Smallholder Teak and Agrarian Change in Northern Laos

Abstract

Smallholder teak (Tectona grandis) plantations have become increasingly prominent in the landscape of Luang Prabang Province, Lao PDR. While the global market for teak-wood is attractive, investment has been driven by a range of factors, including changes to land legislation, land-use planning, taxation incentives, and government and non-government programs and promotions. The establishment of teak stands provides a labour-saving land use for households, potentially freeing up household resources for other farm and non-farm opportunities. However, the degree to which households can participate in the industry varies within and between villages. This paper reviews some of the underlying incentives for the expansion of teak plantations, examines the livelihood activities of both teak and non-teak producers in five case study villages in Luang Prabang, and explores the differential outcomes emerging from the expansion of smallholder teak production. The survey revealed that teak planting has been more extensive among households with a longer history of settlement, where the household head is older and better educated, where household members have off-farm sources of income, and where the household has access to paddy land and is thus more likely to be self-sufficient in rice. Households that depend on shifting cultivation for their livelihoods, without access to alternative productive land or income sources, will continue to have difficulty planting teak or holding on to the land they do manage to plant. The paper concludes that the establishment and improvement of teak plantations, like other apparently technical interventions aimed at providing a ‘pathway out of poverty’, need to be seen in the context of wider processes of agrarian change and differentiation to appreciate the resultant impacts on livelihood trajectories.