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GMS Rationale

The GMS and Thailand’s Spatial Fix Jim Glassman Department of Geography University of British Columbia. GMS Rationale.

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GMS Rationale

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  1. The GMS and Thailand’s Spatial FixJim GlassmanDepartment of GeographyUniversity of British Columbia

  2. GMS Rationale “Regional economic cooperation is an important part of development. Although the main focus for developing countries is normally on policy and regulatory reforms, institutional strengthening, infrastructure investment, and human resource development, they must also build the connections allowing them to trade effectively with international markets.”

  3. “These markets include those next door, with neighboring countries…Peace in the subregion has encouraged the natural process of economic integration—including cross-border trade, investment, and labor mobility…To be competitive, the six Mekong countries must develop their natural resources efficiently. Subregional economic cooperation facilitates this.” • Asian Development Bank Economic Cooperation in the Greater Mekong Subregion (1999)

  4. Two views of regionalization • “Natural market” view • Market activities natural • Market activities spur prosperity and peace • GMS is opening towards markets • GMS will foster prosperity and peace • “Spatial fix” view • Market activities non-natural, variable • Market activities have varied outcomes • GMS moving towards capitalism • GMS may foster greater disparity, conflict

  5. The Spatial Fix • Capital switching (Harvey) • Development of built environment • Geographic expansion • Thai growth and the spatial fix • Mega-projects in Bangkok • The GMS

  6. Motivations for GMS • The ADB project • Thailand’s project of expansion • China’s project of expansion

  7. Crisis tendencies and the GMS • 1970-1990: high profit rates • 1990-97: declining profit rates • 1998-2004: restoration of profit rates

  8. Causes of changing profit rates • 1990-97: declining manufacturing profits • Rising wages • Low productivity growth • Increased competition • 1998-2004: rising manufacturing profits • Declining wages • Aggregate productivity growth • Export growth

  9. Decentralization or Deconcentration? • Limits of “spatial fix” within Thailand • Challenges of spending on built environment • Challenges of decentralization

  10. Increasing importance of GMS • GMS as a destination for Thai exports • GMS as a source of Thai imports

  11. Problems of GMS spatial fix • Exports aren’t panacea; challenge of import competition • Environmental and social justice issues • GMS is mainly arena of competition between China and Thailand • GMS is mainly gateway, not destination

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