Power Distance (PDI)
The power distance in Laos is increasing. In 1986, Laos began experimenting with free-market economics. The system has evolved in a similar way to China, with no freedom of speech, zero tolerance for dissidents, and growing wealth among the party elite and military
(Philip, 2012). Although the open market and increased export trade are benefitting the lower classes, with a higher GDP and the country now being classified as “low-middle income”; it is the more elite within Laos society who are reaping the benefits of the system. The current economic system encourages clientelism and corruption, both of which hold back sustainable, more egalitarian development, meaning the gap between the rich and poor continues to widen (Philip, 2012).