Agricultural modernisation and rural livelihood strategies: the case of rice farming in Laos

ABSTRACT This article examines how agricultural households in Laos have been affected by policies designed to transform agriculture from a subsistence-oriented sector into a dynamic and competitive one through intensification and commercialisation, and how the livelihood strategies of these households have in turn affected the modernisation goals established by the government. While overall rice output in Laos has grown significantly over the past few decades, market institutions related to the rice sector remain critically weak, and pervasive coordination failures are a disincentive to farmers to change their livelihood strategies. A more active government role, to improve market coordination, is needed for a successful modernisation of the sector.