Urban Development in the Greater Mekong Subregion

URBAN DEVELOPMENT IN THE GREATER MEKONG SUBREGION

Edited by Florian Steinberg and Januar Hakim

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Asian Development Bank.

Urban development in the Greater Mekong Subregion. Mandaluyong City, Philippines: Asian Development Bank, 2016.

1. Urban development. 2. Regional development. 3. Greater Mekong Subregion. I. Asian Development Bank.

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Contents

Tables and Figures

Tables

Figures

Foreword

Urban Development and Urbanization in the Greater Mekong Subregion

With Southeast Asia’s urbanization rate increasing from 42% in 2010 to 65% in 2050, the Greater Mekong Subregion (GMS) will undergo inevitable urbanization, experiencing vast transformations in its economies and international transport connectivity.

Some of the most important trends include (i) accelerated growth of small and medium towns and (ii) the rise of urban centers that serve as hosts for economic development. According to Asia 2050, a flagship study by the Asian Development Bank (ADB), most economic growth will be urban. By 2050, the GMS is expected to be at least 50% urbanized. Careful planning is needed to balance growth—preferably green growth—with inclusiveness to avoid the ills and negative impacts of urbanization. We can achieve this through national urban strategies, which provide road maps and orientations to urban development, ultimately leading to a need for a GMS urban development strategy.

Most countries in Southeast Asia (with the exception of Singapore) are lagging behind East Asian urbanization such as that of the People’s Republic of China (PRC), Japan, and the Republic of Korea. The GMS countries Cambodia, the Lao People’s Democratic Republic (Lao PDR), and Myanmar are at the early stages of industrialization and urbanization, while Thailand, Viet Nam, and Yunnan Province and Guangxi Zhuang Autonomous Region of the PRC are at the intermediate stages.

Deliberate urban development policies are possible, but these efforts will achieve effects only after about 15–20 years. Nonurban policies such as political, fiscal, or administrative decentralization may take a leading role over urban policies. Viet Nam and Indonesia, for example, have both had far-reaching decentralization.

Closer integration between GMS countries and the rest of the PRC as well as the inclusion of Myanmar are among the major indicators of the expansion of the GMS corridors. An urban development strategy should take advantage of the GMS corridors and the investments made toward them. The broader goal should be to achieve balanced urbanization that supports competitive cities, balanced growth, and a green economy.

In 2012, three GMS Corridor Towns Development Projects, which largely cover environmental infrastructure, were approved and initiated in Cambodia, the Lao PDR, and Viet Nam. ADB invested $47.4 million for Cambodia, $41.8 million for the Lao PDR, and $131.0 million for Viet Nam. Improved access to basic infrastructure, cleaner environment, and mitigation of climate change impacts are expected to positively affect the competitiveness of the towns under these projects.

In preparation for the years ahead until the end of the current GMS strategic framework in 2022—toward the second and, eventually, third generation of Corridor Towns Development Projects—GMS countries will need to select the towns with the best potential. Countries should establish priorities and criteria for the kind of development and investments that will need support.

We are convinced that (i) modern environmental services and infrastructure (e.g., water, wastewater, and solid waste management) support green development and will contribute to positive health impacts; (ii) improved climate resilience (e.g., through flood control measures) will mean reduced losses from climate change impacts; and (iii) improved urban performance will translate into enhanced productivity and increased attractiveness for investors and residents, providing support to a green economy.

ADB’s assumption is that urban development can support regional cooperation and integration. Cross-border economic activities can be enforced not only through transport and border facilities, but also through the construction of markets and trading centers, joint logistics centers, and transport terminals. The urban dimension of regional cooperation and integration is something ADB would like to further explore. This will include an exploration of strategic approaches to regional cooperation, and an assessment of the future pipeline of urban investments.

ADB will continue to play a significant role in pursuing the GMS Strategic Framework, 2012–2022, taking into consideration the comprehensive pipeline of new investment projects geared toward a GMS urban development strategy. The GMS Program supports ADB’s three-pronged approach of increasing connectivity, improving competitiveness, and building a greater sense of community, aimed at transforming the GMS transport corridors into economic corridors.

This new strategic framework is anchored on the corridor development approach, which provides a spatial focus on urban sector development. The framework expands the GMS Program from conventional infrastructure to multisector investments designed to foster economic corridor development, involving cross-sector linkages, better consideration of regional economic development, and stronger stakeholder involvement. It builds on the substantial progress the GMS Economic Cooperation Program has made and the likely global and regional trends. It also builds on the commitment of GMS member countries to promote regional cooperation and integration.

In support of the GMS Strategic Framework, ADB will assist the GMS countries in strengthening infrastructure linkages, facilitating cross-border trade investments, and enhancing private sector participation and competitiveness. These strategies demand a multisector approach that would integrate and interrelate other sectors such as water, transport, natural resources, agriculture, and small and medium-sized, enterprise development into a development assistance package. Investments and nonlending projects in these sectors will help widen and deepen the economic corridors, leading to their further development and contributing to inclusive development along and around the regional corridors.

At ADB, we accept these challenges of urban development as part of the regional cooperation and integration agenda. This book is intended to provide a first detailed look at the urban development scenario for this important region.

WooChong Um

The Secretary

(Former Deputy Director General,

Regional and Sustainable Development Department)

Asian Development Bank

and

Amy S.P. Leung

Deputy Director General

East Asia Department

(Former Director,

Urban Development and Water Division, Southeast Asia Department)

Asian Development Bank

Preface

Knowledge Sharing on Urban Development in the Greater Mekong Subregion

This publication on urban development in the Greater Mekong Subregion (GMS)—a first of its kind—reflects recognition of the greater potential roles of urban development, increased rural-urban links, and spatial prioritization along GMS transport corridors in the next decade. Investments and nonlending projects in these areas will help widen and deepen the transport corridors, leading to their further development and contributing to inclusive development along and around the regional corridors.

The Asian Development Bank has been supporting closer integration of urban strategies among GMS countries, addressing their current national planning priorities and linking them across national borders. The improved road transportation conditions along Asian Development Bank-designated corridors, which connect all major urban centers in the GMS, will emerge to become the primary economic driver influencing the urban system in the GMS countries. These countries are expected to benefit from the GMS Economic Cooperation Strategy, which is designed to strengthen collaboration among the towns and cities along economic corridors and help improve interaction of economic activities between the central and local governments, as well as between the public and private sectors.

This book is an important contribution as it assesses the role of cities and urban connectivity in promoting GMS sustainability and considers country perspectives upon pursuing urban development in the GMS. It will help increase awareness of best practices and key challenges in addressing essential development concerns. Knowledge exchange and experience sharing from international practitioners in urban systems and strategies will further enrich possible options for urban sector development and promote knowledge sharing and networking among GMS countries. Closer integration between GMS countries and the People’s Republic of China is among the major indicators in the expansion of GMS corridor towns. Improved urban infrastructure, a cleaner environment, and mitigation of climate change impacts will help accelerate the transformation of transport corridors into economic corridors in the GMS.

The knowledge exchange and sharing of each country’s perspectives on urban development systems and trends bolster our resolve toward connectivity, functional integration, and competitiveness in the region.

Bindu N. Lohani

Vice-President

Knowledge Management and Sustainable Development

Asian Development Bank

Acknowledgments

We gratefully acknowledge the work of our co-authors and colleagues. The editors would also like to thank WooChong Um, The Secretary, Office of the Secretary; James Nugent, Director General, Southeast Asia Department (SERD); Arjun Goswami, Technical Advisor, Office of the Chief Economist and Director General; Gil-Hong Kim, Senior Director, Sector Advisory Services Division (SDAS), Sustainable Development and Climate Change Department (SDCC); Amy Leung, Deputy Director General, East Asia Department; James Lynch, Director, Regional Cooperation and Operations Division, SERD; Eric Sidgwick, Country Director, Cambodia Resident Mission, SERD; and Anand Chiplunkar, Chair, Urban Sector Group Committee, for their encouragement and support. Manuscript editing was done by Anima Slangen. The following assisted with editorial and production matters: Vergel Latay (formerly with SDAS, SDCC), Mary France Creus, November Tan, Leonardo Magno, April-Marie Gallega, Rommel Marilla, Cleone Baradas, Kae Sugawara, Ma. Theresa Arago, and Abraham Villanueva. Vergel Latay and Jay Presaldo provided overall coordination in production and publication.

Florian Steinberg

Senior Urban Specialist

Former Senior Urban Development Specialist

Urban Development and Water Division

Southeast Asia Department

Asian Development Bank

Januar Hakim

Senior Portfolio Management Specialist

Cambodia Resident Mission

Southeast Asia Department

Asian Development Bank

Contributors

Xiangming Chen is the founding dean and director of the Center for Urban and Global Studies and Paul E. Raether distinguished professor of Global Urban Studies and Sociology at Trinity College, Connecticut in the United States; and a distinguished guest professor at Fudan University, Shanghai in the People’s Republic of China (PRC). He has published extensively on urbanization and globalization with a focus on the PRC and Asia. His books include As Borders Bend: Transnational Spaces on the Pacific Rim (2005) and Shanghai Rising: State Power and Local Transformations in a Global Megacity (English and Chinese editions, 2009). E-mail: xiangming.chen@trincoll.edu

Andrew Gulbrandson manages the research and consultancy group at Jones Lang LaSalle (JLL), Bangkok, Thailand, supporting clients and conducting real estate, urban development, and economic research throughout Cambodia, the Lao People’s Democratic Republic (Lao PDR), Myanmar, and Thailand. Prior to joining JLL, he provided expertise in urban development and transport planning on projects in the PRC, Myanmar, the Philippines, and Thailand for clients including the Asian Development Bank (ADB), World Bank, Japan International Cooperation Agency, and various public and private organizations. E-mail: andrew.gulbrandson@ap.jll.com

Januar Hakim has been intensively involved for the past 15 years in the processing and management of ADB-funded urban development projects in Cambodia, the Lao PDR, and Viet Nam. His work mainly focuses on the development of corridor and secondary towns, capacity building in urban and environmental management, and urban infrastructure development. His current position is senior portfolio management specialist, ADB Cambodia Resident Mission in Phnom Penh. E-mail: jhakim@adb.org

Alain Maulion is a competitiveness and inclusive growth consultant who has done competitiveness ranking studies for metropolitan and emerging cities in the Philippines under the Asian Institute of Management, Manila, patterned on the World Competitiveness Yearbook of the International Institute for Management Development; and competitiveness studies for priority sectors in the Philippines under the World Bank and United Nations Development Programme. E-mail: alain.maulion@gmail.com

Aldrin Plaza is a former consultant for ADB’s Urban Development and Water Division, Southeast Asia Department. Where he provided management and technical support to projects in the GMS. He is an engineer and urban planner and has worked as a consultant, researcher, and trainer on local development planning in the Philippines, and has done studies and research work on urban environment and infrastructure management in Southeast Asia and West Africa. His current position is urban development officer, sector advisory service division of ADB’s sustainable development and climate change department. E-mail: aplaza@adb.org

Florian Steinberg is an international urban development specialist and consultant and formerly senior urban development specialist with ADB’s Urban Development and Water Division, Southeast Asia Department. He has more than 30 years of professional experience and has lived and worked in Asia, Latin America, and Africa for over 25 years. E-mail: florian_steinberg@yahoo.de

Douglas Webster is an urban planning specialist and economic geographer. He advises ADB and the World Bank on East Asian urbanization and on the private sector developer’s perspective. He works with the Shui On Corporation to develop innovative and city-transforming projects across the PRC, frequently incorporating heritage resources and designs that fuse a myriad of global influences. He is a frequent advisor to East Asian governments on urbanization, and acted as senior advisor to the Government of Thailand on urban policies for over a decade. E-mail: asiaurb@gmail.com

Abbreviations