After Sri Lanka Economic Crisis In Laos

Table of Contents

Question

Which ASEAN nation has no maritime boundary?

a) Thailand
b) Cambodia
c) Laos
d) Vietnam

Lao People’s Democratic Republic has a one-party socialist/communist political setup.
The only legal political party is the Lao People’s Revolutionary Party (LPRP) which is headed by President Thongloun Sisoulith.
The head of government is Prime Minister Phankham Viphavanh.

Laos communist regime has chosen to remain aloof from global trade.
Trade with the West is almost negligible, and Laos’ only meaningful trade partners are China, Thailand and Vietnam.
China has debt-trapped Laos while pretending to be its friend. In 2020, Laos had to cede majority control of its electric grid to a Chinese company.
Total Chinese investment in Laos’ power, transport, a border economic zone and other projects already totals over $16 billion.

According to the World Bank, by the end of 2021 the country’s public debt had skyrocketed to 88% of gross domestic product, with foreign debt at an estimated $14.5 billion.
The country’s list of foreign lenders included Chinese creditors, who accounted for a 47% share, reflecting Laos’ close ties with China, which in the past decade has become Laos’ largest lender, investor and trading partner.
In addition, Laos owes 11% of its debt to China from bilateral loans.

India and Lao People’s Democratic Republic (Laos) share longstanding, friendly and mutually supportive relations.
Strategically, Laos is less important bilaterally but more important to India as part of ASEAN.
Bilateral trade between two hovers around $40m where India exports large commodities. India has supported development of Laos by extending Lines of Credit for multiple infrastructure projects.
India-Laos cultural ties are strong with India-Laos Cultural Agreement since 1994. India also has cooperative agreements in the domain of prevention of drug trafficking, promotion of agriculture, S&T, IT and air services.