Road accidents hurting the economy: expert
Road accidents hurting the economy: expert
Road accidents not only claim lives but are costly in numerous other ways, making a dent in the country's economy, analysts say.
A senior economist at the National Economic Research Institute, Dr Leeber Leebouapao, told Vientiane Times recently that needless road accidents destroyed vehicles and other property, and were also a considerable burden on hospital finances and staff.
Last year 5,571 road accidents were recorded around the country, killing 995 people. The total cost of the damage resulting from these accidents amounted to over 85.8 billion kip, according to the Traffic Police Department of the Ministry of Public Security.
By far the largest number of accidents occurred in Vientiane with 1,488 reported. These resulted in 237 fatalities while the damage bill was about 19.13 billion kip, according to the department's report.
In 2014, more than 5,700 road accidents were reported in Laos, killing 1,054 people and causing losses amounting to 72.6 billion kip.
Vientiane has a population of 850,000 people while the number of registered vehicles is about 700,000. The rising number of vehicles will mean that Laos will have to import more fuel.
Road accid ents are common and in many cases result in deaths. The main causes of accidents are drunken driving, speeding, and violation of the traffic regulations.
“Road accidents make us waste time and money,” Dr Leeber said.
He added that while the economy registered a 7.5 growth rate last year the figure failed to take into account economic losses, including those resulting from road accidents.
He said economic losses from road accidents could amount to 1-2 percent of gross domestic product (GDP) which was considered to be hu ge.
Costs arising from accidents include victim-related c osts, property damage, and other expenses. Accidents also have an adverse impact on human resources, particularly when essential members of the workforce are involved.
Some high profile people such as professors, doctors and officials have lost their lives in road accidents.
Dr Leeber said road accidents impose health costs, cause property damage, diminish human resources and can damage the country's reputation when it comes to tourism and investment.
Accidents particularly affect impoverished families, especiall y when victims are the main income earners, while an accident could also cause a well-off family to slip into poverty.
The cost of repairs and payments made by guilty parties to victims' families can also be massive, and the situation is likel y to deteriorate further unless urgent measures are taken to improve road safety.
