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Implementation of a Customs Transit System in the Greater Mekong Subregion: The role of the private sector

Tarnovskaya, Anna LU (2011) JURM01 20102
Department of Law
Abstract
The Greater Mekong Subregion Program is a multi-billion dollar development project, launched with the assistance of the Asian Development Bank (ADB) in 1992. It brings together 6 states of the Mekong river basin with a common goal of growth and prosperity through economic co-operation. The development of economic corridors is a major trade and transport facilitation (TTF) initiative under the GMS Program. This project requires both the development of physical infrastructure and supporting legal framework. The most important legal instrument within this framework is currently the Cross Border Transport Agreement (CBTA). The CBTA came into force in 2003, but as of December 2010 full implementation was still to materialize. One of the major... (More)
The Greater Mekong Subregion Program is a multi-billion dollar development project, launched with the assistance of the Asian Development Bank (ADB) in 1992. It brings together 6 states of the Mekong river basin with a common goal of growth and prosperity through economic co-operation. The development of economic corridors is a major trade and transport facilitation (TTF) initiative under the GMS Program. This project requires both the development of physical infrastructure and supporting legal framework. The most important legal instrument within this framework is currently the Cross Border Transport Agreement (CBTA). The CBTA came into force in 2003, but as of December 2010 full implementation was still to materialize. One of the major implementation constraints is the inadequate participation of the private sector.

This paper focuses on the participation of transport associations in the Customs Transit System (CTS), an essential TTF component of the CBTA, with the aim to learn how the private sector can contribute to the implementation of the CBTA. The participation of transport associations has been examined and assessed in their roles as issuing/guaranteeing organizations and representatives of the transport industry. The paper concludes with an explanation for the limited effectiveness of private stakeholder participation. These reasons include the widely diverging organizational capabilities of the associations, the lack of a competitive procurement process, significant financial risk, inadequate participation, as well as a lacking sense ownership, economic incentive and trust. The associations are currently not actively working as a united front to find solutions to the implementation difficulties of the CTS. Due to the above factors, a more active participation of the transport associations does not seem to be a viable solution to the implementation of the CTS. Interestingly, this paper also finds that inadequate participation by the private sector is not one of the root causes of non-implementation.

This paper aspires to demonstrate that the effective and timely implementation of a multilateral agreement is contingent on inclusive consultation, sufficient participation and capacity-building, both during and well prior to the implementation stage. This would help to ensure that the private, as well as other stakeholders do not find themselves unable and/or unwilling to actively work for the implementation of the agreement. (Less)
Abstract (Swedish)
Greater Mekong Subregion programmet är ett flera miljarder dollars utvecklingsprojekt som inleddes med stöd av den asiatiska utvecklingsbanken (ADB) 1992. Det sammanför sex stater i Mekongs avrinningsområde med ett gemensamt mål för tillväxt och välstånd genom ekonomiskt samarbete. Utvecklingen av ekonomiska korridorer är ett huvudinitiativ för främjandet av transport och handel (TTF) inom GMS programmet. Detta initiativ kräver både utveckling av fysisk infrastruktur och nödvändiga regelverk. Det viktigaste rättsliga instrumentet inom detta regelverk är för närvarande den gränsöverskridande transportavtalet (CBTA). CBTA trädde i kraft 2003 men så sent som i december 2010 hade avtalet fortfarande inte implementerats fullt ut. Ett av de... (More)
Greater Mekong Subregion programmet är ett flera miljarder dollars utvecklingsprojekt som inleddes med stöd av den asiatiska utvecklingsbanken (ADB) 1992. Det sammanför sex stater i Mekongs avrinningsområde med ett gemensamt mål för tillväxt och välstånd genom ekonomiskt samarbete. Utvecklingen av ekonomiska korridorer är ett huvudinitiativ för främjandet av transport och handel (TTF) inom GMS programmet. Detta initiativ kräver både utveckling av fysisk infrastruktur och nödvändiga regelverk. Det viktigaste rättsliga instrumentet inom detta regelverk är för närvarande den gränsöverskridande transportavtalet (CBTA). CBTA trädde i kraft 2003 men så sent som i december 2010 hade avtalet fortfarande inte implementerats fullt ut. Ett av de stora implementeringshinder är det otillräckliga deltagandet av den privata sektorn i implementeringen.

Denna uppsats fokuserar på den roll som nationella transportföreningar spelar inom Customs Transit systemet (CTS) som är en viktig handelsfrämjande komponent av CBTA. Syftet är att lära sig hur den privata sektorn kan bidra till implementeringen av CBTA. Transportföreningarnas bidrag kommer att undersökas och bedömas inom ramen för deras roll som utfärdande/garanterande organisationer samt som företrädare för transportbranschen. Uppsatsen slutförs med hjälp av en rad förklaringar till föreningdeltagandets begränsade effektivitet i CTS. Dessa förklaringar omfattar vitt skilda organisatoriska förmågor föreningarna emellan, bristen på en konkurrensutsatt upphandling, betydande finansiella risker, otillräcklig delaktighet, en svag ägandekänsla avseende projektet, samt otillräckligt med ekonomiska incitament och förtroende för varandra. Föreningarna arbetar för närvarande inte aktivt som en enad front för att hitta lösningar på svårigheterna vid implementeringen av CTS. På grund av ovanstående faktorer, verkar ett mer aktivt deltagande av transportföreningarna inte vara en möjlig lösning till implementeringen av CTS. Intressant nog finner denna uppsats också att bristen på medverkan från den privata sektorn inte är en av grundorsakerna till icke- implementeringen av CTS eller CBTA.

Denna uppsats strävar efter att visa att en effektiv och tidslämplig implementering av ett multilateralt avtal är beroende av omfattande samråd med alla intressenter, tillräcklig delaktighet samt kapacitetsuppbyggnad under så väl som innan implementeringsstadiet. En sådan process skulle bidra till att man inte hamnar i ett läge där den privata sektorn (eller andra intressenter) varken kan eller vill arbeta aktivt för implementeringen av avtalet. (Less)
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author
Tarnovskaya, Anna LU
supervisor
organization
course
JURM01 20102
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
public international law, law and economics
language
English
id
1981690
date added to LUP
2011-07-01 09:10:03
date last changed
2011-07-01 09:10:03
@misc{1981690,
  abstract     = {The Greater Mekong Subregion Program is a multi-billion dollar development project, launched with the assistance of the Asian Development Bank (ADB) in 1992. It brings together 6 states of the Mekong river basin with a common goal of growth and prosperity through economic co-operation. The development of economic corridors is a major trade and transport facilitation (TTF) initiative under the GMS Program. This project requires both the development of physical infrastructure and supporting legal framework. The most important legal instrument within this framework is currently the Cross Border Transport Agreement (CBTA). The CBTA came into force in 2003, but as of December 2010 full implementation was still to materialize. One of the major implementation constraints is the inadequate participation of the private sector.

This paper focuses on the participation of transport associations in the Customs Transit System (CTS), an essential TTF component of the CBTA, with the aim to learn how the private sector can contribute to the implementation of the CBTA. The participation of transport associations has been examined and assessed in their roles as issuing/guaranteeing organizations and representatives of the transport industry. The paper concludes with an explanation for the limited effectiveness of private stakeholder participation. These reasons include the widely diverging organizational capabilities of the associations, the lack of a competitive procurement process, significant financial risk, inadequate participation, as well as a lacking sense ownership, economic incentive and trust. The associations are currently not actively working as a united front to find solutions to the implementation difficulties of the CTS. Due to the above factors, a more active participation of the transport associations does not seem to be a viable solution to the implementation of the CTS. Interestingly, this paper also finds that inadequate participation by the private sector is not one of the root causes of non-implementation.

This paper aspires to demonstrate that the effective and timely implementation of a multilateral agreement is contingent on inclusive consultation, sufficient participation and capacity-building, both during and well prior to the implementation stage. This would help to ensure that the private, as well as other stakeholders do not find themselves unable and/or unwilling to actively work for the implementation of the agreement.},
  author       = {Tarnovskaya, Anna},
  keyword      = {public international law,law and economics},
  language     = {eng},
  note         = {Student Paper},
  title        = {Implementation of a Customs Transit System in the Greater Mekong Subregion: The role of the private sector},
  year         = {2011},
}