Poverty Reduction
At 27.6% Lao PDR has one of the highest poverty rates in East Asia and Pacific. However, over the past 20 years, poverty has continued to decrease and it is likely that the MDG poverty goal will be met.
The key challenge remains to address the growing gap between the rich and the poor and ensure equitable, sustainable growth for all residents of the Lao PDR.
Key achievements
The past five years have seen the implementation of governance frameworks and improved services, particularly at provincial levels.
Other initiatives include better access to village markets and microfinance loans, as well as development of land-use policies. Shifting cultivation practices have declined by 33%.
Access to basic infrastructure including roads and telecommunications as well as enhanced service facilities has improved health and sanitation and resulted in declining child, infant and maternal mortality rates, seen a rise in school attendance and improved access to employment.
Over 60% of villages now have telephone connection and over 50% have access to electricity.
Achievements in the 47 poorest districts
During the period 2006-10, initiatives in the 47 poorest districts have included:
- Participatory planning exercises across 102 Kum bans in 61 poor districts.
- 41.7 billion Kip provided through the Village Development Fund and 3.132 billion through microfinance for SME investment.
- 16.6 million USD provided through the Poverty Reduction Fund, which has seen more than 2000 subprojects implemented, benefitting 745,000 poor across 161 Kum Bans and 1,900 poor villages.
Future directions
Poverty and rural development is at the core of the NSEDP, and all MDGs significantly influence poverty reduction. Further, the Government of the Lao PDR is working to shift from agricultural production to industrialization while ensuring environmentally sustainable and equitable economic development by expanding the development of socio-cultural villages, improving transparency and enhancing service delivery.
With a focus on the 47 poorest districts, targets include:
- Reduce poverty head count to less than 19% by 2015.
- Ensure that village access roads are accessible at least two seasons in every year.
- Ensure 80% of households across the country have access to electricity.
- Ensure all children have access to education
- Ensure access to potable water for 80% of the rural population and sanitation to 70%.
- Solve the problem of malnutrition among children to achieve the MDGs.
Nutrition is also a key focus in order to decrease the proportion of stunted children under five years to 34% and wasted children under five years to 4%, as well as decrease the proportion of children under five and women suffering from anaemia to 30% and 25% respectively
Targets will be met through continuing the establishment of model villages, strengthening grass-roots administration, encouraging commercial production, promotion of small to medium enterprises, continued expansion of agricultural extension centres and provision of funding, including soft loans through village development funds, money saving and collective groups.