Concept and Function of the ACMECS/285 CONCEPT AND FUNCTION OF THE ACMECS WITHAYA SUCHARITHANARUGSE The end of the Cold War facilitated the expansion of the Association of Southeast Asian Nations (ASEAN) to include Cambodia, Laos, Myanmar and Vietnam (CLMV), all with lower economic standards than the original six members. Within this expanded framework, sub-regions have been formed, among them the Greater Mekong Sub-region (GMS), followed by a Cambodia-Laos-Vietnam Development Triangle and now by the Ayeyawadi-Chao Praya-Mekong Economic Cooperation Strategy (ACMECS). The latter was initiated by Thai Premier Thaksin Shinawatra. The Bagan declaration of 2003 sets out its aims. External partners are there and now this forum resembles a mini-ASEAN, with the detailed programmes and schedules of meetings that it has. But the promotion of ACMECS also enriches Thaksin’s business empire, while there is some hint here of Sino-Japanese rivalry. In a globalised world, ACMECS cannot afford to be a closed group and it will not be long before India is invited to join. THE IDEA OF forming a regional cooperation system within Southeast Asia has long been entertained by various leaders of the region since the end of the Second World War and the emergence of independent states in the region, in fact, running parallel with the security system created by superpowers from outside, such as the Southeast Asia Treaty Organisation (SEATO). The Vietnam War, which involved superpowers from outside the region, constituted the main worry and suspicion of leaders in Southeast Asia of outside interferences at the cost of peace and harmony. One way to stave off outside intervention was the neutralisation of the region, an idea that prevailed in Indochina in Cambodia and Laos. President Charles de Gaulle of France advocated the idea in 1961. However, although Laos and Cambodia were accorded a neutral status, this was meaningless due to the Vietnam War. Later occurrence saw attempts to create regional cooperation among peninsular and insular countries. The attempts to create a grouping within the region got started, resulting in the formation of ASEAN in 1967. ASEAN comprised five nations to begin with, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand, with Brunei joining in 1986 after its independence in January 1984. Withaya Sucharithanarugse is Academic Consultant, Southeast Asian Studies and Advisor, Institute of Asian Studies, Chulalongkorn University, Bangkok, Thailand. SOUTH ASIAN SURVEY 13 : 2 (2006) Sage Publications Los Angeles/London/New Delhi/Singapore Downloaded from sas.sagepub.com at UNIVERSITY OF SASKATCHEWAN LIBRARY on March 18, DOI: 10.1177/097152310601300209 2015 286/WITHAYA SUCHARITHANARUGSE The situation in mainland Southeast Asia changed dramatically in 1975 when Cambodia, Laos and Vietnam were ruled by communist regimes. The subsequent ‘Cambodian conflict’ that started in 1989 dragged on until the Paris Agreement of 1991. The Khmer Rouge has plagued Cambodian politics and unity since 1989 and has cost the country dearly in terms of retarding national reconciliation. The situation after the 1998 elections became much better even though political bickering f lared up every once in a while. It was within this broad frame of reference that ASEAN leaders seriously considered the inclusion of Cambodia, Laos, Myanmar and Vietnam into the regional association. By the end of the Cold War, all three countries in Indochina plus Myanmar embraced market/capitalist-driven economies. Export-driven economies forced the three Indo-Chinese states to look to market access outside Southeast Asia as well as within the region, while Myanmar desperately needed foreign direct investment to keep its economy going, particularly from members of ASEAN. With no more war, with the shared idea of growth and market economy, ASEAN started the process to include the four countries into ASEAN. Vietnam joined in 1995, Laos and Myanmar in 1997 while Cambodia joined in 1999. It was only then that ASEAN became truly an association of Southeast Asian nations. The inclusion of new members was not without controversy. The United States protested against the inclusion of Myanmar due to its brutal rule and disregard of human rights (Than 2005). It was because of Thailand’s unhappiness with Cambodian Premier Hun Sen’s ‘coup’ of 1997 that the membership of Cambodia was delayed until 1999. Despite all this uncertainty and the seemingly unclear prospects after joining ASEAN, none of the new members—in particular Myanmar—demonstrated an inclination to leave the group. The four new members are sometimes called the Cambodia, Laos, Myanmar, Vietnam (CLMV) countries, taken from the initials of the names of these states. Because of their lower economic standard compared with the original six members, ASEAN initiated a programme to raise the economic standard of the new members. It was in this context that the Hanoi Plan of Action was launched for the 1999–2004 period with an array of programmes and activities to boost the economies of the CLMV countries. The Vientiane Plan of Action succeeded this for another six-year period. I COOPERATION AMONG PENINSULAR SOUTHEAST ASIAN NATIONS Contact between nations has taken varied forms in the past: wars, trade, cultural activities, robbery, smuggling, illicit trafficking, border incursions and territorial claims, and disputes. Although nations have learnt to live with each other over the centuries, the intensity of such incidents has always been accentuated by political factors. Common causes that can enhance good relations between nations such as ethnicity, religion, culture or geographical factors have always existed. Obviously, these commonalities can be turned into negative elements depending on the prevailing situation at the time. Countries on mainland or peninsular Southeast Asia are no exception. Although Malaysia and Singapore atare usuallyOFexcluded from discussions Downloaded from sas.sagepub.com UNIVERSITY SASKATCHEWAN LIBRARY on March 18, on ASEAN, 2015 Concept and Function of the ACMECS/287 both countries have in fact invested and traded heavily with the four new members of ASEAN. Both Malaysia and Singapore have also offered aid and assistance. Yet, it is true that the collective cooperation that ASEAN has been undergoing does exclude the two states; the reason for which will emerge only through discussion. As such, discussion here deals with Cambodia, Laos, Myanmar, Thailand and Vietnam. The term ‘sub-regional cooperation’ hereunder refers to these five countries. France started the process of colonisation of Vietnam, Cambodia and Laos in 1863 and completed it in 1887, when all three countries were under the Indochinese Union. During 1945–54, the French created what was known as the French Indochinese Federation. After 1975, Vietnam was accused of harbouring colonial ambitions because it tried to reconstitute this federation and through special relationships with Laos and Cambodia, even though tensions occasionally flared up between Cambodia and Vietnam based mainly on anti-Vietnamese nationalist sentiment in Cambodia. The most significant geographical feature of intense political utility is the 4,800 km long Mekong River. Rising from Rupsa La Pass in eastern Tibet at a height of 5,100 metres, the Mekong meanders through Southern China (Yunnan), Myanmar, Laos, Thailand, Cambodia and empties into the South China Sea in Vietnam (Osborne 2000). During the Cold War period, the United Nations created a special agency known as the Economic Commission for Asia and the Far East (ECAFE), now renamed as the Economic and Social Commission for Asia and the Pacific (ESCAP). In 1957, the ECAFE created the Committee for the Coordination of Investigations of the Lower Mekong Basin, known commonly as the Mekong Committee, comprising Cambodia, Laos, South Vietnam and Thailand. The United States supported this initiative, as it was keen to develop it as a tool to fight against the expansion and influence of communism in the region. The lower Mekong River basin agency, with its secretariat in Bangkok, studied the hydrography of the Mekong region. However, when it came to engaging in the construction of a series of dams along the river and its tributaries, the effort failed. The notion of dam building has been linked closely to economic development and the clearing of land for the production of cash crops. Energy consumption for industrialisation and urbanisation has prompted the building of dams that has led to greater deforestation, human relocation and rural poverty. The United States was in full support of dam building in the Mekong River basin, such as the Pa Mong Dam. However, the Vietnam War from the early 1960s to 1975 made it impossible to build any dam. Only twenty years later, in April 1995, was the Mekong Committee reconstituted as the Mekong River Commission comprising again Cambodia, Laos, Thailand and Vietnam, with its headquarters in Phnom Penh. Yunnan Province of China has been one of the poor provinces. The provincial authorities of Yunnan have been greatly motivated and active in developing the province. In 1984, the central government of China began to build the Manwan dam on the Mekong River and completed it in 1993. The dam generated electricity of 1,500 megawatts for Kunming, the capital of Yunnan. In 1996, another dam downriver from Manwan was begun at Daochaoshan. In fact, China made it known that a ‘cascade’ of dams would be built onat the Mekong River within its territory. Downloaded from sas.sagepub.com UNIVERSITY OF SASKATCHEWAN LIBRARY on March 18, The Chinese 2015 288/WITHAYA SUCHARITHANARUGSE exploitation of the river caused great concern among the riparian countries downstream, including Myanmar, as these countries feared that the water level of the Mekong would affect natural habitat as well as human lives. Yunnan was interested in finding export outlets to the south by using the Mekong River as a navigation route. The Chinese are keen on having a commercial navigation route from Simao port in Southern Yunnan to Vientiane. This project will involve blasting narrow gorges and shoals along the Mekong. China has succeeded so far in making Myanmar, Laos and Thailand agree to its scheme, despite the occasional protest. As it stands now, a medium-sized cargo boat from Simao can reach Chiang Saen in northern Thailand during high water level period. Therefore, the Mekong River management cannot leave China out. ASEAN’s informal summit in Kuala Lumpur on 15 December 1997 enunciated a document named ASEAN Vision 2020, which envisaged ‘a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together as partnership in dynamic development and in a community of caring societies’ (ASEAN 1997). The Hanoi Plan of Action (HPA) was conceived in Hanoi in 1998 with the specific aim of hastening the economic development of the CLMV countries within ten categories of main activities. The economic cooperation in the Greater Mekong Sub-region (GMS) was well-documented by the 6th ASEAN Summit at Hanoi in 1998. Besides, ASEAN also created the ASEAN-Mekong Basin Development Cooperation (AMBDC) at the ministerial meeting in Hanoi in 1998. The framework of cooperation of the GMS followed that of the HPA. The area of cooperation comprises (1) communication and transportation, (2) energy, (3) tourism, (4) telecommunication, (5) human resource development, (6) trade facilitation and (7) investment. The GMS represents an operational area of ASEAN to accelerate economic development of the CLMV countries. The ASEAN Mekong Basin Development Cooperation (AMBDC) is a mechanism overseeing these development activities. The GMS activities get support from the Asian Development Bank (ADB) on road linkages and networks. It is through ASEAN programmes on the GMS that insular ASEAN countries are engaged with their counterparts on the mainland. However, this is not without problems. Indonesia, under Abdurrahman Wahid’s administration, was not very happy with the attention ASEAN gave to the GMS. In their effort to generate economic development and cooperation, some ASEAN members formed a special economic development area, commonly known as the ‘growth triangle’. The best-known example is the cooperation between Indonesia, Malaysia and Singapore on Batam Island industrial zone; another is the Growth Triangle of Indonesia, Malaysia and Thailand (GT-IMT). For the CLMV, the proposal was of a Cambodia-Laos-Vietnam Development Triangle, plus the Diamond Triangle proposed by Cambodia that includes Laos and Thailand. When applied to ASEAN, what this effort means is that multi-cooperation through the ASEAN mechanism can be reinforced by small multilateral arrangements exemplified by the growth triangle. In this manner, other forms of multilateral cooperation can emerge. The HPA represents a series of action plans to help accelerate economic development Downloaded of the from CLMV countries. Networks of roadLIBRARY andonland transportation sas.sagepub.com at UNIVERSITY OF SASKATCHEWAN March 18, 2015 Concept and Function of the ACMECS/289 linkages between Laos and Yunnan can help in transforming Laos from being a landlocked country to a land-bridge country linked to Vietnam and Thailand. Merchandise from Yunnan and China now reaches Laos very easily, although border checkpoints have to be upgraded. Chinese goods are available at a low price in all the major Laotian cities. Malaysia and Singapore have invested in a big way in all CLMV countries. Singapore, in fact, led all ASEAN countries by investing in the CLMV long before the GMS and the HPA. Both Malaysia and Singapore offered special training programmes for CLMV officials. It was Singapore that proposed a rail link from Singapore to Yunnan, which was later accepted. Hosting ASEAN Summits in Hanoi, Phnom Penh and Vientiane has helped boost morale, prestige and earnestness of being proper ASEAN members. Although the CLMV countries do not intend to weigh down ASEAN, undoubtedly their ability to perform varies. They all have their own national development plans and projects which need to cater for particular local needs. The CLMV’s projects under the HPA supplement and boost economic development of all four countries. Certainly, there is no rule forbidding bilateral and multilateral activity among and for the CLMV states. Thailand took the initiative to contribute more to the development of the CLMV by setting up a framework for closer cooperation between the CLMV countries and Thailand in mid-2003, via the Economic Cooperation Strategy (ECS) mechanism. II THE AYEYAWADI-CHAO PRAYA-MEKONG ECONOMIC COOPERATION STRATEGY Thailand has engaged in the development of its neighbourhood through trade, investment, tourism, cultural and academic exchange and aid. Incidents along the border, misunderstanding fuelled by media misrepresentation and political machinations often create irritants in bilateral relations. The perceptions of leaders and government policy invariably have an adverse impact on bilateral reactions. In the late 1980s, the administration of Chatichai Choonnhavan and its celebrated policy of ‘turning battlefield into trade venue’ oriented Thailand to take an energetic approach in economic relations with Vietnam, Cambodia, Laos and Myanmar. This volte-face displeased ASEAN, as it had not been forewarned about which Cambodian conflict was being solved. Domestically, Thai businessmen had their own problems as they invested with the mentality of getting rich quickly but with no public sector guidance. Five years after the economic crisis of 1997, Thaksin Shinawatra’s administration and his Thai Rak Thai (TRT) Party with the support of smaller parties became popular due to their populist policies and down-to-earth approach to politics. A shrewd businessman himself, Thaksin gave favours to big business and facilitated them in their aggressive business undertakings, which also saw the Prime Minister’s own business empire flourishing. Thaksin’s success was well-reflected in the early general elections in 2006 that witnessed a landslide victory for the TRT. The premier boasted of 19 million votes of support, thereby forming a single party regime, a rarity in Thai politics. Thaksin’s first project was the Asia Cooperation Dialogue (ACD) launched in 2002. This was quiteDownloaded ambitious and Thaksin did not hesitate to embrace it. It18,would appear from sas.sagepub.com at UNIVERSITY OF SASKATCHEWAN LIBRARY on March 2015 290/WITHAYA SUCHARITHANARUGSE that both Thaksin and Surakiart Sathirathai, then Thai Minister of Foreign Affairs, had an eye on making their presence felt in a domain far larger in scope than a subregion such as Southeast Asia. Thaksin himself did not try to get well-acquainted with other top leaders of ASEAN. The idea behind the ACD was the difficult political situation in East Asia (on the Korean peninsula, the Taiwan issue and the sour relations between Japan and China). Also, it was unlikely that the leaders of South Korea, Japan and China would support any other initiative. Furthermore, Malaysian Prime Minister Mahathir’s project of creating an East Asia Economic Cooperation (or Caucus) was likely to fail due to U.S. and Australian opposition. Thaksin also lamented the absence of an organisation like the African Union, NAFTA or EU-type organisation in Asia. He suggested the Asia Bond worth US$1 billion in 2003, which was agreed upon by the East Asia and Pacific central banks. By 2005, ACD had 28 members with a population of more than 3.2 billion and listed 19 areas of cooperation. For observers, the ACD was a mere talking shop which regional leaders were obliged to attend out of courtesy. China seemed to be the principal supporter of the ACD; China’s leadership role in the Asian region is unmistakable and China’s participation in such organisations helps neutralise the China threat. It was in mid-2003 that Thaksin initiated the Economic Cooperation Strategy (ECS) comprising Cambodia, Laos, Myanmar and Thailand. Thaksin raised the issue with the three countries in Bangkok during the SARS (severe acute respiratory syndrome) meeting on 29 April 2003. Myanmar hosted the first ECS summit at Bagan on 12 November 2003. Vietnam joined the group only on 10 May 2004. The exclusion of Vietnam in the first place is not well understood. It might be the result of old sentiments of rivalry between Thailand and Vietnam over Cambodia and Laos. However, by 2003 Thai-Vietnamese relations became better after Thailand assured Vietnam that it was not behind the activities of the Vietnamese dissident groups from the United States. Thaksin dealt with the Vietnamese concerns by arranging a joint cabinet meeting between Thailand and Vietnam in Hanoi and Udornthani province in northeast Thailand. Cambodia, Laos and Myanmar need special attention from Thailand. Besides, the idea of ‘prospering thy neighbours’ or the new phrase of ‘partner in progress’ is appropriate for Thailand as it has a higher rate of economic growth and is more developed than its neighbours. Bilateral relations between Thailand and each of these neighbouring countries are good. Thailand invests heavily in Laos, considerably in Cambodia and Myanmar. However, critics will point out the fact that Thaksin’s telecommunication investment in Myanmar and Cambodia benefits his communication empire. By 2005, the name of the ECS was changed into Ayeyawadi-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS). The Bagan Declaration of 12 November 2003 sets forth the principle and mode of operation of the ACMECS. It refers to the existing good neighbourliness, similar cultural and historical heritage, same religion and mutual benefits; affirmed further by the strong desire and determination among members to build a strong foundation for cooperation and from coexistence peace and prosperity. Members affirm the Downloaded sas.sagepub.comamidst at UNIVERSITY OF SASKATCHEWAN LIBRARY on March 18, 2015 Concept and Function of the ACMECS/291 commitment to enhancing understanding, confidence and good neighbourliness within a stable political environment that is necessary for sustainable economic cooperation. The declaration stresses the cooperative effort based on a spirit of equality and partnership to build a strong foundation for a prosperous and peaceful community of nations. The desire is to create regional prosperity with increasing solidarity, mutual respect, close friendship, good neighbourliness and active cooperation among members so that the immense potential of the economy can be utilised to promote sustainable economic development to uplift the welfare and quality of life of their people. The document specifically mentions the plan to transform the adjoining border areas into a stable, peaceful area of growth in order to enhance social progress and prosperity of the peoples as well as to integrate local national and regional interests for mutual benefits and wealth. The Bagan Declaration (2003) spells out the aims of ACMECS: 1. promote ability of competitive advantage and to create more growth along the border; 2. facilitate transferring of agricultural industry and production to areas with competitive advantage; 3. create job opportunities and to reduce differences in income among members; and 4. promote peace, stability and sustainable mutual prosperity. The Declaration specifies that the activities of the ACMECS are 1. 2. 3. 4. 5. compatible and reinforcing the existing bilateral and regional cooperation; practical and with concrete result based on each country’s competitive advantage; realisable and agreeable with the country concerned; voluntarily and equally sharing the benefits; and with consensus of all countries involved. The areas of cooperation specified by the Declaration comprise 1. 2. 3. 4. 5. trade and investment facilitation; agricultural and industrial cooperation; transport linkages; tourism cooperation; and human resource development. At the ministerial meeting of the ACMECS at Siem Reap, Cambodia on 5 August 2005, Thailand proposed public health as another area of cooperation, which was later accepted. As for the mechanism of the ACMECS, it was agreed that there would be a summit every two years. The second summit was held in Bangkok during 1–3 November 2005. While the ministerial meeting is anatannual affair, the SOMLIBRARY (Senior Officials Meeting) Downloaded from sas.sagepub.com UNIVERSITY OF SASKATCHEWAN on March 18, 2015 292/WITHAYA SUCHARITHANARUGSE is to be held every six months. A working group meeting in coordination with embassies of other members in Bangkok was to be held every two months along with meetings of the working group on specific areas. The Economic Cooperation Strategy Plan of Action (ECSPA), now called ACMECS-PA, was adopted as a first series of action with a time frame of 10 years, that is 2003–2012, to be reviewed every two years. Programmes, projects and cooperative arrangements will be of three categories: immediate-to-short term, medium term and long term. The ECSPA has seven annexes specifying details of areas of cooperation, giving details of bilateral projects between members. At the ministerial meeting on 10 May 2004, development partners of ACMECS were invited to participate, such as Japan, Singapore, Australia, New Zealand, France, Germany, Canada, the European Union and the ADB. Private/business sectors were also mobilised, particularly at the second summit. Annex I of the ACMECS-PA describes the common projects, programmes and cooperation arrangements. Initially there were 46 items of cooperation, among which are: (1) the establishment of wholesale and export markets at border areas, (2) one-stop service on trade and tourism, (3) encouragement of increased use of local currencies for border trade transaction, (4) implementation of account trade system, (5) contract farming in agricultural products (6) facilitation of subcontracting in manufacturing sector, (7) additional routes and corridors connecting China and India, (8) training programme provided by Thailand and Vietnam, (9) cross-border overland tours and (10) 100 scholarships for general education in schools and universities in Thailand. It is interesting to note that bilateral cooperation between Thailand and other members has more detail and consists of longer lists of activity. Obviously, ACMECS has adopted the norms, practice and structure of ASEAN, making it look like a mini-ASEAN. Although there is no secretarial office, Bangkok maintains the website for the group. On the Thai side, a public organisation called the Office for Economic Cooperation with Neighbouring Countries was created on 16 May 2005 in order to facilitate financial support from Thailand. On 18 July 2005, the Committee for Economic Cooperation with Neighbouring Countries was created to propose and decide on policy, plans and programmes of cooperation. It is not known whether Thailand informs other ASEAN members about what it wants to achieve. ACMECS-PA supplements the HPA/VPA, which is an ASEAN collective programme. As a sub-regional collective effort, ACMECS can pick specific areas of cooperation with direct impact on the economy and people. The HPA, as an area of collective ASEAN action, has to take into consideration the whole of ASEAN’s interest, while that of ACMECS is limited to only half the ASEAN members. Whether ACMECS-PA will compete for funds with the HPA/VPA is a moot point; HPA/VPA is in a better position to attract funding. The problem is who will push for more funding; in the case of ACMECS, Thailand will be the main instigator. For example, in mid-October 2005, Thailand made it known before the first ministerial meeting of ACMECS on trade and investment facilitation, that the value of current trade Downloaded from sas.sagepub.com at UNIVERSITY OF SASKATCHEWAN LIBRARY on March 18, 2015 Concept and Function of the ACMECS/293 among the five countries was US $2 billion per year. Trade was expected to rise up to 50 per cent more if the project could be successfully completed, although a time frame was not given. Thailand’s role in helping neighbouring countries was underscored in the report on ‘Global Partnership for Development: Thailand’s Contribution to the Millennium Development Goal 8’. This report was released in September 2005 ahead of the UN World Summit by the UNDP. The report said 93 per cent of the US $1.65 billion in official development assistance (ODA) provided by Thailand in 2003 went to neighbouring countries comparing with the 33 per cent of the ODA of the OECD countries directed to least developed countries. In 2003, Thailand contributed 0.13 per cent of gross national income (GNI) to least developed countries, slightly behind Japan’s figure of 0.20 per cent and the U.S. figure of 0.15 per cent. Thailand seized this opportunity to promote ACMECS as a vehicle to increase the competitiveness of Cambodia, Laos, Myanmar and Vietnam in agricultural and manufacturing industries (Chongkittavorn 2005). Yet, as critics are quick to point out, through ACMECS Thaksin was able to enrich his business empire by making Myanmar accept Thailand’s package loan to develop Myanmar’s communication system. In return, Myanmar has given concessions on satellite systems in lieu of Thaksin’s business enterprises (Chongkittavorn 2005). Of course, Thailand is in a better position to expand industrial investment into the other ACMECS members where cheap labour and an abundance of raw materials will reduce Thailand’s cost of production. It is because of this that Thailand must be very careful and must proceed strictly along the path already agreed upon in the Bagan Declaration and subsequent guidelines. Another risk is Thaksin’s close association with ACMECS, which will squarely affect ACMECS in a negative way. This needs to be borne in mind particularly in light of the September 2006 coup that resulted in the overthrow of Thaksin Shinawatra. III CONCLUSION The peninsular countries of Southeast Asia (minus Malaysia and Singapore) use the Mekong River as a tool for economic cooperation and development. After the Cold War, the Greater Mekong Sub-region was constituted in 1992 with support from the ADB with the main focus on road and transportation linkages between the six members. ASEAN initiated the Hanoi Plan of Action in 1998 (now Vientiane Plan of Action) to accelerate economic transformation of the CLMV countries. In 2003, Thailand pushed for Economic Cooperation Strategy (ECS), now ACMECS with itself as its host. This threefold structure can be confusing for unaware observers. The question, however, is whether this triple arrangement will reap three times the success. By normal standards, all programmes, projects, arrangements need outside funding and the funds will come if the activities are attractive to invest in. Yet attractiveness should not be seen only in economic terms. It can be purely political, although the combination of the two is the most satisfactory arrangement. The development partners of Downloaded from sas.sagepub.com at UNIVERSITY OF SASKATCHEWAN LIBRARY on March 18, 2015 294/WITHAYA SUCHARITHANARUGSE the ACMECS, that is France, Germany, Australia, New Zealand, Japan and the ADB are represented in the GMS as well. With the GMS, China has been very keen to play a dominant role, yet within the GMS framework, the Chinese push has been resented. Since October 2005, Japan has engaged in regular meetings with the economic ministers of the CLMV and it was reported that this reflected a growing interest among Japanese business in the region as a promising destination for development. On the other hand, it is also interpreted as an attempt to counter the growing economic and political role of China over the region. In actuality, the ADB funding for the projects of the GMS comes from Japan. It was at the first GMS summit in Phnom Penh in November 2002 that the Chinese premier Zhu Rongji unveiled a package of financial programmes. In 2004, Beijing set up a special $20 million fund within the ADB to alleviate poverty in the region. China also organised the second GMS summit in Kunming on 5 July 2004 (Richardson 2005). Competition between China and Japan over the GMS and ACMECS can adversely affect both if good diplomacy is lacking. At the present, India’s role is not clear within the ACMECS; however, it will not be before long that India will be invited to step in. In a globalised world, ACMECS cannot afford to be a closed group, especially as it has both regional as well as interregional dynamics. REFERENCES ASEAN. 1997. Association of Southeast Asian Nations, ‘ASEAN Vision 2020’, 15 December, Kuala Lumpur, accessed from http://www.aseansec.org/1814.htm. Bagan Declaration. 2003. Kingdom of Thailand, Ministry of Foreign Affairs, ‘Bagan Declaration’, 12 November, accessed from http://www.mfa.go.th/web/1655.php. Chongkittavorn, Kavi. 2005. ‘Regional Perspective: Thailand Relishes in its New Image: Donor Country’, The Nation, 31 October: 10A, accessed from http://www.nationmultimedia.com/search/page.arcview. php?clid=11&id=123089. Osborne, Milton. 2000. ‘The Strategic Significance of the Mekong’, Contemporary Southeast Asia 22 (3), December: 429–444. Richardson, Michael. 2005. ‘China’s Growing Role in Mekong Politics’, The Nation, 19 August: 10A, accessed from http://www.nationmultimedia.com/2005/08/19/opinion/data/opinion_18381075.html. Than, Mya. 2005. Myanmar in ASEAN: Regional Cooperation Experience. Singapore: Institute of Southeast Asian Studies. Downloaded from sas.sagepub.com at UNIVERSITY OF SASKATCHEWAN LIBRARY on March 18, 2015