Laos hopes for economic boost from Chinese-built railway

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A new $6 billion Chinese-built railway line opens in Laos this week, bringing hopes of an economic boost to the reclusive nation, but experts are questioning the benefits of a project that has seen thousands of farmers evicted from their land.

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His farm usually produces up to two tons of the red heart-shaped fruits a year, but the pandemic has hit the 2021 harvest hard. Infrastructure-poor Laos, a reclusive communist-run country of 7.2 million people, previously had only four kilometers of railway tracks. And while the railway could boost tourism, freight and agriculture, according to a World Bank report, the government needs to undertake substantial reforms, including improving border clearance processes.

Pre-pandemic young nomads crammed on to buses at Vientiane for the four-hour ride to adventure capital Vang Vieng -- a journey that will now take about an hour by train. Two-thirds of Laotians live in rural villages toiling on the land, and the minimum wage is around $116 a month -- a reported $13.30 train fare from Vientiane to the border town of Boten has attracted some social media criticism for being too expensive.

 

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