S.M.I.L.E. Project
(Supporting Multitudes In Life & Education)

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Our Mission:

The mission of the SMILE Project is to offer FREE education, nutritional aid, and healthcare assistance to impoverished, abandoned, orphaned, and underprivileged youth, as well as young Buddhist monks and novices, all of whom lack funds and/or resources for quality education and nourishment.  They are desperate to learn English and computer skills in an effort to break the cycle of poverty and create economic mobility for themselves, their families, and indeed whole communities.

Founder/Administrator/Teacher, Michael Sebastian, of the SMILE Project is currently teaching in Luang Prabang the UNESCO world heritage site and former capital of Lao P.D.R., or Laos as it is commonly called.

The project is committed to sharing heartfelt knowledge so that educational gains not only activate the mind, they are also felt and understood in the depths of the heart, and shared from there with one's whole being, and indeed with the entire universe.

Dear Friends,

     My name is Michael, and I am a teacher in Luang Prabang, the old capital of the country of Lao (or Laos as it is often called).  I offer FREE classes to impoverished, abandoned, and orphaned youth, as well as young Buddhist monks and novices.  My students usually call me Ajaan Michael because “ajaan” is the Lao word for teacher.

     In 2008, after my first visit to Lao, I created the S.M.I.L.E. Project (Supporting Multitudes In Life & Education).  My mission is to offer FREE education, nutritional aid, and healthcare assistance to impoverished, abandoned, orphaned, and underprivileged youth, as well as young Buddhist monks and novices, all of whom lack funds and resources for quality education and nourishment, and are desperate to learn English language and computer skills in an effort to break their cycle of poverty and create economic mobility for themselves, their families, and indeed whole communities.  The project is committed to providing education that activates the mind and empowers individuals to achieve their full potential, while maintaining compassion for themselves and others to create a stronger, happier, and more supportive global community.

     I didn’t originally plan to come to Luang Prabang at all.  I had lived in San Francisco for about 20 years and was doing management and administrative consulting for medical and dental practices.  I also had an alternative healing and life-coaching business, through which I taught meditation and Buddhist dharma to assist others in living from the heart, cultivating compassion, patience and tolerance, embodying peace, acting with kindness, working together, and serving those in need.

     More and more I considered becoming a monk to deepen my own personal meditative practice and continue teaching, so I planned a two-week trip to Southeast Asia to research monastic life by visiting active Buddhist temples.  I travelled mostly in Thailand and didn’t intend to visit Laos, yet a friend recommended it since I would be so close.  I was reluctant, though he convinced me, so I planned two days there.  When I arrived in Luang Prabang, I met a couple of young novice monks at a temple and they were very eager to attempt a conversation in English with me using their very limited ability.  I took them to a bookstore and bought them each an English book and they wanted to take me right back to the temple and practice their reading with me.  I spent the whole two days with them at the temple and never saw anything else in Lao.  After the second day, when I had to leave, they put their hands together and bowed in the traditional Lao “nop” saying, “Please, will you come back and teach us English?”  I felt very appreciated and welcomed.  Their openness and sincerity allowed my own heart to open and listen more deeply.   I told them that I would possibly make another trip to Lao when I had vacation time again the next year, though I made sure they understood I could not promise that it would happen.  Meanwhile my heart reminded me every moment of the deep connection that I felt instantly with the place the people, and especially the monks and novices at the temple whom I found deprived of the educational opportunities they are so deserving of, and so eager to receive.

     Many students in Luang Prabang … many monks and novices at the temple … come from very poor families in the countryside that are unable to educate, let alone feed, their many children.  Large numbers come to Luang Prabang in hope of being admitted to a temple as a novice, so they can get food and a greater opportunity for education.  Space in temples is very limited, and without connections, finding a temple is a great challenge.  Many are forced to return to their villages with lost hope of a brighter tomorrow.  Aside from the students that become novices, there are also many impoverished youth who ride dilapidated bicycles from the countryside for over an hour each way to study in Luang Prabang.  They come early in the morning and study without eating all day and return home often after midnight, only to repeat this ritual after just 4 or 5 hours of sleep.

     In Lao, even the public schools charge tuition, so although students may have the ability to get to the town, their parents are rarely able to afford school fees.  When the parents send a child to school, he or she is expected to come home and teach their siblings.  At public schools, English class is generally only scheduled for two hours per week, and once per month that period is taken up by an exam.  So assuming the teacher is never absent, which is far from reality to say the least, students get at most 6 hours per month of English instruction from teachers whose English even I can not understand, which is certainly not the fault of the teachers.

     There are only a handful of native English speaking teachers in Luang Prabang, and their classes are only affordable to the wealthy elite.  Many foreign tourists in Luang Prabang do volunteer work at various schools and organizations.  The kids love it, and often create quick bonds, however the volunteers are always short-term, so these bonds aren’t allowed enough time to develop to the point where the students feel safe enough to really open to deeper issues that require attention, and instead kids are constantly being torn away from these connections, which is very difficult.  The orphans and other precariously situated youth are especially re-traumatized by this constant re-experiencing of abandonment.

     For all these reasons and more, after my first visit to Lao, I made it my personal goal to provide a FREE and stable learning environment here.  I wanted kids to have a long-term teacher with whom they could begin to feel safe, find their confidence, and really open and grow and learn … not just English, but also about life.  In addition to English, I now teach computer classes, and real life stuff like how to open a bank account, how to get an ID, driver’s license, and passport, how to write a resume or CV, I teach about teamwork, problem solving, goal planning, budgeting, and much more.  I also like to involve tourists in class for conversation practice with students, and also to allow students to learn about other cultures and peoples, helping them become more worldly without even leaving the classroom.

     I began the S.M.I.L.E. Project teaching only monks and novices while still living and working in San Francisco.  I donated a few computers and phones, so that I could teach students over the Internet and phone from the USA.  I visited Lao as often as possible to teach in person and still my students consistently requested that I come to teach more often and for longer periods.  Over 10 years ago, I taught English to villagers on the island of Rarotonga in the South Pacific, though I never got certified, so I enrolled myself in a program at University of California Berkeley for certification.  In 2010, when I completed my certification, I left my job and home, sold almost all of my belongings, and moved to Lao indefinitely to work on the S.M.I.L.E. Project and teach FREE classes full-time.  It felt like becoming a monk of sorts, and some of my students tell me I am just like a monk except for the robes.  They call me a lay-monk.  I still may become a monk at some point in time, though I feel like I have in my heart already.

     Lao students are incredibly shy, so one of my many tasks is to encourage them to speak whatever words they know as often as possible.  I do my best to create classes that are as much fun as they are educational.  My classes have grown to include, in addition to monks and novices, as many, if not more, lay-students, who have been abandoned, orphaned, or are simply from very poor families in the countryside and actually have even less educational opportunity than the monks and novices at the temples.

     None of my students pay anything for my classes. The S.M.I.L.E. Project is maintained by funds gifted by my former meditation students, friends, family, and a few other supporters.  At present the amount of regular donations is not sufficient to keep the project going.  We are extremely underfunded and consequently I have used up all of my own savings from my entire life and have had to borrow money to keep the project going.

     Hopefully this website will raise your awareness about the situation here in Lao and what the S.M.I.L.E. Project is doing, and perhaps you will find it in your heart to contribute to our continued success in improving educational opportunities for Lao youth.  After all, they are just like you!  They want a proper education, to make a difference, to make their families proud and to just be able to SMILE at the end of each day.

     Please email to info@SmileProject.US if you would like more information or have questions.

Offer Your Support


About making DONATIONS:

     Donations are eligible for tax deduction through our fiscal sponsor, ERI, under 501(c)3 non-profit federal tax number 30-0029920.

     Please note that donations through PayPal can be made with most major credit cards or direct debit accounts.  If you are not familiar with PayPal, or simply prefer not to use PayPal, you may also donate by several other methods:

     Personal Check
     Business Check
     Cashier's Check
     Online Check
     Money Order
     Western Union (in person or online)
     Wire Transfer

Please email to info@SMILEproject.US to inquire about these donation methods, or to donate by PayPal click the link below.

to DONATE click here

Donations are tax deductible for US citizens
501(c)3 Non-Profit tax number 30-0029920

For information about our fiscal sponsor and the other great projects they support, click the link below:

S.M.I.L.E. Project Wish List:

Clicking this link brings you to our wish list on Amazon's website.

There is no specific order to the items listed there, so if I have not added comments to an item you are looking at, please feel free to ask me about it by email to info@SMILEproject.us

If you prefer not to choose from the list you can always send an amazon gift certificate instead.

Also, please understand that shipping to Lao is quite costly, so I only add items to the wish list that are not easily available in Lao.  You may send gifts from the wish list to S.M.I.L.E. Project, P.O. Box 371, Swampscott, MA 01907 and from there my Mom will ship them to Lao when there are enough items to fill a 12"x12"x6" flat rate box which costs almost $1000 to ship.  Donations towards postage are greatly appreciated.  And if you know anyone going to Lao with luggage space to spare, let me know.


Look at what the SMILE Project has been doing!

Click below to view articles about us:

Swampscott Patch Article about SMILE Project

A Tourist Meets the SMILE Project 2012

More than a classroom experience

Sponsoring a student for a 4 year University degree

     Many people choose to sponsor an individual student to attend university, so I have set up a sponsorship program to make that possible and add more SMILEs to Lao youth!  Below are the 2015 approximate average yearly fees for attending university at most schools in Lao, plus necessary expenses.

Tuition = $200 per year

Uniforms = $150 per year

Text Books = $50 per year

Notebooks, pens, pencils, and other school supplies = $30 per year

Backpack/book-bag = $20

School ID = $10

Special school event fees = $50 per year

Xeroxed handouts, exam fees, miscellaneous school fees = $50 per year

Transportation = $240 per year

Medical expense = $100 per year

Housing = $600 per year

Food = $1000 per year (less than $3 per day)

Clothing = $225 per year

Optional Computer = $500

     I assist students in finding at least part-time work while they are studying.  This is not a simple task since the large majority of Lao employers do not offer part-time jobs.  However, employers are experiencing great difficulty in finding English speaking staff, which is a must in Luang Prabang where I live and teach.  Upon introducing my students to employers, the employers are so impressed with their English speaking and understanding that they are usually willing to offer them part-time employment, so, perhaps, I am helping to change the tides.

     On the other hand, the wages in Lao are so low that it is almost not worth taking the time away from their studies to work, except for the purpose of learning responsibility, accountability, and getting work experience.  Please understand that students working while studying do not earn enough to cover all the expenses mentioned above.  Not even close!  Given the amount that an English speaking student can earn, it’s a wonder they have enough to survive … and the reality is that many don't.

   You will notice the total expenses per year listed above (not including the optional computer) come to $2725 per year, or $10,900 for all 4 years of university study.  Students are expected to pay through work earnings or family assistance for most of their needs, so the amount requested of sponsors to cover one student for the full 4-year study program is only $2800 out of the full $10,900 for their 4-year degree program.  That comes to only $700 per year, or $58 per month to change a life.  Given the low wages in Lao, even students working full time would not earn enough to cover all of their expenses.  Juggling work with a full-time university class schedule, and finding time for homework and studying, is even more of a feat!  It is easy to see why so many are desperately in need of your assistance.  Even with a sponsor for their education, life is a daily struggle for Lao youth!  Please consider lending a hand today to brighten their future … one child at a time.  Without you, many simply have NO CHANCE.

     For those unable to donate the $2800 sponsorship, you are welcome to make monthly or yearly installments as you choose, and once $2800 is accumulated, one more student will be sponsored to begin university.  Waiting for the full four year funding is important because students in Lao have experienced so many traumas from abandonment and other issues that I do not want to risk re-creating trauma.  If sponsors were to discontinue funding due to their own unexpected financial challenges (or any other reason), students would be forced to quit school before attaining a degree.  This would leave them in a very precarious position and create a lack of trust in sponsorships, and also the projects that offer them, as well as mistrust in general from the families of the student’s and the Lao populus.  That is certainly not what I am choosing to create, so only complete 4-year sponsorships are offered to protect all involved from creating anything but a positive atmosphere for assisting in the education of Lao youth.

Thank you for your understanding, and compassion in supporting and joining in my efforts!  Please do not hesitate to contact info@SMILEproject.US with any questions or concerns you may have.

Here is something written by one of my students that may help you understand why I do what I do ...

     My name is Novice Onkeo Sulinda.  I live at Wat Saylom in Luang Prabang, Lao.  I was born in Oudomxai province and I am now 17 years old.  I have one older brother and three younger sisters in my family.  We have seven people each others.  My parents are a farmer and they also take care of animals and planting and fruit trees in the garden for selling in the market and I was help these career with my parents for five years ago.  Now I was become a novice in the temple for 4 years and now I am still a novice.  In the morning I study English at Mannivanh College and in the afternoon I study at the Buddhist school.   I would like to thank you for supporting the SMILE Project so that Michael can come to Lao to help me and other novices and monks to improve our English, learn about computers, and also practice meditation with Michael and learn more about different meditations that Michael will teach us.

     When I was kid my life so difficult to live and my family stayed by live from hand to mouth it’s so hard for me to study in the school as other the friends Because my family we have so many people each other such as my parents has 7 people children I am second people and my parents cannot send every people to study in the downtown because my parents must use a lot of money for sending in school for us, an actually my family just only enough for living because in my hometown it’s really the countryside and also difficult to make a good job or production and cultivate because all of areas in my village it’s around by the high mountains and jungle forest it is not flat for making the garden or sometime we must look for the appropriate area or land to make a garden or planting some vegetables however my family we stayed by Right livelihood and Right action.

     I am very wonderful that you sent Michael to Lao to help me in my learning and studying such as computer and English and grateful to you for supporting him to come to Lao.  Please allow me to thank you and to wish you happiness, health, well-being, and long life.  I think I can be more successful in my studies with help from Michael.  He has been helping me a lot with my pronunciation so that when I speak with foreigners they can understand me better. Michael is a person who can make teach me many things for education and about how to make a good living.  I am very proud to be his student and call him Brother because it means so very much for me. 

     I don’t know how I can thank you for sending Michael to Lao.  Since I have known Michael I have new things come to my life.  For example, I can speaking English with other people who’s from abroad and foreigner, and also I have learned about using internet and some program in the computer. 

     Finally, I don’t have anything to give you, I have only my blessing and wishing you to have a good day.


Novice Onkeo

About Laos


Population = 5.76 million
Land mass = 91,428 square miles
People per square mile = 63
Life expectancy = 56.3 years
Literacy rate = 55%
Access to safe water = 51%
Average annual income = $500 us
Buddhist = 65%
Animist = 32.9%
Christian = 1.3%
Other Religions = .8%
Under age 5 mortality rate = 75/1,000
     Lao Peoples Democratic Republic (dubbed Laos by its former French colonizers) is simply called Lao by its inhabitants.  The people and language are also called Lao.  Lao is a small communist country inhabited by 5.76 million people (latest estimates), has a total land area of 236,800 sq.kms, stretching more than 1700 kms from north to south and between 100-400 kms east to west. It is a land-locked and mountainous country in the centre of the Indo-China peninsula bordering China and Myanmar in the north, Vietnam in the east, Thailand in the west and Cambodia in the south. The 1865 km stretch of the Mekong river, one of the longest rivers in the world, defines the parts of its borders with Myanmar and Thailand, and also serves as a traditional link for Lao to Thailand and Cambodia. The Mekong River forms much of Lao's border with Thailand and flows for nearly 1,000 miles through Lao. The Annamite Mountains stretch for 1,300 miles along the eastern border with Vietnam. The terrain consists of heavily forested rugged mountains in the northern and central provinces, with some plains and plateaus in the south.

     The French, when they seized power, stayed too short a time to place any priority on education. Villages in Lao are often so small - with a maximum of five or seven houses situated as far as twenty five miles from their closest neighbor - that it has not seemed practicable to have a school for each village. There is perhaps 55% literacy. The one University in Vientiane has a faculty of medicine, architecture and engineering, in addition to various arts subjects. Degrees are awarded up to graduate level.

     Lao is the official language of the country and is spoken by 95 percent of Lao people. French is still spoken by some of the elderly Lao, and English usage has increased tremendously in recent years. English is the most studied second language in Lao, especially in the former capitol city of Luang Prabang which became a UNESCO world heritage site in 1995.  English is the key to success for all Lao people in Luang Prabang.  Many Lao living in the highlands speak a variety of ethnic languages. The Lao people make up 55 percent of the population, while members of the Khmu and Hmong groups represent nearly 20 percent of people. More than 120 other ethnic groups are also present, including the Yao, Akha, and Lahu, as well as small communities of Chinese and Vietnamese.

     In the education sector, 40 percent of boys and 33 percent of girls attend secondary school—42 percent fewer children than attend primary school. One reason for this decline is that 65 percent of primary schools are unable to offer classes in all grade levels. Most schools offer up to only the second grade, which prevents children from completing their basic education. Approximately 25 percent of teachers lack formal training; in fact eight percent of them have not completed primary school. Teachers receive low salaries and are not equipped with the proper resources to teach. The government currently spends less than three percent of the nation’s budget on education, ranking it 111th out of 132 countries worldwide.

     Lao is, per capita, the most heavily bombed country in the world. The aerial bombardment of the 1960s and 1970s left approximately 16 million unexploded cluster bombs scattered throughout the country. Fifteen of Laos’s 18 provinces are affected—an area of more than 33,000 square miles. Since 1975 there have been an estimated 11,000 casualties as a result of unexploded ordinances (UXO). There is a correlation between areas with UXO and high rates of poverty and food insecurity. Farmers, who use their crops to feed their families, are prevented from safely cultivating their land.

     The United Nations World Food Program estimates that 30 percent of Lao do not have sufficient amounts of food for six months of the year. More than 40 percent of children under the age of 5 experience stunted growth due to chronic malnutrition. The national infant mortality rate is nearly six percent; and 7.5 percent of children die before reaching their fifth birthday—both rates are among the highest in Southeast Asia. An insufficient health-care system, high levels of food insecurity, and poor hygiene have contributed to Lao's poor health status.

     Poverty is higher in rural regions, suburban areas without roads, and in central and northern provinces. Nearly 40 percent of Lao live below the poverty line, and three quarters of people earn less than $2 a day. Agriculture, mostly subsistence farming, employs 80 percent of the population and produces 41 percent of the country’s gross domestic product. Crops include rice, sweet potatoes, corn, fruit, spices, and cotton. The government has instituted economic reforms and has recently relied on a resurgent tourism industry as a source of foreign exchange.

     Lao PDR is a tropical country and its climate is affected by heavy monsoon rains from May to September. It is cool and pleasant from November to February, though the evenings might require a light coat or wrap. Occasional showers occur in March and April, but during this time, the weather is generally hot and humid.

     The Mekong River valley to which the Lao PDR belongs, was inhabited as far back as 10,000 years ago. Ethno-linguistically, the Lao people belong to the Thai-Kadai group extending from the Brahmaputra to the Gulf of Tonkin and probably came in small groups as early as the 8th century AD from South China. They established small districts known as muangs under hereditary chieftains. Until the 13th century, there were several independent Thai muangs in northern Thailand and Laos. From about the 7th century to about the 11th or 12th century, there was a strong influence of Hindu culture and religion in Lao. This is reflected in the Lao national version of the Ramayana and archaeological finds, Shiva lingas and similar icons in different parts of the country. Buddhism had a major impact, most obviously in the language, which uses a script derived from Pali. It is the main religion of the country.

     Original inhabitants of Lao migrated from southern China beginning in the 700s. The Lan Xang kingdom ruled the region from the 14th century until Laos was split into three separate kingdoms in 1713. After a brief time under Siamese (Thai) rule, Lao became a French protectorate in 1893. After World War II, France battled with Lao nationalists, granting Lao full independence as a constitutional monarchy in 1954. During that time, both the communist Pathet Lao group and Vietnamese forces invaded central Laos, sparking a civil war. A cease-fire was arranged in 1962, and opposing forces agreed to a coalition government.

     Even with an average growth rate of 2.6%, the population density of Lao remains one of the lowest in the region, i.e., 19.4 persons per square kilometer. Life expectancy, at 51 years, is still one of the lowest in the world. Infant mortality, under-5 mortality, and maternal mortality rates are quite high. About 50% of the adult population is illiterate.

     The Lao people are predominantly Buddhists (over 90%). Other than Buddhism, spirit worship, animism and ancestor worship are practiced among some of the various tribal groups.  There also exist a few Christians, and a small Muslim community, mainly the Chams, or Cambodian Muslims, who fled Pol Pot's Kampuchea in the 70's. They have their own mosque, as do the Indian Muslims, where most of the Islamic diplomats also repair for prayers.

     The Lao are ethnically diverse, comprising some 68 tribes, each with its own language, sub-groups and religious beliefs. Chief among the tribes are:

  1. The Lao Loum, who occupy the lowland plains and the Mekong river valley, and constitute some two-thirds of the total population.
  2. The Lao Theung (Khmu), comprising about 22% of the population, who occupy lower mountain slopes and who are thought to have been the first inhabitants of the Lao PDR.
  3. The Lao Soung (Hmong), who occupy the higher mountain slopes over 1000 metres, constituting about 10% of the total population. The Hmong belong to the Lao Soung group of tribes.

The total number of ethnic groups (68 main groups and 149 sub-groups, according to the Census of 1995), represent a diversity of culture and social forms. A matriarchical structure seems to take predominance in Lao society.

     The first well-known Lao political figure was the 14th century muang leader Fa Ngum who captured Wieng Chan (Vientiane) and parts of Northeast Thailand to set up, in 1353 AD, one of the largest kingdoms of South East Asia. He named his Kingdom Lane Xang, or the Land of a Million Elephants. In fact, the written history of the Lao PDR may be said to begin with Fa Ngum. It was Fa Ngum who made Theravada Buddhism his State religion. Till the mid-16th century, the capital of the Lane Xang monarchs was Luang Prabang. Subsequently, it was shifted to Vientiane. There were wars in Lane Xang during the 17th century, leading to the breakup of the Kingdom into three States namely, Luang Prabang, Vientiane and Champassak. These states came under Siamese influence and Laos became a vassal state of the Siamese Empire.
In the late 19th century, the French made inroads into Indo-China and eventually took Lao over from the Siamese. They also united Lao principalities as one colonial territory, but never found it profitable to develop the country commercially. The Mekong was not fully navigable and the country was too mountainous for plantations or agricultural production. To the French, the importance of Lao was mainly as a buffer between Siam, British Burma and the economically important Annam and Tonkin regions.

     During the Second World War, the French Government was briefly replaced by the Japanese, and the Lao King Sisavanhvong proclaimed his independence from the French in April 1945. However, Japanese rule collapsed as a result of their defeat in the Second World War. Subsequently, in August 1947, all former Lao territories were united under the name of the Kingdom of Lao, which was granted independence and sovereignty by the French in 1953 under the Treaty of "Amity and Association".

     The defeat and withdrawal of the US from Vietnam in 1975 led to the collapse of anti-communist resistance in Indochina, including in Lao. The Lao People's Revolutionary Party, headed by Kaysone Phomvihane, assumed power in Lao and the name of the country was changed from "Kingdom of Laos" to "Lao People's Democratic Republic". Kaysone Phomvihane, with the help of the Lao People's Revolutionary Party, ruled the country as Prime Minister and President until his death in 1992. He was succeeded by his former deputy, Khamtay Siphandone, as the Secretary General of the Party and the Prime Minister. After the National Assembly elections of 1998, Khamtay Siphandone was elected as President of the Lao PDR. The seventh Congress held in March, 2001 re-elected him as the President of the Lao People's Revolutionary Party (LPRP). A new Cabinet line-up with Bounnyang Vorachith as the Prime Minister was elected immediately after the 7th Congress of 2001.

     The present Constitution of the Lao PDR was adopted on 15th August 1991. The key thrust of the Constitution is that while the Lao People's Revolutionary Party is responsible for setting broad policy guidelines, the Government is expected to manage day-to-day administration within the policy guidelines so defined. The present President of the Republic is also the General Secretary of the Lao People's Revolutionary Party (LPRP). The President can appoint or dismiss the Prime Minister and the Government with the approval of the National Assembly. The National Assembly is elected for a period of five years. The National Assembly meets twice a year and remains in office for five years. Its present strength is 106 members, who were elected to office in 2002.

     The government inherited a war-torn and extremely under-developed economy in 1975. It was faced with the formidable task of reconstruction and development. During the first few years, there was little respite from falling living standards and general economic uncertainty. Recognizing the inadequacy and weakness of the ideologically preferred economic framework, the Government initiated its comprehensive restructuring. Accordingly, in 1986, the New Economic Mechanism was introduced. It granted operating autonomy to private enterprises. Domestic and foreign investors were given a major role in the economy. Private sector activity was allowed in most sectors, including rice production. In addition, the Government introduced changes in its financial policy. The country's development strategy shifted towards a greater market orientation and a liberalization of the economy. During the '90s, the Government adopted measures under the Medium Adjustment Program of the IMF and the World Bank, with the objective of establishing domestic and external financial stability as well as structural reforms. The small construction and manufacturing sectors also witnessed an impressive growth as domestic and foreign investors responded to the new opportunities opened by the reforms. Strong emphasis was laid on advancing towards comprehensive and genuine reforms to enlarge privatization, strengthen the commercial basis of banking, and build on adequate legal regulatory framework. Macro-economic performance considerably improved in 1993-94 with real growth of about 7%. External factors performed well and the economy improved.

     The Lao economy continues to be dominated by the agricultural sector even though its share has declined in recent years. The economy remains vulnerable to weather conditions, as agriculture is heavily dependent on rainfall. With the recent installation of irrigation water pumps from India, agricultural production, particularly paddy cultivation during the dry season, has improved significantly. In 2000, Lao declared that it had attained self-sufficiency in rice. The Government has also promoted industrial and service sectors with main thrust on power generation, tourism and transportation. Strategy has been aimed at improving the country's infrastructure and development of hydro-power for exports. In recent years, the garment industry and exports have registered high growth.

     The Asian crisis that engulfed South East Asia in mid-1997 did not leave Lao untouched. The local currency, the Kip, pegged to the Thai Baht, has sharply depreciated. Despite marginal recovery in the region, the Lao Kip continues to remain at a very low level i.e. around 8,000 Kip to a dollar, as compared to 900 Kip to a dollar in mid-1997. The domestic purchasing power has also been lost significantly as the consumer price index registered an increase of over 400 per cent between June 1997 and June 2002. Transport and communication infrastructures remain a major challenge, and the efforts to tackle them suffered due to the regional economic crisis. In 2000, GDP growth rate was 5 % compared to 4% in 1998, indicating a small increase in per capita income, while industry grew at 7.5%, marking a decrease by 1% compared to the previous year. Services and agriculture recorded a growth of 5.7 and 5 per cent respectively.

     The 7th Party Congress, followed by the National Assembly and the newly appointed Government, declared in 2001 a long-term policy objective of taking the Lao PDR out of its 'Least Developed Country' status by 2020. The Committee for Planning & Cooperation has been entrusted with the responsibility to draft suitable programs, both in short and long term, to achieve the target.

     Water constitutes the most important natural resource endowment of the country. There is huge potential to develop hydro-power for export to Thailand and Vietnam. A rich forest cover is another major natural resource for Lao. 80% of domestic energy consumption is based on fuel wood, and an estimated 300,000 hectares of forest are lost annually. As a result, there has been a serious depletion of forest cover, from nearly 70% to about 47% of the total land area. Lao forests contain a wide variety of tree species that are suitable for commercial use. Sizeable deposits of gemstones, gold, copper, iron ore and tin are known to exist in the country. Exploration of potential resources is under way. Though the Lao PDR is well endowed with natural resources, its per capita GDP has been revised downwards to US $300 due to currency devaluation.

     Notorious for being situated at the heart of the Golden Triangle, the Lao PDR is a traditional opium growing country. Opium is grown mainly in the northern mountainous stretches in areas where crops such as rice have so far been difficult to grow.  The Lao Government is now, in conjunction with the United Nations, the ADB, the IMF and the World Bank, making serious efforts to eliminate the production of opium through programs such as the growing of alternate cash crops; the building of feeder roads into the remotest areas to help the sales of these crops; the setting up of small clinics & rehabilitation centers; the provision of basic education & alternate employment; and several others.
"For the first time in many years, we can now safely assume that Lao is no longer a supplier of illegal opiates to the world", according to the UNODC in June, 2005.

     The Lao capitol of Vientiane boasts of two hospitals (the second inaugurated in 2002) and a small clinic for foreigners. However, most expatriates in Lao use the medical facilities across the border in Thailand.

     Very little exists by way of entertainment in Lao, apart from a few snooker bars and nightclubs. The National Culture Hall was financed and built by the Chinese and inaugurated in 2000 for state functions. There are no commercial cinema halls or theatres. There is an Opera House, but mainly an institution to teach Lao music and ballet.

     The Lao, like the Vietnamese, are thoroughly omnivorous. Vegetarians will delight in the fresh, crisp vegetables served in Lao restaurants, but should specifically ask that no fish or oyster sauce is added. A wide variety of fish is available, while the staple meat is buffalo, Lao people also consume a lot of pork. Sticky rice is the most common food.

     Traditional transport in Lao makes extensive use of the Mekong, especially in matters of trade; but the Mekong is not navigable, either down its full length, or throughout the year. Dirt roads were used by the Lao until the advent of the French, who built the first roads and the first big bridges. The French also introduced a railway line, but this was only used as a ferry to transport goods from the nearest sea port in Cambodia up to a river landing in southern Lao. No attempt was made to introduce railways as a serious transport carrier of goods and passengers.

     For the most part, road travel in the principal cities, and connecting them, is comfortable, on good Chinese or Vietnamese built roads, though drivers are offensive rather than defensive, which makes for a scary ride for passengers, and motion sickness medication is a must for everyone.  Interior roads however do not exist, and surface travel is not possible except in four-wheel drives. Southern roads are generally being built faster than northern ones, due to the mountainous & rocky terrain of Lao's northern provinces.

     In the mid-1960s, hostilities between the United States and communist North Vietnam escalated, pulling Lao into the middle of the battle. North Vietnam used the country as a staging area for its troops against the South Vietnamese army and U.S. forces. The United States began a bombing campaign in an effort to destroy North Vietnam’s supply line, the Ho Chi Minh Trail, which ran down the mountain valleys of eastern Lao. An average of one planeload of bombs was dropped every eight minutes for nine years. By the time fighting ceased in 1975, an estimated 200,000 Lao had been killed, most of them civilians.

     The Pathet Lao seized complete power in 1975, establishing a communist government and renaming the country the Lao People’s Democratic Republic. Members of other political parties lost influence and quickly fled the country. In August 1991, Lao adopted a new constitution that renounced socialism but retained a one-party government. The communist party remained in control but began allowing market forces to drive the economy. Lao became a member of the Association of Southeast Asian Nations in 1997 and served as chair of the organization in 2004. The government is currently in the process of applying for full membership to the World Trade Organization.

Lao Cuisine: Click Here to learn about Lao food and the many forms of RICE

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