Lao PDR is a landlocked, mountainous country. It has a total area of 236,800 km2 and a population of about 4.5 million people. The country has a low population density of 17 persons per sq. km, but population is growing at 2.9% per year. About 89% of it people live in the rural areas, most of them at subsistence level.
Lao PDR is heavily dependent on its natural resource base to provide livelihoods for the bulk of its population and to earn foreign exchange. Wood products account for 35%-45% of the total export revenue, while the share of forestry of the GDP is estimated at 16%. About 80% of domestic energy consumption is wood-based. The forest also provides a host of non-timber forest products, including foodstuffs and medicines, and valuable environmental services, which indirectly support agricultural and energy production. In addition, the forests in Lao PDR contain biodiversity of great local and international importance.
Compared to other Asian countries, Lao PDR is still quite rich in forest resources. However, the relatively still abundant forest resources of Lao PDR are disappearing rapidly. In 1940 the country had about 17 million hectares of forest, covering 70% of the land area. The forest cover was estimated at 47% of the total land area in 1989 (reported in the National Forest Reconnaissance Survey). Slash-and-burn cultivation and uncontrolled logging are the main culprits for deforestation and forest degradation, which again have adverse impacts on biodiversity. About 60,000-70,000 hectares of closed-canopy forests are lost every year, while some 100,000 hectares of forest fallow are cleared annually for slash-and-burn cultivation. Road and dam construction, hunting, and illegal trade in wildlife and plants are some other main threats to biodiversity.
