Laos: Sedately Seguing into the Twenty‑First Century

Abstract

Introduction After a relatively torrid couple of years, beset with substantial economic difficulties, 2001 was more sedate for the Lao People's Democratic Republic. The signs of political unrest and sporadic acts of terrorism that Laos witnessed throughout 2000 also appeared to fully abate in early 2001. Spiralling inflation has largely been brought under control, as has the foreign exchange rate for the Lao kip. The Seventh Congress of the Lao People's Revolutionary Party (LPRP) was held in March 2001, and some changes to the senior leadership were enacted, but government policy did not appear to alter in any significant way. The resumption of the International Monetary Fund (IMF) lending in 2001 to Laos was a welcome development, although a general frustration still persists among foreign donors that the country's economic reform process is much too slow and unfocused. Vientiane also faced increased criticism from the United States and Europe over its human rights record.