Regions and Countries

	Table of Contents
p. 12 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Development IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Lao People's Democratic Republic : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

73. The persistent human resource limitation in Lao PDR has evolved into institutional capacity constraints that threaten to impede sustainable economic and social development. The structures and procedures of legislation, regulation, policy and project implementation and resource management face severe capacity constraints. ADB has been undertaking a number of initiatives to promote effective governance and capacity building in Lao PDR. Major recent ADB efforts include:

1. strengthening public financial management;

2. supporting the Government’s decentralization policy; and

3. improving environment for private sector development.

In addition, ADB has been supporting policy reform and institutional development at the sector level through specific components of project and program loans, economic and sector work, and policy dialogue.

74. ADB will continue to take a series of initiatives for capacity building and governance in priority areas. They include:

1. improving public financial management: Public Expenditure Review (2001), Institutional Strengthening of the National Audit Office (2001), Capacity Building for Project Financial Management (2001), and Strengthening Accounting and Audit Functions in the Government (2003);

2. implementing the poverty reduction strategy: Poverty Assessment Study (2000), and Institutional Strengthening of Poverty Monitoring Systems (2001);

3. supporting the Government’s decentralization policy: Local Resource Mobilization for Municipal Authorities (2001), and Capacity Building for Local Governments II (2003); and

4. strengthening institutional capacity in sectors in which ADB is involved (i.e., agriculture, education, health, and financial sectors).

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