Socio-political situation

Since December 2, 1995, the official name of the country has been the Lao People's Democratic Republic.

Following the take-over, the former pro-western, monarchial regime was replaced by a government which espoused a Marxist-Leninist political philosophy in alignment with other communist states, most explicitly the Socialist Republic of Vietnam, Kampuchea and USSR.

The national motto - which appears on all official government stationary - is Peace, Independence, Democracy, Unity and Prosperity (the latter was substituted for 'Socialism' in 1991).

The Central ruling body in Laos is the Lao People's Revolutionary Party (LPRP), which is modelled on the Vietnamese Communist Party. The LPRP is directed by Party Congress, which meets every four years to elect Party leaders. Other important organs include the Political Bureau (POLITBURO), The Central Committee and the Permanent Secretariat.

The main seat of LPRP power, as in most communist parties, is the Politburo, which officially makes all policy decisions. In Theory, members of the Politburo are selected by the Party Central Committee. In practise, since the Secretary-General of the Politburo, the Secretariat, and the Central Committee are all one man, Khamtay Siphandone(who is also the President), virtually all members of these major Party organs are co-opted by this lead position.

Administratively Laos is divided into seventeen quite autonomous provinces. While policies are made at the centre, their implementation is at the discretion of the provincial authorities.

After sixteen years without a constitution, Laos ratified its constitution in August 1991, giving the people of Laos a uniform legal code and provisions for due judicial process. The constitution guarantees certain individual freedoms, including "the right and freedom to believe or not believe in religions."

The sixth congress of the ruling Lao People's Revolutionary Party held on March 1996 showed the Party's resolve to keep Socialism as the system that will carry them to the 20th century.

During the Congress, to the surprise of many, the delegates decided to sideline Deputy Prime Minister and politburo member Khamphoui Keoboualapha, architect of many of Laos' economic reforms. The slightly trimmed central committee also excluded from the top party leadership the minister of communications, transport, post and construction, Phao Bounnaphol and the minister of the office of the Prime Minister, Khamxay Souphannavong.

The new party line-up was widely seen as a vote for conservatism and nationalism, and perhaps an indication that the old guard thought free-market reforms had gone too far, too fast.

The second man in the politburo is former General Saman Viyaket and the third is Lt-Gen. Choummaly Sayasone, army chief and defence minister. Both men oppose rapid political and economic change.

The composition of the LPRP's new nine-man politburo also confirms the increasingly important role of the armed forces in the top leadership. Of the nine, six are generals and one is colonel; only two have no previous military experience.

Equally significant was the fact that of the four new members of the politburo, three are from ethnic minorities. Finally, the make-up of the new 49-member Central Committee, which also includes many new faces from up-country, shows that the leadership is indeed trying to address potential threats to national unity - a vital issue in a country where perhaps only 60% of the population is from the dominant lowland Lao group.

Since discarding Marxism in everything but name, the ruling elite in Vientiane has begun to promote its own authoritarian brand of Lao nationalism as an alternative. But this has caused some unease among the many non-lowland communities. By replacing an outdated ideology with nationalism, the regime is in danger of undermining its most important achievement since assuming power in 1975: creating a unified nation out of one Southeast Asia's most ethnically diverse countries.

Economic factors exacerbate cultural differences that inhibit national unity. Rapid growth has created severe income disparities between urban and rural areas. The Problem is that the less-developed, outlying areas are almost entirely populated by ethnic minorities. To counter the trend, and to bridge the gap between the relatively developed Mekong river valley and the highlands, the leadership has been widened to include representatives from up-country - and more investment is being promoted in remote provinces.

A more serious threat to State authority is actually represented by armed gangs of ethnic Hmongs who are active in area spanning the provinces of Luang Prabang, Xieng Khouang, Vientiane and Saysomboun special zone. In 1996, there seemed to be an increase in the number of violent incidents involving Hmong bands.

Development and social dislocation have also caused new problems among the lowlanders. Vientiane is being hit for the first time in years by social ills such as corruption among officials and drug addiction, juvenile delinquency and prostitution among the population at large.

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Human rights
As in countries that have adopted the Socialist system, Laos is and will continue to apply stricter control and restrictions on her populace:

The Military plays a crucial and strong role in politics and economics under a Nationalist-authoritarian system.

Creating an alternative to the Lao People's Revolutionary Party is unthinkable.

There are still several political prisoners incarcerated. Three former government officials - two of them former deputy ministers - formed a "Social Democratic Club" to call for democracy and a multi-party system. They were arrested in 1990 and have since been imprisoned.

Religious freedom is limited and curtailed.

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Economy

Laos remains one of the world's poorest countries, with a GDP estimated at $ 1.5 billion, or a per capita income of $ 350.00 annually. Some 86% of the population is still engaged in agriculture; many are subsistence farmers. Total external debt in 1995 amounted to $ 1.24 billion or almost as much as the entire GDP. An estimated 58% of the nation's population live at a subsistence level, largely autonomous from all government involvement, in small villages scattered throughout the country.

But in recent years, Laos has nevertheless experienced healthy economic growth. In 1995, the Lao economy grew at 7.1%, lower than 1994' figure of 8.1%, but still higher than the 5.9% registered in 1993. And both the service sector and even industry are expanding at a rate not since the communist take-over in December 1975.

The textile, garment industry, rice milling, beer and soft drink production have all experienced considerable growth the past few years. But the fact remains, Laos' population is small and poor. This unavoidably means that the country is not going to embark on the same kind of rapid development that has helped other East Asian countries modernise their economies and domestic markets. Laos has only two resources that are capable of fostering development in both the short and long term; forests and water for hydroelectricity. The viability of a third, mineral deposits, is yet to be firmly established.

But the credit for economic stabilisation can't all be ascribed to the liberalisation of the economy per se. Foreign aid has also greatly increased since 1980, making up as much as 78% of the National Budget. In 1994, foreign aid totalled USD 145 million. This figure represents around 45% of the annual national budget, approximately 40% of which goes to the Lao government payroll.

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`More Information about the Church in Laos.