Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang, established in the 14th Century under King Fa Ngum.

For 300 years, Lan Xang included large parts of present-day Cambodia and Thailand, as well as all of what is now Laos.

After centuries of gradual decline, Laos came under the control of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina.

The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand. In 1975, the Communist Pathet Lao took control of the government ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam.

A gradual return to private enterprise and the liberalization of foreign investment laws began in 1986. Laos became a member of ASEAN in 1997.

Source: CIA World Fact Book

Population: 6,521,998 (July 2007 est.)

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Age structure: 0-14 years: 41.2% (male 1,349,352/female 1,338,252) 15-64 years: 55.7% (male 1,795,029/female 1,835,168) 65 years and over: 3.1% (male 90,188/female 114,009) (2007 est.)

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Median age: total: 19 years male: 18.7 years female: 19.3 years (2007 est.)

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Population growth rate: 2.37% (2007 est.)

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Birth rate: 34.98 births/1,000 population (2007 est.)

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Death rate: 11.28 deaths/1,000 population (2007 est.)

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Net migration rate: 0 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.04 male(s)/female under 15 years: 1.008 male(s)/female 15-64 years: 0.978 male(s)/female 65 years and over: 0.791 male(s)/female total population: 0.984 male(s)/female (2007 est.)

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Infant mortality rate: total: 81.44 deaths/1,000 live births male: 90.91 deaths/1,000 live births female: 71.56 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 55.89 years male: 53.82 years female: 58.04 years (2007 est.)

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Total fertility rate: 4.59 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 0.1% (2003 est.)

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HIV/AIDS - people living with HIV/AIDS: 1,700 (2003 est.)

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HIV/AIDS - deaths: less than 200 (2003 est.)

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Nationality: noun: Lao(s) or Laotian(s) adjective: Lao or Laotian

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Ethnic groups: Lao Loum (lowland) 68%, Lao Theung (upland) 22%, Lao Soung (highland) including the Hmong and the Yao 9%, ethnic Vietnamese/Chinese 1%

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Religions: Buddhist 65%, animist 32.9%, Christian 1.3%, other and unspecified 0.8% (1995 census)

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Languages: Lao (official), French, English, and various ethnic languages

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Literacy: definition: age 15 and over can read and write total population: 68.7% male: 77% female: 60.9% (2001 est.)

The government of Laos, one of the few remaining official Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year in 1988-2006 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with a primitive infrastructure. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with possible support from Japan. Electricity is available in only a few urban areas. Subsistence agriculture, dominated by rice, accounts for about half of GDP and provides 80% of total employment. The economy will continue to benefit from aid by the IMF and other international sources and from new foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to benefit from lower tariffs on exports. Laos is taking steps to join the World Trade Organization in the next few years; the resulting trade policy reforms will improve the business environment. On the fiscal side, a value-added tax (VAT) regime, slated to begin in 2008, will streamline the government's inefficient tax system.

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GDP (purchasing power parity): $13.74 billion (2006 est.)

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GDP (official exchange rate): $2.795 billion (2006 est.)

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GDP - real growth rate: 8.3% (2006 est.)

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GDP - per capita (PPP): $2,200 (2006 est.)

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GDP - composition by sector: agriculture: 43.4% industry: 30.6% services: 26% (2006 est.)

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Labor force: 2.1 million (2006 est.)

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Labor force - by occupation: agriculture: 80% industry and services: 20% (2005 est.)

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Unemployment rate: 2.4% (2005 est.)

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Population below poverty line: 30.7% (2005 est.)

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Household income or consumption by percentage share: lowest 10%: 3.2% highest 10%: 30.6% (1997)

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Distribution of family income - Gini index: 37 (1997)

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Inflation rate (consumer prices): 6.8% (2006 est.)

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Budget: revenues: $400 million expenditures: $537.4 million; including capital expenditures of $NA (2006 est.)

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Agriculture - products: sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, cattle, poultry

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Industries: copper, tin, and gypsum mining; timber, electric power, agricultural processing, construction, garments, tourism, cement

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Industrial production growth rate: 15.7% (2006 est.)

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Electricity - production: 3.936 billion kWh (2004)

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Electricity - consumption: 3.26 billion kWh (2004)

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Electricity - exports: 600 million kWh (2004)

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Electricity - imports: 200 million kWh (2004)

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Oil - production: 0 bbl/day (2004 est.)

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Oil - consumption: 3,000 bbl/day (2004 est.)

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Oil - exports: NA bbl/day

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Oil - imports: NA bbl/day

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Oil - proved reserves: 0 bbl

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Natural gas - production: 0 cu m (2004 est.)

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Natural gas - consumption: 0 cu m (2004 est.)

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Current account balance: -$504.2 million (2006 est.)

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Exports: $982.2 million (2006 est.)

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Exports - commodities: garments, wood products, coffee, electricity, tin

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Exports - partners: Thailand 41.3%, Vietnam 9.7%, China 4.1%, Malaysia 4.1% (2006)

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Imports: $1.376 billion f.o.b. (2006 est.)

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Imports - commodities: machinery and equipment, vehicles, fuel, consumer goods

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Imports - partners: Thailand 69%, China 11.4%, Vietnam 5.6% (2006)

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Reserves of foreign exchange and gold: $316.9 million (2006 est.)

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Debt - external: $3.179 billion (2006)

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Economic aid - recipient: $379 million (2006 est.)

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Currency (code): kip (LAK)

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Exchange rates: kips per US dollar - 10,235 (2006), 10,820 (2005), 10,585.5 (2004), 10,569 (2003), 10,056.3 (2002)

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Fiscal year: 1 October - 30 September