the public and private sectors, and cooperation to overcome vulnerability as important issues for cooperation between Japan and the Mekong countries in the future. Further, taking into consideration the Action Plan for “A Decade toward the Green Mekong” Initiative that was adopted at the Mekong-Japan Summit Meeting in 2010, the Green Mekong Forum which was co-hosted by Thailand and Japan in June 2011 received high praise from the countries of the Mekong region.

In addition to promoting such efforts, Japan provides support in promoting ASEAN economic integration, with poverty reduction and narrowing the development gap within ASEAN. Further, at the ASEAN Summit Meeting held in October 2010, ASEAN adopted the Master Plan on ASEAN Connectivity (see the figure on page 19) to enhance economic integration within the region by improvement of the infrastructure, the flow of goods and people-to-people exchange. Japan utilizes ODA and public-private partnerships to provide proactive assistance to put the Master Plan into action. Moreover, Japan has been contributing the Mindanao peace process in the Philippines, implementing socio-economic development projects in the conflict affected areas in Mindanao, and assistance for nation-building in Timor-Leste.

Japan has strengthened its partnership with the Asian Development Bank (ADB), which works on a variety of regional cooperative initiatives in the Asia region. For example, Japan contributed up to 25 million over 5 years to the ADB for trade facilitation in ASIA. Japan has also strengthened its partnership with the Economic Research Institute for ASEAN and East Asia (ERIA), an international research organization in East Asia, including cooperation toward implementation of the Comprehensive Asian Development Plan and the Master Plan on ASEAN Connectivity. Further, on the financial front in particular, Japan has taken the lead in implementation of the Chiang Mai Initiative (CMI $ ^{*} $ ) within the ASEAN+3 (Japan, China, South Korea) framework. This initiative designed to prevent a chain reaction of crises and its expansion by means of providing short-term foreign currency financing for countries in which critical circumstances have arisen, such as obstacles arising in their foreign currency payments due to precipitous outflows of capital. Moreover, the Chiang Mai Initiative Multilateralization Agreement came into effect in March 2010, changing the former CMI framework, which was based on an agreement between the related authorities of two countries to an agreement between multiple countries, in order to make support faster and smoother. This enabled faster response to the international balance of payments within the ASEAN+3 regions as well as to the difficulties with liquidity in short-term financing, thereby strengthened the capacity to deal with the risks and challenges of an expanding global economy.

Further, in addition to the CMI, Japan has taken the lead in efforts to foster an East Asian bond market. In particular, in May 2010, the decision was made to establish the Credit Guarantee and Investment Facility (CGIF) as an ADB trust fund, to guarantee bonds issues by Asian companies in local currencies, with initial capital of $700 million. Japan has contributed to CGIF $200 million through the Japan Bank for International Cooperation (JBIC).

The Second Mekong Friendship Bridge constructed through Japan's assistance as part of the "Second Mekong International Bridge Construction Project" in Laos. It is expected to develop as an east-west economic corridor connecting Thailand and Laos. (Photo: Shinichi Kuno/JICA)