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Article

6 Mar 2020

Author:
Nikkei Asian Review

Laos: Indigenous tribes express concerns over Chinese investment

“Chinese investment upheavals anger Laos' indigenous tribes”, 5 March 2020

… Nowadays, China is its [Laos’] largest foreign investor and aid provider in a series of infrastructure projects, claiming to change local life for better.

But critics have raised serious concerns about the impact of the projects, pointing at their gigantic price tags and environmental issues, among others…

In Laos…  it is agriculture that remains the largest branch of the economy in the northern provinces, accounting for almost 50% of their GDP…

Since time immemorial, tribal people have been practicing slash-and-burn agriculture…

… This tradition remains so deeply rooted among the communities, that even low productivity does not force them to seek alternatives…

… With 40 dams already completed and 50 scheduled by 2020, Laos harnesses its natural resources on an enormous scale, at the same time disturbing the ecosystem. Beijing is engaged in half the hydropower projects that, according to environmentalists, threaten the fishermen's livelihoods.

At first, the arrival of the Chinese was greeted with some optimism. Tribal people admit it heralded modernization and a new wave of opportunities to help lift people out of poverty…

Chinese businesses have rushed to plant other crops like banana, watermelon and sugar cane, but misbehavior from some, who have been accused of not paying on time and dumping trash, has caused uproar in tribal communities which had previously boasted of being conflict-free…

Meanwhile, an increased number of villagers suffer from a variety of cancers, according to statistics from local hospitals. In 2017, the Lao government declared the shutdown of all Chinese banana farms in several provinces, encouraging growth of alternative crops. "But the lack of rigorous control over fertilizers continues," Khong Deng says. "Local authorities facilitate the creation of new plantations without environmental impact assessments."…  

…"The Chinese promised to purchase crops from us, but did not want to sign a written contract," says the Akha tribal leader. "Because the Chinese market has unlimited potential, many rely on the buyers that visit the area. It was a shortsighted approach and we were left with unsold crops."…

Laotians have proved that their opposition to Chinese investment could reverse the Communist Party decision. In 2008, Deputy Prime Minister Somsavat Lengsavad was forced to deny plans to build a Chinatown in Vientiane…