Financial Crime World

Corruption Runs Rampant in Laos: Government Must Act

The streets of Savannakhet, a city flooded with military and police forces, are notorious for bribery and extortion. A recent incident involving four cousins, including this reporter, highlights the pervasive nature of corruption in the country.

The Pervasive Nature of Corruption in Laos

A Lack of Accountability

On a Monday in July, the group was pulled over by a soldier on a motorcycle who demanded around 400,000 kip ($20) to avoid receiving a ticket. The officer’s actions were unjustified and exemplify the lack of accountability within the government.

  • According to official statistics, over 1,300 police officers were fired for bribery accusations in 2016 alone.
  • This incident is not an isolated case, but rather a symptom of a broader problem that plagues the country.

The Prevalence of Corruption

The prevalence of corruption amongst authorities and government systems creates an environment where it is difficult to uphold a commanding force that is dependable. In instances where there is a lack of regulation, a culture of corruption persists.

Laos’ Struggle with Corruption

Laos has struggled to combat this issue since the Vietnam War in 1975, when it established a one-party rule using a socialist system with the assistance of Vietnam and the Soviet Union. The government recognized corruption as a problem in 1986 but failed to implement effective measures to address it.

A History of Inaction

  • A State Inspection Committee was formed to investigate corruption claims but was quickly dissolved without achieving significant results.
  • In 2005, the Law on Anti-Corruption was issued, defining corruption as “Behavior of the Civil Servant from the top rank to the bottom who uses his or her job opportunity or authority to corrupt, get bribes, steal assets of the state to be his or her belongings and other behaviors for his or her family, friends, relatives, cousins or business partners’ benefit.”
  • However, without a designated body to enforce this law, corruption continues to plague the country.

International Efforts to Combat Corruption

The international community has recognized the severity of this issue and is working with the Laotian government to address it. Non-governmental organizations such as the United Nations Office on Drugs and Crime (UNODC) recommend expanding the use of technologies like online platforms and open data sets to fight against corruption.

A New Approach

In partnership with the UNODC Regional Office for Southeast Asia and the Pacific, the Asian Development Bank, and the Organization for Economic Co-Operation and Development, Laos can build back trust within its government by digitizing processes, tracking economic exchanges, and restructuring systems to properly advance development.

The previous policy of inaction has failed the people of Laos, and it is time for the government to take a new approach. Utilizing international resources and creating a plan based on technological development while expanding education can help reduce dishonesty and build trust for the Lao people.