Social Science Asia, Volume 4 Number 4, p: 14-23 DOI : 10.14456/ssa.2018.29

GEOPOLITICS TOWARDS THE BORBER OF AND LAO PDR: A CASE STUDY OF – SPECIAL ECONOMIC ZONE

Prajuab Janmuean*

Abstract

The objective of this study was to present the geopolitics between the border of Thailand and Lao PDR in the special economic zone of Mukdahan, Thailand; and Savan-Seno, Lao PDR. This paper is a part of the Tourism Development Model towards Thai – Lao: Case Study of -Khammouan-Mukdahan-Savannakhet-Seno Special Economic Zone. The Author used geopolitics as the main analyzed concept to indicate that to be a nowadays does not overshadow the government role. The role was changed to support capitalism in neoliberal globalization that necessarily affected the daily life of both Thai and Lao people.

Keywords: geopolitics, border town, neoliberal globalization, daily life

1. INTRODUCTION After World War II, the changing Geopolitics was from a period of time in context of global society had changed the the West before the World War II. The significance of the borders of each country in concept focused on political power in Southeast Asia from a non-modified area to a relation to geographic space. The territory migrant workers area. Each state's role and border was important to the states to required the establishment of a supervisory spread their territory and protect it for their and mechanism system. But the other side security so that they did not see the dynamics was the process of opening a specific area to border areas between the states. The support international trade and investment as stereotypical view of the state boundary was examples of the emergence of special heavily criticized in the later period and the economic zones on the border of Thailand - geopolitical concept was significantly Burma-- Cambodia-Vietnam. (Sommai reduced. Nevertheless, geopolitical ideas Chinnak, 2013: 63-65) were dusted again after the word When the special condition occurred, it ‘Globalization’ and ‘Neoliberalism’. As a is a condition that some groups called the result, the state and the capital work together exception that the state has the power to to produce a differentiated economic regulate and let the state and the capital act as propulsion system. (Jittipat Poonkham, 2017: 10)

* Prajuab Janmuean is currently a lecturer of Public Administration Program, College of Laws and Government, Sisaket Rajabhat University, Thailand. 14 Official Journal of National Research Council of Thailand in conjunction with Community University Engagement Journal

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prescribed by law. (Piyabut Saengkanokkun, The author shows the geopolitics 2013: 84) In particular, the author would like between of Thailand and to present the exception area in Thai-Lao Savannakhet district of Lao PDR since they special economic zone. At present, are the East-West Economic Corridor international geography has been modified to (EWEC) of Thailand and Lao PDR. The key facilitate trade, investment and traveling elements are: route. As in Lao PDR, modern technology 1. Factors that affect the emergence of from China has been drilled through the new geopolitics along the Thai-Lao mountain to create the Chinese-Lao railway River: This section presents The Greater to That Luang special economic zone, Mekong Sub-region Initiative and the results , Lao PDR according to China’s of the previous action plan. It then presents One Belt One Road policy In addition, the the one belt one road policy of China and the Lao government has granted permission to special economic zones of Mukdahan, foreign investors in the various districts. As Thailand, and Savannakhet, Lao PDR. It will in the case on Savan-Seno special economic be concluded that these important factors zone, the Lao government gives Malaysian have created new geopolitics for the border investors authority to manage trade and provinces along the Mekong River especially investment in this special economic zone. Mukdahan province. From the effects of the economy in Lao 2. Characteristics of new geopolitics at PDR, the Thai government has responded to Mukdahan - Savannakhet border: This key the changes that occur in the region with a element will expand the section from the first plan to build two more Thai-Lao Friendship key element by offering the information on Bridges in the northeast of Thailand: the fifth trade and investment, capital movement, friendship bridge in the area of - policy adjustment to facilitate investment, Bolikhamsai, and the sixth friendship bridge and Tourism development including the in the area of -Salavan. In state’s role adjustment to attract foreign addition, besides the bridges, the Thai investment in both Mukdahan and government also has a policy to develop a Savannakhet. This indicates the development double track railway to the Northeast. and impact of the Mukdahan Special Moreover, there is the development of the Economic Zone to reflect on the tourism road network in the Northeast that will be development in Mukdahan area. able to link the provinces along the Mekong 3. Conclusion: in his section, the author River from , , Bung Kan, will propose that the Mukdahan special Nakhon Phanom, Mukdahan, Amnat economic zone is not progressing as planned Charoen and Ubon Ratchathani. In other unlike the Savan-Seno special economic words, this creates a new geopolitics to drive zone with continuous development. the special economic zones in the Northeast, However, the author will conclude that the which the government announced that Nong context reflects that both Thailand and Lao Khai, Nakhon Phanom and Mukdahan PDR apply neoliberalism to maintain the provinces are special economic zones in centralized state administration without 2015. As a result, the provinces became the letting local governments and local people specific areas that allowed the capital system bargain to share their decision-making to move more conveniently. power.

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2. FACTORS THAT AFFECT THE EMERGENCE OF NEW GEOPOLITICS ALONG THE THAI-LAO MEKONG RIVER

The important factor that makes the provinces along Mekong River in the northeast of Thailand and districts in Lao PDR are more closely related to creating the economic cooperation, society, culture and Figure 1: Route of East-West Economic politics in many ways, and it becomes a new Corridor geopolitical area along Mekong River, which is the Greater Mekong Sup-region Initiative In addition, Geopolitics of Thai – Laos’s (GMS), a project initiated by the Asian border is caused by the economic policy of Development Bank (ADB). It is a program of China. In 2015, The Chinese government has technical assistance to develop networking announced a vision and guideline for driving between 6 countries, including China, Laos, the construction of the Silk Road and Myanmar, Thailand, Cambodia and Vietnam, Maritime Silk Road economic zones in the which was later known as the Greater 21st Century to strengthen cooperation in Mekong Subregion. transport and economic with Southeast Asia, As a result of the GMS program since South Asia, as well as, Europe and Africa. the 1990s, many projects have been From the concept, China has pioneered the underway; especially for the development of expansive diplomatic, development by its road infrastructure and international bridges. high-speed trains. By the end of January, The crossing of both people and goods is 2015, China's import and export banks had more than the past. At the end of 2009, there subsidized 13 billion dollars to the projects, were 44 projects worth 11 billion dollars. which are 35 projects that export supplies to These are budgeted by governments to invest build the railway outside the country. These in development. allocate budgets to connect with countries in In several projects occur. There is a accordance with the one belt one road project significant project that delivers high-impact of China. (Yi Yuan, 2008: 7) to countries. The Greater Mekong sub-region In Southeast Asia, Lao PDR is the economic corridor is a project that creates country that China invests and supports the land transport to link trade and investment development of infrastructure with greater between groups of countries. Almost every investment especially the development of route pass through Thailand: the first route is China-Laos railway. A joint development the North-South Economic Corridor that took place in October, 2016, in Lao PDR. An connects southern Yunnan and Southeast agreement was signed between the Ministry Asia, the second route is the East-West of Public Works and Transport of Lao PDR Economic Corridor that is from Vietnam and the Ambassador of China to Lao PDR in through Thailand to Burma, and the third order to build railway in Laos under the route is Southern Economic Corridor that supervision of a Chinese company. The connects Thailand, Cambodia and Vietnam. construction of the railroad is valued at 6 (Sommai Chinnak, 2013: 66-67)

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billion dollars with a certain distance of 427 in special economic zones and link in the kilometers and expected to be completed in region effectively. 2021. The railway track is a size of 1.435 Those mentioned factors above have meters. There are 33 stations, 72 tunnels and changed the look of the border towns in the over 170 bridges required. Passenger trains past from a remote area with no facilities and run at 160 km/h while freight trains run at large investments to become the current 120 km/h. The railroad in Lao PDR will border town opposite from the past. The connect to Thailand. It is part of the railway border town as Mukdahan is now the place line that connects throughout the region, of the 2nd Friendship Bridge, which is called the Kunming-Singapore Railway. It linking Thailand to Laos. It is the way of the covers a total distance of about 3,000 km. the transit, and a passage of people and migrants. groundbreaking ceremony took place in Vientiane in December, 2015, to celebrate 3. CHARACTERISTICS OF NEW the 40th anniversary of the founding of the GEOPOLITICS AT MUKDAHAN– Lao PDR. China-Laos railway project is SAVANNAKHET BORDER related to One Belt One Road initiative by Mr. Xi Jinping, the President of China, with After all the factors mentioned above, the hope that the implementation of One Belt new geopolitics has been created in One Road will result good bonding and Mukdahan and Savannakhet. As a result, cooperation between China and the Lao PDR Mukdahan and Savannakhet changed in as well as ASEAN and China. Laos many aspects, such as cross-border trade, Government focuses on the project on capital investment and relocation, policy railway construction saying that it is an adjustment to facilitate investment, tourism opportunity to change Lao PDR from a development and the government’s role landlocked country to a land linked country adjustment: regulate to attract foreign and attract foreign investment and tourists to investment to both Mukdahan and the country. (Lao Phatthana Newspaper, Savannakhet. March 22, 2018) In the case of cross-border trade, the In Thailand, the Thai government has new geopolitics affects the trade of Thailand- started to carry the special economic zone Laos. The value increases as the data in forward to support the economic changes 2017: Mukdahan Governor’s Office claimed that have occurred in Lao PDR. It has been that in the first 11 months of the year found that there are 3 special economic zones (January-November), the trade value of in the Northeast: Nong Khai, Nakhon Thailand - Laos increased by 0.98 percent, Phanom and Mukdahan. There is the process totaling 185,171.82 million baht, compared of issuing investment rules to persuade with the same period last year worth investors to invest in special economic zones. 183,380.55 million baht. The top export The special economic development goods in Thailand are: Diesel fuel, cars and committee has been appointed to carry out other industrial products. The top imported the solid development in promoting the goods from Lao PDR are Electric power and benefits of investment, One-stop service, copper. Mukdahan has a border trade worth Establishment of measures to support the use at 62,053.45 million baht, and cross-border of alien workers and the development of trade valued at 49,690.74 million baht. infrastructure and customs facilities in the The data show that the new geopolitics area in order to be able to support activities of Mukdahan have increased international

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trade value. This is one of the factors that the This situation has the opinion of scholars Thai government is referring to as a who have studied in Mukdahan and found justification for creating a special economic out that it comes from the problems and zone. However, when the investment obstacles associated in the law and the characteristics of Mukdahan and benefits of investors who are still centrally- Savannakhet are considered, it is found that located in the local state, such as provincial Savannakhet has invested in special administrative organizations, municipalities economic zones rather than Mukdahan or provincial offices that cannot be self- because the Savan-Seno special economic regulatory because of the status of the Office zone has better investment rights than of the Prime Minister on special economic Mukdahan. Investors can invest their money. zone in 2013. It did not specify the details of There is the Office of Savan-Seno special authority to local authorities can decide by economic zone to support about the contract themselves. Local laws are less legitimate documents. These can be made within 5 than other laws related to the establishment working days since the government of Laos of special economic zones such as land law, has given the power to the executive of the environmental law, and investment economic zone can decide to invest promotion law. The local authorities cannot immediately. (Tee Chee Seng: Interview, decide. (Sompong Sirisoponsilp and 2018) This is very different from the followers, 2015) Mukdahan special economic zone, where the For Infrastructure development, power of decision is still at the special Mukdahan province has developed a solid economic development committee. This is an infrastructure, which is the development of a important factor that delayed the route linking Ubon Ratchathani - Amnat development of the Mukdahan special Charoen - Mukdahan - Nakhon Phanom. economic zone. In addition, the city plan to This will make the transportation more invest is still in the planning process. On convenient. May 22, 2018, The Government organized a Route no. 212 is a road that links the forum to listen to the opinions of people and provinces along the Mekong River in the entrepreneurs. The comments in the forum Northeast from Ubon Ratchathani through will be brought to change the city again. The Amnat Charoen - Mukdahan - Nakhon unfinished process is another factor that Phanom - Bueng Kan - Nong Khai – Loei. It delayed the implementation of the Mukdahan is a major tourism development along the special economic zone project. The problem Mekong River in the Northeast. Nowadays, of urban planning is consistent with the the development of the road from Ubon investment decisions of investors because Ratchathani to Mukdahan has been they are not confident in the government and developed as a four lane road. Is passes the obvious time to proceed with the through the Mukdahan province to the investment. Mukdahan special economic junction to . It is a zone also has problems with land prices. The developing point, changing from 2 lanes to 4 price of land in the area declared as a special lanes, and there is a three-way intersection economic zone is more expensive. As a which leads to province result, investors have not decided to invest in within 60 kilometers. The traveling from Mukdahan. (Sajja Wongkittithon: Interview, Mukdahan to Nakhon Phanom is more 2561) convenient because it is a 4-lane road from

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That Phanom district to Nakhon Phanom special economic zone, . The province. It takes less than 40 minutes to district is one of the areas designated as travel. special economic zones, forest conservation areas, and BOI-supported. Tourism development has not been affected by the economic crisis. Factor that has not yet been affected is the investment in the special economic zone of Mukdahan is delayed. For example, the industrial estate asks for a large area of about 426.87 acres in Kham A Huan sub-district for investors. However, it appears that there are no investors asking for that. These reflect that the tourism sector in

Mukdahan special economic zone has not Figure 2: Route no. 212 (Ubon Ratchathani been affected by the announcement of the – Mukdahan – Nakhon Phanom) Special Economic Zone. However, in the tourism sector of the province, tourism has About the Infrastructure development of been developed to create new tourism Savannakhet, there is the development of the activities. As in Don Tan, the historical and road structure from Savannakhet city along environmental attractions of the district are the R9 route linking to Vietnam, Including being promoted, such as the Princess Mother the development of road no. 13 in downtown Park. It was the stronghold of the Thai army Savannakhet, which is the main road that in the struggle with the Communist Party in connects the north of Laos to the south of 1977-1981. It was the residence of Princess Laos, ending in Champasak district. Srinagarindra and it was the military Nowadays, road no. 13 has been improved. operations of General Prem Tinsulanonda in There is a street lighting system. This is a hundreds of acres. At present, Don Tan development of facilities to facilitate the district has a plan to develop it to be a tourist journey of people and goods. However, the attraction. The community is organized to development of Savannakhet's infrastructure divide the area responsible for each unit to is still limited, especially the route along develop tourist attractions, including planting Mekong River. If you look at the trees, location improvement, hoping that it development of tourism that links Thailand- will be a new tourist attraction in Don Tan Laos along the Mekong, the delay in the district. It can attract tourists from the development of Lao infrastructure is one of province of Mukdahan and neighboring the factors contributing to the delayed provinces to visit and stay in Don Tan. development of the cooperation between (Nopporn Sangkampra: Interview, 2018) provinces and districts along the Mekong In addition to Princess Mother Park, river. there is a Dong Son drum in Don Tan district For tourism development, the tourist as an attraction. Visitors can take photos and attractions in Mukdahan are improving, such see details. If tourists are not aware of local as Phu Manorom temple and Nouhak history, they may come to visit but do not museum. Some is under improvement, such understand the significance of the drum as Kaeng Kabao, a tourist attraction in the because there are no local guide and

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information. It is one of the weaknesses of 2017. Inside the museum, there is a story the tourism development in Don Tan District. history of Mr. Nouhak. There is a flower There is no label presenting the current garden around the museum, and scenery of information. The author went on a fieldwork Mekong River. Not far away from the and found the sign of Tourism Authority of museum, there is an attraction along the Thailand “a group of fun” but it was Mekong River commonly held during March damaged and not updated. Along the road and April of each year called "Manopirom 2034 before entering the city of Don Tan, Beach", a sandy beach along the Mekong there are important natural attractions of River in the dry season. It can be a tourist Mukdahan. Phu Pha Thoep National Park attraction for swimming and picnicking. The The park is characterized by the appearance author found that there are mostly Thai of rock, the visitors are shown the beauty of visitors. It is easy to travel there but there are nature. Traveling to Phu Pha Thoep National some problems in trafficking because there is Park requires a guide to educate tourists. only a small road to the parking lot. It might From the fieldwork, the author found that the cause an accident by drunken tourists. park has prepared staff to provide knowledge and photography services. According to the interviews, the park has a concept to develop 5. TOURIST ATTRACTIONS IN WAN a bike trail linking Phu Manorom temple. YAI DISTRICT, MUKDAHAN The temple is located near the park and the route is preliminary. It is a mountain bike Along the road no. 3015, there is a route that connects the Phu Pha Thoep to the significant attraction of Mukdahan which is area of Phu Manorom temple. “Our Lady of the Martyrs of Thailand Shrine”. It is a Christianity attraction about 4. TOURIST ATTRACTIONS IN the history of people in Wan Yai district. It is MUANG MUKDAHAN DISTRICT a sandstone shrine that has been recognized to its beauty. It is suitable for tourists who The road no. 3015 is a road along are interested in learning the integration of Mekong River. Mukdahan has developed a the belief between and Christianity. The standard route for public transportation from caretaker said that in the marriage ceremony Muang district to Wan Yai district. It is easy of the people, even it was held in a Christian to Travel to , Nakhon ceremony but there is also a traditional Phanom province. There are a number of northeastern ceremony. Nowadays, museums important tourist attractions along the road, are built to store traditional tools for the such as historical sites "Museum of Nouhak people who come to pay homage or to learn Phoumsavanh", a former President of Lao about local history. Wan Yai district is also PDR. There is a story that his hometown was the location of the "Kaeng Kabao", the in Mukdahan. There was an investigation of natural attractions that presents the the traditional pillars of the house and found characteristics of the rapids along the that was his home. Subsequently, the Mekong River. Tourists can go down to the province has begun to coordinate with his rapids and go rafting. The rapids can be seen family in Thailand a Lao PDR to develop the clearly in April. Kaeng Kabao is not only house into a museum and it was opened in known for an attraction, but it is also known

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for a great barbecued suckling-pig. During are entering the labor force of the 15-year- 2016-2017, Kaeng Kabao was funded to olds. The number of the labor force increased make the scenery more beautiful, such as the from 2015 since the announcement of the viewpoint of the Mekong River, the statues special economic zone from 10,345 to of ancient tribes in Mukdahan, including an 23,843 people in 2017. This means each exercise area for the general public and household has members to earn money for tourists. their families. However, when considering For traveling in Savannakhet, the author household debt compared with the average of travel for information collection. According the country's average of 177,128 baht per to the interviews, the district has explored household per year, it was found that new tourist attractions but there is no budget households in Mukdahan had a high debt for the development of facilities. The district burden, like the households in other also offers important tourist attractions such provinces. Based on the statistics provided as the Dinosaur Museum, the famous by the author, it is important to understand historical attractions in Savannakhet. It that the new geopolitical economic state of shows traces of the appearance of largest Mukdahan is an important factor in the creatures in the world, and the ability of Lao evacuation of the labors. At the same time, and French archaeologists that found such there are more migrant workers in the many traces and evidences. There is also a province. However, some migrants are not museum in Savannakhet, located in a French- legally registered, especially the case of the style building. Inside the building, there are migration of Lao workers who come to work stories and events about Indochina War and in Thailand. The Thai government has made Liberation War. It tells the story of the past it possible for workers to register legally. of the heroic struggle of Laos who jointly However, the results of the study indicate fought to expel Japan, and the United that labor registration remains limited. The States. There is a religious attraction, which number of registered workers is small and is Phra That Ing Hang. It is about 13 the process takes time. This reflects the fact kilometers from the city along the road to that the transition to the Mukdahan and Ban Phonsim. Phra That Ing Hang is the twin Savannakhet special economic zones does relics of Phra That Phanom in Thailand. not create much value for the people of There are the relics inside. It was restored Mukdahan and Savannakhet. during the era of Lan Chang Kingdom and French colony. In summary, the geopolitics of the 6. CONCLUSIONS border city of Mukdahan and Savannakhet affects trade, investment and tourism. The In conclusion, this article suggests that power of the state and capital is an important the special economic zone of Mukdahan has factor in creating a new geopolitics for the not progressed as planned. One caused by the store business, business services, and issuance of regulations is still being household expenditures. According to the determined centrally. The Thai government fieldwork, the author found that the daily has not been flexible in the rules and spending of Mukdahan people is still high. regulations. So, the local authority in The National Statistical Office reported that Mukdahan special economic zone has not yet the 99,556 households have a high cost of come to fruition, unlike the Savannakhet living at 17,021 baht per month, even if they Special Economic Zone With continuous

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development. Lao government delegates changing landscape of the state, in particular, decision to entrepreneurs. It empowers the policy of South China. It has a great investors to make decisions and make influence on the Lao government. This will promissory notes under the management affect Thailand inevitably in the near future. authority of the special economic zone. This In addition, in terms of academic analysis, difference reflects the flexible characteristics understanding the neoliberal of The Mekong of Neoliberalism between the two cities, but Basin in Isan-Lao, the author concludes that it has changed to the selected plurality of the scholars in the Isan study group requires power. There are different types of variations the analytical space and the exchange of as appropriate to the economic characteristics knowledge to present the main characteristics and political society at that time. As in the of the new state authority that does not reject case of the special economic zone of capitalism but modify and shape to serve as Thailand and Laos, they use their own power part of a fully capitalist system. to support the management of elite authority. In Thailand, the power of special economic zone management is stuck to the central. Lao REFERENCES PDR gives full power to executive authority. This kind of power affects the Jittipat Poonkham ( 2017). Geopolitics. development of the area and the way of life Open-world Press, : 10. of people. However, the impact in some Yi Yuan (2015). Development of High Speed areas does not happen quickly, for example: Trains of China and International in the tourism of Mukdahan province that the Relationship. China Education Booklet, author presented in this article. The study of Volume 15, International College the border shows that tourism in Mukdahan Preedee Phanomyong, Thammasat special economic zone is only counted to be University. Bangkok. a special economic zone that looks light, not Piyabutr Saengkanokkul (2010). The too harsh Due to the large dimension of trade Exemption States under Concept of and investment. One of the experiences of Giorgio Agamben. Same Sky, Vol. 8 the state found that when the state has a No.1 (January-September). Bangkok:84- policy to support capitalism, it is often 91. opposed by a number of people. is often Sommai Chinnak (2013). Dynamical Social opposed by a number of people. They are and Culture in Makong river regions: scared of the consequences. However, on the from the Point of View of Rural issue of tourism in Mukdahan special Humanist. Ubon Ratchathani University, economic zone as the author have suggested, Ubon Ratchathani. the present is not affected by the special Sompong Sirisoponsilp and et.al. (2015). economic zone. The key condition is: Master Plan Project for Developing Mukdahan special economic zone has not Special Economic Zone in Nong Khai, been able to fully implement the plan, which Nakhon Phanom and Mukdahan means that no investor has submitted an offer Provinces. The Thailand Research Fund to invest in the area. (TRF). Bangkok. In academic terms related to geopolitical concepts, the author suggests that the academic study in the border of Mekong needs to be more interested in studying the

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INTERVIEW

Mr.Tee Chee Seng, General Manager of Savan Seno Special Economic Zone [interviewed: June 4th, 2018] Mr. Sajja Wongkittithon, President of the Mukdahan Tourism Industrial Association [interviewed: June 4th, 2018] Mr. Noppon Saengkhampra, Permanent Secretary of the Administrative Organization of Don Tal [interviewed: April 20th, 2018]

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