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The nation of Laos is located in the northern part of the Indo-Chinese peninsula in mainland Southeast Asia. The majority of people (6,677,534, July 2008 estimate) in the Lao People's Democratic Republic are Theravada Buddhists. They constitute 65% of the population, and about 33% practice animism. But there is no clear-cut demarcation, since Buddhism has been blended with elements of indigenous religious practices, Hinduism, and traditions from neighboring countries. About 2% of Laotian people profess Christianity, Islam, and other religions. According to tradition, Buddhism was introduced in Laos during the reign of the Indian Emperor Asoka (ca. 273–226 BCE). A Buddhist that or wat (shrine) was built. Buddhism in Laos has been influenced by neighboring countries such as Myanmar, Cambodia, and Thailand as well as Sri Lanka. Interaction with the Khmers, Thais, Sri Lankans, and Indians has enriched the indigenous culture and religion of Laos. Hinduism has also exerted a strong impact on daily life, ritual, custom, and public ceremony. Names of Hindu gods are invoked in daily prayer to Buddha. The Lao version of the Ramayana, the Phra Lak Pha Lam, dominates the religious and cultural life of Laos. Along with Theravada Buddhism, the cult of phi (spirit) worship is prevalent among all segments of population, indigenous as well as ethnic. Lao religious life is also marked by belief in wandering spirits and the souls of departed ones. In the corner of some Buddhist wats, there is a small enclosure set aside for spirits. Certain monks are venerated for their special power of exorcising evil spirits.

The people of Laos celebrate important festivals connected with religion. The Boun Pimai marks the Lao New Year and is observed for several days in April. In Luang Prabang, Boun Pimai celebrations include ablutions of Buddhist icons. The festival of Boun Bang Fai inaugurates the rainy season in May. Giant homemade bamboo rockets are launched skyward to summon the rains. The August festival of Haw Khao Padap Din is observed to pay homage to the dead. The month of November is marked by a festival at the temple of That Luang in Vientiane. The small minorities of Laotian Christians and Muslims celebrate their own respective festivals. For most Laotians, religious life revolves round the wats—places of worship as well as festivities. Luang Prabang boasts of superb Buddhist monuments. That Luang of Vientiane is an architectural marvel; the Buddhist and Hindu icons of Laos have a uniqueness of their own.

With the triumph of communism in 1975, doctrinaire Marxism prevailed for several decades in Laos. Within the framework of a socialist government, Buddhism was relegated to the background; reports emerged of persecution of Buddhist monks and Christian missionaries. The advent of a market economy in the 1990s witnessed the subsequent dilution of Marxism, and once again Buddhism predominates in daily life; the government's tolerance and encouragement of Buddhist religious life also confers legitimacy on the government itself, which now manages the famous That Luang festival. In the religious crucible of Laos, where there is a blending of different religious traditions, Marxian ideals are amalgamated with Buddhist rituals.

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