GMS and ASEAN Development Gaps: A Comparative Introduction to ...

GMS and ASEAN  Development Gaps: A Comparative Introduction  to GMS Countries By Yann Duval, Trade Investment Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

ARTNeT GMS Workshop on Bridging the Development Gaps in the GMS, 1-2 June 2009, Hanoi

Overview of the presentation • Comparative data on GMS countries – – – –

Macroeconomic Socio‐economic Trade Governance

• Current picture and trends since 1992

Selected GMS Macro‐economic indicators

Population, Economic Size, GDP growth and GDP per capita GMS Countries China Yunnan

Camb.

Lao Myanmar Thailand Viet Nam

GMS

ASEAN

(Avg.)

( Avg.)

Population (millions; 2006)

1,312

45

14

6

48

63

84

43

56

GDP (US$ billions, constant 2000 )

2,096

58

6

3

N/A

165

48

56

88

GDP growth (%; 2006)

11 %

12 %

11 %

8%

N/A

5%

8%

8%

7%

GDP per capita (constant 2000 US$; 2006)

1,598

1,294

445

439

N/A

2,601

576

1,327

1,552

Source: World Bank WDI June, 2008; year 2006 Yunnan data derived from Yunnan Bureau of Statistics, 2008 GMS average excludes China data in calculation GMS average and ASEAN average for GDP per capita exclude Myanmar data in calculation

GMS, ASEAN and China Population Size (Millions; 2006) GMS total: 261

CAM 14

China: 1,312

Yun 45

VN 84

LAO 6

MYA 48

TH 63

Other ASEAN 340

Data Source: World Bank WDI June, 2008 (constant 2,000 US$) Data for Myanmar not available in WDI *Yunnan data derived from Yunnan Bureau of Statistics, 2008

GMS, ASEAN and China GDP (US$ Billions; 2006) GMS total: 280 CAM 6 LAO 3

China: 2,096

Yun 58

VN 48

TH 165

Other ASEAN 566

MYA ?

Data Source: World Bank WDI June, 2008 (constant 2,000 US$) Data for Myanmar not available in WDI *Yunnan data derived from Yunnan Bureau of Statistics, 2008

Economic Growth of GMS

GMS Economic Development

Singapore (US$ 27,125)

GMS & ASEAN

Brunei (US$ 18,304)

GDP per Capita 2006

Malaysia (US$ 4,535)

(Constant 2,000 US$)

Thailand (US$ 2,601) China (US$ 1,598) Yunnan* (US$ 1,294) Philippines (US$ 1,154) Indonesia (US$ 983) Myanmar (?) Viet Nam (US$ 576) Source: World Bank WDI June, 2008 Data for Myanmar not available in WDI

Cambodia (US$ 445) Lao PDR (US$ 439)

*Yunnan data derived from Yunnan Bureau of Statistics, 2008 Original Yunnan data in Chinese Yuan Conversion rate as of June 13, 2008: 1 USD = 6.8985 CNY, Yahoo! Finance

GMS Economic Structure (2006) GMS Countries China Yunnan

Camb.

Lao Thailand

GMS

ASEAN

Myanmar

Viet Nam

(Avg.)

( Avg.)

Agriculture (as % of GDP)

12 %

19 %

30 %

42 %

11 %

N/A

20 %

14 %

11 %

Industry (as % of GDP)

48 %

35 %

26 %

32 %

45 %

N/A

42 %

44 %

43 %

Services (as % of GDP)

40 %

38 %

44 %

26 %

45 %

N/A

38 %

43 %

47 %

Source: World Bank WDI June, 2008, for year 2006 Yunnan data derived from Yunnan Bureau of Statistics, 2008 GMS average excludes China data in calculation GMS average and ASEAN average exclude Myanmar data in calculation

Total Debt Service, Aid and Aid per capita (2006) GMS Countries

ASEAN

(Avg.)

( Avg.)

Thailand

Myanmar

Viet Nam

5.6 %

7.3 %

N/A

1.5 %

3.7 %

5.2 %

34 %

33 %

-0.4 %

N/A

8%

3%

2%

37

63

-3

3

22

12

9

China

Yunnan

Camb.

Lao

Total debt service (as % of GNI; 2006)

1.0 %

N/A

0.4 %

Aid (% of gross capital formation; 2006)

0.1 %

N/A

1

N/A

Aid per capita (US$; 2006)

GMS

Source: World Bank WDI June, 2008 GMS average excludes China data in calculation Averages for total debt service are simple averages due to unavailability of GNI (constant 2000 US$) in WDI database.

Selected GMS Socio‐economic indicators

GMS Economic Structure (2006) GMS Countries China Employment to population ratio, ages 15-24 (%; 2006)

65 % %

Literacy rate, youth total (% of people ages 15-24; 2000)

99 %

GMS

ASEAN

Camb.

Lao

Thailand

Myanmar

Viet Nam

(Avg.)

( Avg.)

63 %

54 %

46 %

58 %

66 %

57 %

49 %

N/A

N/A

98 %

95 %

N/A

96 %

97 %

6 3

Source: World Bank WDI June, 2008 GMS average excludes China data in calculation. All averages are simple averages.

Employment by Sector of Activity (% of total employment; 2001)

GMS Countries

GMS

ASEAN

China

Camb.

Lao

Thailand

Myanmar

Viet Nam

(Avg.)

( Avg.)

Employment in agriculture

45 %

70 %

N/A

46 %

N/A

64 %

60 %

35 %

Employment in industry

17 %

11 %

N/A

19 %

N/A

14 %

15 %

20 %

Employment in services

13 %

19 %

N/A

35 %

N/A

22 %

25 %

45 %

Source: World Bank WDI June, 2008 GMS average excludes China data in calculation. All averages are simple averages.

GMS Countries China Yunnan

Camb.

Lao Thailand

Myanmar

Viet Nam

GMS

ASEAN

(Avg.)

( Avg.)

Agriculture (as % of GDP)

12 %

19 %

30 %

42 %

11 %

N/A

20 %

14 %

11 %

Industry (as % of GDP)

48 %

35 %

26 %

32 %

45 %

N/A

42 %

44 %

43 %

Services (as % of GDP)

40 %

38 %

44 %

26 %

45 %

N/A

38 %

43 %

47 %

Human Development (Human Development Index 2005) 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Thailand

China

Viet Nam

HDI

Lao

Cambodia Myanmar Singapore

GMS Average

Brunei

Malaysia Philippines Indonesia

ASEAN Average

*indicators of life expectancy, educational attainment and income combined into a composite human development index. Source: Human Development Reports 2007/2008, UNDP. HDI calculated based on year 2005 data http://hdr.undp.org/en/media/hdr_20072008_tables.pdf

Human Development* (trends)

*indicator of life expectancy, educational attainment and income combined into a composite human development index. http://hdr.undp.org/en/statistics/

Human Poverty Indicator (2007‐8)*

*The HPI represents the extent of poverty in a country. It uses indicators of the most basic dimensions of deprivation: a short life, lack of basic education and lack of access to public and private resources Data Source: http://hdr.undp.org/external/flash/hdi_map/stats_hpi-1.html

Poverty Headcount Ratio at National Poverty Line (% of Population) 47

Poverty headcount ratio (% of population)

50 45 40

45 37.4

35

33

35 30

28.9

25 20 15 10 5

9.8 6

0 China (PRC)

Cambodia

Lao PDR

1992 - 2000 Source: World Bank WDI 2008 Myanmar data not available Data during 1992 - 2000 are figures in years closest to 1992 Data during 2001 - 2008 are figures in years closest to 2008 China and Thailand's data during 2001 - 2008 not available

Thailand 2001 - 2008

Viet Nam

Change in GMS within‐country  Inequality (1990s to 2000s)* China Cambodia Lao PDR Viet Nam Philippines Indonesia Malaysia Thailand -5

0

5

10

*Measured as % change in the Gini Coefficient for expenditure or income distribution. Data years vary across countries depending on data availability.

Selected GMS Trade and Trade Integration  indicators

Bilateral Trade of GMS Countries 2006 (Export & Import Values, US$ millions) China

Cambodia

Lao PDR

Myanmar

Thailand

Viet Nam

Export

-

698

169

1,207

9,764

7,463

Import

-

35

50

253

17,962

2,486

Export

47

-

0.09

553

36

49

Import

781

-

3

0.05

246

286

Export

50

N/A

-

N/A

500

N/A

Import

169

N/A

-

N/A

1,022

N/A

Export

253

N/A

N/A

-

2,341

N/A

Import

1,207

N/A

N/A

-

762

N/A

Export

11,774

1,252

1,022

762

-

3,092

Import

13,617

35

500

2,341

-

906

Export

3,243

781

95

16

898

-

Import

7,391

169

167

65

3,034

-

(reporter) China

Cambodia

Lao PDR

Myanmar

Thailand

Viet Nam

Source: Data for China, Cambodia, Thailand and Viet Nam derived from COMTRADE database, June 2008 Data for Lao PDR and Myanmar derived from Trade Map, ITC UNCTAD/WTO (www.trademap.org) Cambodia data estimated using average annual growth (2000-2004)

Changes in GMS Intraregional Trade

Evolution of GMS Countries' Participation in ASEAN Intraregional Trade

Dependence on Exports to GMS, ASEAN, Non-GMS ASEAN and World (2006)

Calculated as EXPORT as % of GDP

Growth Rates of Export, Import and Total Trade 2006 China

Cambodia

Lao

Myanmar

Thailand

Viet Nam

Export growth (%, 2006)

28 %

24 %

57 %

N/A

29 %

6%

Import growth (%, 2006)

23 %

28 %

37 %

N/A

23 %

26 %

Total trade growth (%, 2006) Trade with ASEAN :

26 %

28 %

42 %

N/A

26 %

19 %

Export growth (%, 2006)

29 %

-18 %

62 %

N/A

14 %

12 %

Import growth (%, 2006)

19 %

9%

21 %

N/A

10 %

35 %

Total trade growth (%, 2006) Trade with the World* :

23 %

6%

32 %

N/A

12 %

26 %

Export growth (annual %, 2002-2006)

31 %

18 %

35 %

15 %

18 %

26 %

Import growth (annual %, 2002-2006)

28 %

19 %

25 %

7%

20 %

23 %

Trade with GMS :

Source: COMTRADE database, June 2008 For trade with GMS and ASEAN, base year 2005 Cambodia data estimated using average annual growth (2004-2005) Myanmar trade data 2006 not available For Lao PDR, data derived from Trade Map (www.trademap.org) China's trade with ASEAN represents bilateral trade with ASEAN group, not intraregional trade Data for trade with the world derived from Trade Map (www.trademap.org)

Growth of GMS countries Intra-GMS Trade

Growth of Trade with ASEAN

Growth of Trade with the World

Intra‐GMS trade has grown faster than trade  with ASEAN or the World

… but remains relatively insignificant (except for the smallest countries, Lao PDR in particular) % of total trade with the world

30.0 25.0 20.0 15.0 10.0 5.0 0.0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 GMS intraregional trade ratio (%)

ASEAN intraregional trade ratio (%)

Non-GMS ASEAN intraregional trade ratio (%)

Source: COMTRADE database, June 2008 Non-GMS ASEAN includes Brunei, Indonesia, Malaysia, Philippines and Singapore

Logistics Performance in the GMS (Performance scale from 1 to 5; 1= low)*

*World Bank Logistics Performance Indicators (LPI); figure based on Layton (2008)

Time for Exports GMS compared with ASEAN and Singapore

Days

60

50

40

GMS Average

30

20

10

0

Time for export (days)

Thailand

China

Vietnam

Cambodia

Lao PDR

ASEAN Average

Singapore

17

21

24

37

50

23.8

5

Countries and GMS Average

Other indicators (governance)

Corruption Perception Index (
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