Cooperation between ESCAP and ECO was institutionalized with a Memorandum of Understanding (MOU), concluded on the basis of the Treaty of Izmir and the Terms of Reference of ESCAP, and signed in Istanbul on 7 July 1993.
In the MOU, ECO and ESCAP agreed to cooperate in managing development issues of mutual concern; implementing joint projects, including seminars, workshops and meetings; sharing analytical reports and technical publications; exchanging information and ideas; and providing inputs into their respective subsidiary bodies.
In addition, the two organizations have decided to have annual consultations at the senior professional level with a view to developing joint project proposals.
More specifically, ECO and ESCAP agreed to foster cooperation in the following areas:
The provision of reliable and efficient land transport services has always been crucial for economic integration of the ECO subregion, which includes seven land-locked countries. Cooperation between ESCAP and ECO in this sector goes back to 1993 when ESCAP provided an input into the Outline Plan for the Development of Transport Sector in the ECO region. In order to promote facilitation of land transport at border-crossings, a special ESCAP/ECO seminar for policy makers from the ECO member countries was held in Tehran in November 1994. The seminar considered the implications of accession to the international conventions included in the ESCAP resolution 48/11, "Road and rail transport modes in relation to facilitation measures". As a result, Azerbaijan has acceded to one, Kazakhstan, Tajikistan and Turkmenistan each to four, and Uzbekistan to six conventions (out of the total of seven) listed in the resolution.
The development of "hard" and "soft" infrastructure for trade and investment has been reaffirmed as the priority areas for landlocked countries and transition economies in the ECO subregion in the ESCAP resolution 52/11 "Strengthening of economic cooperation among the south-western members of ESCAP, including the Economic Cooperation Organization member countries".
In the context of this resolution, ESCAP extended cooperation to ECO in formulating a project entitled: "Transport Development in the ECO Region", for funding by the Islamic Development Bank and joint execution by ECO, ESCAP and UNCTAD. The project aims at promoting multimodal transport, facilitating international land transport movement across the subregion, and the development of a legal and regulatory systems for efficient transport.
Another ESCAP project entitled: "Strengthening subregional economic cooperation in trade and investment among the south-western member countries of ESCAP", seeks to assist ECO countries in exploiting new trade and investment opportunities provided by the progressive development of physical infrastructure in the ECO region. The project is implemented in consultation with ECO and funded by the Government of the Netherlands and the Islamic Development Bank on a cost-sharing basis.
A study commissioned under the project will focus on the requirements of ECO countries in "soft infrastructure" for trade and investment, including border and non-border measures. With respect to non-border measures, the study will look into the legal and administrative regimes influencing trade and investment in ECO countries with a view to advocating greater conformance in policies and business practices. The study is to be followed by a subregional seminar on the application of concepts and designs which have the potential of increasing the flow of, and improving access to, commercially viable information. Particular attention will be given to networking arrangements and facilitation measures, such as the use of standard formats, software, and other information requisites adapted to the particular needs of small and medium scale enterprises.
ECO has participated in the annual consultations among the Executive Heads of Subregional Organizations and ESCAP since their first meeting in Bangkok in February 1994 and hosted the third consultative meeting in Tehran in May 1997. Participation of ECO in these consultations has opened new avenues for cooperation not only with ESCAP, which coordinates and provides substantive servicing for these meetings, but also with other subregional organizations. A case study entitled: "Promotion of Trade and Investment Cooperation between ASEAN and ECO", and undertaken by ESCAP at the joint request of Secretaries-General of ECO and ASEAN, was submitted to the third consultative meeting. Another study prepared by ESCAP for the same meeting suggested a framework for promoting economic and institutional cooperation among the various subregions in Asia and the Pacific.
The meeting brought into focus certain areas where ECO could benefit from the multidisciplinary expertise of ESCAP and its ability to provide backstopping services in the execution of subregional projects. Thus, ECO attaches great importance to sharing in the experience with private sector involvement in the development and operation of infrastructure projects as in the Asia Infrastructure Development Alliance promoted by ESCAP. Taking into account the ongoing consultations between ECO, ESCAP, UNCTAD and ECE, the ECO secretariat suggested the following five main areas to be covered under joint projects: (a) corridor studies to determine the non-tariff and physical impediments to the free movement of transport; (b) promotion of accession to international conventions in the field of land transport; (c) development of transport facilitation agreements; (d) human resources development for freight forwarding and multimodal transport; and (e) the implementation of the Advance Cargo Information System (ACIS) programme in selected countries.
With regard to trade and investment, opportunities for technical cooperation between the two organizations are being explored in developing a subregional database, strengthening inter-subregional financial linkages, using training facilities, institution/capacity building, managing trade policy issues, replicating successful experience gained in "growth triangles", and inventorying and monitoring restrictive trade practices.
ESCAP is also seeking cooperation with ECO in the implementation of a project relating to investment promotion for the mining industry in the ECO countries. The objectives of the project were determined in the course of a mission of ESCAP's Regional Adviser on Mineral Policy and Mineral Economics to ECO headquarters, undertaken at the request of the Secretary-General of ECO in December 1996, and include: economic assessment of the mineral potential, identification of prominent targets for development and trade, and review of the mineral development policies in the ECO countries. These and other issues will be discussed at an international "round table" conference.
ECO has already approached the Islamic Development Bank for funding of the project. The Bank has expressed interest in joining a group of organizations and agencies who would participate technically and financially in the project and thus back up its credibility.