The new Silk Road

Thailand is hoping to create a 21st century version of the fabled Silk Road to enhance regional connectivity and strengthen all of Asia.

The Silk Road was a centuries-old network of linked trade routes across the Afro-Eurasian landmass that connected East, South and Western Asia with the Mediterranean and European world, as well as parts of North and East Africa.

Thailand has been in the forefront of efforts to create new and better trade routes, proposing a concept paper on enhanced regional connectivity through the Asia Cooperation Dialogue (ACD) meetings held recently in Kuwait.

The theme of regional connectivity was first introduced in 2008 by the Abhisit Vejjajiva government, which believed Asean had to build much stronger transport and communication links if it wanted to reach its full economic potential.

Surasak Chuasukonthip, the Thai ambassador to Kuwait, said Thailand has proposed a plan to link Asia together, starting from South Korea and Japan via China through South Asia to the Middle East and Mediterranean.

“This will create a better integration in Asia and we can get the Silk Road of the past back, both on land and sea and in the air, and this would bring the world become closer with better security,” said Mr Surasak, adding that Asia could become the leader in the world.

The ACD, initiated by Thailand and set up in 2002, consists of 32 member countries across Asia’s sub-regions and represents some of its largest economies, largest land areas and populations. The membership continues to rise with Nepal being the latest to apply.

The Thai ambassador said many ACD member countries are in the Central Asia and have ample natural resources but lack capital to develop them and road links to get their resources to market. These countries need foreign investment to help with development.
Although the regional connectivity cannot go fast, it can start from the Association of Southeast Asia Nations (Asean) by linking in the Southeast Asian region, he said.

“In Asia, Asean is quite small but it is a strategic point in the world, full of natural resources, and a powerful hub for the East and the West,” said Mr Surasak, adding that Middle Eastern countries were now looking more to the East as well.

In its proposal to the ACD meeting, the Thai government stressed that increased connectivity among member countries would not only bring them closer together physically, but also would help to facilitate trade, investment, tourism and better understanding among the people of the region.

“Enhanced infrastructure connectivity in the region could help to prepare ACD member countries and their people to tackle today’s challenges that require region-wide cooperation such as food and energy security and natural disasters,” said the paper obtained by the Bangkok Post.

In terms of food security, better connectivity would help to improve integrated logistics management, reduce food loss and increase food availability, as well as income for farmers.

Infrastructure connectivity could help to address energy security through ensuring better and more efficient access to energy supplies, including electricity grids and pipelines. The ACD can also address reduction of vulnerability to accidents, natural disasters or organised terrorist attacks.

Thai officials also point out that connectivity would support regional development by opening up remote inland and less-developed regions. These efforts would significantly narrow the development gap among member countries.

Connectivity, they say, should cover four fields of cooperation:

Physical: Transport, information and communications technology (ICT), energy and food security.

Institutional: Trade, investment and financial services facilitation, capacity building programmes.

People-to-people: Education and culture, tourism.

Investment: Governments, sovereign and private funds, private sector investors to invest in regional infrastructure.

ACD ministers are expected to review the proposal in detail at their next in Tajikistan next year.

Enthusiasm for the mission to improve connectivity has reanimated and given new purpose to the ACD, which had kept a low profile for the past decade. Further impetus has been provided by Kuwait, which used the summit to announce a US$2-billion fund to help develop non-Arab countries through the Asian Development Bank. Kuwait has pledged to provide $300 million as an initial fund.

Mr Surasak said Kuwait would like to win hearts among Asian countries as Arab economies that have thrived on oil explore new ways of using their wealth.

As well, Kuwait surprised ACD members by announcing its plan to set up a permanent secretariat in the country to convert the results of ACD meetings into concrete actions.

All told, the members are pursuing cooperation in 20 fields, with Thailand as the prime mover on tourism and a co-prime mover with Kuwait on finance.

All ACD leaders agreed on the importance of summit meetings and have agreed to stage one every three years.

Thailand has offered itself to hold the ACD ministerial meeting and the second summit in 2015, and Iran will be the venue for the third summit in 2018.

Sourced: bangkokpost