeast Asia, South Asia and East Asia as a continental brigde.

II.           Establish an overall view of Substitution Industries, and Move forward Substitution Industries growing sound and lasting

Since 1999,under the arrangement and leadership of Yunnan Provincial Narcotics Control Committee, experts of YLMCO participated in Yunnan narcotics control experts investigation team organized by YPNCC 8 times successively. They did researches of developing substitution industries and strengthening drugs banning cooperation extensively, comprehensively and thoroughly in more than 20ports of China—Myanmar and China—Laos. On the basis of full mastering the first hand materials, they wrote a research report of “See through to the situation, Firmly grasp chances, Restrain drugs and Promote cooperation”, and proposed a strategic proposition of “Establish a concept, Draw into a mechanism, Implement three integration, and Work hard for two breakthroughs”, that is ,

(i)           Establish an overall view of substitution industries

Get rid of parochial thoughts of substitution industries, and we should give consideration to all of primary, secondary and tertiary industries. First of all, we should let people have enough food and clothing and try to solve the problem of employment, and then we can accelerate society, economy, culture and environment developing harmoniously. At present, transportation, trade, education, sanitation and culture cooperation should be strengthened and actively developed. Expansion of border-crossing tourism and international tourism is also very important.

(ii)      Draw into ADB Cooperation Mechanism

Put substitution industries into the Greater Mekong Subregion Economic Cooperation (GMS) which is dominated by ADB. From now on, this respect of work should be emphasized. We should strengthen researching and coordinating and connect developing substitution industries and building economic corridors together.

(iii)  Implement three Integration

a .To connect with enlargement of the open policy; Take advantage of two types of resources; Develop two markets and Expand Yunnan provincial economy

Give full play to area advantages of Yunnan province and actively try to get opportunities to develop in Southeast Asia. Make substitution industries as an important component in regional economy.

b .To connect with 7 parties’ economic cooperation of 6 provinces of southwest China, Yunnan—Shanghai cooperation, Yunnan—Guangdong cooperation

c .To connect with Lancang-Mekong Subregion Economic Cooperation

(iv)      Work hard for two breakthroughs

a. Work hard to try to get funds from UN, ADB and other international organizations

b. Work hard to try to set up substitution industries’ international cooperation development zone

III.      Under the guidance of various cooperation projects, hard push forward Lancang-Mekong Subregion Cooperation

In the 1^st senior meeting of GMS held in Phnom Penh, December 2002,Chinese government proposed three principles for promoting Lancang-Mekong Subregion Cooperation. They are,

a . Coordinate and negotiate fairly, mutually beneficial

b . Under the guidance of cooperation projects, emphasize practical results

c . Lay stress on the key points, proceed in an orderly way and step by step