Discussion On The Choice Of Laos' Path To Industrialization

Industrialization is a principal process for national or regional development. It is a phase tied to economic growth, a mark for evaluating a nation or region's economic development and wealth, and the only pathway for a developing country to break away from backwardness and poverty and become a modernized country. To become industrialized is still one of the most difficult missions for Laos'modernization. If Laos is to develop into a prosperous society, accomplish modernization, and finally become an influential economic power, complete industrialization is the only option. It will be the most important and the most challenging task in Laos'history. In short, industrialization is the key to Laos'economic development.To industrialize in the new millennium, Laos has to meet various requirements for each specific condition. As Marx put it,"events strikingly analogous but taking place in different historic surroundings [lead] to totally different results", therefore, the intention and practise of Laos'industrialization are yet to be revised and perfected.Towards industrialization, during Laos'Seventh National People's Representatives Meeting in 2002, an"industrialization strategy"was suggested, and is to play an important role in the rise and fall of Laos'future economy. This strategy places emphasis on a new phase for development, stands on scientific studies, and has established specific directions for Laos'industrialization. John Maynard Keynes once said:"ideas shape the course of history."To be industrialized, is not only an idea that changes the mode of economics, but also transforms it into a modern perspective. Under the lead of these new ideas, Laos must achieve its goal through industrialization.Since the 1990's, digitized transformation has greatly influenced economic development and social progress worldwide. Laos must, by all means, follow this wave to be globalized and digitized. However, this is not the end of Laos'mission on industrializing. Rather, it is a very early phase. The conflicts are still strong, and the production levels and competitions are still weak; progress in modernizing agriculture and urbanizing villages is still slow. In the case of industrial weakness, manufacturing particularly needs to be improved.Laos' service industies still rank far behind developed countries, industrialization and speeding up the progress for digitizing is still a very important and difficult mission for Laos'modernization.The key is Information services drive industries, and industries promote information services, and to create a path that involves advanced technology, better economic revenues, lowers costs on resources, reduces pollution, and efficiently manages human resources. The industrialization of Laos shall not be a copy of a modern developed country; instead, it should be unique, adapting to the economic developments of the world. In order to create this path, Laos must coordinate the connections between industrialization, digitalization, and urbanization, and be ready to face the contradictions between a quickly growing economy and pullbacks such as resources, environment, population growth, employment, and the contradictions between cities and villages. This article draws on theories regarding developmental economics, industrial economics, and economic systems, along with experiences and publications from other nations on organizing industrial productions, improving system structures, and industrial achievement, to sum up a path and framework to suit Laos'conditions. Based on this, using Laos'path as the viewing angle and upgrading of Laos'economic structures and system as the baseline, this article thoroughly analyzes Laos'strategies on fusing different industries and innovating a new system. It not has only theoretical importance, but also could be put in practical use to stimulate Laos'social and economic development.Based on economists'studies on industrialization, this article will focus on the path that Laos chose after observing the world economy, Laos'advantages and distinguishing characteristics. Through digitizing traditional industries, altering the structure and quality of traditional industries, Laos is thus achieving the transformation of traditional technologies and increasing its revenues, and is continuing to industrialize in a way that agrees with the development strategy.The core of Laos'industrialization is to expand exporting, allowing foreign investments to bring in digital technology to elevate Laos'own industries. The key to transforming knowledge into industrial structure is to increase the communication and interaction between traditional industries and high technology industries. Upgrading the economic structure will bring efficiency in traditional industries and become the source of Laos'development.For Laos'industrialization, the most important point is to build up a strategy for efficient management. As a developing country, Laos has the advantage of learning from previous experience of other nations. However this is only a theoretical advantage. To turn this advantage into real usefulness must first have corresponding basic rules and policies. This is a requirement for industrialization. To surpass already successful nations, a country must base its novel systems on its own culture. In East Asia, many countries imitate the successful Japanese example instead of Western countries'examples. One of the main factors for later developing nations to be successful in modernization is to create and take advantage of building an internationally based system.Based on the results of previous research, and combined with current development in Laos'industrialization, this article will further discuss the following three subjects. First, it will describe and analyze the content and strategy of the industrialization framework. Secondly, using similar knowledge transforming experiences from other nations to reflect on Laos'conditions, sum up with thoughts about speeding up the fusing between traditional industries and digital developments and describe the widening of the options on urbanization and industrialization at the countryside. And, finally, it will discuss a set of new and ideal strategies and policies corresponding to Laos'present industrialization.Although upgrading industrialization into a digital structure is a new topic and research field, and the author has made substantial efforts to apply theory objectively and scientifically, it still might be lacking on certain information and support. Here, the author asks sincerely that common readers or scholars in this field generously send feedback or corrections, so that the research on this topic could be further improved.