Asian Development Bank plans to halve Laos's poverty figure




29th September, 2001.


Forty percent of the population of Laos lives in poverty, according to an analysis jointly undertaken by the Asian Development Bank, the World Bank, and the Lao government.

The analysis underpins the Country Strategy and Program (CSP) for Laos that was endorsed by ADB's board of directors on Wednesday. The CSP aims to assist the government in reducing poverty by half by 2005, and enable Laos to graduate from the status of least developed country by 2020, ADB said.

The Laos report is the first CSP to be based on poverty analyses carried out under ADB's Poverty Reduction Strategy. As a result of the participatory poverty analysis, ADB's interventions will primarily focus on the poorer northern provinces and Savannakhet province. The northern provinces include Phongsali, Louang Namtha, Oudomxai, Bokeo, Louang Phrabang, Houaphanh, Sayaburi, and Xieng Khouang.

ADB's strategy for the next five years focuses on rural development and market linkages, human resource development, sustainable environmental management, and private sector development and regional integration. The strategy was developed through extensive consultation with stakeholders, including the government, provincial authorities, other aid agencies, international nongovernment organizations, community-based organizations, and the private sector.

ADB plans to lend Laos about US$45 million-$55 million annually on concessional terms for the period 2002-2004. In addition, ADB will provide technical assistance grants totalling $5 million annually for capacity building and governance, policy support, and quality project preparation. Three firm projects in the pipeline for 2002 include a smallholder development project ($15 million), a Nam Nghum River Basin Development scheme ($15 million) and a Financial Sector Development Project ($15 million).

(Asia Pulse)