Effectiveness and Challenges of Chinese Enterprise's Alternative Planting Projects in Northern Laos: A Porter’s Diamond Model Analysis

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Prof.Dr.Shulan Zhao

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Alternative Development has achieved substantial success in reducing opium poppy cultivation over the past two decades. However, evaluations regarding these development projects significantly varied between the Chinese and international perspectives. This paper employs Porter’s Diamond Model to examine the case of Chinese-led alternative planting projects in northern Laos, with a focus on project implementation and their impact on agricultural environment in the region. Our analysis reveals that these Chinese-aid projects have played a positive role in reducing opium cultivation and promoting agricultural development in the region. However, aid projects are not a “cure-all” but rather a catalyst and instrument for fostering agricultural cooperation between China and Laos. To achieve sustainable effects, it is crucial to apply lessons learned from the exemplary aid projects, more importantly, Chinese enterprises are advised to take the lead in leveraging market mechanisms by collaboration with local partners for sustainable development.

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