APCEL Report : Laos
Back to : Index : Environmental Law (ASEAN-10) : Laos
PRELIMINARY ASSESSMENT OF LAO P.D.R.'S ENVIRONMENTAL LAW Alan K.J. Tan, Faculty of Law National University of Singapore
The Lao People’s Democratic Republic (Lao PDR) is a landlocked, relatively less developed state in mainland South East Asia, occupying 230,800 square kilometres of land area. The population of 5,116,959 (July 1997 estimate) is concentrated mainly in the rural areas (75% rural, 25% urban). The economy is principally agricultural, with 80% of the population engaged in farming activities. The main crop is rice, but significant tracts of land are also utilised for pastures and freshwater fish and shrimp ponds.1. INTRODUCTION
The country is largely mountainous, with 54% of the land covered by subtropical forests. The many river systems flowing from the mountains create vast potential for the generation of hydroelectricity, which is exported mainly to neighbouring Thailand. The other major exports are timber products and minerals such as tin, gypsum and precious stones. The Lao PDR is administratively divided into 16 khoueng (provinces), the kampheng nakhon (municipality) of Viangchan (Vientiane) and the khetphiset (special zone) of Xaisomboun. The largest urban areas are the national capital Viangchan (Vientiane) (population 500,000) and Luang Prabang.
The Lao PDR is currently opening up as a market-oriented economy following the economic reforms introduced in the 1980s. These reforms have resulted in the influx of foreign investment and significant economic growth. From 1986 to 1990, the gross domestic product reached an annual average increase of 4.8%, and from 1991 to 1995 the increase was 6.4%. The per capita gross domestic product stands at US$1,150 (1996 estimate). Agro-forestry and hydroelectricity development remain the leading foreign exchange earners, and together with the industrial and service sectors, form the backbone of the reformed economy. While agriculture continues to form a major economic sector, the fact remains that much of agriculture remains at the subsistence level with low outputs.
The Lao PDR is only beginning to face environmental challenges that have resulted from its increasing levels of development. The exploitation of the country’s abundant natural resources appears to be the most lucrative of developmental projects. However, activities such as hydropower generation, timber extraction and agriculture present a variety of problems - the Lao PDR has in recent years experienced significant deforestation and soil degradation caused by shifting agriculture, and the loss of biodiversity, forest cover and cultural heritage due to hydropower, infrastructure and settlement development. Due to its relatively low level of industrialisation, problems caused by industrial and urban pollution remain negligible, even though such pollution appears to be increasing as new manufacturing investments flow into the country. As with many developing countries, one significant challenge for the Lao PDR in the next few years is the pursuit of economic development whilst protecting and conserving its vast natural resource base.
2. INSTITUTIONAL ARRANGEMENTS
2.1 Structure of Government
At the provincial level, each province is administered by a local government headed by the provincial governor. The provinces are subdivided into districts and villages, and these are administered respectively by district and village councils.
2.2 Environmental Institutions
The DOE has two divisions - the Policy and Programmes Appraisal Division (PPAD) and the Regulation and Compliance Monitoring Division (RCMD). The PPAD is tasked with the formulation of a national environmental policy, employing policy inputs and technical assistance from the other ministries. The RCMD is responsible for overseeing the legal and regulatory framework on environmental management. STENO/DOE has to date established environmental units in two provinces, Champassak and Savannakhet. These units come under the direct control of the provincial governments, but they receive administrative and technical support from STENO and the central government. There are plans to establish additional STENO environmental units in the rest of the country.
Other sectoral ministries and agencies possess
vast powers over environmental matters falling within their respective
spheres of competence. These ministries maintain departments in the provinces,
which report both to their parent ministries in Vientiane and to the provincial
governors. The following is a list of sectoral competence:
| Ministry | Area of Competence |
| Science, Technology and Environment Office | Environmental management (Dept of Environment) |
| Ministry of Agriculture and Forestry | Land, forest and water management |
| Ministry of Industry and Handicrafts | Industrial activities, mining and hydropower |
| Ministry of Communication, Transport,
Post
and Construction |
Transport infrastructure and urban development |
| Ministry of Public Health | Occupational health and safety standards,
water supply
and sanitation |
To coordinate the activities of the various ministries and local authorities, STENO has established an Inter-Ministerial Working Group (IMWG) to provide advice, collaboration and recommendations on the various environmental issues in the country. The IMWG comprises representatives from the relevant line ministries whose activities impact upon the environment, as well as the State Planning Committee, which is the authority in charge of national planning. Recent developments, principally the discussions on the Draft Environmental Protection Law, indicate that a multi-agency Environmental Council will be established soon under the chairmanship of STENO’s Vice-President, with many of the same functions as the IMWG.
Domestic environmental NGOs do not currently exist in the Lao PDR. The country has three main government organisations which are linked to the ruling political party, the Lao People’s Revolutionary Party - these are the Youth Group, the Women’s Union, and the Federal Trade Union. In particular, the Lao Women’s Union engages in activities related to the environment, such as promoting modern agricultural techniques and providing assistance for small-scale income generation activities, including livestock production and handicrafts. There are plans to involve the Youth Group and the Federal Trade Union in environmental training and awareness activities.3. NON-GOVERNMENTAL ORGANISATIONS
Private companies and industries are also involved in environmental activities. A private company operating in Vientiane, Savannakhet, Luang Prabang and Pakse is responsible for collecting solid wastes in these cities and disposing of the wastes in landfills. There are plans to allow private companies to set up incineration plants for both biodegradable and non-biodegradable wastes.
Many international institutions and NGOs have offices in the Lao PDR. These include IUCN, AUSAID/NGO Cooperation Programme (ANCP), GTZ (a German group which is currently establishing an Environment Training Course at STENO’s office in Vientiane), and the World Health Organization, which is looking into water matters. Other groups include World Vision (health and education), Health Frontiers (health), Save the Children Fund (health and education) and Comite de Cooperation Avec les Laos (health and agriculture). Most of the activities of the international NGOs involve community education and training.
4. ENVIRONMENTAL LEGISLATION IN THE LAO PDR
4.1 Types of Legislation
4.2 Framework Laws and Provisions
The increasing awareness of environmental protection and natural resource management in the Lao PDR has culminated in the consideration of a draft framework Environmental Protection Law (hereafter, "Draft Law"). This Draft Law is currently being considered by the Lao PDR government, and is expected to be enacted in 1998. The Draft Law provides a broad and holistic approach to environmental management in the Lao PDR, with sustainable utilisation of natural resources being one of its prime objectives. As currently drafted, the Draft Law is an exceedingly general document which outlines the broadest of environmental policies. More detailed implementing regulations are expected to be passed to provide specific elaboration on the pertinent issues.
Article 3 of the Draft Law provides that the Government shall ensure that environmental preservation is included in and is harmonised with the national socio-economic development plan. This represents a far-sighted approach by the government to ensure, in principle, that environmental considerations are incorporated into developmental processes and decision-making. The Draft Law also mandates that all persons, juridical entities and organisations utilising natural resources in the course of their activities shall contribute financially towards environmental protection and natural resource preservation.
STENO is explicitly mentioned in the Draft Law as the "central environment management agency" which has the mandate to coordinate environmental protection efforts of government ministries as well as provincial authorities. It is envisaged that STENO shall administer an environmental impact assessment (EIA) system, in collaboration with relevant line agencies. The Draft Law, in almost every provision, clearly anticipates the coordinated roles of sectoral line agencies, as well as of provincial, municipal and special zone governments - the provisions refer frequently to the responsibilities of "the concerned sectors", "administrative authorities at all levels", "local environmental management agency" and "relevant sectors’ environmental management agencies", as well as to the need to coordinate these responsibilities. Indeed, Part VII of the Draft Act explicitly provides that the "environment management agency" shall be taken to mean the central and provincial agencies, as well as the environment management divisions of the relevant ministries.
Part III of the Draft Law, entitled "Protection and Control of Pollution", proceeds to outline the obligation of industrial project proponents to abide by sectoral regulations on waste management, including provisions on EIAs, noise pollution, hazardous substances and pollution from vehicles. Part IV deals more specifically with the management of wastes, by providing for modern technologies to deal with wastes, recycling and reuse, garbage disposal, installation of waste management equipment and the re-siting of factories to industrial zones. Waste water management is specifically dealt with in Part V of the Draft Act, whilst Part VI provides for the prevention and handling of natural disasters such as floods and droughts.
Part VIII deals with external relations, including obligations assumed under international environmental conventions. An Environmental Fund is envisaged by Part IX to support implementation efforts and environmental research. The Fund is to be financed by various sources, including the government, investment projects with impact on the environment, as well as local and foreign individuals and entities. The Ministry of Finance is expected to administer the Fund, with the participation of STENO and all relevant ministries. Part X regulates the enforcement effort through control and monitoring activities, and anticipates court proceedings to deal with environmental violations. Finally, compensation provisions are outlined in Part XI, including awards, sanctions and obligations to restore the environment. Environmental damage caused prior to the promulgation of the Draft Law is also encompassed.
The main sectoral laws in existence include the Forestry Law, the Mining Law and the Water and Water Resources Law. Most of these laws are fairly recent, having been enacted in the past five to eight years following the legislative reforms undertaken by the Lao PDR Government. In relation to forestry (one of the most important natural resource sectors), the Forestry Law of 11 October 1996 contains broad principles and guidelines on forest use and management. It maintains the categorisation of forests into several types according to use, and provides forest-dwelling communities with enforceable use and access rights to the areas they have traditionally controlled. This enables these communities to be involved in the system for protecting the forests.
A related concern would be the preservation of biological diversity - in this respect, Prime Ministerial Decree No. 164 on National Biodiversity Conservation Areas was promulgated in October 1993. It established 18 National Biodiversity Conservation Areas (NBCA) covering more than 10% of the country’s area. The 1993 decree was supplemented by a 1996 decree which added two additional areas to the list.
While the level of industrialisation is still relatively low, one issue of increasing concern is water pollution due to urban development and industrial pollution. Existing water supply systems in towns are generally in poor condition. Ground water contamination is progressively becoming a serious issue in the larger cities (especially in Vientiane), both from sewage and increasingly from industrial wastes. In terms of legislative tools to regulate industrial pollution, a February 1992 decree covering industrial management exists to regulate emissions from industries. This Decree was supplemented with a 1994 decree on industrial discharge and emissions which sets forth concentrate standards for various types of factories, including sugar mills, textile and garment factories and pulp and paper mills.
5. PROBLEMS IN IMPLEMENTING ENVIRONMENTAL LEGISLATION
5.1 Jurisdictional Problems and Lack of Specificity in Legislation
However, substantial institutional and infrastructural constraints still remain. For one thing, the line ministries, including the newly-created STENO, lack a clear mandate on environmental issues. Also, the regulatory mechanisms are often inadequately implemented because of the lack of environmental standards and guidelines. This problem is exacerbated by the inadequate manpower and budgetary capacities of the line ministries to incorporate environmental planning into developmental projects. In the result, the practice remains for the respective agencies to continue governing their own sectoral legislation and activities in an uncoordinated fashion. Further and more complicated problems arise in relation to coordinating the work of central and provincial agencies.
The provisions of the Draft Law are at present, too general to afford any concrete assistance in these respects. Most of the Draft Law’s provisions call for coordinated efforts amongst sectoral agencies, as well as amongst central and provincial governments, but no elaboration is provided on how exactly this is to be done. To this end, the Lao PDR government realises the critical need for implementing regulations and expects that these will be subsequently enacted to provide greater details on inter-agency coordination as well as on environmental protection in general.
Efforts to promulgate implementing regulations are currently being undertaken. It is hoped that subsequent regulations will also fill in the substantial gaps which exist at present in relation to the penalties imposed for violations, the inter-relationship between penalty provisions in environmental legislation and the civil and criminal laws, the role of administrative or judicial enforcement of regulations, etc. Thus, it is clear that further concerted efforts are needed to strengthen the institutions involved in decision-making, as well as to improve upon the legislative framework for environmental administration and coordination in general.
A familiar recurring problem in developing countries relates to the dearth in trained manpower, as well as financial resources. Only 15% of the population in the Lao PDR has advanced educational training - technical expertise (in the form of scientific and legal staff) is thus severely lacking to identify and enact environmental regulations. Even after the enactment of regulations, trained manpower in the form of enforcement officers is needed to effectively implement these regulations and to deal with violators. This is currently lacking in the Lao PDR. In addition, there is a dearth in reliable equipment for monitoring and testing efforts. Funding is also severely limited - additional funding is needed from local and especially foreign sources, to adequately finance various environmental protection efforts. Given the country’s relative poverty, low literacy rate, challenging geography and limited infrastructure, the environmental protection effort faces a monumental challenge in the coming years to ensure that sustainable development polices are properly formulated and implemented.5.2 Manpower and Budgetary Problems
Environmental education will also be necessary to heighten public awareness on environmental management. New issues will constantly arise about which many Lao officials may not have sufficient knowledge and experience, e.g. the management of hazardous substances from industries and household wastes from urban settlements. In relation to natural resource management, minimising slash-and-burn agricultural practices requires education on fixed farming techniques.
More efforts are also needed in developing regulatory mechanisms and economic instruments to promote compliance with environmental legislation. At present, several elementary compliance promotion schemes are already in existence, including taxes on vehicles, workers’ compensation funds for occupational safety hazards, national awards to reward environmentally-friendly behaviour by industries and citizens, waste disposal charges and permit and licensing systems for factories.
From the recommendations in the Environmental Action Plan (EAP), it appears that the Lao PDR government intends to further develop the use of compliance promotion schemes. For example, the section of the plan discussing environmental issues and industrial development stipulates that the cost of industrial waste permits may eventually include the costs of monitoring effluent waste water discharge. In addition, the EAP states that industries may have to pay charges for discharging industrial waste water based on each firm’s presumed output levels. Ultimately, it is expected that the revenues generated by pollution charges and taxes can be applied towards increasing manpower and technical capacities needed to enforce compliance.
5.3 The EIA Process
In terms of capacity-building, the environmental assessment skills of STENO and other line agency staff need to be strengthened as follows:
As a relatively less developed economy, the Lao PDR may not yet experience severe pollution problems brought about by industrialisation and urbanisation. However, there are signs existent already that there is significant natural resource depletion, with environmental challenges arising from deforestation, flooding and soil degradation. Also, the recent inflow of foreign investments has introduced new industries capable of producing substantial amounts of industrial wastes.6. CONCLUSION
To meet these new challenges, an effective legislative framework, coupled with adequate financial and manpower capabilities, must be established in the country. Capacity-building efforts are critically needed to develop the requisite technical, legal and administrative capabilities which are hitherto lacking. Greater coordination of authority amongst central ministries, as well as between these and provincial governments, is required to secure coherent policy formulation and implementation. At the same time, widespread education programmes should be encouraged to promote environmental awareness amongst the people.
APPENDIX SELECTION OF MAJOR ENVIRONMENTAL LAWS
General Environmental Legislation
Forest Management
National Action Plans and Other Policy Instruments
last updated 15th September, 1998
Asia-Pacific Centre for Environmental
Law
Faculty of Law
National University of Singapore
© 1998