Lao Govt seeks US$700m in aid to ensure economic growth of 8 percent
The Lao government needs between US$700 and US$800 million in Official Development Assistance (ODA) per year on average over the next five years (2011-15) to reach its target of annual economic growth of 8 percent.
To achieve the goal, government sectors need to display a firm commitment and real intention to utilise ODA provided by development partners in an effective manner, according to a senior government official.
Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong told Vientiane Times yesterday that government sectors need to strictly follow the requirements of development partners regarding aid effectiveness, transparency and good governance.
He was speaking on the sidelines of the Round Table Implementation Meeting (RTIM) which will be held in Vientiane today.
The RTIM is an important forum bringing together senior officials from the Lao government and development partners to pursue and strengthen policy dialogue on the country's development agenda.
The gathering also aims to reinforce partnerships and consolidate support for the implementation of the government's 7th National Socio-Economic Development Plan (NSEDP), the Millennium Development Goals (MDGs) and to foster aid effectiveness.
Dr Bounthavy said the RTIM would discuss implementation progress, recommend further actions for development strategies and policies and identify priority projects under the five-year NSEDP.
The RTIM also will highlight the launch of preparations for the following five-year ‘transition phase' of efforts to remove Laos from least developed country (LDC) status in 2020.
The theme of this year's RTIM is ‘Pathway to the Achievement of the 7th NSEDP/MDGs and 2020 LDC Graduation'.
Dr Bounthavy said the government expects to receive ODA of over US$700 million for the 2010-11 fiscal year but was unable to provide an exact figure when speaking to the media.
He said the government is committed to complying with donors' requirements to ensure it receives the target amount of ODA.
From 2006 to 2010, the Lao government received ODA totalling US$2.442 billion, exceeding the five-year target set at US$1.75 billion. This means the government received more than US$488 million per year on average from development partners over that period.
The government wants to obtain more aid over the next five years in order to ensure continuation of national economic growth and to reach average annual per capita income of at least US$1,700 by 2015.
The government has also set targets to reduce the poverty rate to below 19 percent of the total population and the household poverty ratio to 10 percent by 2015.
Since 1983 Laos has been participating in the round table process, with support from the United Nations Development Programme.
