Problems for the plantations: Challenges for large-scale land concessions in Laos and Cambodia

TitleProblems for the plantations: Challenges for large-scale land concessions in Laos and Cambodia
Annotated RecordAnnotated
Year of Publication2020
AuthorsBaird IG
Secondary TitleJournal of Agrarian Change
Volume20
Issue3
Pagination387-407
Key themesAgriculturalModernization, Environment, FDI
Abstract

Large-scale plantation land concessions are causing an array of serious social and environmental impacts in Southeast Asia as well as in other parts of the world. This paper, however, is focused on the many challenges and limitations that plantation developers face in southern Laos and northeastern Cambodia. These include price and market constraints, activism linked to villagers and others actors, management and financial difficulties, environmental and technical limitations, and limited government support. Investor responses to these challenges and limitations have varied. Some investors still hope that their plantations will succeed, while others have variously attempted to cut their losses and withdraw from failing investments. In particular, this paper considers how problems associated with plantation development often emerge due to fluctuating crop prices as well as poor planning that partially stems from investors adopting a “resource frontier” mindset.
URLhttps://www.researchgate.net/publication/338007620_Problems_for_the_Plantations_Challenges_for_Large-Scale_Land_Concessions_in_Laos_and_Cambodia
Availability

Available for download
Countries

Cambodia, Laos
Document Type

Journal Article

Annotations

Overall relevance: 

This paper examines large-scale land concessions in northeast Cambodia and southern Laos focusing on the challenges and limitations that plantation developers have faced. In doing so, the author suggests that the plantation business is facing serious challenges due to serious financial losses, conflicts with villagers and activists, environmental and technical problems, and a lack of government support at various levels. The findings indicate that these problems emerge due to two “root causes”: i) plantations that take years to develop are usually developed when commodity prices are high but are only mature enough to harvest years later when prices have declined, and ii) the resources frontier mindset that causes rushed and inappropriate planning that eventually leads to serious problems. By looking into the investor’s side that is often neglected in the scholarship on land concessions, this paper provides a better understanding of how and why land concessions often fail to benefit investors, governments, and local people.

Key Themes: 
  • Agricultural modernisation: key ideas and debates relevant to land tenure security - In the early twentieth century, French Indochina (present-day Vietnam, Laos and Cambodia) introduced large rubber estates in Cochinchina (now southern Vietnam) and central Cambodia. The French also considered developing plantations in southern Laos and northeastern Cambodia, but ultimately decided not to due to the region's remoteness. In southern Laos, coffee plantations were the first to be developed with French support.
  • FDI and land access: economic land concessions, contract farming, short term and long term renting - In mainland Southeast Asia, the expansion of rubber cultivation was initially spurred by high commodity prices and perceived low rents for acquiring abundant fertile lands. Fluctuating commodity prices are one of the main factors that affect large-scale concession plantations, which are affected by various factors including market and political decisions.
  • Land and the environment: pollution, deforestation, climate change, conservation zoning - Large-scale plantation land concessions are causing serious social and environmental impacts. Plantation concessions have frequently led to the significant alteration and homogenization of ecosystems and have also often resulted in the loss of land and resources that peasants depended upon for their livelihoods
Research basis: 

This research is part of broader investigations regarding the development of land concession-based plantations in southern Laos and northeastern Cambodia since the 1990s. The fieldwork focused on a number of large-scale plantation concessions in Savannakhet, Xekong, Salavan, Attapeu and Champasak Provinces in southern Laos, and in Ratanakiri and Stung Treng Provinces in northeastern Cambodia. The author observed the conditions of the plantations, and interviewed workers, local people living near the plantations, and company management and government officials. (Provided by Eunbi Ko)