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∗A draft version of this paper was presented at an international workshop on “China’s Rising Influence in Mainland ASEAN: Implications and Local and Regional Responses,” June 14–15, 2018, organized by the ASEAN Studies Center, Chulalongkorn University, and the Center for International Economics, Faculty of Economics, Chulalongkorn University. The discussants and participants provided many helpful remarks for my revision and addition. I would like to express here my sincere appreciation to the organizers, discussants, and participants.
Chapter 3
The Effects of the Lancang–Mekong Cooperation on Mainland ASEAN Countries: Opportunities or Challenges?
Yang Baoyun and Patcharinruja Juntaronanont
3.1.Introduction
The Mekong sub-region has been an important strategic area in Southeast Asia. The Mekong River is located in the middle of the Mekong sub-region. It flows through the southern part of China (Yunnan Province) and the five Mainland ASEAN countries, Thailand, Cambodia, Laos, Myanmar, and Vietnam — all the Mainland ASEAN countries mentioned in this chapter. Since the end of World War II, the Mekong sub-region has been an important strategic area in both the economic and political development of the surrounding countries. The region has also attracted massive interest from powerful, distant countries like the USA and Japan. Overall, many countries around the world consider the Mekong sub-region to be an area full of economic opportunity; thus, the Mekong sub-region has brought increasing influence and power to Southeast Asia. However, apart from geopolitical factors, the increasing influence and power of this region has also entangled the sub-region in numerous problems and conflicts. These increasing problems and conflicts include a conflict of interest over the allocation of water resources, various economic conflicts among the countries, and the common ground on environmental issues. Large development projects have been planned and implemented to support the economic growth of the countries involved and to improve the lives of the people in the area. However, there has also been criticism of the projects, leading to tensions and disputes between the countries involved.
Since the early 1950s, many cooperation frameworks have been established to manage and solve these problems in the sub-region, such as the Mekong River Commission (MRC), the Greater Mekong Sub-Regional Economic Cooperation Program (GMS), the Lower Mekong Initiative (LMI), and, the latest one, the Lancang–Mekong Cooperation (LMC). Since the first Summit meeting in 2016, the LMC has launched several cooperation projects promoting development in these sub-regional countries, representing the importance of the Mekong River sub-regional framework. At the same time, the role of China in this framework and the roles of the sub-regional countries themselves have also grown. Although LMC plays a significant role in the development of the Mekong sub-region and further advancement in China–ASEAN cooperation, complementarity and mutual relations, there are some inner challenges. There are disagreements as to whether the cooperation mechanism is a practical framework suitable to Mekong sub-regional development and in her best interests, eliminating core problems and conflicts in the region, or whether the cooperation itself brings more harm than good. There have been concerns about the influence of China on the Mekong sub-region and whether the Mekong sub-regional countries rely too much on that country.
This chapter is divided into four parts. The first part explains the establishment of the LMC with a background of the Mekong sub-regional cooperation history. The second part examines the opportunities given to the Mekong sub-regional countries of the LMC. The third part explores the challenges and risks of the LMC in the Mekong sub-region. In the last part, the chapter concludes with an analysis and recommendation of a solution for helping the LMC to promote common ground and in-depth development of the Mekong sub-region.
3.2.Mekong Sub-Region Cooperation History and the Lancang–Mekong Cooperation Mechanism
The LMC is the newest cooperation mechanism in the Mekong sub-region. It is a new attempt to manage conflict and promote cooperation and development in the Mekong sub-region. But the question of why this sub-region has become a strategic and essential area is pertinent.
The Mekong River is known as one of the most significant water resources in this sub-region. It is the longest river in Southeast Asia, covering an area of 800,000 square kilometers, passing through five countries in Mainland ASEAN including Thailand, Cambodia, Lao PDR, Myanmar, and Vietnam. The river also flows through the Yunnan Province of Southern China. In China, the Mekong River is called the Lancang Jiang (澜沧江, Upper Mekong). The Langcang Jiang is one of China’s longest rivers. It contributes approximately 13.5% of the Mekong’s flow. The river system provides water and food for approximately 70 million inhabitants and is a major source of livelihood. It sustains crops, livestock, fisheries, and forests; serves as a waterway for the transportation of goods and people; and is a source of tourism, recreational, and socio-cultural activities.
After World War II, the Mekong sub-region gained more influence politically and economically. The US and Japan have greatly influenced the Mekong sub-regional countries. They saw opportunities and expressed interest in building a development project in this sub-region, especially in the lower Mekong basin. The inter-state development project in the Greater Mekong Sub-region started when the US joined the Economic Commission for Asia and The Far East (ECAFE), established by the United Nations under the United Nations Economic and Social Council. ECAFE’s mission was to raise economic prosperity and security and to restore economic ties between countries in Asia. Surveys were conducted along the Mekong River in 1952 to study the feasibility and possibility of further development of the Lower Mekong Basin. The results of the survey suggested the possibility of building of dams to generate energy. The development of dams would be beneficial for energy production and the exportation of rice production. In 1957, with the push from the US, the first cooperation platform known as the Committee for Coordination of Investigation of the Lower Mekong Basin, or the Mekong Committee, was formed. The Mekong Committee began as a coalition of countries in the Lower Mekong River Basin. It included Cambodia, Laos, Thailand, and South Vietnam and was responsible for promoting and facilitating intergovernmental coordination in the development of water resources in the Lower Mekong Basin. China and Burma did not join in the cooperation. At that time, China was not yet a member of the United Nations, and Burma did not show any interest in joining the group. The establishment of the Mekong Committee was the first time that the United Nations played a leading role in the management and planning of international rivers. This was the first formal organization to manage the Mekong River Development Project and was an important step in upgrading the Mekong River Basin.
The