The United States and the Lao People's Democratic Republic (LPDR), a small, largely agrarian Southeast Asian country ruled by a communist government, cooperate in many areas despite ideological differences and U.S. concerns about the ethnic Hmong minority. The slow warming of bilateral relations reflect efforts by the U.S. government to pay more attention to Southeast Asia in general and by the Lao government to broaden its foreign ties as China becomes more influential in the region. The U.S. government has embarked upon a policy of economic engagement with Laos, expanding technical assistance to the Lao government to build its capacity to implement trade agreements and modernize its legal and regulatory framework: "This is probably the most important action the U.S. Government can currently take to influence the future direction of Laos' policy." In June 2009, the Obama Administration removed the prohibition on U.S. Export-Import Bank financing for U.S. companies seeking to do business in Laos, citing Laos' commitment to opening its markets. In other areas of the relationship, the U.S. government has noted progress and bilateral cooperation. In 2008, the United States and Laos exchanged defense attachés (the first time in over 30 years). Although substantial restrictions on civil rights and political freedoms remain, fewer human rights abuses have been reported in recent years. The country was upgraded to Tier 2 on the U.S. State Department's trafficking in persons list in 2007, and in 2008-2009 the Lao government "demonstrated some progress in its anti-trafficking law enforcement." However, Laos increasingly has become a transit area for the trafficking of Vietnamese, Chinese, and Burmese women destined for Thailand. Bilateral cooperation on counter-narcotics activities has contributed to a 96% decline in opium production between 1998 and 2007, although smuggled methamphetamine use reportedly has risen among Lao youth. Major areas for U.S. policy consideration include urging the Lao government to accept international monitoring of the resettlement of former Hmong militia members and returnees from Thailand; increasing assistance for de-mining activities; granting trade preferences or tariff relief for Lao products, particularly garments; and developing programs for sustainable management of the Mekong River. The United States provides relatively little foreign assistance to Laos. U.S. State Department funding for foreign operations programs in Laos in FY2009 was estimated to be $5.0 million compared to $5.8 million in 2008. By comparison, the United States provided neighboring Cambodia, a country of similar economic development, roughly $65 million in FY2009. The largest aid programs in Laos focus on de-mining and counternarcotics programs. New programs include those strengthening the country's legal and regulatory framework and trade capacity. Other, ongoing areas of U.S. assistance and bilateral cooperation include HIV/AIDS prevention and treatment, military education (training in English language and military professionalism), and the recovery of Americans missing in action (MIAs). U.S. public diplomacy programs in Laos include support for libraries, providing access to international news and Western media, English language training, sponsoring Lao government officials studying in the United States through the International Visitor Leadership Program, and lectures and workshops on U.S. political and legal institutions. Over 2.5 million tons of U.S. munitions were dropped on Laos during the Vietnam War, more than the amount inflicted on Germany and Japan combined during World War II. Unexploded ordnance (UXO), which affects between one-quarter and one-third of the country's land area, causes an average of 120-300 deaths per year. U.S. funding for de-mining activities has fallen from a high of $3.3 million in FY2006 to an estimated $1.9 million in FY2009. The LPDR also receives assistance through the Leahy War Victims Fund. Ongoing Leahy programs include education and employment for people with disabilities ($280,000), support for children ($992,900), and medical care, rehabilitation, and socio-economic integration services ($1,380,000). Laos is ruled by the Lao People's Revolutionary Party (LPRP), which is committed to maintaining a one-party state. According to many experts, the LPRP's hold on the government, legislature, courts, labor unions, mass media, and society remains firm, in part through an extensive security apparatus. Despite restrictions on political activities, relations between Lao citizens and the government generally have been calm in recent years. The government under Prime Minister Bouasone Bouphavanh has made some efforts to energize the Lao economy and society as well as make the government more responsive. It has pursued pro-market reforms and attempted to reduce political corruption and cronyism. In addition, the National Assembly reportedly has become more vocal about corruption, government accountability, and economic policy. In 2008, the National Assembly passed laws allowing for private ownership of media outlets and the formation of civil society groups. In May 2009, Prime Minister Bouasone signed the Decree on Associations establishing a legal framework for the formation of local non-governmental organizations (NGOs), which foreign activists say is key toward establishing an effective international NGO presence and civil society in Laos. In 2009, the LPDR ratified the United Nations International Covenant on Civil and Political Rights. Anti-government activities, such as public protests and bombings, have all but disappeared since the 1999-2004 period. During that time, university students and teachers staged two demonstrations for democratic reforms. Rebel militias operating out of Thailand carried out several attacks on Lao border posts. Anti-government groups detonated over a dozen small bombs in the capital, Vientiane, and other cities, killing several people. Several ambushes of highway buses and other vehicles, in which over 40 people died, were reported. These isolated attacks, which the Lao government either downplayed or for which it blamed Hmong insurgents, however, did not spark widespread anti-government activity. Once dominated by its links to Vietnam, Laos' foreign policy horizons have broadened to include Southeast Asian regional powers and the United States. Laos has maintained a "special relationship" with Vietnam since the communist victories in the two countries in 1975 and formalized in a 1977 Treaty Of Friendship And Cooperation. Vietnam's influence on Laos remains strong and paternalistic, particularly in political and military affairs and among the Revolutionary Party's old guard, although China's economic influence is growing. Laos' northern provinces reportedly are becoming economically integrated with China's Yunnan province, while Chinese commercial influence is emerging in Vientiane. In addition, China has become a principal source of economic assistance, including grants, low-interest loans, technical assistance, and foreign investment. Some observers believe that Hanoi has encouraged the Lao government to improve relations with the United States in an effort to counteract Chinese influence. Laos also has cultivated good relations with other neighbors. The LPDR shares cultural and religious traditions and maintains close economic ties with Thailand, and its relations with Cambodia and Burma (Myanmar) are generally cordial. Laos joined the Association of Southeast Asian Nations (ASEAN) in 1997, partly to tie its development to the group's growing internal and external trade linkages. As a member of ASEAN, Laos is a party to the ASEAN Free Trade Area (AFTA), which requires Laos to fully comply with tariff reduction requirements by 2015. Vientiane hosted the 10 th ASEAN Summit in November 2004, the ASEAN Ministerial Meeting in July 2005, and the Southeast Asian Games in December 2009. The United States and Japan have stepped up efforts to engage the lower Mekong sub-region of which Laos is a part. In July 2009, Secretary of State Hillary Clinton attended the ASEAN Regional Forum in Thailand, which focuses on regional political and security matters. On the sidelines of this gathering, Clinton participated in the first U.S.-Lower Mekong Delta Ministerial meeting. At the Ministerial meeting, which included the nations of Cambodia, Laos, Thailand, and Vietnam, the United States pledged to continue or enhance cooperation and assistance in the areas of the environment, health, and education. In recent years, Japan also has made an attempt to enhance ties in the sub-region, largely reflecting a response to China's growing influence. In November 2009, Japanese Prime Minister Yukio Hatoyama pledged $5.5 billion in assistance to the Mekong delta sub-region. All lower Mekong countries are members of the Mekong River Commission (MRC), founded in 1995, which works to facilitate cooperation and sustainable management of water. Members of the MRC are concerned about the existing and potential adverse impacts of the operation of Chinese dams in the upper reaches of the Mekong upon the environment, fish stocks, and agriculture downstream. In 2009, the United States pledged more than $7 million for environmental programs in the lower Mekong. Laos is one of the poorest countries in Asia, with a per capita income of $2,100 (purchasing power parity) and a ranking of 133 on the United Nations Development Program's Human Development Index , but its economic prospects are improving. The Lao economy experienced a relatively brief period of collectivization (1975-1985). In 1986, the LPDR government began a policy of economic reform—disbanding collective farms, legalizing private ownership of land, allowing market forces to determine prices, and encouraging private enterprise in all but some key industries and sectors. Between 1988 and 2008, the country's economy grew by over 6% per year on average, with the exception of 1997-1998 due to the Asian financial crisis.