Growth Area Concept

• A unique Asian strategy developed and first employed in the early 1980s
• Envisioned to accelerate economic development in identified areas
• Commonly composed of compact geographical sub-regions where participating member-countries can benefit from each other through:
  • Economic complementarities; and
  • Sharing of resources and markets.
• Success is hinged on the fact that its component areas are geographically proximate, thus allowing easy cross-border investments that spur economic activity
• Examples of successful growth areas in Asia:
  • Greater Mekong Delta River Sub-Region
  • Southern China Growth Triangle
  • Singapore-Johore-Riau (SIJORI) Growth Triangle, and
  • The Indonesia Malaysia Thailand Growth Triangle.
• Economic cooperation is achieved by way of one country channeling investments into another
• Channeling of investments is done to avail of cheaper resources such as land or labor
• Growth areas usually involve the less developed territories, those that experience inadequate support or long-term neglect by their central governments
• The central governments allow the conduct of direct cross-border trade with neighbor territories as a means to develop said territories
• This scheme eases the burden on central governments to channel significant levels of public investment to these territories as they are now in a better position to generate their own growth
• Cooperative efforts in the growth area context are focused on:
  • The development of trade and investment
  • Development of human resources
  • Effective use of natural resources
  • Regional security
  • Social welfare
  • Poverty alleviation; and
  • Environmental sustainability.

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