Abstract

The Lao Government supports different development strategies for the improvement of rural livelihoods within the country. In order to understand the deep transformations effected by these strategies, it is necessary to analyse their impact from the emic perspective of the target groups. As an important "gate to modernity", a source of luxury goods, and an entrance to education and modern health care, the new Highway No. 3 plays an increasing role in the daily lives of the Khmu in Northern Laos. This paper deals with the question, in which way modern structures and institutions are used to enhance people's spiritual and economic well-being. It argues that the Khmu are able to localize the impact of the highway to enhance their lives without losing their own cultural identity.

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