Quarterly newsletter with information on economic cooperation and integration in Asia from the GIZ programme Regional Economic Cooperation and Integration in Asia (RCI). In our newsletter we share information about our programme activities, and further input on the programme’s focus areas such as regionalism, trade facilitation and port cooperation in Asia.

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Information on economic cooperation and integration in Asia
From the GIZ Regional Economic Cooperation and Integration in Asia Programme
Issue No. 2
June 2013
Editorial
Dear readers,
Welcome back to the
second issue of our
Connect Asia
newsletter. As usual
this newsletter will
focus on recent
developments of our
programme’s work and
provide commentary
on recent trends in
Asian regionalism.
In April we launched
our study tour on maritime cooperation in the Pan-Beibu Gulf Region. Read
below for impressions from the fact finding mission to port operators and port
authorities. Another highlight was the ongoing involvement with the topic of social
implications of economic integration. A report on a workshop in Lao People’s
Democratic Republic informs you about our recent activities in this area. Last but
not least, we will give information on a recent Economic Policy Dialogue carried
out by GIZ RCI Programme and our partner, the China Institute for Reform and
Development (CIRD). With our support the event brought together experts from
Central-, Southeast and East Asia.
The second part of the newsletter brings you key news concerning recent
developments in Asian regionalism. Again we have compiled and commented a
comprehensive overview to share with you and encourage further discussion on
topics such as maritime economy, custom issues and development cooperation.
Also make sure, to check out dates on the right column to keep informed about
upcoming events.
We hope you enjoy reading this newsletter and we appreciate any
feedback and comments.
Please feel free to distribute this newsletter among your colleagues!
With the best wishes
Magnus C. M. Brod
Editor
Contents
Fact Finding Mission: Port Cooperation in Pan-Beibu Gulf
Workshop: Social Implications of Economic Integration
Conference: Economic Policy Dialogue among Asian Transition Countries
Recent Trends in Asian Regionalism
Dates and Events
27-28 June
25th European Customs Law
Conference
Bonn, Germany
European Forum for Foreign
Trade, Customs and Excise (EFA)
www.efa-muenster.de/....
2-11 July
WCO Knowledge Academy for
Customs and Trade
Brussels, Belgium
World Customs Organization
(WCO)
www.etouches.com/...
10-11 September
UNESCAP Asia-Pacific Trade
Facilitation Forum 2013
Beijing, PR China
United Nations Economic and
Social Commission for Asia and
the Pacific (UNESCAP)
www.unescap.org/...
18-20 September
WCO PICARD Conference
St. Petersburg, Russian
Federation
World Customs Organization
(WCO)
www.wcoomd.org/...
19-20 September
Triangular Cooperation & Regional
Integration Conference
Bangkok, Thailand
GIZ and Thailand International
Development Cooperation Agency
(TICA)
17-20 November
Urban Environmental Pollution
2013 Asian Edition Creating
Healthy, Liveable Cities
Beijing, PR China
Urban Environmental Pollution
(UEP)

2. Recent Trends in Asian Regionalism
Programme News
Port Cooperation
Identifying Port Cooperation Potential in Pan-Beibu Gulf
Region
April saw the kick-off of the study
project on potentials for port
cooperation in the Pan-Beibu Gulf
Region. From 15 to 26 April GIZ
RCI Programme staff
accompanied experts from
Hamburg Port Consulting (HPC)
and Hamburg Port Training
Institute (HPTI) on a fact finding
mission to Indonesia, the
Philippines, Viet Nam and the
People’s Republic of China.
The aim was to gather data for an analysis of cooperation potentials in the
diverse Pan-Beibu Region. Among the institutes visited were the ASEAN
Secretariat, the Indonesian Ministry of Transportation, the Philippines Port
Authority and several ports such as Haiphong, Viet Nam and Qinzhou, PR
China. Additional to data collection and conduction of interviews the consultants
visited port facilities to gain on-site knowledge of the development of maritime
industries in the region. The final study, which will identify potentials in this
specific field of the maritime economy, will be released later this year.
Contact: Magnus.Brod@giz.de
top
Regional Integration
Workshop on Social Implications of Economic Integration in
Lao PDR
The Lao National Commission for
the Advancement of Women
(LaoNCAW) and GIZ RCI
Programme joint hands to
organise a workshop that took a
close look at social implications of
economic integration in Vientiane,
Lao PDR, on 20 November 2012.
Whilst recognising numerous
advantages of Laos’ economic
integration with its neighbouring countries, the workshop targeted illegal migration
as one of the main challenges of this process. Despite the potential positive
effects of migration due to remittances and economic empowerment of women,
negative consequences such as abuse and human trafficking to which women
seem the most prone to, remain a significant problem.
The workshop brought together representatives of LaoNCAW, the Ministry of
Labour and Social Welfare, the Ministry of Public Security, the Ministry of Foreign
Affairs, the Ministry of Justice, Lao Trade Union as well as Lao Youth Union. Its
main purpose was to convey to these institutions a clearer understanding of their
specific role and to strengthen their capacities to effectively manage cross-
border migration. In two sessions the participants identified substantial
achievements but also remaining challenges. For these “hot topics”, such as the
inadequacy of skill development especially for women, the unsatisfactory
compliance with existing law by many firms, as well as the lack of awareness
about the downsides of labour migration in rural areas, concrete and feasible
policy measure were identified for further joint implementation by these
institutions.
A comprehensive documentation of the workshop which contains the event's
main findings and inputs is available for download: www.scribd.com/...
Contact Lisa.Brueckner@giz.de
www.uepconference.com/...
More on GIZ RCI Programme
Regional economic cooperation
and integration play an increasingly
important role in Asia’s economic
landscape. They help countries to
overcome the limitations of
domestic markets and foster
inclusive development, both by
boosting economic growth and by
providing the resources for pro-
poor policies. The GIZ RCI
Programme supports regional
stakeholders with the aim to
strengthen selected core
processes of regional economic
cooperation and integration and to
contribute to sustainable and
inclusive economic development in
the region.
Stay up to date with GIZ RCI
If you would like to continue
receiving regular updates on our
programme activities and further
insights on regionalisation
processes in Asia, please refer to
the GIZ Newsletter mainpage and
suscribe here.
Follow GIZ
FollowFollow
FollowFollow @rci_asia@rci_asia

3. top
Regional Knowledge Sharing
10th Economic Policy Dialogue among Asian Transition
Countries
From 27 to 28 April 2013, the RCI
Programme in cooperation with
the China Institute for Reform and
Development (CIRD) and the
Vietnamese Central Institute for
Economic Management (CIEM)
conducted the “10th Economic
Policy Dialogue among Asian
Transition Countries” on
“Development of Urbanization and
Inclusive Growth - Policies and
Systems for Population Urbanization” in Haikou, PR China.
While urbanization bears great potential for economic development for Asian
transition countries, problems have emerged which require a change of strategy
and therefore a profound discussion on suitable and sustainable policies. To
initiate such a dialogue and exchange of country-specific experiences, the
conference brought together senior policy makers, researchers as well as
practitioners from Southeast, East and Central Asian transition countries GIZ
RCI Programme contributed to the productivity of this dialogue through its
international network and its ability to mobilise renowned experts from across
Asia.
A comprehensive documentation of the conference is available with the event's
main findings and inputs. Access the document here: www.scribd.com/...
Contact: Lisa.Brueckner@giz.de
top
Recent Trends in Asian Regionalism
Shanghai International Shipping Institute (ISI)
Study finds: Chinese ports show great potential
The Shanghai International Shipping Institute (ISI) examined the development in
the Chinese port industry. According to the institute's analysis the recent year
saw a surge in potential vis-à-vis the global port landscape. This is especially
true for smaller and medium sized ports. SISI identifies a list of container
terminals with great potential; the list is topped by Chinese ports.
Download the paper from: www.sisi-smu.org/...
top
Asian Development Bank Institute (ADBI)
Interim Report: Connecting South Asia and Southeast Asia
ADBi's recent report highlights the importance of regional integration via
enhanced connectivity for South and Southeast Asia. The analysed process
comprises of both: physical infrastructure and public policies. Trade and
investment are covered as well as economic cooperation and regional
integration initiatives. Masahiro Kawai, ADBi Dean and CEO, elaborated on the
need for compensation policies to share the gains from greater integration more
equally. A role that can be played by regional initiatives such as GMS or SASEC;
institutions that provide a platform for bringing together the involved countries.
For more details about the report, please visit: www.adbi.org/...
World Bank
Single Window Systems: What We Have Learned
The duration of import and export procedures are seen as a major bottleneck for
the competitiveness of developing countries. As custom agencies are quiet
modern and developed, a recent piece by World Bank’s Gerard McLinden
highlights the role of other border management agencies such as quarantine or
standards. Establishing national Single Electronic Window systems (SEW) can
overcome those hurdles, but relies on the close cooperation between all involved
stakeholders. Examples from Lao PDR show that with careful planned

4. preparatory work, collective efforts can yield best results for developing an
SEW.
Access the full article here: www.blogs.worldbank.org/...
World Customs Organization
WCO PICARD conference to focus on the impact of customs
on regional integration initiatives
During the upcoming WCO PICARD (Partnerships in Customs Academic
Research and Development) conference in September this year the “impact of
customs on the development, implementation, and administration of regional
integration initiatives" will be among the three major topics. A focus of this year’s
conference will be regional trade agreements as means for further integration.
Examples will be drawn from the ASEAN economic community among others. A
part of the conference will address the impact of regional integration on customs,
and how customs can become an instrument in the development, management
and launching of such processes.
For more details on the conference, please visit: www.wcoomd.org/...
The Economist
Japan's closer cooperation with ASEAN about business and
diplomacy
Japan’s move towards closer ties with members of ASEAN can, as the author
suggests, be seen as a diplomatic and economic hedge against China. The
country has rapidly increased its presence in its allied states, such as Indonesia,
but even more so in states that lack longstanding ties with Japan. More
precisely, the new Japanese strategy includes a special economic zone in
Myanmar, infrastructure projects in Indonesia, manufacturing in Thailand but
also maritime assistance for Vietnam. Increased presence in ASEAN member
states thus seems to be promising in economic as well as diplomatic terms.
Access the full article here: www.economist.com/...
World Bank
Road Freight Transport: What Bilateral Agreements Tell Us
About Trade Openness
All supply chains are dependent on road freight transport at some point.
However, to reduce costs and thus increase competitiveness, endeavours for
trade facilitation must also encompass support to road transport services. Citing
the recent QuARTA study by the World Bank, Charles Kunaka argues for
greater regulatory effectiveness. This can be achieved by a focus on
transparency in procedures involved in cross border transport operations. A key
could be the provision of knowledge platforms for involved countries. This would
also address the underlying problem of bilateral agreements in contrast to
regional approaches to trade facilitation.
Access the full article at: www.blogs.worldbank.org/...
Asian Development Bank
Impacts of increasing integration: Challenges in trade, finance
and the environment
ADB’s lead economist Jayant Menon highlights the important role of cooperation,
i.e. dialogue and macroeconomic coordination in the region, for enhanced
regional integration in Asia. In a recent blog post (see www.blogs.adb.org/...) he
concludes that national reforms have to accompany regional processes.
Highlighting the increased convergence in Asia due to regional cooperation,
poorer countries are increasingly catching up. However, he points to inequalities
within the countries, thereby stressing to focus on social implications of regional
integration processes.
Access the full article here: www.blogs.adb.org/...
The Economist
China's expansionary port strategy about trade, not aggression
The enlargement of the port of Colombo in Sri Lanka by Chinese firms, as the
author argues, reflects a wider strategy to strengthen China's leading role in the
global shipping and port industry. Positive results can be seen across the globe,
with Piraeus, Greece, where Chinese investments have led to the creation of
jobs and to productivity increases, receiving most praise by experts.
Nevertheless, concerns remain, more pronounced in states which have
ambivalent relations with China such as India. The author however sees these

5. as unjustified, because China's actions do not seem to be triggered by
hegemonic ambitions but rather by a desire to create easier access to trade for
its western provinces.
Access the full article here: www.economist.com/...
German Federal Ministry for Economic Cooperation and Development
New BMZ Strategy Paper on Triangular Cooperation published
Triangular cooperation is "a practical link between the South-South and North-
South cooperation," concludes BMZ in a recent policy paper. As an additional
instrument triangular cooperation improves the effectiveness of measures,
promotes exchange and dialogue as well as fosters mutual learning processes.
At the same time, however, the increased coordination effort and the associated
high transaction costs are a challenge for German international development
cooperation. The same applies for ensuring the ownership of recipient countries
or cooperation with emerging economies. The strategy paper shows different
solutions for these challenges. Triangular cooperation is thus considered as a
promising instrument by BMZ, whose potential should be used in the future –
especially in Asia.
Access the full article here: www.bmz.de/... (PDF 2,4MB)
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In charge of this newsletter:
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Editor(s):
Magnus C. M. Brod, magnus.brod@giz.de

6. Contributors:
Lisa Brückner, lisa.brueckner@giz.de
Magnus C. M. Brod, magnus.brod@giz.de
Julia Langendorf, julia.langendorf@giz.de
Torben Niemeier, torben.niemeier@giz.de
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