After nearly four decades in mothballs because of persistent warfare and political bickering, the countries of the Greater Mekong Subregion (GMS) are finally speaking to one another again. Their energy is concentrated on forging economic cooperation in an effort to turn Mekong Basin, with its 2.3 million square kilometers and more than 225 million people, into a vibrant hub of cross border trade and industry.

The six countries that border the Mekong River - China, Vietnam, Thailand, Cambodia, Laos and Burma -took their first step toward joint action in 1992 with the formation of an economic forum under the auspices of the Asian Development Bank.

Then in April 1995, the foreign ministers of the four main Mekong nations - Vietnam, Thailand, Cambodia, Laos - met at Chiang Rai in Thailand, resulting in the signing of a cooperation agreement for the sustainable development of the Mekong Basin. The meeting also marked the formal re-entry of Cambodia into the Mekong River Commission (MRC) after a 20 year hiatus caused by the advent of Khmer Rouge leadership in Phnom Penh.

The Mekong Forum’s primary aim is the integration of infrastructure priorities and intra-regional trade among the six member states. With the ADB’s help, the forum has singled out close to 80 projects for priority cooperation in six areas: transport, energy, environment and investment, human resource development and tourism.

The Manila-based ADB has so far provided more than US $200 million in loans and extended another US$7.6 million in technical assistance . The bank plans to disburse an additional US$250 million in loans during 1996-1998. The ADB stresses that private sector investment is needed, since the capital required for some of the larger infrastructure projects far exceeds the capacity of the present resources of the six governments and the bank itself.

Foreign aid donors and agencies have pledged nearly US$200 million to support 94 projects and activities that the Mekong River Commission wants to activate this year, including navigation, hydroelectric and agricultural projects.

Besides the World Bank and the United Nations Development Programme (UNDP), the governments of Denmark, Sweden, South Korea, Japan, and the Netherlands, have also agreed to help development along the Mekong.