Lao PDR

Achieving MDGs and Poverty Reduction

“Poverty is the lack of ability to fulfill basic human needs such as not having enough food, lacking adequate clothing, not having permanent housing and lacking access to health, education and transportation services.”  National Growth and Poverty Eradication Strategy, Government of Lao PDR, 2004

One of the core priorities of the government of Lao PDR continues to be the eradication of poverty, through the provision of an enabling environment for growth and development, which includes private sector development. The government is guided in its attempts by the Millennium Development Goals (MDGs), a set of targets that address many dimensions of human development, including that of halving the proportion of people living in extreme poverty by 2015. 

Programmes To Reduce Poverty

UNDP’s Poverty and Economic programmes are geared towards providing strategic support to the government in its formulation and implementation of its national development plans and strategies, including the National Poverty Reduction Strategy (NGPES) and its five-year Socio-Economic Development Plans (NSEDP).

1. MDG country reporting and poverty monitoring

Over recent years, Lao PDR has experienced periods of economic growth and made encouraging development gains. For example, the number of people living in poverty fell from 45 percent in 1992/93 to 30 percent in 2002/03 Lao PDR Expenditure and Consumption Survey - LECS III Report

However, as in many other parts of the world, poverty in Lao PDR is exacerbated by growing inequality. Overall, the incidence of rural poverty is 41 percent compared with 29 percent in urban areas.  Urban adult literacy rates are almost double those of rural areas, and both child and maternal mortality rates differ profoundly. The list of such disparities continues.

To help the government ensure that all people, including men, women, different ethnic groups, different areas of the country and rural and urban populations, benefit from the economic growth taking place in Lao PDR, UNDP has several poverty reduction activities in place. Many of the projects emphasize that poverty is not simply measured in economic terms, and that it can only be eradicated when equity, social inclusion, women's empowerment, and respect for human rights are taken into consideration. To help the poor take advantage of economic growth, organizations and agencies that focus on socio-cultural and economic concerns, need further strengthening. 

UNDP is assisting the government, development community and general public to better understand the situation faced by poor people in Lao PDR through a series of tools, including a comprehensive statistical database, national reports and other advocacy documents. 

2. Pro-poor policy reform to achieve MDG targets

Developing countries are working to create their own national poverty eradication strategies based on local needs and priorities. Lao PDR embarked on this process in 2003, which culminated in the finalization of its National Growth and Poverty Eradication Strategy (NGPES).

The Government of Lao PDR has demonstrated its commitment to poverty reduction by presenting the NGPES at the 8th Round Table Meeting in September 2003. NGPES operationalization faced a number of challenges due to the fact that it is perceived to be outside the ambit of the Fifth five-year National Socio-Economic Development Plan (2001-2005) and the constituent Annual Plans. To remedy the situation, it was felt desirable to integrate the NGPES and the Millennium Development Goals (MDGs) with the regular five-year plans of the country as poverty reduction and the MDGs are seen to be integral parts of overall development. Accordingly, with encouragement from the partners in development, the Government has integrated the NGPES and the MDGs in the Sixth five-year National Socio-Economic Development Plan (2006-2010). The Plan draws together the various strands of poverty reduction in the NGPES into a coherent strategy, and integrates as appropriate the various poverty reduction interventions including the targeted ones and the MDGs into the respective sector development and regional development chapters of the Plan. It focuses on the eradication of poverty and promotion of equity among different groups of the Lao multi-ethnic population within a rapid and sustainable economic growth framework.

UNDP has been assisting the government to monitor progress towards achieving the goals of the NSEDP in Lao PDR and helping develop ways to implement the plan. A sound monitoring system will help inform the government and the development community of the pace and the performance of the NSEDP as well as the progress towards achieving the MDGs.

3. Globalization benefiting the poor 

Lao PDR's ability to participate in the global economic system is constrained by the fact that it is still in transition to a market economy. The government recognizes the benefit from regional and global integration. The decision to join ASEAN with the consequent obligation to join the ASEAN Free Trade Agreement (AFTA) required Lao PDR to undertake a program of trade liberalisation.

With Lao PDR’s trade interests outside the ASEAN region also growing, the government has also applied for membership of the World Trade Organisation. It has decided to join the Integrated Framework initiative for LDCs.  

UNDP is a partner of the government in all these areas, providing support through initiatives aimed to improve governance systems, strengthen capacities to participate more fully on the regional and world stage, undertake research and technical studies to assess Lao PDR strengths and protect Lao PDR interests in these processes, and also understand more fully the links between increasing integration and poverty reduction and human development.

A key aspect of women’s empowerment is their increased participation in political and public life. The third Millennium Development Goal to ‘Promote Gender Equality and Empower Women’ reinforces thatgender equality is not merely a desirable by-product of human development; it is an essential requirement. Gender discrimination is the source of endemic poverty, of inequitable and low economic growth, of high HIV prevalence, and of inadequate governance.  Any form of gender discrimination is a denial of basic rights, an obstacle to human development. Gender mainstreaming means being deliberate in giving visibility and support to women’s contributions and addressing the differential impact of strategies, policies, programmes and projects on women compared with men. It requires a focus on actual results in terms of gender equality at all levels.

Promoting gender equity and women’s advancement are a priority of both UNDP and the government. The National Growth and Poverty Eradication Strategy (NGPES) lists gender equity as one its key  priorities. UNDP has been working in partnership with several donors and the Lao Women's Union to promote gender equity across all sectors.

The Gender Empowerment for Poverty Reduction (GEPR) project is assisting the Government to build its capacity for stronger policy and practice to overcome gender inequalities and thereby achieve its goals of poverty reduction and social equality.  The emphasis is “learning-by-doing” through connected pilot activities at the central, provincial, district, and village level. The project is also developing a “Gender Mainstreaming Toolkit for Lao PDR" that will ensure that the learning and good practice from the pilot activities can be replicated in other locations and sectors.

5. Support for the Round Table Process

Effective coordination both within the United Nations system and among donors in the Lao People’s Democratic Republic has been a key achievement of UNDP. Alignment of external aid with Millennium Development Goal-based national plan and development priorities and capacity development for ODA management has been undertaken through the round-table process.