Poverty Reduction Support Credits

The Lao PDR has been a one-party, socialist state since the overthrow of the monarchy by the communist Pathet Lao in 1975, which was preceded by a long period of civil and regional strife. After a decade of relative isolation and close military cooperation with Vietnam, the new economic mechanism, introduced in 1986, ushered in an era of market-based reforms, which has continued to the present day. Lao PDR is one of the poorest countries in East Asia, with a 2006 per capita income of US$ 500. In 2004, 71 percent of its population of 5.7 million lived on less than US$ 2/day and 23 percent on less than US$ 1/day. However Lao PDR has grown rapidly since the inauguration of reforms two decades ago. During the 1990s growth averaged 6 percent per annum despite severe imbalances during the Asian crisis. Following successful stabilization, growth continued to average close to 6 percent during 2001-2004, accelerating in 2005-2007 to over 7 percent. Inflation remained well below 10 percent since 2005. Although Lao PDR qualifies for the Heavily Indebted Poor Countries (HIPC) initiative, the Government has chosen to maintain normal creditor relations. The latest debt sustainability analysis confirms that, while risk of debt distress is high, medium term debt service is manageable, contingent on continued reform and prudent fiscal management. Foreign direct investment has almost quadrupled between 2004 and 2007, and exceeds US$ 800 million annually, mostly in hydropower and mining. Growth in Lao PDR has been pro-poor. Based on the national poverty line, the poverty headcount has fallen from almost half to one-third of the population during the decade ending in 2002-2003. The country's performance on other elements of poverty reduction as summarized in the millennium development goals is mixed.

Bibliographic Details

Main Author:	Grawe, Roger
Format:	Working Paper biblioteca
Language:	English en_US
Published:	Washington, DC: World Bank 2010-09-01
Subjects:	ACCESS TO RESOURCES, ACCOUNTABILITY, ADB, ADJUSTMENT LENDING, ALLOCATION, ALLOCATION OF RESOURCES, ANNUAL REVIEWS, APPROPRIATIONS, ARREARS, ARTICLE, AUTONOMY, BANK POLICY, BANKING SECTOR, BANKING SECTOR REFORMS, BORROWER, BUDGET CYCLE, BUDGET DISCIPLINE, BUDGET ESTIMATES, BUDGET EXECUTION, BUDGET FORMULATION, BUDGET LAW, BUDGET OFFICIALS, BUDGET PLANNING, BUDGET PREPARATION, BUDGET RESOURCES, BUDGET SUPPORT, BUDGETING, CAPACITY BUILDING, CAPACITY CONSTRAINTS, CAPACITY-BUILDING, CAPITAL INVESTMENT, CASH MANAGEMENT, CENTRAL AGENCIES, CHART OF ACCOUNTS, CIVIL SERVICE, CIVIL SERVICE REFORM, COMMERCIAL BANK, COMMERCIAL BANKS, CONDITIONALITY, COST RECOVERY, COUNTRY PROCUREMENT, COUNTRY PROCUREMENT ASSESSMENT, CREDIBILITY, CREDITOR, DATA AVAILABILITY, DEBT, DEBT MANAGEMENT, DEBT SERVICE, DEBT SUSTAINABILITY, DEVELOPMENT BANK, DIAGNOSTIC WORK, DISBURSEMENT, DISBURSEMENTS, DONOR COORDINATION, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EDUCATION EXPENDITURES, EDUCATION SERVICES, EFFECTIVENESS OF GOVERNMENT, ENABLING ENVIRONMENT, ENTERPRISE PERFORMANCE, EXPENDITURE DATA, EXPENDITURE PLANNING, EXPENDITURE PRIORITIES, EXPENDITURE TRACKING SURVEYS, EXTERNAL AUDIT, FIDUCIARY ASSESSMENT, FINANCIAL ACCOUNTABILITY, FINANCIAL INFORMATION, FINANCIAL MANAGEMENT CAPACITY, FINANCIAL OVERSIGHT, FINANCIAL SECTOR, FINANCIAL SUSTAINABILITY, FISCAL DECENTRALIZATION, FISCAL RELATIONS, FOREIGN DIRECT INVESTMENT, GENERAL BUDGET SUPPORT, GOVERNMENT CAPACITY, GOVERNMENT EXPENDITURES, GOVERNMENT FINANCE, GOVERNMENT FINANCE STATISTICS, GOVERNMENT OWNERSHIP, GOVERNMENT POLICY, GOVERNMENT REFORM, GROSS DOMESTIC PRODUCT, HEALTH EXPENDITURE, HEALTH FINANCING, HEALTH FINANCING SYSTEM, HEALTH WORKERS, INFLATION, INFORMATION SYSTEMS, INFRASTRUCTURE INVESTMENTS, INSTITUTIONAL DEVELOPMENT, INSTRUMENT, INTERNAL CONTROL, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INVESTMENT CLIMATE, INVESTMENT CORPORATION, INVESTMENT LOANS, INVESTMENT PROJECTS, LEGAL FRAMEWORK, LEGISLATIVE FRAMEWORK, LENDING INSTRUMENTS, LIQUIDITY, LIQUIDITY POSITION, MACRO-STABILITY, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICY, MASTER PLAN, MEDIUM TERM EXPENDITURE, MEDIUM TERM EXPENDITURE PLANNING, MICROFINANCE, MINISTRY OF FINANCE, MONETARY CONTROL, NATIONAL DEVELOPMENT, NATIONAL STATISTICS, NATURAL RESOURCES, OVERSIGHT FUNCTION, POLICY FORMULATION, PORTFOLIO, POVERTY ASSESSMENT, POVERTY REDUCING, POVERTY REDUCTION, POVERTY REDUCTION STRATEGIES, POVERTY REDUCTION STRATEGY, POVERTY REDUCTION SUPPORT, POVERTY-REDUCING ACTIVITIES, PRIVATE SECTOR, PRIVATE SECTOR GROWTH, PROGRAM IMPLEMENTATION, PROGRAMS, PROVINCIAL EXPENDITURE, PROVINCIAL LEVEL, PROVINCIAL LEVELS, PRUDENT FISCAL MANAGEMENT, PUBLIC ADMINISTRATION, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC EXPENDITURE POLICY, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURE TRACKING, PUBLIC EXPENDITURES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC FINANCIAL MANAGEMENT SYSTEM, PUBLIC FINANCIAL MANAGEMENT SYSTEMS, PUBLIC INSTITUTIONS, PUBLIC INVESTMENT, PUBLIC MANAGEMENT, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SECTORS, PUBLIC SPENDING, RECAPITALIZATION, RECURRENT EXPENDITURES, REFORM ACTIONS, REFORM AGENDA, REFORM STRATEGY, REGULATORY FRAMEWORK, RESOURCE ALLOCATION, RESOURCE FLOWS, RESOURCE MANAGEMENT, RETURN, REVENUE FORECASTING, REVENUE GROWTH, ROAD MAINTENANCE, SALARY PAYMENTS, SANITATION, SECTOR BUDGET, SECTOR POLICIES, SECTORAL ALLOCATIONS, SERVICE DELIVERY, SOCIAL OUTCOMES, SOCIAL SERVICES, STATE AUDIT OFFICE, STATUTORY FUNDS, STRATEGIC PRIORITIES, STRUCTURAL ADJUSTMENT, STRUCTURAL PROBLEMS, STRUCTURAL REFORMS, SUSTAINABILITY ANALYSIS, TAX, TAX LAW, TECHNICAL ASSISTANCE, TIMELY PAYMENT, TOTAL EXPENDITURES, TOTAL PUBLIC EXPENDITURE, TRANCHE, TRANCHES, TRANSPARENCY, TRANSPORT, TREASURY, TREASURY FUNCTION, TRUST FUND, WAREHOUSE, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/886471468045890304/Poverty-reduction-support-credits-Lao-PDR-country-study https://hdl.handle.net/10986/27863
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