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Horizon 2000
Is there an oracle in Vientiane? Does anyone have a crystal ball for predicting the economic future of Laos? The answer is a resounding yes! With its printing costs wholly underwritten by Society Shell du Laos, Economic Development in Lao PDR: Horizon 2000 is comprehensively comprised of three parts: I) Review of Past Experience, II) Outlook and Sectorial Polices, and III) Donors' Viewpoints. Moreover, nearly two-dozen specialists (oracles) presented contributions (predictions).
The following chapter headings provide a glimpse of the thoroughness of Dr. Chi Do Pham's editorial abilities: 1) Economic Reforms in Laos: An Unforgettable Experience in a Forgotten Land; 2) Legal and Regulatory Framework: Recent Developments and Prospects; 3) Public Administration Reform in Lao PDR; 4) Lao PDR and the Mekong Sub-Regional Development Project; 5) Foreign Economic Assistance to Lao PDR: Transition from Soviet Aid to other Bilateral and Multilateral Aid.
The introduction was written by Bousbong Souvannavong, Governor, Bank of Lao PDR. Its initial paragraph reads as follows: "The significance of the year 2000 is that this is the horizon for the Government's socioeconomic development plan. This book deals with a comprehensive range of issues that are currently being addressed by the Government as part of this plan. The breadth of the contributions and the range of organizations which the contributors represent are testimony to the fact that development has to proceed on many fronts. The Lao Government welcomes the challenge of creating the conditions conducive to this development."
Two of the books 22 chapters were written by Dr. Chi Do Pham himself. The following paragraphs are unpretentious but commanding examples.
"Laos is called a forgotten land by some in the world press. Also, most Lao officials have the reputation of being keen to learn and listen to different ideas from academics, consultants and visiting missions, but they choose to retain only those suggestions relevant to their situation and implement the reforms at their own pace. A foreign mission or visiting consultant could not avoid some moments of occasional frustration at the slow speed of action or the seeming lack of a time concept.
"Nevertheless, one must be aware of the host country's serious concern. If 'shuttle diplomacy' has failed to prove an efficient tool in political science, senior Lao officials have also refused 'shuttle economics' as a solution for their country's economic adjustment, especially that provided by 'jet-setting' experts and not adapted to local conditions. But, in retrospect, the country carried out in the last few years a successful and timely reform to permit its transition from a centrally planned to a market-based economy. Most particularly, the results have been achieved in a gradual process and well within Laos' famous 'Bo Pein Nhang' ('Never Mind' or 'Take It Easy') philosophy. For this, its experience is to this observer a truly unforgettable one.
"The system of economic planning in the Lao PDR has been undergoing profound changes since 1986 when the Fourth Congress of the People's Revolutionary Party decided to pursue a set of reforms intended to transform its economy into an open market-based system, with an increasingly active role for the private sector in economic decision-making. The economic management system in the Lao PDR is now characterized by a significantly reduced role for the State, which is gradually disengaging from direct productive activities through a program of privatization of most state-owned enterprises, and shifting from central planning to indicative macro-economic planning.
"The role of Government is now confined to providing the necessary macro-economic environment, physical infrastructure and legal framework to encourage and regulate the participation of the private sector. As in other market economies, the State shall continue to provide essential and basic social services to the people, particularly in health and education.
"The main thrust of the Government's future economic policy will be in four key areas. Firstly, the development of financial policies aimed at improving domestic resource mobilization, through continued fiscal consolidation to increase public savings and further banking sector reform to encourage private savings and financial intermediation.
"Secondly, the adoption of strengthened structural policies to expand and diversify the production/export base, with emphasis on accelerating the privatization program, full establishment of a sound legal and regulatory framework, further trade liberalization, and promotion of non-traditional exports.
"Thirdly, improvement of macro-economic institutions, as well as accelerated efforts to train skilled manpower, will aim at alleviating the absorptive capacity problems.
"Fourthly, the implementation of a regional development program and associated sectoral policies will target improved living standards beyond the urban center."
In hindsight on the role and integrity of Shell, it should be noted The Royal Dutch/Shell Group has enjoyed a continuous and successful association with Laos since 1924. In more recent years, Shell's presence in Laos has reflected the growing needs of a county encouraging foreign investment and trade liberalization. During this time, Shell has continued its policy of emphasizing quality products, safety and care for the environment, while also taking an active role in community development.
Shell further advises all interested investors to contact the Foreign Investment Management Committee (FIMC) for additional details about investing in Laos: FIMC, POB 597, Vientiane, Laos: Tel: (856) 21-217020; Fax: (856) 21-215491.
Last, Horizon 2000 (short title) can be purchased for US$20 at the Raintrees Bookshop and The Belvedere Hotel (see pullout map for locations); proceeds become a gift to the Vocational Training Fund overseen by the Lao National Chamber of Commerce and Industry (LNCCI).