Strategy Document for a Labour-based Road Works Programme in Lao PDR Page 8

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1 Strategy Dcument fr a Labur-based Rad Wrks Prgramme in La PDR Page 8 Chapter 1 Intrductin 1.1 The Assignment Prject Backgrund Prject LAO/90/M01/FRG "Labur-based Rural Rad Cnstructin and Maintenance" aims t develp a lcal capacity within relevant technical ministries t cnstruct, rehabilitate and maintain rural rads using labur-based wrk methds supprted by light cnstructin equipment. Thrugh demnstratin sites lcated in varying tpgraphical cnditins, the prject has s far cnstructed and maintained apprximately 50 km f all-weather rural rads at maintainable standards in the tw prvinces, Savannakhet and Oudmxay. The prject has chsen t carry ut this wrk thrugh the prvincial rad authrities by prviding required training and direct n-site guidance. Based n the experience gained frm the rad wrks, the prject aims t develp a strategy fr the lng term sustainability n rural rads cnstructin and maintenance in La PDR. The prject was riginally funded fr a tw year perid by the Gvernment f Germany. Technical assistance has been prvided by the ILO thrugh a team f fur internatinal experts, cnsisting f a Chief Technical Adviser, an Assciate Expert and tw United Natins Vlunteers Scpe f Study This assignment has been cmmissined by the ILO t assist the prject in frmulating a strategy dcument fr labur-based rad wrks in La PDR, based n the experience gained frm prject LAO/90/M01/FRG. Mre specifically, this exercise attempts t (i) review current as well as previus experience with labur-based wrks in the rad sectr, and (ii) assess the ptential fr the use f labur-based technlgy in future rural rad wrks prgrammes, with the final bjective f assisting the La Gvernment in its effrts t effectively and efficiently manage and crdinate labur-based initiatives in the rural rads sectr. Furthermre, this dcument culd be f help in making an assessment f the prspects fr a labur-based rad wrks prgramme and f their cmmitment t such a prgramme. Based n the review f labur-based wrks in the cuntry, this reprt prvides the ratinale fr defining the cntributin this technlgy may have in the future develpment f rural rads in La PDR. In additin, this reprt utlines a medium-term plan fr a labur-based rad wrks prgramme, indicating in brad terms the resurces and cnditins required t effectively develp the rural rad netwrk in the cuntry. The riginal terms f reference are attached as Annex 1. The assignment was carried ut frm 20 Nvember t 30 December 1996 and included travel t Vientiane. The itinerary and wrk prgramme and the list f persns cnsulted are shwn in Annexes 2 and 3 respectively. This is an apprpriate mment t carry ut this assignment, as significant changes are currently taking place in the cuntry with regards t the Gvernment's pririties in relatin t rural infrastructure develpment. The dnr cmmunity has respnded t these changes and are nw in the prcess f shifting their attentin frm assistance t majr highway prjects t supprting the develpment f the rural rad netwrk. In this cntext, it is wrth mentining that three majr freign actrs in the La rad sectr, namely the Wrld Bank, Asian Develpment Bank and the

2 Strategy Dcument fr a Labur-based Rad Wrks Prgramme in La PDR Page 9 Swedish Internatinal Develpment Cperatin Agency are nw in the prcess f preparing majr supprt prgrammes t imprve rural rads in the cuntry Plan f the Reprt Befre cmmencing n the detailed issues relating t planning and implementing a labur-based rad wrks prgramme, it is imprtant t clarify the exact meaning and cntents f this technlgy. The remaining part f this chapter, prvides a general backgrund t, and definitin f, the technlgy. Furthermre, this chapter presents the general ecnmic situatin f La PDR, and cnditins prevalent in the rural areas as regards t infrastructure demand. Chapters 2 t 4 presents a brief review f past and current rad wrks where labur-based technlgy has been applied t imprve and maintain rural rads and the current psitin f the Gvernment and the dnr cmmunity t the technlgy and its relevance t the rural rad sectr. Labur-based rad wrks technlgy has s far nly been utilised t a limited extent in La PDR, mainly in pilt and demnstratin prjects. Hwever, the general experience frm these prjects indicate that there is large scpe fr the expansin f the technlgy t becme an integral part f the natinal strategy t upgrade the rural netwrk. Chapter 5 prvides a general assessment f this ptential as related t the verall demands fr imprvement f the rural rad netwrk in La PDR. In rder t successfully implement a labur-based rad wrks prgramme, it is imprtant t design wrk methds and prcedures, carefully taking int cnsideratin lcal cnditins prevalent in the cuntry and the prject areas. Based n past experience, Chapters 6 t 10 prvides detailed guidelines n technical, financial and rganisatinal issues imprtant fr a successful prgramme in La PDR. 1.2 Labur-based Methds - A Definitin Histry Mre than 80 percent f the ppulatin in La PDR live in the rural areas. Althugh La PDR is presently experiencing a significant ecnmic grwth, very little f this cntribute t the imprvement f the living cnditins in the rural areas. The rural pr are nt integrated in the natinal ecnmy, many are undernurished, illiterate and ill hused, and they are easy victims f flds, famines and epidemics. Traditinally, plicy makers in develping cuntries have been reluctant t see the ptential f making efficient use f the under- and un-emplyed labur in the prvisin f rural infrastructure. Ntable exceptins were sme Asian natins such as India, Pakistan, Indnesia and China, where labur traditinally has been used in all types f cnstructin wrks. Many develping cuntries, including La PDR, imprted cnstructin methds that made extensive use f heavy equipment. The reliance n equipment-based, high technlgy, cnstructin methds has evlved fr a number f reasns: the desire f pliticians and engineers t emulate the mre develped cuntries, the tendency amng internatinal cnsultants and cntractrs t favur cnstructin methds with which they are familiar, and the biases inherent in the tied-aid stipulatins f internatinal and bilateral assistance agencies, the cncern f the latter being t help exprts f their wn cuntries. A particular imprtant factr has been the educatinal backgrund f the technical leadership in mst develping cuntries. Often acquired in engineering schls that advcated the latest technlgy and prductin methds this backgrund cnditined planners and engineers t favur the use f heavy equipment in all circumstances. Equipment-based methds were perceived t have prductivities, csts and

3 Strategy Dcument fr a Labur-based Rad Wrks Prgramme in La PDR Page 10 perfrmance that were predictable; they were assciated with high quality results; and they were surrunded by an aura f technlgical prgress. Hence, the use f equipment in cnstructin was particularly attractive and in sme cases unavidable, since financing wuld nt therwise have been frthcming. At the same time, the substitutin f labur fr machines appeared t have negative cnntatins. Large numbers f labur are needed t apprach the utput f a single piece f equipment. Dubts were entertained abut the ability f unskilled wrkers t prduce high quality wrk. Laburers were regarded as being undisciplined, unruly, unreliable and cnsequently, requiring extensive supervisin. In sum, the extensive use f labur was judged t increase the risk f higher csts, t bring abut lnger cnstructin perids, and t prduce results f dubius technical quality. These risks tended t make public sectrs in mst develping cuntries - the frnt line f ptential users - resist the use f unskilled labur in cnstructin. Reliance n equipment has shwn t have sme disadvantages, hwever. It resulted in a technlgical dependence n the cuntries that prvided the equipment. Equipment-based peratins als entailed heavy expenditures f freign exchange. Such csts might be an unavidable burden fr urgently needed high technlgy prjects. But fr the cnstructin f smaller, mre scattered and technically less demanding rural prjects, pliticians and administratrs began t lk fr ways t put lcal resurces t wrk. If much f the wrk culd be dne by hand, the rural pr wuld nt nly receive the benefits f the finished prduct but wuld, in additin, secure the much needed incme frm its cnstructin, cnsiderable emplyment frm its maintenance, and a sense f participatin, civic pride and unity Definitin There are several categries f cnstructin prgrammes that use large numbers f unskilled labur: Relief Prgrammes respnding t natural r man-made catastrphes, (i.e. drughts, severe flds, war, etc). Their prime bjective is t prvide fd and incme t the affected individuals. Althugh such prgrammes may als imprve infrastructure, this is cnsidered as a by-prduct. Emplyment Generatin Prgrammes - These prjects give little attentin t cst and quality effectiveness. Once mre, asset creatin is a secndary bjective. Asset-Creatin Prgrammes - These attempt t imprve infrastructure at the lwest pssible cst, maintaining accepted quality levels and applying the mst apprpriate technlgy. Simultaneusly, they supply emplyment pprtunities in the rural areas, prviding supplementary cash incme t farmers. A sub-categry is self-help prgrammes, which are schemes that d nt pay wages t their wrkers, since the labur is regarded as the ultimate beneficiaries and wners f the created assets, and the prject is merely an attempt t assist them in helping themselves. This dcument fcuses n the planning and implementatin f the latter categry f prgrammes, and mre specifically, hw this type f prgrammes can be rganised in the rural rad sectr f La PDR. An "apprpriate" technlgy is defined as ne that is bth technically and ecnmically efficient fr a defined level f quality. Thus, apprpriate cnstructin technlgy exists ver the entire range f methds. In each case, the apprpriate mix f labur and machines will be determined by the technical nature f the prject, available resurces, prevailing prices and the sci-ecnmic envirnment in which the prject is executed. The labur-based apprach starts frm the psitin that labur is a relatively abundant and cheap lcal resurce during large perids f the year, if nt thrughut the year, and thereby seeks t

4 Strategy Dcument fr a Labur-based Rad Wrks Prgramme in La PDR Page 11 determine the mst apprpriate wrk methds. T avid a cmmn miscnceptin, it is imprtant t distinguish between labur-based methds and labur-intensive methds. In cntrast with labur-based technlgy, the labur-intensive apprach seeks t maximise the use f labur with minimum use f mechanised equipment, ften at the expense f cst and quality efficiency. Labur-based technlgy can be defined as the cnstructin technlgy which, while maintaining cst cmpetitiveness and acceptable engineering quality standards, maximises pprtunities fr the emplyment f labur (skilled and unskilled) tgether with the supprt f light equipment and with the utilisatin f lcally available materials and resurces. 1.3 The Latian Cntext General La PDR is distinguished tpgraphically by a very muntainus area extending nrth and suth thrughut mst f the cuntry and a small area f lwland n the suthern and suthwestern brders. The muntainus area, which cvers abut nine-tenths f the entire cuntry, can be divided int a nrthern sectin f heavily frested muntain ranges and plateaus cut by deep, narrw valleys and grges and a suthern sectin cntaining mre sparsely frested limestne terraces. As a result f this rugged terrain and lng distances between settlements, internal and external cmmunicatins becme difficult and cstly. The main climatic features are determined by the mnsns. The wet summer seasn prevails frm abut May t Octber, with rainfall averaging abut 1780 mm, and a dry cl seasn extends frm abut Nvember t February. The remainder f the year is ht and humid. La PDR is a landlcked cuntry with mst f its natural resurces unexplited r unsurveyed. The ecnmy remains small and undiversified, with a per capita incme estimated at abut US$ 335, making it ne f the least develped cuntries in the wrld. The ecnmy is dminated by agriculture which accunts fr abut 60% f GDP and tw cmmdities (timber and electricity), prviding abut 70% f exprt earnings. As such, the ecnmy is vulnerable t climatic cnditins and external factrs beynd the Gvernment's cntrl. This, cupled with a weak human resurce base, presents the cuntry with a majr challenge t develpment. Amng Asian cuntries, La PDR has ne f the mst undevelped rad netwrks. During the past nine years, La PDR has been investing between US$ 20 and 45 millin annually in rad rehabilitatin. While these investments are sizeable in terms f ttal capital budget f the Gvernment, the effect n the verall length f the rad netwrk has been limited. The past decade's investments have added apprximately, 200 km f imprved new rads each year, i.e. abut 2 % f the natinal and prvincial rad netwrk. With few exceptins, rad imprvement wrks has mainly been fcusing n establishing a functinable trunk rad netwrk in the cuntry. The main emphasis f these investments has been n tw majr cmpnents, (i) Rad 13 frm Pakse in the suth t Pakmng in the nrth and (ii) in rads

5 Strategy Dcument fr a Labur-based Rad Wrks Prgramme in La PDR Page 12 prviding access t the rich agricultural and densely ppulated area n and arund the Blavens Plateau in the suth. Until recently the prvincial and district rad netwrk has received little attentin Rural Access Islatin is a fundamental cause f pverty. Islatin is reflected in the lack f access f the ppulatin t gds and services. If the ppulatin has n access t basic services such as water supply, health and educatinal services, they will even be unable t satisfactrily meet their basic needs. In additin, lack f access t, r islatin frm, technlgy, agricultural inputs, markets and utlets fr cash crp prductin means that there is neither the incentive nr the capability t generate ecnmic surplus. Mrever, lack f access t infrmatin and t available gvernment services means that the ppulatin is cut ff frm the mainstream f ecnmic and scial develpment in the cuntry. The imprtant pint here is that lack f access is a majr factr cntributing t the cntinuing pverty f the rural ppulatin. Majr effrts are nw being undertaken t imprve the scial and ecnmic situatin in the cuntry. Nevertheless, it is vital that the prblem f access is tackled in a cmprehensive and integrated manner. Therefre, a shift in emphasis twards imprving and maintaining prvincial, district and ther rural rads is justified. Rad infrastructure is limited and where it des exist, it is prly maintained, causing a serius cnstraint t ecnmic and scial develpment. That being said it shuld be recgnised that in the prer prvinces, the immediate ptential fr ecnmic develpment is als limited. Mst husehlds barely prduce enugh rice t be self sufficient. Rads cannt, in the first instance, lead t significant increases in incme. The immediate benefits are likely t be imprved access t health and educatin. Hwever, withut prper rads, it is difficult t prvide the basic scial services which may in the secnd rund result in increased scial and ecnmic develpment. Rads therefre are a necessary but nt sufficient element in rural develpment in La PDR. These rads culd als cntribute directly t the benefit f the rural ppulatin thrugh the use f laburbased methds.