Journal ofJSAM 70(6): 59～68,2008 Research Paper Engineering Aspects of Farm Mechanization and Institutional Systems in Laos (Part 2) -Local Features of Socio-economic Characteristics for Irrigated Farming- Khoune SACKBOUAVONG*1, Masayuki KOIKE*2, Tomohiro TAKIGAVVA*2 Abstract This paper deals with local socio-economic characteristics including production cost, household income, the characteristics of farming systems and some institutional aspects with specific reference to the development of farm mechanization. The profitability of rice cultivation at the study site has been discussed extensively. It can be pointed out that the net income per ha was too small to make the best use of machine power feasible on a household basis. The hiring of labor from neighboring farmers or requesting contract-hire services has popularly been done in the form of conventional farming practices. After a standstill in the use of draft animals, farmers laid aside farming implements, excluding small farming tools. Although irrigated farming systems were practiced, cultivating and harvesting operations still partly followed the traditional cooperative methods involving human labor. This was likely based on the insufficient availability of mechanized power. The issues related to the institutional aspects of farming also involved the further acceleration of technology dissemination. [Keywords] socio-economic characteristics, institutional systems, technology dissemination, farm mechanization, Laos Ⅰ Introduction Only a few local manufacturers of farm machinery are currently assembling various types of machines including four-wheeled tractors, modified walking- type tractors and other agricultural farming tools in Laos. Their manufacturing volumes remain on a modest scale. The difficulty of developing well-managed manufacturers was probably due to the lack of accu- mulation of technological know-how and to institu- tional disabilities (Nippon Koei Co., Ltd. et al., 2001). On the contrary, the small-scale enterprises, i. e. cot- tage industries that could produce the basic farming tools and equipments, were found in engaging their manufacturing business upon customers' request. When socio-economic characteristics become the focus of our attention, both household economy and communal environments become pressing issues to be discussed. However, sustainable agriculture may be affected by economic factors to some extent, and farmers' behavior may also be affected by individual mentality and social environment. In accordance with the large-scale regional develop- ment along the Mekong River, the economic situation is changing at a fast pace even in rural communities. However, certain clusters of people are left behind in the march of progress (Le Coq, 2005). Observing the reactions of people to such progress can help us un- derstand intricate and entrenched problems such as the economic gap among inhabitants. Accordingly, this study intended to analyze the current socio- economic characteristics relating to the promotion of particular farm mechanization at the study site. This approach might be useful to clarify the structure of the household economy in connection with efficient machine use. The objectives include (1) To study the socio-economic characteristics in- cluding farming systems in view of the technical aspect, production cost and household income of local farmers. (2) To scrutinize the dynamic mechanisms of insti- tutional systems regarding technology transfer to the local inhabitants. Ⅱ Methodology With the help of local officials, we contacted 18 farmers whoconsented to interviews, including avil- lage chief and several senior persons at the same study *1 JSAM Student Member, Corresponding author, Graduate School of Life and Environmental Sciences, University of Tsukuba, 1-1-1 Tennodai, Tsukuba, Ibaraki 305-8572, Japan, Tel 029-853-4912; *2 JSAM Member, Graduate School of Life and Environmental Sciences, University of Tsukuba, 1-1-1 Tennodai, Tsukuba, Ibaraki 305-8572, Japan