The World Bank Group Board of Executive Directors has discussed a new Country Partnership Framework (CPF) for 2023-2026 to support the Lao People's Democratic Republic in efforts to stabilize its economy, share the benefits of economic growth more equitably, and sustain development progress.
The CPF, a program of project finance and advice, builds on over 60 years of strong partnership between the Lao PDR and the World Bank Group. It lays out key areas for work by the World Bank Group which include supporting vulnerable households and sustainable livelihoods and promoting inclusive access to nutrition and health services, in particular for women and children.
The CPF was prepared by the World Bank Group in consultation with the Government of the Lao PDR, civil society, the private sector, and development partners. It is aligned with the poverty reduction strategies contained in the Lao PDR 9th National Socio-Economic Development Plan (NSEDP) 2021-2025. The CPF is informed by the Systematic Country Diagnostic.
"Through the new framework, our program for the next four years is designed to support efforts to meet the basic needs of the poor, prioritize jobs and health, in particular the fight against stunting; and help the country adapt to climate change." said Alex Kremer, World Bank Country Manager for the Lao PDR.
The Country Partnership Framework notes the Lao PDR is facing significant macroeconomic and public debt challenges. A more dynamic and competitive private sector will be crucial to generating more jobs in the country.
A key focus of the new partnership framework is an intensive program of technical advice on macroeconomic and debt-related policies, so that public resources are available for health, education, and social protection. The program also looks to support better management of natural resources.
"With public debt at critical levels, it is vital for the government to foster a conducive business-enabling environment so the private sector can grow, create jobs, and boost people's incomes." said Thomas Jacobs, IFC County Manager for the Mekong region, covering Vietnam, Cambodia and Laos.
As of June 30, 2022, the World Bank is financing a portfolio of 24 operations in Laos for a total committed amount of $903 million.
