This study was carried out in 1991 and focuses on socio-economic issues in connection with a Swedish road construction program. It demonstrates that road building in many respects has adverse social and economic effects on the rural population of the area. The questions it raises as to the beneficial effects of development aid for the common population of subsistence farmers may be relevant for issues in development anthropology in general. Swedish development aid to the Lao people"s Democratic Republic began in 1977 with cooperation in the forestry sector, and in 1987 the road transport sector was included in the Swedish aid program.