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Subject

Laos's dam-building ambitions.

Significance

Laos on August 7 suspended approval of new hydropower projects, following the collapse of a dam in the Mekong river basin late last month. The government has ordered an inspection of all existing hydropower facilities as it looks to demonstrate transparency and avert a social and environmental backlash. China and the four-country Mekong River Commission (MRC), comprising Laos, Cambodia, Thailand and Vietnam, seek to manage the river basin’s resources and development.

Impacts

The increasing calls for transparency will translate into greater social pressure to improve regulation and safety standards.

The government may face environmental protests, though any dissent will be quickly suppressed.

China is likely to exploit divisions between Mekong countries to serve its interests in the Mekong sub-region.

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