prof phil hirsch plenary session 0945

Land governance issues in the Mekong region in the context of the integration of the ASEAN Economic Community

School of Geosciences, University of Sydney

Keynote address at the Regional Land Forum

Hanoi, 21-23 June 2016

Philip Hirsch, Professor of Human Geography

Mekong Research Group

Land governance as a regional question 1

Land governance as a regional question

› Regional economic integration à -  Heightened pressures on land

-  Inequities and conflict arising from such pressures

-  Governance questions generated by inequities and conflict

Pokpen village, Kompong Chhnang, Cambodia

Key considerations

3

Land governance, ASEAN and the AEC 2

Land governance, ASEAN and the AEC

›  Little specifically on land within the ASEAN Charter or ASEAN institutional arrangements

›  ASEAN Commission on the Promotion and Protection of the Rights of Women and Children study

›  Environmental provisions within ASEAN Socio-Cultural Community

›  ASEAN National Treatment provisions exclude land ownership

Source: ASEAN Secretariat News

ASEAN and land governance

5

Land governance, ASEAN and the AEC

› National Treatment provisions generally exclude foreign land ownership

› However, leasing arrangements, contract farming and joint ventures have allowed foreign direct investment in land through other means – quite successfully!

›  This is happening despite, rather than because of ASEAN/AEC, limiting ASEAN’s actual or potential role in governance or regulation

Source: ASEAN Secretariat

National Treatment provisions Country National Treatment provision on land

Cambodia NT shall not apply to any measure relating to land ownership, leasing, transactions, or use; including conditions on which such land shall be held, including the use of natural resources associated with land.

Lao PDR Foreign investors are not allowed to own land, but allowed to lease land or to receive grant concession of land for investment purpose. The period of the lease is between 35 – 50 years and can be extended for another 25 years to a maximum of 75 years, for agriculture, mining and energy.

Myanmar National Treatment may not apply to any measures affecting land, property and natural resources associated with land. Land is owned by the State. However, government-owned lands, lands owned by the government department, organization and private lands owned by the citizen can be leased for initial 30 years and extendable two consecutive terms of 15 years subject to the approval of the Myanmar Investment Commission.

Thailand Foreigner is permitted to own land according to Investment Promotion Act B.E. 2520 (1977), Industrial Estate Authority of Thailand Act B.E. 2522 (1979), and the Petroleum Act B.E. 2514 (1971). Foreigner, who brings money at least 40 million Baht for investment, is allowed to own land for residential purpose not exceeding 1 rai (1 rai = 1,600 square meters) with a permission by the Ministry of Interior. In the case of hiring the land more than 100 rai for commercial or industrial purposes, where a foreigner or a juridical person according to Section 97 of Land Code is a hirer, sub-hirer or transferee of the right of hirer, its investment in an operation of such commerce or industry shall not be less than 100 million Baht, excluding the cost of hire. Also, the total amount of money invested shall be foreign exchange brought into the Kingdom or withdrawn from the foreign currency deposit account or withdrawn from the non-resident Baht account.

Vietnam National Treatment may not apply to any measure affecting land, property and natural resources associated with land, including but not limited to acquisition, ownership, lease, policy on the usage of land, land planning, term of land use, rights and obligations of land users.

6

Land issues and regional economic integration 3

Land issues and regional economic integration

›  Thailand’s battlefields to marketplace

›  Vietnam’s “fraternal” relationships

› China’s “going out”, one-belt/one-road

›  Lancang-Mekong Cooperation

› GMS

›  ACMECS

›  etc

Source: Asian Development Bank

Regional economic integration

8


› Complementarity -  Factor endowments

-  Land [immobile]

-  Labour [partially mobile]

-  Capital [mobile]

-  Markets à commodity flows

-  Knowhow

-  Capital- vs land-abundant/scarce

-  China, Thailand, Vietnam

-  Cambodia, Laos, Myanmar

-  Eg 3+2 policy in Laos

Complementarity and inequality

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Services

Industry

Agriculture

% GDP by sector 2000 Source: World Bank 2014

0 0.05

0.1 0.15

0.2 0.25

0.3 0.35

2000

2013

Arable land per person 2013 (ha) Source: World Bank 2014

9


› Complementarity -  Factor endowments

-  Land [immobile]

-  Labour [partially mobile]

-  Capital [mobile]

-  Markets à commodity flows

-  Knowhow

-  Capital- vs land-abundant/scarce

-  China, Thailand, Vietnam

-  Cambodia, Laos, Myanmar

-  Eg 3+2 policy in Laos


10


›  Inequality -  International dimension

-  GDP per capita -  Levels of industrialisation -  Geopolitical power

-  Domestic dimensions -  (in)security of tenure

-  Political connections -  Ethnicity

-  Gender -  Access to justice

-  Access to information and markets


11


Land concessions in and Lao PDR

Investment in the resources sector in Laos by country of origin Source: Oulavanh Keovilignavong 2013: 133

Source: Schonweger et al 2012: 21

12


Transnational investment in land-based production in the Mekong Region

Vietnamese rubber investment in southern Laos and eastern Cambodia

13


›  Bananas: agro-extractivism


14



Thilawa Special Economic Zone 15


›  Social impact concerns -  Eg social land concessions in Cambodia

›  Economic risk -  Limits on rubber investment in Laos

›  Sovereignty concerns -  Eg Rethinking land in exchange for infrastructure investment (eg Chinese-built

railway in Laos)

›  Environmental sustainability concerns -  Eg brake on banana investment in northern Laos

Limits to land grabbing and agro-extractivism

16

Land disputes as a source of conflict in the region 4

Land disputes as a source of conflict in the region

Land disputes in Cambodia

The Cambodia Daily, 6 June 2016 The Phnom Penh Post, 6 June 2016 18


Land disputes in Laos

19


Land disputes in Myanmar

20


Land disputes in Thailand

21


›  Issues over peri-urban land conversion

› Compensation issues

›  Issues over divestment of state-owned forest enterprise land

›  etc

22

Land disputes in Vietnam

Challenges and openings in land governance 5

Challenges and openings in land governance

› How relevant is ASEAN to regional land governance?

› Or should we look to other regional/bilateral relationships?

› Or is the main governance response to regionalisation of investment in land to be found at the domestic level in the first instance?

Transboundary challenges

24


› Changing role of the state in land tenure and protecting the public interest

› Confusion between national interest and public interest

›  Land held as state property can be an obstacle to recognition of customary rights

› Continuing uncertainties in rights over titled land

›  State officials as gatekeepers for land deals opens way for corrupt practices

›  “Turning land into capital” – but for whom?

Post-reform challenges

25


› Regulation and legal reform

›  Internationalisation of norms

›  Emerging regional civil society

› CSR, corporate accountability and private sector engagement

›  Sharing of knowledge and experience

Openings

26

Conclusion: Limits to regional governance 6

Further reading

[email protected]

www.sydney.edu.au/mekong

28

prof phil hirsch plenary session 0945

Education