The Lao Corruption Crisis: The Path Towards Integrity
Over the summer, I traveled across the world to visit my family in Savannakhet, Laos. With the second largest population in the communist-ruled country, the city of Savannakhet is flooded with military and police forces. On a Monday in July, I was riding in the backseat of a car with 4 of my older cousins. We were on a speedway and suddenly got pulled over by a soldier on a motorcycle who sternly told us that he would write us a ticket unless we paid him around 400,000 kip (around $20). Without any explanation or cause for pulling us over, my cousins immediately pulled out their money, fearing the officer and resolving the situation with a quick payment.
In just 2016 alone, over 1,300 police officers were fired for bribery accusations, and over $730 million was lost due to the prevalence of corruption. With the amount of corruption amongst authorities and government systems, it becomes difficult to uphold a commanding force that is dependable. In instances where there is a lack of regulation, an environment for corruption to persist amongst authoritative figures and government systems is created.
The Lao People’s Democratic Republic came into existence after the Vietnam War in 1975 and has since struggled to uphold accountability within its government. With the assistance of Vietnam and the Soviet Union, the country established a one-party rule using a socialist system. Under this system, access to information is restricted andgovernment officials are not chosen by popular sovereignty. It was not until 1986 that corruption was officially recognized by the government and central planning was blamed for the deficiencies Laos faced. Various measures to combat this have been passed since then. A State Inspection Committee was formed to help investigate corruption claims however, wasquickly dissolved and the measures failed to see results.
In 2005, the Law on Anti-Corruption was issued to criminalize the abuse of power, embezzlement, fraud, and bribery within the government. Corruption is defined under this law as: “Behavior of the Civil Servant from the top rank to the bottom who uses his or her job opportunity or authority to corrupt, get bribes, steal assets of the state to be his or her belongings and other behaviors for his or her family, friends, relatives, cousins or business partners’ benefit.” This law directly outlined the duty of the state and affiliated individuals to be role models for these regulations. However, without a designated body to enforce it, decreased corruption and increased government transparency have been difficult to achieve.
Since then, Laos has continued to rank highly on the corruption index, most recently ranking second most corrupt in the Association of Southeast Asian Nations (ASEAN), which communitizes 10 countries in the region. Laotian corruption remains undetectable because its main facet is bribery like what my cousins and I experienced. Corruption remains so costly in Laos because it is perpetrated by low-ranking officials who use their position of power to accuse citizens of violating regulations or not performing some small service and then extorting small sums of money from citizens portrayed as a way for citizens to avoid larger legal trouble. The pettiness of these violations, whether that be out on the road, at school, or in the hospital, makes it impossible for the citizen to get out of the situation without either paying or getting detained.
In the Laotian education system, (due to corruption) schools are underfunded, teachers are paid poorly, and nepotism is taken into account in staffing decisions. Because of this, teachers expect to be “rewarded” for raising marks or awarding diplomas. Families are often forced to pay bribes for basic educational services, exacerbating inequality and limiting access to quality education for the poor. Additionally, low teacher salaries drive many to provide private tutoring as a side job, further widening the gap in educational outcomes and posing corruption risks through favoritism and coercion.
Citizens are prone to compliance due to limited upward mobility opportunities in a society lacking infrastructure that could improve access to technology and education. Overarchingly, this has resulted in economic challenges and inadequate government support.
In 2021, the U.S. State Department published a report on the country of Laos, determining that there were still extensive amounts of corruption. “During the year, local media reported that investigating agencies uncovered more than 1.5 trillion kip (almost 70 million USD) in losses due to corruption and had investigated 24 persons, 16 of whom were government employees.” The prevalence of government officials among those investigated highlights the gaps in existing anti-corruption measures, showing a lack of systemic efforts for reform. Strengthening these frameworks is crucial for Laos to combat corruption and improve both governance and development.
Laos faces inherent difficulties in combating corruption due to its government structure, as there exists a direct connectionbetween a one-party system and corruption. Corruption feeds on power, particularly within authoritarian regimes like Laos, where the government’s centralized control creates grounds for the proliferation of corrupt practices. The concentration of power in Laos enables individuals in positions of authority to exploit their influence for personal gain. This is facilitated by the lack of accountability and oversight inherent in one-party regimes. With the lack of transparency and consequences, corruption permeates various sectors and institutions.
Media restrictions persist, particularly on issues involving new legislation, government criticism, and economic issues, adding to the corrupt environment due to citizens' limited independence, the one-party system, and insufficient infrastructure for progress. Authorities actively track social media platforms, contacting those who criticize the government to reeducate or warn them. This crackdown stems from a decree issued in 2014, prohibiting online criticism of the government and mandating real-name usage on social media. Despite smartphone ownership reaching 85% of the population, with only 44% regularly using social media platforms, the government has imposed tighter restrictions to maintain “social order.” The suppression of critical voices on social media platforms perpetuates corruption within the state because officials remain unchecked, shielded from public scrutiny and accountability.
Rather than continuing reliance on statutory frameworks, the international community provides a more functional, long-term option to effectively address corruption and bribery in Laos while also expanding the process of development. Laos remains a developing country, therefore, there are many obstacles to the adoption of modern strategies. In 2023, the exchange rate between the official kip and the US dollar weakened by 31%. Additionally, the budget for the public education system fell by 38%. By recognizing these financial constraints, the Lao government must realize the opportunities they have with outside organizations to build back a more digitized and honest government.
Non-governmental organizations such as the United Nations Office on Drugs and Crime (UNODC) recommend expanding the use of technologies such as online platforms and open data sets to fight against corruption: “These digital platforms are mobilizing a large number of citizens, providing an important source of information to detect corruption cases.” In partnership with the UNODC Regional Office for Southeast Asia and the Pacific and other international organizations such as the Asian Development Bank and the Organization for Economic Co-Operation and Development, can support Laos in building back trust within the government. These organizations can fund technological development projects that digitize government processes, track economic exchanges, and provide recommendations on how to restructure government systems to properly advance. Relying on these groups can help Laos address the epidemic of corruption and also incorporate the improvement of development within the country. The previous policy of inaction by the Laotian government has failed its people and the effects continue to be seen, like in the case of my family. Utilizing international resources and creating a plan based on the development of technology while expanding education would truly help reduce the amount of dishonesty and build back trust for the Lao people.
Photo Credit: Laotian Times