18 Sep, 2023

Laos: The Quiet Beauty of Southeast Asia

Laos, officially known as the Lao People’s Democratic Republic, is situated in the heart of Southeast Asia. It shares its borders with Myanmar, Cambodia, Thailand, Vietnam, and China.

Laos has an expansive territory covering 236,800 square kilometers and has a population of around 7.42 million people. It is notable for its diverse natural landscapes, including lush forests, meandering rivers, and picturesque mountains, which contribute to its reputation for scenic beauty and tranquility.

One of Laos’ distinctive features is its rich cultural diversity, with the nation embracing a total of 49 distinct ethnic groups. These groups contribute to the country’s unique culture, bringing its traditions, languages, and customs to Laotian society.

The official language of Laos is Lao, serving as a unifying means of communication among its citizens. Additionally, Buddhism holds a significant presence in the country, with a majority of the population adhering to this religion. The influence of Buddhism can be observed in various aspects of daily life, from religious practices to cultural traditions, further shaping the nation’s identity.

Apart from its cultural diversity, Laos experiences social stability and sustains a steady rate of economic growth in both industry and agriculture. The society is marked by a prevailing sense of peace and contentment, distinguishing itself as a tranquil nation within Southeast Asia.

Politics

Laos follows a socialist system, with the Lao People’s Revolutionary Party being the sole political party in the country. In 1991, the Lao Party introduced the “Five Principles” of comprehensive reform, emphasizing party leadership and maintaining a socialist direction. They also adopted an open-door policy. In 2001, the Seventh Party Congress established ambitious goals, aiming to eliminate poverty by 2010 and attain further economic development by 2020. In January 2021, the Eleventh Party Congress passed key political and economic regulations and revised the Party Charter. Currently, Laos enjoys political stability and social harmony.

Economy

① Balancing Agriculture-Heavy Economy with Modest Industry

Laos primarily relies on agriculture, with a weak industrial foundation. Starting in 1986, Laos implemented economic reforms, promoting a combination of agriculture, industry, and services while prioritizing agriculture. They shifted from centralized economic management to an operational accounting system, allowed various forms of ownership to coexist, and gradually improved market economic mechanisms.

② Economic Challenges

After 1997, Laos faced severe economic challenges due to the Asian financial crisis. The government implemented macroeconomic controls, restructured financial order, and expanded agricultural production to maintain social and economic stability. The COVID-19 pandemic also affected Laos, causing a decline in GDP growth in 2020, with a per capita income of $2,642. However, in 2021, the GDP grew by 3.5%, with a 19.8% increase in foreign trade.

③ Digital Transformation

In June 2023, Laos established the Laos Digital Technology Group with the support of the Central Bank, Ministry of Finance, and Ministry of Technology. They plan to issue the ASEAN USD, the first-ever stablecoin in the ASEAN region, anchored to a 1:1 ratio with the US dollar. This aims to boost the transition to a unified digital economy within the ASEAN community.

Culture

① Religious Traditions

Around 90% of Laos’ population adheres to Theravada Buddhism, a faith that profoundly shapes daily routines and societal customs. Throughout the nation, one can find temples and pagodas dotting the landscape, and the presence of Buddhist monks is a ubiquitous aspect of daily life.

One of the enduring traditions that has persisted for centuries is the practice of daily alms-giving, locally known as “taiba.” This ritual holds significant cultural significance and serves as a noteworthy highlight of Laotian culture. Each morning, as the sun’s first rays illuminate the landscape, devout Buddhists engage in the act of offering alms to the monks who pass through the streets. This serene and spiritual practice fosters a sense of community and reinforces the country’s deep-rooted connection to Buddhism.

② Natural Wonders and Growing Tourism

Laos is home to several UNESCO World Heritage Sites that reflect its rich cultural and historical heritage. Notable among these sites are Luang Prabang, known for its well-preserved architecture and spiritual significance, Wat Phou in Champasak, an ancient temple complex with a historical legacy, and the Plain of Jars in Xieng Khouang, famous for its enigmatic stone jars dating back centuries, which intrigue visitors.

In addition to its cultural attractions, Laos boasts a variety of natural wonders. Among them, Kuang Si Falls stands out as a waterfall with inviting turquoise pools. The Tat Kuang Si Bear Rescue Centre offers the chance to observe rescued bears while supporting conservation efforts. The Kong Lor Cave, a subterranean formation with remarkable limestone features, can be explored by boat, revealing hidden chambers.

In recent times, tourism has gained importance in Laos’ economy. Consequently, efforts have been made to improve infrastructure and streamline visa procedures to accommodate more visitors. The country’s scenic landscapes, cultural heritage, and hospitality have contributed to its growing popularity among travelers seeking authentic experiences in Southeast Asia’s less-explored regions.

③ Land of Warm Hospitality

Laotian people are celebrated for their warm and welcoming hospitality, consistently embodying the spirit of the phrase “bor pen nyang,” which translates to “no problem” or “you’re welcome.” This expression encapsulates their easygoing and affable nature, making visitors feel at home in their presence. Laos takes pride in its rich tapestry of ethnic diversity, officially recognizing 49 distinct ethnic groups and fostering an environment where various languages and cultures flourish harmoniously.

With its warm-hearted people, cultural diversity, commitment to tradition, and dedication to fostering happiness, Laos offers a unique and inviting experience for travelers seeking both a tranquil escape and an appreciation for a nation that values its heritage while embracing modernity.

19 Sep, 2023

Citi to pilot private blockchain services for institutional clients

CitiGroup has developed a permissioned blockchain for institutional customers to interact with digital assets. The new product, called Citi Token Services, intends to provide clients access to tokenized deposits, cross-border payments and automated trade finance solutions 24 hours a day.Citi’s head of global services Shahmir Khaliq said this development advances the goals of the Regulated Liability Network, a whitepaper published in November 2022 professing the desire to get the world’s financial system to a place where on-chain, 24/7 programmable, final settlement in sovereign currencies is possible. “Digital asset technologies have the potential to upgrade the regulated financial system,” Khaliq said. “The development of Citi Token Services is part of our journey to deliver real-time, always-on, next generation transaction banking services to our institutional clients.”Maersk partnered with Citi Treasury and Trade Solutions (CTTS) for Citi’s digital asset trading service, which would serve the same purpose as “bank guarantees and letters of credit” in traditional finance, according to a press release.Both companies reported that the pilot program was able to provide instantaneous payments to service providers via smart contracts, something that would be beneficial to companies with many vendors. Ensuring liquidity for premier banking clients is also emphasized in this new product launch, highlighted by the inclusion of a cash management pilot.“Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. Frictions related to cut-off times and gaps in the service window will be reduced,” CTTS global head of digital assets Ryan Rugg said in a statement. It appears that Citi has beaten JPMorgan to this, as the largest bank in the US by assets is still in the “early stages” of exploring a similar private blockchain service, according to Bloomberg. JPMorgan first showed interest in bank-issued deposit tokens, different from CBDCs or stablecoins, in February 2023.

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