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PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY2222 S. Street, N. W. Washington, D. C. 20008 Tel: (202) 332-6416 Fax: (202) 332-4923 |
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PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY2222 S. Street, N. W. Washington, D. C. 20008 Tel: (202) 332-6416 Fax: (202) 332-4923 |
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CONTENTS
NA APPROVED THE NEW CABINET On March 27, 2001, the Seventh Ordinary Session of the National Assembly of the Lao People’s Democratic Republic Fourth Legislature elected the Vice President of the Republic and approved the nomination of New Cabinet members of the Government of the Lao PDR, as listed below. Vice - President: H. E. Mr. Lt. Gen. Choummaly SAYASONE New Cabinet Prime Minister: H.E. Mr. Bounnhang VORACHIT
Minister of Interior:
H.E. Mr. Gen. Asang LAOLY
President of the Lao People's Revolutionary Party Khamtay Siphandone
while presenting the political report at the Seventh Congress of the Party,
stated that "in building the new regime over the past 25 years and
implementing the renovation policy for over the past 15 years, we clearly
see that, despite many difficulties, our potential and position are stronger
than just after the liberation".
He explained that to achieve this end, the country must have a firm basis for the national economy in which agro-forestry, industry and services are closely related in an active and balanced manner; with systematic state-managed market economy having as fundamental factor a gradual shifting towards industrialized and modern economy. Mr. Khamtay Siphandone said: "To accomplish the goals, from 2006 to 2010, we have to create every conditions to push the economy on continual growth with the average rate of at least 7% per year by developing the agriculture and forestry sector simultaneously with development of industry and services, and on the basis of strong agricultural production and effective exploration of focused potentials, slash and burn cultivation would be basically terminated, thus solving the situation of poor families. "From 2001 to 2005, we have to ensure firm continuity of social security and political stability, and the average annual economic growth of at least 7%", pointed out Mr. Siphandone. He added in this connection that at least, more than half of poverty incidents will be reduced from the current figure... Lao people have to be instilled into virtue and understand and respect law, cherish justice and humanitarian and self-reliance spirit. "As for the political sector", he said, "we have to maintain and raise even higher the Party leadership role to make our state more efficient in management", said President Siphandone. "To concretize the aims of the 2001-2005 period, our common tasks are:
increasing unity throughout the Party and people, developing patriotism,
the spirit of independence and self-strength building; exploring and exploiting
local potentials in conjunction with active seeking of international assistance
and cooperation", observed
Mr. Bouathong Vonglorkham, representing the Party Committee of the State Planing Committee on March 12 presented at the Seventh Party Congress the " Draft Socio-Economic development Strategy for 2001-2020, 2001- 2010 and fifth five year Socio-Economic development plan (2001-2005). He said that the socio-economic development from now to 2005 is to ensure continued social tranquillity and political stability, to allow a sustained economic growth, to solve poverty problems for more than a half of the poverty-stricken population; to basically address the problem of slash and burn farming practices and put an end to opium cultivation; to establish some fundamental activities for initial capital accumulation; to further strengthen the business organizations of all forms, primarily state and people's cooperative enterprises; to secure skilled human resources in key subjects and at various levels in order to meet the needs of development in line with the direction on future industrialization and modernization. The macro-economic targets set in the Fifth Five-Year Plan are as follows: To achieve an average increase of 7-7,5% p.a. in GDP growth, of which:
To strive to institutionalize the agro-forestry-industry-service economic
structure
To control the annual inflation rate to stand at one digit.
The population is estimated to reach 5.9 million by 2005, and the average
To guarantee that the set macro-economic objectives be successfully fulfilled, we have identified activities, destined targets in each sector and the demands on investment to realize the projects that have been included in the plan. On investment, he said: "Within the next 5 years, in order to finance socio-economic development activities, we have to focus on raising fund from all sources in society of about 25-30% of GDP annually, of which the public investment shall reach 12-14% of GDP; besides we have to raise funds from the internal and foreign investors and from the population worth of 13-16% of GDP. The estimated composition of investment will account for 60-65% in the economic sectors and whole infrastructure development, 25-30% in the socio-culture domain and 8-10% in other fields. On measures to implement the plan, the Chairman of the State Planning Committee proposed: "To ensure the successful realization of the aforementioned guidelines, tasks and objectives, we have to implement the following measures: Organize the campaign of dissemination and explanation of this plan,
and
Strongly pursue the policy of working at the grassroots in order to establish political bases associated with integrated rural development and poverty eradication through the process of building the province a strategic entity, the district a planning and finance entity and the village an executing entity. Simultaneously, we have to concentrate efforts on training personnel to sufficiently serve the implementation of the Five-Year Plan. The thrust goals of 2001-2010 are to concentrate on improving and expanding
the economic foundation at a steady and firm pace, primarily to intensify
the agricultural production; to put an end to slash- and –burn cultivation
practices and succeed in solving poverty problems; to establish rudiments
of basic industry and develop sufficient human resource in terms of quantity
and quality in order to gradually move towards industrial
The draft plan points out that by 2010, the Lao population will approximately
total 6.7 million; GDP growth shall be striven for an average of not less
than 7% per year. The GDP per capita income is to achieve on average about
US $ 700- 750. The literacy rate of the people aged over 15 years is due
to increase by 84% of the total. The decline of virulent diseases such
as malaria, diarrhea must be succeeded, and 67 year life expectancy of
the Lao population realized.
The Seventh Session of the National Assembly (Fourth Legislature) officially closed on April 10 after weeks of painstaking deliberation over improvements to the country’s legal and political institutions. NA President Samane Vignaket successfully presided over the 13-day session and was delighted by the demonstrated ability of the machinery of the state to be able to put on such a magnificent show. NA members unanimously approved of the nomination of the new PM and other Government members. The session engaged in lengthy consideration of the governmental report on management practices and socio-economic development. They also discussed work done during the first six months and the short-term future of the state budget. The session also reviewed NA activities since the previous session and approved additional work to be completed before the next session. The session successfully approved laws on sanitation, health services and telecommunications. Some articles in the criminal and taxation laws were also examined and adjusted. All agreed that the past six months of national development have proved a fundamental success as the country’s socio-economic system continues to grow. Laos has enjoyed political stability and social order. Its financial situation has remained stable and the management of taxation to line state coffers has been tightened. Other improvements include infrastructure developments, and greater budget flexibility due to an increase in foreign investment. Not to be outdone, the NA discussed current weaknesses in an open and accountable manner. The failure of various economic and cultural sectors to reach their developmental targets, problems with the management of the taxation system, inadequate state investments for various projects, weakening trade practices and community inequalities were all discussed in detail. The social development of backward tribal peoples was also discussed with a view to continuing Government policies towards slash and burn cultivation and opium eradication. Telecommunications laws were the subject of much heated debate at the NA as members discussed in detail the pros and cons of Internet regulation and the management of communications services. International media and the country’s role in the international community were also discussed with a view to strengthening foreign understandings of the Lao nation. Eight articles in the taxation law and some articles in the criminal law were amended to increase the ability of the state to prosecute persons involved in the illegal drug market. The amendments were designed to complement Laos’ cooperation with the international community in defeating the narcotics plague. NA Secretariat Mrs. Pany Yathortou presented the draft resolution of
the IV Legislature, which was subsequently approved by every member at
the session. NA President Samane Vignaket officially closed the session
and declared it a magnificent success, demonstrating the responsible manner
with which members took control of difficult issues. Throughout the session
members practiced their duty to the nation and supported the principles
with which the Party leads the country.
Sisavath Keobounphanh was invited to take post of the President of the Lao Front for National Construction, and was approved by the LFNC Seventh Congress, which closed on April 26 in Vientiane after a three-day session. The 116 members of the LFNC Committee also appointed four vice presidents: Siho Bannavong, who is standing member, Khambou Sounisay, Khampheui Chanthasouk and Tong Yer Thor. The meeting viewed the implementation of the resolution of the Sixth Congress and adopted amendments to the Front’s statute, which will serve as a foundation for the improvement of the Front’s organization at all levels in the new stage. The participants adopted the plan of action of the Front towards 2005,
aimed at mobilizing the nation’s overall strength to fight for the gradual
alleviation of the people’s poverty.
Following the recent adoption by the National Assembly of a Draft Decision on the Lao PDR’s ratification to the Agreement between the Lao PDR and the International Atomic Energy Agency (IAEA) for the Application of Safeguards in connection with the Treaty on the Non Proliferation of Nuclear Weapons (NPT) and its Protocol that the Lao PDR signed in Vienna, Austria on 22 November 1991, H.E.Mr. Khamtay Siphandone, President of the Republic had officially promulgated the said ratification on 29 March 2001. The present ratification of the Lao PDR clearly testifies to the goodwill
and relentless efforts of the nation to cooperate and unite with the international
community in the joint struggle for nuclear non proliferation and disarmament
and in the promotion of confidence building aimed at ensuring international
security and peace. Furthermore, it also reflects the strong commitment
of the Lao PDR to fulfill its obligations vis-à-vis two important
international Treaties namely, the Treaty on the Non Proliferation of nuclear
Weapons (NPT) in 1972 and the Nuclear Weapons Free Zone in Southeast Asia
of so called the Bangkok Treaty in 1995.
Free-market policy was the order of the day at Vientiane School of Policy and Administration, where a workshop on the basics of economics took place. The workshop for provincial officials, which was run by NOSPA, was on "Markets and National Development." Topics included national resource management, the problems of sectorial development in Laos, the theory of market economics and market mechanisms, the role of entrepreneurs in a market economy, the concept of niche markets and the importance of export promotion. The principal lecturer was Prof. Hans U. Luther, senior economic expert at the Lao-German project. The purpose of this workshop was also to test a new curriculum for training
and advisory programs in Lao provinces, which was designed by the Lao-German
Project and NOSPA. Similar workshops using the same curriculum will soon
start up in Saravane, Oudomsay, Khammouane and Luang Prabang provinces.
Japan welcomes plans by Laos to convert to a market economy, Foreign Minister Yohei Kono indicated to Laotian Deputy Prime Minister and Foreign Minister Somsavat Lengsavad. In a meeting at the Japanese Foreign Ministry, Somsavat explained the Lao People's Revolutionary Party decided to promote the conversion to a market economy, strengthen ties with advanced countries and actively appoint young people well-versed in economics to key party posts, the ministry officials said. The decisions were made at the seventh congress of the Party held in Vientiane. In response, Kono was quoted as saying, "It will take time to make the conversion to a market economy widely known among all citizens of Laos, but once they understand, there is no turning back." Kono expressed satisfaction that international support for Laos's economic policies, being carried out under the initiative of the Japanese government, is proceeding smoothly, the officials said. Somsavat thanked Kono for Japan's cooperation and invited Kono to the
country when he visits neighboring Vietnam in July to attend meetings related
to the Association of Southeast Asian Nations, according to the officials.
The Canadian Ambassador to Lao PDR, Bernard Giroux, recently announced Canada's support for a US$ 5,892 Village Health Volunteer first aid capacity building project in southern province of Attopeu. The project will facilitate the training of 100 village Health Volunteers from all five of Attopeu's districts. Apart from receiving five days of basic health care and first aid training, each trainee will be given a first aid kit for use in his or her own rural community. Bernard Giroux stated that Canada is pleased to be able to support primary health care capacity building in rural parts of southern Laos. The Ambassador also commented that, " It is important to train local people living in remote communities so that they are capable of assisting those with health emergencies." The Lao Red Cross in Attopeu province will administer the Canadian grant
in coo-operation with the NGO Health Unlimited and provincial and district
health services.
Forty years have gone by since the founding of diplomatic relations between Laos and China. During this period many great advancements have been made along the road to socialism. The Lao government together with Lao-China friendship Association, the Chinese Embassy and Vientiane residents on April 25 held a gathering at the National Culture Hall to celebrate the anniversary of the establishment of diplomatic relations between Laos and China. At the gathering more than 1000 participants listened to a report on the history of Lao-Chinese relations by the Head of the Foreign Affairs Commission and President of the Lao-Chinese Friendship Association, Mr. Saysomphone Phomvihane. He emphasized the importance of the friendship and cooperation between Laos and China especially during the period of the struggle for national liberation. After the liberation of the Lao People’s Democratic Republic, China continued giving valuable assistance to Laos especially in its economic development. The Chinese Ambassador also addressed the crowd, explaining the necessity of diplomatic relations over the past 40 years. The Ambassador was keen to state that China was prepared to continue strengthening its relationship with Laos in order to protect the peace and stability of the region. In Washington, DC, on Wednesday, April 25, 2001, at the Embassy of the
Lao PDR, the Lao and Chinese missions also organized a seminar to commemorate
the event.
The visit to Laos was considered the start of a new era of close relations between Thailand and Laos, said Thai Foreign Minister Surakiart Sathirathai, at a press conference held at the Lao-Thai Friendship Bridge, to wind up his two-day official visit. During his visit, he informed Lao leaders of the policy of the Thai government under the leadership of Prime Minister Thaksin Shinawatra, pointing out that Thailand attached importance to its relationship with neighboring countries under the principle of non-interference and mutual respect, mutual trust, and problem solving. It is obvious that under this policy Thailand has attached great importance to Laos. The Lao side also viewed the Thai Minister’s visit as the start of a new era of good relations. The two Foreign Ministers have agreed to hold the next meeting of the Joint Commission in Thailand in July, during which the two sides will look at unsolved issues and new developments in bilateral relations. The Thai Foreign Minister was satisfied with the significance attached to his visit by the Lao Government. On April 08, he met with Minister of Foreign Affairs Somsavat Lengsavad and was given a reception in honor of his visit, despite the fact that it was a Sunday. On April 09, the visitors paid courtesy visits to President Khamtay Siphandone, the Prime Minister, the Industry Minister, the Finance Minister, and the Commerce Minister. In his meeting with the Lao President, President Khamtay Siphandone affirmed that he agreed with the Thai Prime Minister’s policy seen as a good starting point for strengthening regular ties between Laos and Thailand. These similar views were shared by the President and the Prime Minister of Laos. The Thai Foreign Minister was impressed and shared the view that Lao-Thai relations should be developed due to similarities in language, culture, religion and ideology. During the visit, the foreign ministers also agreed to the use of a second Mekong bridge to join Laos’ Savannakhet province and Thailand’s Mukdahane province, and the use of Road No 9 through Laos’ central Savannakhet province to Hue and Danang in central Vietnam and the South China Sea. The two foreign ministers agreed to further discuss with Vietnam ways of planning economic development in the region in order to ensure the development of the private sector. Savannakhet and Mukdahane are interested in setting up their free economic zones. These zones will be beneficial to the two peoples, stated Dr. Surakiart Sathirathai. The Thai Foreign Minister stressed that Thai investors were interested in joint investment with the Lao government in various projects such as non-chemical/organic agriculture or the plantation of baby corns or soybeans for exporting to Thailand and other countries. For soybeans, Dr. Surakiart Sathirathai said that each year Thailand imports millions of tons. Thailand could buy soybeans from its neighbors, which are not only cheap but will contribute to the consolidation of economic relations as well. Lao leaders have expressed their agreement with this idea, viewed as a way of helping to create jobs and income for the Lao people. Sharing the view, the Lao Foreign Minister pointed out that if his people earned more income they would have more purchasing power to buy Thai products such as motorcycles, bicycles and other consumer goods. In his meeting with the Lao Industry Minister, the Thai Foreign Minister proposed the two countries join their industrial policies and coo-operate in the production of integral parts for assembly and production for export to third countries. The discussion also covered Laos’ request for the extradition of 28
bandits who raided the Lao border checkpoint of Vang Tao-Chongmek in July
2000.
Recently, the Friendship Hospital received a welcome addition to its lifesaving efforts in the form of new radiology and surgical equipment from the Association Medical Franco-Asiatique (AMFA). This support included the upgrading of post surgery facilities and a
new state of-the-art neuro surgery room with equipment donated by AMFA
worth US$ 100,000. Pharmaceutical Factory No 2 also chipped in 150 million
kip. Dr. Ponemek Dalaloy, Minister for Health said, “coo-operation between
French and Lao medical experts is improving all the time, especially between
the Friendship hospital and AMFA. Our surgery department is very important
because it is the one thing we can do to prevent the deaths of badly mangled
people, most of whom have been involved in vehicle accidents.”
The Hospital Director said “our staff have trained in France and we have persuaded some French medical experts to work with us at the hospital.” The medical professionals promise to contribute to the originality of the health services at the hospital. .
The World Bank approved an IDA credit equivalent to US$25 million to promote the sustainable preservation of the national road network through the development and implementation of financing and road management systems in Lao PDR. The Road Maintenance Project, which is the first phase of a two-part program will increase production efficiency and access to social services, markets, schools, and health centers, while reducing transport cost for goods and passengers, increasing travel mobility of the population, offering opportunities for travel time savings, and mobilizing revenues to maintain roads. The project includes an important capacity building component to strengthen the capacity of institutions dealing with road maintenance activities. And it will help the Lao government in its fight against poverty by improving accessibility and reducing isolation of remote communities and enabling greater access to goods and services, particularly social services and schooling. With roads as the dominant mode of transportation in Lao PDR, the development and conservation of the road network is seen as critical to national and regional integration and to the overall socioeconomic development of the country. At the end of the 1980s the road network was in a total state of disrepair, and while recent investments have improved conditions of parts of the network, other parts remain underdeveloped and in poor condition. Without any intervention, the degradation of both the new and existing network will accelerate in the next few years - which will necessitate more onerous rehabilitation and major repair works, and divert the already scarce resources devoted for the maintenance of the recently constructed roads. The Road Maintenance project, which seeks to address these issues, will
cost US$47.8 million, and will be financed by the IDA credit of US$25 million,
by Government of Lao PDR contribution of US$16.5 million, and by grants
from the Nordic Development Fund (US$5.2 million) and from the Swedish
International Development Cooperation Agency (US$ 1.1million).
Felons all over the country will now think hard before deciding to engage in criminal behavior due to the introduction of new laws approving the use of the death penalty for serious offenses. The recent National Assembly reviewed the country’s criminal laws and decided to stamp down on hard core offenders by introducing the death penalty. The criminal laws were reviewed to ensure that the majority of offenders were able to be re-educated while a few are now afforded the ultimate punishment for their crimes. The NA decided unanimously that the introduction of the death penalty was the only way to maintain peace and justice in Lao society. Vice Justice Minister Ket Kietisack said, “the laws have been improved to reflect the current reality of the country’s rapidly developing economy and culture. In the past many repeat offenders could get away with their crimes and only pay a small fine on occasions when they were caught. Now we are able to do something about these offenders and if these felony is not discouraged by the heavy hand of justice then they will certainly feel it,” he said. The Vice-Minister stressed that law-breakers now had a lot to think about and he was adamant that the new harsh penalties would discourage many felons from carrying out their mischief. An example of the new tough measure is article 51 on espionage, which applies to Lao citizens who are found guilty of divulging sensitive information to foreigners and overseas organizations and so harming the independence, security, economy and culture of Laos. Persons convicted of espionage face fines ranging from 10 to 50 million kip, imprisonment from ten years to life, or the death penalty depending upon the severity of the crime. Article 135 on the production, sale, and use of narcotics has also been altered by the NA to stamp out the illegal trade. This article applies to persons convicted of trafficking heroin, chemicals for drug processing, amphetamines, opium, or cannabis. A person producing, selling, or trafficking less than 100 grams of heroin will be sentenced to a maximum ten years imprisonment and fined a maximum 90 million kip. A maximum 20 years in the plonk and a maximum fine of 500 million kip will apply to offenses relating to 500 grams of heroin. Offenses involving more than 500 grams will receive the death penalty. Offenses involving less than 500 grams of chemicals used in narcotics production will be dealt with via a three to five year gaol term and a maximum 20 million kip fine. Punishments for 500 to 1000 grams of chemicals range from a five to 20 year sentence and a 20 to 50 million kip fine. Felons found in possession of 1 to 10 kg of chemicals will receive a life sentence and a 100 million kip fine. The death penalty will be applied to offenses involving more than 10 kg of chemicals. Similar punishments will be implemented for offenses involving amphetamines. More than 10 kg of amphetamines will attract the death penalty. Persons convicted of using amphetamines will receive six-month gaol terms and sent to re-education centers. Gaol sentences ranging from five to twenty years and fines of up to 50 million kip will apply for persons convicted of trafficking opium. Persons convicted of running opium dens will receive a maximum ten years imprisonment and 20 million kip fine. Persons convicted of cultivating between 3 and 10 kg of cannabis for commercial use will be re-educated and fined a maximum 2 million kip. Gaol sentences of a maximum five years and fines of up to 50 million kip apply to persons found with crops of more than 10 kg. Cannabis traffickers can receive a maximum punishment of seven years imprisonment and a 20 million kip fine. Ket Kietisack said that these tough new measures would do a lot to obstruct the narcotics trade, which is fast becoming a major problem for Laos. The death penalty is now considered an appropriate method of eradicating this problem. NA member for Khammuan province Khammany Inthilath ensured law-abiding
citizens that the new punishments would probably inspire fear in criminals
and prevent them from making their false moves in the first place. The
new criminal laws are variants of widely adopted strategies in countries
such as Vietnam, Singapore, China and France.
The United Nations Drug Control Program will provide a grant for a 4-year project to eliminate opium and reduce opium addiction in the districts of Phongsaly, Boun Nua and Gnot Ou in Phongsaly Province. A letter of intent was signed on Friday at the Presidential Palace by Mr. Soubanh Srithirath, Minister to the President’s Office, and Dr. Halvor J. Kolshus, UNDCP Representative. Located where the opium production concentration is the highest in the three districts, the target area lies on either side of the road between Boun Nua town and Gnot Ou town. The three districts have over 2,800 opium addicts. The area is bounded on the west by the international border with China, and on the east by the Ou River. A target population of approximately 6,230, living in 32 villages has been identifies by the Phongsaly administration. The target area is physically and economically isolated with low level of agricultural techniques, limited crops and low yields. Due to lack of agricultural services and marketing opportunities, as well as extremely limited off farm income sources, rural incomes remain very low. The project is designed to eliminate opium, reduce addiction and eradicate
poverty. Through a participatory village-based approach the project will:
Contributions to UNDP from the Government of the United States of America
have made it possible for UNDCP to extend this grant to Laos PDR.
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