For the government of the Lao People’s Democratic
Republic, rural development is central to national
development. Over 50% of GDP is generated by the agricultural sector and the 1998/1999 agricultural census
recorded that 84% of households were engaged in
farming (ADB, 2000, p. 176; Lao PDR, 2000a). Moreover,
the draft of the fifth national development plan
(2001–2005) states that rice production remains ‘the
most fundamental issue’ for the country (Lao PDR,
2001a) and reiterates its commitment to a national
development strategy that prioritises agricultural production.
Finally, not only is agriculture the key sector of
the Lao economy but most of the rural population
embrace livelihoods that are subsistence in orientation.
Some 94% of farm households produce mainly for their
own consumption and it is claimed that no rice is marketed
in half of villages in the country (Lao PDR, 2000a;
World Bank, n.d).