Lao New Economic Mechanism
라오스 신경제체제
A market-oriented reform program expanded at the Lao party’s Fourth Congress in 1986. It adjusted post-1975 administrative controls and collectivization efforts while increasing enterprise and household discretion.
In depth
A market-oriented reform program expanded at the Lao party’s Fourth Congress in 1986. It adjusted post-1975 administrative controls and collectivization efforts while increasing enterprise and household discretion.
Building on policy changes begun in 1979, reforms relaxed price and trade controls, encouraged foreign investment and reorganized state enterprises. Decentralization coexisted with national planning. Under Kaysone Phomvihane, economic reform proceeded without a transition to multiparty politics.
The Library of Congress country study reports that exports financed about 40% of imports in 1991. This measures import coverage, not GDP growth. Weak infrastructure, limited skills, drought-sensitive farming and dependence on aid constrained development.