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What causes poverty in Laos?


            
             • Low human resource development.
            
             • Low infrastructure .
            
             • Weak government institution.
             3. The intervening variables are:.
            
             • High value added to import and export products.
            
             • Short of land for agricultural production.
            
             • Destroyed of human resources.
            
             • Unexploded ordnance (UXO) contamination.
            
             • Lack of labor force.
            
             • Unqualified staff in both government and private sectors.
            
             • Low income.
            
             • Access to health care.
            
             • Access to schools.
            
             • Access to big markets.
            
             • Corruption.
            
             • Inefficient systems for public service management.
             Diagram.
             .
             II. Interpretation of the relationship between the variables.
             1. Geographical disadvantage.
             The independent variable (geographical disadvantage) is one cause of the dependent variable (poverty in Lao PDR). How these two variables are related? According to its geographical location Lao PDR is located in the heart of Indochina surrounded by China to the North, Vietnam in the East, Cambodia in the South, Thailand and Myanmar in the West and Northwest. Because of this fact Laos is inaccessible to the sea. In addition, it is mountainous and thinly populated country. These geographical disadvantages pose difficulties in the development of trade, social, infrastructure, transport and communication links. .
             Geographical disadvantage links to poverty via another two intervening variables namely: high value added to the import and export of products and lack of land for agricultural production. As Lao PDR has no direct access to the sea ports, the transition of import and export activities have to rely on its neighboring countries seaports such as Khongtay in Thailand and Danang in Vietnam. The transportation of goods from and to these two seaports is another burden to cause more money and time for Laos because Laos has poor transportation system which cannot fully facilitate this activity.


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