China to Assist Laos

Chinese contribution will play a key role in determining Laos Future.

Xi Jinping’s last month’s visit to Laos, contributed a new facilitated hospital, replacing the old colonial era Mohast hospital, built in 1903.

China is willing to grant $20 billion to Laos

United States announced a hospital project costing 20 Billion US Dollars, which will be the largest hospital in the country when opens in 2020. Similarly, the cost will be pain with Chinese grant.

The two communist nations have agreed on different terms as well. Additionally, Beijing has promised to provide doctors and other paramedical facilities at the hospital for first three years. Xi Said,

“Our focus of cooperation is to improve the lives and provide great benefit to the locals.”

Laos, a small landlocked country, is now overly reliant towards the aid of its neighboring power China. Prime Minister Thongloun Sisioulith is eager to re balance diplomatic terms and economic up gradation of its country. Additionally, as we mentioned earlier, no access to Sea is the biggest hurdle in meeting the goals of national development.

Chinese grants include a further 6 Billion US dollars for rail track infrastructure. The purpose of this is to connect southern China with Southeast Asia. Consequently, this project will up lift the economy and revolutionize its population.

Meanwhile, Thongloun has identified the bad impacts of certain Chinese investment. For example, ban imposed on the establishment of new Chinese-owned plantation of banana’s, which have their worse impact on environment.

Frequently, Laos needs the assistance in matters of health up to its grass root and for this reason they cannot easily despise the Chinese help for its mediocre medical sector. The ruling party as a communist one launched an ambitious plan over its medical reforms. Similarly, Laos’s government has approved further funding for health what is known as the “30000 kip for all disease treatment” scheme, similar to its neighboring Thailand’s “30 Baht” universal health care program. Introduced, earlier this year the program is now available across the country. Forthwith, parents just have to pay 30,000 Kim (US$3.60) for any medical treatment, with which they are recommended. Government on the other hand, underwrites the remaining cost.

In any event, the communist party is leading to make the country a middle income one till 2030. But, things might not seem easy as the Asian Development Bank reported last year, “only 33% of populations covered the health insurance program.” Most of these were used by public sector workers and wealthy people who can afford the private insurance.

The national assembly of Laos has announced its health targets for 2018. Firstly, to reduce the number of underweight children, secondly, to reduce the infant and mortality rates and finally to reduce the number of deaths of children under five years of age.

Another key hurdle to achieve better medical health service is its poor infrastructure. The country has an area of 70% of mountains which make it harder for people to in certain areas to access the healthcare facilities. Laos has the area equal to France but has a population just over 6.7 million people.

Corruption is another concern, as even doctors and nurses receive low wages. Public sector workers can go off months without salary. Consequently, medical staff bribes to meet its requirements.

Lack of domestic funds also plays a reason to accept foreign assistance. Laos’s GDP per Ca pita is less than 2000 US dollars, which is one of the lowest in Asia, despite having the GDP growth of 7% annually.

The Government is keen that Laos holds 30% of rail project, which will create massive amount of jobs in the country. Eventually, this will transform the economy into a hub for Chinese trade. 

Currently, the project is completed 22% only, according to Laos’s state planner.  The government is further highly dependent on China to rescue the hydroelectric programs and wide dissident’s movement.  To sum up, Laos has prepared itself to accept Chinese aid in order to achieve the best for its economy and people.