Header Page of 132 MINISTRY OF EDUCATION AND TRANING MINISTRY OF EDUCATION AND SPORT NATIONAL ECONOMICS UNIVERSITY NATIONAL UNIVERSITY OF LAOS VIETNAM LAOS HOUNGPHET CHANTHAVONG ANALYZING IMPACT OF RUBBER PLANTATION ON POVERTY REDUCTION, LAND OWNERSHIP AND NATURAL FOREST RESOURCE IN NORTHERN LAO PDR Specialty : Economics Agriculture Code : 62.31.1001 Supervisor: Assoc.Prof.Dr Nguyen Thi Ngoc Huyen A dissertation Submitted to the National Economics University, Vietnam and National University of Laos in fulfillment of requirements for the degree of Doctor of Philosophy in Economics HANOI, 2013 Footer Page of 132 Header Page of 132 i DECLARATION Being aware of legal liability I declare, that the diploma thesis was written by myself and it does not include any contents obtained in the illegal way I also declare that the presented thesis was not a subject of any university professional title’s proceedings previously In addition I declare that the presented version of the thesis is identical with the electronic version included The author of the thesis HOUNGPHET CHANTHAVONG Footer Page of 132 Header Page of 132 ii ABSRACT This examined the economic impacts of rubber plantations on rural people’s livelihoods and forest resources Sing district of LuangNamTha Province was selected for field data collection and different techniques for data collection at the field level were designed focusing on qualitative data analysis The outcome from the field data analysis was shared with the government officers at both provincial and national levels The results of the study illustrated that rubber plantation have both positive and negatives impacts The rubber planting provides alternatives on land use opportunity for the upland cultivators and it will also contributes to the achievement of forestry strategies implementation to increase the forest cover in the future The negative impacts happened to the livelihoods of local people, especially during the awaiting period for latex tapping However, those impacts will decrease when income can be generated from the rubber latex The study revealed that immediate technical assistance at the provincial and district level are required Natural resource management and land use planning need to be improved to minimize the impacts of wide spreading of land conversion Footer Page of 132 Header Page of 132 iii ACLNOWLEDGEMENT First of all, I would like to extend my deep appreciation to PGS.TS.Nguyen Thi Ngoc Huyen for her advices and supports during my research activities till its completion I am grateful for Prof.Dr Tran Tho Dat Vice President of National Economics University of Vietnam and Assoc.Prof Dr Lai Phi Hung, the coordinator for Lao-Vietnam PhD program for his effort facilitating during my study I would like to express my deep gratitude to all relevant staffs of the Faculty of Forestry, National University of Laos who have been very helpful in facilitating my study I am very grateful to Prof Dr.Soukkongseng Saignaleuth, the President of National University of Lao PDR for his support and allowing me to enroll in this study program I have also received impressive supports from my collaborating institutions, including: the Department of Forestry, the Departments of Investment and Planning (Ministry of Planning and Investment), the National Economic Research Institute and the National Land Management Authority They have kindly provided me very good sources of relevant information and data Moreover, the government officials in the province of LuangNamTha and Sing District provided me worthwhile collaboration and assistance during my field research All visited families and farmers, who were very active involved in giving me accurate information and very much appreciated for their devoted time Finally, unforgettable, I would like to give special thanks to my colleague at the faculty of Forestry especially Dr Sithong Thongmanivong, the director of Natural Resource Management and Climate Change for his support reviewing my writing I would also like to thank to my whole family members they are always support me to continue my study, especially my loved wife and daughters Footer Page of 132 Header Page of 132 iv TABLE OF CONTENTS DECLARATION i ABSRACT .ii ACLNOWLEDGEMENT iii TABLE OF CONTENTS iv ABBREVIATION vi LIST OF FIGURES viii CHAPTER 1: THESIS INTRODUCTION 1.1 1.2 Rationale Objectives 1.3 1.4 Research Questions Scope of the study and study area 1.5 Research Methodology 1.5.1 Research model 1.5.2 Data Collection Method 1.5.3 Data Collection Process 11 1.5.4 Data profile 12 1.5.5 Data processing 15 1.6 Research Contribution 15 1.7 Research Limitation 16 CHAPTER 2: ANALYTICAL FRAMWORK OF ANALYZING IMPACT OF RUBBER PLANTATION ON POVERTY REDUCTION, LAND OWNERSHIP AND NATURAL FOREST RESOURCE 17 2.1 Basic issue of impact analysis 17 2.1.1 Impact assessment 17 2.1.2 Basic theory of impact evaluation 18 2.2 Rubber Plantation Development 18 2.2.1 Overview of Rubber Plantation Development 18 2.2.2 Factors Determining Rubber Plantation Development 22 2.2.3 Plantation and Economic Development 23 2.3 Political and Legislation Factors on rubber plantation development 25 2.3.1 Government Strategies for rubber production in Lao PDR 25 2.3.2 Laws related to plantation development 25 Footer Page of 132 Header Page of 132 v 2.3.3 Policies related to plantation development 29 2.3.4 Policies on Land Ownership 32 2.3.5 Forest Land Conversion and Concession for Plantation 34 2.3.6 Policies impacts on plantation development 46 2.4 Existing approaches for analyzing impact of rubber plantation on poverty reduction and land ownership and natural forest resources 50 2.4.1 Impact of Rubber Plantation on Poverty Reduction 51 2.4.2 Impacts of Rubber Plantation on Land Ownership 55 2.4.3 Impacts of Rubber Plantation on Natural Resource 56 2.5 Lesson learn from Vietnam 58 CHAPTER 3: ANALYZING IMPACTS OF RUBBER PLANTATION ON POVERTY REDUCTION AND LAND OWNERSHIP AND NATURAL FOREST RESOURCES IN NORTHERN LAOS 61 3.1 3.2 Overview of Sing District, North of Laos 61 Rubber Introduction in Northern Laos 63 3.3 Factors Determining Rubber Plantation Development in Northern Laos 65 3.3.1 Lao Government’s Foreign Investment Promotion Policy 66 3.3.2 Regional Market Influences 67 3.3.3 Villagers’ Motivation 68 3.4 Impacts of Rubber Plantation on Poverty Reduction, Land Ownership and Natural Forest Resource in Northern Laos 70 3.4.1 Impact on Poverty Reduction 70 3.4.2 Impact on land ownership 76 3.4.3 Impact on Natural resources 79 3.5 Reason of negative impacts 83 CHAPTER4: CONCLUSION AND RECOMMENDATION 87 4.1 4.2 Conclusion 87 Recommendation 89 4.3 Implication 92 REFERENCE 94 ANNEX 99 Footer Page of 132 Header Page of 132 vi ABBREVIATION Lao PDR Lao People’s Democratic Republic DAFI Development of Agriculture, Forestry and Industry NAFRI National Agriculture and Forestry Research Institute FRC Forest Research Centre PAFO Provincial Agriculture and Forestry Office DAFEO District Agriculture and Forestry Extension Office IRSC International Rubber Study Group WWF World Wide Fund FDI Foreign Direct Investment CPI Committee Planning and Investment FAO Food and Agriculture Organization MAF Ministry of Agriculture and Forestry NTFPs Non-Timber Forest Products PPID Provincial Planning and Investment Division SEIA Social Environment Impact Assessment NLMA National Land Management Authority MPI Ministry of Planning and Investment MOD Ministry of Defense CPMI Committee for Promotion Management of Investment DOF Department of Forestry GTZ German Technical Cooperation Footer Page of 132 Header Page of 132 vii LIST OF TABLES Table 1.1: Participant criteria 13 Table 1.2: Number of interviewees in each studied village 13 Table 1.3: Number of interviewees in each studied village by economic status 14 Table 2.1: Land use types and their responsible body 26 Table 2.2: Scope permission for land lease and concession 38 Table 2.3: Differentiation between land lease and concession 39 Table 2.4: Plantation investment projects in provinces 44 Table 2.5: Investment areas before and after land concession project in Barjieng and LaoGnam district 48 Table 3.1: Rubber plantation in hectare by provinces, in Laos 64 Table 3.2: Rubber Plantation in five provinces in the North, Laos-2006 65 Table 3.3: Hardyao Village Land Zoning, 2005 and 2011 78 Footer Page of 132 Header Page of 132 viii LIST OF FIGURES Figure 1.1: Map of Sing District Figure 1.2: Conceptual framework of the research study Figure 2.1: Bottom up concession flow 41 Figure 2.2: Top down concession flow 43 Figure 3.1: Willing of households in rubber plantation investment and involvement .69 Figure 3.2: Main income sources of visited villagers, categorized by socioeconomic status 71 Figure 3.3: An increase in rice areas in Sing district in 1999 and 2009 72 Figure 3.4: Cost of rubber products before exporting 73 Figure 3.5: Comparing rubber incomes among three different groups 74 Figure 3.6: Livelihood improvement resulting from rubber plantation expansion 75 Figure 3.7: Comparing GDP growth in LuangNamtha province, 2003 to 2008 76 Figure 3.8: Percentage of forest and land use changes between 1991 and 2004, Sing district 80 Figure 3.9: Rubber Plantation Area in 2006, 2007 and 2010 (Planned), Sing district 81 Figure 3.10: Comparing Rubber Plantation Area in different districts, 2002 to 2008 81 Figure 3.11: Map of Sing’s Land Use and Forest Cover 2002 83 Footer Page of 132 Header Page 10 of 132 CHAPTER THESIS INTRODUCTION Sustainable forestry and land use to promote social and economic development is a key component of development policy in many developing countries Putting in place the right combination of resource use, industrial development policies to meet these goals is a complex policy challenge This thesis analyzes Impacts of Rubber Plantation on Poverty Reduction, Land Ownership and Natural Forest Resource in Northern, Lao PDR using in-dept interview technique for data collection as well as using conduction analysis to produce the results This chapter provides an overview of the thesis and its structure It begins by discussing the problem statement of the research, followed by its rationality, objectives, questions, scope, research site, contribution and limitation of the present study It then outlines the structure of the study 1.1 Rationale A demand for rubber production has grown worldwide significantly over the past decades due to rapid progressive economies of China and India Global rubber consumption has risen up to 5.9% in average annually since early 2000s (Douangsavanh, Thammavong& Noble 2008 &Vongkhamor, S et al 2007) Although the market for rubber in industrial nations is more stable and unlikely expected to increase, rubber is extremely increasing in "New Asia emerging economies" including China, India and other the ASEAN countries In 2003, China’s rubber imports shot up almost 24% (Raintree 2005) This has created opportunities for, then, rubber plantation programs to be largely invested in potential rubber producing countries in order to supply the rubber market demand In Lao PDR, historically, rubber was first introduced by French planters in Champasack Province (in 1930) during the colonial period After that, more than 50 Footer Page 10 of 132 Footer Page 118 of 132 Paddy land d) c) b) area a) Agricultural f) 109 Header Page 118 of 132 Footer Page 119 of 132 area Residential land Plantation c) b) a) Land use zones resources? use the land/ rights? cannot Who Who has user use? ones? the use? Which the about to there restrictions Are decides Who 110 outsiders)? (to be sold/ leased Can the land be inherited? Can the land the land? Who allocates certificates? Existing Header Page 119 of 132 Footer Page 120 of 132 b) a) Others e) d) 111 Header Page 120 of 132 Header Page 121 of 132 Questions Answers b) Decision making Who is making main decisions now? Is this different from the past? Who is enforcing the rules and regulations applying to the use of land and resources? Has this changed since the time of the LUA, relocation, in the past 10 years etc.? Do the villagers have any decision making power in use and allocation of resources in the different land use zones? c) Conflict resolution Are there any conflicts over resources between Over what villagers? type of land/resources? Are there any conflicts with outsiders? Over what type of land/resources? Are there more or less conflicts compared to the time before the LUA, the Footer Page 121 of 132 relocation, the Sources Comments Header Page 122 of 132 113 development project, 10 years ago? Who is solving conflicts between villagers? Who is solving conflicts between villagers and outsiders? How are conflicts solved? What ‘laws’ or traditions are the basis for conflict resolution? What exactly b) Conflict with is done there is if outsiders a conflict? (based examples) on a) between villagers Other comments Footer Page 122 of 132 Conflicts Header Page 123 of 132 114 What are the main issues in the village? What communal land areas were identified? How is the land managed? How does communal land contribute to the economy and social well-being of individual households and the entire village? Land investment for rubber plantation: o Is your village or part of your village land in the investment project for rubber plantation, if so when? o Why your village was chosen? o Who decide your village to be under the plantation project? o What are procedures for rubber investment project? o What benefits does the village receive from the investment project? o Does the village lose any benefit from this investment? o Does the village have contract with the investment project? o Does the village have problem with land use after investment project implementation? o If so how problems are solved? o Will the investment expand in the village? Footer Page 123 of 132 Header Page 124 of 132 115 Annex 2: Questionnaire for Household Household code: ; Village: .Date: ; Interviewer: Interviewee: ; Family relation: .(husband,wife, children, sun in law, daughter in law, Other ) Household status: กWell off กmiddle กpoor Number of member in the household Age Male Female Responsibility and role in family 1-5 years 6-15 years 16-35 years 36-50 years 50-65 years >65 years Household background Family establishment (Year of marry?) Hometown before married? husband/wife: When did you come to settle here? Why did you move here? Footer Page 124 of 132 Header Page 125 of 132 116 Land resources: How many plots of land you have? Paddy land Plot Area (ha) Acquisition (buy/inherit/occupy) Year of acquisition Yield Location/-Distance from house Acquisition (buy/inherit/occupy) Year of acquisition Yield Location/-Distance from house Yield Location/-Distance Plot Plot Plot Swidden Plot Plot Area (ha) Plot Plot Plot Planted area (Sugarcanes, Rubber, Other cash crop) Plot Area Acquisition Year of (ha) (buy/inherit/occupy) acquisition Acquisition (buy/inherit/occupy) Year of acquisition from house Plot Plot Plot Orchard Plot Plot Plot Plot Footer Page 125 of 132 Area (ha) Yield Location/-Distance from house Header Page 126 of 132 117 Residential land Plot Area (ha) Acquisition Year of acquisition (buy/inherit/occupy) Plot Plot Plot Social relation: Close cousin within the village Cousin in Village Footer Page 126 of 132 relation (Father, Mother, Brother, Sister, others Activities helping cousin Number of time helping Activities that receive assistance /or ask for assistance Number of times receiving assistance Header Page 127 of 132 118 Cousins outside village Cousin in other village (Name, Village, -District, Province) relation (Father, Mother, Brother, Sister, others Activities helping cousin Number of time helping Activities that receive assistance /or ask for assistance Number of times receiving assistance Household income -Sources of incomes - Footer Page 127 of 132 Amount per month/ Which month(s) Ranking Year of receiving income Header Page 128 of 132 119 Incomes that used to receive Amount per month/ Year of not Which receiving -sources month(s) - Land concession for rubber plantation Is your land inside concession areas? Which company? How did the company approach to you? Have you involved in defining concession area? Can you refuse to not be involved in the project? What benefits have you received from the rubber concession? Footer Page 128 of 132 Reasons Header Page 129 of 132 120 What benefits have you lost from the concession project? Have you involved in this rubber plantation concession? If so which activities have you involved? Reason for being invited to be involved: • Labor • Land • Knowledge • Connection from (friend, cousin) • budget • approached by investor • If not, because of not having: Footer Page 129 of 132 • Labor • Land • Knowledge • Connection from (friend, cousin) • budget • approached by investor • Header Page 130 of 132 121 Benefit sharing Payer Item êȾ-Àº¤% ®ðìò¦ñ©% ìñ©% ²¾¡¦È¸-ºˆ-Å Labour Land Seedling Fertilizer Pesticide Machinery Land preparation Land rehabilitation Others Items Receiver Yourself % Company % State % Other Yield Profit Use of land and forest resources Prior concession for rubber plantation, how many types of land and forest? What benefits have you received from forest such as NTFP collection and timber use? Footer Page 130 of 132 Header Page 131 of 132 122 Do you need permission prior to collect NTFP or to use forest land? If so why? After concession for rubber, have you still used timber and collected NTFP in your village? Do you need permission prior to use the forest? In your opinion, have the land and forest use changed after rubber plantation concession? What did you with your land before rubber plantation concession from outsider? Do you have a contract with the concession project? After concession, what rights you have on your land? Footer Page 131 of 132 Header Page 132 of 132 123 Calendar of Labor use Activities/labor use of household Footer Page 132 of 132 Month/Number of days 10 11 12 ... reduction and land ownership and natural forest resources 50 2.4.1 Impact of Rubber Plantation on Poverty Reduction 51 2.4.2 Impacts of Rubber Plantation on Land Ownership 55 2.4.3 Impacts. .. Contribution This research analyzes impacts of rubber plantation on poverty reduction, land ownership and natural forest resource in northern, Lao PDR It has four main contributions reflecting... Impacts of Rubber Plantation on Natural Resource 56 2.5 Lesson learn from Vietnam 58 CHAPTER 3: ANALYZING IMPACTS OF RUBBER PLANTATION ON POVERTY REDUCTION AND LAND OWNERSHIP AND NATURAL