Laos vs. Cambodia

Most Cambodians consider themselves to be Khmers, descendants of the Angkor Empire that extended over much of Southeast Asia and reached its zenith between the 10th and 13th centuries. Attacks by the Thai and Cham (from present-day Vietnam) weakened the empire, ushering in a long period of decline. The king placed the country under French protection in 1863, and it became part of French Indochina in 1887. Following Japanese occupation in World War II, Cambodia gained full independence from France in 1953. In April 1975, after a seven-year struggle, communist Khmer Rouge forces captured Phnom Penh and evacuated all cities and towns. At least 1.5 million Cambodians died from execution, forced hardships, or starvation during the Khmer Rouge regime under POL POT. A December 1978 Vietnamese invasion drove the Khmer Rouge into the countryside, began a 10-year Vietnamese occupation, and touched off 20 years of civil war.

Laos is a predominantly rural country with a youthful population - almost 55% of the population is under the age of 25.  Its progress on health and development issues has been uneven geographically, among ethnic groups, and socioeconomically.  Laos has made headway in poverty reduction, with the poverty rate almost halving from 46% in 1992/93 to 22% in 2012/13.  Nevertheless, pronounced rural-urban disparities persist, and income inequality is rising.  Poverty most affects populations in rural and highland areas, particularly ethnic minority groups. 

The total fertility rate (TFR) has decreased markedly from around 6 births per woman on average in 1990 to approximately 2.8 in 2016, but it is still one of the highest in Southeast Asia.  TFR is higher in rural and remote areas, among ethnic minority groups, the less-educated, and the poor; it is lower in urban areas and among the more educated and those with higher incomes.  Although Laos' mortality rates have improved substantially over the last few decades, the maternal mortality rate and childhood malnutrition remain at high levels.  As fertility and mortality rates continue to decline, the proportion of Laos' working-age population will increase, and its share of dependents will shrink.  The age structure shift will provide Laos with the potential to realize a demographic dividend during the next few decades, if it can improve educational access and quality and gainfully employ its growing working-age population in productive sectors.  Currently, Laos primary school enrollment is nearly universal, but the drop-out rate remains problematic.  Secondary school enrollment has also increased but remains low, especially for girls. 

Laos has historically been a country of emigration and internal displacement due to conflict and a weak economy. The Laos civil war (1953 - 1975) mainly caused internal displacement (numbering in the hundreds of thousands).  Following the end of the Vietnam War in 1975, indigenous people in remote, war-struck areas were resettled and more than 300,000 people fled to Thailand to escape the communist regime that took power.  The majority of those who sought refuge in Thailand ultimately were resettled in the US (mainly Hmong who fought with US forces), and lesser numbers went to France, Canada, and Australia. 

The Laos Government carried out resettlement programs between the mid-1980s and mid-1990s to relocate ethnic minority groups from the rural northern highlands to development areas in the lowlands ostensibly to alleviate poverty, make basic services more accessible, eliminate slash-and-burn agriculture and opium production, integrate ethnic minorities, and control rebel groups (including Hmong insurgents).  For many, however, resettlement has exacerbated poverty, led to the loss of livelihoods, and increased food insecurity and mortality rates.  As the resettlement programs started to wane in the second half of the 1990s, migration from the northern highlands to urban centers - chiefly the capital Vientiane - to pursue better jobs in the growing manufacturing and service sectors became the main type of relocation.  Migration of villagers from the south seeking work in neighboring Thailand also increased.  Thailand is the main international migration destination for Laotians because of the greater availability of jobs and higher pay than at home; nearly a million Laotian migrants were estimated to live in Thailand as of 2015.

Cambodia is a predominantly rural country with among the most ethnically and religiously homogenous populations in Southeast Asia: more than 95% of its inhabitants are Khmer and more than 95% are Buddhist.  The population's size and age structure shrank and then rebounded during the 20^th century as a result of conflict and mass death.  During the Khmer Rouge regime between 1975 and 1979 as many as 1.5 to 2 million people are estimated to have been killed or died as a result of starvation, disease, or overwork - a loss of about 25% of the population.  At the same time, emigration was high, and the fertility rate sharply declined.  In the 1980s, after the overthrow of the Khmer Rouge, fertility nearly doubled and reached pre-Khmer Rouge levels of close to 7 children per woman, reflecting in part higher infant survival rates.  The baby boom was followed by a sustained fertility decline starting in the early 1990s, eventually decreasing from 3.8 in 2000 to 2.9 in 2010, although the rate varied by income, education, and rural versus urban location.  Despite continuing fertility reduction, Cambodia still has a youthful population that is likely to maintain population growth through population momentum. Improvements have also been made in mortality, life expectancy, and contraceptive prevalence, although reducing malnutrition among children remains stalled.  Differences in health indicators are pronounced between urban and rural areas, which experience greater poverty.

Cambodia is predominantly a country of migration, driven by the search for work, education, or marriage.  Internal migration is more prevalent than international migration, with rural to urban migration being the most common, followed by rural to rural migration.  Urban migration focuses on the pursuit of unskilled or semi-skilled jobs in Phnom Penh, with men working mainly in the construction industry and women working in garment factories.  Most Cambodians who migrate abroad do so illegally using brokers because it is cheaper and faster than through formal channels, but doing so puts them at risk of being trafficked for forced labor or sexual exploitation.  Young Cambodian men and women migrate short distances across the Thai border using temporary passes to work in agriculture, while others migrate long distances primarily into Thailand and Malaysia for work in agriculture, fishing, construction, manufacturing, and domestic service.  Cambodia was a refugee sending country in the 1970s and 1980s as a result of the brutality of the Khmer Rouge regime, its ousting by the Vietnamese invasion, and the resultant civil war.  Tens of thousands of Cambodians fled to Thailand; more than 100,000 were resettled in the US in the 1980s.  Cambodia signed a multi-million dollar agreement with Australia in 2014 to voluntarily resettle refugees seeking shelter in Australia.  However, the deal has proven to be a failure because of poor conditions and a lack of support services for the few refugees willing to accept the offer.

24 provinces (khett, singular and plural) and 1 municipality (krong, singular and plural)

provinces: Banteay Meanchey, Battambang, Kampong Cham, Kampong Chhnang, Kampong Speu, Kampong Thom, Kampot, Kandal, Kep, Koh Kong, Kratie, Mondolkiri, Oddar Meanchey, Pailin, Preah Sihanouk, Preah Vihear, Prey Veng, Pursat, Ratanakiri, Siem Reap, Stung Treng, Svay Rieng, Takeo, Tbong Khmum

municipalities: Phnom Penh (Phnum Penh)

The government of Laos, one of the few remaining one-party communist states, began decentralizing control and encouraging private enterprise in 1986. Economic growth averaged more than 6% per year in the period 1988-2008, and Laos' growth has more recently been amongst the fastest in Asia, averaging more than 7% per year for most of the last decade.

Nevertheless, Laos remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a basic, but improving, road system, and limited external and internal land-line telecommunications. Electricity is available to 83% of the population. Agriculture, dominated by rice cultivation in lowland areas, accounts for about 20% of GDP and 73% of total employment. Recently, the country has faced a persistent current account deficit, falling foreign currency reserves, and growing public debt.

Laos' economy is heavily dependent on capital-intensive natural resource exports. The economy has benefited from high-profile foreign direct investment in hydropower dams along the Mekong River, copper and gold mining, logging, and construction, although some projects in these industries have drawn criticism for their environmental impacts.

Laos gained Normal Trade Relations status with the US in 2004 and applied for Generalized System of Preferences trade benefits in 2013 after being admitted to the World Trade Organization earlier in the year. Laos held the chairmanship of ASEAN in 2016. Laos is in the process of implementing a value-added tax system. The government appears committed to raising the country's profile among foreign investors and has developed special economic zones replete with generous tax incentives, but a limited labor pool, a small domestic market, and corruption remain impediments to investment. Laos also has ongoing problems with the business environment, including onerous registration requirements, a gap between legislation and implementation, and unclear or conflicting regulations.

Cambodia has experienced strong economic growth over the last decade; GDP grew at an average annual rate of over 8% between 2000 and 2010 and about 7% since 2011. The tourism, garment, construction and real estate, and agriculture sectors accounted for the bulk of growth. Around 700,000 people, the majority of whom are women, are employed in the garment and footwear sector. An additional 500,000 Cambodians are employed in the tourism sector, and a further 200,000 people in construction. Tourism has continued to grow rapidly with foreign arrivals exceeding 2 million per year in 2007 and reaching 5.6 million visitors in 2017. Mining also is attracting some investor interest and the government has touted opportunities for mining bauxite, gold, iron and gems.

Still, Cambodia remains one of the poorest countries in Asia, and long-term economic development remains a daunting challenge, inhibited by corruption, limited human resources, high income inequality, and poor job prospects. According to the Asian Development Bank (ADB), the percentage of the population living in poverty decreased to 13.5% in 2016. More than 50% of the population is less than 25 years old. The population lacks education and productive skills, particularly in the impoverished countryside, which also lacks basic infrastructure.

The World Bank in 2016 formally reclassified Cambodia as a lower middle-income country as a result of continued rapid economic growth over the past several years. Cambodia's graduation from a low-income country will reduce its eligibility for foreign assistance and will challenge the government to seek new sources of financing. The Cambodian Government has been working with bilateral and multilateral donors, including the Asian Development Bank, the World Bank and IMF, to address the country's many pressing needs; more than 20% of the government budget will come from donor assistance in 2018. A major economic challenge for Cambodia over the next decade will be fashioning an economic environment in which the private sector can create enough jobs to handle Cambodia's demographic imbalance.

Textile exports, which accounted for 68% of total exports in 2017, have driven much of Cambodia's growth over the past several years. The textile sector relies on exports to the United States and European Union, and Cambodia's dependence on its comparative advantage in textile production is a key vulnerability for the economy, especially because Cambodia has continued to run a current account deficit above 9% of GDP since 2014.

reliance on radio network to communicate with remote areas; regulatory reform is below industry standards; government aims to strengthen infrastructure and attract foreign investment; low fixed-broadband penetration; dominance in mobile broadband with 4G and LTE, but low compared to other Asian markets; ASEAN Digital Hub investment provides international capacity; state owns almost all media, except for some entertainment outlets, and has suppressed some news; importer of broadcasting equipment and computers from China; providers examining m-payment platforms and 5G tests (2021)

southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Thailand but disputes remain over islands in the Mekong River; Cambodia and Laos have a longstanding border demarcation dispute; concern among Mekong River Commission members that China's construction of eight dams on the Upper Mekong River and construction of more dams on its tributaries will affect water levels, sediment flows, and fisheries; Cambodia and Vietnam are concerned about Laos' extensive plans for upstream dam construction for the same reasons

Cambodia is concerned about Laos' extensive upstream dam construction; Cambodia and Thailand dispute sections of boundary; in 2011 Thailand and Cambodia resorted to arms in the dispute over the location of the boundary on the precipice surmounted by Preah Vihear Temple ruins, awarded to Cambodia by an International Court of Justice decision in 1962 and part of a UN World Heritage site; Cambodia accuses Vietnam of a wide variety of illicit cross-border activities; progress on a joint development area with Vietnam is hampered by an unresolved dispute over sovereignty of offshore islands