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Internat ional Relations Year 1

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Modern Laos

1. The Lao People’s Democratic Republic, or Laos as it is commonly known, was established on
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2 December 1975. After years of struggle and war, the Pathet Lao took over the government
and established a socialist state closely aligned to Vietnam. Laos is a single- party state
governed by the Lao People’s Revolutionary Party (LPRP), generally referred to as the Party. It
is an ethnically diverse nation, with 49 distinct ethnic groups.

2. Laos has a unicameral parliament, the National Assembly, which meets for two ordinary
sessions, usually in June and December, and passes about six or seven new laws every year.
General elections are held every five years and elected officials represent their constituencies
at the National Assembly. The National Assembly has 132 seats, of which four are held by
independents with the remainder being held by members of the Party. Women hold 25
percent of the seats.

3. The government consists of the President, the Prime Minister and a cabinet of Ministers
representing 18 ministries. The President, the Head of State, is first nominated by the Party
during the Party Congress and then voted in by National Assembly members. The President
appoints the Prime Minister and Vice Presidents with the consent of the National Assembly.
The current President, Choummaly Sayasone, is also General Secretary of the Party.

4. Laos has a population of 6.6 million (World Bank, 2012) and has had one of the fastest growing
economies in the region for the past ten years with an average growth rate of more than 7%.
Yet Laos is still considered a Least Developed Country (LDC) by the United Nations, with 26%
of the population living below the poverty line. Subsistence farming, mostly of sticky rice,
accounts for 75% of total employment and 30% of GDP. Other important crops are coffee,
corn, sweet potatoes, cassava, tobacco and sugarcane.

5. Since 1986, Laos has opened up to foreign investment and private enterprise. This resulted in
significant investment in the mining and hydropower industries. Two large gold and copper
mines now account for more than 10% of GDP. There are currently 17 hydropower plants in
operation and many more are planned. The largest hydro- electric power plant is Nam Theun
2, which has an electricity generating capacity of 1,070 megawatts. The country’s
mountainous geography, abundance of rivers and sparse population make hydropower an
ideal industry, particularly given the growing demand for electricity from Laos and its larger
neighbours.

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6. The 21 century is an exciting time for Laos as it aims to move from being a land- locked
underdeveloped country to a land- linked middle- income country. Laos became a member of
the World Trade Organisation (WTO) in 2013 and will join its ASEAN partners in creating the
ASEAN Community in 2015, where goods and labour will move freely. Laos is a young country
with more than half the population under the age of 25. One of the challenges facing Laos as it
moves forward on its path of development will be in educating and providing employment for
this growing population.

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