Poverty alleviation and the social aspects of Border area development
Poverty alleviation and the social aspects of Border area development
The Silk Route • “The silk Road, or Silk Route, is a series of trade and cultu...
Poverty alleviation and the social aspects of Border area development
The Silk Route • “The silk Road, or Silk Route, is a series of trade and cultural transmission routes that were central to cultural interaction through regions of the Asian continent connecting the West and East by linking traders, merchants, pilgrims, monks, soldiers, nomads and urban dwellers from China to the Mediterranean sea during various periods of time.” Silk Road, Wikipedia
Map of old Silk Route
Attari-Wagah border • A border crossing turned into a prosperous hub of economic activity • Over the first year of operation – – – – – –
Exports grew by 122% Imports grew by 81% Increase in customs revenue by 166% One-third of the investment cost recovered Service tax was collected A labour earns approximately $400 per month
ICP at Attari-Wagah border
Construction and improvement of road • Beneficially impacts poverty through – Reduction of travel time – Improved market access – Greater access to health, educational and technical services
Construction and improvement of road • Beneficial impact results from – Improvement and diversification of crops cultivation – Higher wages – Higher prices of marketed products – Increased sales – Purchase of agricultural inputs at lower prices – Income gains through shifting to alternative and better livelihood options
Southern economic corridor • Increased trade between Cambodia and southern Vietnam • Trang Bang Industrial Park developed on the Vietnamese side of the border • Created jobs for local population
Trang Bang industrial park
Map: South-East Asia
East-West Corridor • Links Myanmar, Thailand, Lao PDR, Vietnam • Savannakhet transit province – Lao PDR along the EWC – Spurt in trade – FDI and joint venture increased – More than half in agriculture – Created work for villagers in silk and cotton production, weaving and handicrafts
Savannakhet transit province
Champasak road improvement project • Links Lao PDR with Thailand and Cambodia – Increased agricultural production – Increased sales – Higher income and improvement in living standards of agricultural households
Champasak Province: Lao- Thai border
Impact of Regional Integration • On the distribution of border poverty in the Greater Mekong Subregion – Border provinces emerged as hubs of economic activities – Investment increased – Alternative livelihood options opened up across border for the • Poor • Women headed households • Ethnic minorities
Greater Mekong Subregion
National Highway 2 in India • Rural stretches between Agra and Dhanbaad – A region of high incidence of rural poverty – Proximity to the NH2 resulted in gain in terms of poverty reduction
National Highway 2 (India)
Transport corridors • Generate economic activity, generate employment and reduce poverty • Lagging regions and landlocked countries get a boost from improved connectivity with regional and global markets • Inclusive trade and economic growth • Simulations suggest that the poorest regions benefit most
• Network externalities grow disproportionately with expansion of networks • Case for coordinating across regional frameworks to exploit greater synergies
Towards seamless connectivity across South and South-West Asia • Case for integrated transport corridors across the subregion to maximize network externalities • Facilitate intraregional trade • Major boost for landlocked countries in Central Asia and South Asia like Afghanistan, Bhutan, Nepal • Emerge as a hub of East-West trade • Each country becomes a hub for each other • Win-win for the whole region • Could be developed following a building block approach • Easier to mobilize resources for infrastructure and software development in a broader regional framework20
Potential Transport Corridors in South and South-West Asia • Two proposals: – Turkey-Iran-Pakistan-India-Bangladesh-Myanmar (TIPI-BM) Road Corridor along Asian Highway routes – Istanbul-Tehran-Islamabad—Delhi-Kolkota-Dhaka container train corridor along the Trans-Asian Railway routes
21
Turkey-Iran-Pakistan-India-Bangladesh-Myanmar (TIPIBM) Road Corridor along Asian Highway
Istanbul-Tehran-Islamabad-Delhi-Kolkota-Dhaka (ITIDKD) Cargo Corridor on the Trans-Asian Railway Network
SSWA Transport Corridors • Potential trade channel connecting – Europe, Central Asia and West Asia – South Asia – East Asia • Delhi-Hanoi Rail Link • Kunming-Singapore Rail Link – Many links with the landlocked countries • Central Asia • Afghanistan, Nepal, Bhutan
Way Forward • • • • • • •
Recognize the criticality of regional transport connectivity Prioritize physical infrastructure development Closing the infrastructure gaps and upgradation of others Address transport facilitation bottlenecks Regional transit agreements to enable cross border movements Mobilize resources for infrastructure Multilateral development banks and ppp funding
• Realize the vision of integrated and connect SSWA economic space • With itself and rest of the region
