Managing Dependency in a Reforming Economy: The Lao PDR

The Lao People's Democratic Republic is one of Asia's poorest, smallest and least studied countries. In 1986, the Lao Government introduced a policy of economic reform ? chin thanakaan mai or new thinking ? and since that date the economy has been undergoing a fundamental and continuing shift towards the market. This article examines the developmental context of economic reform in the country, outlining the constraints and opportunities that present themselves. The chaJJenge of managing Jand-JocJcedness in a dependent and vulnerable country is discussed as a key theme in Laos' development.