The rise and fall of agricultural cooperatives: 1978-88
The most significant change relating to rice production in the period immediately after
the Lao People’s Revolutionary Party (LPRP) came to power in December 1975 was
the adoption of a policy for the “collectivization of agricultural production” through
the formation of “agricultural cooperatives.” This was seen as the most appropriate
strategy for “revolutionizing the country, both socially and technologically.” The
history of the “rise and fall” of these cooperatives has been reviewed in detail by
Stuart-Fox (1980) and Evans (1988, 1995). As reported by Evans, the “experiment
with collectivization was associated with attempts by the new government to revive
the Lao economy following its collapse due to the flight of both capital and business
entrepreneurs.” It was hoped to use agricultural cooperatives as the basis for quickly
increasing rice production to alleviate a serious and chronic rice deficit in the country.
At the time, Laos was importing approximately 15% of its rice requirements. It was
believed that cooperatives were the only way peasant agriculture could overcome
natural calamities and achieve national food self-sufficiency (Evans 1995). To support
these objectives, controls were placed on the price of a range of agricultural
commodities, including rice.