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veloped countries; the Lao People's Armed Forces are small, poorly funded, and ineffectively resourced; there is little political will to allocate sparse funding to the military, and the armed forces' gradual degradation is likely to continue; the massive drug production and trafficking industry centered in the Golden Triangle makes Laos an important narcotics transit country, and armed Wa and Chinese smugglers are active on the Lao-Burma border (2005) Transnational Issues Laos Disputes - international: Southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Thailand but disputes remain over islands in the Mekong River; concern among Mekong Commission members that China's construction of dams on the Mekong River will affect water levels Trafficking in persons: current situation: Laos is a source country for men and women trafficked for the purposes of forced labor and sexual exploitation; a significant number are economic migrants who are subjected to commercial sexual exploitation or conditions of forced or bonded labor in Thailand; to a lesser extent, Laos is a transit and destination country for women who are trafficked for sexual exploitation including a small number of victims from China and Vietnam trafficked to work as street vendors and for sexual exploitation in prostitution tier rating: Tier 3 - Laos does not fully comply with the minimum standards for the elimination of trafficking and is not making significant efforts to do so Illicit drugs: estimated cultivation in 2004 - 10,000 hectares, a 45% decrease from 2003; estimated potential production in 2004 - 49 metric tons, a significant decrease from 200 metric tons in 2003 (2005) This page was last updated on 8 February, 2007 ====================================================================== @Latvia Introduction Latvia Background: After a brief period of independence between the two World Wars, Latvia was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. It reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Latvia joined both NATO and the EU in the spr
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