SBR- Content.pmd - INBO

State of the Basin Report - 2003This chapter describes the economic situation in each of the four riparian countries, focuses on thegeneral level of development and looks at how different sectors’ contribute to GDP. It concludes witha discussion of major macroeconomic trends that are likely to develop over the coming decade.As is the case in other chapters in this report, data on the national economies of Cambodia and LaoPDR can be considered representative for each country’s territory within the basin. Cambodia has86 percent of its territory within the basin, while Lao PDR lies almost entirely within the basin (97percent). The situation is somewhat different for Thailand and Viet Nam. Only some 36 percent ofThailand and about 20 percent of Viet Nam are included in the LMB. About 40 percent of Thailand’spopulation, but only 20 percent of Viet Nam’s, live in the LMB. Ideally a description of the economicsituation in the Thai and Vietnamese parts ofthe LMB should include data only for thesespecific regions. However, the data available for[[#micro_eco00127_3 - photo of women inconical hats holding up net, Viet Nam – JimHolmes, MRC PEOPLE photos, caption aboutpercentage of people involved in fisheries]]The Mekong’s fishery is one of the most productivefresh water fisheries in the worldboth countries are mainly national data.Although this is a drawback to some extent, itis important to keep in mind that economicdevelopment in the basin areas of Thailand andViet Nam is strongly influenced by economicdevelopment in the country as a whole. Nationaleconomic trends and policies in Thailand andViet Nam have strong influences ondevelopment on each country’s territory withinthe basin. Thus the use of national economicdata is relevant. It is also important to rememberthat economies are influenced by economic trends in the region and in the rest of the world. This isespecially important as countries develop beyond the level of subsistence and engage in trade andinternational commitments.1. Economic overview of the four riparian countries1.1 Differences in levels of developmentThere are major differences between the levels of economic development in the four countriesthat share the LMB. Thailand is by far the richest and most developed country. In recent years,Viet Nam has made a significant move forwards in industrialising, yet the level of poverty is stillhigh. Cambodia and Lao PDR are amongst the poorest countries in Southeast Asia. The livelihoodsof the majority of people in both Cambodia and Lao PDR are still largely based on subsistenceproduction derived from farming, fishing and foraging in wetlands and forests. The methods ofproduction are little developed, making thesepeople particularly vulnerable to naturaldisasters and adverse impacts that could arisefrom upstream development projects.The livelihoods of the majority of people inCambodia and Lao PDR are still based onsubsistence farming, fishing and foraging86