Greater Tumen Initiative_2

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Energy

Te availability and security of

energy sources plays a major

role in the development and

politics of Northeast Asia,

where some countries are major

energy producers and others areconsumers. Oil, coal, natural

gas, and wind power are all

signicant sources of energy in

the region. Close cooperation

d policy integration in the energy sector will generate benets for

parties in the region. In this regard, the GI Energy Board was

tablished to address regional energy issues on a policy and strategy

sis while also including private sector expertise and resources.

Te Inaugural Meeting of the GI Energy Board was successfully held on 16

September 2009 in Ulaanbaatar, Mongolia. Practical cooperation in the energy

ector among central and local authorities, the private sector, and nancial and

esearch institutions in NE Asia was strengthened, and the GI Energy ActionPlan for 2010-2012 was adopted.

Environment

he Greater umen Region,

other parts of Asia, has experien

economic development at the exp

of the environment. Restoring

environment and preventing fur

damage requires regional initiatand local support. GI has aim

to ensure that environmental concerns are addressed in the prio

sectors, and issues such as climate change, eco-tourism, clean energy

industrial technologies are integrated into development projects.

GI Environmental Board seeks to bring together various stakehold

including the private sector, local governments, and internatio

organizations to create better development practices in order to en

both environmental and economic viability.

he 6th Workshop on the rans-boundary Environmental Impact Assessme

Northeast Asia was held in Jeju, ROK from 7 to 10 December 2009, jo

organised by the Ministry of Environment of ROK and the Korea Environ

Institute, in cooperation with the umen Secretariat. Participants agreed to fuenhance communications at both the governmental and research levels throug

GI Environment Board in order to promote EIA activities.

rade & Investment

he Greater umen Region has exciting potential to expand

industrial capacity but is one of the few remaining multi-bord

regions without a regional trade agreement in place. Previous effo

have laid an infrastructural and policy foundation for the regito develop a thriving economy. oday, GI seeks to create a mo

investment-friendly environment in order to make the regi

more competitive and attractive in the global business sphere. G

works towards these aims through a variety of initiatives such

strengthening private-public dialogue and partnerships, identifyi

and promoting investment opportunities, and facilitating the pol

environment for regional trade and investment. Investment Foru

are organized to encourage collaboration and exchange investme

information. In addition, GI publishes economic research a

investment guides to promote Northeast Asia as a whole as well as

individual cities and provinces.


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Business Advisory Council

Opportunities for the Private Sector

o further improve the investment climate in the region, the annual GI Investment Forum is organized back-to-back with the annu

intergovernmental meeting, providing a platform for the private sector and member governments to exchange important information on busin

opportunities and attracting additional foreign investment into Northeast Asia.

Te 1stGI Investment Forumwas held on 16 November 2007 in Vladivostok, Russia, und

the motto Greater umen Initiative Gateway to Northeast Asia with the goal of promotin

interregional trade and attracting additional foreign investment into North-East Asia. About 15

regional and international representatives from the private sector, research institutes and academ

as well as government officials attended the Forum, conrming the high potential of Northea

Asia for new investment opportunities.

Te 2ndGI Investment Forumwas held on 25 March 2009 in Ulaanbaatar, Mongolia followi

the meeting of the 10th GI Consultative Commission. Te Forum brought together more th

200 delegates from the GI member governments, senior business leaders from all over the wor

and high-level representatives of various non-governmental organizations and the UN. In fo

thematic sessions, participants discussed different aspects of the challenges and opportunities

economic cooperation in the Northeast Asian region.

GI has made increasing efforts to fully involve the private sector in regional developmen

he Business Advisory Council (BAC), established at the 9th meeting of the G

Consultative Commission, serves as a public-private partnership platform for the activ

engagement of the private sector in regional development and cooperation. hroug

constructive dialogue between governments and the private sector, BAC helps directly impro

the investment climate in Northeast Asia by providing advice and feedback to policymake

resulting in more effective economic cooperation and greater opportunities for investors.

BAC brings together regional and international investors to actively engage in region

initiatives, converting the great potential of the region into actual business opportuniti

and projects. Up til now, the number of BAC members has reached a total of 60, includi

representatives of multinationals, Chambers of Commerce and investment promotio

agencies from GI member states and other regions of the world.

BAC acts as a mechanism for public-private cooperation through various promotion

activities. Te Inaugural BAC Meetingwas held in Nov. 2007 in Vladivostok and the 2

BAC Meetingwas held in March 2008 in Shanghai, marking the adoption of the BA

erms of Reference. Te 3rdBAC Meeting, held in March 2009 in Ulaanbaatar back-t

back with the rst joint session between the GI Consultative Commission and BAC, la

a solid foundation for strengthening public-private dialogue in Northeast Asia. Te 4thBA

Meetingwas held on 19-20 April, 2010 in Changchun, China.

he BAC Executive Committeewas established in October 2009 in Beijing, providin

effective guidance and ensuring better coordination among BAC members. Mr. Jam

Zimmerman, Chairman Emeritus of the American Chamber of Commerce (China), w

elected as the BAC Executive Committee Chair for 2009 to 2012.

Investment Forums

* Te 2010 Northeast Asia Economic Forumwill be held in Changchun, China on 2 September 2010.


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At the 9thMeeting of the GI Consultative Commission, held in 2007 in Vladivostok, Russia, a number

of concrete projects in the priority sectors were identied as the GI Projects to support economic

development. Since then, the promotion of these projects has been effectively undertaken by the umenSecretariat, with the support of the GI member states and UNDP. Strong partnerships and cooperative

networks among GI governments, international organisations and the private sector were established

for the joint realisation of these projects.

SECOR NO. NAME OF HE PROJEC

ransport

1 NEA Ferry Route Border Infrastructure Framework

2 Modernisation of Zarubino Port

3 Mongolia-China Railway Construction

4 Resuming Hunchun-Makhalino Railway

5 China Road, Harbour Project in the Border between China and DPRK

Energy 6 Capacity Building on GI Energy at Regional Level

ourism 7 Capacity Building on GI ourism at Regional Level

Investment 8 raining Program for Officials from GI Member Countries

Environment

9 GI Environmental Cooperation: Focusing on rans-boundary Environmental Impact Assessment (EIA)

in GR and Environmental Standardisation in the Northeast Asia

10 Feasibility Study on umen River Water Protection

GTI Projects


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GI has a focus on the promotion of the Greater um

Region, which covers the three Northeast provinces (Jili

Heilongjiang and Liaoning) and Inner Mongolia of Chin

the Eastern Provinces of Mongolia; the Eastern port cities

the Republic of Korea; and the Primorsky erritory of t

Russian Federation. With a skilled and low-cost labour po

this region possesses enormous potential for investment an

job opportunities. Te umen River ties this region togeth

situated at the crossroads of vital trade, transport and ener

routes. Rich in gas, oil and minerals, the region provides eaaccess to affluent markets in the Northeast Asian countri

representing millions of consumers.

THE GREATER TUMEN REGION AT A GLANCE

Area Population Area (km2)Major Cities in the GreaterTumen Region

Main Industries

China HeilongjiangProvince

36,890,000 454,600 Haerbin and Heihe Energy, equipment, food processing, forestry,petrochemicals, pharmaceuticals

Inner Mongolia 24,000,000 1,180,000 Huhhot Agriculture, chemicals, energy, iron and steel,

textiles, pharmaceuticals

Jilin Province 27,340,000 187,400 Changchun, Yanji and Hunchun Automobiles, energy, metallurgy, petrochemicals,

textiles, tourism

Liaoning Province 42,380,000 145,900 Shenyang, Dalian and

Dandong

Electronics, machinery, metallurgy, petrochemica

Mongolia Eastern Mongolia 223,000 287,600 Choibalsan Agriculture and agro-processing, mining, tourism

ROK Eastern Ports 5,300,155 3,055 Busan, Sokcho, Ulsan and

Pohang

Automobiles, multimedia and I, port logistics,

equipment and spare parts, oil renery, ship-

building, steel production, tourism and convention

RussianFederation

Primorsky erritory 2,200,000 165,900 Vladivostok Aquaculture, engineering, food processing, forestproducts, mining, services, tourism

Map of Te Greater umen Region

INNER

MON

GOLI

A

Khabarovsk

Blagoveshchensk

HEILONGJIANG

QINGHAI

SICHUAN HUBEI

JILIN

Tokyo

LIAONING

Busan

BeijingGANSU

SHANXI

Qingdao

Greater Tumen Region


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Primorsky erritory, rich in natural resources and with a strong industrial andtransportation base, is the largest economy in the Russian Far East and the Greater

umen Region. Formerly dominated by state-run enterprises, about 90% of the

enterprises in Primorsky are now privately owned. Coal and non-ferrous metal mining, ship repair,

ship building, and food processing are the largest industrial employers. Te overwhelmingly export-

based transport industry is also well developed. Five of the ten major Russian shipping companies

are based in this area, and strong regional growth in recent years has resulted in greater export

volumes, especially of metals and other resources. In addition to the port in Vladivostok, the end

of the lines of the rans-Siberian Railway (SR) in Nakhodka and Vostochny are also located in

Primorsky. he SR is one of the shortest routes between East Asia and Europe and is a major

route for Japanese transit cargo.

he Eastern port cities of ROK offer some of Northeast Asias most dynamic

transportation and shipping connections, as well as accounting for signicant tourist

attractions. Busan, a city of around 4 million people, is a growing regional financial

center and one of the largest container handling ports in the world with a capacity of 6.44 million

EU containers per year. Sokcho is an eastern coast port city in the Gangwon Province and a majortourist gateway to Northeast Korea, offering ferry and container transportation services to China,

Russia and Japan. Ulsan is the industrial powerhouse of ROK, which is home to the world's largest

automobile assembly plant, the world's largest shipyard, and the world's second largest oil renery.

Pohang is a major port city in North Gyeongsang Province and the home of the Pohang Steel

Company, one of the largest steel producers in the world, and a host of related industries.

Four provinces in China (Jilin, Heilongjiang, Liaoning and Inner Mongolia) are actively

involved in GI. Tey have a total population of over 131 million and an area of nearly

2 million km. Tese provinces are rich in natural resources Inner Mongolia alone

boasts 90% of the countrys proven rare earth oxides and ve major coalelds with reserves of over

10 million tons each, while Heilongjiang produces almost half of the countrys oil and is a prime

candidate for wind power development. Other resources like timber in Jilin and iron in Liaoning

also play a large role in the regional economy. Recent policies have emphasised the revitalisation

of traditional industrial bases. Changchun in Jilin Province is home to one of the countrys most

important auto manufacturers, First Automobile Works. Dalian in Liaoning Province is expected

not only to become one of Chinas ve largest ports but also to rise as a global leader in software

and service outsourcing. In this environment of growing industries and markets, the umen

transport corridor is a vital connection for Northeast China and its neighbours.

he three aimags (provinces) of Hentii, Dornod and Sukhbaatar form the Eastern

Mongolian region involved in GI. Tis large (287,600 km) but sparsely populated

area is relatively less developed. Tis is one of the largest and last undisturbed steppe

ecosystems in the world and is the core habitat of the Mongolian gazelle. As such, tourism

is promising, thanks to the areas unspoiled natural beauty, cultural traditions and festivals.

Currently, agriculture and forestry account for 33% of the countrys GDP, while transport and

communications account for 10%, mining and quarrying (especially of copper, fluorspar, and

molybdenum) for 9%, and manufacturing for 6%. Mongolias radically changing and privatising

economy means that the government is placing high priority on developing the countrys natural

resources processing sector and also on accessing regional transportation corridors.

c


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GI partners with the United Nations system, development agencie

the private sector, financial institutions, foundations, nongovernmen

organizations and the academia to jointly promote economi

cooperation and development in Northeast Asia.

GTI Partners

MAIN PARNERS

United Nations Development Programme (UNDP) www.undp.org

United Nations Office for Partnerships www.un.org/unop

United Nations Office for Project Services (UNOPS) www.unops.org

World ourism Organization (UNWO) www.unwto.org

United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) www.unescap.org

United Nations Industrial Development Organisation (UNIDO) www.unido.org United Nations Environment Programme (UNEP) www.unep.org

United Nations Educational, Scientific and Cultural Organization (UNESCO) www.unesco.org

Asian Development Bank (ADB) www.adb.org

Global Environment Facility (GEF) www.thegef.org

Te Association of North East Asia Regional Governments (NEAR) www.neargov.org

Te Economic Research Institute for Northeast Asia (ERINA) www.erina.or.jp

Korea Development Institute (KDI) www.kdi.re.kr

Russian Academy of Science www.ras.ru

BOAO Forum for Asia www.boaoforum.org

Institute for Strategic Studies www.iss.gov.mn

Greater Tumen Initiative_2

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