Inter-regional Cooperation and the Post 2015 Development Agenda: Perspectives from Asia and the Pacific Shun-ichi Murata Deputy Executive Secretary of ESCAP

UN Charter Article 55: The United Nations shall promote: Higher standards of living, full employment, and conditions of economic and social progress and development; Solutions of international economic, social, health, and related problems; and international cultural and educational cooperation, and; Universal respect for, and observance of, human rights and fundamental freedoms for all without distinction as to race, sex, language, or religion. Article 56: All Members pledge themselves to take joint and separate action in co-operation with the Organization for the achievement of the purposes set forth in Article 55.

Rise of Asia-Pacific Real per capita income 1947 (USD) 2012 (USD) Sri Lanka911,884 Philippines881,501 India431,107 Indonesia351,732 China233,348 JapanLess than 10036,938 USA1,26943,063 UK66037,849 Source: Economic and Social Surveys of Asia and the Pacific

Most dynamic region Real GDP growth by regions of the world a: Members of the Economic Commission Europe

The South rises

South-South trade + other exchanges rising with growing synergies

Developing Africas exports Inter-regional South-South trade has also expanded rapidly in recent years

Share of Outward FDI Flows from Developing Countries in Global FDI Flows Vibrant South-South trade in services and investment flows

Rising South-South development assistance

Rising South-South potential for financial cooperation

Institutions for cooperation Global level country groupings Non-aligned Movement and G-77+China g7+ Group of Fragile States BRICS Country groupings in Asia and the Pacific ASEAN SAARC Economic Cooperation Organization Shanghai Cooperation Organization Pacific Islands Forum Challenge for ESCAP and other regional commissions Building on the existing efforts in South-South cooperation Fostering cooperation and coordinated action among sub-regional groupings, particularly in the context of the UN post-2015 Development Agenda

Development challenges Economic insecurity 828 million people live on less than $1.25 a day About 900 million live on between $1.25 and $2 a day 563 million are undernourished 1.1 billion are in vulnerable employment Unsustainable use of natural resources Adverse environmental impacts Increased emissions of greenhouse gases Volatility in commodity prices Lack of investment in infrastructure Energy, transport and virtual connectivity, urban development Financing requirement for the region is $ 8 trillion. Vulnerability to natural disasters Asia-Pacific accounted for 80% of global losses due to disasters in 2011

The challenge of inequality

The challenge of connectivity Many Asia-Pacific-wide agreements contribute to increasing physical connectivity Major challenges of connectivity are in energy, water, communication and people-to-people Key issue for Pacific Island Countries and Landlocked developing countries of Central Asia Regional Connectivity for Shared Prosperity is the theme of the Commission session in 2014 Connectivity is a key determinant of trade and economic development, and of regional and inter-regional cooperation

ESCAP and the Post-2015 Development Agenda Assisting countries in setting a Post-2015 Agenda Stock-taking: assess progress towards internationally agreed goals, including MDGs Organizing inclusive high-level consultations at the regional and subregional levels Means of implementation Development and implementation of regional agreements on: exchange of experiences, technology transfer, regional integration and financing of development Providing evidence-based policy options Complementing and connecting global and country-level programmes of the United Nations Regional approaches to technical cooperation

Challenges for interregional cooperation High trade costs of inter-regional trade because of geographical distance and poor connectivity, tariff and non-tariff barriers Few preferential arrangements to promote interregional trade The need to devise means for exploiting full potential of South-South Cooperation Danger of replicating centre-periphery type of economic relations between more advanced developing countries and LDCs

Towards a policy framework for South-South cooperation A policy framework is needed for: Institutional promotion of inter-regional trade and investments Implementing GSTP Sao Paolo Round Extending the coverage and scope Extending the scope of GSTP to trade in service South-South investment promotion and protection to facilitate FDI flows Special promotion of greenfield South-South FDI flows in LDCs Adoption of Duty-Free Quota-Free (DFQF) schemes for LDCs to enable them to export value-added products Exchanging good practices in South-South cooperation Developing a set of voluntary guidelines to shape South-South investments and economic relations in an equitable and sustainable manner Major emerging countries leading by example in terms of good practices

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