Road accidents hurting Lao economy: expert
Road accidents hurting Lao economy: expert
A senior Lao economist has warned road accidents will bring even greater losses to the Lao economy unless more is done to ensure road safety in the country.
National Economic Research Institute Senior Economist, Dr Leeber Leebouapao, told Vientiane Times yesterday road accidents not only claimed hundreds of lives each year and left even more injured, but they also brought enormous losses to the nation's economy.
According to a police report released on Monday, Laos recorded 6,044 road accidents in the 2012-13 fiscal year, killing 873 people and causing 10,374 injuries.
The value of damaged vehicles rose from 61.8 billion kip in the 2011-12 fiscal year to 66.99 billion kip last fiscal year.
Every accident entails an economic cost, not to mention the social burden placed on families of the victims. Accidents also have an adverse impact on national human resources, particularly when essential members of the workforce are involved.
Costs from an accident can be divided into victim-related costs, property damage and other expenses.
Dr Leeber said accidents also affected the livelihoods of impoverished families, particularly if the victim was the household breadwinner.
He said an accident could cause a well-off family to slip into poverty, leading to a loss of human resources that could have contributed to boosting economic growth and helping national development.
“Road accidents make us waste time and money,” Dr Leeber said.
Almost 3,000 students were involved in accidents last year, as were large numbers of government officials.
Over the past 22 years almost 10,000 people have died on Lao roads, according to a recent government report.
Despite continuous road safety campaigns, accidents have continued to rise and are considered the main cause of death in Laos since national liberation in 1975.
The report found on average, fatalities rise 6.8 percent annually, while the number of road accidents has increased by 4.5 percent each year, reflecting the growing severity of the issue.
Police say the main causes of road accidents are drink driving, failure to comply with traffic regulations and speeding. On average, 80 percent of road accidents involve people aged 15 to 44.
Accidents can also have a detrimental effect on the tourism industry as visitors will prioritise their safety on the road when visiting a country.
Dr Leeber said enforcement of traffic regulation was very weak in Laos with many people drinking and driving illegally.
“Our awareness of the law is low and law enforcement sectors aren't serious about fining or taking legal action against those violating the traffic rules,” he said.
vientiane times
