Introduction

Laos in 1996 was uneasy about accepting all the consequences of the New Economic Mechanism (NEM). This was the main message of the Sixth Congress of the Lao People's Revolutionary Party. At first sight, the political forces that oppose rapid economic transformation seem to have reinforced their position. It remains to be seen, however, whether this change will be strong enough to stop — or at least to significantly slow down — the reform process and the integration of the Lao economy in the Southeast Asian region. On the other hand, the Sixth Party Congress seems to have strengthened the position of representatives of ethnic minorities in the political élite. It is an open question, however, whether this second change will increase the attention paid to remote areas and correct the pro-urban bias of the economic and foreign aid policies, thereby improving the prospects for a more balanced growth in Laos.

The Sixth Party Congress: Not too Far, not too Fast

The Lao People's Revolutionary Party has the monopoly on political power in Laos, with complete control over the election process and the National Assembly. As in other one-party states, changes in the balance of power occur between different groups or individuals who belong to the same party. Political changes in such political systems are highly personalized and associated with alterations in the hierarchy of the ruling party. Party congresses generally provide good indications of such alterations. The Sixth Party Congress was held in Vientiane on 18–20 March 1996, five years after the Fifth Party Congress. It was attended by some 381 delegates representing over 78,000 party members (some 1.7% of the population).

From the point of view of reform policy, the most striking result of the Congress concerns the change in the balance of power between “reformers by conviction” and “reformers by necessity”. The weakened position of the former group of reformers is illustrated by the eviction of Khamphoui Keoboualapha, one of the most active advocates of rapid and comprehensive reforms, from the party's political bureau and central committee.