Prime Minister Phankham faced mounting pressure due to his ineffectual crisis management and entanglement in numerous scandals, ultimately leading to his resignation. However, the arrival of the new prime minister brings with it a new set of concerns, as his recent associations suggest an alarming persistence of systemic corruption within the ruling party, cementing the political status quo.
Over the past two years, Laos has experienced severe macroeconomic shocks. The initial blow came from the COVID-19 pandemic, triggering an economic downturn. Subsequently, the nation grappled with the debilitating effects of inflation, currency devaluation, and a crippling debt crisis. Moreover, Russia’s invasion of Ukraine sent shockwaves throughout the global economy, causing a surge in commodity prices, which, in turn, propelled the escalation of food and transportation costs.
These successive shocks caused a considerable setback. In response to the economic downturn, the government resorted to heightened exploitation of natural resources, compromising sustainable development, biodiversity conservation, and environmental protection.
