The economics of landmine clearance: case study of Cambodia

✍ Scribed by Geoff Harris

• Publisher: John Wiley and Sons
• Year: 2000
• Tongue: English
• Weight: 82 KB
• Volume: 12
• Category: Article
• ISSN: 0954-1748
• DOI: 10.1002/(sici)1099-1328(200003)12:2<219::aid-jid638>3.0.co;2-m

✦ Synopsis

This paper identi®es and prices the costs and bene®ts of locating and dealing with landmines in Cambodia, one of the world's most heavily mined countries. The three main bene®ts are the saved costs in terms of human productivity, medical treatment and foregone agricultural production. The annual costs of completely de-mining the country over 25 years are estimated to be $US140 million whereas the annual bene®ts are only $0.7 million. Using a 10 per cent discount rate, the total de-mining expenditure (in present values) of $3,500 million would result in a net present value of À$3,434 million. An alternative set of assumptions, including a halving of the costs of de-mining over 25 years, produces net present values of more than À$400 million. These results have at least two important implications: there is crucial need to bring down the cost of demining and policymakers concerned to maximize the welfare of the Cambodian people should consider alternatives to de-mining.