The only legal political party is the Lao People's Revolutionary Party (LPRP).

The head of state is President Choummaly Sayasone, who also is LPRP general secretary. The head of government is Prime Minister Thongsing Thammavong. Government policies are determined by the party through the all-powerful nine-member Politburo of the Lao People's Revolutionary Party and the 49-member Central Committee. Important government decisions are vetted by the Council of Ministers.

Laos' first, French-written and monarchical constitution was promulgated on May 11, 1947 and declared it to be an independent state within the French Union. The revised constitution of May 11, 1957, omitted reference to the French Union, though close educational, health and technical ties with the former colonial power persisted.

The 1957 document was abrogated on December 3, 1975, when a communist People's Republic was proclaimed. A new constitution was adopted in 1991 and enshrined a "leading role" for the LPRP.

The following year, elections were held for a new 85-seat National Assembly with members elected by secret ballot to five-year terms. This National Assembly, which essentially acts as a rubber stamp for the LPRP, approves all new laws, although the executive branch retains authority to issue binding decrees. The most recent elections took place in April 2006. The assembly was expanded to 99 members in 1997 and in 2006 elections had 115.

The FY 2000 central government budget plan called for revenue of $180 million and expenditures of $289 million, including capital expenditures of $202 million.

Executive branch

The president is elected by the National Assembly for a five-year term. The prime minister and the Council of Ministers are appointed by the president with the approval of the National Assembly for a five-year term.

There are also four deputy prime ministers. As of a cabinet reshuffle on June 8, 2006, they are Maj. Gen. Douangchay Phichit (also defense minister), Thongloun Sisoulith (also foreign minister), Somsavat Lengsavad and Maj. Gen. Asang Laoly.

The 28-member cabinet also includes Onechanh Thammavong as labour minister, Chaleuan Yapaoher as justice minister, Nam Vignaket as industry and commerce minister, Sitaheng Latsaphone as agriculture minister and Sommath Pholsena as transport minister.

Legislative branch

The National Assembly (Sapha Heng Xat) has 115 members, elected for a five-year term.

Judicial branch

The President of the People's Supreme Court is elected by the National Assembly on the recommendation of the National Assembly Standing Committee. The Vice President of the People's Supreme Court and the judges are appointed by the National Assembly Standing Committee.

In the early 2000s, bomb attacks against the government have occurred, coupled with small exchanges of fire, across Laos. A variety of different groups have claimed responsibility including the Committee for Independence and Democracy in Laos and Lao Citizens Movement for Democracy.