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Innovations in Poverty Eradication in Laos

Innovations in Poverty Eradication in Laos
Laos, known as the Lao People’s Democratic Republic, is the only landlocked country located in Southeast Asia. It ranks as one of the region’s poorest countries, ranking 122 on the human development index. While the country has significantly reduced its poverty rate over the years, its people are still susceptible to falling back. Fortunately, various organizations as well as the United States government have continued to provide aid and elevate Lao society. Here are some innovations in poverty eradication in Laos, involving initiatives like UNICEF and the Poverty Reduction Fund (PRF).

Modifications in Child Education

Low completion rates in education have always been an issue in Laos, especially in regions such as the southern province of Saravan. UNICEF with the support of the Hong Kong National Committee has been training pre-primary teachers on effective teaching, learning and class management that center around children. This includes the use of learning corners, creating through local sources and children learning while at play, as well as access to distributed materials, which include coloring books, picture books and storybooks. Around 50 pre-primary teachers that received this training for 2021-2022 benefitted more than 4,000 children in Saravan’s southern province.

Improved Access to Water and Hygiene

At the beginning of the COVID-19 pandemic, UNICEF worked with 23 schools in the Sarvan region to construct water stations, toilets and promote water hygiene activities. The benefits for the children have led to children not having to defecate in open areas, practicing proper handwashing techniques with soap and students going home to teach their families proper handwashing techniques. All factors incentivize cleanliness, which lessens the likelihood of disease.

People-to-People Ties with the United States

With Barack Obama being the first sitting U.S. President to visit Laos, the U.S. and PDR continue to work together through a harsh historical legacy to open a new era of bilateral relations. Because 70% of Laos’ population is under 30, the United States is using exchange programs that include Humphrey, Fulbright, the Global Undergraduate Exchange Program and Obama’s Young Southeast Asia Leaders Initiative (YSEALI) to engage and elevate the next generation of young leaders. English teaching programs will also emerge by introducing more teachers and language experts, improving English-language skills and increasing connectivity between younger generations of both countries.

The Poverty Reduction Fund (PRF)

The World Bank has been part of the PRF since its inception in 2002, empowering Lao villagers and improving village infrastructure. This has resulted in 165 villages establishing 915 Self Help Groups, totaling more than 10,000 members (85% female) between 2012 and 2019. About 15 of 23 pilot Village Nutrition Centers are still in operation as of 2016, allowing members to use products provided to continue making nutritious meals. PRF infrastructure activities have resulted in 87% of target households participating in voting on village priorities, with women identifying 90% of the subprojects. With such positive progress, preparations are currently underway to further improve both livelihood and nutrition activities.

As it stands, innovations in poverty eradication in Laos have been able to elevate the Lao people through historical hardship. While the country’s poverty rate has significantly decreased from 48% to 18% from 1993 to 2019, the implementation of further innovations in poverty eradication in Laos will need to continue, thus increasing the livelihood of the Lao people.

– Jerrett Phinney
Photo: Flickr

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International Efforts to Reduce Poverty in Laos

Poverty in Laos
The Lao People’s Democratic Republic, or Laos, is a landlocked country in Southeast Asia. One of the fastest-growing economies in the world, the country has halved its poverty rate in the past 20 years. This is an impressive feat for the import-heavy country given that less than 5% of its land is suitable for agriculture. Poverty in Laos, however, remains a formidable issue. Laos faces a significant wealth gap between its capital Vientiane and poorer rural areas. Foreign aid and international efforts strive to reduce poverty in Laos.

The World Bank and the Poverty Reduction Fund

Created in 2002, the Poverty Reduction Fund (PRF) linked Laos to the international community through the World Bank, aiming to reduce poverty in Laos. The goals of the PRF have progressed over time, reducing poverty at a grassroots level and helping the Laotian poor achieve self-sustainability.

PRF has positively impacted more than 10,000 Laotian women and their families – self-help groups in different villages provide microloans, monthly household income has increased exponentially over the years and nutrition centers, roads and schools are constantly improving and serving Laotian villagers.

In December 2019, the World Bank approved additional funding of $22.5 million as a soft loan to Laos. This loan supports the Laotian government’s National Nutrition Strategy, which seeks to improve rural conditions by developing agricultural infrastructure.

The Asian Development Bank

The Asian Development Bank (ADB) grants loans, technical assistance and equity investments to promote development in Asian countries. ADB has assisted poverty-reduction operations in Laos since 1968 and still finances assistance to the country. As of 2019, it has provided Laos with a total of $2.91 billion.

ADB generally focuses on sustainable development in Laos but also funds education to achieve social and economic development. Because of its early involvement in Laos, ADB’s efforts have yielded impressive results, having connected more than 20,000 households to electricity and water and providing education facilities to more than 100,000 Laotian students.

The United Nations Development Program’s Brand Laos Initiative

The United Nations Development Program (UNDP) fights global poverty, seeking sustainable development and global equality. UNDP has several ongoing projects in Laos supporting gender parity and government transparency. One notable initiative is a project it calls Brand Laos – a mission fighting for a unique Laotian brand and niche.

Brand Laos researches Laotian economic niches in order to create a unique marketable perspective for the country, finding viable products for farmers, producers and service providers. This economically benefits Laos, raising income for agricultural workers and producers. A Laotian niche could reduce poverty while bringing spurring development.

In particular, these types of projects seek high-quality products for international markets where consumers pay extra for ethically produced foreign products. Brand Laos has looked into products and services such as tea, silk-based clothing and ecotourism.

Conditions in rural Laotian households have improved drastically in recent decades, thanks to these international efforts. The Laotian national poverty rate was 46% in 1992 and fell to 23% in 2015. Additionally, households have greater access to electricity, water and even extraneous symbols of development like smartphones. The continued work should increasingly reduce poverty in Laos.

– Maggie Sun
Photo: Flickr