Laos

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Introduction Development Challenge Other Donors FY 2002 Program Activity Data Sheets Summary Tables Program Summary Strategic Objective Summary USAID Search: Laos Last updated: 53     Introduction Laos is one of the poorest and least developed countries in East Asia. In 1998, its 5.1 million people had an estimated per capita income of just $320. Social indicators in the Laos, among the worst in the region, are comparable to those of sub-Saharan Africa, e.g., infant mortality in Laos is 96 per 1,000 births, compared with an average of 92 in Sub-Saharan Africa. Agriculture remains the economic mainstay, contributing 53 percent of the Gross Domestic Product (GDP) and employing over 80 percent of the labor force. Laos remains the world's third largest producer of illicit opium. USAID assistance to Laos is provided under two programs: the Laos Economic Acceleration Program for the Silk Sector (LEAPSS - initiated in 1998 through a Congressional earmark) and the War Victims and Displaced Children program, funded through the Leahy War Victims Fund (LWVF). LEAPSS was designed to build on development activities of the Lao American Crop Control Project-premised on the observation that opium in the region is largely grown for economic security. Yields from rice, the staple crop, are insufficient to feed farmer families. Because of its high value and resistance to spoilage, opium has been the best cash crop available to isolated farmers. Inadequate transportation infrastructure and uncoordinated economic policies have prevented silk production from reaching its full potential. Consequently, the production of high quality Lao silk is insufficient to meet demand in Vientiane. Silk weavers in the capital must use imported silk although they would prefer to use Lao-produced varieties. In 1990, USAID began providing assistance for the prosthetics and orthotics needs of the disabled in Laos through the LWVF. In 1995, the emphasis was shifted to strengthening activities to prevent unexploded ordnance (UXO) accidents and to strengthening the medical and surgical treatment capabilities in Xieng Khouang province. Development Challenge As Laos transitions from a centrally planned and controlled economy to a more market-driven environment, technical assistance, training, and investment in productive areas of the agricultural sector are needed. USAID is helping to build a strong market niche for the silk sector in targeted rural areas. Frequent UXO accidents in the northeast Lao provinces of Xieng Khouang and Houaphan are reminders of heavy bombings during the Vietnam War. USAID is strengthening UXO accident prevention in heavily affected northern provinces of Xieng Khouang, Houaphan, Savannakhet and Salavane, and is improving medical and surgical treatment for UXO victims in Xieng Khouang province. Other Donors USAID coordinates its activities with Japan, Germany, Sweden, France, Australia, and Norway, which support activities in Laos focused on education, health, and rural development. The World Bank and the Asian Development Bank focus on the financial sector and state-owned enterprise reforms needed to create an enabling environment for private sector development. FY 2002 Program Assistance in FY 2002 under LEAPSS will continue to focus on increasing the volume and profitability of silk production, focusing on Xieng Khouang and Houaphan provinces. The LWVF activity will continue to focus on medical and educational activities. These include upgrading the medical, surgical, and emergency services of district and provincial Lao medical personnel and institutions in Xieng Khouang Province, improving the technical capacity of the medical and surgical staff at provincial and district hospitals, and increasing UXO awareness among primary school children. In addition to these programs, the Asia and Near East Bureau's Regional HIV/AIDS and Infectious Disease program is active in Laos, as is the Bureau's East Asia and Pacific Environmental Initiative, which strengthens biodiversity conservation. A Global Bureau democracy and governance activity helps legal systems to operate more effectively and to embody democratic principles and protect human rights, and a Global human capacity development activity helps to increase the contributions of institutions of higher education to sustainable development. Activity Data Sheets 439-002 War Victims and Displaced Children 439-004 Laos Economic Acceleration Program for the Silk Sector Country Background Information Resources     CIA Factbook   Library of Congress National Geographic Country Maps   State Dept. Country Information

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