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A Leap of Faith

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A Leap of Faith A Leap of Faith A story of Swedish aid and paper production in Vietnam - the Bai Bang project, 1969-1996 A Sida EVALUATION REPORT By Chr. Michelsen Institute A Sida EVALUATION REPORT A Leap of Faith A story of Swedish aid and paper production in Vietnam – the Bai Bang project, 1969–1996 By Chr. Michelsen Institute Alf Morten Jerve Irene Nørlund Nguyen Thanh Ha Astri Suhrke A Sida EVALUATION REPORT Evaluation Reports may be ordered from: Infocenter, Sida S-105 25 Stockholm Telephone: (+46) (0)8 795 23 44 Telefax: (+46) (0)8 760 58 95 E-mail: [email protected], Homepage http://www.sida.se Authors: Alf Morten Jerve, Irene Nørlund, Nguyen Thanh Ha, Astri Suhrke. The views and interpretations expressed in this report are the authors and do not necessarily reflect those of the Swedish International Development Cooperation Agency, Sida. Sida Evaluation 99/4 Commissioned by Sida, Department for Evaluation and Internal Audit Copyright: Sida and the authors Registration No.: UTV-1997-0023 Date of Final Report: February 1999 Printed by Novum Grafiska AB, Gothenburg, Sweden 1999 ISBN 91 586 7671 6 ISSN 1401—0402 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Address: S-105 25 Stockholm, Sweden. Office: Sveavägen 20, Stockholm Telephone: +46 (0)8-698 50 00. Telefax: +46 (0)8-20 88 64 Telegram: sida stockholm. Postgiro: 1 56 34–9 E-mail: [email protected]. Homepage: http://www.sida.se Acknowledgments A team of four researchers has prepared this report: – Alf Morten Jerve, social anthropologist and Director of Advisory Services at the Christian Michelsen Institute (CMI), has co-ordinated the study and is the main author of chapters 3, 5, and 8. Jerve has extensive experience from different types of aid projects and programmes; with regard to the present project, his main focus has been on organisational aspects and decision-making. – Irene Nørlund is a historian. She wrote her Ph.D. thesis on economic develop- ment in Vietnam and is a Research Fellow at the Nordic Institute of Asian Studies (NIAS) in Copenhagen. She is the main author of chapters 4, 6, and 7. With a background spanning more than 20 years of work in Vietnam, her main task has been to relate the story of Bai Bang to broader developments in Vietnam. – Nguyen Thanh Ha, economist and Deputy Head of Technology Department at the National Institute of Science and Technology Policy and Strategic Studies (NISTPASS), Hanoi, has collected data and conducted interviews with the principal actors in Vietnam, and has provided inputs on Vietnam- ese perspectives for all the chapters. – Astri Suhrke, political scientist with a Ph.D. in international relations, is a Senior Research Fellow at CMI. She is the main author of chapters 1, 2, and 9, and is the main editor of the entire report. The team bears sole responsibility for the findings presented in this study, as it does for any errors or oversights. To supplement the work of the core team, CMI commissioned three sub-studies: – Ulf Bjereld (1998). Striden om Bai Bang – En studie av de inrikespolitiska och utrikespolitiska faktorernas betydelse kring Bai Bang-projektet. – Anne Pandolfi (1998). Bai Bang i svenska medier 1980–1996. – Mats J. Svensson (1998). Projektorganisationen i Bai Bang. iii The results of these studies have contributed to the main report in various ways, which are not always directly acknowledged by reference. The sub-studies are available from Sida and CMI. Mats Svensson also assisted the team in arranging interviews and tracing documents in the Sida archive. Orgut Consulting AB, Stockholm, assisted CMI in the early design and later in contacting a number of key informants in Sweden. A special thanks to Tor Skaarud for his work. We wish to acknowledge the advice offered to the team by a number of people: – Lars Ekengren, Sida (reference person) – Sigvard Bahrke, Consultant, Stockholm (reference person) – Stefan de Vylder, Consultant, Stockholm (reference person) – Jan Cedergren, Ministry for Foreign Affairs, Stockholm (reference person) – Olav Stokke, Norwegian Institute of International Affairs, Oslo (advisor) – Helge Pharo, Department of History, University of Oslo (advisor) – Lars Chr. Blichner, Department of Public Administration, University of Bergen (advisor) – Martin Eide, Department of Media Studies, University of Bergen (advisor) – Pierre Frühling, Consultant, Stockholm (advisor) – Per Engelstad, Work Research Institute, Oslo (advisor) Special thanks to Chris Saunders for language editing, and to the team at CMI who assisted in the administration, editing, and final production of the study: Merete Leby, Armindo Miranda, Whyn Nguyen and Robert Sjursen. We would like to take this opportunity to thank the numerous persons in Sweden and Vietnam who patiently submitted to interviews, sometimes on more than one occasion. Their contributions are evident throughout the study. A full list of persons interviewed is appended. Several people made special contributions to the study that were of particular importance: Ernst Michanek generously shared his recollections and notes; Birgit Öberg gave us part of the unpub- lished manuscript of Jean-Christophe Öberg, intended as Volume II of his book Varför Vietnam, as well as some of the documents from his personal archive; Harry Hermansson retrieved important archival material from the WP-System period; and Christer Ehnemark guided us through the archives of Scanmanage- ment. Special thanks to the management of the Bai Bang Paper Company who generously gave of their valuable time for interviews and access to the company archives. Eva Lövgren of Sida was an understanding and untiring source of support and advice throughout. iv Alf Morten Jerve Chr. Michelsen Institute Bergen January 1999 Abbreviations and terms APO Annual Plan of Operation ASEAN Association of South East Asian Nations Bapaco Bai Bang Paper Company BC Building Company; enterprise under MoC Board (SIDA) Committee of politically appointed persons (in Swedish, Styrelsen) DCO Development Cooperation Office, term used for SIDA/Hanoi (in Swedish, biståndskontoret – Bk) DF Directorate of Forests, later MoF doi moi Vietnam’s economic reform programme decided in 1986, and effective from 1990 (meaning ‘renovation’) dong Vietnamese currency DRV Democratic Republic of Vietnam (until 1975) EC Erection Company, enterprise under MoC FCC Forest Zone Construction Company FIPI Forestry Inventory and Planning Institute, Hanoi FRC Forest Research Centre, enterprise under MoF HBFC Ham Yen Bac Quang Forest Company ID Industry Division, SIDA IM Interior Ministry JP Jaakko Pöyry & Co LANT Agriculture/Natural Resource Division, SIDA Management Board (SIDA) Committee of senior managers (in Swedish, Direktionen) MFA Ministry for Foreign Affairs, Sweden MoC Ministry of Construction, Vietnam MoF Ministry of Forestry, Vietnam v MoFT Ministry of Foreign Trade, Vietnam MoI Ministry of Industry, Vietnam MoLI Ministry of Light Industries, Vietnam PAC Project Advisory Council, formed by SIDA for the project – 1970s PM1/PM2 Paper machine (the first and the second installed) RMA Raw Material Area, the area designated for wood supply to Bai Bang aside SEK Swedish currency – krona SIDA Swedish International Development Authority (until 1995) Sida Swedish International Development Cooperation Agency (formed through the merger of five Swedish development cooperation agencies in 1995) SM Scanmanagement SPC State Planning Commission, Vietnam SRV Socialist Republic of Vietnam (after 1975) tet New Year (lunar) TIP Transport Implementation Project ToK Transfer of Knowledge programme VPPPP/M Vinh Phu Pulp and Paper Project/Mill VPSU Vinh Phu Service Project Union, the enterprise supplying wood to Bai Bang VPU Vinh Phu Pulp and Paper Union, the enterprise operating Bai Bang WP WP-System vi CHINA Raw Material Area Road No. 2 Bac Quang Chiem Hoa Song Hong Song Lo Ham Yen LAO CAI HA TUYEN Yen Son YEN BAI Bai Bang Viet Tri Hanoi Hong Gai Haiphong LAOS vii vi Contents Introduction.............................................................................................. 1 What is Bai Bang? .................................................................................. 1 Why study Bai Bang? ............................................................................. 3 What kind of study? .............................................................................. 4 Phases ............................................................................................... 5 Contexts ........................................................................................... 5 Issues................................................................................................. 7 Organisation and methodology of study ............................................... 8 Structure of the report .................................................................... 9 To study learning ............................................................................ 11 Methods.......................................................................................... 11 Chapter 1 Aiding North Vietnam – an idea takes form ......................... 18 The roots .............................................................................................. 20 The Swedish side ............................................................................ 20 The Vietnamese side ...................................................................... 28 Aid preparations on the Swedish side 1967–69 ................................... 36 The first meeting: September 1969...............................................
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