The Economic Relationship Between China And Lao PDR In The Framework Of The Greater Mekong Sub-Region

In Southeast Asia,there is a large and diverse form of Sub-regional cooperation model known as the Association of Southeast Asian Nations(ASEAN).Not only it is formed as an economic development model,but it is also a part of the mechanisms of cooperation for the "Greater Mekong Sub-region Economic Cooperation(GMS). GMS is a comprehensive development mechanism which was launched by the Asian Development Bank in 1992.As one of the largest and most effective cooperative mechanisms promoting sub-regional cooperation in the Mekong River Basin,GMS consists of six countries namely:Cambodia,Lao People's Democratic Republic, Myanmar,Vietnam,Thailand and Yunnan Province of China.It aims to strengthen of economic link among member states to promote regional economic and social development.Presently,GMS cooperation covers nine fields such as:transportation, energy,telecommunications,environment,agriculture,human resource development, tourism,trade facilitation and investment.Economic development among the GMS member states comprises two different levels.The first group is composed of China, Thailand and Vietnam which have more developed economies and stronger technical and resource potentials.The second group includes Cambodia,Lao People's Democratic Republic,and Myanmar.The difference in levels of development of the member countries is not always advantageous aside from being assisted by the more economically developed neighbors;this makes real equal cooperation extremely difficult.This paper is divided into four chapters in detail:In chapter one introduces the background of Greater Mekong Sub-region;gives the Vientiane plan of action from 2008-2012;its role and implementation;and the challenges of GMS members as a whole.The GMS countries have shown active participation by implementing three strategies in the context of the economic corridors approach.The geography and location of each economic corridor like the North-South Economic Corridor.East-West Economic Corridor and Southern Economic Corridor and its benefits is mentioned.All these are geared towards future cooperation among GMS member states,generally and the economic and social development of Lao PDR, in particular.In chapter two,the economic and trade relations between China and the other five GMS countries have been presented in order to see the progress of the GMS cooperation development.In chapter three investigates the economic cooperation between China and Lao PDR in the context of NSEC cooperation by taking LuangNamtha Province North of Lao PDR and Yunnan Province of China as a case study.This is done to observe the deep economic cooperation between the two countries,especially the two provinces in the framework of the GMS cooperation.Also mentioned are the bilateral relations between the two countries,analysis of trade and investment in the two provinces,the struggles,and the balance of trade between the two provinces.There is also focus on trade deficit in the two provinces and see advantages and disadvantages,the problems found and the solution made of the social development in the field of environment, public health,tourism and community development is mentioned here,follow by the discussion of the future plan in development economy and society in LuangNamtha Province.Besides,the Law on the Promotion of Foreign Investment in Lao PDR is added to address Lao's Investment Law.In chapter four,the rich biodiversity resources,agricultural resources,water resources,mineral resources,land resources,human resources,and tourism resources of the Greater Mekong River Basin are covered.Its great economic potential and value to development was made obvious.However,it is also noted that the realization of this development potential was challenged by differences in social,political and economic systems in the basin.Ways and means for Lao PDR to gain from its 15 year membership in GMS and improve its development opportunities are also mentioned in this chapter.Finally,further challenges to GMS programs in nine key fields including transportation,energy,telecommunication,trade,investment,human resource development,environment,agriculture and tourism are also presented.Finally,conclusions are drawn from the study and recommendations advanced in order to reap more benefits and achieve sustainable development under the principle of the Greater Mekong Sub-region development.These are intended not only to strengthen international cooperation and organizational building but also for the demarcation of the main functions of the district,formulation of strategies for industrial development;and strengthening the Greater Mekong River Basin's external exchanges.