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LCW - Advice Column
 
~ NOV 17 2004
 

This week's LCW Advice Column uncovers the truth on NGOs and foreign business investment in Laos. Are they all good? Are they all here to help Laos succeed or are they working towards their own self-interests? Whether you believe our piece is the bearer of bad news or enlightening, it will no doubt make you ponder these topics long after you've finished reading them.


Are NGOs All That Wonderful?
From: Canada
- I was curious to know if there are any controversies surrounding the many NGOs that operate in Laos. Are they really all that wonderful?
Reply:

Non-governmental organizations (NGOs) no doubt have their place in the world and for the most part many if not most of them are doing good things in the countries that they operate in.

Report Writing. Many of these NGOs are in business to simply make money off of creating reports by doing it for other agencies such as the UNDP or for the government of the country they are operating in. And/or in other cases, they simply publish and sell their findings. Report after report is virtually useless if the information obtained is not used as soon as it is deemed verifiable, useable and applicable to Laos' situation. This is not to put all the blame on the NGO. However the NGO must work closely with Lao governing bodies to ensure that they understand the report and its would-be effectiveness - and this includes producing the report in Lao, not just in English.

What is most disapproving, are when replicate reports and research papers on similar, if not identical, topics are created. Reports that are essentially all saying the same things are released year after subsequent year. The obviousness of this is that the reports become redundant and both money and time are wasted. It is almost as though that is all that they do - write research papers. Consultants get a great deal of the money for writing and research. Consultants also make up a good portion of the ex-patriate community in Vientiane. Albeit, these research papers are highly informative and can make for interesting reading. However their final purpose is to be an educative tool and to be used by a governing body who is in the midst of applying or formulating ideas or a new set of laws.

False Pretenses. There have even been cases of NGOs falsely setting up or pretending to be doing projects in Laos but in fact upon government inspection, have done nothing and the money has been diverted elsewhere. Back in the Cold War years, it was even heard of that religious and charitable organizations were fronts for spies.

Religious. Many NGOs (and a few private schools) in Laos are religious based organizations who, at the end of the day, are there not necessarily to help as a traditional non-secular NGO/charity is but rather, they are there to convert Lao people towards their religion. It has been observed by this writer that many of the non-Buddhist temples and churches attempt to attract in particular younger Lao people with promises of fun, friendship, assistance with finding work, educational sponsorships, etc. And to a poor populace such as Laos these features can become a big selling point for these sort of recruitments or conversions. Religious freedom is something we can all agree on. However it is disheartening to see certain religious organizations take advantage of the Lao people in this manner knowing very well the financial situation of the majority that makes them particularly vulnerable.

What one comes to notice among the religious groups is the amount of exclusivity that becomes apparent. Instead of helping anyone who requires assistance they relegate their assistance only to their own religious members and in effect exclude others.

Bad Attitudes. Moreover, it has been observed by this writer, while speaking with some foreigners living in Laos that some of them, though not all, share the idea that Laos and the Buddhist religion are somewhat below them. This negative attitude is what is most disapproving and surprising since it is they who have chosen to go and live/work in Laos. Many Lao people (in Laos and abroad) would be surprised to hear the attitudes and views spoken by some foreigners/ex-pats when they are in private or behind closed doors. Although of course there are those who completely appreciate and have come to admire the Lao way of life, attitudes and Buddhism - and have integrated those aspects into their own lives and into themselves.

Financial Waste. Many NGOs, charities, and religious groups waste a great deal of money. We all know the level of corruption that exists in any country from the top down, from businesses to governments - and indeed Laos has its share of this. But many are also surprised to learn the amount of money that is wasted by NGOs. Most famous and heard of stories in Laos are the NGOs that are large and well-known, the ones that are well established and have money to spend. For example, they spend a great deal on bringing foreign expertise and consultants. And many of those individuals will then bring their family members or if they don't, they are permitted paid trips to go back to visit their families. But for those who bring their families to Laos, the costs begins to accumulate because it is the NGO who accepts the associated costs (think of it as a benefits package for the ex-patriate). Once they're in Laos, they're able to go to Western style sports clubs (that have fees that are more expensive than in North America), send their kids to private schools (that can cost as much as abroad) and Euro-style restaurants and cafes and equipping them with SUVs and other cars, as well as, providing paid medical benefits not just for the foreign expert but for his/her entire family and a house/apartment to live in. The financial waste is huge and very little gets done or given towards the charity or purpose to which the NGO was originally created for; instead the overhead costs accumulate the majority of funds.

As I mentioned earlier, the general public and the government itself, as well as, those abroad are well aware of the level of corruption or financial waste that exists in Laos. The interesting note here is that it is now becoming commonplace to apply this notion to NGOs. Among those in Vientiane, there is a running joke of how little NGOs do and how much money they are able to waste.

It is a sad state of affairs. NGOs are just like any organization, public or private, international or domestic, they too are prone to corruption and financial waste.

A personal last note: The last note I'll leave you with is that we can only hope at the end of the day that work of these NGOs will yield positive benefits for Laos and its people. And for the most part, I genuinely believe Laos has benefited greatly by having NGOs in its country. However as illustrated above, NGOs are not all that wonderful.


Bad Business
From: Laos
- I am a business student in Vientiane. I believe that business investments in Laos will helps us to develop. Some of my fellow students don't agree. Is it true that all investments in Laos are good for our country or should we be more cautious?

Reply:

Keep in mind that not all business investments are positive for Laos' development or future prospects. All businesses, ventures, and investments have to be weighed and analyzed from both sides. For example, there has been talk between Laos and Thailand wanting to create a railroad linking Thailand and Vietnam and possibly other connection points. What would be the implications for Laos? Will industries grow from this or will Laos simply be used as a transit way?

Another example, forestry. There are many investments and business ventures in conjunction with particularly Thai investors regarding forest/paper/wood products. Thailand is especially interested in its neighbor's forests in large part because many of its own forests have disappeared to over logging. Will this happen to Laos? One of Laos' primary exports are forestry/wood or wood products and therefore this industry does help to employ many people. But what do you think will happen to Lao forests in 20 years if it is not properly protected?

Yet another example, and this is probably the most highly debated one to date, which are hydroelectric dams. Again a lot of the investment money for these comes from Thailand which is eagerly seeking other sources of energy (as is Vietnam). Some of the money also comes from loans from multilateral NGOs such as the World Bank. During the creation of the dams what are the implications to the environment, the people that inhabit the area, the living creatures and animals that need that open waterway, etc.? Will Laos actually make money or profit from these hydro-dams? Will the low prices and the fact that it will only be selling to Thailand and Vietnam make it susceptible to manipulation by its sole buyers?

Indeed these examples are to help illustrate to you that not all business investments or development projects are 100% clear or fully good/bad. Although not to sound pessismistic, ultimately the parties involved will always have their own special interests at heart and not necessarily Laos' well-being.

Updated: Nov 17 '04

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