Abstract

Introduction Laos in 1996 was uneasy about accepting all the consequences of the New Economic Mechanism (NEM). This was the main message of the Sixth Congress of the Lao People's Revolutionary Party. At first sight, the political forces that oppose rapid economic transformation seem to have reinforced their position. It remains to be seen, however, whether this change will be strong enough to stop ? or at least to significantly slow down ? the reform process and the integration of the Lao economy in the Southeast Asian region. On the other hand, the Sixth Party Congress seems to have strengthened the position of representatives of ethnic minorities in the political ?lite. It is an open question, however, whether this second change will increase the attention paid to remote areas and correct the pro-urban bias of the economic and foreign aid policies, thereby improving the prospects for a more balanced growth in Laos.

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