7-4 PLANNING AND DEVELOPMENT IN THE CHINESE LANCANG-MEKONG BORDER AREA

7-4

Project Scope and Relationship to China's Agenda 21

The project proposes the preparation of a development plan for the portions of the lower reaches of the Lancang river basin that fall within China's territory and the promotion of international cooperation in this important geographical area. Pilot projects will be implemented in this area. The project is based on the programme area 6A - Capacity Building for Sustainable Development of China's Agenda 21. It will also contribute to eliminating poverty, promoting transportation, managing natural resources based on the market economy, and the conservation of biodiversity, as covered under programme areas 8A, 12E, 14A and 15A of China's Agenda 21.

1. Background

The area targeted for international cooperation is in the northern part of the Mekong River basin. The area includes the Xishuangbanna Dai Autonomous Prefecture and Simao Prefecture of Yunnan Province in China, Upper Laos, Jingdong district in Myanmar (Burma), and the States of Chiang Rai and Chiang Mai in Thailand. In this location the mountainous environment is abundant in water, mineral, and biological resources. However, the Golden Triangle area outside of China is also a major drug producer. Across borders there exist similarities in agricultural practices and language, but there are also a number of different cultural minorities.

The Chinese part of the target area is located in the basin of the Lancang river, which is called the Mekong River outside of China. The economy is rather primitive. Transportation and education are poor; nevertheless, in certain places there is rapid economic growth. Immediate progress can be achieved here by opening an international transport system, by exploring the natural resources and by obtaining more efficiency in agriculture. Mid and long term prosperity will depend on protection of the environment.

In recent years, both Chinese and international investigations have been carried out in the target area. Among them are the Canadian funded Lancang-Mekong research network, the French Mekong River research plan, the joint Chinese-Australian study, and investigations by the Thai, Laos and Myanmarese governments. A group of experts, invited by the Chinese government, has conducted a first study in the area.

Some construction projects have laid the foundation for further development. International economic and technological cooperation is developing. The Asian Development Bank has invested US $4 million for an early stage study in Indochina which includes the Chinese Lancang River border area. The Yunnan provincial government input about 100 million yuan in this study.

The central government has approved a development plan for the upper and middle reaches of the Lancang River, but there is no plan for the lower reach of the Lancang River basin, which constitutes part of the international target area. Such a plan is required in order to develop highways, railways, aviation, shipping, hydropower, mining, an international trade zone and an industrial investment zone.

2. Objectives

• Long-term Objectives
• The general objective of the project is to prepare a development plan for the Chinese portion of the lower reaches of the Lancang river basin and to further international cooperation across its international borders. This project will include the implementation of some pilot projects.
• Immediate Objectives
• To conduct a detailed study resulting in the draft of a development plan for the Chinese downstream Lancang river basin area which will include the justification for further multinational cooperation
• To build a network for environmental monitoring, a data base and a geographic information system to facilitate the implementation of the development plan
• To initiate pilot projects for sustainable development in poor cultural minority areas
• To conduct a demonstration project for planting and processing tropical fruits and tropical industrial crops
• To conceive a plan for sustainable management of the tropical rainforest which includes a method of balancing the interests of the rubber plantations with the interests of the environment
• To establish an education and training centre for a cultural minorities
• To establish international trade zones

3. Activities

• 3.1 Conduct a comprehensive investigation and draft a development plan for the downstream Lancang river basin area which lays the foundation for further international cooperation between and among China, Laos, Myanmar and Thailand.
• Put forward strategic objectives and tasks in the field of economic development for the Chinese part of the region
• Conduct feasibility studies to identify environmentally sustainable projects in industry, agriculture, transportation and energy
• Complete, for implementation of the above mentioned plans, a set of thematic maps which include land use plan maps and environmental management maps
• Design criteria for identifying relevant categories of people and their economic and environmental understanding, interests and behaviour
• Plan techniques to support people in optimizing their individual and collective, short term and long term interests

The duration of the activity will be one year.

• 3.2 Establish a monitoring and information system to support the implementation of the development plan.
• Introduce a network to monitor hydrological and other environmental systems
• Develop a regional data base and system of expertise to support multi-criteria decision making
• Establish a geographical information system for the area
• The duration of this activity will be 2 years.
• 3.3 Implement pilot projects to eliminate among the cultural minorities.
• Conduct a feasibility study which will guide in the formation of villages and towns of optimum sizes
• Build three towns for different cultural minorities
• Develop and test techniques to study and promote economic and environmental understanding, interests and behaviour of target groups

(Also strongly support by income generation and job creation under other activities.)

The duration of this activity will be 5 years.

• 3.4 Implement a demonstration project to cultivate and process tropical fruits and industrial crops.
• Build a demonstration zone for planting and processing tropical fruits and tropical industrial crops
• Implement and test techniques for the expansion of new varieties of crops and disseminate knowledge among the target groups

The duration of this activity will be 5 years.

• 3.5 Protect the tropical rain forests and ensure the sustainable development of rubber plants.
• Design an ecological plan for protecting the tropical rain forests
• Plan to optimize short term and long term interests, and government and communal management of forests
• Develop two state-owned rubber plantations as demonstration sites for optimizing economic and environmental interests
• Develop and test techniques for the extension of new varieties of crops and disseminate this knowledge among target groups

The duration of this activity will be 5 years.

• 3.6 Establish a centre for teacher and vocational training.
• Raise funds for purchasing education facilities, equipment and instruments
• Build a centre for teacher and vocational training
• Identify the cultural minority target groups' felt needs for practical knowledge

The duration of this activity will be 3 years.

• 3.7 Establish an international trade zone, including:
• Establishing the Daluo border trade zone
• Establishing a mutual trade zone under state administration at Mohan in Mengla
• Establishing two or three trade zones for inhabitants of the border towns

The duration of this activity will be 2 years.

The agencies involved in these activities will be the State Planning Commission, the State Science and Technology commission, and the Yunnan Provincial Government.

4. Inputs

• 4.1 Chinese Inputs
  • Project management
  • Providing transportation and office equipment
  • Providing equipment and instruments
  • Initiation of demonstration projects
  • Data collection and literature survey

• 4.2 International Inputs
  • Provide equipment and instruments
  • Engaging experts
  • Collecting data and surveying the literature
  • Initiation of demonstration projects

5. Benefits

A master development plan for the Chinese area of the Lancang River, once completed and approved by the government, will become a basis for both local development and international cooperation in the contiguous zones in China, Laos, Myanmar and Thailand.

A data base of natural resources, an environment monitoring network and a geographical information system will facilitate the planning and management through providing rapid analytical capacity. Through the demonstration project establishing three towns for cultural minorities, 1,000 mountain inhabitants will benefit directly and another 20,000 indirectly. The demonstration project for planting and processing tropical fruits and industrial crops will have an annual output value of US $ 5 million. It will eliminate poverty for twenty thousand local cultivators. About 100,000 cultivators in the adjacent area will benefit as well. The demonstration project for the renewal of two rubber plantations will increase the regional annual output value by US $ 2 million while protecting the environment.

The education and training centre will train four hundred teachers and skilled workers annually. As a result, forty thousand cultural minority young people will receive better education. Through the new trade zones, the trade volume will reach US $1 billion. The knowledge and experience from these demonstration projects will indirectly benefit sustainable development in the area.