Plantations, poverty and power - Critical Information Collective
Plantations, poverty and power - Critical Information Collective
Plantations, poverty and power - Critical Information Collective
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98<br />
The Project Completion Report points out an important failure of the ADB’s project – the failure to deal<br />
with l<strong>and</strong> rights <strong>and</strong> Indigenous Peoples’ rights: “In securing l<strong>and</strong>s for development, issues concerning<br />
l<strong>and</strong> tenure, human settlements, <strong>and</strong> indigenous peoples <strong>and</strong> their legal implications should be seriously<br />
considered. State-owned l<strong>and</strong>s are not necessarily free from l<strong>and</strong> tenure claims by indigenous<br />
inhabitants.” 498<br />
Laos<br />
The Bank’s Industrial Tree <strong>Plantations</strong> Project in Laos was a spectacular failure. The project created <strong>and</strong><br />
increased <strong>poverty</strong>, according to the Bank’s Project Completion Report. 499 Loans were given to farmers to<br />
plant trees which then failed, leaving the farmers with no means of repaying the loans. According to a<br />
report by the ADB’s Operations Evaluation Department, “Thous<strong>and</strong>s of inexperienced farmers <strong>and</strong><br />
individuals were misled by prospects of unattainable gains, leaving the majority of farmers with onerous<br />
debts, with no prospect of repaying their loans, <strong>and</strong> with failing plantations.” 500<br />
The project also supported commercial tree plantations. One of the companies involved, BGA Lao<br />
Plantation Forestry (now owned by Japan’s Oji Paper) used the ADB’s loans to bulldoze commons, forest<br />
<strong>and</strong> villager’s farml<strong>and</strong>s to make way for monoculture eucalyptus plantations. 501<br />
As in other ADB-funded plantation projects, Bank monitoring of the project in Laos was weak. The OED<br />
reports that Bank missions included few trips outside Vientiane. Between 1996 <strong>and</strong> 2003 there was no<br />
forestry specialist on any of the Bank’s project review missions. Between July 2000 <strong>and</strong> February 2002<br />
there were no ADB review missions at all. 502<br />
Despite these problems, shortly after the Project Completion Report was released, the Bank approved a<br />
second plantations project which looked set to repeat the mistakes of the first. In its appraisal of the<br />
second project, the Bank ignored the findings of its own consultants, who reported that “discussions with<br />
farmers (women <strong>and</strong> men) in the 6 villages revealed that their priorities in livelihood improvement do not<br />
include tree plantations of the kind offered by the proposed project.” 503 The ADB eventually cancelled its<br />
Bank, 11 December 1998.<br />
498 “Project Completion Report Timber Plantation Project (Indonesia) (Loan No. 1000-INO)”, Asian Development<br />
Bank, 11 December 1998.<br />
499 “Project Completion Report, LAO: Industrial Tree Plantation Project, Project Number: 20067, Loan Number: 1295”,<br />
Asian Development Bank, November 2005. http://www.adb.org/Documents/PCRs/LAO/20067-LAO-PCR.pdf<br />
500 “Sector Assistance Program Evaluation for the Agriculture <strong>and</strong> Natural Resources Sector in the Lao People’s<br />
Democratic Republic, SAP: LAO 2005-17", Operations Evaluation Department Asian Development Bank, December 2005.<br />
http://www.adb.org/Documents/Reports/SAPE/LAO/2005-17-LAO-SAP.pdf<br />
501 Chris Lang <strong>and</strong> Bruce Shoemaker (2006) “Creating Poverty in Laos. The Asian Development Bank <strong>and</strong> industrial<br />
tree plantations”, World Rainforest Movement, April 2006. http://chrislang.org/2006/04/25/creating-<strong>poverty</strong>-in-laos-theasian-development-bank-<strong>and</strong>-industrial-tree-plantations/<br />
502 “Sector Assistance Program Evaluation for the Agriculture <strong>and</strong> Natural Resources Sector in the Lao People’s<br />
Democratic Republic, SAP: LAO 2005-17", Operations Evaluation Department Asian Development Bank, December 2005.<br />
http://www.adb.org/Documents/Reports/SAPE/LAO/2005-17-LAO-SAP.pdf<br />
503 Eva Lindskog <strong>and</strong> Chansamone Phengkhay (2003) “Livelihood Conditions Report”, Appendix I, page 143 in “Tree<br />
Plantation for Livelihood Improvement Project: Appendices - Final Report Volume I”, TA No. 3794-LAO, MIDAS<br />
Agronomics, Champa Lao Consulting, Sc<strong>and</strong>iaconsult Natura, CIRAD Foret, October 2003.