Pragmatism in the face of adversity: Enterprise reform in Laos

Abstract

Enterprise reform undertaken by Laos during the past fifteen years of economic transition has largely entailed a relatively successful privatization programme for the country’s state-owned enterprises (SOEs). However, problems remain with the larger ‘strategic’ SOEs that continue to operate, and the state-run commercial banks that continue to fund their loss-making operations, despite on-going attempts to ‘commercialize’ the business activities of both. The development of a private sector in Laos has also been slow to gain momentum, although increased emphasis is now being placed on creating an enabling environment conducive for such companies.