Monday, December 21, 2009

Mekong River, Vietnam

For years, in describing my ambitions for a career in economic development, one of my main examples of infrastructure projects has involved the Mekong River in Vietnam. When crossing the river from the port town Can Tho, Eric and I utilized the fleet of ferries shuttling overcrowded loads of people and cargo from one shore to the other. In the distance down river, we could see a massive bridge being built.

Ever since I saw this new bridge, I've thought hard about how the construction of a highway bridge would change traffic patterns and divert commerce away from Can Tho. When removing the ferries and the infusions of people and money passing through, business revolving around the port would disappear. The small roadside restaurants catering to truckers and ferry passengers, the market servicing these eateries, the households of those locally employed, the hardware stores, the mechanic shops, the river toll operators -- all would evaporate into thin air and send the town into economic depression. The money movement in this region, similar to any port or border town, would instantly stop and commerce in Can Tho would vanish. Although there are efficiency increases with extending the highway in Southern Vietnam, movement of people to other sectors of the economy does not represent perfect market mobility. Populations are not quick to react, as we've all seen in Detroit when their main industry fled. The bridge across the Mekong could devastate generations of Can Tho workers.

Planning is not just cut and dry economic models, it always pushes some political agenda deliberately choosing which groups to benefit. Therefore, as for an example of how under researched development effects regions, I often speak of the Mekong River to display the need to proper planning.

Yesterday, I stumbled upon a New York Times article describing how current developments on the Mekong River are changing local economies. For an academic standpoint, it's reassuring to see that my ideas were not so far fetched. From a social standpoint, this is depressing.


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