Regional economic development in Lao PDR and Thailand : case studies of Savannakhet and Mukdaharn provinces during 1990-2006

Abstract

Many of the recent poverty have their origin in the rapid economic reform process. Savannakhet and Mukdaharn forms an integral part of Greater Mekong sub-region, also parts of members of ASEAN. Both provinces seek the full utilization of their natural and human resources in order to bring prosperity and modernity to their societies. The study showed local people are able to get benefit from FDI and domestic investment activities. The direct benefits, however, appear to be mainly along the major communication arteries and the profits largely remain unshared, while number of people living in poverty are still high, 16.41% of total households in Mukdaharn and 15% in Sanvannakhet. People in both regions have a positive perception of how their welfare has changed over the past two decades. The most significant improvements are in education, personal security, income, public health, food and transportation. Some people do have negative perceptions. For instance, they think that social problems still remain and become worse. The number of people that see improvements in their living standards is higher than the number of people who think the opposite. The Research finding suggested that both provinces should implement complementary policies to counter negative distributional impacts of regional economic development, such as social protection mechanism and skills, training programs, generate new employment opportunities that do not bypass the poor.