Laos Population: 7,019,073

Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang, established in the 14th century under King FA NGUM. For 300 years Lan Xang had influence reaching into present-day Cambodia and Thailand, as well as over all of what is now Laos. After centuries of gradual decline, Laos came under the domination of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina. The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand. In 1975, the communist Pathet Lao took control of the government ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam. A gradual, limited return to private enterprise and the liberalization of foreign investment laws began in 1988. Laos became a member of ASEAN in 1997 and the WTO in 2013.

cabinet: Council of Ministers appointed by the president, approved by the National Assembly elections/appointments: president and vice president indirectly elected by the National Assembly for a 5-year term (no term limits); election last held on 20 April 2016 (next to be held in 2021); prime minister nominated by the president, elected by the National Assembly for 5-year term

highest court(s): People's Supreme Court (consists of the court president and organized into criminal, civil, administrative, commercial, family, and juvenile chambers, each with a vice president and several judges) judge selection and term of office: president of People's Supreme Court appointed by National Assembly on recommendation of the president of the republic for a 5-year term; vice presidents of People's Supreme Court appointed by the president of the republic on recommendation of the National Assembly; appointment of chamber judges NA; tenure of court vice-presidents and chamber judges NA

The government of Laos, one of the few remaining one-party communist states, began decentralizing control and encouraging private enterprise in 1986. Economic growth averaged 6% per year from 1988-2008 except during the short-lived drop caused by the Asian financial crisis that began in 1997. Laos' growth has more recently been amongst the fastest in Asia and averaged nearly 8% per year for the last decade. Nevertheless, Laos remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a basic, but improving, road system, and limited external and internal land-line telecommunications. Electricity is available to 83% of the population. Agriculture, dominated by rice cultivation in lowland areas, accounts for about 25% of GDP and 73% of total employment. Laos' economy is heavily dependent on capital-intensive natural resource exports. The economy has benefited from high-profile foreign direct investment in hydropower dams along the Mekong River, copper and gold mining, logging, and construction, although some projects in these industries have drawn criticism for their environmental impacts. Laos gained Normal Trade Relations status with the US in 2004 and applied for Generalized System of Preferences trade benefits in 2013 after being admitted to the World Trade Organization earlier in the year. Laos began a one-year chairmanship of ASEAN in January 2016. Laos is in the process of implementing a value-added tax system. The government appears committed to raising the country's profile among foreign investors and has developed special economic zones replete with generous tax incentives, but a small labor pool remains an impediment to investment. Laos also has ongoing problems with the business environment, including onerous registration requirements, a gap between legislation and implementation, and unclear or conflicting regulations.

general assessment: service to public is generally improving; the government relies on a radiotelephone network to communicate with remote areas

domestic: mobile cellular usage has slowed as the regulator imposed a strict policy on pricing and competition is effectively discouraged; network performance has suffered because of insufficient maintenance and upgrades

international: country code - 856; satellite earth station - 1 Intersputnik (Indian Ocean region) and a second to be developed by China (2015)

Serving one of the world's least developed countries, the Lao People's Armed Forces (LPAF) is small, poorly funded, and ineffectively resourced; its mission focus is border and internal security, primarily in countering ethnic Hmong insurgent groups; together with the Lao People's Revolutionary Party and the government, the Lao People's Army (LPA) is the third pillar of state machinery, and as such is expected to suppress political and civil unrest and similar national emergencies; there is no perceived external threat to the state and the LPA maintains strong ties with the neighboring Vietnamese military (2012)

southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Thailand but disputes remain over islands in the Mekong River; concern among Mekong River Commission members that China's construction of dams on the Mekong River and its tributaries will affect water levels; Cambodia and Vietnam are concerned about Laos' extensive upstream dam construction