Statement by Vice Minister ZHANG Shaochun at the 17th GMS Ministerial Meeting

(Phnom Penh, Cambodia, 4 August 2011) H.E. Senior Minister Cham Prasidh, H.E. Vice-President Bindu N. Lohani, Heads of Delegations, Ladies and Gentlemen, It is my great pleasure to attend the 17th Greater Mekong Sub-regional (GMS) Ministerial Meeting in the beautiful city of Phnom Penh. First of all, on behalf of the Chinese delegation, Id like to extend our heartfelt thanks to the government of Cambodia and the Asian Development Bank for the warm hospitality and thoughtful arrangements. At present, as the world economy continues to recover, the foundation of the recovery is not yet firm and the process is still unbalanced. The world economy is faced with many newly emerged uncertainties and risks, including slow-down of growth in major economies, further deterioration of sovereign debt crisis in Europe, and increasing inflationary pressure in emerging economies. Asian economy, though maintains fairly high growth rate, still faces many immediate and long-term challenges. While accommodating themselves to the uncertainties of external economic environment, Asian economies have to focus more on retuning their economic structures and growth modalities. In such a context, it is important for the GMS countries to jointly fend off external risks and realize economic development through strengthening mutually beneficial and win-win cooperation within the Sub-region. In the past two decades, the GMS cooperation is constantly making headways and harvests, contributing greatly to poverty reduction and economic and social development in the Sub-region. Following the 16th Ministerial Meeting in Hanoi, many new progresses have been attained by the GMS members through improving infrastructure, advancing Transport and Trade Facilitation (TTF) and reinforcing cooperation in various areas. At this special timing when the GMS cooperation is entering in a new decade, it is encouraging to see the draft GMS Strategic Framework for the next ten year (2012-2022) has been formulated. The new GMS Strategic Framework as guidance for future GMS cooperation, summarizes the past achievements, analyzes current opportunities and challenges faced by members and sets up basic principles, strategic objectives and eight priorities for future GMS cooperation. We feel confident about the next ten-year of GMS cooperation. Taking this chance, I would like to propose the following on our future cooperation:

Firstly, innovation fuels the engine to success. Only innovation can help us to constantly improve the quality of GMS cooperation and maintain the vitality of this mechanism. Therefore, it is necessary to utilize various platforms of knowledge exchange to strengthen policy dialogue and share good practices so as to boost innovations in cooperation and development modalities. Moreover, as we are trying to realize physical connectivity in the region, further efforts shall also be given to promote cooperation in soft areas such as TTF and social development. By exploring new fields and pilot new modalities, we can uplift our cooperation to a new level. Secondly, concrete plan lays the foundation of success. A good strategic framework shall be supported by concrete action plan and investment program. Following comprehensive assessment on the current cooperation projects, and in reference to the latest situation of the Sub-region and economic development strategies of each member, the ADB shall formulate action plan and investment program that are forward-looking, consistent and feasible to ensure that the guiding principles and strategic priorities highlighted in the new Strategic Framework can be earnestly observed. Thirdly, resource mobilization holds the key to success. With the deepening of cooperation in various fields, funding requests will keep increasing. And funding resource will become a key factor that decides smooth implementation of the new Strategic Framework. We hope that the ADB as the largest development institution in the region, channel in more preferential funds to support the GMS cooperation. We also encourage the Bank as GMS coordinator to absorb more countries and international organizations into GMS as development partners and continuously explore new funding modalities to mobilize sufficient financing resources into the region. In addition, as GMS members, the national governments shall enhance our own sense of responsibility, further reinforce our policy support, improve investment environment, enhance capacity building and create condition to facilitate private investment. Fourthly, ADBs support is the guarantee for success. The ADB is mandated by its Charter to promote regional cooperation. In the past two decades, the ADB has played an indispensable role in promoting GMS cooperation. On our way ahead, there will surely be new issues and challenges coming up. As the secretariat, coordinator and financier, the ADBs role in GMS shall tone up rather down in the future. We hope that in light of the needs of GMS members, ADB could continue to increase its input, boost policy research, heighten its member-serving capacity and promote regional cooperation and integration. Ladies and Gentlemen,

As a GMS member, China has been exploring various ways to actively support the sub-regional cooperation. In 2005, Chinese government donated USD$20million to set up the PRC Fund for Poverty Reduction and Regional Cooperation in ADB. In six years, the Fund has provided grants to 47 projects in 45 countries, among which about USD$8.67 million was used in GMS countries. In May this year at the 44th Annual Meeting of ADB in Hanoi, Vietnam, Chinese government announced to replenish the Fund by another USD$20 million. China is willing to contribute more to GMS cooperation within its capacity via the Fund and other channels. Meanwhile, China will stick to the policy of building friendship and partnership with neighboring countries, strengthen coordination with all members and join the concerted efforts to realize development and prosperity in the Sub-region. Thank you all!