As a landlocked country in Southeast Asia, digital Lao PDR is surrounded by rapidly growing economies like Thailand and Vietnam, presenting both inspiration and challenges for its digital aspirations.
Lao P.D.R. is classified as a lower-middle-income country with a population of 7.42 million, most of whom reside in rural areas. The country is undergoing rapid urbanisation, but it hasn’t reached the level of development seen in neighbouring countries. So, obviously, this rural-urban divide poses obstacles to the government’s efforts to digitise services and infrastructure.
This highlights the importance of inclusive digitalisation strategies that consider the needs of both urban and rural populations.
Moreover, Lao P.D.R.’s ethnically diverse population adds another layer of complexity to its digitalisation efforts. Cultural factors and linguistic diversity may influence the adoption of digital technologies and the effectiveness of digital initiatives.
How does digital Lao P.D.R rank globally in e-governance
Analysing the global ranking of Digital Lao PDR in e-governance, I think it’s essential to consider its performance in various indices. According to the UN’s e-government survey of 2022, Digital Lao shows a mixed picture.
It falls in the middle range for the Telecommunication Infrastructure Index (TII), has a high Human Capital Index (HCI), and ranks in the middle for the E-Participation Index (EPI). However, its overall E-Government Development Index (EGDI) value places it at 159th out of 193 countries assessed.
However, I would add that there have been notable improvements in e-participation, with Lao jumping from 175th place in 2020 to 132nd place in 2022. This indicates a growing engagement of citizens in digital governance processes, which is a positive sign of progress.
To address these challenges and capitalise on opportunities, Laos has taken proactive steps. The government has laid out a comprehensive roadmap for digital economic development, with strategies and plans in place up to 2040.
The government of Lao has taken important steps, including the establishment of the National Committee on Digital Transformation. Led by Prime Minister Sonexay Siphandone, this committee signifies a high-level commitment to e-governance in the country.
Main challenges of digitalisation efforts
Analysing the main challenges faced by Laos in its digital economy journey, I think it’s evident that the country lags behind in several key areas. One significant challenge is the low adoption of mobile broadband subscriptions, with less than half of the population having access. This limits connectivity and access to digital services as well.
Additionally, Laos still relies heavily on cash payments rather than digital transactions, which is a common practice in many parts of the country.
Another challenge is the continued reliance on paper-based archives in government offices (which have yet to be digitised.) This outdated approach hampers efficiency and transparency in government operations. It makes accessing and managing information more difficult. Without this transition to digital archives, government operations may be less efficient and susceptible to data loss or damage.
One other big issue is the lack of a comprehensive government strategy for digital Lao P.D.R. This has led to fragmented systems and processes across different departments, making it harder to coordinate efforts.
Lastly… I believe the legal and regulatory framework for the digital economy requires further strengthening,…particularly in areas of data protection.
After all, inadequate regulations may leave individuals and businesses vulnerable to data breaches and privacy violations, undermining trust in digital services.
Low internet penetration
With only around 60% of the population having access to the internet, connectivity remains a significant barrier in digital Lao, particularly in isolated rural areas where over 60% of the population resides.
This low internet penetration rate not only limits access to information and digital services but also hampers opportunities for economic development. Access to the Internet is increasingly essential for education, employment, healthcare, and communication.
Also, without adequate digital infrastructure and connectivity, it becomes difficult to track and regulate economic activities, impacting government revenue and oversight.
Final thoughts
Despite many challenges, I’m optimistic about the potential for improvements through targeted projects and initiatives for digital Lao.
They need to implement projects aimed at enhancing digital infrastructure and promoting digital literacy, which can play a significant role in bridging the digital divide.
By improving access to the internet, especially in rural areas, Laos can unlock various benefits.
Sources:
https://www.undp.org/sites/g/files/zskgke326/files/2023-09/nhdr_full_digital_1_1.pdf
https://laopdr.un.org/sites/default/files/2023-10/Lao_PDR-SDG_Status_Analysis2023.pdf
