Workers paid in dollars have fared better. Drought and widespread illegal exports of rice to Thailand and Vietnam have led to severe food shortages in some areas. In addition, the economic downturn has restricted opportunities for people to supplement their incomes. Migration from rural to urban areas has increased, putting pressure on limited social and economic infrastructure and resources. Diseases linked to poor housing conditions, inadequate access to clean water, and malnutrition are widespread.
Cambodian refugees being repatriated from Thailand face the formidable challenge of resettlement.
Lao PDR Triple-digit annual inflation and substantial price increases for basic commodities have reduced real incomes and purchasing power, forcing changes in consumption and saving patterns. Diets have been adjusted, spending on clothing has been reduced, and nonfarming households are growing more of their own food. The costs of school supplies and drugs have increased significantly, beyond the reach of many poor rural families. More affluent farmers have benefited from higher agricultural prices in Thai markets and a favorable baht-kip exchange rate. However, poorer farmers and those with inadequate access to markets have suffered significant real income erosion and declining living conditions.