Commercial investments in land in the Lao PDR: Enhancing wellbeing or entrenching poverty?

Abstract

Governments in the developing world often perceive potential spillovers from commercial investments in land (CILs), such as employment creation, improved infrastructure, and better market access, as a fast and efficient way of improving their citizens’ wellbeing. CILs are also seen as the easiest way to drive development in rural areas1,2. But do CILs really live up to these expectations, or are they rather increasing disparities and entrenching poverty? In this brief, we assess the effects of 176 agricultural CILs on human wellbeing in 294 villages in the Lao PDR, and we propose policy options and possible areas of intervention to prevent adverse impacts and maximize benefits for local communities.