Road accidents taking a toll on the economy
Road accidents taking a toll on the economy
Road accidents are not only one of the main killers in Laos but are also causing huge economic losses, a senior economist has noted.
Police reported recently that 1,086 people were killed in 5,616 road accidents around the country in 2016, with the damage bill amounting to 83 billion kip.
Road accidents also injured another 8,912 people and damaged 10,305 vehicles and state property.
A senior economist at the National Economic Research Institute, Dr Leeber Leebouapao, told Vientiane Times on Wednesday that road accidents are having a great impact on the country.
I think that economic losses from road accidents could amount to .08 or 1 percent of Gross Domestic Product (GDP), which last year saw a growth rate of 6.9 percent, he said.
It's true that our economy is growing constantly but that figure fails to include losses to the economy from road accidents.
I think road accidents should be placed at the top of the national agenda with all sectors devising programmes and activities to minimise the problem, Dr Leeber said.
Road accidents in Laos kill more people and cause more damage than a major earthquake that struck Pakistan and Afghanistan in October last year.
The earthquake killed over 200 people, injuring hundreds and sending shockwaves as far as New Delhi.
Dr Leeber said the number of fatalities caused by road accidents in Laos was higher than the death toll reported in some countries where wars or political conflicts were ongoing.
In 2015, a total of 5,571 road accidents were reported in Laos, in which 995 people were killed and property damage amounted to over 85 billion kip.
The situation is likely to deteriorate further unless urgent measures are taken to improve road safety. Every accident entails an economic cost, not to mention the social burden placed on the families of the victims.
The costs arising from an accident can include victim-related costs, property damage, and other expenses. Accidents also have an adverse impact on the country's human resources, particularly when essential members of the workforce are involved.
Police say it takes quite a long time to deal with the aftermath of an accident, with such incidents inflicting an added burden on impoverished families.
Rapid economic development, rising vehicle ownership and the growing demand for transport have resulted in a substantial increase in road accidents with associated loss of life and property damage.
Accidents impose health costs, diminish human resources and can harm the reputation of a country when it comes to tourism and investment.
Road accidents make us waste time and money, Dr Leeber said. Unfortunately awareness of the law is low and law enforcement sectors aren't serious about fining or taking legal action against those who violate the traffic rules.
