On the Right Track?: The Lao People's Democratic Republic in 2017

The year 2017 was an important one to assess the performance of the new government of Laos. Prime Minister Thongloun Sisoulith tackled key problems of Lao governance and economy — most notably corruption and illegal logging — earning him both domestic and international approval. However, Laos is still facing numerous socio-economic challenges such as weak legal institutions, poverty, environmental degradation, and a civil society subdued. According to the 8th Five-Year National Socio-Economic Development Plan (2016–20), Lao economic politics is focused on graduating from the status of being a least developed country (LDC), not least through mega projects like hydropower dams, mines and large-scale infrastructure projects — negative social and ecological side effects notwithstanding. China and many ASEAN countries compete in large-scale investment in these fields. The Lao–Chinese railway linking Kunming with Vientiane is a case in point. This chapter gives an overview of political and economic tendencies in the Lao PDR at the beginning of the new five-year cycle.