The Mekong region has been in the news for controversial hydropower projects and security dilemmas between the upper and lower riparian countries. Despite these problems, the Mekong basin countries are making progress in terms of connectivity and economic development. The 4th Greater Mekong Subregion (GMS) Summit, held in Yangon, Myanmar from 19-20 December 2011 has set a new direction towards comprehensive cooperation, and expanding the region as a major economic zone. This article highlights the major issue discussed during the conference and explores the likely opportunities for the partner countries, as well as for regional neighbours. The GMS is the first comprehensive and multi-tiered cooperation engagement of China in the region. In this context how significant is China's membership in GMS and its influence over its GMS partners?

The GMS: An introduction
The GMS is a development project initiated by six countries - Cambodia, Laos, Myanmar, Thailand, Vietnam, and the Yunnan Province of China - with the assistance of the Asian Development Bank (ADB) in 1992 towards greater economic cooperation. In 2005, the Guangxi Zhuang Autonomous Region of China also became a member. Today, the GMS economic cooperation is considered a successful model of regional cooperation in Asia. The GMS was upgraded into summit level dialogues which have contributed significantly to local economic growth.

The recent GMS meeting held under the theme ‘Beyond 2012: Towards a New Decade of GMS Strategic Development Partnership’, concluded with the essentials of future development programmes under which a new strategic framework will be applied for the next decade, 2012 to 2022. The major focus issues will be infrastructure linkages, climate change, energy efficiency, food security, tourism and human resource development. A joint understanding was met to accelerate the establishment of a GMS Freight Transporters Association (FRETA), construction of GMS Information Superhighway, and GMS cargo transport to jointly develop new economic areas. For instance, the Thai PM Yingluck suggested areas such as Kanchanaburi-Dawei and Mae Sot-Myawaddy on the Thai-Myanmar border and Nakhon Phanom-Khammouan. The leaders also decided on reviewing the progress and accomplishments of the last two decades’ initiatives.

New Opportunities
First, the summit was held in Myanmar, which is trying to improve its image and deepen its relations with the international community. The success of this summit will contribute to expanding trade and investment in Myanmar, and also towards building a positive image of Myanmar as it contends to be the ASEAN Chair in 2014. In addition, it is going to host the 27th Southeast Asian Games in 2013 and the ASEAN Summit in 2014.

Second, the understanding met to involve all the stakeholders, regional players and the private sector will enhance sub-regional economic cooperation. One of the essential projects discussed during the summit was the economic corridor-development. The regional corridors development project in the GMS i.e. to transform the north-south route from China to Thailand and the east-west route from Myanmar to Vietnam will not only integrate the Mekong region but will also transform it into a major economic hub in the world. Fourth, the GMS countries reached an understanding on the facilitation of cross-border goods transportation which will reduce the cost of and obstacles to cross-border trading.

Third, intra-trade between the ASEAN countries and the two provinces of China has grown 25 per cent faster than world trade. The successful operation of the east-west and north-south economic corridors could further enhance bilateral trade to the tune of US$300 billion. ASEAN’s bilateral trade with China has grown 37 times over the past 20 years, increasing from US$80 billion in 2009 to US$292 billion in 2010. Trade and investments in the Southeast Asian countries has increased with China becoming the key investor. China’s priority is to develop Guangxi as a platform of China's cooperation with ASEAN and Yunnan as a gateway to reach to the heartland of Southeast Asia. The membership of Yunnan and Guangxi in GMS will play a key role towards meeting these ends.

What are the likely road blocks?
Despite the positives, questions were raised in the context of China’s Prime Minister Wen Jiabao not attending the meeting. Earlier in December 2010 it was reported that the premier would visit Myanmar on the occasion of the summit, which could have been his first visit to Myanmar since President U Thein Sein took office in March 2010. China active involvement in the GMS programme has demonstrated a greater development in the region. In such a scenario, is it a matter of great concern as portrayed in the media? The Chinese delegation was headed by the State Councilor Dai Bingguo who made an address entitled ‘Advance Mutually Beneficial Cooperation for a Brighter Future’. In the sidelines of the summit, he met the leaders of the member countries and spoke about strengthening cooperation, as well as Beijing’s policy of good neigbourliness.

Whether China’s active attempts to enhance cooperation with Southeast Asian countries should be seen as a policy of good neighborliness, or a policy to continue its influence and contend with other regional powers role in the region, remains an issue of debate. However, despite this concern, it is important to note that through the GMS programme and bilateral trade agreements the region has seen a steady economic growth in the last few years. As the next year marks the 20th anniversary of this cooperation, GMS will embrace and portray a successful model to learn from.