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A landlocked country in southeast Asia, Laos has a multiethnic population of just over 6 million inhabitants. Over 60 percent are ethnic Lao, the lowland dominant ethnic group. Almost 10 percent of the population is formed by other lowland groups. There are then hill people and minority cultures such as the Hmong, Yao, Dao, Shan, and several peoples of Tibeto-Burman origins. Because these people have lived in isolated regions of Laos for many years, they have formed strong ethnic networks. Other mountain and hill tribes have had more contacts with each other and, as a result, have a more mixed ethnic and cultural heritage, such as the Lua and Khmu in northern Laos. In the central and southern mountains, the Mon-Khmer tribes, known also as Lao Theung, are the main ethnic group. In urban areas there are also some Vietnamese, Chinese, and Thai minorities, although a great number left either after independence from France in the late 1940s or after 1975 at the end of the long civil war that resulted in the victory of the communist Pathet Lao movement over the royalist Lao government. Initially closely allied to Vietnam, Laos severed all diplomatic relations with China in the late 1970s. This generated international isolation of the country and its alienation from major trade networks. Although Laos is still self-described as a communist republic, state control over the economy has eased, and the country was admitted to the Association of the Southeast Asian Nations in 1997.

The country has its historical roots in the ancient Lao Kingdom of Lan Xang, which was established in the 14th century and enjoyed political and cultural dominance in the area for almost 300 years. However, after a prolonged period of decline, Laos passed under the control of Siam until it became a French protectorate in the late 19th century. These political regimes all weaved their networks of political and social power within Lao society. When Laos became an independent communist republic in the 1970s, the new government had to counter an increasingly worsening economic situation, further marred by political instability. The regime has since tried to relieve poverty as well through participation in international networks of nongovernmental organizations (NGOs) and the approval of economic reforms to encourage an inflow of foreign capital. It is estimated that about 100 NGOs are cooperating with Laos to improve agricultural, educational, health, and industrial standards. Since the mid-1980s, the Lao government has removed trade barriers and has tolerated a private-market sector. Agriculture still remains an important part of the country's economy, although industrial zones have been expanded to attract foreign investment. In the agricultural sector, Laos has reached the important goal of self-sufficiency in rice production and has become a member of important international networks such as the Mekong River Commission Council (MRCC) and the Mekong-Ganga Cooperation Plan.

The Asian Development Bank and the World Bank have also taken important initiatives to reach the national goal of shedding the status of a least-developed country by 2020. Although the effects of globalization in Laos may not be directly beneficial to the country's economic development, they may help the emergence of an increasingly independent public sphere from the single-party dominance. This more independent public sphere could mean, in turn, increased access for the Lao population to social networking and communication. Yet, the impact of globalization is already becoming apparent on traditional Lao rural networks and ways of life. There is concern that the transition of the country out of the group of the least-developed nations should not be achieved at the expense of social cohesion.

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