By Narupat Rattanakit
In recent years, the Mekong Region, which includes Cambodia, Laos, Myanmar, Thailand, Vietnam, and the southern Chinese province of Yunnan, has experienced remarkable expansion and development. With plentiful natural resources second to that of the Amazon, a youthful and vibrant population, and a strategic location connecting East and Southeast Asia, the area has grown as a center of commercial activity. The Mekong River is the major attraction in the region, given that it is the world's twelfth-longest river and the most productive inland fishery.
The region's expanding importance in global trade routes, physical closeness to major hotspots (such as the South China Sea and the Malacca Strait), and China's growing regional activity display its increasing attractiveness to several states. The Mekong Region’s significance has encouraged numerous actors to develop and create engagement. Countries like the United States (US) and Japan established regional gatherings for policy talks and development aid, and China extended its influence by lending loans, building infrastructure, and establishing a unique regional organization. Yet, this fast expansion has created new issues, such as environmental deterioration, socioeconomic inequity, and geopolitical conflicts. More consequently, the impacts of the Sino-US competition have permeated the subregion, as Beijing and Washington continue to increase their involvement with the riparian countries.
Additionally, the construction of large-scale infrastructure projects including dams, roadways, and trains has been a primary engine of growth in the Mekong Region. While these initiatives provide major economic gains, they have also had negative consequences for the environment and local residents. Dam construction on the Mekong River, for example, has disrupted fish migration and reduced water flow in the Mekong Delta, resulting in fluctuating water levels and negative effects on the livelihood of millions of people relying on the river for food and income. Due to these activities, according to the Yusof Ishak Institute (ISEAS), a Singaporean-based think tank, “the ecosystem is on the verge of irreversible collapse.”
The economic expansion of the Mekong area has coincided with escalating geopolitical tensions, marked by China's exertion of influence in the region. Through projects like the Belt and Road Initiative (BRI), China has made substantial investments in regional infrastructure projects. Notably, the high-speed train connecting Laos and China has faced criticism for its excessive cost and environmental impact. Additionally, apprehensions have been voiced regarding the geopolitical consequences of China's increasing presence in the area. Some experts speculate that this may be a component of a broader strategy to enhance China's military dominance in the South China Sea. While China is the dominant power in the subregion and controls the Mekong's headwaters with the river under the Lancang-Mekong Cooperation (LMC), the US can help to counterbalance China's growing influence in the region by strengthening economic ties with Mekong countries. This kind of counterbalancing can be implemented through proactive developments in natural resources like fisheries, energy, and agricultural products abound in the region – products that are also vital in the mainland supply chain. Any disruption in the supply chain might have major economic ramifications, particularly in local communities where agriculture is a significant source of both income and poverty reduction.
In its current state, the Mekong Region presents more challenges in economic development, environmental sustainability, and geopolitical stability. However, there are opportunities for countries in the Mekong region and the US can meet those challenges. Aside from the already complex, crowded field of sub-regional architectures, a more inclusive and sustainable approach to development in the region will successfully counterbalance China's growing influence.
To do so efficiently would involve the US prioritizing policies that promote sustainable economic growth and development. This could include investments in clean energy and green infrastructure, which would not only promote sustainable economic growth but also mitigate the impact of climate change on the region. The Lower Mekong Initiative’s (LMI) to achieve equitable, sustainable, and inclusive economic growth among its five partner countries by fostering connectivity and collaboratively addressing regional transboundary development and policy challenges. In 2020, the US launched the Mekong-US Partnership (MUSP) as an extension of LMI to create integrated sub-regional cooperation among Mekong states. Additionally, the United States should work with its allies in the region to develop policies that address trans-border issues such as drug trafficking and labor issues, and migrations.
A great example of this development is the US’ collaboration with Thailand and other Lower Mekong countries to address emerging challenges, such as resource management, transnational crime, transparency and good governance, and human resource development. By enhancing economic cooperation and addressing these challenges, the US and Thailand can improve their relations. Doing this bilaterally along with existing architectures such as the MUSP allows the US to be proactive in strengthening the needs of the local communities in each respective country in the Mekong, particularly alternative or sustainable developments.
Another area that the US can play is to strengthen private sector development. The United States has the world's most inventive and experienced private sector, including a sophisticated financial sector, which may be used to deliver ideas and best practices to countries in this area. By enhancing private sector growth, barriers are reduced, linkages and joint venture partnerships are formed, and mentorship and education opportunities are provided. More broadly, the announcement of the ASEAN-US Comprehensive Strategic Partnership in November of last year demonstrates US commitment to the region to “further promote the stability, peace, prosperity, and sustainable development of the Mekong subregion through shared initiatives under the Mekong-US Partnership (MUSP).”
In conclusion, the rapid economic development from China in the Mekong Region has resulted in a geo-economic frenzy, affecting the livelihoods of the local population. Since “existing Mekong management mechanisms are not omnidirectional multipolar multilateralism, but exclusive institutional arrangements that already are, or will, inevitably become an extension of US-China competition by other means,” mitigating geo-economic competition is crucial. Hence, the US is to be proactive in promoting sustainable economic growth and development by investing in clean energy and green infrastructure to better the needs of local people living in the region. By achieving this, the US is not only able to provide a prosperous future in the wider mainland Indo-Pacific region but also demonstrate its commitment to tackling sustainability challenges alongside Southeast Asian governments under ASEAN. Having reached its one-year milestone, the US-ASEAN Comprehensive Strategic Partnership presents an opportunity to focus on the Mekong subregion which has been overlooked and not adequately addressed, with attention primarily directed at the broader Southeast Asia region as a whole.
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