Foreign aid is extremely important to the Lao PDR, financing 87 percent of the capital expenditure budget and 41 percent of the Government's total public expenditure in 2005/06 (Foreign Aid Report 2005/06).

The Round Table Process (RTP) is a process led by the Government of Lao PDR. It's goal is to improve the effectiveness of aid in order to achieve the objectives that matter most to the country's development: improving the health and education of Lao people; expanding their income opportunities; preserving Lao culture and heritage; and contributing to sustainable development.

The RTP comprises of a series of meetings at the national and sectoral levels to promote in-depth dialogue on policy between the Government and development partners. The objectives of the meetings are to increase national ownership over the development process, build consensus over priorities, and improve the coordination of activities relating to these priorities including adequate financing. This is achieved through the Round Table Meetings themselves, the Sector Working Groups, under the overall framework of the National Socio-Economic Development Plan and the Vientiane Declaration on Aid Effectiveness.

The Department of International Cooperation, Committee for Planning and Investment coordinates the Round Table Process. It receives guidance from the National Steering Committee which is chaired by the Prime Minister. The Round Table Process is supported by UNDP.