Laos: The Transformation of Periphery Socialism

Abstract

As a landlocked country with a sparsely populated hinterland, politicized ethnic identities, and a history of a weak central power, Laos struggles with unfavorable circumstances for economic development and is a case of peripheral socialism. Since the mid-1980s, the LPRP has de facto abandoned its socialist experiment and is searching for new sources of legitimacy. It is no longer a revolutionary party striving to realize a utopian communist society but has become a ruling party looking to perpetuate its rule and stabilize the political status quo. Today, opaque decision-making procedures persist and weak government revenues due to inefficient institutions, widespread tax evasion, and persistent corruption have resulted in weak administrative capacity and a low quality of public services. This has limited the government’s ability to provide the wider population with public goods like universal access to education and health and social security, amplifying problems of socioeconomic inequality. The privatization of state enterprises owned by the military, party cadres, or their family members; legal reforms in order to strengthen government accountability and rule of law; and a conclusive anti-corruption policy are pressing challenges for political and economic transformation. However, reforms in these areas would threaten opportunities for self-enrichment by those elites whose political loyalty is essential for regime survival—especially cadre capitalists, military officers, and co-opted businessmen—and are therefore unlikely to succeed. This chapter provides a systematic overview of the political actors, institutions, and dynamics of Laos’ political system and summarizes its history and recent developments.