TAILIEUCHUNG - Rubber Planting in Laos: Local Approaches to New Challenges

A well-known and important exception to the superior performance of owner-operated units of production over those relying on wage labor is in plantation crops, where economies of scale in processing and the need for close coordination of production and processing can make plantations more efficient. The need for quick processing of some harvest products to avoid deterioration, often within 24-48 hours, requires tight adherence to delivery and harvesting schedules and transmits economies of scale in processing to the production stage (Binswanger and Rosenzweig 1986). For this reason, sugar factories and palm oil mills usually run their. | Universitat Bielefeld Working Papers in Development Sociology and Social Anthropology Bielefeld University Faculty of Sociology . Box 10 01 31 33501 Bielefeld Germany Tel. 49-521-106-6944 Fax 49-521-106-2980 http tdrc Svenja Haberecht Rubber Planting in Laos Local Approaches to New Challenges Working Paper no. 365 Bielefeld 2010 ISSN 0936-3408 Rubber Planting in Laos Local Approaches to New Challenges1 Svenja Haberecht A steadily growing demand for natural resources especially in so-called Newly Industrialized Countries NIC implies far-reaching changes taking place within the global field of development cooperation and increasingly challenges regional power balances. This is especially true for the relationship between Laos labeled as a Least Developed Country LDC and its economically and politically powerful neighbor China. Since the late 1990s when China began taking a more active role in Laos Chinese investment and aid to Laos has skyrocketed. At this point Chinese companies are involved in all sectors of the Laotian economy from hydropower and mining to agriculture and services. Rubber plantations form a considerable part of this investment especially in the northern parts of Laos where several Chinese companies are implementing rubber planting projects. Of the 26 million USD China has invested in northwestern Laos 20 million USD has been invested exclusively in rubber. Exports from Laos to China are expected to increase mainly due to rubber with both countries seeking to increase trade profits to at least 1 billion USD over the next few years Asia Sentinel Consulting August 2 2008 . This rubber boom Shi 2008 has strongly reshaped the economy and social life in Laos. But is Laos ready for such a fundamental change This paper analyzes the changes and local dynamics set in motion due to expanding Chinese investment in the rubber sector in the remote area of North Laos. Therefore it takes a closer look at a rubber project currently being .

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