Last month, Voice of America reported Laos’ Prime Minister Bouasone Bouphavanh’s comments to reporters at the ASEAN Summit that his country has “no plan to introduce a multi-party democracy, but re-affirms the Lao People’s Revolutionary Party’s ultimate goal to lead the nation towards socialism.” Is this an official repudiation of communism and a change in ideological direction? Or is the Lao People’s Democratic Republic (LPDR) replacing one “ism” for another and retaining the most important “ism”, namely—authoritarianism?

So, why at this point would the Lao government declare that it is leading towards socialism? The People’s Republic of China has felt no need to publicly disavow communism like the LPDR. I suspect it is a matter of form for the LPDR; the Lao government is re-branding itself to the softer sounding socialism moniker to avoid the more inflammatory one, so that it can continue to quietly trade with the United States and Europe. These days the Chinese and the Lao are seeing more green than red and are not the least bothered by being seen as closeted capitalists by the international community.

As China’s communist sister to the south, the LPDR is also seeing tangible benefits from open trade and investment. The Progressive Policy Institute, a policy think tank, estimated that since the United States granted Normalized Trade Relations to the LPDR in 2004, Laos imports to the United States have increased by 10 fold. According to the Policy Institute, U.S. imports from Laos jumped from $3 million in full year 2004 to $13 million in January-June of 2007. The products imported from Laos were coffee, high-quality silk, t-shirts and cotton underwear, and Lao beer. The Policy Institute estimates that Lao imports would likely hit $25-$30 million by the end of 2007.

The economic boon is not likely to make Marxist penitents out of China or Laos any time soon. We can, however, be sure that for their New Year’s resolution our socialist friends shall remain quietly committed to another “ism”—capitalism.