Social-economic impact of R3 road on Thailand, Lao PDR and Yunnan province (PRC) with focus on Lao PDR

Abstract

This study focused on studying the social-economic impacts from the R3 road on Lao PDR; particularly, on Bokeo Province and Luang Namtha Province. There were two levels in this research. First, the study on Bokeo and Luang Namtha provincial social-economic development which focused on three sectors: trade, investment, and agriculture. It provided a wider view on economic development of the two provinces. Second, the study was on the social-economic impacts on local communities adjacent to the R3 road. Twelve villages along the R3 road were studied in this research. In Huaysai District, Bokeo Province, there were five villages; and in Namtha District, Luang Namtha province, seven villages were studied on social-economic impacts of the R3 road. The research findings showed that the R3 road contributed to economic development on Thailand, Lao PDR and Yunnan Province, People’s Republic of China. The explicit evidences were the volume of trade among three parties has increased sharply since the completion of the R3 road in February 2008. The trans-border trade between Thailand and China increased more than two times from 2008 to 2009; thanks to the R3 road. Moreover, the R3 road provides better transportation, markets, economic opportunities, education, accessibility to healthcare services, and other services to Lao ethnic people along the road. However, the findings from case studies showed that the R3 road created negative social impacts to villagers in two aspects. First, the R3 road physical impacts such as land compensation, drainage system, road accidents, and the increase of land prices. Second, the impacts were from developments on the R3 road area; mainly, the investments. Therefore, this study revealed social-economic impacts of R3 and gave suggestions for problems on Lao PDR.