National development plan focuses on poverty

The 2009-10 national socio-economic development plan, along with those drawn up in subsequent years, will continue to focus on fundamental poverty issues and development.

The plan is designed to accelerate the efficient exploitation of natural resources and untapped domestic potential together with ensuring environmental protection and sustainable development.

“To achieve development targets, the support and assistance accorded to Laos from development partners and international organisations is not only necessary, but indispensable,” said Prime Minister Bouasone Bouphavanh.

Mr Bouasone was speaking at the 9th Annual Round Table Implementation Meeting on Official Development Assistance and Development in Laos, held yesterday in Vientiane.

Implementation of the 2008-09 development plan and national budget has attained objectives relating to macroeconomic stabilisation, GDP growth of 7.6 percent, and social sector development.

Mr Bouasone said the achievements are partly due to the successful implementation of government policies and crisis management measures as well as the government’s economic stimulus package.

“They are also attributed to the immediate response from development partners providing both financial support and other assistance, and I wish to express, on behalf of the Lao government, our heartfelt appreciation,” Mr Bouasone said.

Minister of Planning and Investment Dr Sinlavong Khoutphaythoune said that in the 2008-09 fiscal year international assistance to Laos amounted to US$560 million, comprising US$383 million in grants and US$177 million in loans.

UNDP Resident Representative and UN Resident Coordinator, Ms Sonam Yangchen Rana, said government leadership and close partnerships with development partners has seen poverty decline to 26 percent of the total population in recent years, from 33.5 percent in 2002, and 46 percent in 1992.

Economic growth and development may have achieved positive results, “but when taking a closer look at the inner structures, it is recognised that there remain a number of issues to be rectified as growth still depends on household economies and on vulnerable small and medium enterprises,” Mr Bouasone said.

Economic development is also largely dependent on the exploitation of natural resources, while the financing for development comes mainly from external sources.

“These are the fundamental issues posing challenges to our development and integration efforts,” Mr Bouasone said.

For 2009-10, the government has approved socio-economic development and budget plans that include proactive macro level socio-economic development targets derived from last year.

“We are currently mapping out the 7th Socio-Economic Development Plan 2011-2015 (7th NSEDP). We will outline some focus-oriented directions aimed at achieving the key features of the Millennium Development Goals,” Mr Bouasone said.

Ms Sonam Yangchen Rana said the 2011-15 plan will provide the Lao government and development partners with a common government-led framework for coordinating collective efforts and financial assistance towards achieving the country’s development goals.

The goals includes maintaining robust economic and social growth through trade and private sector engagement, infrastructure building and ensuring investment in the social sector.

“The 2011-15 plan provides a major opportunity for further poverty reduction,” she said.

The m eeting provided an opportunity for the Lao government and development partners to continue discussion on issues of interest, including outlining past achievements, presenting a draft of the 7th NSEDP and the resources required to implement it.

“The Lao government is pleased to receive any comments from development partners on related issues,” Dr Sinlavong said.

By Vientiane Times Reporters
November 4, 2009