Perspectives
by Lia Sciortino
Perspectives
China’s PR Problem Rears Its Head
Johanna Son
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CHIANG MAI, Dec 11 (TerraViva/IPS Asia-Pacific) - Powerful neighbour. A rising power. Old friend. Big, secretive investor. Big boy of the region.
These were some of the terms participants at a talk-show format discussion at the Mekong Media Forum used when asked to share the images of China they get from the media.
Reading Media
Johanna Son
BANGKOK -- Vietnam, Laos, Cambodia. What images might these words conjure up in the minds of international consumers of news? Perhaps war, maybe the Khmer Rouge. Or they might say, ‘Oh, it’s that those countries that had that war some time ago. . . they’re near one another, and they’re all the same’.
China: Benign Bully of the Mekong?
Johanna Son
SYDNEY, Oct 3 (IPS Asia-Pacific) – Over the last decade or so, China’s deft use of soft power has seen South-east Asian neighbours’ view of it change from a looming threat to a largely friendly, if still imposing, giant to the north.
China’s Aid Flows Downstream to Laos
By Qian Xiaofeng
VIENTIANE -- In the centre of Laos’ leafy capital, just two blocks from where the Mekong River marks the border with Thailand, stands the Lao National Cultural Hall, a gleaming, modern structure trimmed with gold paint. Outside, a banner portrait advertising a concert by the South Korean pop star, Kangta, shows how the Lao People’s Democratic Republic, one of the world’s five remaining communist countries, is quietly opening to the outside world.
Inaugurated in 2000, the Cultural Hall was built with Chinese aid and is just one example of China’s extensive aid programme. The construction of Vientiane’s broad, 13-kilometre Central Avenue, a veritable marvel compared with other roads in the city, was financed entirely by China in 2003.
The avenue leads to a Victory Arch that echoes Paris’ Arc de Triomphe and recalls French colonial influence on Laos. In 2004, China helped renovate the adjacent Victory Arch park, with a musical fountain as its centrepiece. A plaque in Lao, Chinese and English acknowledges this ‘grant aid from the government and people of China as a token of friendship and cooperation’.
Nearly 400 kilometres north, on the outskirts of Luang Prabang, a Sino-Lao Friendship Hospital completed in 2003 is known locally as ‘the Chinese Hospital’. The red-roofed buildings in the complex sit on spacious grounds surrounded by jagged green mountains. The Chinese government also donated hospital equipment and medical facilities and there are now plans to expand the facility to include a sanatorium for senior Lao officials. The road linking the hospital to Luang Prabang, a United Nations Education, Scientific and Cultural Organisation (UNESCO)-designated World Heritage Site, remains in terrible condition, but was scheduled to be upgraded with Chinese aid in 2006.
Chinese aid is even reflected in Laos’ currency, the kip. The 5,000-kip note carries the image of the Vang Vieng cement works. The plant was built in 2002 with financial and technical support from China, reducing Laos’ previous dependence on imports from Thailand.
Dependent on Aid
But China-Laos relations have not always been smooth. They hit a low point in the late 1970s, when Laos supported Vietnam’s invasion of Cambodia in December 1978 to kick out the genocidal and extremist communist group, the Khmer Rouge. Relations stabilised when Chinese Premier Li Peng visited Laos in 1990, and have since continued to improve with more frequent high-level visits between the two nations. The level of Chinese official development assistance has risen accordingly.
From 1988 to 2000, Chinese aid to Laos totalled almost 600 million yuan (75 million U.S. dollars), amounting to just two percent of all international aid that the country received during that period. Over the following four years, according to China’s Ministry of Commerce, China provided one billion yuan (125 million dollars) in assistance, mostly directed toward infrastructure, health and education projects.
Bilateral trade and Chinese investments in Laos have also seen rapid growth. By the end of 2001, Chinese enterprises had won contracts in Laos worth nearly six billion yuan (750 million dollars), according to Chinese Ministry of Commerce figures. A growing share of that sum was derived from Chinese government loans that appear not to be counted, either by China or by Laos, as part of the bilateral aid programme.
Before 1990, the Soviet Union was Laos’ main international donor. Today, the country remains highly dependent on foreign aid -- which accounts for almost 20 percent of its Gross Domestic Product (GDP) and up to 70 percent of public investments -- but from a much wider range of donors. In 2001-2002, according to data from the Lao government’s ‘Foreign Aid Report’, 18 bilateral donors gave aid funds totalling 197.95 million dollars and multilateral donors gave 119.88 million dollars. Among bilateral donors, Japan was the largest, and contributed slightly more than half the total bilateral aid, followed by China, with just under 10 percent of the total. Among the multilateral institutions, the Manila-based Asian Development Bank (ADB) accounted for 48.23 percent of funds and the World Bank, 28.47 percent.
Donor China Versus Japan
Although China has itself received substantial aid from Japan over the last decade, competition with Japan as a donor to Laos is becoming more and more visible.
Hospitals are a case in point. Japan provided a grant of 1.6 billion yen (12 million dollars) for the Saitatila Hospital in central Vientiane, which opened in 2001. China responded the next year with aid for a 100-bed hospital outside the ancient capital of Luang Prabang.
Japan recently pledged to set up a Japanese-language training centre within the Laos Youth League headquarters, offering teachers, teaching materials and facilities. According to a source close to the Chinese Embassy in Vientiane, China is now planning to follow suit with a Chinese language centre in Vientiane.
Vietnam is another major competitor for regional influence and ‘soft power’ over Laos. Ten out of 11 members of the current Standing Committee of Laos’ Politburo speak Vietnamese fluently, having studied or worked in Vietnam. But Ian Storey of ‘Asia Media’ recently argued that “within the next decade or so, China seems destined to become the LPDR’s largest trade partner and source of external funding, and hence its new closest friend in Asia”. (China and Vietnam’s Tug of War Over Laos, www.asiamedia.ucla.edu)
Li Hui, a Chinese entrepreneur resident in Laos, agrees. Though Japan tops the donor list and Thailand has long-standing economic influence in Laos, he says, communist-led Laos would rather keep some distance from those countries, for historical and ideological reasons. Yang Guowei, head of China’s Youth Volunteers Team in Laos, describes Vietnam as the country’s closest peer and China as its most reliable elderly brother.
Increasingly, it is the economic rather than political relationship that matters to China. A report released in 2004 by the Yunnan-based non-government organisation (NGO) Green Watershed concludes that from the 1950s to 1991, Yunnan (and China)’s economic and trade relationship with the Mekong river countries was integrated into the framework of ‘politics first, economics second’. But over the last decade, the emphasis has switched as China’s fast-growing and resource-hungry economy looks for timber, rubber and minerals that Laos is ready to exchange for cash and higher GDP growth. (The GDP per capita of Laos, which has Least Developed Country status, was 438 dollars in 2005.)
Fang Yun, a Lao expert at the South-east Asia Research Institute of the Yunnan Academy of Social Sciences, confirms that her research focuses mainly on economic and trade links between the two countries. The Institute’s deputy director, Liu Zhi, notes that a set of books it has published on China’s economic and trade cooperation with five countries in the Mekong region “sells surprisingly well”. A large proportion of buyers, she says, are Chinese business people looking for opportunities in the South-east Asia market.
Transfer of Skills
As follow-up technical assistance to the construction of the Luang Prabang Friendship Hospital, a team of six doctors, an administrator and an engineer from Yunnan No. 1 People’s Hospital arrived in Luang Prabang in March 2005. During the doctors’ one-year placement, they are expected to develop new medical services and train local staff.
In the hospital’s attached kiosk, thirty-something Dr Li Zhi relaxes over a bottle of Beer Lao. “Chinese experts help them provide lots of medical services, which they couldn’t handle before,” he says. “As a result, the number of patients and the turnover has soared. Take the Radiosurgery department I serve -- its turnover has tripled this year from two million kip (about 185 dollars) to six million (555 dollars) now.”
The hospital has more than 200 staff, most of whom have only completed medical technical school. The most qualified staff member is Dr Parotha, who holds a master’s degree at south-west China’s Guangxi Medical University.
“I teach medical knowledge and surgical skills twice a week,” says Dr Li. “But the extremely low pay -- the hospital president earns the highest monthly wage of about 400 yuan (50 dollars) -- drives most medical staff to do other businesses to earn more. This naturally leads to low efficiency at work and training.” Language is another problem since most staff can barely speak English or Chinese.
“Once,” Dr Li continues, “I found medicines worth several hundred thousand yuan, donated by China, untouched -- but already approaching their expiry date. All the descriptions were in Chinese, which none of them could understand.” Even more astonishingly, he once found some French-manufactured barium meals (medical tests used to examine the condition of the digestive tract) that expired more than 30 years ago. Nobody here knows what barium meals are or how to use them, he says.
It seems that both Lao and Chinese governments have begun to realise that the building of human capacity is essential to avoid wastage of aid efforts. Chinese experts and trainers were thus added to the Luang Prabang hospital project at the urging of the Lao side, which was especially keen to gain expertise in herbal medicine, says Dr Li. The Chinese experts remain on the payroll of their original work unit, but the Ministry of Commerce pays an additional monthly allowance of about 5,000 yuan (625 dollars) for each. In addition to receiving Chinese technical assistance in Luang Prabang, the Friendship Hospital sent 17 Lao doctors to receive hands-on training in Yunnan province in 2004.
Indeed, training and study opportunities for Lao people are multiplying in China, especially in Yunnan. Some students pay their own way. For example, Saisaly and Pasouvong, both from Laos’ northern Phongsaly province, are in their first year studying at the Yunnan Finance and Trade College, majoring in international business. Their annual tuition fees and accommodation cost 20,000 yuan (2,500 dollars), and after graduation, they hope to find management positions in Laos, preferably in the government.
At Yunnan University, there are no less than 50 students from Laos studying language, tourism and economics. Some of them are supported by the government of China, which now offers 55 scholarships for Lao nationals each year to study at some of China’s most prestigious universities.
Since 2001, the government of Laos has also provided scholarships to study Chinese, agriculture and forestry at the Teacher’s Training School in Yunnan’s Mengla county, close to the border with Laos. Each student receives an annual allowance of 5,400 yuan (675 dollars).
While there are no detailed statistics on how many Lao officials and managerial staff have received training in China, the Ministry of Commerce’s 2004 Yearbook shows that in 2003, the Chinese government trained 1,480 people from 107 countries in public management and technology.
More Chinese Expatriates
Development assistance is also bringing more and more Chinese citizens into Laos. Li Hui was dispatched in 1996 to work in the Lao office of China’s Broadcasting and Television International Technical Cooperation Corp. This company had won an aid contract in 1991 to help Lao National Television set up a reception station, enabling Laos to receive transmissions from the state-run China Central Television. The company subsequently won other Lao government contracts, and Li also set up his own businesses in Laos.
In an interview, he says he never imagined he would settle down in Laos. “At that time, not many people were willing to come to Laos, which in most people’s eyes is a poor, small neighbour. Even my mother, who lives in rural Yunnan, sees it that way.” A decade after being sent to Vientiane, he is running a technology development company, a restaurant in the Lao capital, and driving a Japanese car, just like any successful entrepreneur in Beijing.
There are short-term visitors, too. China’s Central Youth League has deployed a youth volunteer team in Laos since 2000. In 2005, the team comprised 15 members, mostly from Shanghai but including three from Yunnan. They live in a privately-owned hostel in Vientiane, with two to four members sharing each room and washrooms.
Team leader Yang Guowei is a young communist cadre from the Shanghai Municipality Youth League Committee. He talks animatedly about his work teaching Chinese to a score of Lao university students and government officials. Realising that teaching language also involves teaching culture, Yang abandoned Chinese character-based teaching methodologies in favour of using real-life contexts like trips to the market. Other members teach English, horticulture, information technology, sports and music. “We have strict rules for outings and sick leaves,” says Yang. “As Chinese volunteers, we have a duty to maintain a good image and win local people’s recognition for our work.” This means, among other things, that they steer clear of Vientiane’s nightlife.
Their Japanese counterparts, who have been doing volunteer work in Laos for 40 years, usually work as unpaid staff working on various official and NGO-supported projects.
Those Contentious Dams
China Eastern Airlines runs two direct flights from Kunming and Vientiane every week. Engineer Zhao Weiping happened to sit next to this correspondent during a packed flight in early December 2005. He works for Sinohydro Corp, a major contractor that is now starting work on a new hydropower station, Seset II, in southern Laos.
According to Zhao, Sinohydro makes a gross profit of roughly 10 percent of the value of each contract. This is no small sum, given that a medium-sized project such as Nam Mang III Hydropower Station, which Sinohydro completed in 2004, costs hundreds of millions of dollars.
The ambitious plans of Laos’ government involve the building of 50 dams on the Mekong River and its tributaries. The Kunming local daily ‘Spring City Evening News’ quoted Lao Premier Boungnang Vorachit as saying in July 2005 that he hopes the landlocked country can earn more foreign currency by developing hydropower and exporting electricity to neighbouring countries. He urged enterprises from China, and especially from neighbouring Yunnan, to grasp the business opportunities presented by Laos’ plans.
Lao senior officials have in fact repeatedly expressed support for the development of hydropower. From 1988 to 2000, this booming industry attracted 63.6 percent of total inward foreign investment of 7.07 billion dollars, making hydroelectricity a major foreign exchange earner for the country.
|
Value of Laos’ Electricity Imports and Exports
(1996 to 2000 in millions U.S. Dollars) |
|||||
|
|
1996
|
1997
|
1998
|
1999
|
2000
|
|
Imports
|
14.67
|
12.44
|
11.40
|
15.55
|
8.00
|
|
Exports
|
29.69
|
27.08
|
32.70
|
57.12
|
107.00
|
|
Net export value
|
12.02
|
14.64
|
21.30
|
41.57
|
99.00
|
|
Source：Economic Bureau, Chinese Embassy in Laos
|
|||||
However, protests continue against the Nam Theun II hydroelectric project, which is jointly funded by the World Bank and ADB. Critics point to its effects on local ecology and communities.
Groups working on Mekong issues are also concerned about the impact of dredging in the Mekong River. This has been carried out upstream in Yunnan in order to allow larger cargo vessels to use the river for trade and commerce. Governments on both sides of the border have also agreed to develop river sightseeing tours.
Conservationists like Kate Lazarus, Vientiane-based senior programme officer of the World Conservation Union (IUCN)’s Mekong Region Water and Nature Initiative, fear that increased navigation may spoil the ecology of the river and threaten traditional fishing. However, local NGOs on both sides of the border are still young and weak, with little space for growth under current government policies.
Sinohydro’s Zhao Weiping says that all the company’s projects have passed environmental impact assessments. He acknowledges that big hydropower projects unavoidably have impacts on the local environment, but says the company minimises the harm as much as possible. “After all, it’s China’s official aid project. And we attach importance to the potential of Laos’ hydropower market.”
As part of the Nam Mang project, Sinohydro is also building six transformer substations. Visiting one construction site 17 kilometres north of Vientiane, I found a couple of Chinese labourers still at work at dusk. A worker from Sichuan province, surnamed Zhu, expressed contentment with his life in Laos: “It’s warm here, and Lao people are very friendly.” Chinese workers, says Zhu, are often invited to attend the wedding feasts of local villagers, in whose eyes the Chinese labourers are rich. Indeed, Chinese labourers employed abroad generally earn at least twice of what they would make at home.
But Dr Yu Xiaogang, founder of the Yunnan-based Green Watershed, points to the downside of an influx of Chinese labour. During field trips to northern Laos, he has seen many Chinese migrants coming from as far as Hunan and Hubei. This, he says, has sparked the emergence of a commercial sex industry that is driven overwhelmingly by demand from the ‘rich’ Chinese.
At the end of 2005, the Laos government itself published new regulations in an effort to clamp down on and reduce undocumented migrants, mainly from China and Vietnam.
Another looming area of contention is likely to be the impact of China’s increased activity on rich forest resources in northern Laos -- as China’s booming automobile industry pushes up the country’s demand for rubber, and as furniture and construction material manufacturers feel the pinch of China’s domestic ban on logging.
During a Yunnan-Northern Laos Cooperation Working Meeting, held in Kunming in December 2005, Lao officials pledged to provide ‘favourable policies’ for cooperation and ‘convenience’ for private investment in agriculture and forestry. Environmental campaigners will likely regard assurances like these as ominous developments.
State Secrets
Laos is by no means the only recipient of Chinese assistance funds. According to Chinese government reports, China signed aid agreements with 99 countries and organisations in 2001, with the number rising to 105 in 2003.
The Chinese Academy of International Trade and Economic Cooperation (CAITEC), an official think tank affiliated to the Ministry of Commerce, is located within a quiet Beijing courtyard, several kilometres north of the grand Chang’an Avenue where the ministry itself is situated. The director of the Development Aid Research Department declined an interview request, claiming that all information related to China’s foreign aid is in principle a ‘’state secret”.
Avoiding domestic criticism is one of the government’s main concerns. Despite two decades of rapid economic growth, many Chinese people still struggle to meet their basic needs, and some argue that the government should help them before sending aid abroad. Reports of aid packages for North Korea, for instance, have aroused vigorous debate in websites.
But although consolidated information is hard to find, individual aid grants and contracts are now widely reported. For example, detailed information about the Vang Vieng cement plant, one of China’s ‘model’ aid projects, can be found on China Cement Web and in numerous trade magazines. The Ministry of Commerce’s annual yearbook provides a summary of grants, loans and contracts, and the China Export and Import Bank reports statistics on credit and investments it has made abroad.
A researcher in the CAITEC Foreign aid research department, who prefers not to be named, feels that the institution’s research has in fact little influence on China’s national aid policy. She also says she does not think China has a clear aid strategy yet. Rather, decisions are announced by senior leaders, often to facilitate official visits overseas.
Senior officials, such as the director general of Ministry of Commerce’s Department of Foreign Aid Wang Hanjiang, have repeatedly stressed that Chinese aid is completely ’untied’ and ’sincere’, and not linked to any political reform agenda. Emergency humanitarian aid certainly appears to be growing: China donated 180 million yuan (22.5 million dollars) to countries struck by the December 2004 tsunami, and 213 million yuan (26.6 million dollars) for relief efforts following the Pakistan earthquake in October 2005.
However, China’s large overseas loans, which the government appears not to count as part of its international aid programme, do appear clearly linked to China’s commercial interests and natural resource needs. These loans are beginning to attract international attention, arousing concerns over lack of transparency.
There have been some signs of change. In 2002, the Ministry of Commerce introduced a new evaluation system for its aid projects, and the following year began to draft regulations on China’s aid.
Nevertheless, with China’s aid programme set to swell on the wave of the country’s double-digit economic growth, Chinese and international civil society organisations are likely to start calling for more effective programming targeted toward human development, for greater transparency and for greater accountability -- both to China’s taxpayers and to aid recipients in poorer countries like Laos.
There are short-term visitors, too. China’s Central Youth League has deployed a youth volunteer team in Laos since 2000. In 2005, the team comprised 15 members, mostly from Shanghai but including three from Yunnan. They live in a privately-owned hostel in Vientiane, with two to four members sharing each room and washrooms.
Development assistance is also bringing more and more Chinese citizens into Laos. Li Hui was dispatched in 1996 to work in the Lao office of China’s Broadcasting and Television International Technical Cooperation Corp. This company had won an aid contract in 1991 to help Lao National Television set up a reception station, enabling Laos to receive transmissions from the state-run China Central Television. The company subsequently won other Lao government contracts, and Li also set up his own businesses in Laos.
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Mekong ICT Camp 2010
The Mekong ICT Camp (http://mekongict.org), a biannual training workshop on information, communication, and technologies for citizen media, community health, and civil society practitioners in Mekong subregion, is accepting applications until Mar. 31, 2010. Participants are welcome from the Mekong countries, including Burma, Cambodia, Laos, Thailand, and Vietnam.
COMING SOON: 'TALKING GENDER IN THE MEKONG MEDIA'
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BANGKOK - Do media organisations in the Mekong Region think that gender sensitivity, including giving voices to women, is part of doing better stories? How do they define it within the context of their societies and how do they report on different genders and sexuality? Do they include the use of gender-friendly language in their stylebooks and training programmes? How much is using a gender lens a news habit?
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