Regions and Countries

	Table of Contents
p. 16 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies 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

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V. Donor Activities and Aid Coordination

84. External assistance is one of the main sources of financing for the Government (see Appendix 3). Since Lao PDR is considered a least developed country, grant assistance dominates external assistance. Almost 60 percent of all assistance is grant aid. The major challenge facing Lao PDR is to enhance efficiency in the utilization of external assistance. The Government should be encouraged to take a leading role in coordinating external assistance to Lao PDR. The biannual RTM between the Government and aid agencies has been held for the purpose of coordinating external assistance. The seventh RTM will be held in Vientiane in November 2000 under the theme of “Attacking Poverty through Rural Development, Human Resources Development and Public Participation”. ADB is actively assisting the Government in the RTM process.

85. ADB has been a leading donor in Lao PDR and has closely coordinated its program with that of other major donors, particularly the World Bank, to minimize duplication and maximize development impact. Ongoing and planned joint tasks between ADB and the World Bank include Poverty Assessment, Portfolio Review, Financial Sector Note, and Public Expenditure Review. ADB is discussing with the Government and other major donors the possibilities of ADB taking a facilitating role in a selected number of key sectors. UNDP and other United Nations agencies have been an important multilateral grant provider to Lao PDR since mid-1980s. Among bilateral sources of assistance, Japan is the largest grant aid donor country, with transport and rural development as principal target areas. Other important bilateral sources are Australia, France, Germany, Sweden, Switzerland, Thailand, and the US. In addition, international NGOs are playing an increasingly important role in rural development and drug reduction programs. ADB is also closely coordinating with IMF in carrying out policy dialogues on macroeconomic management.

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