The agricultural development policy and WTO accession of Lao PDR

Abstract

The New Economic Mechanism was introduced in 1986 and since then the Lao Government has geared the country towards a market economy, encouraged the development of the private sector and decentralised management. Taking into account the fact that agriculture and forestry form the back bone of the country’s economy, the government has employed a two-pronged socio-economic development approach, one for the uplands and the other for the lowlands. In the former case the focus is on self-sufficiency in food, agricultural diversification and conservation of natural resources, while in the latter case it is on commercialised agriculture production, using agricultural intensification to both maintain the already existing market momentum and trigger industrial sector development, particularly agro-industry. An area-based approach is adopted to facilitate this development. Also, the government has committed itself to eradicating poverty and ridding the country of its LDC status by the year 2020. Show more