Myanmar's Cross-Border Economic Relations and Cooperation with the People's Republic of China and Thailand in the Greater Mekong Subregion, Journal of GMS Development Studies, Vol. 2, pp. 37-54

Abstract

In 1992, the Asian Development Bank initiated an economic cooperation program in the Greater Mekong Subregion (GMS) among the six riparian countries: Cambodia, Yunnan Province of the People’s Republic of China, the Lao People’s Democratic Republic, Myanmar, Thailand, and Viet Nam. Usually, regional economic cooperation in Asia focuses on the traditional approach of trade liberalization through reductions in tariffs. However, after the end of the Cold War, non-traditional forms emerged that focus on removing structural impediments to cross-border movements of goods, people, and services. This paper evaluates economic cooperation among these three GMS countries that share land borders in terms of cross-border trade, investment, tourism, and labor cooperation. In general, cooperation in trade (formal and informal), labor cooperation (legal and illegal), and tourism are impressive whereas cross-border investment is not. The positive impact of cross-border trade for Myanmar has been a rise in employment and income and improvements in security, transportation facilities, and the social sectors in border regions. On the other hand, political, social, and economic obstacles to cross-border economic cooperation persist. Nevertheless, the prospects for continued cooperation are good as the riparian neighbors have the political will and as all of them are committed to bilateral, subregional, regional, and international agreements for economic cooperation.