in other areas is underdeveloped because of an insufficient electricity supply necessary for irrigation and the lack of a road network essential for transportation of materials. Meanwhile, there is a situation that the farmers, because of a narrow market for selling their products, can not earn the cash necessary for them to pay the electric power fees. $ ^{40} $

## (4) Livestock Industry

There are plains that are good for cow pasturage and 1,700,000 cows are bred in the whole country. Laos has experience in exporting beef. In the near future Laos investigate exporting to Honk Kong. Therefore, modernization of the livestock industry is necessary.

## (5) Subject of Agriculture

The instability of agricultural production is a problem Laos needs to overcome. The government of Laos established the following goals of agricultural development with the basic principle of expanding the domestic market for agricultural production:

(a) Development of infrastructure including irrigation equipment in order to streamline production, and establishment of organizations and systems.

(b) Establishment of economic policies for the domestic distribution system and export promotion in order to support the expansion of agricultural production.

(c) Creation of a sufficient financial surplus to stimulate and expand the economic activity of other sectors.

To realize these goals, the following basic strategies were formed.

(a) Production expansion of basic food crops and surplus export.

(b) Promotion and support of efficient farms.

(c) Promotion of agricultural production activity that considers environment protection.

(d) Introduction and spread of new technologies in order to stabilize the annual yield.

It is important that a system for self-sufficiency system is established first. A surplus of rice relieves the pressure on slash-and-burn cultivation, and promotes diversity in culture crops. Now, plant breeding, improvement of cultivation methods, effective usage of manure and agricultural chemicals, mechanization and intensive agriculture are all remarkably underdeveloped. It is desired that profit-oriented farmers will appear. $ ^{41} $ The lack of personal ownership rights is an important problem for agricultural development. Although people do not have legal ownership, “the sale of land” is actually permitted. Clause 17 of the Constitution does not approve the ownership of land, but “the right of usage,” “the right of succession” and “the right of transfer” are permitted; “the sale of land” means sale of “the right of usage”. $ ^{42} $ In order to commercialize agriculture, the lack of clear ownership is a significant problem.

## 3 -3-3 Two Alternatives of Long Term Development

From a geographical point of view, two strategies might be open to Laos.

(1) Strategy 1: Towards “Regional Cooperation” with Neighboring Countries

This strategy is not keen to the establishment of a national economy that will be closely networked with other countries. Before setting up one national economy, relations with neighbors should be promoted. At present, there are three local economic areas: Luang Prabang, Vientiane and Savannakhet. Luang Prabang has a close connection mainly with China, Vientiane forms a close connection with Thailand, and Savannakhet has a close