Gắn kết tăng trưởng kinh tế với thực hiện công bằng xã hội ở nước cộng hoà dân chủ nhân dân lào tóm tắt tiếng anh

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PREAMBLE
1. Reason for selecting the topic
The choice of the socialist path has given unprecedented changes in the
history of Lao PDR. It is not only the national independence that has been
completely and gloriously recovered, but also the revival of the country's
development progressively.The people's life has been gradually improved, the
facilities international integration have become more prevalent and the place of
Lao PRD in the international arena has been emphasized . The superiority of
the socialist path is deeply expressed in the indispensable trend of the link
between economic growth and the realization of social justice, the protection
and development of human life, especially the blue collar. Since the years ofDoi
Moi, the Lao party and State government have increasingly awareness of an
important role of this connectivity that plays in the successive stagesof the
socialist transition. There are more strategized strategies to move towards these
trend in order to accomplish greater economic growth and address an issue of
social justice.
Though, the economic growth issues associated with social
implementation, including complexity of both economic and social in social
justice
It is also theoretically new issue in workplace in Lao PDR. It has been set up
with all countries, especially developing countries.
Lao PDR, it is not a question of whether economic growth is linked to the
implementation of social justice, but methodology of implementing this bond
can be fully effectively taken. Therefore, the selection the topic of "the
connectivity of economic growth with social justice in Lao PDR" is the topic for
doctoral dissertation.
2. Purpose of the study:

The dissertation is aimed as the following purposes:
The rationale of Interpretation for the connectivity of economic growth
with social justice to clarify the scientific, revolution and progressive
significance of the Lao Party and State during the construction of socialism.
The Study some countries’ experiences in linking economic growth with
social justice in order to bring lessons in the process of creating and developing
the country.
Practical research has linked economic growth with the introduction of
the social justice process into the justice system for almost 30 years.
Propose guidance and solutions forbetter integrating economic growth
with social justice in subsequent stages in Lao PDR.
3. Objective of the research:
The thesis is concerned with economic growth, social justice, the linkage
of economic growth with the implementation of social justice.

4. sResearch cope :
Time period: Focus on the period from 2006 - 2015, orientation to 2020
and vision to 2030.
Scope: International experience’ Studies, especially experience of the
country in the form of socialism ; Socio-Economic Development Practices in Lao
PDR.
5. Research questions
+ What is the link between economic growth and social justice? What is
the content of the mount?
+ Assessment criteria for the link between economic growth and social
justice? What is the content of the mount?
+ What factors influence the link economic growth with social justice?
+ The situation linking economic growth with social justice in Lao PDR.
What are the advantages, what is the limitations? What are the causes of these
limitations?

Based on the socio-economic development strategy of the Lao PDR with
a vision of 2020 in the context of domestic and international context, , the
perception of link between economic growth with social justice in the People's
Democratic Republic Laos in the future?
In theory , from the practical experience of some countries, from the
limitations and causes of limitations of Lao PDR on linking economic growth
with the implementation of social justice, the coming time to strengthen and
raise High efficiency cohesion need to have breakthrough solutions?
6. Research Methodology.
Approach: According to this thesis, the topic that links economic growth
with the implementation of social justice is the State. Therefore, the State must
identify the objectives, develop the strategy, from the strategy to build the
roadmap, step and issue appropriate policies for each stage and organize the
implementation of that policy.
With this approach, the thesis is conducted in a way that combines qualitative
research with quantitative research:
- Qualitative approach aims to assert that the economic growth
associated with the implementation of social justice in Laos is increasingly
promoted, so that the awareness of the Party and the Lao government has
become increasingly deeply inevitable of this career in the transition to
socialism, due to economic necessity in the process of orientation to sustainable
development to develop the country and integrate into the international life.
- Quantitative research aims to clarify the status, level, progress,
achievements and limitations of economic growth associated with social justice
in the reform period. It can also determine the relative content of the lessons.
7. Contributions of thesis


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- Giving insights on the link between economic growth and social justice;
content that links economic growth with the implementation of social justice;
identify the factors that influence the link between economic growth and social
justice.
- New proposals
+ Economic growth is a material condition that ensures social justice;
Social equality is the driving force for high and stable economic growth.
economic growth must be done simultaneously with social justice in each step;
+ Suggestions on how to link economic growth with social justice in Lao
PDR that consist of: 1) Improving quality in developing strategies for linking
economic growth with public performance. social; 2) Develop a roadmap, a step
to link economic growth towards social justice; 3) Raising the leadership role of
the Lao PDR Party in applying the relationship between the state and the market
to build an institution that links economic growth with social justice; 4)
Complete policies to promote economic growth
8. Structure of thesis
Apart from the introduction, conclusion, annex and reference list, the
thesis is structured in 4 chapters.
Chapter 1: Overview of research situation
Chapter 2: Theoretical bases and practical experience on linking
economic growth with social justice.
Chapter 3: The Situation of Linking Economic Growth with the
Implementation of Social Justice in Lao PDR.
Chapter 4: Viewpoints and solutions that continue to link economic
growth with social justice in Lao PDR.
Chapter 1
OVERVIEW OF RESEARCH
1.1. Research works related to the topic are conducted in Vietnam

and abroad
- Addressing issues at the macro level, most notably is "About the great
relationships that need to be addressed in the transition to socialism in
Vietnam." This is an important theoretical book in Vietnam, edited by General
Secretary of the Communist Party of Vietnam Nguyen Phu Trong.
- Research topic of PhD. Pham Xuan Nam "The relationship between
economic growth - social justice and environmental protection" is complex and
in-depth scientific research.
- Research by Prof. Dr. Hoang Duc Than with the title "Linking
economic growth and implementing social progress and equality in our
country", published in Communist Magazine September 13, 2015 is one
products directly related to this topic.
- Research by Dr. Nguyen Dinh Chien, National University of Hanoi
provides many suggestions for the contents to study to establish a link between
economic growth and social justice.

- A study by an Indian author named "Reducing Poverty in India - The
Role of Economic Growth" by Pradeep Agrawal (2015). This paper examines
the relationship between economic growth and poverty reduction in the case of
India.
- The study by Huck-ju Kwon and Ilcheong Yi entitled "Governing
Multifunctional Institutions in Korea: Economic Development and Poverty
Reduction in Korea: Managing Multifunctional Institutions" (2008). To combat
poverty, it is necessary for developing countries, where the majority of the poor
live to strive for economic development. Combining economic development and
poverty reduction is a challenge for developing countries.
- The article by Douglas Voigt: "Economic Growth and Social Justice:
Testing a Third Way of Assumption on the German Case" (Experiment on a
Third Assumption on the German Case) (2016). This paper aims to examine
whether economic growth contributes to social justice as is specifically

assumed by proponents of the Third Way approach for labor market policy.
1.2. The research works related to the topic by the Lao authors
+ Ph.D. in Economics of "Attracting Foreign Direct Investment in Lao
PDR" by Phonesay Filaysack (2010) National Economics University,
emphasizes the impact of FDI on socio-economic life in Laos, contributes
positively to resources to promote both economic growth and social justice way.
+ The scientific report in the workshop of Khammary Intharath (2011),
entitled "Attracting foreign investment, developing solutions for Lao power
industry", confirms that principle. It is important to develop technical
infrastructure to improve people's lives and solve many jobs.
+ Ph.D. thesis "Reality of poverty reduction policy in Upper
NorthernLao PDR through practice in Xieng Khouang province" by Feuangsy
Laofoung - National Economics University provides important material in real
life. High rates of poverty reduction the most difficult area Laos.
The Ph.D. thesis on economics of Khamphanh Pheuyavong (2013),
National Economics University with the theme "Improving poverty reduction
policy of Lao PDR" is a comprehensive research topic on policies. Strategic
significance of many countries.
1.3. Overview of some key contents of the research related to the
topic
The research we have covered in the last two sections deals with almost
all of the issues related to the research objectives of this thesis, the inevitability
of the link between economic growth by addressing a satisfactory social
problem as the society strives for holistic and sustainable development. Forms
of coherence have been put into place in the following theoretical and practical
insights.
The first is a widely recognized general perception as the basic lesson
learned after studying any coherence that has been made, that cannot be ignored in
either side, or Two areas, one on the one side, economic growth and one on the

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other hand address the social problems that arise in the process of economic
growth.

dependence on an external economy for economic progress, economic ruin in
the last moments cannot be anticipated.
Although there are many different interpretations, the term is very close
to the concept of "sustainable development" increasingly mentioned in theories
of economic growth, in the economic perspective of governments. In other
words, improving the quality of economic growth is a way of achieving
continuous economic growth that has a direct effect on other areas of social life.
However, researchers sometimes use this term to indicate progress in a
particular area, such as investment quality (investment in the right direction,
reasonable investment versus GDP, effective investment fruit, quality of labor,
quality and knowledge content in the product cost ...

The second is a theoretical understanding, it is in essence life, economic
growth is not a purely economic process, but it must be a social process.
Thirdly, it is the general social change as a result of economic growth and
social equality that inevitably leads to the fact that effective policies, plans and
methods are missing out on obsolete.
The problem is: How to know that the need to adjust, innovation as
appropriate. This is an extremely difficult field, because social development
itself is always a process of design, construction, no predetermined, no "magic
wand." Which arguments outline the path and solution. Addressing this issue
depends on the stature and competence of governments, as a place to plan and

command social development programs.
Finally, the application of the lessons that countries have left to apply to
the process of linking economic growth and social justice in Lao PDR must
always be considered on two areas. On the one hand, it is necessary to learn
good experiences with a modest attitude. On the other hand, the use must be
very creative and practical, in particular, impossible to stereotype, machinery.
In short, there is no specific study linking economic growth with social
justice in Laos, both in terms of practicality and general theory. This is also the
reason for us to select this topic as the research topic of the thesis.
Chapter 2
INTELLECTUAL PROBLEMS AND GOOD PRACTICE ON
ASSEMBLY ECONOMIC GROWTH WITH THE IMPLEMENTATION
OF SOCIAL EQUIPMENT
2.1. Theory of economic growth
2.1.1 The concept of economic growth
Economic growth refers to the increase in the output of an economy
(world, region, country, region, sector ...) over a given period (usually one year).
In terms of economic growth, GDP (gross domestic product), gross national
income (GNI), national income (NI), total production value (GO) average per
capita income.
Quality of economic growth
The birth of the word "quality of economic growth" is a step forward in
the understanding of the social significance of economic growth. The fact is that
economic growth has not always brought about social progress and human wellbeing. Although it is only a matter of purely economic consideration, economic
growth is not always economy. If we destroy our environment, create more
gulfs between the rich and the poor, exploit our resources and accept our

2.1.2. Growth metrics
a. Gross output is the sum of the value of a physical product and service
produced on a country's territory over a given period (usually one year).

b. Gross Domestic Product (GDP), which is the sum of the final value of
a physical product and service resulting from a country's economic performance
over a given period of time.
c. Gross national income (GNI). This is an indicator that appeared in the
1993 SNA table instead of the GNP index used in the 1968 SNA. In terms of
content, the GNI and the GNP are the same, but using the GNI is a telling
approach. Enter, not the product aspect of production as GNP.
In this respect, the GNI is the gross income from the final product and service
produced by a citizen of a given country for a specified period of time.
GNI = GDP + Difference in factor income from foreign countries
Income difference factor =
Earn factor income Pay off factors abroad
with foreign countries
from abroad
d. National income (NI): is the value of new products and services
created over a specified period of time. NI is the gross national income (GNI)
after excluding the fixed capital depreciation of the economy (Dp)
NI = GNI − D p

e. National Disposable Income (NDI) is the national income for final
consumption and net accumulation for a given period of time.
NDI = NI + Difference in current transfer with foreign countries.
Difference in current transfer
= Current transfer revenue Payment
of current with foreign countries
with foreign countries
transfer
abroad
f. Per capita income
In terms of income, GNI and GNI are also used to measure the per capita

income of each country (GDP per person, GNI per capita). This indicator reflects
economic growth taking into account population change. The scale and growth of
per capita incomes are important indicators to reflect and a prerequisite to raising


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the general standard of living. The steady increase of this indicator is a sign of
sustainable growth and is also used in comparing living standards among nations.

begins and ends on 45 °, which means that 0% of the population corresponds to
0% of income and 100% of the population to 100% of income. The points on
the Lorenz curve reflect how many% of the population correspond to how
many% of income (figure below).
100
Thu nhập cộng dồn (%)

2.1.3. Growth drivers
2.1.3.1. Factors that directly affect the total supply
- Capital (K) is an important input material that has a direct impact on
economic growth.
- Labor (L): They are laborers with production skills, laborers who can
operate complicated machinery and laborers who have new ideas and methods
in economic activities.
- Natural resources and land (R): Land is an important factor in
agricultural production and is an indispensable factor in the arrangement of
economic establishments in the industries and services.
- Technology (T). Technological elements need to be fully understood in

two forms: first, they are the achievements of knowledge, ie knowledge of
science, the study of the principles, the trial of product improvement,
technological process or technical equipment; Second, the widespread adoption
of research and experimental results in order to improve the general level of
production.

80
Đường 450
60

Đường
Lorenz

40
20

1
20

40

60

Dân số cộng dồn (%)

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Figure 2.1. Lorenz Street

2.2. Basic issues of social justice
2.2.1. The concept of social justice
Social equality is the set of principles and practices that are created by the
state, the law and social relationships to establish realities that meet physical
and mental needs, The social conditions for the members of the society, aiming
to ensure the society is always harmonious, stable and development.

(ii) GINI coefficient
A measurement, widely used in practice today, is based on quite
successful succession, and at the same time overcomes the limitations of the
Lorenz line tool, which is the GINI coefficient, named a statistician. The Italian
study (Corradio Gini), 1912 study. The quantitative calculation of GINI is also
consistent with Lorenz's comparison of the income gap between population
groups and gross national income (total income made by the population group).
(iii) Kuznets ratio
The Kuznets ratio is the ratio of the income proportion of the population
to the highest income level and the share of income in the population of the
lowest income population, (x may be different from y, and Value 5%, 10%,
20% etc ...). These ratios are essentially "pieces" on the Lorenz Road, and it
only serves to assess the degree of social divide between the richest and the
poorest poles.
(iv) Proportion of income of the poorest people.
This measure is the share of income in x% of the population with the
lowest income (x can be 10% or 20%, etc.).

2.2.1. The measure of social justice
(i) Lorenz curve
The Lorenz curve is expressed in a graph, where the vertical axis is the
percentage of cumulative income (20%, 40%, etc.), and the horizontal axis

(horizontal axis) is Percentage of cumulative population is sorted by population
group with increasing income (20%, 40%, etc ... 100%). The 450 reflects the
distribution in absolute equilibrium (what percentage of the population is the
percentage of income), we call this the theoretical distribution. The Lorenz line

2.3. The relationship between economic growth and social justice
Economic growth and the realization of social justice are two distinctive
categories, nevertheless there is a mutually reinforcing relationship in the
process of socio-economic development of a country. Hence, when developing
the development orientation for each specific period, there must be a proper
combination between economic growth and social justice. The objective of
economic growth should be implemented at the same time or in conjunction
with the implementation of social justice. The early combination of economic

2.1.3.2. Factors affecting aggregate demand
Macroeconomics has shown that there are four direct elements of
aggregate demand:
- Expenditure for personal consumption (C).
- Government spending (G).
- Expenditure on investment (I).
- Spending on import and export (NX = X-M).


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growth and good social justice is an important factor in sustainable
development.

goal in building a prosperous, democratic, developed and civilized country. On
the one hand, the principles and rules of the market mist be adhered to and
committed to international integration to create a sufficient and transparent
environment and incentives for resources utilization and continuous market
improvement and
Social investment. On the other hand, it does not absolutize role of the market,
neglecting the role of tectonic and macroeconomic adjustment of the state.

2.4. Linking economic growth with social justice
2.4.1. The concept of linking economic growth with social justice:
Linking economic growth with social justice is a process of deliberate
and meaningful action by the state through strategies, plans, laws, policies, and
regulators. The economy and social relations in order to stimulate and create
conditions and motive force for economic growth; at the same time, step by step
organize and implement the equality of community.
2.4.2. The need to link economic growth with social justice
- Linking economic growth with the implementation of social justice to
achieve the goal of sustainable development of socio-economic of the country.
- Linking economic growth with the implementation of social justice is
the basis for stabilizing the country's politics
- Linking economic growth towards social justice is inevitable both in
theory and in practice
2.4.3. Content linked economic growth with the implementation of
social justice
2.4.3.1. Strategically, the focus must be on economic growth with social
justice
in the sense that it will create resources, including material resources and
human resources, for sustainable development. Linking economic growth with
social justice has a role to play in implementing sustainable development.
2.4.3.2. Developing a roadmap and steps to link economic growth with

social justice
On the roadmap, the steps to link economic growth with the social justice
of the Party congresses and the five-year plans of the state will be tasked to
summarize the situation in the previous periods, clearly aware and honestly the
achievements and omissions and the causes. On that basis, set goals, measures
and concrete steps over the next five-year period and visions further. It is
necessary to avoid impatience and willpower while setting goals and targets,
always respecting the rationality in linking economic growth towards social
justice.
2.4.3.3. Applying the relationship between the State and the market in
building institutions link economic growth with the implementation of social
justice
The relationship between the state and the market in creating institutions
that links economic growth with social justice are not a conflicting, eliminating,
and restraining relationship, but there is a mutual relationship. Together, they are
mobilizing and complementing each other in one body and towards the common

2.4.3.4. Promulgate and implement policies to promote economic growth
to achieve social justice
If the establishment of a steering committee dedicated to promote
economic growth is difficult, the development of policies and measures to link
economic growth are many reasons to apply. This work may cover the
following areas:
First of all, investment policy and investment activities promote growth.
This is a great potential opportunity link economic growth with social justice.
Investment policies are the key tool for execution of economic and social
programs, Depending on the state and local economic development plans,
Second, policy and development measures for economic sectors.
Third, financial and monetary policy measures to raise capital for
investment and development sectors. This is a very effective tool to achieve the

goals of promoting economic growth.
Fourth, policy and implementation measures for infrastructure development.
Infrastructure is an important condition for promoting socio-economic
development. For countries in the process of moving to market economy such as
Vietnam, Laos, and Cambodia. The construction of a modern and synchronous
infrastructure system will be an important factor to promote the process of
economic restructuring, raising the efficiency and competitiveness of the
economy.
Fifth, policies and measures to develop education and training to improve
the quality of human resources.
Sixth, policies measures for the development of science and technology.
In this day and age, it has been learned that not only countries that
occupy more land and money are developed countries, but science and
technology will determine the position and hierarchy of development family.
2.4.3.5. Gradually organizing and implementing the social justice
parallelize with the growth results of the economy
Establishment of salary payment and income redistribution mechanism to
achieve social justice.
The salary policy is an important part of the socio-economic policy
system, which not only directly impact the lives of the workers, but also affects


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the production and business activities and work efficiency, economic growth
and political and social stability. In addition to wages, employees' incomes can
be increased or decreased through redistribution. In Lao PDR, the more
important redistribution of income is to limit the excess of income in order not

to lead to a widening gap between the rich and the poor. Redistribution of
income is done in the form of taxes and voluntary contributions from highincome individuals to social welfare and charity funds.
Social policies such as welfare, health care and human health are also a
key area of social justice. This sector has a great deal of content and satisfactory
resolution to a certain extent, often directly reflecting the nature of the political
system, the basis of social stability.

development, transportation, information and communication, especially the
dynamics of the people, are the advantages to deploy. Link plans. They are
easier to chart economic growth plans, structural change.

Democratic governance reforms development of environmental
protection, culture, especially in the environment and natural resources.

2.4.5.4. Impact from political regime
Political regime has an important influence on linking economic growth
with the implementation of social justice. For the group of developing countries,
the government cannot overlook of social security and social justice issues in
the process of developing the country, including economic growth. Political
parties, when campaigning, must uphold both economic and social dimensions,
economic growth and social justice, if not willing to accept failures.

2.4.4. Criteria for assessing the link between economic growth and
social justice
The goal of linking economic growth with social justice is to move
towards a sustainable development of the nation. Therefore, the criteria for
assessing the link between economic growth and social equity must be
considered in comparison with the harmonious development of economic
development with social development and ecological environment. There are
certain elements to create people’s life better as following:

- Sustainable economic growth:
- Society for sustainable development.
- The human environment is protected and renewed with increasing
quality.
- The consistency between the policy of economic growth and social
policy.
2.4.5. Factors that influence the link between economic growth and
social justice
2.4.5.1. Natural condition
Natural conditions affect the process of linking economic growth with the
implementation of social justice through business production. Simultaneously,
the impact of weather, climate, and hydrology also create difficulties. Towel,
the corresponding advantage in all historical periods.
2.4.5.2. The level of economic development of the country.
All aspects of national development are the starting point for all strategies
of sustainable development in general and for linking economic growth with
poverty reduction in particular. In countries that have undergone a period of
major mechanical engineering, as a result of the need for long-term market

2.4.5.3. Historical, social and human factors
Historical, social and humanitarian factors are the basis for setting
concrete goals and methods for implementing specific steps of linking economic
growth with social justice. They create a set of cultural and spiritual values that
are very valuable to the social life in general, and spontaneously formulate
traditional behaviors when dealing with specific tasks of development. A
civilized society is just and equitable in every nation.

2.4.5.5. International context
Looking at the whole picture, the international context can create
advantages or disadvantages for linking economic growth with social justice.

The United Nations is constantly concerned and warns governments to take care
of social issues. International financial institutions provide significant and
regular financial resources for poverty alleviation programs and programs,
community development, capacity building in governance, democratic
development and many other issues. Other issues also have implications for
linking economic growth with social justice.
2.5. Experience linking economic growth with the social justice of
some countries in the world
The dissertation examines the experience of linking economic growth
with the social justice of several countries such as; Germany, the Republic of
Cuba and the Socialist Republic of Vietnam, and has drawn the following
lessons for reference of Lao People's Democratic Republic:
Firstly, to perfection the model of socio-economic development. The
model sets out national strategies and plans that link economic growth with
social justice.
Secondly, achieving the market economy in the direction of creating
unity of perception and action.
Third, development and implementation of economic development policy
with social policy.


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Fourth, interested in developing distribution policies to ensure the
interests of the State, workers and enterprises.
Fifth, extending welfare policy, forming a multi-tier social security policy
system.

prosperous country, fair and civilized society; human being at the center of
sustainable development; more and more satisfy the material and spiritual needs
of people of all stratetgiesThe basic issues that should be prioritized for the
development of Lao PDR now and in the coming years are:
Firstly, to build and perfect the state of the people and of the laborers;
Secondly, to promote international integration, to associate the building
of an independent economy with deep integration into the international
economy, to develop a market economy;
Third, maintain and stabilize politics;
Fourth, take a leapfrog, develop new science and technology;
Fifth, to renovate and improve the efficiency of investment, the
diversification of capital sources and forms of investment; create a special
mechanism to attract foreign investment;
Sixth, focus on improving the quality of education, training and human
resources development;
Seventh, ensure security and defense, firmly defend the independence,
national sovereignty and territorial integrity.

Chapter 3
SITUATION OF ECONOMIC GROWTH GROWTH TO IMPLEMENT
SOCIAL WELFARE IN LAO PDR
3.1. Overview of socio-economic conditions in Lao PDR impact on
linking economic growth with the implementation of social justice
Laos is a country in Southeast Asia, with a natural area of 236,800 km2. In
general terms, conditions in Laos are more difficult to develop in an economy. The
delta accounts for only 20% of the country's natural area, while Laos is an
agricultural country, accounting for 75% of the nation's labor force. The
mountainous area of Laos occupies 50% of the natural area. Especially, the hills
and mountains in Laos are strongly divided, especially in upper Laos. This
feature is a great challenge for the construction and development of technical

facilities of the transport sector. But the hills and mountains of Laos have very
important advantages such as timber and forest resources, mineral resources and
tourism.
Laos has paid attention on solving the energy problem for economic
development, it must rely on hydropower potential is main. The Mekong River
stretches over 1835 km long in Laos, with high altitude differences creating
many cascades and large areas that can be used to build large reservoirs.
One of the biggest limitations on the natural conditions of Laos is the lack
of seas. However, this limitation has been overcome by the highway linking the
capital Vientiane to Vietnam.
3.2. The state of the measures has been applied to link economic
growth with the implementation of social justice
3.2.1. Situation of developing strategies to link economic growth with
social justice.
The theory of sustainable development was received by the Lao PDR in
the late twentieth century. Recognizing the shortcomings, deficiencies, and
serious deficiencies of previous growth strategies, the Lao PDR and Lao PDR
strongly responded strongly to the ideas and programs of sustainable
development of the Union Country. Sustainable development has become one of
the main ideas in the development of Lao PDR's socio-economic development
strategy.
The 7th National Congress of the Lao People's Democratic Republic (Lao
PDR) in 2001 set up a 10-year socio-economic development strategy with a
view to developing the country comprehensively with the focus on building a

3.2.2. The status of roadmap, the steps to link economic growth with
the implementation of social justice
Period 2006 - 2010
The Sixth Five-Year Plan (2006-2010), adopted at the Eighth National
Congress of the Lao PDR's Lao People's Democratic Republic, sets out specific

objectives, many of which directly address the indicators combine economic
growth with solving social justice issues.
1- Annual economic growth is 7.5-8%.
2- Ensuring the balance in economic development, social development
and environmental protection;
3- Ensure the maintenance of existing infrastructure;
4- Strongly developing the external economy;
5- Improve the financial sector, manage bad debt, reform monetary
policy;
6- To study effective measures to develop comprehensively in such fields
as education and compulsory primary education;
7- Enhancing the quality of public administration;
The 2011-2015 period
The Ninth National Congress of the Lao People's Democratic Republic,
held in March 2011, affirmed the determination to strengthen united solidarity
among the Party and people; Strengthening and upholding the leadership and
leadership capacity of the Party, making a strong step in organizing the
implementation of the Party-led renewal process; bring the country out of
underdevelopment by 2020; creating a premise for the country to advance
socialism.


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Bringing into play the achievements and experiences gained during the
implementation of the 2006-2010 socio-economic development plan, the
national socio-economic development plan for 2011-2015 includes two major
strategies :

1. Development plan to build and develop the country to escape from
underdevelopment. To achieve this goal, it is necessary to focus on the
development of economic sectors in order to have both high and sustainable
development rates, develop human resources, reduce unsettled issues and
economic imbalances.
2. Development plans for the development of priority sectors such as:
agro-forestry-fishery; A number of major industries and industries are essential
for the industrialization and modernization and economic development of the
country; Development zone planning includes: industrial sector; Special
Economic Zone - Private - Border; The center of the economy, with the
construction of Vientiane as the political, economic, cultural and social center
of the country, an international service center and international tourism
destinations. The To build transport infrastructure linking domestic and regional
areas; Building social infrastructure with education networks in all villages, all
districts and all provinces in the country; To build a modern regional hospital in
Vientiane and medium-sized hospitals in the North, Central and South;
Protecting national forests and afforestation so that forest cover covers 65% of
the national area; To fulfill international obligations and create competitiveness
in the region and in the world; Develop measures to cope with the effects of
nature.

In terms of economic institutions, Laos’s advocates not holding a power
agency dedicated to linking economic growth with social justice. But the reality
is that leadership, linking economic growth with social justice is a routine work
that is gaining profound interest in all sectors.

3.2.3. The state of the relationship between the state and the market
in building institutions link economic growth with the implementation of
social justice.
Laos' economic development strategy determines the use of market

relations to liberate its production forces, creating a production relationship that
is consistent with the productive forces. In fact, after more than 30 years of
transition to a market economy, all kinds of markets have been synchronously
formed and linked better and better with the world market. Types of enterprises
based on different forms of ownership (a fundamental condition for the
existence of a market economy) are encouraged to develop, direct
administrative interventions, and the State to enterprises be removed;
In that spirit, the Ninth Congress of the Lao People's Democratic
Republic (2011) highly appreciated the need to perfect the market economy
institution, creating a solid premise for the successful construction and
synchronous operation. a market oriented economy in Lao PDR; contributing to
the mobilization and allocation and use of all resources to promote the socioeconomic development of fast and sustainable.

3.2.4. Current status of policies and measures to promote economic
growth to achieve social justice
Measures to promote economic growth towards the achievement of social
justice are implemented through:
- Policies and measures to encourage investment;
- Policies and measures to develop the industry
- Financial and monetary policies and measures to raise capital for
investment, promote growth;
- Policies and measures for development of infrastructure
- The policy and situation of education and training development in order
to raise the quality of human resources
- Policies and measures to develop science and technology
3.2.5. The status of policies and measures to achieve social justice in
line with the economic growth;
For this content, the thesis focused on salary payment and income
redistribution. In general, the average salary of workers in Lao PDR is not high:
about 119 USD / person (Vietnam is 181 USD / person, Cambodia is 121 USD /

person and Indonesia is 174 USD / person). However, no difference in living
standard between the lowest wage earner and the highest wage earner. According
to the current wage index of 6,700 Kip Lao, the lowest wage earner in the lowest
quota of 904,500 Kip Lao, the highest wage earner in the highest quintile (head of
state) is 4,690 .000 Kip Lao, which is 5.18 times higher than the lowest wage
earners. Compared to the salary level of the head of state with the starting salary of
graduate graduates is 1.514.200 Kip Lao, the head of state salary is 3.1 times
higher.
In addition, the thesis also analyzes the contents related to the mechanism
of income redistribution, through taxes and fees; Poverty alleviation programs;
activities of welfare and social relief; status of insurance performance; Issues
such as reforming administrative procedures, promoting democracy, public
health care, building cultural life ... to serve the assessment of the results of
linking economic growth with implementation social balance.
3.3. Evaluation of the results of linking economic growth with social
justice in Lao PDR according to criteria
- Criteria for economic growth
In the five-year period from 2011 to 2015, the size of the Lao economy
grew steadily, reflecting the country's GDP and per capita GDP, both in terms


17

18

of size and pace. The growth rate is quite stable at 8-9% per year and there are
no big fluctuations.
Table: GDP growth and GDP per capita between 2010 and 2015
Unit
2010

2011
2012
2013
2014
2015

the priority beneficiaries of the regime, with the objective that their living
standards must be equal to or more than average living of the people.
However, in addition to the successes achieved, the right to social justice
in Lao PDR is not straightforward: it is reflected in the following figures:
Chart: Gini coefficient of Laos in comparison with some countries
Asia-Pacific
region
1990
–
2012

Million

GDP

USD

Rate increase

%

7.128

8.261

10.191

11.942

13.238

14.390

8,5

8,0

8,0

8,5

7,5

7,4

60

GDP / person
(current

50
40

USD

1.141

1.304

1.588

1.838

2.017

2.159

30

prices)

20

Source: Vietnam Statistical Yearbook - General Statistics Office
Lao PDR's Icor compared to other countries in Southeast Asia may be
considered as the lowest:

10
0
Trung Quốc

Ấn Độ

indonesia

Lào

Iran

Kyrgyzstan

H s năm1990

Bảng: Icor của một số nước trong khu vực

Source: />- Criteria for the implementation of social justice
In the current context, the Lao Party and State prioritize the direct support
to vulnerable groups, poor and facing many difficulties in production and
livelihood.
First of all, promoting and eliminating poverty. The poverty reduction
plan is concentrated in 47 poor districts out of 141 districts in the country.
Policy Banks and Rural Development Funds have prioritized credit, health care
and educational development for these 47 districts. Specifically: Health: 46 out
of 47 poor districts have district hospitals; Education: 70% of the education
budget of this area is for primary and secondary education and 20% for tertiary
education and 65% for literacy. Policy beneficiaries, people and families with
meritorious services, families of martyrs, wounded soldiers and war veterans are

Malaysia

Pakistan

Nga

Thái Lan

H s năm 2012

NOTE: The left hand column is the GINI coefficient of 1990; The right-hand
column is the 2012 GINI.
Source: />It can be seen from 1990 to 2012 that inequality, expressed in the rich and
poor gap of Laos not only decreased but also increased, while some countries
have narrowed quite well as Kyrgyzstan, Pakistan , Russia and Thailand.
This also explains why the HDI of Lao PDR throughout the period from
2005 to 2016 has hardly improved, as shown in the figures below:
Table: HDI of Lao PDR
Năm

2010

2011

2012

2013

2014

2015

2016

HDI

0,542

0,554

0,563

0,573

0,582

0,586

0,569

Source : />- Criteria on protection of natural resources and environment
Lao PDR has ensured environmental sustainability, especially through
protection of forests, land, water resources, ecosystems and mineral resources
through systematic planning and surveying is important for achieving the
Millennium Development Goals.


19

20

By 2015, forest cover will reach 65% of the total land area. As such, Laos
is also contributing to combating global warming and climate change; to protect
the mineral resources in a green, clean and beautiful manner while reducing the
greenhouse gas effect, protecting the abundance of soil, water and air to serve
the population and protect the development of natural resources. The

environment of Water is getting better.
- Criteria for consistency between economic development policy and
social policy
In recent years, in Lao PDR the economy has grown rapidly, the cultural
and social fields have gained important achievements in many aspects. Through
the congresses, the Lao People's Democratic Party has proposed a
comprehensive development policy in all economic, cultural and social fields.
The author's personal survey results show positive comments on the
impact of policies on linking economic growth with social justice in Lao PDR.

- Fifth, the direction and administration are limited;
- Sixth, the level of satisfaction of rural people with regard to
infrastructure facilities built under priority programs for 47 poor districts is not
high;
The cause of the limitations:
- Due to the lack of initiative and disciplines of the public services, the
coordination of ministries and branches is not sufficient.
- Limited from the quality of human resources.
- Economic growth in Lao PDR is heavily dependent on foreign capital.

3.4. A general assessment of the link between economic growth and social
equity in Lao PDR
3.4.1. Advantages
- A strategy for linking economic growth with implementation in social
justice has been developed, focusing on key issues;
- The roadmap and steps to link economic growth with the
implementation of social justice in a relatively rational manner have been
developed;
- Know how to apply the relationship between the state and the market in
building institutions linking economic growth with social justice;

- A system of policies to promote economic growth towards the
realization of social justice has been promulgated;
- The work of organizing the implementation of social equality in
accordance with the results of the head is fairly synchronous, in many fields;
With all these efforts, the number and quality of growth in Lao PDR in the last
ten years has changed significantly. All sectors of the economy have growth,
but the growth rate of agriculture and services has increased more rapidly,
making the structure of the economy shifted towards a more marked
industrialization; Social equality has been improved in a better way: the poverty
rate has fallen, the social safety net has been increasingly covered with difficult
areas and people's rights have been increasingly promoted.
3.4.2. Limitations and causes of limitations
- First, the structure of investment capital is not reasonable;
- Second, infrastructure is still weak and low production efficiency;
- Third, the functions, duties and powers of state management of
provincial authorities are unclear;
- Fourth, GDP growth is high but not sustainable;

Chapter 4
OBSERVATIONS AND CONTINUOUS SOLUTIONS ECONOMIC
GROWTH WITH IMPLEMENTATION OF SOCIAL WELFARE IN
LAO PDR
4.1. International and domestic contexts are linked to economic
growth and social justice in Lao PDR.
4.1.1. International context
Lao PDR is in the early stages of the transition to a market economy in
the context of international changes that are profound and profound.
Specifically:
- The revolution in science and technology, the knowledge economy and
the process of globalization have strongly influenced the development of many

countries, especially developing countries, including ASEAN.
- Peace, national independence, democracy, cooperation and development
are major trends; national struggles, class struggle, local wars, armed conflicts,
ethnic, religious, arms race, interference, subversion, terrorism, territorial
disputes, the sea, islands, resources and fierce competition for economic
benefits continue to be complicated.
- Developing countries are reforming at different levels, with each
country's socio-economic transformation integrated into the world's reform and
reform. The reform trend in this area is primarily aimed at opening up the
economy to outsiders.
- All human beings are right in front of the urgent issues related to human
destiny. These are: (1) ecological environment pollution; (2) international credit
system related to all countries; The world economy is threatened to push to the
abyss of financial crises. (3) The issue of international trade has also become
increasingly acute as countries, including developing countries, increasingly
promote exports to the world market. (4) Other issues such as population, food,
ocean exploitation ... are increasingly set and recognized as urgent.
Thus, the unification of the economy or the trend of internationalization of
the developed economy on the basis of expanding the mutually beneficial
cooperation between countries. This is a new direction of international economic
relations.


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4.1.2. Socio-economic development strategy of Lao PDR up to 2020
and vision to 2030
The national socio-economic development strategy up to 2020 includes
two major strategies:
(1) Development strategy to build and develop the country out of

underdevelopment.
(2) Development strategies to develop priority sectors such as: Develop
and maintain agro-forestry to ensure food and feedstock for other industries; To
firmly develop a number of major industries and industries, which are essential
for the industrialization and modernization and development of the national
economy;
With a view to 2030, the X Congress document sets a target that by 2030
Laos will achieve a new development, becoming a high middle income country
in the direction of having a smart, green economy. and sustainable, with a per
capita income of four times the level achieved in 2015.
Thus, in the mindset of leadership, the Lao Party and State always affirms
the close relationship between economic growth and social justice. Any one
goal is clearly a result of the link between economic growth and social justice.
4.2. The point of linking economic growth towards the realization of social
justice in Lao PDR
- First, economic growth is a material condition that ensures social
progress and equality;
- Secondly, social equality is driving the force for high and stable
economic growth.
- Third, economic growth must be done simultaneously with social justice
in each step.
- Fourthly, it is important to insist that all plans, programs, projects and
adjustments in the economic sphere must contribute to economic growth and
social justice.
- Fifth, study the world's experience on the basis of practical conditions
of Lao PDR, no mold, machinery
- Sixth, the solutions must be synchronous, systematic, organic
relationship with each other, avoid the case of implementation of this solution,
causing adverse effects on other solutions.
4.3. A number of key measures are to continue linking economic

growth with social justice in Lao PDR
4.3.1. Improve the quality of building strategies that link economic
growth with social justice
- Political stability to link economic growth with social justice.

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- Cannot wait for economic development to implement social justice.
- In order to achieve good social justice, it is necessary to ensure equality
in the distribution of productive assets and fairness of conditions and
opportunities.
- Economic growth must go hand in hand with cultural and educational
development, development and socialization. It means linking growth with the
realization of social justice for social development, for the purpose of making
social relations healthy.
- Rational link between economic goals and new social objectives create
sustainable development. On that basis, sustainable social justice can be
realized.
- Linking rights and obligations, dedication and enjoyment to create
stronger motivation for socio-economic development.
- Linking economic growth with effective social equality must also be
linked to ensure social security in each step and each development policy.
4.3.2. Developing a roadmap and steps to link economic growth with
social justice
Based on the five-year plan 2016-2020 with vision to 2030 adopted at the
10th Congress of the Lao People's Democratic Republic, the author thinks that
the issues related to the roadmap and the steps to link economic growth with
Social equality should be clearly defined, with the sequence from general
framework, synthesis, to specific indicators.
Roadmap, steps for each stage:

- At the end of the 5-year plan 2016-2020, Lao PDR must establish an
agro-forestry economic structure in association with industry and services, of
which agriculture is a food security, protection and development, it is important
that industry and services are key to boosting economic growth. Specific targets
for this phase:
- The 2020-2030 period aims to become a high-middle income country
with a smart, green and sustainable economy with a per capita income of four
times the level achieved in 2015. Therefore, the overall task for this phase
includes:
+ Building Laos' industry to become a pillar of the national economy,
with strong economic infrastructure;
+ Building a peaceful, democratic, civilized and equitable society;
+ Strengthening national scientific and technological potentials;
+ Economic growth must go hand in hand with environmental protection;
4.3.3. Enhance the leadership role of the Lao PDR Lao Party in
applying the relationship between the state and the market to build an
institution that links economic growth with social justice.


23

24

The Lao People's Democratic Republic (Lao PDR) and the Lao People's
Democratic Republic (Lao PDR) are market economies operating under the
state-controlled market economy. Laos PDR should lead the Lao government to
manage and regulate the macro economy, creating a healthy competitive
environment, equality and openness, and a favorable business environment for
all types of enterprises. The effectiveness of the market mechanism, the state
intervention in the market economy must comply with market principles,

respect the market rules.

4.3.4.3. Enhance the role of the stock market and the banking system
in mobilizing capital for investment and development of industries
At present, the Lao stock market is in the early stages of development.
Therefore, the market management agencies of Laos should pay attention to the
market development orientation for the next period, meeting the international
standards, transparency in the issue of information disclosure.
It is easier for small and medium enterprises, business households and the
poor to access their capital.

4.3.4. To perfect policies and measures to promote economic growth
in order to achieve social justice
4.3.4.1. Improve investment policies and promote investment activities
Investment policies and investment promotion should focus on:
developing a coordinated mechanism among ministries, sectors and localities to
select and propose investment priority areas and areas. inviting and promoting
investment; Early economic planning in a transparent and transparent way to
make it easier for investors to make investment choices; To upgrade the
infrastructure to encourage enterprises to invest in new scales, new investment
and application of science and technology to increase the value of products.

4.3.4.4. Improve policies and organization, develop infrastructure To
develop infrastructure, the Lao government should pay attention to
building the industry.
Energy and modernization of technical facilities such as roads, railways,
airports... definitely have to go one step ahead.

4.3.4.2. To perfect policies and measures for development of branches
- Industry: To concentrate on developing the processing industries with

the strength to produce goods for domestic consumption and export; To focus
on the development of hydropower and other energy to meet the requirements
of production and social service and become a source of electricity supply for
ASEAN countries;
- Agriculture, forestry and fishery: Priority is given to agricultural
development, with emphasis on agricultural product processing; Forest protection
and development; the proper development of the forest economy is one of the
most effective fronts of economic growth associated with the implementation of
social justice, along with the development of tourism that will be presented
below.
- Trade, service and tourism sectors: Diversify sub-sectors in the service
sector, creating demand and meeting the demand for industrial and agricultural
production; to renovate the mode of operation of services such as tourism,
healthcare, education, retail trade, finance and banking, post and
telecommunication, transport...
In the process of development, depending on the stage and the change of
reality, there will be changes in the order of priority for development investment
among sectors in the national economy. The adjustment and its results will
depend on the ability of the State.

4.3.4.5. To perfect policies and measures to develop education and
training to improve the quality of human resources
Transition of the educational orientation from the tradition of academic
knowledge to the pursuit of practicality; To develop education in remote and
ethnic minority areas: To raise the efficiency of vocational training for labor
forces in the agricultural sector.
4.3.4.6. To perfect policies and measures for scientific and
technological development, creating motivation for economic growth
Promote the revolution of science and technology, seize the opportunities
of the industrial revolution 4.0 develop the knowledge economy and apply

immediately to industrialization and modernization of economic sectors. The
combination of industrialization and modernization, coupled with the
development of the knowledge economy, is both an opportunity and a
requirement in linking economic growth with the realization of social justice in
Lao PDR.
4.3.5. To perfect the organization and implementation of social
justice in line with the growth results of the economy
For this group of solutions, the thesis first deals with improving the wage
payment and income redistribution mechanism to achieve social justice.
The basic principle of the wage policy is that wages must be paid in proportion
to the value of the labor force employed by civil servants. Publicize the salary
reform schedule and the socio-economic bases of that schedule.
Improve the income redistribution mechanism, including redistribution of
income through taxes and fees; Poverty alleviation programs; Promote welfare
and social relief; Develop insurance network; Care for the lives of the policy
beneficiaries;


25

In addition, solutions such as reform of administrative procedures,
promotion of democracy; Developing a network of health care and community
health services; Cultural development; Environmental Protection; Labor market
development, job creation and unemployment reduction are also considered by
the thesis as solutions that contribute to equality between people and businesses
in accessing service, social services, thereby improving the social position as
well as their income.
In conclusion
The development of linking economic growth with the implementation of social
justice in the Lao PDR in the coming years, although many difficulties, but

more and more favorable. After more than 30 years of restoration, the country
has been changing day by day, people's life has improved remarkably than
before the restoration. Highly intellectuals are very basic for the cause of
promoting democracy. The Party and Government have had many valuable
lessons to do better. On the other hand, the country and the regime are facing
decisive choices: Development, shoulder-to-shoulder, or lag, so greater resolve.
We believe that the cause of linking economic growth with the settlement of
social justice will be more and more rhythmic and effective, contributing
positively to the development of Laos.