Analysis Of Laos’s Economic Mechanism Innovation

Lao People’s Democratic Republic (hereinafter referred to as Laos) located in the Indochina Peninsula, chair border with:north China, south Cambodia, east Vietnam, northwest Myanmar, and adjoining western Thailand. December2nd1975, Laos gained independence. After independence, the Lao party and the central government very focused on economic development. However, due to the long war and colonial oppression so that Laos to be once considered the poorest country in southeast of Asia, the weak foundation of the national economy, worried about foreign capital and other adverse effects of own economies. In order to protect national sovereignty and independence, the Lao Government had taken to implement the closed foreign policy.In1986, in the Fourth Party Congress of the LPRP, Lao People’s Revolutionary Party in the fully absorbing Laos socialist transformation and construction experience and lessons, and on the basis of background to solve the trapped, found a line with the situation of Laos development road, proposed economic reform of the large projects called "Economic Mechanism Innovation" to implement open policies innovation, while to adjusted and improved the economic mechanism of management, conducted a planned economy transform to a socialist market economic policies.Laos is a close neighbor of China, since ancient times, Laos and China have "The mountains connect and the rivers link each other between" of brotherhood. Laos’s reform has many references on China, and at the same time, it includes a lot of the characteristics of injection and innovation. In the process of economic reform, it has issued a series of reform measures to the reform of agricultural innovations breakthrough, industrial innovation for reform of the tough sell, the export-oriented economy as the direction of the reform, and the socialist market economy reform as a directional orientation, which makes Laos become a region with steady economic growth and active market. Laos’s economic achievements to explain the Laos’s economic innovation policy is successful; able to break through from the status of blockade and backwardness country. Achievements of that Lao’s economic has obtained to justify the innovation of Laos open is successful, walking this road of economic construction is correct. But Laos in the process of economic reform also has many problems, such as the unbalanced regional economic development, wealth gap between rural and urban areas, low-efficient infrastructure, In general, within just20years, the achievements of Laos’s reform are greater than its shortcomings.Through the analysis of the system of the development of its economy, characteristics and the innovation of economic development since opening up, the comprehensive summaries of the successful economic reform, the analysis of its problems and lessons, for deepening understand Laos’s economic mechanism innovation. Accelerate the pace of innovation in economic mechanisms and promote Laos’s economic of rapid development. Fighting a solid basic for lifting the nation from underdevelopment by2020; and advancing it further towards the set goal of socialism.