Swedish aid to Laos began in 1974. Sweden was one of the first countries to provide support to Laos and remains one of the most important donor countries.
The foremost aim of Swedish development cooperation with Laos is to promote a sustainable economic growth with the capacity to reduce poverty and counteract the growing social divisions. It is also designed to develop and reinforce the conditions for democratisation and a greater respect for human rights.
Laos is among the world's least developed countries and ranks 135th out of 177 on the Human Development Report's list for 2004. A move towards a market economy began in the mid-1980s, since when Laos has seen healthy economic growth. However, economic reforms have not been matched by any corresponding political opening, and the single-party system remains.
Economically, Laos has made some progress, but this has not been matched by political change and the single-party system remains in place. There are, however, tendencies towards greater openness.
Read more about Sida's work in Laos