Lao PDR

Millennium Development Goal 8

Develop a Global Partnership for Development

MDG 8 was not reported upon in the MDG Report 2004. Targets in Goal 8 relate to Official Development Assistance (ODA), market access, debt sustainability, access to essential drugs, and access to telephone, Internet and cellular services. The Government, in consultation with the international community, has developed locally relevant indicators and targets that are both useful and possible to consistently report on over time.

Lao PDR's exports are concentrated on very few products, namely garments, wood and wood products, electricity, coffee, forestry products and, more recently, mining. The share of mining exports has grown rapidly since 2000 and accounted for more than half of the country's total export volume in 2006.

Overall, expanding exports play a major role in Lao PDR's growth, rising at more than 11 percent per year and accounting for 24 percent of GDP in 2005, up from only 9 percent in 1990. Of note, there is very little in-country processing and thus only limited value addition. This indicates that the strong GDP growth over the past years does not translate into similar increases in the Gross National Income.

A large gap remains between domestically generated resources and what is needed to implement the NSEDP 2006-10, and Lao PDR needs continued commitment from its development partners to achieve the MDGs by 2015. To this end, it is critical that more resources be devoted to basic social services, for the equitable benefit of all categories of the population.

ODA plays an important role by funding both the Government's overall public expenditures and its Public Investment Programmes (PIP). PIP projects generate recurrent funding needs in the form of salaries and wages, materials and other operation and maintenance costs. With an increase in capital projects, the pressure on the

Government's recurrent budget likewise has risen. Donors and the Government need to jointly identify alternative ways to meet increasing development demands, while examining the recurrent expenditure implications in ODA project selection and efficiency.

Economic and social development prospects are good, considering the country's significant potential for capitalising on hydropower, mining, eco- and cultural tourism, commercial agriculture, niche-market Small and Medium Enterprise development, regional employment and transit trade. Several conditions for structural change and acceleration of economic growth are largely in place. If managed sustainably and inclusively, economic growth will generate employment and equitable social development for all.

Information and Communication Technology can play an important role in the fight against poverty and be an effective tool in helping countries achieve the MDGs. In the NSEDP 2006-10, the Government is committed to encourage investment in computer technology and facilitate the use of the Internet, particularly in remote and poor areas.

See indicators for MDG 8