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Commentary on ‘The economics of landmine clearance: case study of Cambodia’

✍ Scribed by Ted Paterson

Publisher
John Wiley and Sons
Year
2001
Tongue
English
Weight
66 KB
Volume
13
Category
Article
ISSN
0954-1748

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

A recent cost‐benefit analysis of landmine clearance in Cambodia (Harris, JID 12(2), 2000) reported a net present value (NPV) of minus $3,434 million, and concluded landmine clearance using existing technologies is not economically justified for Cambodia. Professor Harris suggested higher returns would accrue to investments in de‐mining technology, while aid funds for landmine clearance should be reallocated to meet other development objectives. However, the methodology used massively overstates the present value of de‐mining costs while the estimated benefits are far too low. More fundamentally, the specification of the model makes it suitable only for an ‘all‐or‐nothing’ decision whether to rid Cambodia entirely of landmine contamination, and does not allow the analysis of targeted clearance of priority land. With appropriate adjustments, the economics of landmine clearance in Cambodia are not bleak, and may well yield positive rates of return in NPV terms. Copyright © 2001 John Wiley & Sons, Ltd.

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