Analysts say it shows the ruling party's willingness to compromise for the sake of political unity.
Saritdet Marukatat Changes in Laos' political leadership yesterday showed that the ruling party is open to compromise and has the strength to face the Asian financial crisis. Khamtay Siphandone, leader of the ruling Lao People's Revolutionary Party, relinquished his post as prime minister to step up to the presidency, succeeding Nouhak Phoumsavanh, who retired yesterday. Gen Khamtay was succeeded as prime minister by Vice President Sisavath Keobounphoun. Both generals will hold their posts for the next five years. For the past six years Gen Khamtay has repeatedly emphasised the need for the ruling party to compromise and to maintain unity in order to remain in power in the face of the widespread collapse of communist parties following the fall of the Soviet Union in 1991.