Laos Information travel guide

Private enterprise has increased since the mid-1980s, but development has been hampered by poor communications in the heavily forested and mountainous landscape. of those employed practice subsistence agriculture. The country's ethnic make-up is extremely diverse, with only around 60% belonging to the largest ethnic group, the Lao.

Laos, officially the Lao People's Democratic Republic, is a landlocked socialist republic in southeast Asia, bordered by Myanmar (Burma) and the People's Republic of China to the northwest, Vietnam to the east, Cambodia to the south, and Thailand to the west. Laos traces its history to the Kingdom of Lan Xang or Land of a Million Elephants, which existed from the fourteenth to the eighteenth century. After a period as a French colony, it gained independence in 1949. A long civil war ended when the communist Pathet Lao came to power in 1975.

Private enterprise has increased since the mid-1980s, but development has been hampered by poor communications in the heavily forested and mountainous landscape. of those employed practice subsistence agriculture. The country's ethnic make-up is extremely diverse, with only around 60% belonging to the largest ethnic group, the Lao.

Terminology

The country's name in the Lao language is "Muang Lao". The French, who made the country part of French Indochina in 1893, spelled it with the "s" which is usually retained in the spelling and pronunciation of the English name (pronounced as one syllable). The usual adjectival form is "Lao" (as in "the Lao economy"), not "Laotian", although the latter is commonly used to describe the people of Laos (to avoid confusion with the Lao ethnic group).

Politics

The only legal political party is the Lao People's Revolutionary Party (LPRP). The head of state is the President, elected by parliament for a 5 year term. The head of government is the Prime Minister, appointed by the president with parliamentary approval. Government policies are determined by the Party through the all-powerful eleven-member Politburo and the 55-member Central Committee. Important government decisions are vetted by the Council of Ministers.

Laos adopted a new constitution in 1991. The following year, elections were held for a new 85-seat National Assembly with members elected by secret ballot to five-year terms. This unicameral parliament, expanded in the 1997 elections to 99 members, approves all new laws, although the executive branch retains authority to issue binding decrees. The most recent elections took place on 30 April 2006 when 175 candidates in sixteen electoral areas competed for 115 seats.

Remnants of a Hmong group allied with the United States during the Vietnam War have been in armed conflict with the communist regime since 1975. With recent surrenders reported in the international media, this conflict appears to be on the wane. Most Hmong are integrated into or at least at peace with society, with some occupying high-ranking positions in the state system.

Geography

Laos is a landlocked country in Southeast Asia and the thickly forested landscape consists mostly of rugged mountains, the highest of which is Phou Bia at 9,242 feet (2,817 m), with some plains and plateaus. The Mekong River forms a large part of the western boundary with Thailand, whereas the mountains of the Annamite Chain form most of the eastern border with Vietnam.

The climate is tropical and characterised by monsoons. There is a distinct rainy season from May to November, followed by a dry season from December to April. The capital and largest city of Laos is Vientiane, and other major cities include Luang Prabang, Savannakhet and Pakse.

In 1993, the government set aside 21% of the nation's land area as National Biodiversity Conservation Areas (NBCA), which may be developed into a national park system. If completed, it is expected to be the most comprehensive and one of the finest national park systems in Southeast Asia.

A number of animal species have been discovered or re-discovered in Laos in recent years. These include the striped or Annamite rabbit, the saola, and most recently the Laotian rock rat or kha-nyou.

Economy

The government of Laos – one of the few remaining official socialist states – began decentralising control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking: growth averaged 6% in 1988-2004 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. As in many developing countries, the major urban centers have experienced the most growth. The economies of Vientiane, Luang Prabang and Savannakhet in particular have experienced significant booms in recent years. Laos' economy is heavily dependent on investment and trade with its larger and richer cousin, Thailand. Pakxe has also experienced growth.

Much of the country, however, lacks adequate infrastructure. Laos has no railways, although a short link is planned to connect Vientiane with Thailand over the Thai-Lao Friendship Bridge. The major roads connecting the major urban centres, mainly forming Route 13, have been significantly upgraded in recent years, but villages that are far from major roads are accessible only through unpaved roads that may not be accessible year-round. There is limited external and internal telecommunication, particularly of the wire line sort, but mobile cellular phone usage has become widespread in urban centres. In many rural areas electricity is either not available or offered only during scheduled periods.

Subsistence agriculture still accounts for half of GDP and provides 80% of total employment. Laos has the lowest percentage of arable land and permanent crop land in the Greater Mekong Subregion . Only 4.01% of Laos is arable land, and only 0.34% of the country is planted with permanent crops. Rice dominates agriculture, with about 80% of the arable land area used for rice production. Approximately 77% of Lao farm households are self-sufficient in rice. Through the development, release and widespread adoption of improved rice varieties; and through economic reforms, Lao PDR achieved a net balance of rice imports and exports for the first time in 1999. Between 1990 and 2005, rice production increased from 1.5 million tons to 2.5 million tons; an average annual growth rate of more than 5%. This increase in production has been valued at $8 million to $19 million per year. Lao PDR may have the greatest number of rice varieties in the Greater Mekong Subregion. Since 1995 the Lao government has been working with the International Rice Research Institute (IRRI) to collect seed samples of each of the thousands of rice varieties found in Laos.

The economy receives aid from the IMF and other international sources and from new foreign investment in food-processing and mining, most notably of copper and gold. Tourism is the fastest growing industry in the country. However, economic development in general is hampered by a serious case of brain drain. A 2005 World Bank study reported that 37% of educated Laotians lived abroad, putting the country in fifth place for worst brain drain.

In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to face lower tariffs on their exports; this may help spur growth.