19 November 2018by Chris Wylie Laos Development7 Comments Introduction Development in Laos is broad and deep - with almost all of it being built and much of it funded by China. Within just a few years rails, roads and dams are changing the character of Laos from a country lost in the backwaters of time to a country lost in the march of progress. The gains are greater access to health and educational resources and an increase of material living standards. The losses are environmental, social and political. In addition, Laotian politicians are some of the most corrupt in the world and for a few million in kickbacks they are signing their country up for insurmountable debt to finance their part of the deal. Rail Currently Laos has no rail infrastructure. This is about to change big time. China is building a 420 km rail connection from Laos’ northern Mohan-Moten border area with China (where it will connect to Kunming), through Luang Prabang to Vientiene on the border with Thailand (where it will connect to Bangkok and on to Singapore). Over 60 percent of the route is bridges and tunnels! The $6 Billion USD project was started in the summer of 2016 and is estimated to be completed by the end of 2021. The China-Laos railway is designed to operate at speeds of 160 km per hour. From Kunming to Luang Prabang will take 6 hours. Luang Prabang on to Vientiane in another 2 hours or less. Currently it takes between 10 and 14 hours to travel from Luang Prabang to Vientiane by bus. Over 4,000 families are already affected by their land being seized, however as of July 2018 compensation had not yet been paid. The China-Laos rail project is part of the much greater, $1 trillion USD Road and Belt Initiative, discussed further below. http://jclao.com/tag/laos-china-railway/ http://jclao.com/the-great-rail-dilemma-of-laos/ http://www.atimes.com/article/china-train-project-runs-roughshod-over-laos/ Roads Although our experience in the ‘back country’ was limited, in all the places we visited roads had arrived in just the last few years. While this brought greater access to health and educational resources, greater access also brought in beer and Chinese products. Change is in the air. The new roads are crucial for communities along the rivers since dams are causing the breakdown of long standing river boat transportation systems. Dams Dams along the Mekong and its tributaries are a major concern. Dam under construction between Muang Khua and Nong Khiaw. The Mekong River originates in the Tibetan highlands and runs through China, Myanmar, Thailand, Laos, Cambodia, and Vietnam before flowing into the South China Sea. It is home to the world’s largest inland fishery, with an estimated 25 percent of the global freshwater catch. Sixty million people make an income off the fish, as well as crops grown along the Mekong River and its tributaries. China started damming the Mekong in the early 1990s, but the main river has stayed undammed largely due to concerns and disagreements between the four member nations of the Mekong River Commission, which was established in 1995. Energy needs and the financial incentives of hydropower, however, caused land-locked Laos to announce more than a decade ago that it would build nine dams on the main river, as well as dozens of new dams on Mekong tributaries. Laos exported close to $1 billion in electricity in the first nine months of 2017. Cambodia and Vietnam soon launched their own dam projects. All tolled, 134 projects are scheduled just for the lower Mekong basin in additional to dozens already completed. A study by the Mekong River Commission released earlier this year showed that Mekong fish stocks could fall by up to 40 percent as a result of the dam projects. It also predicted a 97 percent reduction in the amount of sediment flowing downstream, which would lower soil fertility and hamper agriculture. The Nam Ou river, that we boated down, used to have boat transportation services from Pongsali near the Chinese border to Muang Khua, Muang Khua to Nong Khiaw, and Nong Khiaw to Luang Prabang. In just the last 5 years dams have become operational on the Pongsale to Muang Khua and Nong Khiaw to Luang Prabang segments, bringing an end to river boat transportation. Only the Muang Khua to Nong Khiaw section still provides boat services, but a damn under construction on that stretch will be completed in 2020 and close a colorful chapter of history along the Nam Ou to a close. Dozens of villages have been or will be submerged. This home in Muang Khua is about 25 meters higher than the river and is marked as condemned because it will be flooded by the dam under construction 30 kilometers downriver. In July 2018 a dam burst in southern Laos, with over a hundred people killed or missing. View of the Nam Ou river from Muang Ngoi, which is between Muang Khua and Nong Khiaw. https://en.wikipedia.org/wiki/Hydropower_in_the_Mekong_River_Basin https://www.nationalgeographic.com/environment/2018/08/news-southeast-asia-building-dams-floods-climate-change/ http://www.pattayamail.com/featured/laos-dam-disaster-leaves-24-dead-scores-missing-217399 Road and Belt Initiative (BRI) The Belt and Road Initiative (BRI) is a strategy adopted by the Chinese government involving infrastructure development and investments in countries in Europe, Asia and Africa. "Belt" refers to the overland routes whereas "road" refers to the sea routes. The Chinese government calls the initiative "a bid to enhance regional connectivity and embrace a brighter future". Observers, however, see it as a push for Chinese dominance in global affairs with a China-centered trading network. Beijing’s Belt and Road Initiative (BRI) has been called a Chinese Marshall Plan, a state-backed campaign for global dominance, a stimulus package for a slowing economy, and a massive marketing campaign for something that was already happening – Chinese investment around the world. Over $200 Billion USD has been spent so far with the final cost over $1 trillion USD when complete. However, contributions from and loans to partner countries have resulted in even greater sums flowing back into China via construction contracts. It is interesting to note that the BRI initiative to establish a dominant global trade and cultural infrastructure will cost far less than the US war on terror. The US has shelled out $2.4 trillion USD as of 2017 and there is no end or gain in sight. Initially the BRI will handle traditional freight. However, China is now a world leader in green and alternative energy technologies, especially solar cells. Through the BRI it is well-placed to be the dominant player in facilitating the transition and roll-out of renewable energy infrastructure across Eurasia. This is especially so since the Trump administration has ceded American influence in international climate politics through its repudiation of proactive climate policies. In addition to leadership on international climate action, through strong armed trade policies and by carrying the debt some countries, such as Laos, are expected to default on China can develop a significant soft power cache. China’s BRI announcement is also reflective of the relative decline of the US as the world’s pre-eminent power. China has helped finance at least 35 ports around the world in the past decade, according to a Times analysis of construction projects. https://en.wikipedia.org/wiki/Belt_and_Road_Initiative https://www.theguardian.com/cities/ng-interactive/2018/jul/30/what-china-belt-road-initiative-silk-road-explainer https://theconversation.com/the-belt-and-road-initiative-chinas-vision-for-globalisation-beijing-style-77705 https://www.economist.com/briefing/2018/07/26/china-has-a-vastly-ambitious-plan-to-connect-the-world How China Got Sri Lanka to Cough Up a Port Sri Lanka was unable to make payments on the debt it had taken on from China to finance a massive port in Hambantota. Under heavy pressure and after months of negotiations with the Chinese, the government handed over the port and 15,000 acres of land around it for 99 years in December of 2017. The case is one of the most vivid examples of China’s ambitious use of loans and aid to gain influence around the world — and of its willingness to play hardball to collect. The debt deal also intensified some of the harshest accusations about President Xi Jinping’s signature Belt and Road Initiative: that the global investment and lending program amounts to a debt trap for vulnerable countries around the world, fueling corruption and autocratic behavior in struggling democracies. https://www.nytimes.com/2018/06/25/world/asia/china-sri-lanka-port.html Inside China's audacious global propaganda campaign Beijing is buying up media outlets and training scores of foreign journalists to ‘tell China’s story well’ – as part of a worldwide propaganda campaign of astonishing scope and ambition. https://www.theguardian.com/news/2018/dec/07/china-plan-for-global-media-dominance-propaganda-xi-jinping Comments (7) franklyn https://www.bloomberg.com/opinion/articles/2019-01-09/china-1mdb-link-gives-belt-and-road-an-opportunistic-look?srnd=opiniona counter opinion to the Belt and Road initiative articles. 3 years ago Byron Meador p.s., did you see the video footage of that dam bursting in Laos in July? Holy canole, check it out if not. 3 years ago Byron Meador p.s., did you see the video footage of that dam bursting in Laos in July? Holy canole, check it out if not. 3 years ago Byron Meador Great investigative reporting, Chris & Simone! I think you missed your calling, maybe 60-Minutes is hiring :). I love learning while I read, and you didn't disappoint, though disappointing is a huge understatement when referring to Chinese influence all around the world, but especially in this corner of S.E. Asia. We just got back from Luang Phrabang and can confer with everything in your piece. The actual town of Luang Phrabang is protected by its UNESCO World Heritage status, but just outside of town all the construction is in your face obvious. The locals say Chinese are buying up everything along the BRI route that they can. As in Thailand, foreigners can't buy land outright, but businesses and other loopholes make for plenty of exceptions. I have no problem with the U.S. losing its status around the world (let someone else be #1 for a while), but knowing China's motivation for money over anything else (like environment or local culture) leaves me with a bad feeling for this beautiful country. Sigh. 3 years ago Ned McDaniel I was in Panama a couple years ago. I noticed that a lot of the little local stores were owned and operated by Chinese.(they will be the voting majority in less than 10 years) It was interesting to note that they operate like the company store of the turn of the century. The locals could buy food on credit with interest so their concept of trade with a debt trap goes all the way down the scale. In fact, they hold a lot of IOU's from the US government. The book 1421 was an interesting read and it was from there that I realized China would take over the world through trade. Trump bashing is easy because he sets himself up but his efforts to right things now is probably to late. There will be a trade agreement but our world dominance is on its way to faded history. I am so glad ya'll are taking this adventure and learning what is real in the world because the media here wants us to live in their made up paradigm. Eventually reality will shift it and it will be a shock to the drones. 3 years ago Fuji Thx Wylie for the informative piece. Quite an education for Simone I bet! The dams--bummer! China's influence--bummer! Dams and Hydro power are seen as a big modernization in the Balkans too. We've been very disheartened in our tourism project in Albania because of the numbers of dams destroying streams and habitats!We've seen too much of China's influence too. And as you mention, the "debt trap for vulnerable countries" is SOOOO apparent! In Kenya & Tanzania, they are building a huge cut-through road (probably rail too? ask Amy Haak) right through the Serengeti to get minerals from the interior to the port of Mombasa to be sent to China. While other countries might also do things like this (Aussie's, Canadians--"extractionist" countries), the others at least try and give jobs to local people and build capacities. (You know, international development projects, with strings attached.) The Chinese, don't care about human rights or about help local economies or the people/things of that nature. They give the corrupt politicians the money and they get access! We saw Chinese workers, with Chinese cement, Chinese trucks and materials, building roads in Kenya without a single Kenyan involved! So Sad! Sorry I'm on a rant... your writing piece got me fired up! 3 years ago karen knudtsen Wow, so informative, Chris. Very interesting as well. China's influence around the world is a marked contrast to the decline of US global influence and investment. Trump's administration is incredibly short-sighted, a nice way of saying stupid. You and Helene are giving your girls a education no amount of money could buy! 3 years ago Comments are closed.