The Economy of Lao People's Democratic Republic

The Lao People’s Democratic Republic or Laos is one of Asia’s poorest nations. The country was among the 10 poorest countries in the world according to World Bank ranking with a per capita income of around US$320. Agriculture employs most of the Laotian workforce and accounts for about half of its gross domestic product. Rice is the chief crop with sweet potatoes, vegetables, corn, and peanuts also grown in the country. Some commercial crops include coffee, sugarcane, tobacco, cotton, and tea. Water buffalo, pigs, cattle, and poultry are raised, and fish from the rivers supplement the diet. Copper, tin, and gypsum are mined and other mineral resources like gold and gemstones. Infant mortality remains high and in remoter areas inadequate diet, poor sanitation and limited healthcare still give rise to enfeebling and fatal diseases.

Laos is a landlocked country that depends heavily on its trade with Thailand, and it fall victim to the financial crisis in the region beginning in 1997. The country has no railroads, a rudimentary road system, and limited external and internal telecommunications. The Lao Government accepted Australian aid to build a bridge across the Mekong River to Thailand in attempt to stimulate further international commerce. When the bridge was created, the Lao Government does not yet permit a completely free flow of traffic across the span. These reforms led to economic growth and an increased availability of goods.