Neighbors Need Each Other

Cambodia Daily Publisher Bernard Krisher and Business Editor Kay Kimsong interviewed Lao Prime Minister Bounnhang Vorachith for 90 minutes in Vientiane on Oct 18. The prime minister joined Laos’ revolutionary movement when he was 15 years old and rose steadily through both the military and political hierarchy. He is a member of the Politburo and has served as

Bernard Krisher/The Cambodia Daily Lao Prime Minister Bounnhang Vorachith

chairman of the country’s Foreign Investment Management Committee, its Central Board of Rural Development and as Finance Minister. He is generally seen as an advocate of economic reform. The premier has been called “a progressive technocrat” and an “economic czar” by Asiaweek magazine, which noted that Bounnhang Vorachith hopes to improve conditions for Laotians through closer ties with Asean nations.

Bernard Krisher and Kay Kimsong: What should be the relationship between the richer Asean nations and the less developed Asean nations?

Bounnhang Vorachith: It is a reality that there is a difference between the richer and poorer Asean countries. But as they have been put together into Asean, then all Asean countries have the potential to make each other stronger.

The countries that have means should help the countries who do not. If we cannot tackle a problem, then the rich can do it for the poor.

Q: What would you personally like to see come out of the summit?

A: One important thing is human resource development. And there is also infrastructure development. Laos can provide electricity to neighboring countries, and several link roads that run through Laos can help connect Vietnam with Thailand, as well as connecting China with Asean.
We already have some projects, including a road from Chiang Rai in Thailand to Kunming in China through Laos. There should be more. There is a bridge over the Mekong River between Thailand and Laos. We would also like a railroad to be built through Laos, connecting Asean with China.

Q: How did the Sept 11, 2001, terrorist attacks and the recent bombing in Bali, Indonesia, change the world? How did these events change Laos?

A: We think that these attacks have upset world peace and world security. And we agree with all the forces who want to counter the terrorists. We will continue to cooperate with the international community to combat international terrorism. However, the root causes of terrorism have yet to be addressed in a comprehensive manner.

Q: Is there any threat in Laos for a Bali-like incident?

A: I don’t think there is any direct threat to Laos. But what happened is a signal for us to be more vigilant about our security.

Q: Do you see Asean becoming another European Union with one currency and with people traveling and working in each other’s countries?

A: Asean is composed of many different countries with many different economic systems and cultures. And I think it would be difficult to have what the Europeans have. I think we would need more time to complete our integration.

Q: If Asean countries are so different, then what actually binds them together? What makes these countries come together and form a group? Is there some major theme that you see?

A: We are neighbors, and neighbors need each other, especially in the economic field. We need to have cooperation with trade.

Q: Is China’s growing economic power a threat to the growing economies of the Asean countries? Do they find it difficult to compete?

A: What is happening in China is both a threat and also a chance for Asean. We have to produce more and of course to work harder to be able to keep up with production. Asean has to improve its trade and investment policy to be more attractive and have better incentives, so that Asean will become a productive base for the Chinese market as well as for the regional and international market.

But we can also cooperate with each other. We have good relations with China. They are a direct partner of Asean. The Chinese people are producing more and earning more, so perhaps they will go outside their country and spend and invest their money. They are welcome to spend their money in Asean countries.

Q: North Korea is beginning to come out of isolation. Do you see them at some point becoming a dialogue partner with Asean?

A: Asean is open to cooperation with any country, so I think it is possible for North Korea to become a dialogue partner. North Korea has great potential in many areas, and if they are interested, they can take it up with Asean for further discussion.

Q: Do you see Asean developing a much stronger anti-terrorist posture? Is this going to be a big topic at the summit?

A: I also think that we need to talk about terrorism. Security will be one of the most important topics. Other challenges need to be addressed as well, namely the regional integration by narrowing the development gaps among member countries and alleviating poverty.

Q: Asean has a policy of non-intervention in each other’s affairs. But shouldn’t there be some exceptions when you have a leader like a Hitler or a Saddam Hussein or a Pol Pot and the people cannot defend themselves?

A: I think that each country has the right to defend its own state. I don’t think any other country can come and force it to do something else. We would prefer to have peaceful settlements of all conflicts. We don’t want to resort to war. We need peaceful, diplomatic solutions.

I do not agree with the comparison of these people to use as pretexts.

Q: The US and its European allies often pressure countries to adopt their systems of democracy. Some Asean countries counter by saying that they aspire to democracy but their people are not ready for it. How do you feel?

A: I think we have different philosophies. We have different values between Asia and the rest of the world. Even among Asian countries, we have different values. So I don’t think we can have the same measures for the whole world.
In Laos, for example, we have all religions present here. You can see churches and temples. There is no discrimination, even though some Western countries say that we do. We have freedom of everything. I think the Lao people are happy. Everyone is equal before the law. They can do whatever they want.

General elections in the US and Europe are also based on the majority and the minority is not elected, because it is the people’s consideration and the people’s choice. General elections are also held in Southeast Asia.

Q: Can people criticize the government in Laos?

A: Yes, and they do. If the government doesn’t succeed or do things the right way, then the people tell us. And if the government is doing well, so they also tell us. So, of course, I must acknowledge that there are failures, but the government has more successes than failures. The people do criticize us and the government accepts this. And they do it sincerely, so we can listen and improve our way of governing.

But what I don’t like are the people outside Laos who criticize Laos saying that we do things wrongly. They have seen the reality and yet they criticize, so I don’t like that.

Q: Is the traditional culture of Asean countries being challenged by the encroachment of Western countries?

A: The youth can copy other countries, but they should copy what is best while keeping our own identity and culture. We cannot completely reject and avoid impacts of external culture, but what is important is that we have to be selective.

The Internet, for instance, we cannot say is not good. It is a very good way of communicating now. But what people put on the Internet is sometimes not true, and is not correct in morals.

Q: Why have Asean nations been so slow in reducing poverty? What has held up their development? In your view, what is the root cause of poverty?

A: As far as our country is concerned, one of the causes was our very, very long war. During the war, there was no education and development possible. So, now we lack human resources because we have several generations who have had no education. This is one of the main root causes of poverty in our country.

All of the poor countries in Asean were once European colonies. Its negative impact on socio-economic development is still seen today. The situation is even more complicated in the era of globalization because the poor countries are unable to steer and protect themselves from adverse impacts due to their insufficient means to leapfrog economic development.
In Laos, we also need more schools, more hospitals, more roads and better irrigation. We need more foreign investment and we must also capitalize on our potential, including attracting more tourists to come and experience our culture. We should encourage more agriculture production and better rice cultivation. Laos has now become self-sufficient in rice and even has a reserve.

We are changing our rules and laws to make things more clear and efficient to attract more foreign investors.