Editing Economy of Laos (section)

==History==
Seizure of power by the Communists resulted in the withdrawal of mainly American external investment, on which the country had become dependent as a result of the destruction of domestic capital during the Indochina Wars.<ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=297|isbn=9781107507180}}</ref>

With the [[revolutions of 1989]] in [[Eastern Europe]] and [[Dissolution of the Soviet Union|the Soviet Union]], in 1991, the PDR Lao government reached an agreement with the [[World Bank]] and the [[International Monetary Fund]] on reforms. The government agreed to introduce fiscal and monetary reform, promote private enterprise and [[foreign direct investment|foreign investment]], privatize or close state firms, and strengthen banking. It agreed to maintain a market exchange rate, reduce tariffs, and eliminate unneeded trade regulations. A liberal foreign investment code was enacted. Enforcement of intellectual property rights is governed by 2 Prime Minister's Decrees dating from 1995 and 2002.<ref>[https://web.archive.org/web/20080222225404/http://www.ecap-project.org/how_to_enforce_your_ipr/laos.html Laos]</ref>

The economy continues to be dominated by an agricultural sector operating largely outside the money economy and in which the public sector continues to play a dominant role. A number of private enterprises have been founded in industries such as [https://web.archive.org/web/20100803012556/http://www.laohandicraftgroup.laopdr.com/ handicrafts], [[Beerlao|beer]], [http://www.daoheuangcoffee.com/ coffee] and {{usurped|1=[https://web.archive.org/web/20010124180700/http://www.laohotelgroup.org/ tourism]}}. With [[United Nations Industrial Development Organization|United Nations]], [[Japan International Cooperation Agency|Japanese]], and [[Deutsche Gesellschaft für Internationale Zusammenarbeit|German]] support, a formerly state-controlled [[chamber of commerce]] aims to promote private business: the [http://www.laocci.com/ Lao National Chamber of Commerce and Industry] and its provincial subdivisions.<ref>[http://8km.de/category/laos 8km.de, LNCCI]</ref>

A round of state-owned enterprise reform in 2019 aims to ensure that the remaining SOEs become profitable ventures that are efficient and sustainable sources of income for the national treasury. These measures include closing unproductive enterprises, ensure businesses in which the state has investments are reformed into profitable ventures, and reduce corruption. As of 2019, the State-Owned Enterprise Development and Insurance Department of the Lao government has 183 enterprises under its supervision.<ref>{{cite web |author=<!--Not stated--> |date=8 January 2019 |title=Laos to set state-owned enterprises on path to profitability |url=http://annx.asianews.network/content/laos-set-state-owned-enterprises-path-profitability-89378 |url-status=dead |archive-url=https://web.archive.org/web/20200804141042/https://annx.asianews.network/content/laos-set-state-owned-enterprises-path-profitability-89378 |archive-date=4 August 2020 |access-date=25 September 2019 |website=Asia News Network }}</ref>

Laos faced an economic crisis in 2022. Caused by the [[COVID-19 pandemic in Laos|COVID-19 pandemic]] and [[external debt]] primarily from China, it escalated into [[inflation]] and a [[debt crisis]], bringing the country to the brink of [[Default (finance)|default]].<ref>{{Cite web |title=Laos economic crisis intensifies amid massive debt – DW – 08/09/2022 |url=https://www.dw.com/en/laos-economic-crisis-intensifies-amid-massive-chinese-debt/a-62758725 |access-date=1 November 2022 |website=dw.com |language=en}}</ref> A World Bank report finds that the economic instability "largely results from low revenue and accumulated debt. There is moreover a need to improve the efficiency of public expenditure and tackle the potential costs of state-owned enterprises and public-private partnerships.” The [[Lao kip]] currency value has fallen and inflation remains higher than before the pandemic. The same World Bank report states that "the main factor in the kip’s falling value has been the lack of foreign currency available (...) a result of the need to repay large external debts, despite some deferrals, and limited capital inflows." The per capita GDP of Laos has gone down from $2,595 in 2021 to $1,824 in 2023 because of the kip’s depreciation.<ref>{{Cite web |date=November 2023 |title=Lao Economic Monitor, November 2023: Fiscal Policy for Stability - Key Findings |url=https://www.worldbank.org/en/country/lao/publication/lao-economic-monitor-november-2023-fiscal-policy-for-stability-key-findings |url-status=live |archive-url=https://archive.today/20231221123315/https://www.worldbank.org/en/country/lao/publication/lao-economic-monitor-november-2023-fiscal-policy-for-stability-key-findings |archive-date=21 December 2023 |access-date=21 December 2023 |website=World Bank |language=en}}</ref><ref>{{Cite web |date=18 December 2023 |title=Laos' Economic Woes Will Continue In 2024 |url=https://thediplomat.com/2023/12/laos-economic-woes-will-continue-in-2024/ |url-status=live |archive-url=https://archive.today/20231221061925/https://thediplomat.com/2023/12/laos-economic-woes-will-continue-in-2024/ |archive-date=21 December 2023 |access-date=21 December 2023 |website=The Diplomat |language=en-US}}</ref><ref>{{Cite news |date=8 October 2023 |title='I feel hopeless': Living in Laos on the brink |language=en-GB |url=https://www.bbc.com/news/world-asia-66924300 |access-date=21 December 2023}}</ref>