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Lao People's Democratic Republic

1. 2. 3. 4. 5. Education Healthcare Basic infrastructures Encourage investment Reduce corruption

Education
In 2005, the literacy rate in Laos was estimated to be 73% (83% male and 63% female) The adult literacy rate exceeds two thirds. In 2004 the net primary enrollment rate was at 84%. Census data from 1995 reveal that 23 percent of the Lao never went to school as compared with 34, 56, and 67 percent for Phutai, Khmu, and Hmong. Among two of the smallest ethnic groups, 94 percent of the Kor and 96 percent of the Musir never attended school. The quality of instruction tends to be poor, and nearly half of those who enter do not complete the Primary cycle.

Healthcare
Male life expectancy at birth was at 60.85 and female life expectancy was at 64.76 in 2012. Healthy life expectancy was at 54 in 2006. In 2008, 43% of the population did not have access to an improved water resource. Government expenditure on health is at about 4% of the GDP. Its amount was at US$ 18 (PPP) in 2006 Although diets are not grossly inadequate, chronic moderate vitamin and protein deficiencies are common, particularly among upland ethnic groups.

Basic Infrastructures
Much of the country lacks adequate infrastructure. Laos has no railways, except a short link to connect Vientiane with Thailand over the ThaiLao Friendship Bridge. The major roads connecting the major urban centres, in particular Route 13, have been significantly upgraded in recent years, but villages far from major roads can be reached only through unpaved roads that may not be accessible year-round. There is limited external and internal telecommunication, but mobile phones have become widespread in urban centres. In many rural areas electricity is at least partly available. Laos has made particularly noteworthy progress increasing access to sanitation and has already met its 2015 Millennium Development Goal (MDG) target. Laos' predominantly rural (68%, data 2009, source Department of Statistics, Ministry of Planning and Investment) population makes investing in sanitation difficult. In 1990 only 8% of the rural population had access to improved sanitation. Access rose rapidly from 10% in 1995 to 38% in 2008. This success is in part due to small-scale independent providers emerging in a spontaneous manner or having been promoted by public authorities. Laotian authorities have recently developed an innovative regulatory framework for Public-Private partnership contracts signed with small enterprises.

Encourage Investment
The Lao economy depends heavily on investment and trade with its neighbours, Thailand, Vietnam, and, especially in the north, China. In 2011, the Lao Securities Exchange began trading. In 1989, the Lao government reached agreement with the World Bank and the International

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Monetary Fund on additional reforms. The government agreed to expand fiscal and monetary reform, promote private enterprise and foreign investment, privatize or close state firms, and strengthen banking. In addition, it also agreed to maintain a market exchange rate, reduce tariffs, and eliminate unneeded trade regulations. A liberal foreign investment code was enacted and appears to be slowly making a positive impact in the market. The Foreign direct investment; net inflows (% of GDP) in Laos was last reported at 4.80 in 2010. In recent years, the economy is taking advantage of international aid and foreign investments in food processing and mining. The country remains highly dependent on international aid . The budget balance has been in chronic deficit, and public debt has hovered at around 60 percent of GDP.

Reduce corruption Laos scores only 2.2 in the Corruption Preceptions Index. The economys overall legal framework is inefficient and lacks transparency. The rule of law is undermined by political interference, and rampant corruption corrodes the foundations of economic freedom. The rule of law remains weak and uneven across the country. The judicial system is inefficient, and protections for property rights are not enforced effectively. The judiciary lacks transparency and is burdened by political interference from the executive. Contract enforcement can be lax. Pervasive corruption continues to cause concern, severely undermining the foundations for growth. The efficiency of the regulatory environment has improved. Launching a business and completing licensing requirements have become less burdensome and costly. Despite some progress, an underdeveloped labor market does not provide dynamic employment opportunities for the growing labor supply. Inflation has been rising. The government influences many prices through state-owned enterprises and utilities. The trade weighted average tariff rate is burdensome at 13.2 percent, and complex non-tariff barriers further constrain freedom to trade. Laos has tried to attract more foreign investment, but the overall investment regime lacks transparency