Laos - Vietnam, Cambodia, Laos and Northern Thailand - page 749

UNDERSTAND LAOS
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Laos Today
Up until early 2008 it was all going extremely well for Laos, with record figures of foreign
visitors tuning into the buzz about this little nation, which was fast becoming switched on
to responsible ecotourism; newly built hydroelectric power dams; copper and gold mining
concessions; and largely foreign investors keen to climb into bed with Laos' natural re-
sources. Then the economic axe fell on the US and those subprime mortgages started im-
pacting every aspect of Laos' attempt, by 2020, to escape its status as one of the 20 poorest
nations. Suddenly the foreign investors pulled out because of their own lack of liquidity,
and mining concessions collapsed as the price of copper was slashed. Fewer travellers were
arriving, too. Through no fault of its own, Laos looked to be heading back to the dark days
of stagnation.
Times haven't been easy, but they certainly could have been worse: by 2011, despite
global gloom, Laos reported growth of 8%, one of the strongest rates in Asia. And now, as
China flourishes, Laos is reaping the rewards of the two countries' close association. China
has moved in to grab what it can in return for improving Laos' transport infrastructure.
Beijing's Southeast Asian rail network, due to be finished in 2014, will eventually connect
the red giant with countries as far afield as Pakistan, India and Singapore, and to achieve
this the network will pass directly through Laos. Rte 3, from Kunming to Vientiane, via
Luang Prabang, should be ready in the next five years, and, in the next 10 years, it's pre-
dicted that travellers will be able to travel at speeds of up to 400km/h through this beautiful
green country. How this will impact on this sleepy paradise is anyone's guess, but it's all
the more reason for you to visit right now. As US relations begin to improve and the first
rumblings of gay expression make themselves heard in the capital, Laos is on one hand em-
bracing the 21st century, while holding fast to its old guard hegemony.
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