Phased Out
This article almost escaped my attention. Apparently, the Swedish government has decided to downgrade its office in Laos from an embassy to a “section office” in 2008 and by 15 August 2008 at the latest.
This implies that all consular, passport and visa services that normally run through this office will be stopped. The reason for this is that the development cooperation between Laos and Sweden has been reviewed and consequently the Swedish government decided to end the bilateral development cooperation with Laos.
Wow…
Swedish aid to Laos began in 1974. Sweden was one of the first countries to provide support to Laos and is also a considerable Foreign Direct Investment partner of Laos. How come there is such a change of heart?
In their written document Country strategy for development cooperation, the Swedish government even promised to increase the bilateral aid. Contrary, Sweden’s next step is now to phase out this relationship with Laos completely.
This puzzles me. What could be the reason for such a draconian measure? Let us look at page 17 and 18 of the Country strategy for development cooperation document:
A mid-term review will be conducted to assess progress, and will determine the level of further Swedish funding. Generally accepted principles/standards based on international human rights conventions will be applied when developing the indicators for this review.
Criteria for assessing strategy implementation will be developed and applied at the annual programme reviews and at the mid-term review. Sweden will attach particular importance to the progress made on the issues of rule of law, respect for human rights, and
democratic governance.Should the mid-term review show that clear progress has been made in Laos on economic and social reform, on political reform with a democratic orientation, and on respect for human rights, Sweden will look into the possibility of increasing the volume of its funding.
Should the review show that the situation regarding democracy and human rights has deteriorated; Sweden will have no choice but to reconsider the level and content of its development cooperation with Laos. Deterioration in the situation should prompt a highlevel consultation process between Sweden and Laos to discuss the specific issues of human
rights and democracy.
If I am interpreting the situation right, Laos basically failed the Swedish annual democracy and human rights review. Contrary to all the rumors about the level of corruption, I don’t think corruption was the breaking point of the bilateral relationships.
It appears that the Lao government agreed to take more democratic measures and improve the human rights situation in Laos, but failed to put that commitment into practice. The price for that is paid in Swedish Krona.



















Well, it’s been a couple of bad years in Laos. The oppresion of ethnic Hmong has only increased.
Relocation of upland peoples continues without pause despite widespread understanding that it leads to increased poverty, theft of land by foriegn natural resource developers, loss of cultural identity and so on.
Those 70+ hydro projects don’t have numbers that add up. To pay the Lao PDR’s minority interest in them (often 25%) would be impossible. One would have to suspect hydro sites are just being sold outright for graft. The relocation seen so far will seem like tiny amounts. When you look at the maps the resevoirs stretch a long way up many river valleys of the Lao PDR. If one were to ignore the negative affects on people, and the environment entirely, I still suspect they would be very bad deals as little money will reach the people who need it.
I can’t blame the Swedes.
Agreed. It is a bit of a sad fact.
But look at years of economic sanctioning of Iran, Iraq and North Korea, I don’t think these sanctions have brought much improvement there.
It remains a puzzle.
Very interesting post. It’s indeed very sad whenever friends pack up and leave. Will they return? This is not a sanction, is it? I’m curious. I don’t know the situation in Laos that much. Feel free to enlighten this soul. Swedish shouldn’t cease aid to Laos but with Lao instead. May be?
The Swede were probably fed up with the LPRP officials. Maybe it is all the corruption going on. I like to know the real story why they left.
I want to know too. This is a big news matter. No matter what, LPDR and its leaders may see this as a signal, ting ting ting, for change. Swedish were in LPDR for a long time. I’m sure, after they counted their cards, they decided to fold. This can lead to the question, what have they done for the Lao people? In the other hand, the Swedish could be singing, what have you done for me lately? I guess, if we care about Lao we should follow the news more closely. What do you think D?