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The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR

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The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR Stuart Ling Bachelor of Science (Forestry), Australian National University, 1990 Graduate Diploma in Resource Economics, UNE, 1996 A minor dissertation submitted for the degree of Master of Economics Graduate School of Business, UNE Business School University of New England, Armidale NSW Australia October 2015 1 The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR Certification I certify that the substance of this dissertation has not already been submitted for any degree and is not currently submitted for any other degree or qualification I certify that any help received in preparing this dissertation, and all sources used, have been acknowledged in this dissertation Stuart Ling 2 The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR Acknowledgements I would like to thank all those people who made this research possible. Firstly, to those staff of the Provincial Agriculture and Forestry Office in Bokeo who were my counterparts in this research and smoothed the way for me to connect with the various stakeholders. In particular I would like to thank the PAFO deputy Mr Khamsone Keopaseuth for approving this research, and Mr Alounsak and Ms Done for being such dedicated research assistants. Secondly, to the CAMKID Hmong team that conducted the interviews with the migrant households in Hmong language. Their professionalism put the respondents immediately at ease, and this is reflected in the quality of the information received. Thirdly my supervisor, A/Professor Rene Villano, who despite our distance apart has ensured that I have completed this thesis to my full potential. In particular, he helped to focus my approach when things were getting a bit too broad. Fourthly, to all those that agreed to be interviewed, and particularly to the Hmong farmers who took time out from tending their plantations, another big thank you. May bananas allow you to realise your dreams. Finally, of course to my wife, Vansy, and daughters Monica and Katrina. Your love has made this all possible. 3 The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR Abstract Chinese banana plantations in the northern Lao province of Bokeo have grown rapidly over the past few years and now cover over 11,000 hectares. This dissertation has researched one aspect of this boom by gathering information on the use of remittances from a sample of the thousands of ethnic Hmong households who have migrated to tend the plantations. Using multiple methods, this paper takes this underrepresented minority group, and through their own language, portrays their experiences of internal, circular and rural-rural migration. It is calculated that each labourer remits on average, 689 USD for a season’s work, which is comparable to the amounts earned by international labour migrants to Thailand. Most remittances were used for consumption purposes while investments in agriculture were low. The results suggest that migrating households are not intending to rely full time on farming for their future livelihoods, and that rather migration is part of a diversified livelihood strategy that both enables integration into the modern cash economy and reduces the reliance on meeting income needs from unproductive farms. The findings are therefore in accordance with the ‘new economics of migration’. Keywords: internal migration, circular migration, rural-rural migration, Hmong, remittances, Laos, banana 4 The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR Acronyms CAMKID Community Association for the Management of Knowledge In Development DAFO District Agriculture and Forestry Office DPI Department of Planning and Investment GDP Gross Domestic Product IOM International Organisation for Migration LAK Lao Kip LSWO Labour and Social Welfare Office PAFO Provincial Agriculture and Forestry Office THB Thai Baht USD United States Dollar Note on Exchange Rates Although the official Lao currency is the Lao Kip (LAK), this paper uses the Thai Baht (THB) as the reporting currency, since the banana companies and their workers use this currency, and quote this currency, when providing figures on payments made or received. At March/April 2014, one USD bought 32.3 THB, and in May 2015 one USD bought 33.5 THB. 5 The Use of Remittances by Circular Hmong Migrants to Chinese Banana Plantations in Bokeo, Lao PDR Contents Certification .................................................................................................................................... 2 Acknowledgements ........................................................................................................................ 3 Abstract .......................................................................................................................................... 4 Acronyms........................................................................................................................................ 5 Note on Exchange Rates................................................................................................................. 5 List of Tables ................................................................................................................................... 8 List of Figures.................................................................................................................................. 8 Preamble ........................................................................................................................................ 9 Chapter 1. Introduction................................................................................................................ 10 1.1 Historical context – Chinese investment and Bokeo ......................................................... 10 1.2 Rationale and statement of the research problem............................................................ 12 1.3 Research questions and overview of methodology........................................................... 14 1.4 Significance of this research............................................................................................... 15 1.5 Structure of the dissertation .............................................................................................. 15 Chapter 2. Literature Review ....................................................................................................... 16 2.1 Introduction........................................................................................................................ 16 2.2 Review of the concept/theory on labour migration .......................................................... 16 2.3 Labour migration in Laos .................................................................................................... 20 2.4 Related studies ................................................................................................................... 23 2.5 The niche in the literature.................................................................................................. 24 2.6 Research questions and hypotheses .................................................................................. 25 2.7 Conceptual framework....................................................................................................... 26 2.8 Chapter synthesis ............................................................................................................... 28 Chapter 3. Methodology .............................................................................................................. 29 3.1 Introduction........................................................................................................................ 29 3.2 Guiding assumptions .......................................................................................................... 29 3.3 Literature review on methodologies.................................................................................. 29 3.4 Researcher positioning....................................................................................................... 31 3.5 Approval processes ............................................................................................................ 31 3.6 Methodological steps for Stage One.................................................................................. 32 3.7 Methodological steps for Stage Two.................................................................................. 34 3.8 Strengths and limitations of the chosen methodology...................................................... 38 3.9 Chapter synthesis ............................................................................................................... 39 Chapter 4. Nature and Extent of Labour Migration to Banana Plantations ................................ 41 4.1 Introduction........................................................................................................................ 41 4.2. Nature of migration in Bokeo............................................................................................ 41 4.3 Total area of bananas and its economic value................................................................... 42 4.4 Labour requirements
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