ADB, APT, ARF, ASEAN, CP, EAS, FAO, G-77, IBRD, ICAO, ICRM, IDA,
IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IPU, ISO (subscriber),
ITU, MIGA, NAM, OIF, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO,
UPU, WCO, WFTU, WHO, WIPO, WMO, WTO (observer)
Diplomatic representation in the US:
chief of mission: Ambassador PHIANE Philakone chancery: 2222 S Street NW, Washington, DC 20008 telephone: [1] (202) 332-6416 FAX: [1] (202) 332-4923
Diplomatic representation from the US:
chief of mission: Ambassador Ravic R. HUSO embassy: 19 Rue Bartholonie, That Dam, Vientiane mailing address: American Embassy Vientiane, APO AP 96546 telephone: [856] 21-26-7000 FAX: [856] 21-26-7190
Flag description:
three horizontal bands of red (top), blue (double width), and red with a large white disk centered in the blue band
Economy
Laos
Economy - overview:
The government of Laos, one of the few remaining one-party Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year in 1988-2007 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with a underdeveloped infrastructure, particularly in rural areas. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with support from Japan and China. Electricity is available in urban areas and in most rural districts. Subsistence agriculture, dominated by rice, accounts for about 40% of GDP and provides 80% of total employment. The economy will continue to benefit from aid from international donors and from foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to benefit from lower tariffs on exports. Laos is taking steps to join the World Trade Organization in the next few years; the resulting trade policy reforms will improve the business environment. On the fiscal side, a value-added tax (VAT) regime, slated to begin in 2008, should help streamline the government's inefficient tax system.