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ADB to support inclusive, sustainable growth in Laos
The Asian Development Bank’s (ADB) Board of Directors will deliver US$421 million in assistance through 2020 to Laos to support a new 4-year country partnership strategy.
The new partnership strategy will help Laos achieve more inclusive and sustainable economic growth by diversifying its economy, increasing trade with its neighbours, and boosting private investment in small- and medium-sized enterprises, the ADB announced on its website on September 21.
ADB supports the government’s efforts to transform Laos from a landlocked to a land-linked country and rise above least developed country status by 2020, ADB Country Director to Laos Yasushi Negishi said.
This partnership strategy builds on our close collaboration, and ADB will continue to invest in programmes and projects in sectors where we have strong operational experience.
Laos has enjoyed stable economic growth in the last decade. Gross Domestic Product (GDP) grew 7.5 percent per year on average from 2011 to 2016, and per capita GDP increased from US$621 in 2006 to US$2,027 in 2016, ADB reported.
The robust economic growth has led to a steady decline in the national poverty rate, which dropped to 23.2 percent in 2013 from 33.5 percent in 2003.
But challenges remain. Economic growth is mainly driven by only a small number of resource-intensive industries, such as mining, timber extraction, and hydropower, according to ADB.
Much of the country’s infrastructure, including urban services, irrigation, rural electrification, and land transport, remains inadequate, and Laos also faces challenges including governance, environmental degradation, inefficient public sector management, and limited human capital.
The new partnership framework seeks to help the government address these challenges by increasing infrastructure investments, which will help reduce logistics costs, attract more private sector investments, as well as broaden people’s access to markets, social services, and economic opportunities.
It also aims to help diversify the economy and provide job training for the non-resource sectors. The strategy will also focus on ensuring sustainable natural resource management and climate resilience. Gender equality and governance are crosscutting themes.
As Laos is centrally located in the Greater Mekong Sub-region (GMS), the country partnership strategy will tap ADB’s considerable institutional experience in the GMS Economic Cooperation Programme to expand regional cooperation and integration and foster more balanced growth.
ADB will also increase its private sector operations and mobilise more private sector resources to help the government implement the eighth National Socio-Economic Development Plan 2016-2020.
The Asian Development Bank, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members – 48 from the region. In 2016, ADB assistance totalled US$31.7 billion, including US$14 billion in cofinancing.
Source: http://www.vientianetimes.org.la/FreeContent/FreeConten_ADB_225.htm