Chapter II - The Socio - Economic System


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Article 13. The economic system of the Lao People's Democratic Republic relies on the multi-sectoral economy with the objective of expanding production and broadening the circulation of goods, and transforming the natural economy into a goods economy in order to increasingly develop the bases of national economy and improve the material and spiritual living conditions of the multi- ethnic people.

Article 14. The state protects and expands all forms of state, collective and individual ownership, as well as private ownership of domestic capitalists and foreigners who make investments in the Lao People's Democratic Republic. The state encourages all economic sectors to compete and cooperate with one another in expanding their production and business. All economic sectors are equal before law.

Article 15. The state protects the right to ownership (rights to governing, rights to using to transferring) and the rights to inherit property of organisations and individuals. As for the land which is under the ownership of the national community, the state ensures the rights to using, transferring, and inheriting it in accordance with the law.

Article 16. The economic management is carried out in line with the mechanism of market economy with the adjustment by the state, implementing the principle of promoting the centralised, unified management of the central branches in combination with the division of managerial responsibility for localities.

Article 17. All organisations and citizens must protect the environment and natural resources: land, underground, forests, fauna, water sources and atmosphere.

Article 18. The state promotes and gives advice on the development of economic relations, under many forms, with foreign countries on the basis of the principle of respect for each other's independence, sovereignty, equality, and mutual benefits.

Article 19. The state pays attention to developing education in combination with the building of the new generation to be good citizens. The objectives of the educational, cultural and scientific activities are to raise the level of knowledge, the patriotic spirit, the spirit of cherishing the People's Democratic Regime, the spirit of maintaining unify and harmony among the people of various ethnic groups ; enhance the sense of being masters of the country ; and implement the compulsory education system at primary levels. The state authorises the operation of private schools which function under the curricula of the state. The state together with the people build schools at all levels to turn education into a comprehensive system ; and pay attention to developing education in the areas where the ethnic minority people reside.

The state develops and expands the fine, traditional culture of the nation in combination with adopting the progressive culture of the world ; eliminates all negative phenomena in the ideological and cultural spheres; promotes culture, art, literature and information activities, including in mountainous areas ; and protects the antiques and shrines of the nation.

Article 20. The state pays attention to expanding the public health service, allows private individuals to operate medical services in accordance with state regulations. The state promotes the expansion of sports, gymnastics, and tourism ; pays attention to taking cares of disabled combatants, families of those who have sacrificed their lives and who have committed good deeds for the nation, and pensioners.

The State pays attention to pursuing the policy toward mothers and children.


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