Royal University of Phnom Penh (RUPP)

Institute of Foreign Languages (IFL)

Department of International Studies (DIS)

Subject: IS405 (Political Ecology)

Lecturer: Sopha Ratana

Term Paper

Topic: How economic land concession effect

Human well-being?

Group Members: Bunchhom Ratanak

Ea Borey

Lay Ouksaphea

Yeoung Sophai

2012-2013

Content:

I. Introduction: • Overview of the issues related to economic land concession and human well-

being with related example of other countries. • Advantage and disadvantage of “Economic Land Concession”

-Objective of choosing this topic: To elaborate what are the effects of economic land concession on the loss of human well-being.

II. Body: • What is “Economic land concession”? How does it work? And what are the

challenges? • What is “Human Well-being”? • Specifically focus only the impact on human well-being after giving “Economic

Land Concession” to investors. • Case study:

o Cambodia: Explain the general situation related to giving land concession. Discuss on what will be the effect of losing human well-being.

o One ASEAN state: Lao PDR Explain the general situation related to giving land concession. Discuss on what will be the effect of losing human well being. Analysis on the statistic of the loss of human well-being when

they were lost their forest and farm land. III. Conclusion:

• Brief the whole section. • Provide Suggestion on this issue related to the downgrade of human well-being

after providing ELCs.

Political Ecology Term Paper:

I. Introduction:

The environmental degradation is regarded as one of the most concerned issue in each state who depended most on the agricultural sector. The most crucial problem happened especially in ASIA is the impact on human well being due to the providing economic land concession to many large foreign companies which led people who have used those forest for their livelihood difficult to get access to the forest and somehow losing their land. Though economic land concessions provided problem with people around that area, it still has their own benefit. So what are the advantages and disadvantages of “Economic land concession”? With the good thing of ELCs, we can see that it is one of the mechanisms for increasing the growth of economic sector though there is no proof for its share of benefit for nation and people, however, with the law enforcement has not yet been worked properly on the restriction regarding to the size and ownership of ELCs, Not only forest but also former forest concession have been granted as land concession. From this forest exploitation, the ELCs affect human rights and community people who depend on land and forest to serve their life. In addition, general concerns of this issue are the “encroachment on agricultural and grazing land and loss of livelihoods; encroachment on forested areas and loss of access to non-timber forest products; impact on areas of cultural and spiritual significance; displacement; and environmental destruction.” (OHCHR Report, 2007, P.1) 1

In addition, with many problems occurred in this issue, this term paper is going to elaborate with the scope of the impact of ELCs on losing of human well being in the given forest. In this research, our group tends to focus on two research question which the first one is how and why economic land concession affects the human well being rather than improving economic sector. And the second is what are the relations of the Mono-plantation with the lost of human well being? For instance, in case of Cambodia, if we look to the size is so small

With the involvement of many problems related to the encroachment on agriculture

and the impact on human well being in many countries, our group would like to study only in the case of Cambodia and one similar geographical area of ASEAN states, Lao PDR. As we can see that many forests was given as “Economic land concession” to foreign companies mostly belong to China and Vietnam for many type of plantation such as rubber, yam, teak, sugar, cassava, palm, cashews, acacia and others. As noted that those entire plantation are all “Mono-plantation” which will affect ethnic or community people who depend on those forests.

1 (2007). OHCHR Report, Economic land concession in Cambodia: A human rights perspectives. Retrieved from http://cambodia.ohchr.org/WebDOCs/DocReports/2-Thematic-Reports/Thematic_CMB12062007E.pdf

comparing to other countries in the region, however, if we look deeply to the size of forest, we are not small such as Prey Long forest which was given to Vietnam company is regarded as the second largest forest in ASIA and if we compare of the uncountable types of tree there and the mono-plantation suggested by the companies, we can see that those plantation will absolutely effect people there. More elaborating about the lost of human well being from the economic land concession will be including in the next section of this term paper.

II. Body: To further discussing on the impact of the “Economic Land Concession” on the “Human well being”, this term paper will explain the definition and how does it work of the two main key terms of the topic. In term of definition, an Economic Land Concession or ELC, is a long-term lease that allows the beneficiary to clear land in order to develop industrial agriculture. In other word, they are a generator to grant state private land for agricultural and industrial-agricultural exploitation with the goal of investing on agriculture, rural employment and diversification of livelihood opportunities, and the state revenues’ generator.

Then what are the criteria of granting the ELCs from the government? From the sub-decree on land concession signed by Cambodia prime minister on 27th, December, 2005 focusing on the criteria, procedures, mechanisms and institutional arrangements for granting ELCs, there are 5 following criteria in total such as “1.The land has been registered and classified as state private land, in accordance with the Sub-Decree on State Land Management and Sub-Decree on Procedures for Establishing Cadastral Maps and Land Register, or Sub-Decree on Sporadic Registration; 2. A land use plan for the land has been adopted by the provincial or municipal state land management committee, and the land use is consistent with the plan; 3. Environmental and social impact assessments have been completed with respect to the land use and development plan; 4. There are solutions for resettlement issues, in accordance with the existing legal framework and procedures. There shall be no involuntary resettlement by lawful land holders and access to private land shall be respected; and 5. Public consultations have been conducted with territorial authorities and local residents, relating to economic land concessions projects or proposals.” (OHCHR, 2007, P.4) 2

Moreover, ELCs will be approved only with the proposal which include the promotion of people’s living standard, sustainable environment and natural resource management, avoidance and minimization of social impacts, increasing jobs and mutual support between social land concession and economic land concession. On the other hand, the restriction

2 (2007). OHCHR Report, Economic land concession in Cambodia: A human rights perspectives. Retrieved from http://cambodia.ohchr.org/WebDOCs/DocReports/2-Thematic-Reports/Thematic_CMB12062007E.pdf

regarding to the size and ownership of ELCs has not yet been worked properly, there were not only forest but also former forest concession have been granted as land concession.

Furthermore, let’s moving to the definition of “Human Well-being”, Due to the summary of the Ecosystem and Human Well-being, A framework for Assessment, it is the basic material need for a good life, freedom and choice, health, good social relations and personal security. (Alkire, 2002) 3

Additionally, human well being is defined as whatever is assessed in an evaluation of the person’s life situation which includes the quality of life, living standards, human development. (McGillivray, 2006, P.3)

4

Since 1992, Cambodia economy was transformed from planning to free market. The

local and foreign private investments in agricultural sector have been granted by the

government of Cambodia. Economic land concession has also been granted to the investors for

agro-industrial plantation such as coconut, palm oil, etc. The ministry of agriculture, forestry

and fisheries has the authority for granting economic land concession to investors. The goal of

government policy is to provide non use land to the investor for plantation and processing for

export. Through this policy, the government expected that those investment projects could

create jobs for the local people who are living in those areas.

As mentioned above, this term paper is going to examine the impact on the human well being from ELCs in the case study of Cambodia and Lao PDR. So now we would like to raise the case of 1990s, land concessions have been granted in Cambodia for various purposes. The 2001 Land Law formalized the legal framework for granting concessions for economic purposes.

In case of Cambodia

5

There are five objective of economic land concession. First is to boot agricultural and

industrial-agricultural activities that need capable capital investment. Second is to achieve

3 Alkire, S. (2002), Ecosystem and Human well-being: A framework for Assessment. 4McGillivray, M. (2006), Human Well-bring: Issue, Concept and Measures. Retrieved from: http://www.rrojasdatabank.info/humanwellbeing.pdf 5The ministry of agriculture, forestry and fisheries for food security and sustainable development. Retrieved from: http://www.elc.maff.gov.kh/en/overview.html

agreement with investor on the plan for land use in the area. Third is to increase employment

and livelihood of local people in rural area. Fourth is to encourage investment either small or

large by using economic land concession. Fifth is to generate state income through economic

land use fees, taxation and other services.6

Another issue is the employment of outside labor to replace the local people. Many

companies will usually employ work forces from outside the local community because of two

reasons. First, the local people lack of knowledge and skill to work for the companies. For

example, Tum Ring rubber Plantation Company located in Sandan district in Kampong Thom

province hire qualified worker from Kampong Cham province instead of hiring local people due

to the fact that local people do not have skill in rubber plantation. Second, local people have

conflict with the companies over their payment. Example in the O Svay commune, companies

employ neighboring commune instead because payment of 5000 riel per day did not attract or

make local people sanctify.

Impact of economic land concession on livelihood of local people

The idea of economic land concession introduces new issues for the local people. First

issue is about changing the way of life of the local people. They have been a free farmer who

depends on forest to make their living. However, now these free farmers have been employed

as a paid labor instead. For the example of rubber plantation companies, local people are

concern that they do not have required skill to make a living by planning rubber tree because of

two reasons. The first reason, the practice of rubber plantation is not a customary practice to

them. The second reason, rubber trees take 7 years to produce latex, so local people fear that

they cannot earn their living during 7 years period.

7

Moreover, the issue of forest restriction by investment companies has been one of

major problems for the local people who are depend most on the forest resources. Those local

6 The ministry of agriculture, forestry and fisheries for food security and sustainable development. Retrieved from: http://www.elc.maff.gov.kh/en/objective.html 7 FLPP_EFCT Plantations Report Final. (2005). Fast-wood Plantations, Economic Concessions and Local Livelihoods in Cambodia. Retrieved from: http://www.ngoforum.org.kh/docs/publications/FLPP_EFCT%20Plantations%20Report%20FINAL.pdf

people cannot gather firewood to make charcoal to sell to make their living. For instance, the CJ

Company built a canal in 2002 to restrict local people from entering their concession area.

Without the access to forest resource, local livelihood of people have been getting worse

because they cannot earn their income anymore and they have to look for other way to make a

living.

More importantly, issue of displacement of local people which require them to move

out of the concession area to other area raise a big problem for them. When Concession

Companies require a particular piece of land which belongs to local people, they will ask the

local people to move out by giving the local people with a new piece of land. This policy of the

companies brought about two major problems for the local people. First of all, local people

have been living and cultivating in their area for many generations. Many families will not want

to move out of their home. Secondly, the new piece of land, which the concession companies

gave, might lack of nutrient to plant crops. Without land for cultivation, the livelihood of those

local people who had been move out from their land location will suffer. They will not be able

to self sustain anymore. Example in the case of CJ company concession, in 1997, 56 families

who live in Krol Tunsorng village, Traeng Troyeung commune were given a piece of paper

stating that they had been given a new housing and farming land. Until 2001, people were told

that their lands belong to company now and they had to move to their new village, Krol

Tunsorng Tmey. After the villagers arrived, they were given only 30 to 50 meter square of poor

soil quality.8

In the case in ASEAN region, we can see that ASEAN have been considered one of the most eco-forest densely area and full of biodiversity of jungle as well. According to, FAO Global Forest Resources Assessment (2010)

In case of Lao PDR:

9

8 (2004). OHCHR Report, Economic land concession in Cambodia: A human rights perspectives. Retrieved from: http://www.twgfe.org/Docs/OtherReports/UNSRSG%20Report%20on%20Land%20Concessions%20for%20Economic%20Purposes%20in%20Cambodia%20-%20A%20Human%20Rights%20Perspective%20(06-Nov-2004).pdf 9 The center for people and forests (2010): The Role of Social Forestry in Climate Change Mitigation and Adaptation in the ASEAN Region, P-15. Doi: 978-616-90183-5-3

, ASEAN in 2010 have shown the estimated data of total land and forest cover for each country as well.

Country Total Land Area (ha)

Forest Cover(ha) Forest as % of total land area (ha)

Brunei 567,000 380,000 67 Cambodia

17,652,000 10,094,000 57

Indonesia

181,157,000 94,432,000 52

Lao PDR

23,080,000 15,751,000 68

Malaysia

32,855,000 20,456,000 62

Myanmar

65,755,000 31,773,000 48

Philippines

30,000,000 7,665,000 26

Singapore

68,900 2,300 3

Thailand

51,089,000 18,972,000 37

Vietnam 32,930,000 13,797,000 42 TOTAL 435,153,900 213,322,300 49

From this table, it can be drawn that the forest over the total land area in ASEAN is 49% only and the highest one that can have the most forest of total land area is Lao PDR (68%), and the lowest is at Singapore (3%). this is very high gap between each country. However, Lao PDR is the most suitable one for taking into account comparing to Cambodia situation about the effect of ELCs because they both located in the same geographical location, developing states and have provided land concession to the foreign companies. In order to learn about the economic land concession in that area and how loss of human well- being will affect, as proof, farm land grab website have shown the land concession in Lao country have been provided 10,000 hectare land concession to Thai investor to grow the sugarcane. This hectare of land resulted from deforestation in that area and left for other growing plantation instead. that’s why on 11 June 2009, Lao national land management authority vice president Dr. Akhom Toulalom have made an agreement by contracting with Mitr Lao sugar company representative Buntoeng Vongkusolkit in Vientiane in order to invest sugarcane in that area for 40 year period. With this land concession provided, Laos expects to have the high economic growth from this

investment and exporting the product to Europe and other countries that have demanded the sugarcane especially with Tate & Lyle, the world's leading sugar trading firm.10

In addition, Laos can bring their country up to the next level of development and improve other factors such as employment, high productivity of output to support domestic consumption and make an export, high profit of individual income, high GDP growth, etc. Thought there have many advantages from this fruitful outcome, there still have huge impacts as well through the deforestation. Moreover, the major impact from this deforestation will lead to the loss of human well-being of forest because of mono-plantation which leads to the change of their entire way of life. For example, Lao ethnic people have lost their culture of believing in their animism in the forest and have insufficient knowledge working in the mono-plantation areas which downgrade their livelihood day by day. Other effects will lead to the loss of productivity for long term processes like as the loss of sustain fertilizer through the absorbing land nutrients via mono-plantation and the use of chemical product in order to gain more productivities for output. Moreover, because of the strong chemical used in those land concession, the surrounding people will more or less get the impact on health and disease, as proof in 2009, there are many projects that have been still conducting so far according to Foreign Direct Investment (FDI) in Land in the Lao PDR by Gtz on behalf of Federal ministry for economic cooperation and development.

11

From this reason, on June 01 2012 according to forest carbon Asia website, it also releases the news about Lao government needs time to put brakes on land concessions that result from the consequences starting from many years ago. From this article, government have also planned to suspend the land concession to private company to do their business on the public

10 Thai sugar grower gets 10,000 hectare land concession. (2009, June 29). Retried from: http://farmlandgrab.org/5949 11 Schoenweger, O., and Ullenberg, A. (2009), Agriculture, Fisheries and Food. Foreign Direct Investment (FDI) in Land in the Lao PDR, Division 45, 18-19.

land because of several impact from this problems said by ministry of planning and investment. However, though there is much more serious at enforcement of government, there is still allowing land concession to businessman such as to Chinese investor for cassava plantation in Savannakhet province12

III. Conclusion:

which will impact on as many as people who their life depended on those forest.

Consequently, as can be seen from the above information, Economic land concession

have their own benefit for being a part of generating the economic growth with the promotion of people’s living standard, sustainable environment and natural resource management, increasing jobs, on the other hand, ELCs created many issues regarding to the forest concession which led the loss of grazing land and livelihoods of the people who depend on the forest there, the lost of forested areas access to non-timber forest products; the displacement of the community people. Even we have sub-decree on land concession and law enforcement focusing on the criteria, procedures, mechanisms and institutional arrangements on ELCs; there has no properly binding on the restriction regarding to the size and ownership of those land concessions which are given to many companies by the approval from the government. Though the 5 following criteria from the institutional arrangement for grating the ELCs look confidential for giving land concession through the consideration of that land as state private land with no impact on both environment and social and public consultations conducting with territorial authorities and local residents, there are still many affects on the environment through giving forest as economic land concession.

In case of Cambodia, with report of human rights perspectives on the economic land concession, as mentioned on the objectives of granting ELCs are focusing on the development of industrial-agricultural activities, reaching agreements with investors for developing land in an appropriate and long-term manner; increasing employment in rural areas and stimulate diversification of livelihood opportunities; encouraging investment in economic land concession projects and generating state revenues through economic land use fees, taxation and related services charges. But there are many issues occurred during the approval of that land concession like as the loss of accessing to the forest of the indigenous or community people. For example, with the case of CJ Company, the economic land concession has truly affected Laotian of losing access to the forest nearby in the purpose of farming or hunting for their everyday life.

12 Lao Govt needs time to breaks on land concessions (2012, June 01). Retried from: http://www.forestcarbonasia.org/in-the-media/lao-govt-needs-time-to-put-brakes-on-land-concessions/

Moreover, moving to the case of Laos PDR, there many advantages from the economic land concession as a fruitful outcome similar with Cambodia, however, much impacts are coming from deforestation in the concession area for growing such sugarcane and other plantation which led to the loss of people well being from forest concession there and the loss of productivity for long term processes such as the loss of sustain of fertilizer from mono-plantation on sugarcane, the use of many chemical fertilizers for more productivities which caused human impacts on health and disease.

Last but not least, from our group point of view, we would like to suggest the government of each state to have more focusing on the restriction of the law enforcement on ELCs whenever they approve on the proposal given by either large national or international companies. The most important thing is that government should stop or suspend giving ELCs with the effective mechanism in order to prevent large consequences because somehow it will effect more or less on the human well being such as the loss of accessing to the forest, the loss of productivity with the increasing of salinity, the loss of sustain fertilizer in that area, the impact on health by using the chemical fertilizers for each country in the near future.

References

Alkire, S. (2002), Ecosystem and Human well-being: A framework for Assessment.

FLPP_EFCT Plantations Report Final. (2005). Fast-wood Plantations, Economic Concessions and

Local Livelihoods in Cambodia. Retrieved from:

http://www.ngoforum.org.kh/docs/publications/FLPP_EFCT%20Plantations%20Report%

20FINAL.pdf

Lao Govt needs time to breaks on land concessions (2012, June 01). Retried from:

http://www.forestcarbonasia.org/in-the-media/lao-govt-needs-time-to-put-brakes-on-

land-concessions/

McGillivray, M. (2006), Human Well-bring: Issue, Concept and Measures. Retrieved from:

http://www.rrojasdatabank.info/humanwellbeing.pdf

(2004). OHCHR Report, Economic land concession in Cambodia: A human rights perspectives.

Retrieved from:

http://www.twgfe.org/Docs/OtherReports/UNSRSG%20Report%20on%20Land%20Conc

essions%20for%20Economic%20Purposes%20in%20Cambodia%20-

%20A%20Human%20Rights%20Perspective%20(06-Nov-2004).pdf

(2007). OHCHR Report, Economic land concession in Cambodia: A human rights perspectives.

Retrieved from: http://cambodia.ohchr.org/WebDOCs/DocReports/2-Thematic-

Reports/Thematic_CMB12062007E.pdf

Schoenweger, O., and Ullenberg, A. (2009), Agriculture, Fisheries and Food. Foreign Direct

Investment (FDI) in Land in the Lao PDR, Division 45, 18-19.

Thai sugar grower gets 10,000 hectare land concession. (2009, June 29).

Retried from: http://farmlandgrab.org/5949

The center for people and forests (2010): The Role of Social Forestry in Climate Change

Mitigation and Adaptation in the ASEAN Region, P-15. Doi: 978-616-90183-5-3

The ministry of agriculture, forestry and fisheries for food security and sustainable

development. Retrieved from: http://www.elc.maff.gov.kh/en/objective.html

The ministry of agriculture, forestry and fisheries for food security and sustainable

development. Retrieved from: http://www.elc.maff.gov.kh/en/overview.html