Opium and the Karen: A Study of Indebtedness in Northern Thailand

This paper examines a system of economic relations in Northern Thailand linking Karen and Hmong communities in the western highlands with traders from the lowlands. I shall describe the salient features of this tripartite system as it existed in the late 1960s and argue that it was essentially a product of opium cultivation and commerce. I also argue that it contributed towards a serious level of indebtedness among Karen and that this indebtedness tended, in turn, to widen wealth differences in Karen communities. Finally, I shall consider some of the economic changes that have led to a breakdown in the system i n recent years.