In 2003, Laos became embattled from within by anti-communist resistance forces that launched a ““revolution”” to seize state power. The government responded with force and took measures to shore up its legitimacy. Economic prospects brightened. But adverse reporting on human rights delayed a trade bill before the U.S. Congress.

In 2002, Laos emerged from a period of economic turbulence and political insecurity. The economy showed signs of recovery from the 1997––98 Asian financial crisis. But economists noted some worrying long-term trends. Foreign donors demonstrated their confidence by continuing to provide development assistance. Domestic insurgency appeared on the decline. In February, Laos conducted trouble-free national elections. The Lao government also made some positive adjustments in its treatment of Christian minority groups. Externally, Laos gave priority to reinforcing relations with its immediate neighbors, Vietnam, Thailand, and China. The Lao People's Democratic Republic (LPDR) is one of the world's least-developed countries and one of the last remaining socialist states in Asia. During 2002 the one-party regime continued to consolidate its hold on power. Domestic insurgency fell and there was no renewal of the urban bombing attacks that struck Laos in 2000––01. The Lao economy continued to recover from the aftershocks of the 1997––98 Asian financial crisis, although serious structural problems remained. No serious problems emerged in Laos's external relations. Bilateral relations with Vietnam were further strengthened.