By Song Qingrun

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Lancang-Mekong Cooperation New Standard in Regional Coordination

By Song Qingrun

Premier Li Keqiang and other LM6 leaders in a “Family Photo”

Known as the “Oriental Danube”， the Lancang-Mekong River snakes 4，880 km through Southeast Asia， making it the longest and most important river in Southeast Asia. It originates in the Tanggula Mountains in China’s Qinghai Province before winding its way through Myanmar， Laos， thailand， Cambodia and Vietnam. Each of the six countries that fall along the river’s path （known as the LM6 countries） depend on it as an economic driving force as well as a means of transportation. the river’s abundant resources must be shared and protected， which makes regional cooperation vital.

The Thai Government in 2012 first raised the idea of enhancing Lancang-Mekong sub-regional cooperation. China responded with great interest. At the 17th China-ASEAN Summit in November 2014，Chinese Premier Li Keqiang proposed the establishment of the Lancang-Mekong cooperation mechanism. Since then， senior officials from each of the LM6 countrieshave held meetings to share their views on how such cooperation should proceed.

The first Lancang-Mekong Cooperation（LMC） foreign ministers’ meeting was held in Jinghong in Southwestern China’s Yunnan Province on November 12，2015. The LMC framework was officially launched ather talks among LM6 officials in Jinghong.

Highlights and Significance

This first cooperation mechanism was jointly established by each of the LM6 countries， making it conducive to economic development， an area of particular importance to developing nations in Southeast Asia.

Compared to the Mekong River sub-regional cooperation mechanisms previously established， the LMC covers all-round cooperation in 11 key areas: connectivity，boosting production capacity， establishing economic zones in border areas， sustainable water resources management and utilization， disaster prevention and mitigation，agricultural development and poverty reduction， environmental protection， energy，tourism， cultural exchanges and combating international crime as well as maintaining regional security.

Economic and social development in each of the LM6 countries have encountered significant challenges. LMC gives each of the LM6 an opportunity to work together， particularly in economic development， making the synergy of the six countries much greater than the mere addup of six individual countries. LMC is set to help each country withstand international pressure from outside the region， promote sustainable development and open up new ways to boost regional development.

Development is the priority of LMC. Its first concern is the well-being of those who live in the region. It hopes to improve people’s lives.

At the first LMC Leaders’ Meeting held in Sanya of Southern China’s Hainan Province in March， Premier Li said the ultimate goal of LMC is a better life for the people of each of the LM6 countries. Cooperation must be focused on clearly planned， sensible projects and deliver tangible benefits to those living in the region.

For example， the LMC’s focus on poverty alleviation and agricultural development directly benefit farmers in the region. Much of the population in the Mekong Delta live in rural areas， making agriculture a crucial area of development in the region. Plans are in place to control floods and provide drought relief， as well as dredge waterways along the Mekong River， promote regional energy cooperation and conserve water， all of which stand to directly benefit the region’s rural population， who will have greater access to electricity， cleaner drinking water and greater resistance to natural disasters.

LM6 countries should further discuss the establishment of economic zones and industrial parks in the border areas，boosting cross-border connectivity. Such measures would increase mobility and even combat transnational crimes in the region，as the border regions will become safer with the improvement in economic conditions. In turn， this kind of economic development will lead to boosts in transnational trade，tourism， business activity and increased enrolment in schools.

Since its establishment， the LMC has promoted openness as well as inclusiveness. It falls within the priorities established by the ASEAN Community and ASEAN-China cooperation efforts. It is also complementary to several existing sub-regional cooperation mechanisms. LMC initiatives welcome the support of other countries both within and outside the region that can contribute to the development among LM6 countries， including international organizations that can serve to increase the speed and efficiency of development.

LMC is crucial to ASEAN and East Asian regional cooperation. The three pillars of cooperation identified by LMC（political and security issues， sustainable economic development and social， cultural and people-to-people exchanges） are in line with the established ASEAN Community priorities of development， which will lead to closer interaction between China and ASEAN countries and organizations.

As the LMC will be jointly developed，it is set to meet the development priorities of each of the LM6 countries. China is the largest economy among the six. therefore， it is expected to shoulder more responsibility in terms of putting forward the resources required in mechanism establishment. That gives China an opportunity to demonstrate itself as a responsible regional power， which is in China’s interest. A large contribution from China is in the interest of the rest of the region， too. Its pragmatic approach to development could be of huge benefit， enhancing mutual trust and clearing up doubts with the neighboring countries， some of whom are weary of China’s rise as a global power. Clearing up misunderstandings will also lead to closer China-ASEAN relations.

Premier Li said the Chinese government plans to set up a 10 billion yuan （US$1.5 billion） concessional loan and a US$10 billion credit line， including a US$5 billion preferential export buyers’ credit and a US$5 billion special loan for production capacity cooperation efforts， which will focus on infrastructure in the sub-region. China is also set to provide infrastructure support through platforms like the Asian Infrastructure Investment Bank （AIIB） and the Silk Road Fund. Such large investments will do much to close the development gap between the five ASEAN countries that lie within the Mekong Delta and their more developed neighbors （Singapore， Indonesia，Malaysia and Brunei）. A more balanced and well-developed ASEAN would play a key role in Asian development as a whole.

Existing and Potential Problems

The LMC has identified nearly 100 early harvest projects focusing on the areas of connectivity， production capacity， cross-border economic cooperation，water resources， agriculture and povertyreduction. Joint working groups will be established to make specific plans for each project， for the best way forward.

In October 2015， this author traveled to LM6 countries with a delegation of Lancang-Mekong region experts and reporters， organized by the Chinese Ministry of Foreign Affairs. The experience convinced me strongly that patience is crucial in the implementation of LMC projects. It will take time to implement projects identified on the LMC blueprint and requires step-by-step planning and constant communication. Leaders need to be certain that their projects are in the interest of each of the LM6 countries， and disagreements must be handled properly.

The Sanya Declaration， signed by LM6 officials during the meeting in Hainan Province in March， states that LMC initiatives need to focus on infrastructure， at least in the early stages. Projects must be part of a focus to improve the region’s rivers， roads，railways， waterways， ports and air links.

But such projects do not come easily. It is difficult to identify which projects will prove the most cost effective， as it usually takes years for them to be completed.therefore， these transnational connectivity projects need financial support from each of the LM6 countries so as to share the burden of cost. the interests of citizens and companies as well as governments should be considered and each project can expect various twists and turns， particularly in transnational highway and rail projects，which tend to be the most sensitive.

Prior to starting these projects， consultation is key. Emphasis should be placed on the demand for such projects， how much each nation stands to benefit and affordability. Sensible financing can be difficult to negotiate. the speed of project development should be fairly balanced among each of the LM6 countries. With problems， each party involved should come to sensible agreements at a reasonable pace.

Knowledge of the LMC among LM6 countries remains insufficient. Citizens need to be educated on both the overall aim of the LMC and specific projects it is set to promote. Without proper understanding of the general public， it is impossible for large infrastructure projects to operate successfully.

Currently， societies in each of the five countries with territory in the Mekong Delta are developing quickly. A lack of education on projects could lead local media sources to sway public opinion against new，large infrastructure projects. To varying degrees， the media in the five Mekong Delta countries have a large influence over their governments， which could pose significant problems to major projects that involve the resettlement of citizens or extraction of particular resources. Therefore， governments and firms involved in regional projects need to be open and transparent about project details as well as benefits to the local population. A lack of transparency in the public and private sectors will lead to contentious misunderstandings and possible boycotts from the public. that could lead to a delay of the project or its cancellation.

In-depth feasibility studies must be carried out before major transnational projects get started. If a project is deemed feasible，communication with the local population will inform them that the project’s benefits outweigh its disadvantages， and that proper compensation will be given to those who face relocation or a negative impact on their livelihood. At the same time， protection of the environment and the traditional way of life are of equal importance. It is equally important for the modern society to enjoy swith economic development as it is for future generations to enjoy green mountains and rivers in a sustainable manner.

LMC’s intellectual support depends on the quality of its human resources， which makes the difference of success or failure of the cooperation projects. It is of utmost importance to recruit and train specialized personnel in the ditherent fields.

China has long prioritized people-to-people and cultural exchanges among Mekong River countries in the fields of education， science and technology， culture and tourism. Young people in particular should be seen as candidates for such exchanges，forging mutual understanding and trust for future generations.

China is also set to strengthen cooperation in personnel training. Although plans are in their early stages， it is possible that over the next three years， China will offer an annual amount of 18，000 government scholarships and 5，000 training opportunities for students and trainees in the Mekong countries to study in China. The Chinese government is even exploring the feasibility of opening vocational education and training centers in the Mekong countries.

This author believes that on the basis of the current support of China， the LM6 countries should explore joint training of young professionals in the much needed fields. those who can speak more than one Lancang-Mekong languages with a good understanding of the local cultures， customs and business environment are of particular value. the training of specialized personnel will add to the chances of success of the cooperation projects.

This specialized training is of particular importance to China， as in the past， Chinese companies have encountered significant obstacles in their projects due to limited knowledge of the language， culture and law of the host countries， which led to large losses as well as bad blood between the firms involved and local populations. Lack of familiarity with local culture has been a bottleneck in the region for years， leading to problems relating to cross-border trade and cross-border cooperation.

The Sanya Declaration encourages exchanges among media outlets， think tanks，citizens of all ages and the establishment of a media forum among LM6 countries. At this point in regional development， media outlets， think tanks and particularly young people among LM6 countries tend to have a better understanding of the West than they do of each other. That has to change. As public opinion othen determines the success of a project， LM6 countries could establish a think tank focusing on the LMC in an ethort to examine the LMC’s contribution in terms of the entire region， rather than individual countries alone. there should also be ethorts to encourage language study among students in LM6 countries to establish a more collective climate of cooperation.

LMC， a new bridge for China-ASEAN cooperation

The Origin of Life

For people in the region， the Lancang-Mekong River represents the origin of life. In recent years， the residents in the river basin have suthered frequent droughts and floods. The development and use of water resources have proved contentious with public opinion. As China is located upstream， Chinese policy has been plagued by the criticism of downstream critics， who speculated that dams built by China in the Lancang section of the river were intended to be used to manipulate the river’s water supply. However， the Chinese dams has had little impact on the river’s water supply. The Lancang exit into Myanmar accounts for only 13.5 percent of the average annual runoff downstream， meaning that most of the Mekong’s water does not originate in China.

The Mekong’s tendency to flood and drought doesn’t have to do with Chinese dams upstream. As a matter of fact， the region， China included， is a victim of climate change， especially the largely unpredictable impact of the El Ni?o phenomenon. What’s more， the flood and drought relief measures in the region remain incompetent. In recent years， China has done much to improve cooperation in terms of hydro-logical information sharing， waterway dredging and construction of water conservancy facilities in the Mekong region. Recently， at the request of the Vietnamese Government，China opened a sluice gate at Yunnan’s Jinghong Hydropower Station， allowing for increased water flow downstream. Premier Li has expressed the interest in setting up a joint water resources cooperation center， as well as an environmental protection cooperation center.

Pragmatic cooperation is vital to the future of the region. Smarter use of resources and improved public education would both do much to enhance the implementation of the projects in the region. Improved sharing of information will also help to identify the causes of frequent floods and droughts and offer insights on how to handle the disasters.

Fair and transparent media coverage would go a long way to staving off misconceptions about China， just as people-to-people and cultural exchanges will enhance cultural and societal understanding among neighbors.

About the author:

Song Qingrun is an Associate Professor of the Institute of South Asian， Southeast Asian and Oceanian Studies， China Institute of Contemporary International Relations（CICIR） .