Collateral Damage The Legacy of the Secret War in Laos

Abstract

We investigate the long-term impact of conflict on economic development, focusing on the US ‘Secret War’ in Laos (1964-1973). We show that regions heavily bombed during the conflict experienced lower economic development, even 50 years after it officially ended. Our research employs multiple empirical strategies and data on bombing campaigns, satellite imagery, and development indicators. A one standard deviation increase in bombing intensity decreases GPD per capita by 7.1%. We demonstrate the persistent effects of bombing campaigns on human capital accumulation, structural transformation, and migration patterns, stressing the role of Unexploded Ordnance (UXO) contamination as the primary mechanism of transmission.