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
Bounlieng Phommasouvanh, Ph.D.
Minnesota Department of Education
Abstract
its human resources. Lao PDR is well aware of the critical role of education in the nation’s economic
growth and political stability. The government faces numerous barriers and challenges as it embarks on
the mission of developing its educational system to be relevant to the nation’s needs, accessible to its
masses, and of high quality and efficiency.
The country faces many challenges in its attempt to meet the popular demand for education at the same
time it tries to improve the quality of its education system. The two tasks place the government under an
intense pressure, especially at the time when it relies heavily on foreign aids to accomplish them. Given the
economic condition, the quality of education will inescapably suffer when the government stretches thinly to
expand education at the same time. It is arguably reasonable that the two educational priorities demand
the same level of attention and urgency, given the wide educational gap between the majority and ethnic
minorities and the urgent need to create a critical mass of well-trained manpower to accelerate the pace of
national development. The third priority of education relates to the relevancy of education to the national
economy and the alignment of education and training with the nation’s job market. Education is irrelevant
and inefficient when a graduate is placed in a job not related to the field of his/her training. Not only is it
unproductive and wasteful, this type of practice doesn’t improve the job market for new school graduates
because it doesn’t stimulate and drive the economy.
The government seems serious in its efforts to improve the education system. Further, it has secured
assistance from foreign governments and international agencies to accomplish its goal. It will require hard
work and determination on the part of the Lao government and the counterparts assigned to the foreign
experts to make it work and realize its goal.
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.
Baramy Mithivong
Abstract
After three decades of oppression and repression under a one-party system, there is no rule of law, no
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.
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.
