The state of Laos with a planned economy

Mondo Finance Updated on 2024-01-29

Laos with a planned economy.

It is an obscure tropical landlocked country adjacent to China's Yunnan, with an area of 2360,000 square kilometers, which is larger than Henan, is only due to the fact that the population density is only one-fifth of China's, resulting in a small population, which gives us the impression of a small country. Although he is also a planned economy country, because he belongs to the Vietnamese family, his fame is far less than that of North Korea.

According to the United Nations Statistics Division and IMF data, in 1970, Laos, with a population of 2.68 million, had a per capita nominal GDP of US$42 and a per capita real GDP of US$995, which was equivalent to Niger, which ranked 181st in per capita real GDP in 2013, and Central Africa, which had the lowest per capita real GDP in 2013, was US$604.

In the 43 years from 1971 to 2013, per capita real GDP increased by 369% (the per capita real GDP growth rate of the United States, the United Kingdom, and Thailand was respectively % in the same period), reaching 4,666 US dollars in 2013 (14,136 US dollars in Thailand in the same year), and the annual growth rate of per capita real GDP was 366%。Laos' economic starting point is low, and the average economic growth rate should be faster, but the per capita economic growth rate of Laos during this period is significantly lower than that of Thailand, which is mainly due to the relatively slow economic growth rate of Laos before the 90s of the 20th century. At that time, the Soviet Union had not yet disintegrated, and some countries that had studied Xi the Soviet Union had not yet abandoned the Soviet model and had not yet embarked on the road of reform and opening up, and Laos was one of them.

If calculated from 1992, the per capita real GDP growth rate in the 22 years from 1992 to 2013 was 184%, with an average annual growth of 486%, which is 1. more than the growth rate of real GDP per capita over the 53-year span from 1971 to 20132 percentage points, this is the results of Laos' reform and opening up. To make the comparison more significant, we can calculate the per capita economic growth rate for the 21 years from 1971 to 1991, in which real GDP per capita increased by 652% with an annual average of 242%, which is close to the economic growth rate of mature developed countries in the same period, which means that if Laos does not change its social system, its economic growth rate will always be like this, similar to that of mature developed countries (the United States and the United Kingdom are respectively . .24%), it will be difficult to narrow the gap with developed countries.

In 2001, Laos' per capita nominal GDP was US$308 and reached US$601 in 2006, with a per capita nominal GDP growth rate of 95% in five years, with an average annual growth rate of 144%。From 2007 to 2013, Laos' per capita nominal GDP increased by 148% to US$1,594, with an average annual growth rate of 139%, after deducting the depreciation factor of the dollar, is still greater than the per capita real GDP growth rate in the same period, which still reflects this truth, the per capita economic growth rate is faster than that of the United States, and the per capita nominal GDP growth rate is greater than the per capita real GDP growth rate is a common phenomenon.

In 2013, the population reached 6.78 million, an increase of 152% in the 43 years from 1971 to 2013, with an average annual growth rate of 218%, which is the rapid growth rate of the world's population in the same period, which is the embodiment of Laos' backward social development level. If the population growth rate of Laos has not yet reached the point of significant decline, if the cyclical population growth rate changes are not considered, the population growth data of recent years show that the peak population growth rate of Laos should be 2 in 1991 (real GDP per capita in the same year was 1644 US dollars).955%, in 2011 (real GDP per capita of $4,146 in the same year) population growth has dropped to less than 2%, and nearly a third lower than the peak population growth rate in the 90s of the 20th century, which is not a small decline. There is no doubt that the population growth rate of Laos will gradually decline as per capita income increases. It is the increase in affluence that has brought about the decline in population growth, and it is not the decline in population growth that has led to an increase in affluence, this is the logic that we must be clear.

The fertility rate in Laos in 2014 was 290。Laos, with a population growth rate of nearly 2%, has a high fertility rate, which is a normal phenomenon.

The planned economy of Vietnam did not have time for a collectivization or nationalization campaign on its land, and avoided a course similar to that of the Great Famine that occurred in the Soviet Union or Cambodia.

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