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Economic Land Concession
                       and Its Impact on Local Livelihoods in Kampong Speu Province
                                                                      1               1                                              2
                                                   Chea Chev , Mom Seng and Jean-Christophe Diepart
                                                                  1
                                                             Graduate School, Royal University of Agriculture
                              2
                                Department of Economics and Rural Development, University Faculty of Agricultural Sciences, Gembloux, Belgium

Abstract: The results indicated that the ELC development in case of Choam Sankae commune has hugely negative impacts resulting in the loss of access to land and
natural resources which are the primary assets for the entire means of the local livelihoods, 29.62% are landless household whiles 36.67% hold less than 0.5 ha per
household and most of the respondents have more difficulty to find firewood because of company protection. The purpose of ELC is to develop intensive agriculture
and agro-industry. By the end of the study period; only an estimated 2-3% of total granted lands have been planting and 1.33% of local eligible labour-force have been
employed. The lack of skills and formal training is preventing them from getting opportunities to adjust to the rapid changes. An estimated 62.5% of households have
migrated for jobs with higher risks and low income. In conclusion, local people were not well-prepared for the land transformation; an issue that should be taken into
consideration on policy discussion on the role and strategy of land concession if it is to make any significant contribution to pro-poor development.


                             Introduction                                           Figure 1 Percentage of local active HH labors work on plantation

Over 80%, of the more than 10 million Cambodian currently living in rural
area, depend on land and natural resources to support their livelihoods.
Most are subsistent, relying on one crop (that is rice) every year, with fish
and other aquatic resources, and a range of forest products.
Development of private enterprise in form of Land Concessions granted to
forestry/agro-business has been suggested as a means of development and
poverty reduction in rural Cambodia. However; conflicts over land and nat-
ural resources are becoming a very topical issue in Cambodia. Around 25%
of the population do not have land for agriculture and this, according to the
NGO Forum’s report, is increasing by around 2% every year due to large
concession.
Objectives: To examine the necessary economic and social impacts of ELC             Table 2 Correlations between land and other factors
            development on local people’s livelihoods and to identify ad-
            aptation strategies.                                                                                                Paddy         Cow Migration
                                                                                                                              land size   number number         HH size
                                                                                    Paddy land size  Pearson Correlation              1    .463(**) -.422(**)    .248(*)
                            Methodology                                                              Sig. (2-tailed)                          .000      .000       .045
                                                                                                     N                              66          66        66         66
Sustainable livelihoods as a                                                        Cow number       Pearson Correlation            **
                                                                                                                               .463( )                    **
                                                                                                                                                 1 -.323( )          **
                                                                                                                                                                .322( )
conceptual framework of analy-                                                                       Sig. (2-tailed)              .000                  .008       .008
sis were reviewed which sup-                                                                         N                              66          66        66         66
                                                                                                                                    **          **
ported the implementation of                                                        Migration Number Pearson Correlation      -.422( )    -.323( )         1       .038
the research results.                                                                                Sig. (2-tailed)              .000        .008                 .762
                                                                                                     N                              66          66        66         66
A total of sixty-six (66) house-                                                    Household size   Pearson Correlation             *
                                                                                                                                .248( )         **
                                                                                                                                           .322( )      .038          1
holds were interviewed and oth-                                                                      Sig. (2-tailed)              .045        .008      .762
er qualitative methods consist of                                                                    N                              66          66        66         66
village resources maps, transect
walks, time lines, seasonal cal-                                                   Figure 2 Negative impacts of ELC based on farming system analysis
endar, observations and groups
                                                                                                       Nearly 70% holding                           Lost of grazing land
discussions were also applied to                                                                       HHs may complete-
understand five livelihood as-                                                                           ly lose access to
sets, coping strategies, history                                                                       land for agriculture
changes and resources map in
the area.

                                 Results
Table 1 The basis of local livelihood situation
                                       Phnom Cheas Doun Proung Total sample
Description                     Unit                                                                                                                6 cases of displace-
                                           village   village     selection
                                                                                                                                                     ment were forced
Average member per HH            Per         5.14     5.35          5.25                                                                           without compensation
Age active labor (18-60)          %         67.10     64.23        65.67
Average land size per HH         Ha          0.78     0.86          0.82
Average land per active labor Ha            0.335     0.308         0.32
Landlessness                      %         24.70     35.00        29.85
Accessing to credit ability       %         24.00     35.00        29.50                                      Note:           Direct impact
Saving group formation            %          0.00     27.03        13.52                                                      Indirect impact
Migration ability                 %         55.20     64.90        60.05           Loss of access to NTFPs            HH      Household             High number of la-
Cattle production (3-6 heads) %             58.00     54.00        56.00                 for daily use                                                bor migration


                              Conclusion
The concession has contributed to the loss of access to the land and natural resources which are heavily dependent upon by the rural communities. Nevertheless an
increasing number of ELCs are continued to be granted, further limiting rural communities’ access to land. Meanwhile very low number of the local workforce are
employed on the plantation. There is also poor communication and consultation with local communities, if any at all, it is very minimal with most decisions regard-
ing the concession taken at the central government level leaving the local authorities powerless.
In conclusion, in the case of study area, the ELC development model granted has proven not to be an effective way of promoting development that benefits the ma-
jority of Cambodia’s population. Instead it end up enriching a few and serving the interest of small group and foreign business: whiles compromising the livelihoods
and survival of rural Cambodian communities.

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Chev Chea, Poster Presentation

  • 1. Economic Land Concession and Its Impact on Local Livelihoods in Kampong Speu Province 1 1 2 Chea Chev , Mom Seng and Jean-Christophe Diepart 1 Graduate School, Royal University of Agriculture 2 Department of Economics and Rural Development, University Faculty of Agricultural Sciences, Gembloux, Belgium Abstract: The results indicated that the ELC development in case of Choam Sankae commune has hugely negative impacts resulting in the loss of access to land and natural resources which are the primary assets for the entire means of the local livelihoods, 29.62% are landless household whiles 36.67% hold less than 0.5 ha per household and most of the respondents have more difficulty to find firewood because of company protection. The purpose of ELC is to develop intensive agriculture and agro-industry. By the end of the study period; only an estimated 2-3% of total granted lands have been planting and 1.33% of local eligible labour-force have been employed. The lack of skills and formal training is preventing them from getting opportunities to adjust to the rapid changes. An estimated 62.5% of households have migrated for jobs with higher risks and low income. In conclusion, local people were not well-prepared for the land transformation; an issue that should be taken into consideration on policy discussion on the role and strategy of land concession if it is to make any significant contribution to pro-poor development. Introduction Figure 1 Percentage of local active HH labors work on plantation Over 80%, of the more than 10 million Cambodian currently living in rural area, depend on land and natural resources to support their livelihoods. Most are subsistent, relying on one crop (that is rice) every year, with fish and other aquatic resources, and a range of forest products. Development of private enterprise in form of Land Concessions granted to forestry/agro-business has been suggested as a means of development and poverty reduction in rural Cambodia. However; conflicts over land and nat- ural resources are becoming a very topical issue in Cambodia. Around 25% of the population do not have land for agriculture and this, according to the NGO Forum’s report, is increasing by around 2% every year due to large concession. Objectives: To examine the necessary economic and social impacts of ELC Table 2 Correlations between land and other factors development on local people’s livelihoods and to identify ad- aptation strategies. Paddy Cow Migration land size number number HH size Paddy land size Pearson Correlation 1 .463(**) -.422(**) .248(*) Methodology Sig. (2-tailed) .000 .000 .045 N 66 66 66 66 Sustainable livelihoods as a Cow number Pearson Correlation ** .463( ) ** 1 -.323( ) ** .322( ) conceptual framework of analy- Sig. (2-tailed) .000 .008 .008 sis were reviewed which sup- N 66 66 66 66 ** ** ported the implementation of Migration Number Pearson Correlation -.422( ) -.323( ) 1 .038 the research results. Sig. (2-tailed) .000 .008 .762 N 66 66 66 66 A total of sixty-six (66) house- Household size Pearson Correlation * .248( ) ** .322( ) .038 1 holds were interviewed and oth- Sig. (2-tailed) .045 .008 .762 er qualitative methods consist of N 66 66 66 66 village resources maps, transect walks, time lines, seasonal cal- Figure 2 Negative impacts of ELC based on farming system analysis endar, observations and groups Nearly 70% holding Lost of grazing land discussions were also applied to HHs may complete- understand five livelihood as- ly lose access to sets, coping strategies, history land for agriculture changes and resources map in the area. Results Table 1 The basis of local livelihood situation Phnom Cheas Doun Proung Total sample Description Unit 6 cases of displace- village village selection ment were forced Average member per HH Per 5.14 5.35 5.25 without compensation Age active labor (18-60) % 67.10 64.23 65.67 Average land size per HH Ha 0.78 0.86 0.82 Average land per active labor Ha 0.335 0.308 0.32 Landlessness % 24.70 35.00 29.85 Accessing to credit ability % 24.00 35.00 29.50 Note: Direct impact Saving group formation % 0.00 27.03 13.52 Indirect impact Migration ability % 55.20 64.90 60.05 Loss of access to NTFPs HH Household High number of la- Cattle production (3-6 heads) % 58.00 54.00 56.00 for daily use bor migration Conclusion The concession has contributed to the loss of access to the land and natural resources which are heavily dependent upon by the rural communities. Nevertheless an increasing number of ELCs are continued to be granted, further limiting rural communities’ access to land. Meanwhile very low number of the local workforce are employed on the plantation. There is also poor communication and consultation with local communities, if any at all, it is very minimal with most decisions regard- ing the concession taken at the central government level leaving the local authorities powerless. In conclusion, in the case of study area, the ELC development model granted has proven not to be an effective way of promoting development that benefits the ma- jority of Cambodia’s population. Instead it end up enriching a few and serving the interest of small group and foreign business: whiles compromising the livelihoods and survival of rural Cambodian communities.