Lao communist party opens 7th congress .c Kyodo News Service VIENTIANE, March 12 (Kyodo) - The Lao People's Revolutionary Party opened its seventh congress Monday to map out plans for the development of the tiny land-locked country over the next five years. The three-day congress, the communist state's most important event, which convenes every five years, will also recast the party leadership in its Politburo and Central Committee. The party, which has run Laos since it overthrew the country's monarchy in 1975, said earlier it will expand the two organizations to bring new blood into the decision-making process. Observers in Vientiane see the expansion of the two bodies as a compromise with the younger generation because most of the current leaders are expected to retain their positions. Although there has been speculation that political wrangling in the party has been based on conflicting pro-China and pro-Vietnam factions, analyst Somsavat Lengsavad says it is more likely the struggle is between young and old. The most important factor for any politician is getting resources into the cash-strapped country, he said, whether that means being pro-China, pro-Vietnam or even pro-Thailand. According to one ranking member of the Central Committee, the party needs to integrate all three generations -- the old, the middle-aged and the young -- to assure unity in the country. The congress will also discuss economic policies for the next five years for the country, which is still suffering the aftereffects of the 1997 regional economic crisis. The party aims that by 2005 productivity should be improved, economic growth should exceed an annual 6% and poverty in the country should be halved. Currently 39% of the five million people in Laos are classified as poor. In the long run, the party wants to see Laos removed from the list of the world's least developed countries and achieve a threefold increase in per-capita gross domestic product, which is currently $354.40. The congress will be attended by 452 delegates representing more than 100,000 party members. Representatives from the communist parties of China, Cuba, Vietnam, North Korea, Mongolia and Russia have been invited to attend, as have representatives from two noncommunist Cambodian parties, Hun Sen's Cambodian People's Party and Prince Norodom Ranariddh's FUNCINPEC. **** Lao ruling party set to open key congress VIENTIANE - The Lao People's Revolutionary Party is kicking off its seventh party congress today with the aims of consolidating its rule and mapping out a strategy that will move the country towards industrialisation. The three-day congress is also looking to increase the numbers in its Politburo, the highest decision-making body in the regime, as well as the members of Central Committee, the policy-making body of the party, to keep up with the workload. Speaking at a press conference yesterday, Deputy Prime Minister and Foreign Minister Somsavat Lengsavad said the party was looking to take in more people from the younger generation to help tackle the economic challenges facing the country. The country, one of the world's poorest, is looking to triple its US$300 (Bt13,200) per-capita income to $900 by 2020, Somsavat said. As it stands, membership in the party is a mixed bag of "experienced old hands" and a more educated "younger generation", as well as those in between, Somsavat said. However, the 55-year-old minister said, "one should not take the 'one-sided mentality' that since this is an economic-led world the leaders should be all economists". "Look at Deng Xiaoping and how old he was when he opened up China to the world," said the party veteran, who is tipped to be included in the powerful Politburo. President Khamtay Siphandone, 77, is expected to leave the presidency but retain the party's chairmanship and become the country's most powerful figure, wielding power from behind Candidates for the presidency include Thongsing Thammavong, the No 5 leader, who supervises the party's propaganda, and Somsavat himself. Prime Minister Sisavath Keobounphanh is almost certain to lose both the premiership and much of his influence in government. Sisavath, 72, was reinstated into the Politburo at the sixth congress in 1996. Through its state-run think-tank, Laos is exploring various development models to determine which is most appropriate for the country, he said. Moreover, said Somsavat, Laos' provincial administrations will continue to enjoy more freedom to map out their development strategies while the central government will be focusing more on macroeconomic matters, Besides examining the economic benchmarks, the seventh congress will be discussing the country's role in the international community. Vientiane's special ties with Beijing and traditional ally Hanoi will remain unchanged, and the country will continue to reach out to more and more countries in Africa and elsewhere, Somsavad said. He also said Laos would be opium-free by 2005, moving the target date up by one year, and added that the government has received a much-needed commitment from the international community to see this through. Since switching from a centrally planned economy in 1986 to a market-based system, the New Economic Mechanism has fostered a steady movement towards macroeconomic stability and production growth, as well as the emergence of a small private sector. GDP growth averaging 7 per cent between 1992 and 1997 gives the land-locked country the hope that it can steadily integrate into the international community. Since the economic crisis hit the region four years ago the reform process has taken a nose dive, prompting international aid donors to step up their calls for serious structural reform. Besides pressure from the donor countries, the ruling regime is also facing political challenges within. Over the past year, scores of bombing incidents have taken place in Vientiane, which diplomats and observers here said were aimed at discrediting the regime. The five-yearly congress will be attended by 452 delegations representing more than 100,000 party members throughout the country. _________________________________________________ KOMINFORM P.O. 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