Foreword and Conference Inauguration - GMS-EOC

International Conference on
GMS 2020: Balancing Economic Growth
and Environmental Sustainability
Focusing on Food - Water - Energy Nexus
20 - 21 February 2012
Royal Orchid Sheraton Hotel and Towers
Bangkok, Thailand
Conference Proceedings
GREATER MEKONG
SUBREGION
CORE ENVIRONMENT
PROGRAM

International Conference on
GMS 2020: Balancing Economic Growth
and Environmental Sustainability
Focusing on Food - Water - Energy Nexus
20 - 21 February 2012
Royal Orchid Sheraton Hotel and Towers
Bangkok, Thailand
Conference Proceedings
Edited by
Hasan Moinuddin and Jay Maclean
GREATER MEKONG
SUBREGION
CORE ENVIRONMENT
PROGRAM
i

ii
International Conference on GMS 2020:
Balancing Economic Growth and Environmental Sustainability,
Focusing on Food-Water-Energy Nexus
20-21 February 2012, Bangkok, Thailand
ISBN No: 978-616-90685-5-6
Copyright © 2012 Asian Development Bank
All rights reserved
Disclaimer
The analyses and assessments contained in this report
are those of the authors and do not necessarily reflect
the views and policies of the Asian Development Bank
(ADB) or its Board of Governors or the governments they
represent.
The ADB does not guarantee the accuracy of the data
included in this publication and accepts no responsibility
for any consequences of their use.
Use of the term “country” does not imply any judgment by
the authors or the ADB as to the legal or other status of
any territorial entity.
Boundaries of all maps contained in this report should not
be considered authoritative. All information contained in
the maps has a high degree of generalization owing to the
small scale of data sets used for map compilation.
Cover Photos: Steven Griffiths and Jiao Xi
Printing by Clung Wicha Press Co., Ltd., Thailand
August 2012 - 2,000
Acknowledgements
The GMS Environment Operations Center and ADB
would like to thank development partners, governments of
Finland and Sweden, and the People’s Republic of China’s
Poverty Reduction Fund for their generous contributions
to the Core Environment Program and Biodiversity
Conservation Corridors Initiative (ADB TA 6289).

ForEWorD
The Asian Development Bank (ADB) has been assisting the Greater Mekong Subregion (GMS) Economic
Cooperation Program since 1992. The program has accomplished a lot because of proactive cooperation of its six
member countries—Cambodia, the People’s Republic of China, the Lao People’s Democratic Republic, Myanmar,
Thailand, and Viet Nam. The progress is reflected in terms of improvements in infrastructure connectivity, promotion
of trade and investment, stimulation of economic growth, and reduction of poverty. However, such progress has
not been without some adverse impacts on the environment. Based on such recognition, the countries adopted a
10-year strategic framework in 2002 to address the growing environmental degradation. The framework noted that
“environmental considerations must be at the forefront of all decision-making regarding development projects.”
The GMS 2020 International Conference – Balancing Economic Growth and Environmental Sustainability – provided
the setting to review progress under the 2002-2011 strategic framework, and to consider the subregion’s potential
and challenges in the coming decade and beyond. The conference was highly successful, mainly because of
valuable contributions from nearly 240 participants representing several stakeholder groups including the GMS
governments, the private sector, development partners, academia, and civil society.
The central theme of the conference – food-water-energy nexus, which is already at the forefront of political and
scientific debate in the GMS – attracted most attention from participants. A nexus approach can enhance water,
energy and food security by increasing efficiency, reducing trade-offs, and building synergies across sectors. Many
presentations, therefore, focused on deepening the awareness and understanding of the nexus as a basis for
transition to climate resilient and green economic pathways of development. Several presenters stressed that vision
and courage to transcend conventional sectoral approaches and silo thinking is crucial to advance the pursuit of
sustainability in the subregion.
The GMS is poised to grow at 7.5% annually, doubling its economic output by 2020. However, increasing resource
constraints, in particular finite land and water resources (though renewable), suggest that innovative ways of
achieving higher resource efficiency will be vital to support future development. In addition, institutional innovations
including effective governance structures supported by both private and public sector investments are essential to
facilitate the integrated management of energy, water, and agriculture systems in the GMS. ADB is committed to play
its part in assisting countries in the subregion to achieve this goal by mobilizing additional financial resources and
developing new knowledge products.
It is hoped that this publication will promote a more positive image of the GMS and contribute to the development
of policies and measures necessary for the subregion to improve its economic competiveness while protecting
environmental integrity.
Kunio Senga,
Director General, Southeast Asia Regional Department (SERD)
Asian Development Bank
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CoNtENtS
Foreword............................................................................................................................................................... iii
Abbreviations....................................................................................................................................................... ix
Conference Inauguration
Welcome remarks
Craig Steffensen, Country Director, ADB Thailand Resident Mission............................................................. 3
Inaugural Speech
Mingquan Wichayarangsaridh, Deputy Permanent Secretary,
Ministry of Natural Resources and Environment, Thailand............................................................................. 5
opening remarks
Stephen P. Groff, Vice President (Operations 2), ADB…................................................................................ 7
Session 1: Decade of Development, Growth, and Impacts 2001 - 2010 in the GMS
Dynamics of Economic Growth in the GMS: A Retrospective View 2000 - 2010
Arkhom Termpittayapaisith and Ladawan Kumpa.................................................................................. 10
Growth in the Greater Mekong Subregion in 2000 - 2010 and Future Prospects,
Utsav Kumar and Pradeep Srivastava................................................................................................... 12
Economic Growth and Development in Cambodia, 2001 - 2010, and Strategies and Plans for 2011 - 2020,
Hing Vutha............................................................................................................................................. 42
Recent Economic Development Performance and Some Perspectives on Economic Development Strategy
for 2020, Lao PDR, Leeber Leebouapao................................................................................................ 48
Economic Growth and Development in Myanmar, 2001 - 2010, and Strategies and Plans for 2011 - 2020,
Tin Htoo Naing....................................................................................................................................... 58
Economic Growth and Development in Viet Nam, 2001 - 2010, and Strategies and Plans to 2020,
Duong Duc Ung...................................................................................................................................... 73
The Future of Water in the GMS: Is it History?
Arjun Thapan......................................................................................................................................... 78
Environmental Impacts: Current and Future Challenges in the Greater Mekong Subregion,
Jeffrey A. McNeely.................................................................................................................................. 86
The Impact of Trade Liberalization on the Environment in GMS and Southeast Asian Countries:
An Empirical Study, Loi Nguyen Duy...................................................................................................... 101
Economic Growth and Poverty Reduction in the Greater Mekong Subregion,
Peter Warr.............................................................................................................................................. 112
Water and Food Security in the Greater Mekong Subregion: Outlook to 2030/2050,
Mark W. Rosegrant, Claudia Ringler, Tingju Zhu, Simla Tokgoz and Pascale Sabbagh........................ 127
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vi
CoNtENtS (continued)
Gender and Regional Economic Integration in the GMS: Role of Cross-Border Transportation Development,
Kyoko Kusakabe.................................................................................................................................... 147
Water - Energy Nexus: Sustainable Urbanization in the Greater Mekong Subregion,
Peter Rogers.......................................................................................................................................... 153
Session 2: Food - Water - Energy Nexus
Session 2.1: Food Security
Food Security in the Greater Mekong Subregion: Historical Perspectives from the Mekong Committee,
Jeffrey A. McNeely................................................................................................................................. 164
Policies for Long-Term Food Security in the Greater Mekong Subregion,
Shikha Jha, David Roland-Holst and Songsak Sriboonchitta................................................................. 175
The Future of GMS Forestry in the Context of the Food-Water-Energy Nexus,
J.S. Broadhead, B. Damen, P.B. Durst and C.L. Brown. ....................................................................... 198
Climate Risks to Agriculture/Food Security in the GMS Countries and Early Warning Systems
in the Context of the Food - Water - Energy Nexus, S.V.R.K. Prabhakar............................................... 209
Impact of Soil, Management Practices and Climate Change on Water Productivity of Winter Rice
in the Mekong Delta, Marjorie Menard and Mohammed Mainuddin....................................................... 225
Remote Sensing-based Method to Map Irrigated Rice Cropping Patterns of the Mekong Delta, Viet Nam,
Nguyen Thi Thu Ha, C.A.J.M. de Bie, Amjad Ali and E.A.M. Smaling.................................................... 235
Health Cost of Pesticide Use Practices in Mung bean (Vigna radiata L) Production in Myanmar,
Seinn Seinn Mu and Corazon T Aragon................................................................................................. 245
Session 2.2: Land, Water, and Climate Change
Water for Food and Energy in the GMS: Issues and Challenges to 2020,
R. Johnston, P.G. McCornick, G. Lacombe, A. Noble, C.T. Hoanh and R. Bartlett................................. 254
Development and Application of a Land-Use Prediction Model for Future Water Resources Management
in the Greater Mekong Subregion, Akiyuki Kawasaki, Masatsugu Takamatsu and Peter Rogers.......... 268
Challenges Facing Cooperation and Sustainability on Water Security and Hydropower Development
in the Mekong River Basin: The GMS Response, Suzanne Ogden........................................................ 276
Drought Risk Management as Climate Change Adaptation and Disaster Risk Reduction Linkages
in Lower Mekong Region: Issues, Challenges, and Potential, Rajib Shaw..................................................... 287
Water and Development in the Lower Mekong Basin,
Ton Lennaerts, Phetsamone Southalack and Satit Phiromchai.............................................................. 302
Mainstreaming of Wetland Ecosystem Services in Policy Planning Process – Case of Viet Nam,
Kim Thi Thuy Ngoc................................................................................................................................. 312

CoNtENtS (continued)
The Role of Tree Crops in Local Adaptation to Climate Variability: Learning from the Field,
Su Yufang and Neera Shrestha Pradhan............................................................................................... 321
Managing Concession Forests for Carbon Benefits in Cambodia,
Nophea Sasaki and Kimsun Chheng..................................................................................................... 326
Forests, Past, Present and Future in the GMS,
Alastair Fraser........................................................................................................................................ 338
Using Spatial Models to Improve the Outcomes of Land-Use Planning: The Case of
Quang Nam Province, Viet Nam, Lothar Linde and Wilbert van Rooij.................................................... 345
Land, Water, Forests, Biodiversity, and Climate Change in Myanmar,
Htwe Nyo Nyo........................................................................................................................................ 354
Session 2.3: Energy
Mekong Energy Metabolism: Connecting Energy Demand into the Nexus of Food-Water-Energy Security,
John Ward, Tira Foran, Alex Smajgl, Lilao Bouapao, Sokhem Pech and Lu Xing.................................. 364
Water resources management in the Greater Mekong Subregion: linkages to hydropower planning
for a sustainable future, Jeremy Bird........................................................................................................... 386
The Role of Clean Coal Technologies in the Greater Mekong Subregion Countries,
J.R. Kessels........................................................................................................................................... 399
Biofuels in the Greater Mekong Subregion: Energy sufficiency, food security, and environmental management,
Pradeep Tharakan, Naeeda Crishna, Jane Romero and David Morgado................................................... 409
Global Environment and National Information Evaluation System (GENIES) for Urban Impact Analysis,
Jitendra (Jitu) Shah, Peter Urich, Yinpeng Li, Wei Ye and Robert Carr.................................................. 424
Internalizing the Externalities – Strategic Environmental Assessment of Power Development Plans
in Viet Nam: Implications for the GMS, John Soussan, Sumit Pokhrel and Nguyen Thi Thu Huyen........ 433
Status of energy use, power sector expansion plans and related policies in the GMS:
challenges and opportunities, Butchaiah Gadde, Karthik Ganesan and Pradeep J Tharakan............... 443
Greenhouse Gas mitigation by hydropower trading from Myanmar to Thailand,
Cherry Myo Lwin, Weerakorn Ongsakul and Hiroki Tanikawa................................................................ 456
Panel Discussion – Day 1 Scaling economic development and environmental challenges
Dr Nessim Ahmad, ADB.............................................................................................................................. 469
Session 3: Group Discussion reports – Day 1....................................................................................... 476
vii

viii
CoNtENtS (continued)
Session 4: Challenges and Dynamics of Growth in the Next Decade 2011-2020
Food-Water-Energy Nexus: GMS Challenges of Growth for 2020 and Beyond,
David Roland-Holst and Samuel Heft-Neal............................................................................................ 484
Panel Discussion – Day 2 Scaling Challenges and Scoping opportunities
for the Next Decade, Arjun Thapan.......................................................................................................... 502
Session 5: responses to challenges of the next decade in the GMS
Group Discussion reports – Day 2..................................................................................................... 513
A. Food Security
B. Land, Water, and Climate Change
C. Energy
D. Private Sector – Emerging role
Eliminating Toxic Effluents from Pulp and Paper industry: Creating Green Jobs and Sustainable Economies
in the Greater Mekong Subregion, Archie J. Beaton............................................................................... 522
The Public-Private Partnership Role in Development and Environment: Capacity Development for
Sustainable Public-Private Partnership, Ohnmar Khaing....................................................................... 531
Session 6: Seizing opportunities – the Way Forward
Panel Discussion – Day 2 Seizing opportunites: the Way Forward, James Nugent......................... 539
Session 7: Conference Closing remarks................................................................................................. 548
Appendix 1: Conference Agenda................................................................................................................ 554
Appendix 2: List of Participants.................................................................................................................. 558

ABBrEvIAtIoNS
ADB Asian Development Bank
AOX adsorbable organic halides
APERC Asia Pacific Energy Research Centre
BKPM bleached kraft pulp mill
BOD biochemical oxygen demand
CCGT combined cycle gas turbine
CEP-BCI Core Environment Program and Biodiversity Conservation Corridors Initiative
COD chemical oxygen demand
DEQ Department of Environmental Quality
EAPP East African Power Pool
ECP Economic Cooperation Program
EDC Electricité du Cambodge
Edl Electricité du Laos
EGAT Electricity Generating Authority of Thailand
EIU Economist Intelligence Unit
EOC Environment Operations Center
EPF Energy Power Forum
EU European Union
EVN Electricity of Viet Nam
FAO Food and Agriculture Organization of the United Nations
FDI foreign direct investment
FIPI Forest Inventory and Planning Institute, MARD, Viet Nam
GDP gross domestic product
GHG greenhouse gas
GMS Greater Mekong Subregion
GNI gross national income
GZAR Guangxi Zhuang Autonomous Region
HIV/AIDS human immunodeficiency virus / acquired immunodeficiency syndrome
IEA International Energy Agency
IGA intergovernmental agreement
IPCC Intergovernmental Panel on Climate Change
Lao PDR Lao People’s Democratic Republic
M&I municipal and industrial
ix

x
MARD Ministry of Agriculture and Rural Development, Viet Nam
MDGs Millennium Development Goals
MEP Ministry of Electric Power
MONRE Ministry of Natural Resources and Environment, Viet Nam
MRB Mekong River Basin
MRC Mekong River Commission.
NGOs nongovernment organization
ODA official development assistance
OECD Organisation for Economic Co-operation and Development
OPEC Organization of Petroleum Exporting Countries,
PCB polychlorinated biphenyl
PCC power control center
PPP purchasing power parity
PRC People’s Republic of China
REF Rural Electricity Fund
RIMPPI Regional Indicative Master Plan on Power Interconnection
RPT regional power trade
RPTCC Regional Power Trade Coordination Committee
RPTOA Regional Power Trade Operating Agreement
SIEPAC Central American Electrical Interconnection System
TCF totally chorine free
TPES total primary energy supply
UN United Nations
UNDP United Nations Development Programme
UNDRIP United Nations Declaration on the Rights of Indigenous Peoples
UNEP United Nations Environment Programme
UNFCCC United Nations Framework Convention on Climate Change
US United States
US EPA United States Environmental Protection Agency
VND Vietnamese dong
WAPP West African Power Pool
WDI world development indicators
WHO World Health Organization
WSS water supply and sanitation
WTO World Trade Organization

Conference Inauguration
Welcome Remarks
Craig Steffensen, Country Director, ADB Thailand Resident Mission
Official Inauguration
Mingquan Wichayarangsaridh, Deputy Permanent Secretary,
Ministry of Natural Resources and Environment, Thailand
Opening Remarks
Stephen Groff, Vice President, ADB
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Balancing Economic Growth and Environmental Sustainability

WelCOme RemaRks
by
Craig Steffensen,
Country Director,
ADB Thailand Resident Mission
at the
Gms 2020 International Conference: Balancing
economic Growth with environmental sustainability
20 February 2012
Swasdee Khrap, Good Morning!
I am Craig Steffensen, Country Director for the Asian
Development Bank based here in Bangkok.
And welcome to this 2-day gathering to discuss the Food-
Water-Energy nexus.
Nowhere was this nexus so clear as in Thailand recently.
Exceptionally heavy rains in August and September 2011,
accompanied by four tropical storms caused Thailand’s
worst flooding since 1942.
The death toll exceeded 700 persons and 4 million
households or about 13 million people in 64 of
Thailand’s 77 provinces were affected by flood waters,
with widespread damage and loss to homes, factories,
businesses, transport and energy infrastructure, social
service facilities, and crops and livestock.
The total economic damages and losses caused by the
floods are estimated at about $45 billion, which, I think,
makes it the fifth most costly national disaster on record.
It is probably not an exaggeration to say that those who
were affected by the floods, myself included, know first
hand the interrelationship between food, water and energy.
Bangkok, and most parts of Thailand, faced severe
shortages of all three for months on end due to factory
and business closures and supply chains being cut off by
flood waters and energy outages. I think all of us remember
the days when it was pretty hard to find a bottle of water
or our favorite orange juice on supermarket shelves.
Thailand’s agriculture took a big hit in 2011 because so
much farmland was affected.
So perhaps, the most important take away message from the
2011 flood is the importance of inter-sectoral coordination
to mitigate future disasters. Water management, in
particular, requires a sound understanding of the big
picture – requirements for hydropower, agriculture, industry
and domestic consumption and the need to maintain the
integrity of natural systems that buffer the extreme effects
of fluctuating weather patterns are critical.
The theme of this Conference: Balancing Economic
Growth with Environmental Sustainability is very pertinent
therefore to Thailand and to the Greater Mekong Subregion.
With these words, Welcome!
I would now like to call upon the Deputy Permanent
Secretary of the Ministry on Natural Resources and
Environment, Khun Mingquan Wichayarangsaridh, to
inaugurate the GMS 2020 Conference.
Thank you very much.
Welcome Remarks
3

4
Balancing Economic Growth and Environmental Sustainability

InauGuRal speeCh
by
Mrs Mingquan Wichayarangsaridh
Deputy Permanent Secretary
Ministry of Natural Resources and Environment,
Thailand
at
Gms 2020 International Conference: Balancing
economic Growth and environmental sustainability
20 February 2012
Royal Orchid Sheraton Hotel & Tower, Bangkok
Swasdee Kha,
Honorable Vice Minister Dr Parisak of Lao PDR,
Your Excellencies from Cambodia, People’s Republic of
China, Lao PDR, Myanmar and Viet Nam,
Mr Stephen Groff, Vice President of the Asian Development
Bank, distinguished guests, ladies and gentlemen.
It gives me a great pleasure today to inaugurate the
International Conference of the Greater Mekong Subregion
– GMS 2020 on behalf of the Minister of Natural Resources
and Environment who is now on other mission. Although he
is unable to attend this conference, he sends his warmest
greetings to us all and wishes this Conference a success.
The timing of the GMS 2020 International Conference is
indeed very appropriate after Thailand recovers from the
devastating floods of 2011. The theme of the Conference
“Food-Water-Energy nexus” is highly relevant and critically
important at this juncture of development and growth in the
countries of the GMS.
Excellencies,
Ladies and gentlemen,
Most developing countries enjoyed a relatively high level of
economic growth over the last three decades accompanied
by rapid industrialization, urbanization, and agricultural
intensification. This growth relied extensively on the
country’s abundant and diverse natural resources. It has
led to the degradation of land and water quality, caused the
loss of natural habitats, and generated increasing levels
of air and water pollution.
The current trends of natural resources declining and
environmental degradation show that there are persistent
implementation gaps, according to the commitments of
the landmark Conference of 1972, the Earth Summit in
Inaugural Speech
1992 and the World Summit on Sustainable Development
in 2002. Many commitments made by the international
community have not been fully met at the time when
the world is still suffering from the repercussion of
multiple crises. The GMS is more or less threaten by the
aforementioned crises.
However, since 1992, the six GMS countries; Cambodia,
People’s Republic of China, Lao PDR, Myanmar, Thailand,
and Viet Nam have agreed to work together on development
of linked system of infrastructure and trade designed to
support economic development goals. Moreover, the GMS
countries have a Strategic Development Framework (SDF)
to cooperate in major areas, one of which is to protect
the environment and promote sustainable use of shared
natural resources.
Excellencies,
Ladies and gentlemen,
In Thailand, more than three hundred villages face high
flood risk each year; droughts, which occur annually can
cause great damage to agriculture and industry. Nearly
one third of the country’s land area is classified as medium
or high risk from drought. Of particular concern is water
scarcity, which occurs against a backdrop of low availability,
high pollution, and increased per capita consumption.
Thailand has 25 river basins with 254 sub-basins.
Rainwater is one of the most important sources of water.
Data, however, suggests that Thailand’s per capita water
resource is less than other countries in the region and
one third of it flows into the Mekong. The West basins
have the largest storage capacity with the smallest total
irrigation area. Existing water storage is about 37 percent
of the annual runoff, on average, but in fact useable water
is less. There is tremendous pressure on Thailand’s water
resources.
Excellencies,
Ladies and gentlemen,
Economic and population growth does not only increase
demand for water but also induces water pollution. Water
demand is expected to increase by 35% over the next
two decades. It is estimated that an increase in Thailand’s
population from 62 million in 2004 to 73 million by 2024
would lead to an increase in average water demand from
the present 57,000 million cubic meters to 77,000 million
cubic meters over the next two decades.
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Balancing Economic Growth and Environmental Sustainability
The meeting of increased future water needs will require
effective management and cooperation of stakeholders,
development of additional water storage capacities,
increasing efficiencies in water use, reducing waste and
system losses as well as establishing legal and regulatory
aspects that enjoy wide acceptance and compliance by
water users.
We also wish to avoid the future disproportionately negative
impacts from man made or natural disasters. Construction
of uncontrolled settlements in low lying areas, conversion
of wetlands and riverine areas previously used as a natural
flood water sinks, weak drainage control and flood water
management in the peak rainy season, and incidence of
heavy rainfall led to the most terrible flood disaster that
ever happened throughout Thailand in the last fifty years.
It affected around 13 million people across 64 provinces
and is estimated at the cost of 45 billion US$.
Moreover, rapid industrial expansion and population
growth as well as the linkage between food-water-energy
nexus becomes even critical resulting in a need to reassess
our development paradigms. Industrialization also
brings with it sharply increasing pollution levels (e.g. solid
and hazardous waste, air, noise, and water), which can
cause major health impacts.
Excellencies,
Ladies and gentlemen,
Thailand has recognized the potential of economic
development of the adverse social and environmental
effects both of which are avoidable. In response, the
Government and the Thai people have launched new
initiatives to improve air and water quality, reforest
degraded land, adopt energy efficient technologies, invest
in pollution abatement schemes, and reduce Greenhouse
Gas emissions to work towards global targets of climate
change mitigation.
In addition, Thailand sincerely believes that unsustainable
development could be reversed in the future by taking
actions on green growth. We have included the
environmental issue into the National Economic and
Social Development Plan since 1997. The Tenth National
Economic and Social Development Plan (2007 – 2011)
pursued the royal direction of His Majesty the King’s
Sufficiency Economy Philosophy. The philosophy
emphasizes the balance between the limitations of natural
resources and environment, which should be conserved
and used safely and wisely without adversely affecting the
needs of the present and future generations. The Eleventh
National Economic and Social Development Plan, which
begins in 2012 highlights the importance of green economy,
whereby setting ambitious goals and targets to decouple
economic growth from environmental degradation in every
sector of this national development plan.
Excellencies,
Ladies and gentlemen,
As you may know that the United Nations Conference on
Sustainable Development or “RIO+20” will be held in Rio de
Janeiro, Brazil, on June 20-22, 2012. We wish this meeting
an important stepping stone to echo our regional needs and
means of implementation to the international community.
We support a “green economy” as well as encourage
cooperation under the “green economy” issue, such as
information or knowledge sharing, technology transfer, and
human resource development in the subregion.
Let me conclude, it is important that the sustainable
development is for the future of sustainability of natural
resources and environment as well as the people’s
livelihood and well-being in the subregion. In the midst of
threat of climate change and uncertain economy, we must
have faith and confidence in ourselves and in our destiny.
Our subregion, linked by the mighty flow of the Mekong
River, is richly endowed with natural resources and
economic potential. Thailand is delighted to strengthen
the cooperation and to work with you all, with ADB,
development partners and other organizations, to achieve
our common vision; that is, to free people from poverty
and provide sustainable development opportunities for all.
Excellencies,
Ladies and gentlemen,
Thailand welcomes the GMS 2020 - balancing economic
growth with environmental sustainability and appreciates
this big gathering of GMS country representatives, experts
and specialists in food, water, climate change and energy,
development partners, civil societies, academia, and
development partners. The Conference gives planners
and policymakers an opportunity to listen attentively
and act on the recommendations speedily to meet the
challenges of this decade and beyond.
I wish you all a very successful Conference and hope that
all of you take this opportunity to enjoy staying in Bangkok.
With these words, I now declare the Conference open.
Thank you.

OpenInG RemaRks
by
Stephen P. Groff,
Vice President (Operations 2),
Asian Development Bank
Gms 2020: Balancing economic Growth and
environmental sustainability International
Conference
Honorable Vice Minister(s),
Your excellencies, distinguished guests, colleagues, ladies
and gentlemen.
Good morning to you all.
Let me start by first thanking our host country Thailand,
and particularly Khun Mingquan Wichayarangsaridh of
the Ministry of Natural Resources and Environment for
joining me in inaugurating this conference, which assumes
special significance in the wake of the unfortunate natural
resource disasters Thailand and many GMS countries
faced during 2011.
Ladies and gentlemen, I am honored to join, and speak
to, this distinguished gathering of Greater Mekong
Subregion (GMS) policy makers, sustainable development
researchers, practitioners and development partners.
We have gathered here to take an objective look at the
impressive economic prosperity of GMS over the last
decade. More importantly, we are here to deliberate
upon the economic development and environmental
sustainability challenges GMS countries will face during
the coming decade. I believe this GMS2020 conference
addresses a critical question confronting not just the Asian
but the global development community, namely, how best
to bring about a balanced convergence between economic
growth and environmental sustainability?
Equally important and opportune is the timing of this
conference. GMS leaders at the December 2011 Summit
in Myanmar endorsed the GMS Strategic Framework
for 2012-2022. This will guide ADB’s regional economic
cooperation and integration agenda in the GMS for the
next decade, but its effective implementation requires
state-of-the-art developmental knowledge and know-how.
This has to be done as part of the global economic dynamic
involving a restructuring and rebalancing of the global
economy– indeed, robust growth and increasing economic
Opening Remarks
sophistication in Asia has shifted the axis on which the global
economy turns – deeper regional trade and economic and
political relationships can unlock the most severe constraints
to growth and can help leverage the construction of a more
sustainable and inclusive pattern of development. GMS is
strategically placed to capture these economic development
opportunities. It is in this context I see the conference
deliberations and outcomes to be of special relevance as
it should enable us to design and deploy knowledge based
development strategies and investments.
Let me briefly refresh our memories of what the GMS
countries have achieved so far. It is an impressive story.
Guided by the now famous GMS brand, articulated
through the 3C’s - enhancing ‘connectivity’, increasing
‘competitiveness’, and achieving a greater sense of
‘community,’ the GMS has enjoyed a period of sustained
and buoyant economic growth over the last decade
averaging 6.5% GDP growth, and as illustrated by the
countries’ resilience during the recent financial and
economic crisis, this growth is based on strong foundations
- whether expressed in terms of income, consumption or
through composite measures such as the UN’s Human
Development Index (HDI). In my view, this level of growth
and prosperity would not have materialized independent
of the GMS economic cooperation program launched
by farsighted leaders of the subregion in 1992. Over the
last decade, the GMS economic cooperation program
has mobilized over $14 billion in completed and planned
investments. It has facilitated and delivered multi-modal
transport systems, anchored through transport/economic
corridors, energy interconnections, and investments
in the information superhighway laying the basis for
expanded physical connectivity, enhanced production
and employment opportunities, and improved livelihoods.
The new GMS Strategic Framework (2012-2022) focuses
on developing “software” to complement the “hardware”
achievements. Future development of these economic
corridors will depend on deepening and widening of
these geographic pathways to align them to the changes
in technology demands and trade flows within the region.
These “second generation” investments will need to
be informed by sound assessment of environmental
and natural resources. Optimal and efficient use of
environmental and natural resources will ultimately
underpin the “competitiveness” of the economic corridors.
All countries in the GMS now face increased competition
for resources and rising costs. Growing resource demands
worldwide as well as in the GMS are encountering a
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Balancing Economic Growth and Environmental Sustainability
growing set of material and ecological constraints – recent
volatility in commodity markets and “spikes” in food and
energy prices indicates what the future might hold.
Food demand from the Mekong River Basin, for instance,
is projected to increase by 20 to 50 percent by 2030.
Demands on use of water for food and energy production,
domestic and industrial use, is exponentially increasing
while ground and surface water sources are depleting and
degrading. The management of the food-water-energy
nexus will be the most critical challenge of this decade. The
challenges are not only technical in nature, but will also
call into question the adequacy of our current resource
governance, management and fiscal regimes. Climate
change only adds to this already complex and complicated
policy and practice conundrum.
Sustainability in the 21st century requires investments in
smart development – getting more food and industrial output
from the same amount of material and energy inputs. It
makes business and ecological sense. Stimulating growth
through green technology and investments can provide
the financing, innovation platform and political attention to
begin the process of effecting this transformation – with the
emphasis on making growth processes resource-efficient,
cleaner, and more resilient without necessarily slowing
them. There are existing technologies and practices which
need to be scaled up and deployed at a larger scale. For
example, precision agriculture, efficient water supply and
re-use, and clean (renewable) energy generation fuels and
other frontier technologies are already part of the “green”
growth agenda in the region awaiting appropriate policy
signals and regulatory incentives for “take-off.”
Improvement of fuel efficiency in freight fleets moving
across the region would help reduce the cost of logistics,
simultaneously reducing carbon intensity of regional
and global supply chains and increasing their business
performance; in the energy sector, shifting to renewable
energy and demand side management, including improving
the efficiency of electricity generation and distribution, will
help reduce the vulnerability of the region to fuel price
fluctuations; in the agriculture sector, the focus could be
on moving to less water intensive crops, improved use of
biotechnology with lower agro-chemical dependence, and
intensification rather than expansion. Urban centers need
to be made cleaner and safer by adopting resource saving
measures such as rain water harvesting, energy efficiency
of buildings, and reducing, reusing and recycling wastes.
It is worth noting here that People’s Republic of China
(PRC) is already “walking the talk” in the region - the
PRC’s fast-growing labor force in renewable-energy
generation, is currently estimated at more than 1.1 million
based on investments of over $17 billion - part of a $468
billion investment in greening key sectors by 2015.
ADB has also initiated ambitious, catalytic interventions
to promote transformational change in clean energy,
sustainable energy, integrated natural and water resource
management, sustainable transport and climate resilient
urban development. Environmentally sustainable growth
is a key development agenda - in 2010, for example, ADB
approved 50 projects with environmental sustainability,
totaling about $4.8 billion – representing a 52% increase
over 2009 in the number of projects.
As I mentioned earlier, this Conference gives us an
opportunity to deliberate upon how the food-water-energy
nexus should and can drive future economic growth in the
GMS – which is inclusive and does not compromise our
ecological infrastructure for current and future growth. The
Conference provides us a unique opportunity to take stock
of the developmental achievements of the past decade
focusing on what lessons of success as well as failure we
can learn from this journey. I believe our deliberations will
bring out how critical water has been and will be to our
food, energy and environmental security; we will notice
that economic prosperity of the past decade has come at
a high environmental cost, and this growth pathway is not
sustainable. Over the next two days you will collectively take
a hard look at our current food, water and energy situation
and recommend actions for the future. I am also particularly
pleased that we have private sector representatives
to showcase technologies and innovations that are
environmentally friendly and promote resource efficiencies
and reduce wastage. Without private sector participation our
assessments and agenda for the future will not be realized.
We need to chart a pro-poor pro-environment roadmap to
2020. The challenge is to increase efficiencies in resource
use, restore and recapitalize the natural resource base,
safeguard environmental quality while creating jobs
and sustaining economic growth. ADB stands ready to
work with GMS countries and development partners to
shape a roadmap catalyzing investments for a “greener”
development trajectory in the GMS.
I am confident that this conference will provide us insights,
and actionable evidence and knowledge for mapping a
sustainable and resilient economic future for the GMS.
I wish you all a very successful conference. Thank you.