Both initiatives are aimed at promoting the development of index bond funds in the regional markets and, at the same time, enhancing both domestic and regional bond market infrastructure. This is a very concrete initiative, involving the allocation of funds by a considerable number of central banks. These three sets of initiatives use differing approaches and a variety of tools. But they have common aims. One important aim is to identify - through individual studies, experience-sharing, and the practice of fund management - where obstacles exist and how best standards and practices can be harmonised to facilitate cross-border financial transactions within the region. A separate, but parallel  BIS Review 40/2004  3  consideration is the development of financial infrastructure. A number of studies have been carried out to explore the feasibility and desirability of establishing region-wide infrastructure, such as a regional rating agency and regional settlement and payment systems. Apart from the many technical complexities, any proposals for infrastructure on a regional dimension would require thorough discussion among different jurisdictions and rigorous assessment of business viability and impact on the market. Long planning time would therefore be expected before any conceptual proposal could be put into practice. Effective financial infrastructure across the region is a precondition for debt market development within the region. Without it, all of the other initiatives I have described would be about as useful as buying aeroplanes without having the airports in which to land them.
Prasarn Trairatvorakul: The ASEAN Economic Community’s impact on the Greater Mekong Subregion’s economies Keynote address by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, at the Euromoney Conference “The Greater Mekong Investment Forum”, Bangkok, 12 June 2014. *  *  *  Excellencies, Honorable Speakers, Distinguished Guests, Ladies and Gentlemen, 1. It is an honor for me to be back here at the Euromoney Greater Mekong Subregion Investment Forum. Let me thank the organizers for inviting me to speak at such a distinguished forum once again. This conference takes place at an important juncture as we are on the eve of the ASEAN Economic Community which will be launched at the end of next year. My remarks today will focus on how the AEC will have meaningful impacts on the GMS economies. Also, I will share with you some thoughts on how we can overcome challenges to capitalize on the region’s growth and prosperity. 2. The GMS has become one of the most vibrant regions in the world, transforming itself into a new investment frontier. The global attention on this region is reflected in the large inflows of foreign direct investment, which have increased dramatically in the past two decades. According to World Bank statistics, the FDI inflows to the CLMV countries over this period increased forty-fold to around 13 billion dollars in 2012.1 This wealth of investment opportunity has been underpinned by the smooth transition to market-based economies, the rich and diverse resources as well as the improvement of intra-regional logistics. 3.