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Laos
Area: 236,800 sq km (91,400 sq mi) Population: 6,368,481m (July 2006) Capital City: Vientiane (319,000 approx.) People: Lao (52.5%), Phuthai (10.5%), Khmu (11%), Hmong (6.9%). Official total is 47 ethnic groups. Languages: Lao Religion(s): The population is 65.4% Buddhist, with 33.1% animist, 1.3 % Christian and 0.1% Other, including a tiny Islamic minority (1995 census). Currency: Kip Major political parties: Lao People's Revolutionary Party (Leader: Choummaly Savasone) Government: One-party Republic Head of State: President Choummaly Savasone Prime Minister/Premier: HE Bouasone Bouphavanh Foreign Minister: Dr Thomas Sisoulith (also Deputy Prime Minister) Membership of international groupings/organisations: Laos is a member of the United Nations (UN), Non Aligned Movement (NAM), Group of 77 at the United Nations (G77), Association of Southeast Asian Nations (ASEAN) and the Asia-Europe Meeting (ASEM). In addition: ACCT, APT, ARF, AsDB, CP, EAS, FAO, G-77, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IPU, ITU, MIGA, OIF, OPCW, PCA, UNCTAD, UNESCO, UNIDO, UPU, WFTU, WHO, WIPO, WMO, WToO, WTO (observer). (Note on Lao Names: Lao people generally have two names, the first being the given name and the second the family name. Nevertheless, if only one name is used, it should be the first, eg. President Choummaly) GEOGRAPHY
Laos is a land-locked country, bordering China, Vietnam, Cambodia, Thailand and Burma. It is largely mountainous. The most fertile land is found in the valley of the Mekong, which flows from the north of Laos to the south and which forms the frontier with Thailand for over 60% of its length.
HISTORY
Recent History
After gaining its independence from France in 1953, the Kingdom of Laos found itself embroiled in regional conflicts resulting from the struggle for control of South Vietnam. The North Vietnamese supported the Pathet Lao, a nationalist front organisation controlled by the communist Lao People's Revolutionary Party (LPRP). The Thais and the Americans supported right-wing groups. Prince Souvanna Phouma, Prime Minister for most of the period from 1951 to 1975, attempted to follow a neutral course.
Following the American withdrawal from Vietnam the Lao Communists consolidated their control of Laos, which culminated in the abolition of the monarchy and establishment of the Lao People's Democratic Republic in December 1975.
As the LPRP instituted a one-party state and introduced tough socialist reforms of the economy it continued its hard line policies until economic difficulties in the late 1980s forced it to bring in more liberal measures in line with those being adopted in Vietnam, with which Laos has been closely aligned since 1975.
In 1992 Kaysone Phomvihane, the long-time leader of the LPRP, died. He was succeeded as party leader by the then Prime Minister, Khamtay Siphandone. Since then the government and party have cautiously and half-heartedly introduced market reforms, while maintaining tight political control in a one-party system of government.
Longer Historical Perspective
The Lao are one branch of the Tai ethnic group which moved southwards from southern China, settling in parts of present day Laos from at least the thirteenth century. From its foundation in 1353 until about 1700 the Lao Kingdom of Lane Xang was one of the most powerful states in mainland Southeast Asia and included much of present day Thailand. Thereafter the kingdom was divided into rival principalities and fell into decline, losing power to the expanding Vietnamese and Siamese states. It was effectively saved from absorption by these two states by the establishment of a French protectorate at the end of the nineteenth century.
Under French rule development in Laos, whether it be economic, educational or political, was slow compared to that in Vietnam and Cambodia, the other countries in French Indochina. A stimulus to political development was provided by the Japanese occupation of Indochina during the Second World War. After the Japanese defeat in August 1945 a Free Lao movement, the Lao Issara, proclaimed Lao independence, but with the support of the King and Crown Prince the French regained control of the country in 1946, driving the nationalists into exile. The French finally granted Lao independence in 1953.
POLITICS
Recent Political Developments
The government celebrated the 30th anniversary of its accession to power in December 2005. The 8th Congress of the Lao People's Revolutionary Party was held in March 2006.
There were series of fatal violent incidents in 2004 including bombings and armed attacks on buses. These occurred in Vientiane and on roads leading from the Capital, in particular Route 13 between Viang Vieng to Luang Prabang and Route 7 between Phoukhon and Phonsavan. Civilians, including two foreign tourists, were killed and many others injured. It is unclear who is behind these incidents, but Hmong insurgents were blamed.
Elections
The National Assembly was last elected on 30 April 2006 and it first met on 8 June in order to approve the appointments made at the 8th Party Congress in March 2006. Amongst many other changes, HE Choummaly Sayasone was made President of the Lao PDR, and a new Prime Minister and Foreign Minister were also appointed. The electoral term is five years. When the National Assembly met in March/April 2003, significant changes included the addition of the right to complain and right to charge to fundamental rights and the strengthening of the President’s powers. The position now has the power to propose to the National Assembly the appointment or removal of the Prime Minister. ECONOMY
Basic Economic Facts GDP: US$ 2.523 billion (2005) GDP per capita: US$328 (2002) GDP per capita (PPP): US$1,900 (2005) Annual Growth: 7.2% (2005 estimate) Inflation: 8% Major Sectors: Agriculture (45.5% of GDP), Services (25.8%) - wholesale and retail the largest part, of this. Industry (28.7%) - garment manufacturing, food processing and low – tech assembly are growth sectors. It is expected that the mining and hydropower sectors will contribute significantly to Lao's GDP over the coming years. Major trading partners: Laos is a net importer and mainly trades with counties of the region. In 2005 the main trading partners were: China, Thailand and Vietnam. Aid & development: Measurable aid to Laos in 2001 totalled US$ 243m. By far the largest donor was Japan. It is estimated that 40% of Lao GDP is accounted for by aid. China and Vietnam give large amounts of aid and other development assistance to Laos. There are no officially disclosed figures on how much this amounts to each year. International organisations working with Laos who have offices in Vientiane include the IMF, World Bank, Asian Development Bank various UN agencies and the European Commission. Exchange rate: £1 = 19,675 (August 2006)
INTERNATIONAL RELATIONS
Laos' Relations with its Neighbours
Although the Lao people are much more closely related to the Thais than to other neighbours in language and culture, Laos was linked to Vietnam and Cambodia as part of French Indochina from the end of the nineteenth century until independence in 1953. Following an attempt to steer a neutral course, ties with Vietnam and Cambodia were strengthened after the communist victories in all three countries in 1975. Relations with the strongly anti-Communist governments of Thailand were difficult. In the aftermath of the Sino-Vietnamese rift of the late 1970s and 1980s, Laos' relations with China were also strained.
As the general situation in mainland Southeast Asia improved in the 1980s and early 1990s with a decrease in ideological alignments and progress towards a solution of the divisive Cambodian problem, Laos was able significantly to improve ties with other countries in the region. The first bridge across the Mekong River between Thailand and Laos was opened in April 1994. In November 1994 the Mekong River Commission (MRC) was established – involving Laos, Cambodia, Thailand and Vietnam - whose principle objective is the sustainable utilisation of the Mekong Basin. Laos joined ASEAN in July 1997 and joined ASEM in October 2004.
Laos' Relations with the International Community
The EU Commission opened an office in Laos in May 2003.
Laos is currently working on preparations to join the World Trade Organisation.
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