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ASEAN–ADB Cooperation Toward the Asean Community: Advancing Integration and Sustainable Development in Southeast Asia

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ASEAN–ADB Cooperation toward the ASEAN Community Advancing Integration and Sustainable Development in Southeast Asia For the past 5 decades, the Association of Southeast Asian Nations (ASEAN) and the Asian Development Bank (ADB) have both supported poverty reduction, sustainable development, and regional cooperation and integration in Southeast Asia. This publication provides an overview of cooperation between ADB ASEAN–ADB COOPERATION and ASEAN, and how it has contributed to a more connected, competitive, and integrated region. Moving forward, the ASEAN–ADB partnership will continue to support greater development and prosperity in Southeast Asia to enhance the lives of all the region’s people. TOWARD THE ASEAN COMMUNITY Advancing Integration and Sustainable About the Asian Development Bank Development in Southeast Asia ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to the majority of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org ASEAN–ADB COOPERATION TOWARD THE ASEAN COMMUNITY Advancing Integration and Sustainable Development in Southeast Asia April 2016 Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org; openaccess.adb.org [email protected]; [email protected] Some rights reserved. Published in 2016. Printed in the Philippines Publication Stock No. ARM167941 The views expressed in this publication 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. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of said license as well as the Terms of Use of the ADB Open Access Repository at openaccess.adb.org/termsofuse The CC license does not apply to non-ADB copyright materials in this publication. Note: In this publication, “$” refers to US dollars. CONTENTS Tables, Figures, Boxes, and Map iv Foreword v Acknowledgments vi Abbreviations vii 1. Introduction 1 2. The Role of ADB in ASEAN Integration 3 Financing and Leveraging Resources 3 Generating, Sharing, and Applying Knowledge 5 3. ASEAN-ADB Cooperation at the Regional, Subregional, and National Levels 6 Direct Assistance to ASEAN 6 Support to ASEAN Integration through Subregional Programs 6 Support to ASEAN Integration through Country Programs 10 4. Strategic Areas of ASEAN-ADB Cooperation 12 Physical Connectivity: Cross-Border Infrastructure 12 Trade and Transport Facilitation 18 Monetary and Financial Cooperation and Integration 20 Social Development 23 Agriculture and Food Security 26 Environmental Sustainability 27 5. ASEAN-ADB Partnership toward the ASEAN Community Vision 2025 30 Appendixes 1. Scope and Areas of Cooperation under Memorandums of Understanding between ASEAN and ADB 34 2. Selected Knowledge Products of ADB and ADBI Involving RCI in Southeast Asia and Its Subregions 35 iii Tables, Figures, Boxes, and Map Tables 1 Examples of ADB-Funded National Projects Supporting ASEAN Integration (2006–2015) 11 2 Selected ADB-Financed Transport Connectivity Projects in the GMS 13 Figures 1 ADB Financial Support to ASEAN Integration, 2006-Q3 2015 4 2 Strategic Areas of Cooperation between ASEAN and ADB 12 Boxes 1 BIMP-EAGA, GMS, and IMT-GT Cooperation Programs 7 2. The Southern Coastal Corridor Project 14 3 The Noi Bai-Lao Cai Expressway 14 4 West Kalimantan-Sarawak Power Interconnection Project 17 5 Single-Stop Inspection at the Lao Bao (Viet Nam)-Dansavanh (the Lao People’s Democratic Republic) Border Crossing 19 6 ASEAN Corporate Governance Scorecard 22 7 Phnom Penh Plan for Development Management 24 8 Achievements of the GMS Biodiversity Conservation Corridor Initiative 28 Map ASEAN, BIMP-EAGA, GMS, and IMT-GT 8 iv FOREWORD The Asian Development Bank (ADB) and the Association of Southeast Asian Nations (ASEAN) are bound by shared goals and vision in pursuit of integration and sustainable development across the ASEAN region. The decision by the ASEAN Leaders in 2003 to establish an ASEAN Community consisting of the ASEAN Political-Security Community, ASEAN Economic Community, and ASEAN Socio- Cultural Community, as well as the decision in 2007 to realize the ASEAN Community by 2015, have enhanced cooperation between ASEAN and ADB. The ADB–ASEAN partnership has spanned a wide range of areas, including monetary and financial cooperation, cross-border infrastructure development, trade and transport facilitation, social development, agriculture and food security, and environmental sustainability. It has also involved various modalities, such as information sharing, policy dialogue, capacity building, institutional strengthening, project financing, and resource leveraging, which have contributed to the building of the ASEAN Community. This publication helps to raise awareness of the nature and scope of ASEAN–ADB cooperation for many stakeholders—ASEAN Member States; ASEAN organs and bodies; ASEAN Dialogue Partners; ADB and other partner development agencies; and the general public. With ADB and ASEAN commemorating their 50th anniversaries in 2016 and 2017, respectively, we look forward to broader and deeper ASEAN–ADB cooperation, particularly in support of ASEAN’s continued community building and consolidation. Takehiko Nakao Le Luong Minh President Secretary General Asian Development Bank ASEAN Secretariat v ACKNOWLEDGMENTS A team in the Regional Cooperation and Operations Coordination Division (SERC), Southeast Asia Department (SERD) at the Asian Development Bank coordinated the preparation of this publication. Alfredo Perdiguero, principal regional cooperation specialist, SERC, led the study, with overall guidance from James P. Lynch (former Director, SERC). Filologo Pante, Jr. was the consultant responsible for the preparation of the report. Jason Rush provided technical guidance. Carolina Guina was the peer reviewer, and Jay Maclean edited the document. Raquel Tabanao and Randy Tepace provided technical and administrative support. Several ADB staff and consultants contributed to the publication, including: A. Noy Siackhachanh, Abraham Villanueva, Anna Sherwood, Anupma Jain, Arghya Sinha Roy, Arjun Goswami, Avonechith Siackhachanh, Ayako Inagaki, Chong Chi Nai, Cuong Minh Nguyen, Cynthia Hidalgo, Duncan McLeod, Duy-Thanh Bui, Jay Menon, Jeffrey Miller, Jiangfeng Zhang, Jin Cyhn, Jordanna Queddeng, Kanya Sasradipoera, Kelly Bird, Lei Lei Song, Marissa Garcia, Marzia Mongiorgi-Lorenzo, Mohd Sani Mohd Ismail, Neil Britton, Noritaka Akamatsu, Pamela Asis-Layugan, Pavit Ramachandran, Pinsuda Alexander, Rehan Kausar, Richard Supangan, Sarah Cueno, Shunichi Hinata, Sonia Chand Sandhu, Srinivasan Palle Venkata, Suj Ronquillo, Sununtar Setboonsarng, Tatiana Gallego-Lizon, Wolfgang Kubitzki, and Yu-Shu Feng. The team conducted two consultation missions to the ASEAN Secretariat in Jakarta, Indonesia to exchange information on various aspects of ASEAN-ADB cooperation. The support and cooperation of the ASEAN Secretariat is gratefully acknowledged. The publication greatly benefited from comments provided by the relevant divisions of the ASEAN Secretariat, namely the Initiative for ASEAN Integration and Narrowing the Development Gap (IAI&NDG), Infrastructure, Connectivity, Trade and Facilitation, Agriculture Industries and Natural Resources, Finance Integration, Health and Communicable Diseases, and Disaster Management and Humanitarian Assistance The Printing Services Unit of ADB’s Office of Administrative Services and the Publishing Team of ADB’s Department of External Relations provided support for printing and publishing. vi ABBREVIATIONS ABMI Asian Bond Markets Initiative ACMF ASEAN Capital Market Forum ADB Asian Development Bank ADBI Asian Development Bank Institute AEC ASEAN Economic Community AFMM ASEAN Finance Ministers’ Meeting AHN ASEAN Highway Network AIF ASEAN Infrastructure Fund APG ASEAN Power Grid APTERR ASEAN+3 Emergency Rice Reserve ASCC ASEAN Socio-Cultural Community ASEAN Association of Southeast Asian Nations ASEAN+3 ASEAN member states plus the PRC, Japan, and the Republic of Korea ASEC ASEAN Secretariat ASP ASEAN Surveillance Process BCI Biodiversity Conservation Corridor Initiative BIMP-EAGA Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area CBTA Cross-Border Transport Agreement CDC communicable disease control CEP Core Environment Program CGIF Credit Guarantee and Investment Facility CIQS customs, immigration, quarantine, and security services CLMV Cambodia,
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