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Country profile:
Laos
languages: Lao, French (for
diplomatic purposes)
President:
Choummaly
Sayasone
Agro-Industry Development
Agriculture, forestry, and
fishing :-
Agriculture is the mainstay of the economy of
Laos. In the early 21st century the sector
generated nearly half the country's gross
domestic product (GDP) and employed some
three-fourths of the population. The expansion
of land under cultivation has been impeded,
however, largely by the vast quantities of
unexploded bombs-dropped mostly by the U.S.
military during the Vietnam War-that litter
potential farmlands. Consequently, only a small
portion of the country's total arable land area
is cultivated. The great majority of Laos's
farmers are engaged in rice agriculture. Lowland
farmers generally plant irrigated paddy fields,
while upland dwellers cultivate rain-fed swiddens. Frequent floods and droughts cause
significant year-to-year fluctuation in
agricultural yields. Although such weather
calamities affect the lowlands more severely,
those regions have been more productive than the
uplands, owing largely to accessibility of new
technologies, pesticides, fertilizers, more
solid infrastructure, and market networks. Many
farmers in the uplands practice subsistence
agriculture; however, a shift toward
market-based production has been gaining
momentum, propelled primarily by government
modernization initiatives. In years with
"normal" harvests, Laos is self-sufficient in
rice production.
Principal crops other than rice include sweet
potatoes, sugarcane, corn (maize), assorted
vegetables and fruits in smaller quantities, and
tobacco. Coffee is cultivated mainly on the
Bolovens Plateau and is the only crop produced
for export in substantial volume. Opium
production began decreasing dramatically in the
late 20th century as a result of aggressive
eradication programs implemented by the
government. Fishing is particularly important
for lowland dwellers, and aquaculture has been
increasing in the early 21st century. Principal
pond-raised fish include tilapia and various
types of carp. Raising of livestock-especially
pigs, cattle, water buffalo, and chickens-has
also been growing in significance.
Laos,
one
of
the
world's
few
remaining
communist
states,
is
one
of
east
Asia's
poorest
countries.
Since
the
collapse
of
the
Soviet
Union
in
1991
it
has
struggled
to
find
its
position
within
a
changing
political
and
economic
landscape.
Communist
forces
overthrew
the
monarchy
in
1975,
heralding
years
of
isolation.
Laos
began
opening
up
to
the
world
in
the
1990s,
but
despite
tentative
reforms,
it
remains
poor
and
dependent
on
international
donations.
The
government
has
implemented
gradual
economic
and
business
reforms
since
2005 to
somewhat
liberalize
its
domestic
markets.
Its
longterm
plans
for
reform
include
high-profile
projects
such as
the Nam
Theun 2
power
project.
Thailand
is the
largest
foreign
investor
in Laos.
While
this
support
is badly
needed,
the
dangers
of
exposing
Laos's
fragile
economy
to world
trends
are
clear.
AT-A-GLANCE
Politics: Ruling communists maintain a monopoly of political power
Economy: One of the world's poorest nations, Laos has little industry and relies on foreign aid; hopes are pinned on a hydroelectric project
International: Communist regime is backed by China and Vietnam
The
Asian
currency
crisis
of 1997
caused
the
national
currency,
the kip,
to lose
more
than
nine-tenths
of its
value
against
the US
dollar.
Laos is
a
landlocked,
mountainous
country,
widely
covered
by
largely
unspoilt
tropical
forest.
Less
than 5%
of the
land is
suitable
for
subsistence
agriculture,
which
nevertheless
provides
around
80% of
employment.
The main
crop is
rice,
which is
grown on
the
fertile
floodplain
of the
Mekong
River.
Vegetables,
fruit,
spices
and
cotton
are also
grown.
Part of
the
region's
heroin-producing
"Golden
Triangle",
Laos has
all but
stamped
out
opium
production.
Outside
the
capital,
many
people
live
without
electricity
or
access
to basic
facilities.
But Laos
is
banking
on the
anticipated
returns
from a
billion-dollar
dam
scheme,
intended
to
generate
electricity
for
export
to
Thailand,
to boost
its
economy
and
infrastructure.
Several
small
bomb
blasts
in
recent
years in
and
around
the
capital,
Vientiane,
have
suggested
that
opposition
to the
ruling
party
may be
growing.
But any
public
dissent
is dealt
with
harshly
by the
authorities.
The
country's
human
rights
record
has come
under
scrutiny.
Laos
denies
accusations
of
abuses
by the
military
against
the
ethnic
minority
Hmong.
Hmong
groups
have
been
fighting
a
low-level
rebellion
against
the
communist
regime
since
1975.
Choummaly
Sayasone,
the head
of the
ruling
communist
Lao
People's
Revolutionary
Party (LPRP),
was
appointed
by the
National
Assembly
to
succeed
Khamtay
Siphandon
as
president
in June
2006.
He took
over the
party
leadership
from the
octogenarian
former
president
in
March.
The LPRP
is the
only
legal
political
party in
Laos and
holds 98
of the
99 seats
in the
assembly.
Mr
Sayasone
is seen
as a
staunch
ally of
his
predecessor,
who
served
three
terms
and
oversaw
the
country's
entry
into the
Association
of
Southeast
Asian
Nations
(Asean)
in 1997.
Choummaly
Sayasone,
who was
born in
1936 in
southern
Laos, is
a former
defence
minister
and vice
president.
The
ruling
communists
maintain
strict
control
over the
media.
The
government
owns all
newspapers
and
broadcast
media.
Newspaper
circulation
figures
are very
low.
Slandering
the
state,
distorting
party
policies
and
spreading
false
rumours
are all
criminal
offences.
A draft
law
which
would
allow
the
development
of
private
media
has not
been
implemented.
Media
rights
group
Reporters
Without
Borders
noted in
2008
that the
majority
of the
media
"only
puts out
news
that is
favourable
to the
communist
regime".
The
group
said
many
Laotian
viewers
watch TV
stations
from
neighbouring
Thailand.
There
were
some
100,000
internet
users by
March
2008 (ITU
figure).