Development Strategies and Policies:
Economic and Political Impact of Foreign Aid in the Lao People’s Democratic
Republic
March 26, 2005
Waterfront Activity Center
University of Washington, Seattle, Washington
Baramy Mithivong
Abstract
basic freedoms (of expression, the press, association, assembly, mobility), violations of human rights and
religious persecution are the norm. The people continue to have no choice of government and no say in
governance. Worse, to this day their voice is stilled by intimidation and imprisonment while the weapon of
starvation, a hallmark of Stalin’s methods, is used in killing thousands of those who resist, as reported by
Amnesty International. For all the political sacrifices, Laotians are now among the ten poorest peoples of
the world as a result of political controls, economic mis-management and corruption. Three billion dollars
in debt, Laos is one of the ten least developed countries and totally dependent on foreign aid. With
substandard education, the future is bleak. Tens of thousands of Laotians, mostly boys and girls, seeking
livelihood in neighboring countries end up being slave workers and prostitutes.
Those in power in the Lao PDR show no signs of moving towards reform of the failed system. On the
contrary, they are bent on acquiring more international hand-outs to shore up their control apparatus,
plunging the country deeper in the debt trap. The government is broke, the country is not solvent, and the
people are destitute. To make matters worse the multilateral aid community seems just as bent on
continuing to subsidize the same failed regime. Millions of dollars continue to flow into the hands of the
government without any systematic examination of transparency and accountability. Caught in this vise of
the greed of those in power on the one hand and the bureaucratic inertia and indifference of the multilateral
aid agencies on the other, the survival of millions of Laotians hang in the balance, let alone their future.
All views and opinions expressed herein reflect those of the author alone and do not by any means
represent those of nor endorsed by the symposium's organizing committee and its sponsors.
Bolyvong Tanovan, PhD, PE
Abstract
Hydropower is key to development in Laos. Yet, the harnessing of the country's huge hydropower potential
has been slow and full of challenges. This paper will use Nam Theun 2 Project to illustrate the nature of the
real or perceived weaknesses of the project as presently conceived, and provide a picture of the uphill battle
that lies ahead.
