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State of the Basin Report 2003 Executive Summary Meeting the needs, keeping the balance Mekong River Commission

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State of the Basin Report2003

Executive Summary

Meeting the needs, keeping the balance

Mekong River Commission

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State of the Basin Report

Executive Summary

2003

The Mekong River Commission

June 2003

Mekong River Commission

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Published in Phnom Penh in June 2003 by the Mekong River Commission

This document should be cited as MRC. 2003. State of the Basin Report: 2003. ExecutiveSummary. Mekong River Commission, Phnom Penh, 50 pages. ISSN 1728:3248

© Mekong River CommissionP.O. Box 1112, 364 Monivong Boulevard,Phnom Penh, Cambodiaemail: [email protected]

Authors: Ann Bishop, Bun Veasna, Ian Campbell, Christoph Feldkotter, Gunhild Sander Garsdal,Lieven Gerrinck, Don Griffiths, Peter Hodgkinson, Jacob Hook, Toru Ishihata, Muanpong Juntopas,Margaret Little, Ann Lund, Susan Novak, Pech Sokhem, Michael Seager, Sok Saing Im, WorawanSukraroek, Keith Ward, Adrian Young

Map Makers: Penroong Bamrungrach, Christoph Feldkotter, Manithaphone Mahaxay, Noun Kunthea,Sou Virak

Photographers: Chris Barlow, CEDAC, Pete Davidson, Peter Degen, Global Witness, Zeb Hogan,Jim Holmes, Jorgen Jensen, Mikkel Oestergaard, Anders Poulsen, Michael Wild, Wildlife ConservationSociety, Niek van Zalinge

Advisors: Christopher Barlow, Ian Campbell, Stephen Carson, Robyn Johnston, Muanpong Juntopas,Ann Lund, Solieng Mak, Sein Mya, Somsanith Nhoybouakong, Susan Novak, Claus Aagaard Pedersen

Design and Layout: Boonruang Song-ngam

Condensation of executive summary and project coordination: Ann Bishop

The opinions and interpretations expressed within are those of the authors and do not necessarily reflect theviews of the Mekong River Commission.

The designation employed and the presentation of material in this publication do not imply the expressionof any opinion whatsoever on the part of the Mekong River Commission concerning the legal status ofany country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers orboundaries.

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Table of contents

1. Introduction ............................................................................................................ 1

2. Physical landforms of the Mekong Basin ............................................................... 3

3. Water in the Mekong Basin .................................................................................... 5

4. Biota of the Lower Mekong Basin .......................................................................... 8

5. Peoples of the Mekong ......................................................................................... 11

6. Macroeconomic trends in the Lower Mekong Basin ............................................ 15

7. Fisheries ................................................................................................................ 18

8. Agriculture ............................................................................................................ 25

9. Forestry ................................................................................................................. 29

10. Hydropower ........................................................................................................ 33

11. Trade and transport ............................................................................................. 37

12. Domestic water and sanitation ............................................................................ 40

13. Floods in the Lower Mekong Basin.................................................................... 43

14. Cooperation in the Mekong Basin ...................................................................... 47

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Preface

The Mekong River and its tributaries comprise one of the largestriver systems in the world. As a result of decades of war and isolationthat ended just a few years ago, the Mekong’s water and relatedresources are largely undeveloped. The volume of water flowingdown the Mekong has been little reduced by dams and irrigationand, overall, water quality is good. The Mekong’s fish are amongthe most diverse and abundant in the world.

Development of the Mekong Basin is necessary and it is alsoinevitable. Due to a wealth of unexploited resources, pressure frominvestors, and a rapidly growing population in need of livelihoodsand better standards of living, the pace of development in the basinis increasing rapidly.

Although exploitation of the basin’s resources could be oftremendous benefit to the peoples of the Mekong Basin, who areamong the poorest in the world, it could also cause tremendoushardship if it is not properly planned, managed and monitored.

An estimated 70 percent of the people who live in the Lower MekongBasin are subsistence farmers. They supplement the rice they growwith the wild fish they catch and plants and animals foraged fromnearby forests and wetlands for use as food, materials and medicines.If the volume of water in the river system declines and/or the timingof the seasonal rise and fall of water changes, these wild resourcesmay decline, along with livelihoods and food security for themillions who depend on them. Changing water levels could alsoadversely impact agriculture, aquaculture, navigation, and watersupplies for household, commercial and industrial use.

Because the potential as well as the risks of exploiting the Mekongare significant, it is crucial that decision-makers have timely andaccurate information on water-related sectors and the impact thatdeveloping them is having, and could have on the economy,environment and human welfare. In support of this objective, theMekong River Commission is launching a series of reports on thestate of the Mekong Basin.

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This document summarises the key findings in MRC’s first Stateof the Basin Report. As with the full report, this Executive Summaryprovides an introduction to the geography, hydrology, plant andanimal life of the Lower Mekong Basin, as well as the social andeconomic circumstances of its peoples. It also reviews keyeconomic, environmental and social issues related to fisheries,agriculture, forestry, hydropower, trade and transport, domesticwater and sanitation, as well as flooding. In keeping with themandate of the Mekong River Commission, the emphasis is onissues that relate directly to water resources and their management.

Since the inception of the Mekong River Commission in 1995,Cambodia, Lao PDR, Thailand and Viet Nam have been stronglycommitted to collaborating in the use, management andconservation of water and related resources and this report is onestep in the process of reviewing the condition of the basin and howit is changing. MRC hopes that it will contribute to a betterunderstanding and dialogue among the range of stakeholders whowill determine the future of the Mekong River Basin.

MRC also hopes that readers will contribute to the success of futureeditions of the State of the Basin Report by suggesting topics toadd, errors to correct and additional sources of relevant data. MRC’sfirst State of the Basin Report is very much a work in progress andit is hoped that future editions will reflect the valuable adviceprovided by its readers.

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Introduction

There is evidence of human settlement in the MekongBasin dating back 6,000 years, and people havecertainly been living along the river far longer thanthat. More than a dozen sites of human habitationdating from 8,000-10,000 years ago are known inThailand and Viet Nam, and although none are yetknown in the Mekong Basin, it is probably just a matterof time before they are discovered. Indeed, it seemslikely that the basin was inhabited by human ancestorssuch as Homo erectus about one million years ago.

But although the basin has an undoubtedly long historyof human occupation – far longer than that for mostother river basins outside of Africa, the impact ofhumans over the centuries was slight. Until quiterecently, population densities in most of the basin werequite low, although from the time agriculture anddomesticated animals were available, the region hadthe capacity to produce enough food to support muchlarger and denser populations than most other regionsof the world. For example, Thailand is estimated tohave been 70 percent forested in 1936, with relativelyfew areas cleared.

The wars fought in the 17th and 18th centuries betweenthe various kingdoms that today would be part ofMyanmar, Thailand, Lao PDR and Cambodia, werefought largely to obtain population, not land. At thetime of early European accounts written during the

16th and 17th centuries, the population of the basinwas relatively small and distributed in smallsettlements, separated by extensive areas of forest.

Only after the Second World War did the basin beginto see relatively rapid increases in population andextensive conversion of forest to agricultural land. Thiswas particularly true in Northeast Thailand, which nowhas little forest cover remaining and one of the highestpopulation densities in the basin.

Rapid population growth and industrialisation in thecountries that share the Mekong Basin have meant thatthe basin has served as a resource “mine” foreconomies outside the basin. As the population hasincreased, and the technology available for exploitingresources has become more sophisticated, pressureson resources within the basin have become greater.Many of the people in the basin remain poor, and it iswidely believed that the per capita availability ofresources is declining. This has led to growingconcerns within governments and civil societyorganisations about increased human impacts on thebasin’s environment, and the consequences that thismay have for its people. The challenge for the Mekongcountries is how to develop and improve the economicconditions and livelihoods of their people whilstmaintaining the biodiversity and ecological health ofthe Mekong Basin on which so many depend.

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Figure 1. Topography of the mainland portion of Southeast Asia

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The Mekong River Basin comprises some 795,000 km²,and stretches about 2,600 km across Southeast Asia fromthe Tibetan Plateau to the South China Sea. It is the 21st

largest river basin worldwide, incorporates areas of sixcountries (Table 1), and comprises six broadphysiographic regions (Figure 1).

Six distinctly different physio-geographicregions

Lancang River Basin: The Lancang, as theMekong is called in the Peoples’ Republic ofChina, drops more than 4000 m as it flows fromits source on the Tibetan Plateau down to theborder between China and Myanmar.

Northern Highlands: With elevations up to 2,800m, the highlands run from southern YunnanProvince, through Myanmar, Lao PDR andnorthern Thailand, and eastwards into the northernend of the Annamite Cordillera in Viet Nam.

Korat Plateau: Lying largely within Thailand, theKorat Plateau slopes gently to the east, with ancientlava flows scattered along its southern edge. TheMekong River cuts deeply into the eastern rim ofthe plateau, forming sheer cliffs above the river insome places, and underwater canyons up to 100m deep in others.

Eastern Highlands: A southern extension of theNorthern Highlands, these mountains extend about700 km from Lao PDR through Viet Nam, withaltitudes as high as 2,800 m. A number of theMekong’s larger tributaries flow from this part ofthe basin, including the Se Kong, Se San and SrePok Rivers.

Lowlands: With elevations just above sea level,the lowlands comprise the Cambodian floodplainsand the delta. Each year, at the peak of the rainyseason, floods cover vast areas of lowlands acrossCambodia to the mouth of the river in Viet Nam.The Mekong branches at Phnom Penh, with theBassac forming the western arm of the delta, andthe Mekong proper forming the eastern arm. Thedelta area extends across some 65,000 km². In theupper delta, the river channels are lined by naturallevees formed through silt deposition. Lowerdown within the Vietnamese section of the delta,there is an elaborate network of canals.

Southern Uplands: The southern uplands insoutheastern Cambodia are extensions of theNorthern Highlands and include the Cardamomand Elephant ranges in Cambodia. Both theseranges are still densely forested, with lowpopulation densities, and are considered significantareas for conservation.

Physical landforms ofthe Mekong Basin

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The Great Lake on the Cambodian floodplain is the largest body of fresh water in Southeast Asia and formsone of the key features of the lowlands. During the flood season, water flows from the Mekong mainstreamnorthwest to contribute most of thewater that fills the Great Lake. Thedepth of the Great Lake increases froma dry season maximum of 3.6 m tomore than 10 m, and the area of openwater increases from approximately2,500-3,000 km², to up to 13,000 km².As water levels fall in the MekongRiver in October and November, flowsinto the Great Lake reverse and muchof the water flows out and down theTonle Sap River. Through the dryseason, water from the Great Lakecontinues to supplement the flow of theMekong, providing some 16 percentof the dry season flow.

Description Country or province

Yunnan Myanmar Lao PDR Thailand Cambodia Viet Nam MekongProvince, River BasinPRC

Area (km²) 165,000 24,000 202,000 184,000 155,000 65,000 795,000

Catchment as 38 4 97 36 86 20% of countryor province

Catchment as 21 3 25 23 20 8 100% of MRB

Table 1. Territory within the catchment of the six Mekong River countries

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Climate

The climate in the Mekong Basin ranges from tropicalto cool temperate. Some of the higher peaks on theTibetan Plateau are permanently snow-capped andmuch of this part of the basin is under snow in winter.Dry season flows downstream are maintained partlyby the melting of these snows. At lower elevations inChina’s Yunnan Province, the climate warms andannual rainfall is as high as 1,700 mm. In the LowerMekong Basin, the largely tropical climate has twodistinct seasons – a wet season from June to Octoberand a largely-dry season for the rest of the year. In thehottest months of March and April, averagetemperatures range from 30°C to 38°C, depending onlocation and altitude. Coolest temperatures occurbetween November and February. At higher elevationsin Lao PDR, winter temperatures average 15°C. In thelower basin, the rain soaked uplands in Lao PDR andCambodia receive the most rain (3,000 mm), and thesemi-arid Korat Plateau in Northeast Thailand, the least(1,000 to 1,600 mm).

Water flows

Compared with other large rivers, the volume of waterflowing through the Mekong each year is remarkablypredictable. Between high and low flood years thereis relatively little difference in volume. Although no

changes in rainfall patterns are apparent since 1950,more water has been flowing through the river duringthe dry season and less during the wet season. Themost likely explanation is human intervention throughthe building of dams for irrigation and hydropower.These store water, reducing water flows during the wetseason, and release water during the dry season toirrigate land and/or generate power. Concerns that damsand irrigation projects are reducing the Mekong’s dryseason flows seem to be unfounded

Water quality

The Mekong’s water quality has been measured onceor twice per month at 98 sites since 1985. Measuresare taken to determine the amount of sediment in thewater, its salinity, and levels of nutrients. Data indicatethat water quality in the Mekong is generally good,especially when compared with many other great riversin the world. Sediment levels are declining, as issalinity, but there have been increases in nutrients(nitrogen and phosphorus) at most sites in the delta.

SedimentConcerns have been raised that there appear to beincreased sediment levels in the river. This perceptionhas led to worries that within a few decades, the vast

Water in the Mekong Basin

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Figure 1. Rivers and water bodies in the Mekong Basin

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Country or province Yunnan Myanmar Lao PDR Thailand Cambodia Viet Nam Mekong Province, River Basin PRC

Catchment 22 3 25 23 19 8 100area as %of MRBAverage flow 2410 300 5270 2560 2860 1660 15,060(m3/sec)from areaAverage flow 16 2 35 18 18 11 100as % of total

Table 1 Approximate distribution of MRB water resources by country

and highly productive Tonle Sap Great Lake inCambodia will silt up, with enormous consequencesfor aquatic life and fisheries. However, records datingback to 1992 show that sediment levels are actuallydeclining. Research also shows that the sediment atthe bottom of the Tonle Sap Great Lake is increasingat a rate of only 0.01 mm per year. At this rate it willtake thousands of years for the lake to fill with silt.The most likely explanation for the decline in sedimentis that it is being trapped upstream behind the damsthat have been built for hydroelectric and irrigationprojects.

SalinitySalinity levels have been declining in both NortheastThailand and the Mekong Delta. The most likelyexplanation for the decline in salinity is that theoperation of increasing numbers of small-scalereservoirs is increasing dry season flows and thusdiluting concentrations of salt. In the Mekong Delta,seawater intrusion has been a problem, threatening bothagricultural land and domestic water supplies. Levelsthere have declined due to the construction of dykesthat block the inflow of tidal water and/or use ofincreasing volumes of fresh water to flush out seawater.

NutrientsThe trend in nutrient levels in the Mekong is a causefor concern. Levels of nutrients at almost all samplingsites in Viet Nam have risen, most likely because ofincreasing use of fertilisers in agriculture. Levels arenow approaching those that result in overgrowth ofalgae and negative consequences for aquatic life. Theflushing action of river flows may be sufficient toreduce the likelihood of severe algal blooms, but ifwater velocity in the mainstream slows as a result ofbarriers to prevent seawater intrusion, the problemscaused by nutrients could become far more severe.

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The Mekong Basin occurs at the junction betweenseveral different biogeographical zones. The northernend of the tropical Malayan Peninsula meets thesoutheastern extension of the Himalayas and thesouthern edge of the temperate region of China. Thisresults in a great variety of ecosystem types and a widerange of species, although probably fewer than in theextremely biodiverse tropical forests of southernpeninsular Malaysia and Indonesia.

Vegetation

Forests vary depending on altitude and rainfall. Wetevergreen forest occurs in the Cardamom and ElephantMountains in Cambodia, and the Annamite Range inViet Nam. Semi-evergreen or dry evergreen forest iswidespread across northern and central Thailand,extending through Lao PDR and Cambodia in regionswhere mean annual rainfall is generally between 1200mm and 2000 mm, and the dry season is 3-6 months.These forests characteristically contain mixeddeciduous stands and/or deciduous dipterocarps – themost widespread forest type in mainland Asia.

Mixed deciduous forest, which includes teak, extendsfrom Myanmar through northern Thailand and LaoPDR, in areas with 1,000-1,500 mm annual rainfalland 5-7 months of drought. Deciduous dipterocarpforest is the most widespread forest type in mainlandSoutheast Asia. Under heavy human pressure, the

lowland areas of deciduous dipterocarp forest may beconverted to open savannah woodland.

Freshwater swamp forests occur in areas of seasonalflooding and are extensive around the Tonle Sap GreatLake.

Lower montaine forests normally occur above 800-1,000 m altitude in northern Thailand and Lao PDR,where annual rainfall is above 2,000 mm, and the meantemperature of the coldest month is below 15°C.Montane conifer forests are common on drier montanesites with less than 2,000 mm annual rainfall atelevations of 800-1,500 m.

Vertebrate fauna

Although data on the vertebrate fauna of the MekongBasin is lacking, an MRC study in 1997 estimated 830mammal species, 2,800 bird species, 1,500 fish species,250 amphibians and 650 reptiles.

A number of the mammals associated with the riverare considered rare. These include the fishing cat, threespecies of otter and the Irrawaddy dolphin. Wetlandand riverine birds have declined as well. Of the 35species of bird known to have declined seriously inLao PDR over the past 50 years, 24 are wetland birds.Worst affected are species that rely on sandbars andlarge rivers as breeding or feeding habitats.

Biota of the Mekong Basin

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AmphibiansThe largest wild populations of the Siamese crocodileare thought to occur in Cambodia in the CardamomMountains area. Some estuarine crocodiles may stillexist in the Mekong Delta, where a maximum numberof 100 were estimated in 1994. Many of the aquatic orsemi-aquatic turtles, snakes and lizards are hunted forsubsistence or sold in local markets as food or medicine.Both snakes and many turtle species are exportedillegally, and some previously-abundant species suchas box turtles are now considered vulnerable.

FishesThe freshwater fish fauna of the basin is thought to beparticularly diverse. Some 481 species have beendocumented in Lao PDR and 500 in the CambodianMekong. Although the diversity of fish species in theMekong Basin is large, it not remarkably so. The Zaire/Congo Basin in West Africa has 669 species and theAmazon about 1,200. However, other large rivers arefar less rich, including the Nile in Africa with 320species, the Mississippi in North America with 241and the Murray-Darling in Australia with only 28.

Two recent changes in the fish fauna are theintroduction of a number of species from outside thebasin and the apparent decline in large fish in the basin.The giant catfish, the thicklip barb and the giant barbare now all rare, and some are considered endangered.Possible reasons include the fact that larger fish speciesmay be more affected by loss or disruption of theirhabitat, that larger species may be more easily caught,and that larger species take longer to mature. Typically,fisheries deplete the larger fish species first, and thenprogressively focus on the smaller-sized fish. Thus thedecline of the larger fish may be the first indicator ofoverfishing.

Invertebrates

Invertebrates, or animals without backbones, comprisemost of the living things on earth and most of theMekong Basin’s biodiversity. Although limited,documentation shows that there are some 120 species

of snails and mussels, at least 11 of which are endemicto the river. This is the greatest known biodiversity ofsnails in any freshwater system in the world. MobileBay in the United States had even greater diversity butabout a third of the species have been lost due topollution and flow regulation.

Aquatic invertebrates are an important source of foodin the Mekong Basin, particularly in the dry seasonwhen fish are less available. Researchers havedocumented 30 types of aquatic invertebrates that areconsumed in Northeast Thailand.

In several areas, human impacts are obvious. Studiesshow that fauna below several dams differ fromthose elsewhere in the river system, indicatingimpacts of the dams. The adverse effects of elevatedsalinity and nutrients on fauna are also apparent atsome locations.

Waterborne parasites

Two parasites that have attracted particular attentionare schistosomaisis or bilharzia and liver fluke. Bothare caused by platyhelminth worms that use snails asan intermediate host.

Schistosomaisis is presently restricted mainly to theregions around Khone Island in southern Lao PDR andin northern Cambodia. Human infections are thoughtto occur mainly in the dry season when water levelsare low and snail numbers are higher. If patterns ofriver flow change, they could influence the populationsof snails, and thus human infection. Equally, improvedsanitation assists in reducing the infection cycle, asdoes treatment of infected individuals.

Liver fluke infection appears to be most common inLao PDR, and the route of infection is though theconsumption of uncooked or inadequately cooked fish.Cooking fish properly kills the cysts, thus preventinginfection. The infection is relatively easy to treat, butre-infection readily occurs because hosts cannotdevelop resistance.

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Figure 1. Population density in the Lower Mekong Basin

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Geographic distribution

Over 55 million people live in the Lower MekongBasin. The percentage of territory and populationwithin the basin varies considerably from one countryto another. Cambodia and Lao PDR lie largely withinthe basin, but together constitute only 25 percent ofthe basin’s population. The basin territory in Thailandis only 37 percent of the country but comprises 40percent of the basin’s population. In Viet Nam, theMekong Delta and Central Highlands comprise only20 percent of the country, but contribute 31 percent ofthe basin’s population.

Approximately 80 percent of the basin’s populationlive in rural areas. Population density is very low at 87people per km2. However, if the limits of arable landare considered, net densities are significantly higher,particularly in Lao PDR (465/km2) and Viet Nam (395/km2).

Ethnic diversity

The Mekong region is home to more than 70 ethnicgroups, most of which practice subsistence agriculturein upland regions. In Lao PDR, ethnic minoritiescomprise more than 60 percent of the population.Smaller ethnic minority populations are concentratedin northeast Cambodia, northern Thailand and theCentral Highlands in Viet Nam.

Peoples of the MekongMigration

People move frequently in the LMB, within andbetween countries. Rural-rural migrations occur aspeople relocate from densely populated to more remoteareas where they can obtain land or work. Of thosewho migrate to urban areas, many maintain links withtheir rural homes, sending much-needed cash back totheir families and moving back if they lose their jobs.

Population growth and structure

The population of the basin is growing rapidly. InThailand and Viet Nam, where women have betteraccess to education and health services, fertility rateshave dropped dramatically to near or below thereplacement level of 2.1 children per family. In ruralareas of Cambodia and Lao PDR, and rural and ethnicminority areas of all four countries, women continueto have more than five children. This means thatworking adults, particularly in Cambodia and Lao PDR,support a large population of young people.

Rapid population growth will continue for the next 20-30 years, despite the fact that birth rates are falling.The large population of young people born afterconflict ended in the 1980s are now reaching adulthoodand having families of their own. Projected populationgrowth rates of 2-2.5 percent per year will more thandouble the populations of Cambodia and Lao PDR by

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2025. In Thailand and Viet Nam, population growthwill be slower, but populations will still increase by20-30 percent. Overall, the basin’s population isexpected to grow from 55 million today to 90 millionby 2025. In urban areas, population growth will be 2-4 times higher than national rates. By 2020, anestimated one-third of the LMB population will live inurban regions.

The population of the LMB is very young and thereare more women than men. Due to a post-war babyboom in the 1980s, more than half the people inCambodia and Lao PDR are under the age of 15 years.Women outnumber men in many areas and they headmore than one-quarter of households. In older agegroups, particularly in Cambodia, men were killed inwar and civil strife. In younger age groups, men aremore likely to migrate in search of work.

Social development and gender equity

Social development varies widely withinthe basin. By the standards of theUNDP’s Human Development Index,Thailand and Viet Nam are middle-income countries and Cambodia and LaoPDR are low-income. On the UNDP’sGender Development Index (GDI),women in Thailand and the delta in VietNam are generally equal to men, but theirstatus is much lower in rural areas ofCambodia, northern Lao PDR and theCentral Highlands of Viet Nam.

Life expectancy

Life expectancy is lowest in Cambodia and Lao PDRat 54 years. In Thailand and Viet Nam, life expectancyof 69 years matches the regional norm for developingcountries. Women and urban residents tend to livelonger. Although life expectancy has increased in recentyears, poor health still reduces the number of healthy,productive years.

Mortality

Health conditions for children and women are amongthe poorest in the world, particularly in less developedareas of the LMB. Infant and under-five mortality ratesin Cambodia and Lao PDR are, respectively, 2.5 and 3

times higher than regional norms andmaternal mortality rates are 4-5 timeshigher than in Viet Nam and 10-12 timeshigher than in Thailand. Due to progressin the 1990s, mortality rates fell in manyparts of the LMB, but the under-fivemortality rate actually increased inCambodia due to high child malnutritionlevels (more than 45 percent). InThailand and Viet Nam, mortality ratesare much better and match or exceedregional norms. Further improvementswill take place in less developed areasif women have better access to educationand health services.

Public health problems

Malaria is a leading public health problem, as is HIV/AIDS. Cambodia has the highest and fastest growingrates of HIV/AIDS, although recent data suggest thesituation is stabilising. Rates in Thailand have fallendue to prevention programmes. However, women inthe general population and their unborn children arealso at risk because so many men migrate in search ofwork.

Literacy

Due to advances in the 1990s, approximately 95percent of the adult populations of Thailand and VietNam are literate. Literacy rates have also improved inCambodia and Lao PDR, but remain below the regionaldeveloping country norm of 85 percent. Women, ruralpeople and ethnic minorities have the lowest levels ofliteracy.

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School enrolment

Primary enrolment rates have increased to 75-95percent in LMB countries, with nearly universalenrolment in Viet Nam and in urban areas. Althoughequality has been achieved in Thailand and Viet Nam,in Cambodia and Lao PDR, fewer girls attend primaryschool than boys. Enrolment rates are substantiallylower in rural and ethnic minority areas and onlyabout half of all enrolled students complete primaryschool.

Secondary enrolment rates are only 40-50 percent ofprimary enrolment rates, and lower in rural areas thanin urban areas. Cambodia has the lowest rates inSoutheast Asia, and in Cambodia and Lao PDR, youngwomen account for only 30-40 percent of secondarystudents. In Viet Nam, male and female enrolment isequal in urban areas, but not in rural and ethnic minorityareas. Increasing enrolment and completion rates, andequity in enrolment, is considered essential for socialand economic development of the region.

Access to water, sanitation and electricity

Access to improved water supply, sanitation andelectricity varies across the LMB. These services aregenerally available in Thailand and Viet Nam, however,in Cambodia and Lao PDR, fewer than 40 percent ofhouseholds have safe water or adequate sanitation.Electricity is available to 15 percent of households inCambodia and 40 percent in Lao PDR.

Livelihoods and labour forceparticipation

Throughout the basin, rural households grow rice andother food crops, primarily for household consumptionand to sell or trade small surpluses. Lowland farmersare largely sedentary, while many upland farmersengage in shifting cultivation. Due to lack of irrigationand other inputs, productivity is generally low, withthe exception of the heavily-irrigated Mekong Delta

in Viet Nam, which is the world’s second-ranking riceexporter. In addition to farming and raising livestock,many rural households also catch fish and gather non-timber forest products (food, fuelwood, medicines,construction and craft materials) from commonwetlands and forests. These provide food security anda source of cash income.

Most adults and young people living in the basin areeconomically active. Three-quarters or more work inthe agricultural sector. Women’s labour forceparticipation rates are much higher than the regionalaverage of 51 percent. They account for 50-70 percentof the agricultural labour force and, in Viet Nam,women comprise nearly 70 percent of aquacultureworkers. Women make up a large part of the servicesector labour force, particularly in the informal sector,and over 90 percent of LMB garment workers arewomen.

Unemployment in rural areas is very low, but muchhigher in urban areas. Underemployment is asignificant, growing, but not well-documentedproblem in rural areas. In Viet Nam, for example,those in agriculture work an average of only 21 hoursper week.

Income

Income levels vary widely across the LMB. In 1996,national data indicated that wage levels in Thailandwere two and half times that of Viet Nam and five timesthat of Cambodia and Lao PDR. Urban incomes tendto be 2-4 times higher than rural incomes. Whileagricultural activities account for the majority ofincome, wages and profits from jobs, self-employmentand home businesses constitute up to one-third ofhousehold incomes. In general, women’s incomes are60-75 percent those of men.

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Poverty

Nearly 40 percent of the populationsof Cambodia, Lao PDR and Viet Namlive below the poverty line. InNortheast Thailand, 19 percent of thepopulation is poor. Between 1993 and1998, economic growth contributed tosignificant poverty reduction in VietNam and Lao PDR. Despite economicgrowth in Cambodia, poverty declinedonly marginally. In Thailand, povertylevels in the Northeast rose by almost5 percent after 1997 as a result of theregional financial crisis.

Many households have incomes justabove or just below the poverty line.Thus, positive economic growth can readily raisepeople out of poverty, and economic downturns ornatural disasters can push more people below the

poverty line. The gap in incomesbetween rich and poor, and betweenurban and rural or ethnic minorityareas is growing. Declines in povertylevels are mainly due to rising incomesin urban areas, to economic growth,but not to more equitable distributionof wealth.

Poverty involves a wide range ofdeficiencies that include: foodshortages that often last for six monthsor more; landlessness; insecure tenureor lack of sufficient and productiveland; lack of agricultural inputs(fertilisers, irrigation, equipment);

poor roads and poor access to markets and marketinformation; and inadequate education and healthservices.

LMB Country Population DataPopulation 2000 (est.) 2020 (proj.)2000 (est.) Total% Urban Total% Urban

Cambodia 9.8 13.1 16 20.5 26Lao PDR 4.9 5.3 24 8.1 36Thailand 23.1 62.8 22 75.1 33Viet Nam 16.9 78.1 20 100.2 28

Table 1: Population (millions)

Life Expectancy ChildLEB HALE IMR U5MR Malnutrition MMR

Cambodia 54 47 88 125 46 473Lao PDR 54 45 92 125 40 530Thailand 69 60 28 33 19 44Viet Nam 69 59 27 34 33 100Regional 69 34 44

Notes: LEB: Life expectancy at birth, years; HALE: Health-adjusted life expectancy,years (WHO); IMR: Infant mortality rate, per 1,000 live births; U5MR: Under-fivemortality rate, per 1,000 live births; Child malnutrition: % children under 5 yearsunderweight for age; MMR: Maternal mortality rate, per 100,000 live births; Regional:average for developing countries in East Asia and Pacific (World Bank)

Table 2: Social Development Indicators

1993-96 1997-1999Total Total Urban Rural

Cambodia 39 36 18 39Lao PDR 45 39 27 41Thailand 11 16 3 22Viet Nam 58 37 9 46

Table 3: Poverty (% households)

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Rapid economic change in recent years

In the last 15 years, economies within the LowerMekong Basin area have begun to change. Althoughthe majority of people still earn their livelihoods froma combination of subsistence farming, supplementedby fishing and foraging from wetlands and forests, inthe 1980s and 1990s, other sectors began to develop.Thanks to pro-private sector and foreign investmentpolicies, growth rates were double digit in Thailandin the late 1980s and early 1990s, and the economiesof the other three LMB countries grew at 5 percent inthe 1990s. In 1997, growth declined dramatically dueto the Asian Financial Crisis, which began with thecollapse of the Thai Baht. Since 2000, growth rateshave improved somewhat, but are still well below pre-crisis levels.

Thailand

Although industrial development in Thailand initiallyoccurred in the central part of the country, which liesoutside the Mekong Basin, incomes improved withinthe basin because so many rural people migrated tothe central region to work in industry and sentearnings home. Initially development within the basinarea of Thailand was limited to the commercialisation

of agriculture and agro-processing, but in recent years,the government has been promoting industrialdevelopment in the Northeast, centred around Korat.Thailand’s phenomenal growth stalled dramaticallyin 1997, with the onset of the Asian Financial Crisis.

Viet Nam

The greatest economic transformation in the 1990stook place in Viet Nam, which saw rapid developmentnot only in light as well as heavy industry and in thedevelopment of coal and gas reserves, but also in thecommercialisation of agriculture. Within the basinarea of Viet Nam, economic change has largely beenin the agricultural sector. In the delta, farms have beenconsolidated to make them more viable and irrigation,plus increasing use of fertiliser, improved seeds andother inputs have helped Viet Nam grow yields ashigh as five tonnes per hectare and become the world’ssecond highest exporter of rice. Commercialisationof agriculture is occurring in the Central Highlandsas well, as the government encourages lowlandfarmers to resettle and grow cash crops.

Macroeconomic trends inthe Lower Mekong Basin

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Cambodia

Beginning in the mid 1990s, with foreign investmentand increased export opportunities, Cambodia’s textileindustry grew rapidly to become the country’s leadingsource of foreign earnings. With the onset of the AsianFinancial Crisis, construction of new factories declinedbut the industry still continues to lead exports. Withfree enterprise promoted, the service sector has alsogrown rapidly. Shops, vendors and restaurants havemultiplied, along with hotels and other touristbusinesses. Upgrading of the airport in Siem Reap nearAngkor Wat to accommodate international flights hasgreatly increased tourist arrivals there. Unfortunately,due to lack of roads and other infrastructure, economicdevelopment has been largely limited to urban areas.Cambodia’s abundant fishery and the marketing of fishproducts is worth an estimated US$300 million, but dueto the large numbers of people involved, individualearnings are generally low. So is agriculturalproductivity. Lack of roads, credit, access to marketsand other factors mean that farmers cannot afford theinputs that have made agriculture so productive in theVietnamese delta.

Lao PDR

Like Cambodia, Lao PDR has a significant loggingindustry, and like Cambodia, this has declined due tomeasures to protect the environment. Also, likeCambodia, industrial growth is largely limited to thearea around the capital, Vientiane, and consists primarilyof garment production. Free enterprise and tourismdevelopment have stimulated growth in the servicesector, but in recent years the largest earnings have comefrom the sale of hydropower to Thailand. Because mostof Lao PDR is hilly with few roads, agriculture largelyremains at subsistence levels. The exception to this isthe fertile lowland area along the Mekong River, wherecommercial agriculture is developing. As with otherLMB countries, economic growth slowed with the AsianFinancial Crisis but the impact was particularly bad inLao PDR, due to strong links with Thailand’s economy.

Government polices to promote economicdevelopment

The governments of all four LMB countries arepromoting commercial agriculture and agro-industry inorder to create jobs for poor and rapidly-growing ruralpopulations. Thailand, which is at a much moreadvanced stage of industrial development, is promotingindustrial development in the Northeast, but in the otherthree LMB countries, emphasis is on commercialagriculture and agro-processing.

Note: Employment information reflects available data formost recent years 1997-2000. Agriculture includesforesty and fisheries.

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Regional integration

To encourage economicdevelopment, the AsianDevelopment Bank’s GreaterMekong Sub-region Programme ispromoting regional integration.Among others, a network of roadsis under construction to link all sixMekong Basin countries, rivertrade is being promoted andinstitutional barriers are beingreduced to improve the flow ofraw materials, finished productsand workers between countries.

Prospects for futuregrowth

With regards to future economicdevelopment, Viet Nam and Thailand are likely tocontinue to industrialise. Cambodia and Lao PDR will

industrialise much more slowlydue to their comparatively smallpopulations and lack ofinfrastructure that discouragesforeign investment. BecauseThailand and Viet Nam havemuch larger populations, they canmanufacture products on a largescale, both to meet domesticdemand and for export. Cambodiaand Lao PDR lack sucheconomies of scale, and with tradebarriers falling, often cannotcompete with cheaper goodsproduced in neighbouringThailand, Viet Nam and China.There are strong prospectshowever for expanding tourism,growing more cash crops, and

developing rural industries such as aquaculture, livestockand agro-processing.

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FisheriesThe importance of the Mekong’s fishery

The Mekong’s fishery is of enormous importance tothe 55 million people who live in the Lower MekongBasin. Most of the 12 million rural households in theLMB fish as well as farm, and fish are the main sourceof animal protein in most people’s diets. An estimated40 million rural dwellers are involved in the fishery atleast part-time or seasonally. In Lao PDR, for example,71 percent of rural households (some 2.9 millionpeople) depend on the fishery to varying degrees. InCambodia, more than 1.2 million people who live infishing communes around the Tonle Sap Lake dependalmost entirely on fishing for their livelihood. The wildfishery is particularly important for the poorest andlandless rural households, making significantcontributions to their nutrition, food security andincome. As the population of the Lower Mekong Basingrows to an estimated 90 million by 2025, even morepeople will depend on the fishery. If it were to seriouslydecline, as fisheries have in many parts of the world,the consequences would be very serious.

Size and economic value of the fishery

The Mekong River has one of the most abundantfisheries in the world and is probably the world’s largestriver fishery. The annual catch is an estimated 1.5million tonnes, with another 500,000 tonnes raised in

reservoirs and other forms of aquaculture. Annual fishyield for the Tonle Sap Great Lake in Cambodia is anestimated 230 kg per hectare, a figure much higherthan that for other Asian floodplain fisheries, whichaverage about 100 kg per hectare per year.

The annual value of the capture fishery is an estimatedUS$1,042 million, aquaculture an estimated US$273million and the reservoir fishery an estimated US$163million. These figures are based on point of first saleand do not include the considerable earnings fromtrading and processing fish.

Nutritional value

In lowland areas of the LMB, where most people live,40-80 percent of animal protein is supplied by aquaticanimals. On average, people consume about 36 kg/per person per year. Fish are also an important sourceof lysine, vitamins (especially Vitamin A) andcalcium. Small dried fish, eaten whole, contain morethan 1,000 mg of calcium per 100 g, while driedfermented fish exceed 2,000 mg of calcium per 100g. This is well above dietary calcium requirements of400-500 mg per day for adults and 500-700 mg perday for adolescents.

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The importance of varied habitats

The Mekong owes its abundant fishery to the variedhabitats it has to offer, its vast floodplain and theextremes of wet and dry seasons. Habitat diversity isgreatest in floodplain areas, and in the LMB,floodplains include flooded grasslands, forests, and anassortment of permanent and temporary river channels,lakes and pools. Fish and other aquatic animals usethis range of habitats for spawning, feeding and copingwith seasonal changes in water levels. Floodplains arethe most highly productive part of any river systemand those that expand and shrink dramatically eachyear, such as those of the Mekong Basin, support thehighest yields. MRC studies show that fishery yieldsare greatest in high flood years.

The importance of migration

The large floodplain areas in the Mekong Delta andaround the Tonle Sap Great Lake in Cambodia arecrucial nursery habitats. Deep pools and channels inthe mainstream of the Mekong near Kratie inCambodia, in the Nam Theun and Nam Hinboun Riversin Lao PDR, and in the Se San River in Cambodia areimportant dry season refuges for fish, which re-colonisethe floodplain when waters rise with the next rainyseason. Many important commercial species swimhundreds of kilometres and across borders from theMekong Delta in Viet Nam, through Cambodia to:Thailand or Lao PDR through the Mekong Rivermainstream; to Lao PDR through the Se Kong River;or, to the Central Highlands in Viet Nam through theSe San and Sre Pok Rivers. Also, the larvae of somespecies drift hundreds of kilometres from upstreamspawning grounds to the floodplains where they feedand grow. Other species migrate laterally over shorterdistances to spawn, feed and find refuge.

All these migrations are essential for the success ofthe Mekong’s fishery. Although rivers and theirassociated floodplains encompass a range of differentfish habitats, they are all ecologically linked in acomplex “fish migration network”. Thus, from the

point of view of migrating species, the Mekong RiverBasin functions as one ecological unit. Fish migrationcorridors connect upstream spawning habitats withdownstream nursery habitats, and dry season refugehabitats in the mainstream with wet season feedinghabitats on the floodplains.

Condition of the Mekong’s aquaticecosystem

The Mekong Basin’s aquatic ecosystem is still in goodcondition, but there are a number of possible threatsto the fishery that must be understood and addressedor the fishery could be decimated, as has occurredelsewhere in the world.

Possible threats to wild fisheries

Water resources development

Changes in the volume, timing and duration of waterflows caused by dams and weirs built for hydropower,irrigation, and flood control can have negativeconsequences for aquatic habitats and fish stocks.Species that spawn in the dry season are especiallyvulnerable to dry season water releases from dams.They may be unable to find suitable spawning sites ortheir eggs may be washed away or smothered bysediment deposits. Dams and other structures acrossrivers and streams can block migrating fish. At timesof peak migration from the Tonle Sap Great Lake tothe Mekong River, at least 50,000 fish per minute swimpast a given point. No existing fish ladder design couldcope with these numbers of fish.

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Habitat loss

The cutting of flooded forests for fuel wood suppliesor their conversion to agriculture and other usesdestroys crucial habitat that fish require for spawningand feeding. Aerial photo surveys conducted in 1973-1976 and 1992-1993 show that 33 percent of theflooded forest area of Cambodia as a whole and 27percent of flooded forests around the Great Lake werecleared.

Fishing pressure

Studies show that catches per fisher have declinedover time (approximately 44 percent between the1940s and 1995). Despite this, over the same period,the total fish yield in the Tonle Sap area has increased84 percent from 125,000 tonnes to 230,000 tonnes.Thus, catches per fisher have declined because thenumber of fishers has greatly increased. Increasingpopulations will add to the fishery pressure unlessthere are management interventions to restrict accessto the fisheries.

River modification

Blasting of rapids, rock bars and islands, the dredgingof river beds, and construction of ports and otherstructures to improve navigation, all modify theenvironment for fish, and are usually detrimental.

Deforestation

Deforestation can increase erosion and the resultingsediments can silt up deep pool habitats that serve asimportant dry season refuges. They can also irritatefish gills and smother fish eggs. Deforestation can leadas well to temperature changes and decrease the leaflitter needed for the aquatic food chain.

Destructive fishing practices

The use of fine mesh nets to capture catfish fry forraising in cages and ponds also nets the fry of 160unwanted species. Only 15 percent of the total catchis kept and the rest is discarded. Fishing duringspawning season, and in dry season refuge areas isdestructive, as is the use of electricity, poison andexplosives to kill fish.

Introduction of fish species from outside thebasin

Foreign species, which are introduced for aquaculture,biological pest control and the aquarium trade, candisplace indigenous fish species, reduce biodiversity,introduce disease and parasites and result inhybridisation and loss of genetic diversity.

Pollution

Water pollution is not currently a major issue for thefisheries of the LMB, although localised pollution hascaused fish kills. Fertiliser run-off can raise nutrientlevels in water, which in turn can cause fish-killingblooms of algae. Although not a threat to fisheries now,pesticides and fertilisers could become a concern infuture as governments promote the commercialisationof agriculture and thus the use of agricultural inputsincreases.

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Aquaculture

The largest volumes of fish are cultured in theMekong Delta in Viet Nam, and in NortheastThailand, in that order. Compared with Cambodiaand Lao PDR, these areas have better infrastructure,which facilitates access toinputs as well as to markets. Atleast two million ruralhouseholds are culturing fish inthe LMB. Total freshwateraquaculture production in theLMB rose from 60,000 tonnesin 1990 to 255,000 tonnes peryear in 2001. This is worth anestimated US$244.6 million.

Although people often think ofaquaculture as large-scalecommercial operations raisingthousands of kilograms of fish orprawns, small-scale aquacultureis increasingly being promotedfor subsistence households inareas where wild fish are limited. Cultured fish alsoprovide poor households with fish during seasons whenwild fish are scarce and their sale can contribute tohousehold income.

Aquaculture encompasses a range of activities,including the production and sale of fry and fingerlingsand the raising of wild or artificially produced fry andfingerlings in enclosed or semi-enclosed water bodies.Related livelihoods include the supply of inputs suchas fry and feeds and the processing and marketing ofaquaculture products.

Factors limiting the expansion ofaquaculture

Although the expansion of commercial aquaculturecould provide badly needed employment in rural areasand small-scale aquaculture could improve nutrition,food security, and cash incomes, a number of factorsinhibit the expansion of aquaculture. These include:lack of seed and feed; lack of extension services; lackof access to markets; insufficient land and water;habitat degradation and the risk of disease.

A rapidly growing population means more mouths tofeed. Looking across all fisheries, it appears that thetotal catch is probably close to being fully exploited,so further expansion of fishing will cause problems.Although aquaculture could expand and increase foodsecurity and incomes in remote areas, it can only partlysubstitute for wild fisheries.

Aquatic products from wetlands

The wetlands of the LMB are vital life support systemsfor communities throughout the region. They areresponsible for providing a vast array of goods andservices to the people in the region. Services are the

ecological functions provided bywetlands such as habitats for fishand wildlife, support for the foodchain, retention of water toprevent flooding, a trap forsediment, and purification andreplenishment of ground water.Goods are the plants and animalsthat people harvest for food,medicine, construction, house-hold products and so on.

The goods from wetlands arevery significant for the liveli-hoods of people in the LowerMekong Basin. Most of theestimated 40 million rural peopleconcentrated along the Mekong

River, its tributaries and related wetlands, aresubsistence farmers obtaining their livelihoods througha combination of rice farming, fishing and foragingfrom nearby wetlands and forests. Besidessupplementing their food supply, the harvest fromwetlands provides protein during the dry season whenfish are less available and ensures food security in yearswhen the rice crop fails.

Isolated communities in the basin with limited accessto markets and roads depend on locally-available floraas their primary source of edible fruits, vegetables,fodder for livestock, medicines and constructionmaterials. Thus wetlands have been called the “poorman’s supermarket”. The abundance and diversity ofspecies, plus their availability in different seasons, arecrucial factors in providing the “safety net” thatincreases rural food security. However, few peopleoutside the basin are aware of the importance ofharvesting these key aquatic resources.

Aquatic animals for food

Aquatic animals, other than fish, are sometimesconsidered “less serious” catches. This may be becausethe catching is usually the work of women and children.Although catches are “low profile”, added together theyprovide crucial food security when other foods maybe in short supply. Although primarily for homeconsumption, aquatic animals can be sold to obtaincash income.

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Molluscs – snails, clams and musselsAt least six species of bivalves and four kinds of snailsare commonly consumed in Lao PDR and other ripariancountries. Abundant in the dry season and the beginningof the rainy season, snails are caught around the edgesof lakes or rice fields. A typical harvest at one time is2-10 kg, enough for 2-5 family meals. In Cambodia,leah (bivalves) are caught at the end of the rainy seasonas flood waters recede. In one study in Kampong ChamProvince in Cambodia, the annual catch for 130families was 138 tonnes, which earned each familybetween US$90 and US$180.

Shrimps and crabs.Crabs are collected from rice fields and smallfreshwater shrimps from shallow water in lakes orponds, as water recedes from November to March.The shrimp catch is about 0.5-2 kg for 1-3 hourswork. On an annual basis, families catch from 15 –600 kg of shrimp, which are worth up to US$250per family.

Insects - water bugs, beetles and othersInsects are an important source of supplementaryprotein throughout the year, and more significantly inthe early dry season. At least 14 kinds of aquatic insectsare known to be consumed in Northeast Thailand andother LMB countries. These include giant water bugs(mangda), beetles, dragonfly larvae and blackflies.Some insects are stewed with vegetables or grilled inbanana leaves with spices, while blackflies are aningredient in soup. Mangda are highly prized inNortheast Thailand, where they are used to flavourother foods. Due to high pesticide levels in NortheastThailand, the catch of mangda has greatly declinedand now several tonnes per year are exported fromCambodia for a price of about US$90 per kg (about100 insects).

Amphibians - frogs and toadsSeveral species of frog are commonly consumed inthe basin. These are most abundant and easily caughtat night at the beginning of the rainy season in Mayand June. One study in Cambodia found the averageannual rainy season catch to be 20-30 kg/family/year.Tadpoles are widely consumed in Northeast Thailand,and considered a delicacy by city people. One kilogramsells for as much as US$5 – two to three times theprice of fish.

Reptiles - turtles, snakes and lizardsA number of snakes and turtles are hunted forconsumption or sold for food and medicine in localmarkets. In the past decade, income from these animalshas increased as wild stocks have diminished in otherparts of Asia.

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Aquatic plants as food, animal feed andmedicine

At least 20 kinds of aquatic plants are commonlyharvested by basin residents for food, with surplusessold in local markets. These include the tuber, stems,and seeds of lotus, the flowers of water hyacinth, youngriang leaves and water morning glory. In seasonally-flooded areas along the Songkram River and itstributaries in Cambodia, bamboo shoots are harvestedfor food and for income generation. In a year, theharvest of bamboo shoots is 200-500 kg/family.

Other commonly consumed wild plants includewater cress, water chestnut and aquatic fern. Waterfern and water cabbage are fed to ducks, cows andpigs. Medicinal uses of aquatic plants includeeliminating parasites, reducing fevers and reducinginflammation. A study of one lakeside communityfound 35 species of wetland plants were used formedicinal purposes.

Fuelwood from wetland shrubs

The wood from wetland shrubs and trees is usedextensively by lowland communities for heating andcooking, as well as for processing rice wine and palmsugar, smoking fish, making rice noodles and boilingaquatic plants with rice bran to make pig and poultryfeed. Around the Tonle Sap Great Lake, 14 differentaquatic plant species provide the firewood for localcommunities. A study of one lakeside community inCambodia found that families saved an estimatedUS$40 per year by using aquatic plants for fuel wood– a significant saving for households whose annualincome is usually less than US$300 per year.

Materials for construction, tools andcrafts from wetland plants

Native plants from wetlands provide materials forhouse posts, floor planks, roof thatching, beam ties, aswell as making and fixing fish traps and nets. A 4 x 5metre house uses up to 15 m3 of sedge for a roof andwalls, which must be replaced every two years. Stemsand branches of wetland plants provide handles forknives, axes, hoes, spades, rakes, sickles, ploughs andharrowing tools.

Water hyacinth and sedges are also used by many ruralfamilies to produce craft items. The softer and finerfibre of water hyacinth is woven into accessories suchas hats, wallets, purses, jewellery boxes, and baskets.The durable fibre of sedge is woven to make floor andplace mats. The processing and selling of these craftsprovides important supplementary income for rural

women and children in the dry season. For example,the farm gate price for a 1 x 2 m mat made from sedgeis US$1-3.

While at the macro level, development of the Mekong’swater and related resources could benefit nationaleconomies and the economy of the region, if not wellplanned and carefully managed, it could alsosignificantly impact the harvest of fish and other aquaticproducts upon which rural people heavily depend, bothfor food security and for their livelihoods.

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Figure 1. Landcover of the Lower Mekong Basin

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AgricultureThe economic importance of agriculture

Agriculture is the single most important economicactivity in the Lower Mekong Basin (LMB). Overall,an estimated 75 percent of the LMB population earntheir livelihood from agriculture, in combination withother activities such as fisheries, livestock, and/orforestry, but the picture varies considerably betweencountries.

Agriculture declined in relative importance over the1990s in all four LMB countries. The change wasgreatest in Viet Nam, which rapidly industrialisedduring this period. However, although the relativecontribution of agriculture to national economiesdecreased between 1995 and 1999, the absolute valueof agricultural output increased by 12 percent inCambodia, 22 percent in Lao PDR, 10 percent inThailand, and 19 percent in Viet Nam. The trend is notone of contracting agricultural sectors, but rather ofagricultural growth lagging behind growth in themanufacturing and services sectors.

Agriculture in the LMB is divided into two maincategories – subsistence and commercial agriculture.In order to alleviate poverty in rural areas, LMBgovernments are promoting the commercialisation ofagriculture and agro-processing in order to increaseincomes and create employment.

Subsistence and shifting agriculture

Subsistence farmers grow enough for householdconsumption, sometimes with a small surplus to sellor trade. To ensure food security and earn needed cash,they also catch fish and gather non-timber forestproducts. Farmers in upland and remote areas of allfour LBM countries are limited to subsistenceagriculture because they lack some or all of: water togrow crops in the dry season; affordable credit; inputs(fertiliser, pesticides, improved seeds, tools andlivestock varieties); extension services; transportinfrastructure to enable farmers to deliver their produceto market; and market infrastructure and marketinformation. In Lao PDR, the 1992/3 census found that22 percent of the population lived in areas notaccessible by truck and over half were more than 10km from the nearest market.

Shifting cultivation, which involves clearing forestedareas and farming plots on a rotational basis, ispracticed extensively in upland areas in the Viet NamCentral Highlands, in northeast Cambodia, and inupland Lao PDR. Due to population growth and lossof access to land as a result of reservoir flooding,creation of forest reserves, logging concessions andplantations, farmers have been pushed into marginalareas and now farm the same areas more frequently.This results in lower yields and can increase erosion

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and landslides. To reduce environmentalproblems associated with shifting cultivation,in the 1990s, the Lao government requireduplanders to cease shifting cultivation.

Cambodia has less land under cultivation todaythan it did in the 1960s before war began.Agricultural expansion is hampered by thecontinued presence of unexploded landminesand other ordnance. In 1995, an estimated 40percent of arable land was mined, and althoughdemining is progressing, it is a slow process.

Commercial agriculture

In the lowlands, where soil and access to inputs andmarkets are all good, agriculture is becomingincreasingly commercial and profitable now that allfour LMB governments have adopted free marketsystems. Farmers in the Mekong Corridor in Lao PDR,the relatively flat and fertile land that lies along theMekong river, earn an average of US$350-US$360 peryear, while those in upland areas earn only US$56 perannum. On the Korat Plateau in Northeast Thailand,commercial farming of single crops such as tobaccoand sugarcane has been practiced for some years. InViet Nam’s Mekong Delta, commercialisation of ricefarming has made the country the world’s secondhighest exporter of rice. Although commercialagriculture is largely confined to lowland areas, in theCentral Highlands in Viet Nam, lowland farmers havebeen encouraged to resettle there and grow cash cropssuch as coffee, tea and rubber. The shift towardscommercialisation will be slow in Cambodia and LaoPDR because both countries still face problems withfood security. The shift will also be slow as well inremote and upland areas of all LMB countries unlessgovernment or donors provide substantial assistance.

Extent of irrigation in the basin

Irrigation is increasing in the lowland areas of the basin,not only to enable a second and even a third rice crop,

and dry season or perennial cash-crops, but also toexpand wet season production. However in 1998, theratio of irrigated land to total cultivated area was only7-10 percent, much lower than the 45 percent ratio forAsia as a whole.

In Cambodia, irrigation is largely limited to use ofreceding floodwaters. Only about 10 percent of thetotal wet season rice production area is planted with asecond irrigated crop. In Lao PDR, in the 1990s, thegovernment reported an eight-fold increase in irrigatedrice farming in the lowlands. This was due, in part, toa move away from large, government-managedschemes to more numerous and small ones managedby farmers. In Northeast Thailand, where farmingmethods remain comparatively traditional, irrigationratios are much lower than in other parts of the country.Large irrigation schemes have been constructed on theChi and Mun Rivers, but local opposition to damshas slowed additional large- and medium-scaledevelopments. Irrigation is extensive in the MekongDelta in Viet Nam. With more than half the land floodedduring the rainy season, farmers are able to store waterfor intensive rice cropping after the floods recede. Inthe Central Highlands, irrigation is limited and usedprimarily for rice and coffee.

Problems with irrigation schemes

Studies show that water losses, in combination withover-use, have led to construction of reservoirs thatare 3-5 times larger than necessary. With systemsdesigned largely for rice production, farmers find itdifficult to switch to other crops. Financing problemsinclude lack of mechanisms to control and measurewater use, and fees that are too low to encourageefficiency and pay for maintenance. To improvematters, management of systems is increasingly beinggiven to farmer groups.

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Rice production

Rice production has increased greatly in recent years:in Cambodia, by 23 percent between 1993 and 2000;in Lao PDR, by 38 percent between 1990 and 1999; inNortheast Thailand by 33 percent between 1994 and2001; and in the delta and Central Highlands of VietNam, by 27 percent between 1995 and 1999.

In the Viet Nam Delta, yields are as high as five tonnesper hectare due to irrigation. However, in Lao PDR,farmers in un-irrigated upland areas can grow only 1.55tonnes per hectare. In 2000, the average yield for theLMB was 2.75 tonnes/ha, compared with 3.9 tonne/ha for the Asia-Pacific Region.

Non-rice crops

Although still dwarfed in importance by rice,cultivation of maize, fruits, vegetables, oil crops, fibrecrops and cash crops such as coffee, tea, sugarcaneand tobacco is increasing. Many of these crops canoffer higher earnings than rice. In Cambodia, non-ricecrops accounted for 8 percent of GDP in 1999.However, the area under cultivation (approximately250,000 ha) is still much less than in the 1960s, beforemines were laid (310,000 ha). Rubber, which is grownon approximately 40,000 ha, is Cambodia’s mainagricultural export.

In Lao PDR, coffee is the major agricultural export.However, due to problems with quality, prices onexport are 10 percent below world prices. In responseto poor international markets, tea production hasdeclined by 23.5 percent per year and cotton by 12.2percent. However, vegetable production has risenrapidly to meet demand from urban centres andThailand.

Northeast Thailand, has seen the greatest shift to non-rice crops, but they still represent only 20 percent ofcultivation. In lowlands, vegetables, legumes, kenaf andtobacco are sometimes farmed in combination withrice, and in uplands, cassava, kenaf, sugarcane, andlegumes, such as groundnuts and mungbeans, aregrown as single crops. Upland agriculture isconstrained by soil quality and disease in continuouslycropped areas.

In the basin areas of Viet Nam, non-rice crops aregrown mainly in the Central Highlands, whereproduction increased by 35 percent between 1995 and1999.

Livestock

Large animals are important because they are used fortilling, hauling loads, providing natural fertiliser,dietary protein and cash income. As such, theycontribute to financial security in subsistenceeconomies because they can be sold when emergencycash is needed.

Livestock production increased substantially during the1990s in Cambodia, Viet Nam and Lao PDR, probablydue to political stability and free enterprise policies.Data for all LMB countries show buffalo have declined,and cattle, chickens and ducks have increased.

In upland Lao PDR, where potential pastureland isreadily available, the government is encouraginghouseholds to switch to animal husbandry as analternative to shifting cultivation. However, lack offodder and animal health services and low productivityof native species remain constraints.

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[[A3 – forest map p. 193 opposite this page]]

Environmental problems

Salinity

In the Viet Nam Delta, about 750,000 ha is affected bysaline water during the dry season. Efforts to controlsalinity intrusion by blocking seawater can lead to otherproblems that were discussed previously in the sectionon water.

Pesticides

Use of pesticides is generally low but likely to increaseas agriculture becomes more commercial. Althoughpersistent pesticides are banned, studies have foundresidues of DTT, Dieldrin and others in fish throughoutthe basin. However, contaminant levels are still wellbelow WHO safety levels.

Fertilisers

In Thailand and Viet Nam, farmers use respectively100 kg and 263 kg of mineral fertiliser per hectare.In contrast, farmers in Cambodia and Lao PDR userespectively only 2 kg and 8 kg per hectare. In theKorat Plateau in Northwest Thailand and theMekong Delta in Viet Nam, heavy fertiliser usethreatens ground and surface water sources. In thedelta in Viet Nam, MRC water quality surveys havefound excessive levels of nutrients, and this couldworsen if dams for hydropower and irrigation reducewater flows.

Acid sulphate soils

Some 1.6 million ha of soil in the Plain of Reeds,Long Xuyen Quadrangle, and Ca Mau Peninsula inViet Nam have high levels of potentially toxicaluminium and low levels of phosphorous. Runofffrom acid-sulphate soils, which have been convertedfor agriculture, can damage aquatic life, includingthe culturing of fish in rice fields. Farmers canmitigate the harm by using more water andfertilisers, but these responses increase waterconsumption and nutrient build-up.

National agricultural strategies and policies

All four LMB countries see the promotion ofcommercial agriculture and agro-processing as criticalcomponents for rural and national development. Inpoorer areas, the goal is to improve food security aswell as increase employment. With rice failing to yield

sufficient profits, farmers are being encouraged to growother crops. However, before they will invest inimproving their land to achieve higher production,farmers need secure tenure – something that is aproblem in all LMB countries.

Agricultural market issues

One of the biggest challenges in the LMB is the lackof market information and infrastructure. Unlessfarmers know what crops to grow and are able to markettheir surpluses, they have little incentive to producethem, and unless they produce surpluses, they are likelyto remain poor. Therefore, improving the efficiency ofagricultural marketing is a key factor in rural povertyalleviation. Key components of efficient agriculturalsystems include: affordable and accessible rural credit;high quality agricultural inputs such as seeds, fertilisers,pesticides, machines and related technology; extensionservices; market information; rural transportationsystems; national distribution networks; and supportiveinternational trade polices and relationships.

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ForestryOverview of the forestry sector

The forestry sector covers commercial logging, privateand commercial gathering of fuelwood, and theharvesting of non-timber forest products (NTFPs). Itcontributes 5 percent of the GDP for Lao PDR, 4percent for Cambodia, 1 percent for Viet Nam, andbelow 1 percent for Thailand. However, these figuresunderstate the importance of forest resources in theeconomic and social lives of LMB people, many ofwhom draw their livelihoods partially or fully fromthe forests.

Legal and illegal logging

Countries in the LMB consume most of the wood theyproduce, but there are significant flows between them.Cambodia and Lao PDR produce a surplus andThailand and Viet Nam import wood from these twocountries. Since Thailand banned logging in 1989 afterdeforestation rates as high as 4 or 5 percent in the1980s, and floods and landslides attributed to logging,pressure to log neighbouring countries has increased.Thai demand for wood is growing at an estimated 5percent per year. Legal logging is not considered amajor environmental problem, however, inefficientpractices waste resources. An estimated 30-40 percentof wood harvested in Lao PDR is lost due to poor

management. Illegal logging, which is believed to beextensive in Cambodia and Lao PDR, is of greaterconcern. Because this logging is outside the law, it isdifficult to determine how much timber is being taken.Enforcement of logging regulations is challenging dueto lack of resources.

Fuelwood collection

In 1995, an estimated 95 percent of Cambodia’s energyrequirements for cooking and boiling water were metwith fuelwood. In Lao PDR an estimated 92 percentof all wood felled is used for fuel, with similarproportions for Thailand and Viet Nam. Harvests arehard to estimate, however, because fuelwood is largelyconsumed by the households that collect it. Althoughwood taken for fuel is significant, it does not necessarilydeplete forest resources because much of it comes fromscattered trees in non-forest areas, or branches cut fromliving trees.

Non-timber forest products (NTFPs)

NTFPs include wildlife, wild fruits, medicinal plants,resins, gums, precious woods, rattan and bamboo.Although not included in official forest valuations,

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NTFPs are important sources of income for millionsof people, as well as sources of food and cash forfarmers during poor harvest years. In Thailand, forexample, an estimated five million people derive theirprimary income from NTFPs. Because the incomeearned is usually higher in upland areas than that fromrice cultivation, NTFPs enhance the value of intactforests to local people and prevent deforestation.NTFPs also provide more jobs than logging. Onaverage, collecting NTFPs from ten hectares requires30 labourers – ten times the number required forlogging.

Trends in LMB forest-cover losses

Based on an MRC study of forest losses between 1993and 1997, the LMB as a whole lost close to 500,000ha, or slightly over 2 percent of its forest cover in onlyfour years. This averages out to a loss of 0.53 percentper year. This may not seem much at first glance, butover the course of the next century, this rate meansthat much of the LMB’s forest cover will be lost.Deforestation could also occur much more rapidly thanit did between 1993 and 1997. With LMB populationsgrowing quickly, the demand for wood products islikely to increase as well. Even at lower rates,deforestation is still a major concern because it is likelyto occur in mountainous headwater areas of tributaries,where deforestation can impact the steadiness of waterflow.

Patterns of deforestation

Deforestation does not occur evenly across theLMB. Rather, there are distinct “hotspots” aroundpopulation centres and near roads. “Hot spots” alsooccur in Cambodia and Lao PDR along the Thai-Cambodian and the Lao-Chinese borders, especiallywhere roads exist. Reducing deforestation thusrequires transboundary cooperation.

Agriculture as a cause of deforestation

Although in more than 70 percent of deforested areassome form of agriculture is now practiced, agriculturedoes not appear to cause deforestation. Satellite datasuggest that logging occurs first.

Lack of reforestation

On the whole, reforestation lags behind deforestationby a substantial margin. Viet Nam has had the mostsuccess with over one-third of deforested areas nowregrowing. However, almost 90 percent of reforestationis made up of mono-culture plantations thatsignificantly decrease biodiversity.

Area Forest cover 1993 Forest cover 1997 Total sizeha % ha % ha %

Cambodia 9,274,703 59.4 9,092,093 58.2 15,618,908 100Lao PDR 8,746,487 42.2 8,544,584 41.3 20,712,008 100Thailand 3,038,772 16.1 2,990,087 15.9 18,827,978 100Viet Nam 1,664,005 24.7 1,615,670 24.0 6,745,651 100LMB 22,723,966 36.7 22,242,433 35.9 61,904,545 100

Table 1. Forest cover in the LMB in 1993 and 1997

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Environmental consequences ofdeforestation

The most direct environmental consequence ofdeforestation is the loss of forest life. Insects and smallplants are the species most frequently lost when forestsare cleared. As to whether deforestation causes soilerosion, landslides and floods, studies show thatimpacts depend on a variety of factors. These include:

• the way the forest is removed – bulldozerscause more problems than logging methodswhich do not compact the earth

• the seasonal timing of removal – consequencesappear greater if logging takes place in the wetseason

• subsequen t use o f the l and – young ,regenerating forests take up more water thanmature forest

• replacement of forest with grassland or pavedareas may result in higher water flows in thewet season and lower flows in the dry season.

While research has documented all these impacts onwater flows in relatively small catchments, they havenot been found in large river basins – perhaps becausethe location and timing of rainfall varies too greatly inlarge tropical catchments and masks the impacts ofchanges in vegetation.

Social consequences of deforestation

Deforestation has serious social consequences. In LaoPDR, for example, over 85 percent of the populationare estimated to be highly dependent on forest productsfor food, fuel and cash income. When forests aredestroyed, local people who relied on them mustgenerate more cash to buy food, malnutrition mayresult, and even the quality of drinking water maydecline. Gathering fuelwood also becomes harder,taking time away from other activities. If farmers takeover deforested land, previously common property islost to local communities. Ethnic minority groups tendto suffer the most severely when forests are cut becausethey are often pushed into increasingly marginal areaswhere subsistence is even more challenging.

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Figure 1. Completed hydropower projects in the Mekong Basin (10MW<)

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Hydropower

The hydroelectric potential of the Mekong and itstributaries is considerable and largely undeveloped. Inthe 1960s, the Committee for the Investigation of theLower Mekong Basin (known as the MekongCommittee) carried out extensive research and plannedmore than a dozen hydroelectric projects on theMekong mainstream but none of these were actuallybuilt due to decades of war and civil unrest. Althoughwar and isolation in the region ended in the 1990s, sofar only 5 percent (some 1,600 megawatts-MW) of thelower basin’s hydroelectric potential of approximately30,000 MW have been developed, and these fewprojects are all on the tributaries. The only dams onthe Mekong’s mainstream are two in the upper basinin China, although more are under construction.

When the Mekong River Commission replaced theMekong Committee in 1995, the focus changed. MRCwas established as a river basin managementorganisation, with as much emphasis on sharingresources equitably and sustaining the environment,as on developing resources.

Evidence of this change can be seen in MRC’sHydropower Development Strategy that treats hydro

potential as one of many renewable natural resourcesand considers both the benefits and the adverseconsequences of hydroelectric development. Theobjectives of the strategy are grouped into threestrategic areas: consideration of integrated water useand environmental and socio-economic factors;efficient hydropower generation and distributionmechanisms; and information system and capacitybuilding.

The state of hydropower development inthe Mekong Basin

Of the total potential of 30,000 MW for feasiblehydropower projects in the LMB, approximately13,000 MW are on the Mekong’s mainstream, and theremaining potential is on the tributaries (13,000 MWon tributaries in Lao PDR, 2,200 MW on tributaries inCambodia and 2,000 MW on tributaries in Viet Nam).In the Upper Mekong Basin in Yunnan Province in thePeople’s Republic of China, total hydro potential is anestimated 23,000 MW. The hydro projects currentlybuilt in the Mekong Basin are shown in Figure 1 andtheir capacity is listed in Table 1.

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Concern about the development of hydropower projects in the basin has grown in recent years and civilsociety groups have criticised plans to develop more hydro projects.

In signing the 1995 Agreement on the Cooperation for the Sustainable Development of the Mekong RiverBasin that established the Mekong River Commission, member countries all agreed that before any hydroproject can be built on the mainstream of the Mekong, all four members must agree. Although MRC membersare only required to notify each other of their intention to build a project on a tributary, the 1995 Agreementobligates members to ensure that no harmful effects will occur downstream in neighbouring countries.Increasingly, MRC has been called upon to facilitate dialogue among governments and other stakeholders toensure that transboundary impacts are considered.

Demand for electric power

It is estimated that the electric power demandin the whole Mekong Region will increaseby an average of about 7 percent annuallyto 2022. In order to meet such sharp growthin demand, current electric generatingcapacity is expected to quadruple by then.

Status of hydropowerdevelopment

Most of the power generation projectscurrently planned in Thailand and Viet Namwill be powered either by coal or natural gas. Somehydropower projects are planned as well on tributariesof the Mekong in Lao PDR and in Viet Nam. A small-scale run-of-the-river project is under consideration forthe mainstream at Khone Phapheng Falls in Lao PDR,but this does not involve damming the river. No plansare actively being considered for hydropower projectsthat would involve damming the mainstream in theLower Mekong Basin, and tributary projects will belimited for reasons that include:

Difficulties in finding fundsHydropower projects generally require high initialinvestment and a long payback period (the pay-back period for a hydro project is typically two orthree times longer than that for a thermal project).In recent years, because investment costs are sohigh and hydro projects can have adverse impactson the environment and on local people,international funding agencies have been muchless willing to fund projects.

Undeveloped power marketMost of the hydropower potential in the LowerMekong Basin is in Lao PDR and Cambodia, butthese countries do not have a large enoughdomestic market (demand) to warrant developinglarge-scale projects. In the longer term, a regional

power network could enable Cambodia and LaoPDR to sell power to neighbouring countries withgreater need for power. In the short term, onlyisolated hydro projects intended largely for one-way power export are likely to be developed. Inthese cases, developers must demonstrate that theirprojects are competitive with other powerproducers.

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Environmental and social impacts

Development of the Lower Mekong Basin’s hydropotential is likely to take some time because extensiveinvestigations into the social and environmentalimpacts of proposed developments must be undertakento insure that projects will not have adverse impacts.Assessing possible transboundary impacts isparticularly challenging. Weighing the pros and consof projects is difficult because too often emphasis isplaced either on the economic benefits or on thenegative consequences, without a balanced appraisalof both.

Negative impacts of hydro projects include:changes in the volume and timing of river flows;decline in water quality; loss of biodiversity; lossof fisheries; blocking of the flow of sediment;resettlement of populations and loss oflivelihoods.

Positive impacts of hydro projects include:harnessing of a renewable natural resource; lowerlevels of air and water pollution than occurs whenfossil fuels generate power; increasing water flowsin the dry season and reducing peak flows in theflood season; generating the electricity needed foreconomic development and improving livingstandards; and increasing government revenuesthrough the sale of power to neighbouringcountries.

Hydropower development in China

China currently has plans to construct six dams/powerstations, in addition to the two that are alreadyoperating. These are listed in Table 2.

Now that the first two dams, Dachaoshan and Manwan,have been constructed and are operating, somedownstream impacts such as changing of the river’s

flow pattern, blocking of sediment and impacts on theenvironment have occurred. The reduction insuspended sediment concentrations resulting fromsediment trapping in Manwan Dam is already apparentas far downstream as Pakse in southern Lao PDR. Thenext two projects, Xiaowan and Nuozhadu, will havemuch larger reservoirs and could also change the river’sflow on a seasonal basis.

Sharing data among countries on a common riversystem is crucial. On 1 April 2002, China signedan agreement with MRC to provide data on riverlevels at two stations located on the UpperMekong in China. Though the informationprovided by China is still limited, this agreementis an important first step in establishingcooperation between China and downstreamcountries.

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Country Name Location Capacity Output Commissioning (MW) (GWh/year)

China Manwan M 1,500 7,870 1993Dachaoshan M 1,350 5,930 2001

Lao PDR Nam Ngum TR 150 900 1971-85Xeset TR 45 150 1991Theun Hinboun TR 210 1,645 1998Houay Ho TR 150 600 1999Nam Leuk TR 60 184 2000

Thailand Sirindhorn TR 36 115 1968Chulabhorn TR 15 62 1971Ubolratana TR 25 75 1966Pak Mun TR 136 462 1997

Viet Nam Dray Ling TR 13 70 1995Yaly TR 720 3,642 2000

Note: TR = tributary and M = mainstream

Table 1. List of completed hydropower projects (10 MW<)

Name of Installed Annual Total Catchment Average CommissProject Capacity Generation storage C. Area Flow -ioning

(MW) (GWh) (million m3) (km2) (m3/s)

Gongguoqiao 750 4,670 510 97,300 985Xiaowan 4,200 18,540 15,130 113,300 1,220 2010-12Manwan 1,500 7,870 920 114,500 1,230 1993Dachaoshan 1,350 7,090 880 121,000 1,230 2001Nuozhadu 5,500 22,670 24,670 144,700 1,750 2013-16Jinghong 1,500 8,470 1,040 149,100 1,840 2012-13Ganlanba 150 1,010 151,800 1,880Mengsong 600 3,740 160,000 2,020Total 15,550 74,060

Table 2. List of planned and completed hydropower projects on the Mekong in China

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In the Lower Mekong Basin, water transport hastraditionally been the principal means of travel formuch of the population. Although the 15 m high KhoneFalls on the border between Lao PDR and Cambodiaprevents boats from passing, on each side of the falls,boats are used to transport both people and goods forhundreds of kilometres. As the economies of the LMBcountries grow, not only will river trade between themincrease, but shipping beyond the lower basin willincrease as well.

River transport can move people and cargo at coststhat are lower than road and air transport, and riverfacilities are less expensive to build and maintain thanroad and rail networks. If proper precautions are takento protect the environment, river transport can be moreenvironmentally friendly than other forms of transport,both in terms of less intrusive infrastructure and withregards to fuel economy, which in turn results in lessair pollution.

Importance of inland waterway transportto remote communities

More than one-third of populations living along theMekong in Cambodia and on its tributaries in Lao PDR,live further than 10-11 km from a year-round road. Forsuch communities, the river is the only means oftransport. Some 1.36 million Cambodians are totally

Trade and transportdependent on inland waterways for transportation. InLao PDR, an estimated 320,000 people depend onwater transportation for most of the year. In Viet Namabout 73 percent of the region’s cargo tonnage andabout 27 per cent of its passengers travel by water.Thailand, which has the benefit of extensive all-seasonroads, makes the least use of water transport on theMekong.

Trade benefits of river transportation

In 2001, trade valued at an estimated US$4,700 millionwas transported in the LMB on the Mekong River andits associated waterways. Trade between Thailand andLao PDR totalled US$350 million; between Thailandand China (Yunnan Province) US$88 million; in andout of Cambodia, US$235 million; and in and out ofthe Mekong Delta in Viet Nam (excluding trade withCambodia), US$4,000 million. Thailand has been usingthe river to transport a growing proportion of itsbilateral trade with Yunnan Province in China. In asingle year, the value of this trade more than doubled,from US$43.21 million in 2000 to US$87.85 millionin 2001.

In Viet Nam, some 90 percent of the export tonnage ofrice and some 60 percent of the export tonnage of fruitand vegetables (fresh and processed) originates in theMekong Delta and is transported on inland waterways.

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At US$4,000 million, the trade moved annually bywater in the delta represents nearly 20 percent of VietNam’s foreign trade.

River navigation conditions

All sections of the Mekong River and its associatedwaterways are navigable during the high water season(i.e. for about eight months of theyear), with the exception of a 14-km section, just north of theborder between Cambodia andLao PDR, which contains theimpassable barrier of the KhoneFalls. Unlike many of the world’sgreat waterways, the flow anddepth of the Mekong is essentiallyunregulated with the exception ofdredging in a very few locations,bank protection, port facilities andthe installation of navigationalaids.

Inland ports andintermodal connections

Port facilities in the LMB rangefrom crude, makeshift landings formed by boatsmoored side by side against the riverbank, to concretequays equipped with modern cargo handlingtechnology. The most sophisticated facilities are thoseof the five maritime bulk-handling ports in the VietNam Delta. All 25 major ports in the LMB, with theexception of two between Vientiane and LuangPrabang, are connected to main (either national orprovincial) roads. However, the density of roadnetworks near ports varies widely. Roads are mostnumerous in Thailand, and least numerous in Lao PDRand Cambodia.

Growth and composition of inlandwaterway vessel fleets

Over the past five years, MRC research indicates thatthere has been little change in the size of the overallfleet in each LMB country. The Mekong Delta in VietNam has the largest number of registered vessels(some 60,000) and this is twice the number registered

in 1997.

IWT traffic and modalshare analysis

Although data are hard to obtainwith regard to IWT’s share ofcargo and passenger traffic,estimates indicate that use of IWTis declining in all LMB countries,except for Lao PDR. IWT is thedominant mode of transport onlyin the Mekong Delta in Viet Nam,and then only for cargo transport.IWT passenger volumes aredeclining for all countries, exceptin Lao PDR, due to expansion ofroad networks. However, evenwith road improvements in the

Viet Nam Delta, IWT is likely to remain the dominanttransport mode due to its advantages in moving bulkcargo.

Cargo traffic between Simao (Yunnan Province ofChina) and the Thai ports of Chiang Saen and ChiangKhong has been growing at a very rapid rate (40percent per year), but the tonnage is still only afraction of the total volume of trade between Yunnanand Thailand. Most shipments between the twocountries travel by road or rail to the coast and thenby ship. Thus, there appears to be a major opportunityto increase shipping on the Mekong as costs wouldbe lower.

Government transport policiesand IWT development

Although studies conducted in the UnitedStates of America and elsewhere havedemonstrated that inland barge transportis at least three and a half times moreenergy efficient than truck transport, and1.7 times more energy efficient than railtransport, the LMB continues to favourroad transport. In some cases, IWToperators are charged three times theapplicable road transport charges for thesame volume of traffic.

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Despite the environmental and economic advantagesof IWT, official transportation expenditures appearto favour land over water transport. In three of thefour LMB countries, inland waterways attract lessthan 1.5 percent of total expenditures on waterwaysand roads, while IWT is used to carry 73 percent ofall cargo tonnage in the Mekong Delta Region of VietNam, 45 percent of all cargo tonnage betweenThailand and Lao PDR, 31 percent of all cargotonnage within Lao PDR, and 17 percent of all cargotonnage within Cambodia.

Potential for increased internationalnavigation

There appear to be few institutional difficultiesimpeding navigation between basin countries. If allinstitutional impediments were removed, the port ofPhnom Penh could capture a major share ofinternational cargo traffic originating from, or boundfor, countries to the northeast of Cambodia,especially China, Japan, the Philippines and theRepublic of Korea, as well as to and from Singaporeand Viet Nam.

Navigation and the environment

Of the four LMB governments, only Thailand appearsto have and apply regulations to deter operators fromdischarging fuel or other liquid or solid waste intowaterways or onto adjoining land. No agency canrespond quickly to clean up a spill.

In Viet Nam, all new projects involving dredging ordevelopment of infrastructure, in and besidewaterways, are now required to undergo anEnvironmental Impact Assessment (EIA). In Thailand,EIAs are required for port development projectsdesigned to handle vessels of more than 500 DWT. InCambodia and the Lao PDR, there appears as yet to beno requirement for EIAs to be completed for inlandwaterway projects.

Better monitoring, coordination and control ofnavigation activities can contribute significantly to abetter environment by reducing shipping accidents andregulating the movement of dangerous and toxicsubstances. For example, the provision of specialisedport facilities can eliminate the risks involved in thebeach landings of petroleum tanker barges where nosuch specialised facilities exist. In addition, theintroduction of common rules and regulations willreduce the frequency of collisions and with it the riskof pollution.

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If volume were the only consideration, use of theMekong Basin’s water for domestic purposes andsanitation would be of small importance. Itsdemands represent no more than 5-6 percent of allground and surface water used for any purpose inthe basin, and water used for all purposes is only 10percent of the water flowing from the river’s mouth.However, from other perspectives, domestic waterand sanitation are of very high importance becausethey impact human health, productivity and effortsto reduce poverty.

Low access

Average population coverage figures for water supplyfor the period 1990-1996 indicate that Cambodia hadapproximately 36 percent coverage (ranking it 89 outof 101 countries globally); Lao PDR had 52 percentcoverage (ranking it 74th); Thailand 89 percentcoverage (ranking it 19th); and Viet Nam 38 percentcoverage (ranking it 84th). Comparable sanitationcoverage figures for the year 2000 were 14 percent forCambodia (ranking it 97th out of 101 countries); 28percent for Lao PDR (ranking it 78th); 96 percent forThailand (ranking it 6th); and 21 percent for Viet Nam(ranking it 87th).

The combined global ranking for “potential exposureto polluted water” placed Cambodia 89th out of 101

Domestic water and sanitation

countries, Lao PDR 76th, Thailand 18th and Viet Nam86th. Although the data for Thailand and Viet Nam arefor the whole country, circumstances in their LMBterritory are likely to be worse, not better. Thailandappears to be only one of seven countries worldwidewhere sanitation coverage is higher than that for watersupply.

Inequities in access

Data show that rural services lag far behind urban ones.In Cambodia and Lao PDR, for example, rural watersupply coverage is half or less that available in urbanareas. For sanitation, coverage in rural Cambodia isonly one-sixth of that in urban areas. In Lao PDR, theratio of rural/urban coverage is less than 40 percent.The very poor fare worst of all. In Cambodia, forexample, only 1 out 25 of the poorest 20 percent inrural areas have access to improved water supply, andeven fewer to improved sanitation.

Country and basin-wide issues

Factors that impact the provision of domestic waterand sanitation in the LMB include:

Drought – a problem periodically in NortheastThailand, which could grow worse if Mekong water isdiverted into the Chao Praya River system.

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Saline intrusion – tidal water threatens domestic watersources as well as agriculture in the Mekong Delta inViet Nam. If dams and irrigation upstream reduce riverflows, seawater intrusion could become worse.

Deteriorating infrastructure – water and sanitationinfrastructure is reaching the end of its working life inmany communities, and requires extensive funding forrehabilitation.

Deforestation – logging and clearing of land foragriculture can reduce replenishment of groundwaterand increase sediment in surface water.

Irrigation – extraction of water for irrigation candeplete groundwater supplies and compete for surfacewater.

Climate change – could increase evaporation andreduce precipitation, which could in turn reduce surfaceand groundwater supplies.

Contamination of water sources – there is little dataavailable on the extent of water source contaminationin the LMB, but threats to both ground and surfacewater quality include human and livestock waste,pesticides, flooding and saline intrusion.

Surface water contamination

Deforestation, floods, mining, and oil exploration canall increase sediment and/or pollution in surface waterand with it, the costs of treating surface water. Chemicalspills from shipping accidents are a threat as are algaeblooms that occur when human wastes or fertilisersraise levels of nutrients in water.

Groundwater contamination

Shallow wells are more vulnerable to surface pollutionthan deeper ones. Threats specific to groundwaterinclude poor maintenance, contamination during use andarsenic. Contamination is particularly serious since somany rural people rely on groundwater andcontamination is slow to dissipate and costly to manage.

Monitoring and managing domesticwater quality in the LMB

Testing of drinking water quality is still limited due tolack of equipment and skilled personnel. Positive trendsinclude the recent development of national drinkingwater standards in Viet Nam and Lao PDR and ongoingdevelopment in Cambodia (Thailand has had standardsfor some years). Local monitoring of drinking waterquality is increasing in rural areas, leading to early andappropriate action. There is still little systematicmonitoring of impacts from arsenic, fluoride,pesticides, nitrate from fertiliser, and other chemicalpollutants.

ArsenicThe areas at most risk in the LMB appear to bealong the valley and floodplains of the Mekong/Tonle Sap/Bassac and deltaic areas. Exactly howarsenic is released into groundwater is not yetclearly understood, making exact predictionsdifficult. However, risks in the LMB could belower than in other countries because improvedwells have been developed more recently and theuse of potentially arsenic-contaminated waters mayhave been less universal and for shorter periods.If timely and appropriate action is taken, healthproblems need not be as serious as they have beenelsewhere.

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Water treatment

Little data is available on water treatment. However, itis generally required for all surface water that inevitablybecomes contaminated by animal wastes, even in areaswhere human waste is less of a problem. Surface watercannot, and indeed should not, be maintained atdrinking water quality. However, maintainingreasonable quality is important to keep treatment costsdown and to reduce the risks to people bathing,swimming, boating, fishing and laundering in watercourses.

Data on diseases related to lack ofdomestic water and sanitation

The high frequency of gastro-enteric, worm related andother diseases in the LMB is linked with poor levelsof domestic water supply, sanitation and hygiene,particularly in rural areas. These diseases exacerbatethe effects of poor nutrition and the ravages of otherdiseases. It has been estimated that improvements insafe water supply, and in particular improvements inhygiene and sanitation, could reduce the incidence ofserious diarrhoea by one-fifth and deaths due todiarrhoea by one-half. Between 1960 and 1999,Thailand reduced deaths related to gastro-intestinalillnesses 16-fold by increasing sanitary latrine coveragefrom less than 1 percent to over 98 percent.

Challenges in improving access

Demand for domestic water is expected to grow by 50percent over the next ten years. With the LMBpopulation projected to grow to as much as 90 millionby 2025, and much of the population spread out inrural areas, communities will find it difficult to maintaincurrent levels of service, let alone expand coverage.Providing coverage in urban areas, especially low-income areas, is particularly challenging because ofhigh levels of migration from rural areas. It is clearthat achieving the international target of halving theproportion of people without access to improved waterand sanitation services by the year 2015 will requireenormous effort within the basin.

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Floods are a regular event in the Lower MekongBasin. Flooding of the mainstream and tributaries ofthe Mekong River is an important contributor to thewealth of biodiversity, abundance of fish and soilfertility. Each year, flooding also results in loss oflife and property, causes damage to agriculture andrural infrastructure and disrupts the social andeconomic activities of people living throughout thebasin. Flood management and mitigation (FMM) hasbecome a priority issue at the national and regionallevels, particularly in the aftermath of the disastrousfloods of 2000 and 2001.

Nature and extent of flooding

Climate, and particularly the southwest monsoon, isthe immediate cause of the annual floods. The level ofthe Mekong starts to rise in May and reaches its peakin mid-August or early September in the upper areasof the lower basin, and in mid-September or earlyOctober in the delta region.

According to MRC estimates, 80 percent of the ruralflooding and 20 percent of the urban flooding is causedby tributaries. The four major flood prone areas in LaoPDR are situated along the mainstream near largetributaries: 1) Vientiane Plain, 2) Khammoune Province(Thakhek town), 3) Savannakhet Province and 4)

Floods in the Lower MekongBasin

Champasak Province (Pakse town). In Thailand, theprincipal flood-prone areas of the LMB include low-lying areas along the Mekong and tributaries in NongKhai, Mukdahan, Nakhon Phanom and UbonRatchasima provinces. In Cambodia, the area is veryflat and there is extensive lateral flow of floodwatersfrom Kratie to the border with Viet Nam. Up to 4million ha of lowland areas in Cambodia are inundatedannually. In Viet Nam, flooding in the delta isinfluenced by tidal effects, combined with highdischarge from the Mekong River and heavy rain inthe delta itself. Flooding frequently inundates the entirefloodplain in the Vietnamese delta, that is, up to 1.8million ha.

Causes and factors contributing toflooding

Climate change is likely to be contributing to increasedfrequency and intensity of severe flooding, particularlyin low-lying coastal and estuary areas. Warmer watertemperatures in the South China Sea may increase thenumber and intensity of typhoons, in turn causing seasurges that inundate low-lying delta areas. However,climate change could also result in less rainfall in someparts of the basin and thus less flooding.

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Figure 1. Extent of flooding in Cambodia and the Viet Nam Delta, 2000

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Deforestation and land clearance in upland areas ofthe basin can result in increased volume and speed ofsurface run-off – circumstances which are morepronounced along tributaries of the Mekong.

Changes in flood storage capacity: the cumulativeeffects of many embankments to prevent floods canresult in the loss of a significant volume of floodplainstorage that causes increased discharge and higherflood levels, both upstream and downstream.

Reclamation of floodplains and wetlands results inthe loss of floodplain storage.

Rapid expansion of urban settlements andinfrastructure replaces natural vegetation with sealedsurfaces such as roads, roofs of homes and otherbuildings. This can reduce the time between intenserainfall and peak stream flow, resulting in greater peakflows and risks of sudden floods. Roads, bridges andculverts can also contribute to flooding if thisinfrastructure impedes natural drainage patterns.

Channel migration and other modifications to riverchannels: due to erosion and sediment depositionmodifications can, as at Kampong Cham, destroy floodbanks that presently protect large areas of the townfrom inundation during annual floods. Similarly,dredging and other modifications to river channels canaffect peak discharges during the flood season.

Environmental benefits of floodsinclude:

• silt deposits that add nutrients to agricultural soils• flushing out of pollutants that are deposited in the

mainstream and tributaries during low flowperiods

• refilling floodplain wetlands and recharginggroundwater reserves

• maintaining of the river’s ecosystem, includingbreeding, nesting, feeding and nursery areas forfish, waterfowl, and other wildlife and vegetationthat local people rely on for food and householduse.

• maintaining the physical form and depth of theriver channel by flushing out fine depositedmaterial, cleansing gravel beds and resetting thevegetation on islands.

Economic and social costs of flooding

Immediate damage and loss of life

In 2000, severe flooding affected 22 of the 24provinces in Cambodia, with a death toll of 347people, of whom 80 percent were children. Over 3.4million people were affected, and physical damagestotaled US$161 million. In Lao PDR in 2000,preliminary estimates indicated that nearly 395,600people were seriously affected in 1,200 villages inseven provinces. An estimated 10 percent of the wetseason production was completely lost. Irrigationsystems and rural road infrastructure were widelydamaged, as well as large parts of provincial towns.Production losses amounted to approximatelyUS$20 million. In the Thai portion of the MekongBasin, losses in 2000 amounted to about US$21million. In 2001, Udon Thani was particularly hardhit by flooding, with 2.8 million people affected,47,350 km2 of farmland inundated and 5,300 km ofroads damaged. In the Mekong Delta in Viet Nam,over 500 people died due to the 2000 floods. A totalof 5 million people were affected, 825,000 homesdamaged or destroyed, and thousands of kilometersof national and provincial roads were damaged. Thetotal costs of flood damage amounted to US$285million.

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Longer term impacts of floods

In addition to these direct costs, floodingcauses significant indirect and cumulativeeffects. In the immediate aftermath of floods,the lost production of rice and other food cropsmeans months of insufficient food for manyhouseholds. The lack of grazing lands forcesfarmers to sell livestock at low prices. The timerequired to regrow damaged fruit andplantation trees means lower incomes forseveral years.

Official government figures for flood damagedo not include the costs to households to repairor replace their damaged housing and cropstorage facilities. Transportation costs increasewhen damaged roads and bridges cannot be restoredquickly, causing increases in the prices of some goodsand services. This, in turn, undermines trade andproduction efforts.

Damaged hospitals and clinics seriously limit theavailability of health services at a time when the riskof flood-related diseases is high. Children frequentlyloose many weeks of education as schools are floodedor damaged and individuals suffer increased stress-related problems. Following floods, there is oftenincreased rural-urban migration of flood-affectedpeople seeking work.

The impacts of flooding on the poor are particularlysignificant. In Cambodia, for example, ruralhouseholds generally have one hectare of rice land.The loss of 350,000 ha of paddy during the 2000floods meant that a very large number of householdslost their primary asset for assuring their own foodsecurity, as well as for generating cash income.Catastrophic events such as this often causehouseholds to sell their land in order to buy food orother essentials, with significantly higher risks thatthey will fall below the poverty line or not be able toget out of poverty.

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Cooperation is crucial

Where countries share boundaries they are oftenimpacted by each other ’s actions and this isparticularly true in a river basin. Water diversionupstream may reduce water availability downstream.Because fish migrate to spawn and feed, pollution inone spot may reduce the fishery throughout the river.Flood protection infrastructure in one country mayexacerbate flooding in others. Barriers to stopseawater intrusion may also stop the upstreammovements of fish.

If the citizens of countries that share a river basinare to live peacefully and equitably with each other,a commitment to transparency, trust and cooperationmust develop between them. However, fosteringthese qualities is challenging in the Mekong Basin.Six countries share the basin and they have differingpolitical, economic and social systems. Some alsohave a history of conflict with each other. Whiledevelopment of water and other resources is crucialto raise low standards of living, this may sparkcompetition within and among countries. To ensurethat resource uses are sustainable from an economic,environmental and social point of view, waterresource development must be planned, managedand monitored collaboratively and on a basinwidelevel.

Cooperation in the Mekong BasinBeginnings of cooperation – the MekongCommittee

Formal cooperation between Cambodia, Lao PDR,Thailand and Viet Nam has been under way fordecades. In 1957, with support from ECAFE, theEconomic Commission for Asia and the Far East (nowcalled ESCAP, the United Nations Economic and SocialCommission for Asia and the Pacific), the four LMBcountries set up the Committee for Coordination ofthe Investigation of the Lower Mekong Basin (generallyknown as “The Mekong Committee”).

In the 1950s and 1960s, in order to develop one ofthe world’s great ‘untamed’ rivers, ECAFE and theMekong Committee jointly conducted surveys of thebasin’s geology, hydrology, meteorology, topography,sedimentation, fisheries, agriculture and navigation.These led to the development of an Indicative BasinPlan in 1970 and identification of 181 potentialprojects worth an estimated US$12,000 million. Fora variety of reasons, including conflict in some of thecountries in the basin, few of the MekongCommittee’s ambitious projects were ever realised.However, the plan did lay the foundations forcollaboration among LMB governments in naturalresource planning.

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The Mekong River Commission

In 1995, the four LMB governments established a neworganisation – the Mekong River Commission (MRC),with a much broader mandate than the precedingMekong Committee, and managed by the four countriesthemselves, rather than under the direction of theUnited Nations. MRC’s vision for the basin and itsmission statement commit the organisation to equitablysharing resources and sustaining both the environmentand human welfare.

Cooperation to promote economicdevelopment

Although MRC and its predecessor, the MekongCommittee, have the longest history of promotingcooperation in the LMB, since the 1990s, otherinternational agencies have launched programmes inthe basin. Initially these focused on regional economiccooperation, but since 2000, the focus has broadenedto include environmental protection, floodmanagement and mitigation, and other importantconcerns.

MRC’s Vision for the Mekong Basin: Aneconomically prosperous, socially just andenvironmentally sound Mekong River Basin

MRC’s Mission Statement: To promote andcoordinate sustainable management anddevelopment of water and related resources forthe countries’ mutual benefit and the people’s wellbeing by implementing strategic programmes andactivities and providing scientific information andpolicy advice

The United Nations Economic and SocialCommission for Asia and the Pacific hasthe longest history of promoting economicdevelopment in the Mekong Region. Underits predecessor, ECAFE, it helped establishthe Mekong Committee. In 2000, ESCAPdeclared 2000-2009 the Decade of GreaterMekong Sub-region Development Co-operation, in order to attract internationalsupport for economic and socialdevelopment in the basin.

ASEAN, the Association of SoutheastAsian Nations, also fosters economiccooperation in the basin. In keeping withASEAN’s focus on raising standards of

living and closing the gap between the originalmembers and the newer (and poorer) ones, ASEANinaugurated the Basic Framework of ASEAN-MekongBasin Development Cooperation in 1996. Thisidentifies infrastructure, trade and investment activities,agriculture, forestry and minerals, industry, tourism,human resource development, and science andtechnology as priorities. It also seeks to complementthe development initiatives of other Mekong-relatedmultilateral agencies.

The Greater Mekong Subregion (GMS) EconomicCooperation Programme is the largest initiative topromote regional economic cooperation. It was set upin 1992 by the Asian Development Bank to encouragetrade and investment among GMS countries, resolveor mitigate cross-border problems and meet commonresource and policy needs. All four Lower MekongBasin countries are members, as well as Myanmar andYunnan Province of China.

In its first decade, the GMS Programme focused ontransportation, energy, telecommunications, humanresource development, tourism, environment, andpromotion of trade and investment, with loans andtechnical assistance totalling US$2,000 million. Forits second decade, agriculture and water resourcemanagement have been added to the list of prioritysectors.

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Other agencies promoting economic cooperationinclude the GMS Business Forum, established byESCAP and ADB/GMS in 2000 to promote privatesector cooperation and the Mekong Tourism Forum,also established by ADB/GMS and ESCAP, toencourage basin-level tourism development.

Cooperation to promote environmentalsustainability

A number of international organisations havedeveloped basin-level initiatives to promoteenvironmental sustainability and natural resourceconservation. These include the World ConservationUnion (IUCN), the World Wide Fund for Nature(WWF) and the Oxfam Mekong Initiative (OMI). Allof these agencies have long histories of promotingcooperation to sustain the environment in individualMekong countries, but fostering regional cooperationis relatively new.

In the 1990s, when the coming of peace to the LMBrenewed interest in large-scale infrastructure projectssuch as regional highways and dams, IUCN beganhelping governments and development agencies toconduct baseline studies in environmentally-fragileareas such as wetlands and watersheds. IUCN has alsobeen working with local communities in fragile areasto develop sustainable livelihoods such as eco-tourism.In 2003, in partnership with MRC and UNDP, IUCNbegan a five-year, US$32.6 million programme topromote regional cooperation in assessing andconserving biodiversity.

In 2002, WWF launched its five-year IndochinaStrategy that encompasses Cambodia, Lao PDR andViet Nam. The goal of this is to ensure that biologicaldiversity is valued and conserved by current and futuregenerations. WWF has also identified the MekongRiver as one of its Global 200 Highest PriorityEcoregions and featured the Mekong as one of five“Living Rivers” in its worldwide “Living WatersCampaign”. In 2002, MRC and WWF signed amemorandum of understanding that allows the two

organisations to work together in a number of areas ofcommon interest intended to meet the needs of thepeople, but at the same time ensure the long-termsustainability of the river and its related resources.

Oxfam’s Mekong Initiative (OMI) works in all sixMekong countries on four thematic issues: trade,poverty reduction, infrastructure and capacity building.At a time of rapid development with transboundaryimpacts, OMI works with local-level NGOs to ensurethat people have a voice in planning, managing andmonitoring what happens to their resources and theircommunities.

The initiatives of all the agencies just described arestrengthening the capacity of governments, civil societygroups and other key stakeholders to work together ata regional level in finding solutions to basin-wide andtransboundary environmental problems, and incontinuing this collaboration for the long term.

The challenge of cooperation

The Mekong Basin is a complex region politically,socially and in terms of its environment. There aremany players: international organisations such asASEAN, ESCAP and MRC, six national governments,and many provincial and local level governmentorganisations. In addition there are developmentsupport organisations such as the World Bank, theAsian Development Bank and many national donors.Civil society organisations range from the largeinternational ones such as IUCN, WWF and Oxfam tosmall local groups such as unions, cooperatives andconservation groups.

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To be successful, any planning process must achievesome sort of consensus on what the basin should be.The technical aspects of planning, development andenvironmental management are relatively simple incomparison with the challenge of identifying preferredoutcomes for the basin.

Outcomes range from that of a completely pristinebasin with intact ecosystems – a kind of wildernesswith almost no people – to a basin covered in concreteand factories, with a polluted river reduced to a chainof reservoirs. Neither extreme would be acceptable tomost of the people in the basin. The challenge lies inachieving consensus regarding where, between thesetwo extremes, the level of development should fall.

The six countries that share the Mekong basin havediffering development goals and these are not alwaysin accord with each other, or with those of people atthe village level. Nor do the goals of governmentnecessarily match those of civil society groups.Because of these differences, it is now recognisedworldwide that successful planning must be inclusiveand take into consideration the needs and aspirationsof all stakeholders.

The MRC’s Basin Development Plan project is onerecent initiative that is working to develop an inclusiveplanning process. However, achieving this goal willnot be easy. Even in developed countries with fargreater resources, inclusive planning processes havebeen difficult to achieve. Usually plans leave somestakeholder groups dissatisfied, and none achieve allof their goals.

The first step towards effective planning is the buildingof collaborative relations across the basin, and thisrequires understanding, trust and breadth of vision.Fortunately, unlike many other regions in world, a starthas been made in the Mekong Basin while the river isstill in good condition and natural resources are stillabundant.