Why has the Lao Government prioritised development of the hydropower sector ?
The Lao PDR is a poor, land-locked country faced with many development challenges [ click here to see key development statistics ] . It is heavily dependent on overseas assistance. Most of the population of around 6 million lives in the countryside and many survive on less than US$2 a day. Per capita GDP is around US$ 490. Continued economic growth is needed to alleviate poverty and achieve social development goals, but the options for achieving this are constrained by the small domestic economy and limited trade opportunities. Lao PDR, at its present stage of development, has few industries in which it enjoys a comparative advantage in the region, although mineral resources development and tourism have become increasingly important in recent years. It is widely recognised that the mountainous geography of Laos, and its abundance of rivers, means the country has significant hydropower potential, which is greatly underdeveloped. Hydropower is the most abundant and cost-effective energy
