Thursday, September 3, 2015

Laos from a diplomatic perspective.

Philip Malone, the outgoing British Ambassador gave a wonderful insight into life here from a diplomatic perspective. He was the first British Ambassador after the Embassy closed many decades previously and this gave him a unique perspective into diplomatic life here.

These are his notes from the evening.



HMA PRESENTATION TO RSA MEETING, 21 MAY 2015: LAOS FROM A DIPLOMATIC PERSPECTIVE

Good evening everyone. A pleasure to be here. My thanks to the RSA Fellows in Laos for giving me this opportunity.
Would like to give some personal reflections both on my time here as Ambassador and on Laos as a country. I see this as an “in conversation” style event so please bear in mind I am not making public statements of policy just a view based on my experiences.
Like all stories, I’ll have a beginning, a middle bit and an end and will weave some themes through each of these as I go along. Happy of course to continue the conversation at the end.

Beginnings:
My arrival, personal story (Helsinki to Vientiane in four months), Foreign Secretary’s speech on UK in Asia in April 2012 and announcement of the re-opening of the British Embassy in Vientiane.
Where things were then.
UK priorities, Asia Europe Meeting, Foreign Secretary visit.
Embassy estate, history of relations.
Practical set-up, developing our engagement, areas of focus.
Challenges, pleasant surprises, public diplomacy.

Middles:
Laos internal politics: Party Congress, shifting of leadership, transition, 1995 compared to now.
Economy: impressive growth but challenges of sustainability, lack of diversification, non-inclusive growth, fiscal issues, capacity/skills.
Low score in global rankings.
Pillars of economic growth: hydro-power, organic agriculture, services especially tourism.
Infrastructure/connectivity, economic corridors, land-locked to land-linked.
IMF: high growth concerns: pressure on balance of payments and reserves, slowdown in mining and govt spending, energy prospects good – Hongsa on stream and hydro, concerns over longer-term impact of fiscal shortages and non-concessionary debt, credit growth concerns and non-performing loans but getting better, more flexibility needed in exchange rate (though cross-border informal trading has a stabilising effect)
WTO/AEC readiness.
International: Laos in the region, ASEAN, China influence: $5m investment in 2005, $5 billion now.
Engagement by others.
UK co-operation, British business interests, business environment, policy dialogue, education, Chevening/universities, people/people, co-operation in anti-money laundering, climate change, ASEAN , child protection, human rights, UXO clearance, Lao Embassy London, bilateral visits.
Ends:
Laos in future (prosperity, security/regional dynamics, English, development).
Leadership, young people (demographic dividend).
Prospects for change.
ASEAN 2016
LDC graduation (GDP per capita almost met, but Human Asset Index and Economic Vulnerability Index not met due to off-track MDGs in health and education, high proportion of agriculture in GDP, narrow and vulnerable export base, remoteness/connectivity, UXO).
5 year planning
Middle Income Country status and vision 2030
UK/Lao relations and UK in Asia.

It was delightful to have this opportunity to hear Philip speak and we all wish him well as he moves onwards to his new role.