Economy of Laos

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The economy of Laos is a lower-middle income developing economy. Being a communist state, the Lao economic model bears some resemblance to the Chinese and Vietnamese economies, in that it has implemented market-based economic practices while maintaining a degree of state control and welcoming foreign direct investment. Following the Civil War, Laos established a Soviet-type planned economy. As part of economic restructuring that aimed to integrate Laos into the globalized world market, the country underwent reforms called the "New Economic Mechanism" in 1986 that decentralized government control and encouraged private enterprise alongside state-owned enterprises. As of 2007, Laos averaged 8% a year in GDP growth. It was forecasted that Laos would sustain at least 7% growth through 2019. The key goals for the government included pursuing poverty reduction and education for all children, with an initiative to become a "land-linked" country. This was showcased through the construction of the...

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