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ABSTRACT
Laos has launched ambitious plans on poverty reduction greatly by developing hydropower in the mainstream of the Mekong River. However, upstream dam construction may result in salt water intrusion followed by ecology deterioration of downstream countries in a transboundary river context. These potential impacts could worsen economy and social growth, ecology security, and residents’ lives to downstream states. Furthermore, diplomatic crisis may be triggered if all stakeholders do not handle the conflicts properly. In this study, dilemmas of hydropower development in Laos are analyzed from policy perspective. Various factors constraining hydropower exploration are identified. Results indicate that the Lao government is confronted with numerous stressors from the mechanism of the Mekong River Commission and other organizations in hydropower development. Laos should adopt multiple approaches to shake off the current dilemmas rather than pursue a unilateral policy on dam construction in the Mekong River.