Millennium Development Goals Progress Report Lao Pdr

This Joint Staff Advisory Note reviews the National Socio-Economic Development Plan (NSEDP) 2006–10 and the Annual Progress Report for Lao People’s Democratic Republic (PDR). The government of PDR approved the Sixth NSEDP 2006–10 (PRSP) in June 2006. The NSEDP provides a comprehensive strategy for development, with a range of medium- and long-term policies aimed at sustained growth and poverty reduction. IMF staff agrees with the poverty diagnosis in the NSEDP, but recognizes that achieving the Millennium Development Goals will require major efforts.

This Annual Progress Report (APR) reviews the Poverty Reduction Strategy Paper for Lao People’s Democratic Republic (PDR). Noticeable improvements have also occurred in many economic, social, institutional, and legal development areas. While strengthening the management of the public sector and governance, the GoL is increasing public investment to develop physical and social infrastructure and promote human resources. The promotion of the private sector is receiving greater attention through significant improvements in the business climate and trade facilitation. Macroeconomic indicators are also evolving in a satisfactorily manner.

The First United Nations Mandate on Minority Issues describes the challenges in shaping a new mechanism for the UN’s protection of minority rights and contains reports on the plight of minorities in countries around the world.

Despite Asia’s rapid growth, vast sections of its population still live in poverty and suffer hunger and other forms of deprivation. Merely relying on Asia’s growth will not help the deprived see a better future in their lifetimes. Ways must be found to make growth more inclusive combined with proactive public action to bring substantial improvements in the lives of Asia’s deprived people. This book is written by a set of experts who have been working long on reducing various aspects of human deprivations in Asia. It begins with a discussion of the massive dimensions of deprivations that continue to exist in Asia. Although many countries have adopted inclusive growth strategies to enable the benefits of growth to reach the poor, much more needs to be done to make growth processes more broad based and beneficial to all. The book points to essential action needed to bring this about. The book also emphasizes the crucial role of determined, target driven public action if Asia’s deprived populations are to see substantial improvement in their lives. Practical measures to tackle problems of hunger, unemployment, gender discrimination, ill health, lack of quality basic education, inadequate access to clean water and basic sanitation are each discussed. The problems of the urban poor and migrants who continue to flock to Asia’s cities are also highlighted. The book also emphasizes the need for an appropriate environment for public action to succeed including strong participatory institutions, effective governance, social protection and regional cooperation.

This 2013 Article IV Consultation highlights that over the past year, the economy of the Lao People’s Democratic Republic has been overheating from expansionary macroeconomic policies. The fiscal deficit is estimated to have widened to 61⁄2 percent of GDP, mainly fro'm a doubling of public sector employee compensation and higher capital spending. Government liquidity is tight, and wage and other arrears of 2–3 percent of GDP have emerged. Monetary policy has been accommodative, and credit growth remains vigorous. Although medium-term growth prospects remain favorable, based on robust natural resource exports and post-WTO expansion in the nonresource sectors, heightened vulnerabilities have subjected the outlook to considerable uncertainty.