The Southeast Asian nation of six million people, most of whom depend on subsistence farming, suffers from a lack of infrastructure and diversified industry.
Just two companies are listed on its fledgling stock market, which opened last year.
Foreign investment in the nation jumped from $300 million in 2005 to $1.5 billion in 2011, according to the World Bank — but 80 percent of the money went into hydropower and mining projects.
It is little surprise then that Laos is hoping WTO membership will attract foreign capital to new sectors.
Geographic diversification is also seen as important as the country seeks to reduce its heavy economic dependence on its powerful neighbours China, Thailand and Vietnam, while WTO procedures will enable Laos to defend itself in the event of trade disputes.
“Laos is essentially trying to contain the flood of Chinese investors and workers that have come into its territory, because… the country fears its sovereignty is under threat,” the foreign expert said.
Another benefit of joining the WTO is that the outside world could start to see Laos in a different light.
“There are a lot of areas where Laos is moving pretty fast,” said Steve Parker, who runs a USAID-funded project to support Laos in implementing the new rules.
“I’m not one of these who think that Laos is just this sleepy little place. There is a lot of energy and a lot of people working very hard here,” he said.
