Laos Today

Laos sits on one of the world's major geo-political crossroads, where Southeast Asia meets China, and this is a huge challenge for such a small country. Hemmed in by the Asian tigers of China, Vietnam and Thailand, Laos often looks like vulnerable prey. Traditionally, Vietnam has held political sway, China wields financial clout and Thailand has a dominant cultural influence. While the government tries to parry these competing influences, the Lao people are ever more plugged into a global world and this contributes to domestic tension.

Best on Film

The Rocket (2013) The story of a young Lao boy blamed for bringing bad luck to his family. To win back the trust of the family he builds a giant firework to enter the annual Rocket Festival.

Bomb Harvest (2007) Powerful documentary about the impact of unexploded ordnance (UXO) on communities in Laos today and the work the Mines Advisory Group (MAG) is doing to clear the legacy of war. For some, the war goes on.

Best in Print

The Coroner’s Lunch (Colin Cotterill; 2004) Delve into the delightful world of Dr Siri, full-time national coroner in the 1970s and part-time super sleuth. The first instalment in a 10-part Siri series.

Ant Egg Soup (Natacha Du Pont de Bie; 2004) Subtitled The Adventures of a Food Tourist in Laos, the author samples some local delicacies (including some that aren’t suitable for a delicate stomach).

One Foot in Laos (Dervla Murphy; 2001) Renowned Irish travel writer explores Laos back in the early days of the 1990s and discovers a country undergoing profound change.

Political Snapshot

Officially Laos remains a one-party communist state controlled by the ruling Lao People's Revolutionary Party (LPRP). However, the 'communist' government long ago ditched the Marxist baggage in favour of capitalist couture. The LPRP is not the unified monolith it might appear and contains several factions. Trying to keep all these elements happy is a challenge. New President Bounnhang Vorachith and Prime Minister Thongloun Sisoulith both came to power in 2016 and early populist moves included a total ban on logging in Laos. But it remains to be seen if there is actually the political will to enforce this on the ground.

Economy & Infrastructure

The Lao economy has seen 7% to 8% growth from 2010 to 2015, one of the best performances in the world. However, the World Bank still rates Laos as one of the least developed countries in East Asia, with more than 75% of people living on less than US$2 a day.

Major exports are timber products, garments, electricity and coffee. In recent years, tourism has become one of the main generators of foreign income, much of which flows directly into the pockets of those who need it most.

Foreign aid remains a crutch for the Laos economy, with Western governments and their NGOs picking up much of the development tab. China is a political role model as well as a major source of funding, and Chinese spending comes without reform targets, unlike assistance from the West.

Infrastructure is the buzz word in Laos, as aid and investment is channelled towards hydroelectricity, roads and bridges. China is funding a new high-speed railway that will eventually connect Kunming with Bangkok via Luang Prabang and Vientiane. Other mega-projects include the Xayaburi Dam on the lower Mekong, which is causing much consternation for downstream neighbours Cambodia and Vietnam, who rely on the river for irrigation and fish stocks.

Corruption

Corruption remains a major problem, and Transparency International ranked Laos 139 out of 168 countries in its Corruption Perceptions Index 2015, level with Bangladesh and Guinea. Increased investment has brought increased exports and increased revenue for the government, but much of this new wealth has not been effectively accounted for in the national budget. Widespread corruption is a source of great frustration to the average Laotian, and contributes to a widening gap between rural and urban living standards.

We the People

And where do the Lao people fit into all this? While they may be politically disenfranchised, they are more economically empowered than in the past. They also have greater access to basics such as electricity and running water – a major improvement on the bad old days of collectivisation. Access to technology has also improved, with the number of Lao people using the internet more than doubling in the past five years.

However, ethnic minorities, who make up a large proportion of the population, are not sharing the economic bonanza with their lowland cousins who dominate the cities. And while use of social media continues to spread, laws curtail freedom of speech: a 2014 decree prohibits criticism of the government online (an offence that got three Lao citizens arrested in 2016), and the vast majority of media outlets are state run. Laos is a conservative country, but there are increasing numbers of the younger generation who have spent time abroad working in Thailand or with foreigners in the tourism sector who feel disconnected from their ageing leadership.

Population

6.9 million

Area

236,800 sq km

Official Language

Lao

Inflation

1.3%

GDP per capita

US$1660 per head

Border Countries

Cambodia, China, Myanmar (Burma), Thailand, Vietnam