Railroading land-linked Laos: China’s regional profits, Laos’ domestic costs?

Abstract

Previously articulated within several regional multilateral frameworks, the “China-Laos Railway” eventually turned into a flagship project of China’s Belt and Road Initiative (BRI). Started in 2016 and planned to be completed in late 2021, this project will provide Laos with unprecedented railway infrastructure, linking its capital Vientiane with China through the northern border town of Boten. This paper critically scrutinizes the underlying geo-economic win-win rhetoric of coupling China’s regional BRI ambitions with Laos’ national vision of transforming into a land-linked country. Understanding the newest BRI labeling of infrastructural connectivity against the backdrop of Laos’ and the region’s longer-lasting neoliberal developmental trajectory, I examine the financial mechanism of the railway project and the different temporal and spatial scales of Laos’ and China’s calculation of potential benefits. These are juxtaposed with the empirical reality of already visible dynamics and impacts of Chinese investment alongside the railway. Together, they tend to paint a future of Chinese profits at the expense of Laos’ sustainable long-term development. Contributing to much-needed grounded accounts of local unfoldings of China-backed megaprojects, I pay particular attention to vernacular discourse and experience to fully understand the nature, processes and impacts of BRI financing.

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