Demographics
The Lao People’s Democratic Republic has a population of 5.6 million (2005), a population growth rate of 2%, a sparse population density (23.7 per square kilometre) with large inter-provincial variations, and an average household size of 5.9 persons. The topography breaks into lowland areas along the Mekong River that depend predominantly on paddy rice, and highland areas that depend on upland rice and the gathering of non-timber forest products for livelihoods. The population is young, but there are signs of changes in the demographic structure; the percentage of the population under 15 years of age decreased from 43.6% to 39% between 1995 and 2005. The nation is rural, with the beginnings of a rural-to-urban shift, as indicated by the increase in urban areas; the percentage of the population living in rural areas decreased from 83% to 72.9% from 1995 to 2005.
The latest census identified 47 distinct ethnic groups. The ethnic Lao comprise 52.5% of the total population and predominate in the lowlands, while ethnic minorities predominate in the highlands, although mixing is common. The highlands have more poverty, worse health indicators and fewer services available for multiple reasons, including remoteness, lower education levels, land that is less agriculturally productive and increasing land pressure, and limited rural health care services. Ethnic diversity presents a major challenge in health care delivery and education due to cultural and linguistic barriers. Women have lower literacy rates than men and girls have lower school completion rates. These gaps are accentuated in the rural and highland areas, where poverty is highest. There is some evidence of decreased treatment-seeking behaviour for women when ill.
Despite recent efforts, statistics are still relatively weak and major capacity strengthening is still necessary in the area of surveillance data, official statistics collection and vital registration. National health indicators have been improving steadily over the past three decades, but despite the efforts of the national authorities, they remain below international standards, being some of the lowest in the Region. The infant mortality rate declined from 137 to 56 per 1000 live births from 1990 to 2005. Over the same period, the maternal mortality ratio fell from 750 to 405 deaths per 100 000 live births. The crude death rate also declined, from 15.1 to 9.8 deaths per 1000 inhabitants, while the total fertility rate (average number of children per women) fell from 5.6 in 1995 to 4.1 in 2005, and the crude birth rate (number of births per 1000 inhabitants) from 41.3 to 34.3. At the same time, life expectancy at birth rose 10 years in a decade, from 51 years in 1995 to 61 in 2005. Female life expectancy is slightly higher than that of males. Safe water is accessible to 51% of the population and improved sanitation to 30% (2004).
Political situation
The Lao People’s Democratic Republic was founded in 1975. The organs of government are the President, the Prime Minister and the National Assembly. The Government operates under the guidance of the Lao Peoples’ Revolutionary Party (LPRP) through five-yearly Party Congresses, the Politburo and the Central Committee. The VIIIth Party Congress was held in early 2006. A National Assembly (NA) election was held in April 2006, with competition among a group of LPRP-approved candidates and outstanding participation by the population. The National Assembly as the main legislative organ is composed of 115 members, of which 29 are women; 113 members are LPRP members. The NA elected a new President, Lt. Gen. Choummaly Sayasone, in June 2006. At the same time, a new Prime Minister, Mr Bouasone Bouphavanh, was appointed by the President for a five-year term, with the approval of the NA. The rule of law has continuously been strengthened by new laws, including several health sector laws in respect of public health, curative services, food safety, drugs and medical devices. The Government reports to the NA on the implementation of its 6th National Social and Economic Development Plan 2006-10 (NSEDP), which includes national strategies on poverty eradication. The last report to the NA was made in June 2007. During this session, the participation of NA members was dynamic and a request was made to the Government to report regularly on the implementation and achievements of the NSEDP.
Until January 2006, the country comprised 16 provinces and one special administrative zone under military administration. In early 2006, the special administration status over Xaysomboune region was released and the concerned district allocated to Xiengkhouang and Vientiane provinces. The security in the country is considered stable.
Socioeconomic situation
Lao People’s Democratic Republic ranks 130th out of 177 nations on the Human Development Index in 2005. Literacy has improved in the last decade, attaining 73% in the population above 15 years of age in 2005, compared with 60% in 1995. Schooling has improved for children from 6 to 16 years of age, but boys still have higher attendance than girls: 75% for boys and 68% for girls in 2005 compared with 66% for boys and 56% for girls in 1995.
The official poverty rate fell from 39% in 1997 to 33.5% in 2002. Poverty is higher in remote and highland areas and inversely correlates with road or river access. Compared with international standards in 2006, 71% of the population lives on less than PPP US$ 2 a day and 23% live on less than PPP US$ 1 a day. Inequalities remain important, with the share of the national economy of the lowest and the highest quintile being 7.6% and 45%, respectively. Proxy indicators of poverty, such as access to sanitation and electricity, also point to the vulnerability of the population. The latest Lao Reproductive Health Survey found that, in 2005, 50% of households had no toilets and over 40% had no electricity. Disparities between urban and rural areas are still pronounced. For example, 96% of urban households have access to electricity, compared with only 33.3% in rural areas without road access.
The World Bank estimated that per capita gross national income was US$ 500 in 2006, with 7.6% economic growth. Agriculture makes up 42% of the gross domestic product (GDP), industry (mainly hydropower, mining and textiles) 32.5%, and services 26%. Revenue collection has been above national targets for the last two years but remains very low, estimated at 14.3% of 2006 GDP. The budget deficit has therefore declined and fiscal space has widened. Major public management reforms are ongoing, but implementation is still below desirable targets. One persisting major issue is the management of customs and taxes. In 2007, collection of taxes and revenues was recentralized by Prime Ministerial decree. New budget and state audit laws still need to be fully implemented.
In its official will to provide better service to the rural population and eradicate slash-and-burn agriculture and opium cultivation, the Government has strengthened its policy of resettlement of villagers from the highlands to lowland areas closer to roads and essential public facilities. This resettlement policy brings with it tremendous challenges in delivering social services for these resettled communities. International NGOs and, more recently, the World Food Programme have pointed out that the vulnerability of the resettled populations is a major source of concern. The traditional cultivation techniques of highland populations are inadequate to enable them to access subsistence crops and their traditional reliance on non-timber products, combined with increased environmental pressure, has contributed to a deterioration of their nutritional and health status. This situation may have been accelerated by the need to resettle villages and populations in areas affected by the building of new hydropower projects and other programmes exploiting natural resources.
Vulnerabilities and hazards
Locked between Thailand, Viet Nam, China and Myanmar, the Lao People’s Democratic Republic is facing major challenges as the country opens up to external influences. Despite its low level of prevalence, the HIV/AIDS epidemic is gaining attention. The latest round of surveillance (2004) showed an accelerated rate of transmission among sex workers in two of the 17 provinces. With the recent trend in opening of offshore trade zones with China and Viet Nam, the important investment in casinos throughout the country and the ease of migration formalities, the country faces important challenges with regards to spread of HIV/AIDS and other communicable diseases.
Until early 2007, there were only limited reported outbreaks of avian influenza in poultry and no human cases of infection with the H5N1 virus in the country. However, in early 2007, the country faced a series of outbreaks in poultry and its first two human cases in the capital, Vientiane.
The economy continues to rely heavily on natural resources (hydropower, timber and minerals) and concern has been raised by international environmental agencies that biodiversity and resources are being overexploited, particularly timber.
In 1998, the Lao People’s Democratic Republic ranked as the third largest illicit opium producer in the world, after Afghanistan and Myanmar, and had one of the highest opium addiction rates. Through its high-level commitment to fighting drug production and abuse, the Government managed, in less than a decade, from 1998 to 2005, to reduced opium cultivation by 93% and opium addiction by 68%. These changes, however, have brought new challenges for the authorities as there is a need for sustainable economic alternatives for highland former opium farmers. New synthetic drugs have emerged, however, raising concern for public health and amphetamine-type stimulants pose the most serious and fastest-growing drug threat in the country. In the mid-1990s, the Government, with assistance from its partners, started prevention and treatment programmes for drug abusers.
The country ranks among the least-developed in the world and, despite a steadily increasing GDP, growth is still slow and inequalities serious. The country is also facing major challenges in addressing transparency and corruption issues; in 2007, it was classified by Transparency International, as 168th on the Corruption Perception Index of 179 countries. As a comparison, in 2005, it ranked 77th of 158 countries.