한-BIMP-EAGA 협력포털

Philippine’s Expectations and Korea's Contributions

      BIMP-EAGA's 5 Key Strategic Pillars: Connectivity Philippine’s Expectations and Korea's Contributions       Dong-Yeob KIM (Busan University of Foreign Studies)       BIMP-EAGA was launched in 1994 as a subregional economic cooperation initiative within the ASEAN region, proposed by President Fidel V. Ramos of the Philippines. It aims to promote the economic and social development of underdeveloped areas, including marginalized and geographically isolated regions, within its member countries, excluding Brunei. In contrast to the Greater Mekong Subregion (GMS), a development cooperation mechanism among countries in the Mekong River basin within ASEAN, BIMP-EAGA was established through a subregional agreement among countries in the island regions. BIMP-EAGA has focused on expanding connectivity through various physical infrastructure and institutional improvements, allowing for the free movement of people, goods, and services within the region. It aims to attract active investment from external sources into diverse projects aimed at realizing this goal. By effectively linking the BIMP-EAGA region with the global economic network, it is anticipated to serve as a new engine for economic development in member countries.   From the Philippine perspective, BIMP-EAGA carries a strategic significance in promoting national integration and economic development by fostering the development of the Mindanao region. Mindanao has long been plagued by political conflicts and has lagged behind economically compared to other regions. In terms of politics, the active participation of the Philippines in BIMP-EAGA within the ASEAN framework enhances the country's diplomatic capacity. Through cooperation within BIMP-EAGA, the Philippines strengthens its ties and mutual understanding with Indonesia, Malaysia, and Brunei, thereby enhancing its political standing in ASEAN-led regional issues.   From an economic standpoint, BIMP-EAGA holds significant importance for the Philippines as it promotes trade and investment with neighboring member countries, thereby enhancing the development capacity of underdeveloped areas such as Mindanao and Palawan in sectors like agriculture, fisheries, and tourism. Particularly, the development of the Greater Sulu-Sulawesi Corridor (GSSC), aimed at improving logistics through infrastructure expansion, contributes to attracting foreign investment and generating employment opportunities for local residents.     New Shipping Route between Mindanao and North Sulawesi Source: Mindanao Development Authority, https://minda.gov.ph/news/64-mindanao-north-sulawesi-indonesia-sea-route     From a social and cultural perspective, BIMP-EAGA is expected to promote economic development in the Philippines, particularly in Mindanao and surrounding areas, leading to a reduction in poverty rates and an improvement in living standards for local residents. Furthermore, enhanced cooperation and understanding among member countries contribute to fostering regional peace and stability by jointly addressing various illegal activities occurring in border areas.   Ultimately, BIMP-EAGA aims to position Mindanao and Palawan, considered as peripheral areas in the Philippines, as partners in international development cooperation. This is hoped to lead to enhanced diplomatic relations, opportunities for economic growth, and ultimately, an improvement in the lives of local residents. To realize these expectations, close cooperation among diverse member countries and external partners is imperative.   The author conducted an interview with officials from the Mindanao Development Authority (MinDA), which is responsible for the role of the Philippines Secretariat in BIMP-EAGA. Through this interview, the author was able to ascertain the Philippines' stance on BIMP-EAGA and its expectations for Korea.       BKCF Project Results in Philippines (2023) Source: Mindanao Development Authority, https://minda.gov.ph/news/833-ph-bimp-eaga-project-recieve-funding-from-south-korea     First and foremost, the Philippine government is actively advancing the development of Mindanao through cooperation with BIMP-EAGA. It was noted that various development policies for Mindanao, established during the Aquino administration (2010-2016), have been continuously refined and pursued under subsequent administrations, including the Duterte administration (2016-2022) and the current Marcos administration (2022-2028). The government emphasized its utilization of budget allocations and diplomatic channels for infrastructure development projects connecting Mindanao with the Philippine capital region and neighboring BIMP countries. Specifically, the establishment of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), agreed upon during the Aquino administration and legislatively enacted during the Duterte administration, was highlighted as not only contributing to peace consolidation in the region but also actively enhancing regional economic development capabilities through proactive participation in BIMP-EAGA.   They also emphasized the need for various enhancements to ensure that the expectations regarding the Philippine's engagement in BIMP-EAGA are more efficiently realized. First and foremost, they highlighted the urgency for institutional strengthening within BIMP-EAGA. Currently, the Facilitation Center located in Sabah, Malaysia, which serves as a coordinating body, has limitations in reconciling and coordinating the diverse voices of relevant countries and stakeholders. While the establishment of a secretariat, which has been mentioned during summit meetings, is still pending, they stressed the necessity for legal and institutional reforms such as the establishment of a secretariat.   They also pointed out the lack of international attention as another regrettable aspect. Currently, the Asian Development Bank (ADB) is spearheading BIMP-EAGA development projects, while countries like Japan and China mainly pursue cooperation on a bilateral basis with individual countries within the region. In other words, they highlighted that BIMP-EAGA, as a regional cooperation mechanism, is not receiving proper recognition as a partner for development and investment. In this regard, they expressed high expectations for Korea's involvement in BIMP-EAGA. They evaluated Korea's recent interest and investment in BIMP-EAGA through the BKCF (BIMP-EAGA-Korea Cooperation Fund) as a highly encouraging development.   Korea, which is pursuing the Indo-Pacific Strategy, should strengthen its diplomatic position in the ASEAN region and enhance economic cooperation as a partner in development through close cooperation with BIMP-EAGA. To achieve this, active participation in various projects aimed at expanding connectivity within the subregion to meet the needs of BIMP-EAGA is necessary. Additionally, proactive investment in various digital infrastructure enhancement projects to strengthen efficiency, along with diverse support for strengthening the BIMP-EAGA framework, will be essential.          

2024.12.30

Green City Initiative

      BIMG-EAGA 5 strategic pillars – Environment Green City Initiative     Young Kyung Ko (ASEAN Center, Asiatic Research Institute, Korea University)       BIMP-EAGA Vision 2025 (BEV 2025) has five strategic pillars, and environment is one of them. The Environment pillar aims to promote sustainable eco-tourism, climate-resilient agriculture, green technology advancement, and sustainable urban development.   Cities in Asia have experienced rapid growth, providing millions of people with better economic opportunities and higher living standards. However, urban densification and development have also brought about significant environmental and social costs, including population growth, inadequate infrastructure, deteriorating transportation conditions, air pollution, polluted rivers, and widening inequalities. The increase in prosperity and urban population is likely to lead to greater resource consumption and greenhouse gas emissions. Already, cities consume nearly 75% of the Earth's natural resources and account for over 75% of global greenhouse gas emissions (THE GREEN CITIES INITIATIVE FOR BIMP-EAGA). The worsening urban issues could result in deteriorating living environments and reduced economic productivity.   Without dramatic changes, urban problems are likely to worsen. Therefore, continuing to adopt traditional urban development approaches is no longer the right choice. As part of the Environment strategy of BIMP-EAGA (BEV 2025), the Green Cities Initiative (GCI) has been introduced.   The BIMP-EAGA Green Cities Initiative (GCI) aims to contribute to a paradigm shift. GCI seeks to promote integrated urban development and environmental planning, transforming present cities into cleaner, more environmentally friendly, and prosperous cities of the future. For example, while conventional urban development focuses on infrastructure expansion, green city development aims to enhance infrastructure through integrated planning and management to improve the city's management capacity.   The BIMP-EAGA Green Cities Initiative (GCI) has introduced the Green City Action Plans (GCAP) as practical implementation measures. GCAP contains highly detailed and specific content aimed at making cities within the BIMP-EAGA region smarter, more environmentally friendly, and livable, ultimately promoting sustainable urban development. It includes profiling, baseline setting, and performance indicator establishment to enhance integrated urban planning, as well as project pipelines, assessment of urban financial capabilities, consideration of alternative funding mechanisms for proposed project pipelines, and implementation plans for project pipelines.     Action Plan Development in 10 Step     For GCAP to achieve the expected outcomes in urban development, it is essential to thoroughly consider the characteristics and environment of the target cities. Therefore, while GCAP maintains a standardized format, its content is tailored to each city's specific needs. City-specific GCAP plans prioritize and schedule green development and investment plans according to their unique requirements. These plans are then combined with city management and implementation strategies, financial procurement plans, and performance monitoring indicators before being finalized. For instance, the GCAP for Kota Kinabalu includes a detailed examination of Malaysia's renewable energy policies, local government development plans, land use, water supply, and other pertinent aspects, all forming a city profile. Based on this, action plans and strategies are formulated.   The Asia Development Bank (ADB) has partnered with BIMP-EAGA to support the formulation of strategies aimed at enhancing economic competitiveness, environmental sustainability, and social equity. Given the need for an integrated approach when planning environmental infrastructure, services, and other public goods, GCAP also receives advisory and support from the ADB.   In 2016, the BIMP-EAGA Green Cities Initiative was launched, and nine pilot cities were selected for the application of GCAP. The nine cities are as follows: Bandar Seri Begawan in Brunei, Kendari, Pontianak and Tomohon in Indonesia, Kota Kinabalu in Sabah, Malaysia, Kuching in Sarawak, Malaysia, Labuan in Malaysia, Davao and General Santos City in the Philippines.   GCAP has already been applied in Kendari and Kota Kinabalu, with each completing GCAP in 2017 and 2019, respectively. The third GCAP was developed for General Santos City in 2021, while Bandar Seri Begawan and Pontianak are scheduled to be prepared by 2022.            

2024.12.18

Nature-based solutions to Climate Change: Mangrove Restoration and Blue Carbon

    BIMP-EAGA's 5 Key Strategic Pillars - Environment Nature-based solutions to Climate Change: Mangrove Restoration and Blue Carbon       Hosang Kang (Institutes of Green Bio Science & Technology Seoul National University)       Southeast Asia occupies only 3% of the Earth's land area but accounts for 30% of the world's coral reefs and 35% of mangrove forests (Source: ASEAN State of the Environment Report, 2008).   BIMP's Philippines, Sundaland, and Wallacea are rich in biodiversity and are recognized as one of the 36 global biodiversity hotspots along with the Indo-Burma region in the ASEAN continental region.     South East Asia's Hotspots of Biodiversity     In particular, mangroves growing near coastlines have gained significant attention as blue carbon sinks, which are marine carbon absorption sources capable of storing carbon for thousands of years. They not only contribute to the conservation of marine biodiversity but also absorb carbon dioxide at a rate exceeding 50 times faster than terrestrial green carbon ecosystems in recent years.   Mangroves primarily refer to shrubs or tall trees that grow in wetlands located in tropical or subtropical coastal areas, or estuaries where saltwater and freshwater mix. Mangrove forests protect coastlines from large waves or tsunamis and prevent coastal erosion by anchoring the soil with their roots. Additionally, they provide a safe habitat for young fish among their roots and offer a secure environment for various marine organisms, contributing to sustainable income growth for local residents through continuous fishing and tourism industries.   The Korea-ASEAN Cooperation Fund (KACF)-supported Korea-ASEAN Environmental Cooperation Project (AKECOP)1) started in 2000. However, it wasn't until the devastating tsunami caused by the 2004 earthquake in northern Sumatra, Indonesia, that highlighted the significance of mangrove forests. In response to this, the ASEAN Secretariat requested the addition of mangrove restoration and research projects to the scope of the Korea-ASEAN Environmental Cooperation Project. As a result, research on the ecosystem services of mangrove forests was conducted in Bohol, Philippines (Lee et al., 2022).   1) The ASEAN-Korea Environment Cooperation Project (AKECOP), supported by the Korea-ASEAN Cooperation Fund, conducted joint research and educational/training programs in the fields of ecosystem restoration, biodiversity conservation, and income enhancement through agroforestry in ASEAN countries from 2000 to 2018. Institutions such as the University of the Philippines Los Baños (UPLB) in the Philippines, IPB University in Indonesia, Forest Research Institute Malaysia (FRIM), and the University of Brunei Darussalam (UBD) participated in these initiatives.     Mangroves in Banacon Island, Philippines     Mangrove forests cover approximately 14.5 million hectares worldwide, with Indonesia accounting for 3,364,080 hectares, or 24% of the global total (MoEF 2021). Malaysia (587,613 hectares), the Philippines (266,170 hectares), and Brunei (5,871 hectares) are also making significant efforts in the conservation and sustainable development of mangrove forests. There are about 60 species of mangrove trees distributed worldwide, with Indonesia hosting 48 species, Malaysia 42 species, the Philippines 38 species, and Brunei 25 species (Giesen et al. 2006).     Mangrove Forest of the World (source: Mangrove Forest of the World)     Over time, mangrove forests have suffered significant damage due to activities such as shrimp aquaculture and the establishment of palm farms, highlighting the urgent need for mangrove conservation measures (Hilomen & Peñaflor, 2023).   Recently, businesses have shown a high interest in mangrove restoration and conservation projects for carbon offsetting and ESG investments. Additionally, local government initiatives such as the mangrove REDD+ project proposed by the local government of Morotai Island in northern maluku, Indonesia, offer promising opportunities for collaboration between businesses and local authorities. Moreover, leveraging the Korea-BIMP-EAGA Cooperation Fund to drive the "Korea-BIMP Mangrove Cooperation Program," which encompasses mangrove restoration, biodiversity conservation, and livelihood enhancement for local communities, is essential for sharing Korea's experience in forest ecosystem restoration and promoting enhanced cooperation for climate change adaptation within the Korea-BIMP partnership.          

2024.12.17

Food Processing Industry in Sulu-Sulawesi Economic Corridor

      Greater Sulu-Sulawesi Economic Corridor (3) Food Processing Industry in Sulu-Sulawesi Economic Corridor       Young Kyung Ko (ASEAN Center, Asiatic Research Institute, Korea University)       The food processing industry has been identified as having the highest growth potential in the GSSC, with all three participating countries deemed suitable for value chain development.    The government has already designated the food processing industry as a priority for fostering, and the Philippines, Indonesia, and Malaysia all manufacture and export a variety of processed foods. Key products include coconut-based goods, palm oil products, cocoa, and fruit beverages. With the foundation of the food processing industry already laid, accelerated growth can be achieved through government support and improvements in the business environment. However, many companies in this industry are small and struggle to achieve economies of scale and competitiveness in foreign markets. A notable example is the food processing industry in the Mindanao region of the Philippines, where companies face challenges related to scale and overcrowding of small businesses. These companies hope that value chain development will help address these issues. Furthermore, they look forward to expanding into nearby and overseas markets and facilitating the easy procurement of production factors such as land, labor, and raw materials.   The Greater Sulu-Sulawesi Economic Corridor has high potential to become a hub for halal food within the food industry. Malaysia and Indonesia have Muslim populations accounting for 63% and 87%, respectively, while in the Philippines, the Muslim population is only 6.4%. However, over half of the Muslim population in the Philippines resides in the Mindanao region, accounting for 24% of the region's population. Therefore, within the economic corridor, the three countries share a common denominator for the development of the halal food industry.   Halal food requires "halal certification," and this process involves detecting non-halal substances and strict quality control, necessitating technically sophisticated processes and large-scale production capacity. Therefore, high-tech hubs for halal food production are considered essential infrastructure for both regional and global competition. For example, multinational food companies like Nestlé establish and apply halal standards throughout the entire process from farms to tables to produce their products.   The government of Sabah State in Malaysia aims to become a hub for halal food production, applying stringent quality management standards to local halal food manufacturers while emphasizing the use of advanced processes. The palm oil industry clusters in Kota Kinabalu Industrial Park and Lahad Datu have been designated as Halal Parks, receiving halal compliance certification. These industrial parks provide incentives to tenants and streamline the halal certification process for products of resident companies. According to the "BIMP-EAGA Investment Opportunities in Corridor Value Chains (2017)" report, there are 249 halal-certified companies in Sabah, including 20 multinational corporations and 229 small and medium-sized enterprises (SMEs).     <Philippine Halal Industry Development Strategic Plan> Source: Philippine Halal Industry Development Strategic Plan 2023-2028 p16,  https://dtiwebfiles.s3.ap-southeast-1.amazonaws.com/e-library/Other+Publications/Philippine+Halal+Industry+Development+Strategic+Plan+2023-2028_Narrative+Report_Final+3+single.pdf     Mindanao is also making efforts in halal food production. Under the Philippine Economic Development Plan, the Halal Export Development and Promotion Board (Halal Board) has developed a roadmap and initiated plans for the development of the halal food industry. In accordance with this plan, the Muslim-majority Autonomous Region in Muslim Mindanao (BARMM) has been designated as the halal production hub of the Philippines. The Philippine government has formulated the Halal Industry Development Strategic Plan 2023-2028 to advance the country's halal industry and aims to establish the Philippines as a halal hub by 2028. The Philippine government expects to create 120,000 jobs and attract $4 billion in investment through the halal industry. The BARMM government has also established support measures for enhancing the competitiveness of the halal industry in the region through the Second Bangsamoro Development Plan 2023-2028 and the BARMM Halal Development Plan 2023-2028. These development plans are aligned with the assistance of BIMP-EAGA member countries.   Indeed, the activation of cooperation between Sabah and Mindanao within the Greater Sulu-Sulawesi Economic Corridor is expected to accelerate the development of the halal food industry value chain.          

2024.12.02