Transformative Land Investment in Lao PDR, a conversation with Dr Thiphavong Boupha

TLI focuses on three interrelated pathways: investors, the national business ecosystem and the global and regional development community, employing a multi-tiered approach to change investor practices and enabling environments at all levels. The Project utilises a variety of tools and methods to do this including the development of tech tools like the Risk-Reward Model and regular cross-sectoral events, as Dr. Boupha references below. The end product of this is to promote and incentivise transformation and alignment with TLI practices.

This project started in 2022 and is scheduled complete its work by the end of the year. In light of this, we sat down with Dr. Boupha and asked him about his experience working around the agriculture sector, the progress of the TLI project, and where he thinks work still needs to be done.

Q. With more than two decades of experience and as one of Laos’ leading researchers in the area, what inspired you to focus on land governance and responsible investment?

A. Growing up and recognising the importance of agriculture to Lao PDR as a country, I decided to focus my study and career on this area. After finishing my Ph.D in China, my first job was in agribusiness, focusing on the socio-economic, agricultural value chain and investment in Laos. This experience helped me build a good working relationship with a network of relevant government departments, development projects, private sector stakeholders and communities who I had wanted to support since before I even began my Ph.D.

Laos is a country abundant in land-based natural resources that are rapidly being depleted; to prosper, we need to better develop the agricultural and forestry sector for more sustainable use. The agriculture sector is the backbone of the Lao economy, with around 80% of the Lao population relying heavily on subsistence farming, and more than 70% of the workforce employed in the agriculture sector. As a land-locked and land-linked country, Laos faced difficulties in connectivity, logistics and access to export markets. Laos’ domestic markets are small, so focusing on cross border trade and international markets is important. To date, land allocation, administration, and management have not been very effective, resulting in slow social and economic development and growth, and poor environmental impacts. Ineffective land governance and irresponsible land-based agricultural investment effects the majority of the population who are smallholder farmers. Over the years of studying and working in economics and agricultural investments, I am understanding more deeply what is needed to address the root cause of these larger issues and come up with the tangible solutions to promote good land governance and responsible investments, particularly in the agricultural and forestry sector. This is my motivation.

Q. You’ve been leading LEI’s effort in Laos throughout the TLI project, looking back over your time on the project, what has stood out most to you – either as a success or a surprise?

A. I have been pleased to see that the TLI project has come up with a very clear strategic framework and approach to prevent irresponsible investments, including participatory methods of understanding land-based investment issues and developing clear solutions. TLI’s theory of change is structured around evidence-based approaches that means we can tailor various interests to sustainable and responsible land-based investments. There are four products of the project that I believe are particularly impactful: the Risk Reward Model (RR-M) (an online investment diagnostic platform), Multistakeholder Platform (regular meetings) and Dialogue (annual conference) and the Community of Practice (regular working and training courses). These tools were well designed and received by Government, civil society and other stakeholders, even though they take time before impacts are seen. These are all tools that, should they choose to do so, external bodies such as government, private sector and other interest groups, can take responsibility for and use beyond the life of the Project itself.

This timeline was developed by our team at LEI and demonstrates the activities of the project across its operations and various activity types.

Q. The TLI project works at the intersection of investment, land, and community engagement – with many actors involved. What have you learned about navigating these relationships?

A. It is true that the TLI project activities are quite challenging in terms of multistakeholder engagement, with cross-cutting sectors, people and issues. Luckily our team has good working relationships and networks with government, private sector actors, and the communities directly impacted by our work. The team was able to add value in discussion about agricultural investment issues with investors, including environmental and social concerns, as well as, listening and understanding the perspectives and priorities of communities, who need strong advocacy throughout the agricultural commercialisation and value chain development process. I think a combination of technical and interpersonal skills and knowledge are needed for good communication and coordination among the different actors. Civil society organisations are adept at bridging the relationships with different stakeholders however they would be more impactful if they had strong technical knowledge around agricultural farming practices and investor requirements.

Thiphavong Boupha (centre left) and Kate Rickersey (centre right) at the signing of the MOA between LEI and DIC, IPD and MPI for the TLI Project.

Q. You’ve been deeply involved in launching and supporting Business Transformation Labs with Agri-investors in Laos. Based on this experience, what would be three critical changes you see necessary for companies to radically improve in their responsible land-based investments?

A. Understanding and talking the same language with investors is not easy mostly due to either the complex investment regulations, and limited incentive mechanism to transform the agricultural investment in Laos. The three critical changes I could see are:

• Firstly, the government needs to more clearly advocate for and control responsible land-based investment through stronger regulator frameworks and incentives at both national and local levels.
• Secondly, communities should be supported through capacity building and information campaigns to better understand the relevant regulations, approaches and practices (e.g. Free and Prior Informed Consent, Responsible Agricultural Investment, environmental and social protections and safeguards);
• Thirdly, investors need longer-term outlooks for their investment and business practices, with clear ideas of their contribution to the local social economic development, as well as opportunities for trust building with local communities and authorities.

Q. As the TLI project wraps up, in terms of sustainability, what’s on your mind?

A. Some tools introduced by the TLI project need more time to establish themselves, for piloting and scaling, to achieve the goals set out with. Other tools such as the Multi-Stakeholder Platforms, annual Dialogues, evidence-based assessments, and Communities of Practice) could be easily to continue if TLI’s local counterparts chose to do so. One promising tool is the Risk-Reward Model. Although it has taken some time to establish, demonstrate and pilot due to challenges around availability of data, there is significant interest in this tool from the Government. It is expected to be set up by end of the year with clear institutional arrangements and administration of the system set up within key government departments, such as the Investment Promotion department, Department of Planning and Cooperation and the Department of Agriculture, Land Management, who are keen to have the system operational. Once the system, with key responsible persons is set up, I believe these departments could mobilise budget to continue beyond the TLI project. Capacity building and handover practices will be important to ensure the continued impact of the TLI project beyond its short lifetime.

To read more about the Transformative Land Investment Project, visit the project page here.