Environment, Development and Sustainability

, Volume 15, Issue 2, pp 301–324 | Cite as

An analysis of China’s investment in the hydropower sector in the Greater Mekong Sub-Region

  • Frauke Urban
  • Johan Nordensvärd
  • Deepika Khatri
  • Yu Wang
Article

Abstract

The Mekong River’s natural resources offer large benefits to its populations, but it also attracts the interest of foreign investors. Recently, Chinese firms, banks and government bodies have increasingly invested in large hydropower projects in the Greater Mekong Sub-Region. Due to China’s rapid economic growth, its rapid industrialisation and its limited domestic natural resources, the Chinese government has issued the ‘Going Out Strategy’ which promotes investments in overseas natural resources like water and energy resources. In search for climate-friendly low-carbon energy, cheap electricity and access to a growing market, Chinese institutions turn to Southeast Asia where Chinese institutions are currently involved in more than 50 on-going large hydropower projects as contractors, investors, regulators and financiers. These Chinese institutions have influence on environmental and social practices as well as on diplomatic and trade relations in the host countries. Currently, there are major gaps in understanding who is engaged, why, how and with what impacts. This paper therefore aims to assess the motives, actors, beneficiaries and the direct and indirect impacts of China’s investment in large hydropower projects in the Greater Mekong Sub-Region. The authors use the ‘Rising Powers Framework’ to assess these issues, which is an adapted version of the Asian Drivers Framework.

Keywords

China Mekong Hydropower Natural resources Investments Dams 

Notes

Acknowledgments

The authors would like to thank the UK’s Economics and Social Research Council for funding this work under the Rising Powers China Network (Ref: RES-075-25-0019). The authors are grateful to the participants of three workshops and for the fruitful discussions and presentations produced. Special thanks to Raphael Kaplinksy, Hubert Schmitz, John Humphrey, Dirk Messner and their colleagues for developing the Asian Drivers Framework which was an inspiration for this work. We would like to thank Peter Bosshard and Grace Mang from International Rivers for kindly providing access to their extensive database on Chinese dams.

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Copyright information

© Springer Science+Business Media Dordrecht 2012

Authors and Affiliations

  • Frauke Urban
    • 1
  • Johan Nordensvärd
    • 2
  • Deepika Khatri
    • 3
    • 4
  • Yu Wang
    • 5
  1. 1.Centre for Development, Environment and Policy (CeDEP), School of Oriental and African Studies (SOAS)University of LondonLondonUK
  2. 2.London School of Economics and Political Science (LSE)LondonUK
  3. 3.Institute of Development Studies (IDS)University of SussexBrightonUK
  4. 4.IT for ChangeBangaloreIndia
  5. 5.Institute of Energy, Environment and EconomyTsinghua UniversityBeijingChina

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