Last month I wrote a short post on the announcement that China will fund a railway in Laos. Drawing a parallel with French colonialism, which gave birth to the modern idea of Laos, and the recent SEA Games in Vientiane, my point was that Chinese investment might strengthen the Lao Party-State rather than threaten it, as long as it can present itself as conductor of these forces.
One respondent strongly criticised the SEA Games deal which saw China build the main stadium in return for a concession to develop a ‘Chinatown’ in the That Luang marsh, a culturally and environmentally sensitive area near That Luang stupa in Vientiane. This was ‘a political decision which bypassed many impacted government organizations and existing Lao regulations’. Further, ‘Danida and JICA [the Danish and Japanese development agencies] had spent considerable sums to manage the wetlands for their ecological services as well as flood control and wastewater management purposes’. The railway development project, the respondent hoped, would pay greater heed to social, cultural and environmental issues.
These are important concerns. Stepping back, however, what do they say about the role of the Western aid sector in Laos as the Lao People’s Revolutionary Party pursues a development strategy based on regional cooperation financed by the China and Vietnam (which, in 2009, remained the biggest investor in Laos)?
Clearly, the Chinese and Vietnamese governments and investors have fewer concerns for Western paradigms of participatory or sustainable development, and are less encumbered by legal processes and institutions. In Laos, meanwhile, our respondent highlighted the fact that government leaders will act unilaterally, outside of its own checks and balances when it deems this politically or economically necessary. Obviously, this doesn’t bode well for the railway and other major projects.
Since Laos opened up in the late 1980s, it has readily embraced assistance offered by the Western aid sector. But in this radically different development environment, it seems likely this sector’s role is going to be increasingly limited. At the SEA Games, it most striking that, while ASEAN countries, Japan, Korea and, of course China, underwrote the event and, in this sense shared in the unprecedented national success they represented, the West was conspicuous in its absence. No doubt there were principles involved, but for how long will these principles remain relevant?
I guess their “Big Brothers” in Bangkok let them down, eh? Their Big Brothers in Bangkok are more closely related to the Chinese and Vietnamese than to the Tai-Lao of Lao itself, and have “let down” the people of Lanna and Isaan recently as well.
As far as the West is concerned, the loss of very pleasant, comfortable, and well-paid NGO jobs in Lao will be a very tough loss.
The Lao themselves will continue to suffer through, no matter the machinations of their exploiters.
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Yes, what principles are involved? Are you implying that the West’s principles are somehow better than China’s? If so, you ought to list them! I can’t.. It all seems fairly vacuous. What about Thailand whose economic involvement (acc. to the IMF) with Laos easily surpasses Vietnam six fold and surpasses that of China by around a fifth… ? Why would the Lao govt approve anything it would feel delegitimizes their rule?
In Laos, meanwhile, our respondent highlighted the fact that government leaders will act unilaterally, outside of its own checks and balances when it deems this politically or economically necessary. Of course? What government with limited public accountability wouldnt?
The role of the Western aid sector will be increasingly limited because they don’t contribute nearly as much as the surrounding countries to Laos. And nor should they – save being asked. Too many cooks in the kitchen. Western aid to Laos should be focused more on educational exchanges.
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Very good post. It would be a positive development if the West could reevaluate its general attitude towards development. Trying to impose western values (such as feminism and multiculturalism) either by “hard power” or “soft power” really isn’t the way to go. Ideally, there should be a meeting of the minds where Asians and westerners (including “NGO’s”) meet somewhere in the middle, such as around environmental issues and sustainable development and agree to scrap the rest, like most of the “human rights” agenda.
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better that the chinese are doing aid than the west. most of the funds that go into laos are just there to support the NGO staff themselves and members of the communist party. the NGO staff with their western salaries and hardship allowances live in luxury and the communists are enjoying manna from heaven. nobody wants to rock the boat so nobody complains, but nothing is ever done there. they do the same study over and over again and make the same recommendations over and over again. it’s an endless cycle that benefits everybody concerned except the people of laos.
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I worked many years as an international consultant, providing advisory service to mainly MNCs from US and Europe, in third world countries like Pakistan, India, Indonesia etc.
Due to the work, I had many contacts with western aid workers and NGOs. While some of them are genuinely concerned people, most of them are there for the job. Furthermore they carry too much “other” agenda baggage to really do a good job.
What countries like Laos need are really infrastructure development aid, that countries like China is providing.I really do not care about the long term “hidden” agenda and how Laos will be exploited in the future. Building of infrastructure will at least give Laos and its people a chance of bettering themselves – in terms of standard of living. There is o point in talking about “human rights” etc when you and your children are hungry all the time.
Get the roads, rails, clean water, schools, electricity, then the industries will come followed by indigenous demands for better rights etc. When people have satisfied their basic needs and have time o their hands, it will be a natural progression.
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In my opinion, Laos has always been a quiet yet decisive force in ensuring Southeast Asia stability throughout the turbulence of the Cold War period. In the contemporary post-Cold War world, Laos has yet again showing the same objective, that is, to maintain the international stability of Southeast Asia. I appreciate the forward thinking of China-Laos decision makers in foreseeing that, “A preponderance of power on one side, on the other hand, increases the chances for peace, for the greatly stronger side need not fight at all to get what it wants, while the weaker side would be plainly foolish to attempt to battle for what it wants.”
I hope someday I have an opportunity to drop by China town in Laos to enjoy my favorite dish “Tim-Sum and Xiao-Pao.”
Thanks a bunch Laos!
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Very interesting post Simon. It brought to mind one of the classic works on Laos from the 1990s which concludes like this:
Modesty prevents me from providing the source!
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Laos has a long history of accepting aid from China, Vietnam, US, NGOs and pretty much anyone else. With national budgets that were regularly half funded externally. So they know very well how to play the game.
A Laos benefiting from the growth of a Chinese style market economy rather then just depending on NGO aid and tourism would be a great improvement.
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How may central level Lao government officials, research or business people speak Mandarin?
How many official Lao state policy documents are translated into Chinese?
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A recent traveler’s ironic summary of the arrival of modernity in Laos in all its various forms…………
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“THE LAND THAT TIME FORGOT”
Still ruled by a group that calls itself “Socialist’, Laos is often thought of as the “Land that Time Forgot”.
Southeast Asia before it got modernized, educated and partially 1st world, a combo of New Age “Buddhist” tourists and backpackers, and, more recently, sprawling China development projects designed to extract the maximum possible natural resources, agricultural output and economic value.
Two entirely separate Lao worlds, one for the marijuana-dazed New Age Yuppie crowd and “politically correct” (at least in their own eyes), relationship-seeking backpackers wearing organic sandals as they wander reverently around the Disneyland-like New Age “Buddhist” City Center, full of re-constructed Buddhist temples, cozy “fair-trade” coffee/internet cafes, whole earth vegetarian restaurants and sidewalk signs that proudly announce, “Latest Lonely Planet Guides Now in Stock”.
These metrosexual male refugees from the West, apparently in desperate need of being “understood” by their significant female others, some even going so far as to wear men’s skirts in the old Lao tradition, all of them loaded down with Buddhist amulets and sacred wrist strings, and passively led about the Lao capitol by their bigger, stronger, stouter women, looking very much like domesticated urban dogs being taken for sheltered walks, the only thing missing being the Doggy Bags and Pooper Scoopers.
The people of Laos, 80% still scratching out a living from subsistence agriculture in a country where only 4% of the land is arable, 44% with incomes of less than 500 USD per year (about 42 USD per month/10 USD per week) watch with some wonderment at the faux Buddhist “simplicity” of the Western backpacker/yuppie crowd who they know spend hundreds of dollars each week, sometimes thousands of dollars each month to maintain their reverent postures.
“Luckily” for Laos’ impoverished people, the modern version of China has also arrived on this sleepy and economically stagnant scene, bringing with it almost half of all the Foreign Direct Investment presently taking place in Laos.
Basic industrial factories for cement, textiles, food processing and Beer Lao. Gigantic agricultural developments for latex and sugar cane to be exported to China. Big open pit mines and hydroelectric dams. And infrastructure projects like the Asean highway that will connect southwest China to Thailand, Vietnam, Malaysia and Singapore, Mekong River control structures that have lowered the water level of the river by almost 30 feet and created vast gravel pits on either side, electricity distribution, modern water supply systems and centralized underground sewage.
All this activity designed and staffed by thousands of China engineers, accountants, planners and foremen, employing tens of thousands of workers from not only China but also Vietnam, who work 6 days per week, 12 hours per day, under the passive gaze of the unemployed Laotians.
The largest single structure in the whole of Laos is the very large and modern Don Chan Place Hotel, financed by Chinese from Malaysia, built with Vietnamese labor.
Standing astride the Mekong River about a kilometer south of Vientiane, part of a much larger and very ambitious Free Trade Zone/Trade Mart structure that will occupy all of the land between the hotel and the river and serve as a center of trade and trans-shipments for the entire Mekong River from Kumming in southwest China all the way to Saigon and the South China Sea.
On the third floor of the hotel is Laos only “real” nightclub, open from midnight until 3AM, full of China entrepreneurs and engineers, Laotian, China and Vietnamese prostitutes as well as crisply uniformed and suitably humble Laotian service staff along with the small handful of spoiled children of Laos’ tiny ruling group who arrive nightly in their SUV’s and Toyota HiLux trucks, boom boxes blaring the latest hip-hop tunes from LA.
And, oh yeah…over in the corner, a scraggly bunch of Western NGO guys, wives back in the home country, looking with envy at the more free-spending Chinese as they hope to catch the girls left behind.
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What principles are you referring to? Governments from outside the region prefer to spend their money on social and rural development. It’s no mystery that they were ‘conspicuously absent’ from funding a sporting event!
The Lao government isn’t going to turn down economic investment or development assistance. Funding from “western” sources will probably become less important in a relative sense as regional investment continues to grow, but the idea that its days are numbered is a bit off track.
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Just a bit of info on the ‘community’ viewpoint on this discussion. I have a large number of Lao relatives and friends living in Vientiane, and recently did a lengthy trip back to Laos. A number of times we heard the concern expressed by ordinary Lao people (ie. tuk tuk drivers, shopkeepers, houswives) that the Chinese are ‘taking over’ Laos. They refer to the settlement of Chinese families near the stadium (some mentioning numbers up to 50,000 people), the Don Chan Hotel, and especially the number of Chinese traders taking over shops in markets and streets in town. They blame the government for letting the Chinese in and allowing them to take over jobs etc. They are also recognising that Chinese and Vietnamese labour is being used, while young Lao men and women are unemployed.
This is the first time in my ten years involvement with Laos that I have heard anyone mention a specific criticism of the government (apart from some university students I worked with).
While I have grave doubts about the ‘success’ of some Western development programs that have taken place in Laos, I have no illusions that China will be successful where the West has failed.
None of the people I know or met have ever been ‘assisted’ by a Western development program, however you can be confident that the economic growth and investment being encouraged by the Lao Government and Chinese investment is doing them no favours either. In fact, my Lao husband and I noticed a marked growth in the gap between poor and rich. Mainly that the poor have become even less able to participate in the ‘market’ (ie. no increases in wages if they are employed, less unskilled jobs available, increased cost of food, accommodation and petrol, increased cost of education, etc) and the number of people with wealth has taken off! That is great for those wealthy people, but there is definately no trickle down effect happening for those at the bottom.
The previously mentioned idea (neptunian) of encouraging economic growth and not worrying about promoting concepts like ‘human rights’ because people will ask for them once their stomachs are full and they are gainfully employed – not sure if you have ever been to Laos neptunian, but the chances of the people asking the Lao government for their ‘rights’ anytime soon is slim to none – similar to their odds of having full bellies and being employed.
While regional investment in Laos is a positive development, encouraging a Chinese style market economy bodes ill for the equitable distribution of the benefits received from that market economy. A multi faceted approach including well managed tourism, resource and aid activities would be a more considered approach. But the Lao government is generally only interested in the players with the biggest wallet, so China is top of the list.
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@12 (Peta)
Great comment. I was waiting from some insight from the Lao community level on this issue. I traveled through Laos extensively by bicycle in 2000 and noted the proliferation of Vietnamese labour involved in highway construction and other projects, and was surprised by the number of Chinese (both merchant class and developers) that seemed to be busy ‘developing’ northern towns like Muang Xai and Boten. Upon visiting again in 2009 I saw that the country has been transformed, and I suspect not for the better re: the common Lao or minority communities of Laos.
Not meaning to be controversial, but the railway issue brings to mind the railway link to Tibet and the influx of large numbers of Han Chinese into that country. Obviously the Lao situation is very different from the Tibetan, but I can’t help but imagine (if not notice) something of an ‘economic annexation’ in progress, for lack of a better term. Obviously the truth of the situation is far more complex, and as a non-resident of Laos I can only understand so much, but I can’t help but feel for the Lao as they watch their country transform before their eyes and largely not be included in, or benefit from, this transformation.
I should note that I’ve never been an admirer of the rather bloated western NGO sector in Laos, of which Vientiane seems to be home sweet home, as the efficacy of their development strategies has quite obviously been hit and miss (largely miss in my opinion) whilst signs of NGO-sector-associated-affluence abound in that city, or the central district at least. The news of the That Luang wetlands agreement, however, made me sick to my stomach and I’m grateful for the efforts of many (usually smaller) NGOs in the area of environmental monitoring, education & protection in Laos.
Who knows, Laos’ “new era” of development might not be as tragic as I imagine it might be, but my thoughts always drift back to the happy simplicities & simple pleasures that I so often witnessed riding around on my push bike in the country ten years ago. I hope that the wonderful spirit of Laos will remain whilst the people see an improvement, however modest, in their standard of living and general circumstances. Long may the land of a million elephants live.
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Re: Albert–
Ah yes… those “recent traveler’s ironic summaries”– where the (clearly male, Western) writer tries so desperately to differentiate his or herself from those ignorant ‘metrosexual male refugees from the West’ ; the ‘scraggly Western NGO guys’; or the ‘relationship-seeking backpackers wearing organic sandals’.
Quite a genre in itself no?
Go back to your Holden Caulfield… such puerile, faux sophisticate cynicism only betrays your own self-loathing.
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Cheers Peta, interesting perspective. Frank and others – you’re wrong to assume that government thinking is monolithic with regard to the future of development in this country. The debate is not over – like Peta says, plenty of people are worried about Chinese investment, and enough in government for them to step back and re-evaluate the plans for Beung That Luang.
As for those that argue that bringing human rights and ‘feminist’ ideas to Laos is a waste of time. There are plenty of girls, women, ethnic and disabled people and children here who appreciate the solidarity. It’s all about access to resources and power, and perpetuating the Lao male dominance is not doing anyone any favours as the country opens up. Many people have already commented on the huge social changes going on in Laos at the moment, including the rapidly increasing wealth gap. Laos is struggling to adapt on so many levels, and the NGOs and others bring a measure of experience with helping communities to adjust in an equitable and socially sustainable way.
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The Lao Government pays little serious attention to the Western agencies.
To understand how development through regional integration, and perhaps a form of neo-colonialism in Laos will proceed, here is a thought experiment:
Trace through the implications of the below, drawing upon the example of Cambodia.
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*New law gives foreign investors land use rights*
Vientiane Times, 5 Jan 2010
Amendments to the newly approved Law on Investment Promotion are expected to encourage foreign investment in Laos by offering investors land use rights.
Minister of Planning and Investment Dr Sinlavong Khoutphaythoune said last week the law drafting committee had made the amendments with a view to creating an investment environment that would attract more local and overseas investment in Laos .
“We have completed the amendments and hope the president will
promulgate the law within one month,” he told Vientiane Times, adding that local and foreign investors are waiting for the government to enact the law.
The Lao National Assembly approved the revised investment promotion law in July but was unable to put it into practice after concerns were expressed over new investment incentives that allowed foreigners who invest 2.5 billion kip (US$300,000) to have land use rights.
Their view was that investors had a lot of money and would buy
residential land use rights, causing the price of land to increase.
This would mean local people would be unable to own land use rights
because residential land would be unaffordable.
The government decided to amend the law in accordance with the
recommendations of the law makers.
A member of the National Assembly said it was possible for standing
members to amend the law even though the majority of assembly members had already approved it.
Dr Sinlavong said the government decided to raise the minimum amount invested for ownership of residential land use rights in Laos from US $300,000 to US$500,000.
Foreign investors who met this requirement would only be allowed to
obtain residential land use rights in certain areas.
“ Vientiane and provincial authorities will decide on the areas where
foreign investors can obtain residential land use rights,” he said.
Investment Promotion Department Director General Houmpheng Soularay said a foreign investor would be able to obtain land use rights for as long as they continued to run a business in Laos .
Another investment official said the government’s decision to use land use rights as an investment incentive was to promote investment in real estate development, adding that the government wanted to encourage the building of houses but Lao people were often unable to buy new properties.
She said the government wanted to encourage wealthy people to live in Laos because they would also spend their money here.
A number of countries allow foreigners to buy property if they invest
a large amount of money in the country.
Investment officials said the government’s policy to use residential
land use rights as an investment incentive was one of the best ways to
encourage investment in Laos , adding that many appreciate the
peacefulness here and wanted to live in the country.
They also said foreigners find Lao people to be very friendly.
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The comments from Peta and Gareth above resonate with my own experiences in Laos even though I haven’t been there since I did field research in the country in 2003. Lao relatives of my wife who have traveled back more recently have expressed similar concerns over China’s growing role.
For a very brief time in the interim I worked as an audience researcher in US international broadcasting–an odd ideological field in its own right! A long story. Anyway, the interesting happening in the past two years or so has been China Radio International’s (CRI’s) attempts to get a foothold in the Lao media market. They double-channeled the VOA affiliate based in Nong Khai right off the air!
If you listen to the CRI programs online, it’s a little odd–Chinese-accented Lao talking about the doings of the Chinese leadership, for the most part.
Positives and negatives aside, China has an enormous population and seems to be exporting its citizens–and jobs for them to work–all over the world, even Africa.
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True the Lao will probably be invaded by the chinese, True the laid back happy go lucky Lao attitude will disappear like smiles and politeness has disappeared from Thailand… But there the big brother ogre cum father Christmas was Uncle Sam.
Bouddhist principles and wisdom are no match for I Pod, (P)Lexus, Hummers and eagle crested residences.
Sure the Government will decide in favour of whom is givng the best bribe.
Sure Laos like every developing country will redo the very same mistakes the west did before and regrets. ( i.e. pollution, stress, overcrowding etc).
Nobody learns from other peoples mistake, every one learns from own mistakes eventually. Unfortunately, then the damage is done.
But the Lao population will adapt, it always did, the quiet polite peaceful Vientiane is progressively becoming rowdy aggressive, nosy, envious, frowning instead of smiling, even dangerous.
Just Like Thailand and Cambodia before under the other US -western economical and cultural invasion.
That is what comes with 9.5% growth and with increased number of US or Chinese influence to enhance the and praise the Greed that is latent in every human.
That is life, that’s evolution.
I will regret the old Lao, like I miss the times when I did not have to lock my door, fences were meant to keep animals in rather than people out, and when gardens were not surrounded by high prison-like walls topped with barbed electric wires.
…. but I will not pretend to know what is/will be, better for Lao people.
Back in my native country it is supposed to be democracy, but the politicians also take decisions that the majority of people disagree with. “Let them talk” or “shut them up” the two existing forms of govt.
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I lived and worked in Lao for nearly eight years. During this time, I became intimately familiar of the Lao culture and the socio-economic reality there. With this knowledge, I would like to provide a collective -response to the above comments.
The economic status of the people is improving, at least in Vientiane. For example, I witnessed my brother-in-law’s monthly income increase from approximately $30 to $500 in just five years (with the same employer).Is this so for all? No. While the rising tide generally elevates all, it will drown some. This is the unfortunate reality of advancement.
The Lao people will not be changed or tainted to any significant degree by westernization or any other -ization. They are true to being Lao regardless of their new-found love for iphones and the like.
Much of Lao’s environmental treasures are in danger; however, many Western and Asian organizations are doing much to improve that.
Similarly, I disagree that INGO’s have been entirely unsuccessful in making improvements in Lao. A majorly significant one is in transparency and realization of what corruption does to every citizen that I witnessed occur in Lao. Police officers will no longer accept on-the-spot payment for traffic violations (aka bribery) and officials no longer expect “envelopes” for more expedient service. There were many failures in the past, but this new attitude promises much success in the future.
I could say so much more. This, however, will suffice for now.
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Shannon, “Police officers will no longer accept on-the-spot payment for traffic violations (aka bribery) and officials no longer expect “envelopes” for more expedient service.”
Did I read that right?
Am I the only one who caught blindside by that remark?
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Could you elaborate on what you mean by being caught blindsided on my remark, Paul?
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To elaborate on the comment from Trut, and the progression of what would happen to the Lao community and also earlier comments (Author Andrew Walker in Women, Space, and History: Long- Distance trading in Northwestern Laos) here is an interesting account of the current proliferation of regionalistic progression from an abstract entitled EXPANDING REGIONALISM IN THE GREATER MEKONG SUBREGION: CHALLENGES AND CONCERNS FOR THE LAO PDR
By Kearrin Sims, University of Western Sydney, Australia
http://www.icird.org/files/Papers/ICIRD2011_Kearrin%20Sims.pdf
Would marginalizing the Lao people be in it it’s own best interest certainly the Lao PRD agree… ‘As has been shown in this paper, Chinese investments in northern Laos do represent, at one extreme, examples of extraterritoriality (in the case of Boten’s casino complex), while at the same time there are other instances where Chinese private investments are being used by the Lao state to legitimize and empower their own socio-cultural and political objectives.’ Sims, K (p. 18).
Whatever machoism that takes place in Laos between governments ( Lao or Chinese) would be important and prudent to understand what the people want and if that is to be help the Lao people attain dhana or ‘the moveables, the money, the property, the capital, the fortune, the treasure, the gift, the stake, the earnings’ from Grant Evans (1999) Laos Culture and Society citing Reinhorn, Mark (1970) Dictionaire Laotian-Francais then who can argue this?
Then is the progression considered material, diplomatic, or simply economic in nature? New Lao has much to offer but whether this is effectively done is yet to be seen, just as it suddenly appears on the international scene.
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