Laos is facing a severe and sustained economic downturn that has left many young Laotians feeling hopeless and disenfranchised. The economic crisis, caused by a rash programme of government borrowing to finance Chinese-backed infrastructure projects, has resulted in a barren job market, government budget cuts, sky-high inflation, and record-breaking currency depreciation. As a result, many young Laotians are disillusioned with the government and are seeking to leave the country in search of better opportunities abroad.
The economic crisis in Laos has been fueled by the country’s decision to take on major infrastructure projects, primarily financed by China, in an attempt to transform its largely agrarian society. However, oversupply and mismanagement have led to unproductive dams and a debt-ridden state electricity company. The Lao-China railway, another debt-laden megaproject, has also burdened the government with billions of dollars in debt.
Laos’ ballooning debt, much of which is owed to China, has left the country in a precarious position. The government is now having to borrow more money from Chinese lenders just to stay afloat, leading to concerns over Beijing’s growing influence and control over Laos. Furthermore, the declining value of the Lao currency, the kip, has caused prices to rise dramatically, further exacerbating the economic crisis for ordinary Laotians.
Young Laotians, in particular, are bearing the brunt of the economic crisis. Many feel that there is no future for them in Laos and are desperate to leave the country. The high NEET rate among 18-to-24-year-olds, the highest in South East Asia, reflects this sense of discouragement and the lack of opportunities for young people in Laos.
The government’s intolerance of dissenting voices has forced young people to turn to social media to express their grievances. However, even social media platforms are not safe, as evidenced by the attack on Anousa “Jack” Luangsuphom, a social media influencer critical of the authorities. The attack was seen by many as an attempt to silence dissent and control the population.
The economic crisis in Laos is not only impacting the current generation but also has long-term consequences for the country’s development. Reduced investment in the social sector, including health and education, is a cause for concern and will have lasting effects on future generations.
It is crucial for the government and international community to address the economic crisis in Laos and provide support for the country’s youth. Investments in education, job creation, and social programs are needed to rebuild trust and provide hope for young Laotians. Additionally, efforts should be made to diversify the economy and reduce reliance on Chinese-backed infrastructure projects to avoid further debt and economic instability.
