Swiss govt further supports poverty alleviation
The Swiss government has reaffirmed its support for poverty alleviation in Laos, providing more funding for basic public infrastructure improvements in some of the country’s poorest districts.
A second agreement for financing for the Poverty Reduction Fund (PRF) amounting to over 38 billion kip (US$4.5 million) was signed in Vientiane on Friday between Deputy Minister of Finance Ms Viengthong Siphandone and Regional Director for Swiss Cooperation in the Mekong Region Martin Sommer.
“Switzerland has renewed funding support for the PRF to further support the efforts of the Lao government to implement the national socio-economic plan,” Mr Sommer said at the signing ceremony.
The objectives of the PRF, which works to reduce poverty through efficient and effective delivery of services to the poorest villages in the country, correspond to one of the priorities of the Swiss Cooperation in Laos, he said.
From this year, with the additional funding, the PRF will start operating in two districts of Xekong province, according to a press release from the Swiss Agency for Development and Cooperation (SDC).
Based on the PRF’s achievements in alleviating poverty, Switzerland , through the SDC, first provided support for the body last year with US$1.8 million. With this present agreement, total Swiss financial assistance to the PRF has reached US$6.3 million.
The fund is operational in 2,185 villages of 21 districts in Huaphan, Xieng Khuang, Luang Namtha, Savannakhet, Champassak and Saravan provinces, reaching over 720,000 people, a press release noted.
Ms Viengthong said in the last year thousands of people in rural areas of the poorest districts had gained access to basic public infrastructure relating to health, education, water, roads and agriculture.
This meant they had been able to improve their level of knowledge and better their standard of living.
The fund also helps to redress imbalances in development between urban and rural areas.
Ms Viengthong said the additional funding from SDC will be used for basic infrastructure construction, occupational training for local people and to encourage them to protect forests for their sustainable use.
The PRF is expanding countrywide. It is supporting three new districts in Luang Namtha province this year and has agreed to work in two new districts in Xekong province next year.
The fund began its work in 2003. Until last year, its activities were financed by low-interest loans worth about US$20 million from the World Bank.
From 2008 to 2011, the PRF’s activities are being funded by grants of about US$21.3 million from the World Bank and SDC.
The PRF aims to empower poor villages in target districts to plan, manage and implement their own public investments in a decentralised and transparent manner.
Its goal is to strengthen loc al institutions’ participatory decision-making and conflict resolution at the village and district levels, involving a broad range of villagers, including women, the poor and ethnic groups, and help villagers technically and financially to develop community infrastructure and gain improved access to services.
By Phonsavanh Vongsay
October 26, 2009
Vientiane Times
