Capitalism in Laos

Abstract

The present paper analyses Capitalism in Laos, a French colony which achieved complete independence only in 1975. Although one could expect a significant impact of colonialism and (colonial) capitalism, colonial rule only began in 1893 and was formally abolished in 1954. Furthermore, it did not penetrate society very deeply. Therefore, a broad capitalist transformation did not take place before the 1990s and precolonial structures persisted to some degree well into that period. At the same time, Laos is a socialist state under one-party rule, similar to China and Vietnam. The article concludes that the population of contemporary Laos comprises four habitus types, which are rooted in different sociocultures, namely baan, muang, socialism and capitalism. Two habitus types, the disciplined and the ambitious, are found in the socialist and the capitalist socioculture, while the depressed habitus type comprises those who are excluded by the capitalist transformation. While the majority of the population can be classified as belonging to the traditionalist habitus type, socialism has lost ground to the expanding capitalist socioculture. However, only a minority of Lao citizens are fully integrated into the capitalist economy, act accordingly and move into the urban and rural middle classes. Since the young are pushing in this direction as well, a strong movement toward capitalism, globalization and meritocratic ideology has gained ground.