Agriculture, forestry, and fishing
Agriculture is the mainstay of the economy of Laos. In the early 21st century the sector generated nearly half the country’s gross domestic product (GDP) and employed some three-fourths of the population. The expansion of land under cultivation has been impeded, however, largely by the vast quantities of unexploded bombs—dropped mostly by the U.S. military during the Vietnam War—that litter potential farmlands. Consequently, only a small portion of the country’s total arable land area is cultivated. The great majority of Laos’s farmers are engaged in rice agriculture. Lowland farmers generally plant irrigated paddy fields, while upland dwellers cultivate rain-fed swiddens. Frequent floods and droughts cause significant year-to-year fluctuation in agricultural yields. Although such weather calamities affect the lowlands more severely, those regions have been more productive than the uplands, owing largely to accessibility of new technologies, pesticides, fertilizers, more solid infrastructure, and market networks. Many farmers in the uplands practice subsistence agriculture; however, a shift toward market-based production has been gaining momentum, propelled primarily by government modernization initiatives. In years with “normal” harvests, Laos is self-sufficient in rice production.
Principal crops other than rice include sweet potatoes, sugarcane, corn (maize), assorted vegetables and fruits in smaller quantities, and tobacco. Coffee is cultivated mainly on the Bolovens Plateau and is the only crop produced for export in substantial volume. Opium production began decreasing dramatically in the late 20th century as a result of aggressive eradication programs implemented by the government. Although opium poppies are still grown in some hill areas, poppy cultivation for export is illegal.
Roughly two-fifths of Laos is forested, and the country’s forest resources have provided for several important wood-processing industries. Timber extraction, however, has been banned periodically by the government for environmental reasons. Rapid deforestation has been attributed primarily to logging operations and to the cutting of wood for fuel—activities that have been further blamed for the erosion of hillsides, the silting of rivers, and, ultimately, the increased severity of droughts and floods. The government has also viewed swidden farming in the uplands as a major contributor to deforestation and has adopted measures to encourage conversion to sedentary agricultural practices.
Fishing is particularly important for lowland dwellers, and aquaculture has been increasing in the early 21st century. Principal pond-raised fish include tilapia and various types of carp. Raising of livestock—especially pigs, cattle, water buffalo, and chickens—has also been growing in significance.