Abstract
This study attempts to determine the importance of sustainable development and aims to propose some
indicators and tools that would be used to facilitate a transition towards sustainability. It is assumed that
sustainable development is a function of three factors, economic growth, social development and
environmental conditions. The results are then combined with certain principles of sustainability, to develop
a roadmap for sustainable development in Laos. Annual time series data is used for the period 1990-2010.
In order to generate the most appropriate equation for analysis, relevant theoretical and studies are
reviewed. This study proves that sustainable development is a fair combination of the three main factors of
development, economic growth, social development, and environmental protection, under the condition that
economic growth is distributed to all the population, through poverty reduction, minimizing inequality in
society, and maintaining a good condition of the environment and natural resources. It is about achieving
the economic growth needed to meet human needs, improve living standards, and provide the financial
resources that make environmental protection possible.