The Day Does Not Exist When We Will Forget: Humanitarian Demining and Economic Development in Laos

Abstract

Modern warfare features intensive use of explosive and incendiary weapon systems. Unexploded ordnance from these weapons can remain dormant and restrict productive land-use in conflict zones for decades. Humanitarian demining organizations safeguard affected communities and promote economic recovery by clearing these explosive remnants of war. This paper evaluates the economic impacts of demining in Laos-one of the most heavily bombed countries in the world during the Second Indochina War (1965-73). Using a market access framework, I demonstrate that demining is associated with positive spatial spillovers on nightlights and population size in villages connected via the transportation network. Next, a heterogeneity-robust difference-in-differences design is applied to identify the causal impacts of mapping and clearing local hazardous zones on economic activity. Finally, a policy-driven, spatial regression discontinuity design is exploited to investigate the mechanisms through which humanitarian demining promotes economic development. Results indicate that demining significantly reduced poverty and disability rates, increased rice paddy cultivation and cleared land for road network expansion. Five decades have passed since hostilities ceased in Laos, however complete clearance remains a distant target. This paper aims to contribute robust evidence on the critical importance of international humanitarian aid in promoting economic recovery in a war-torn, least developed country.

Keywords: humanitarian mine action, nightlights, market access, poverty, land use

JEL Classification: I3, N4, O4, O53, R1