Regions and Countries

	Table of Contents
p. 4 of 20 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation 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 : I. Country Performance Assessment

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C. Assessment of Socio-Environmental Performance

1. Gender Issues

13. The quality of life statistics for most Laotian women is discouraging. The maternal mortality ratio is still around 650 per 100,000, one of the highest in the region (see Appendix 1, page 2). The total fertility rate is around 5.6 births per woman, and birth spacing services are underdeveloped. Thirty-five percent of childbearing women suffer from anemia, a problem exacerbated by malaria. The average years of schooling for females is only 2 years. While the literacy rate for males over 15 years old is 62 percent, it is only 30 percent for females. Women’s educational attainment and work opportunities are severely skewed, and hampered by heavy economic, social, and cultural burdens. The case of ethnic minority women and girls, representing about 50 percent of the female population, is much worse. They are the majority of the poorest quintile. Many have never seen the nearest district town or market. They comprise the largest segment of illiterates, nonschool attenders, and primary school dropouts. Reverse literacy or backsliding—learn then lose literacy—is common among women in minority villages as it is difficult for them to retain a non-mother tongue language.

14. In the context of skilled-labor shortages and the emphasis the Government places on human resource development, it must strive to provide the enabling environment to take advantage of this vast pool of untapped human capital. A focus on women is particularly warranted in Lao PDR because of the large effects of improved female human capital on productivity growth. Those women who are more educated and exposed to outside influences are showing signs of becoming not only the crucial household managers, but also key stimulators of microeconomic development.

15. To address many of the issues facing women, Lao PDR will have to expand opportunities for economic growth for the rural poor, especially for women, and improve social service delivery targeted at women. In rural areas, agricultural extension and training programs need to better target women farmers. To diversify crops, increase livestock production, protect the forests, and stabilize cultivation systems, women’s strong decision-making and labor roles need to be recognized and strengthened. Small-scale, village-based credit systems must be fostered and women in particular should be trained on how to operate and obtain benefits from the systems. Young girls need role models to encourage them to stay in school and attain skills, and society at large needs to learn the benefits of educating young women. Parents of young females should also be targeted for information campaigns to heighten their awareness on the value of educating their daughter(s).

16. The Lao Women’s Union has played an increasingly important role in the country’s development with its well-developed network through training to foster gender equality and enhance the role of women in society, economy, and government. Institutional strengthening of the Lao Women’s Union particularly at the district and village levels is required, so that it can effectively mobilize women communities to identify priority needs, and to plan, design, implement, and sustain development activities.

2. Human Development

17. The annual population growth rate is estimated at 2.5 percent in 1999, reflecting the current high fertility rate of around 5.6 (see Appendix 1, page 2). Overall population density in Lao PDR is low at 19 people per square kilometer in comparison to 210 in Viet Nam and 53 in Cambodia. This low density has led many to view Lao PDR as underpopulated. However, arable land is scarce, covering only 3 percent of the total land area, and is already under severe pressure. It is now difficult to find actual open or readily available land for future population expansion and new communities. In addition, the high population growth rate is recognized as a critical factor explaining the vicious cycle of poverty in Lao PDR.

18. The Government has recently adopted the National Population and Development Policy. The policy recognizes the importance of a population policy in achieving development objectives and indicates a gradual decline in the population growth rate to 1.7 percent by 2020, reflecting a declining fertility rate to 3.2. According to this indicative figure, population will increase by almost 60 percent over the next 20 years. This projection has important implications for social services, notably for education and health, and employment opportunities. Forty-five percent of the population is currently under the age of 15. Even within the next five years, an additional 200,000 will be of school-age, requiring additional classroom space and another 6,500 teachers. Increased pressures on primary health care services are also inevitable. The tightening fiscal climate means that hard choices will be necessary to accommodate the increasing demand and deliver the improved service quality.

19. In terms of UNDP’s Human Development Index, Lao PDR ranks 140th out of 174 countries in 1998. Remote, mountainous geographical features are a barrier to access and cost-efficient social service delivery. Rural road infrastructure is rudimentary. Only one-third of the rural poor have access to primary schooling, compared to 85 percent in urban/semi-urban areas. Only 15–20 percent of rural villages have ease of access to a lower secondary school. Schools are small, with a primary school averaging approximately 85 pupils, and lower secondary 200. Another problem is the low value many rural families place on education, reflected in household consumption budgets, where education is allocated 2 percent and alcohol and tobacco 3 percent. The concept of education improving a child’s and the family’s future well-being is usually undermined by immediate and overwhelming household and childcare needs.

20. A similar pattern of poor areas is evident for healthcare provision. Only 23 percent of rural villages have a district hospital within 3 kilometers, compared to 90 percent in urban areas. Public health facilities in rural areas are seriously underutilized due to poor performance and financial and geographical access barriers. Perceptions of unreliability, low quality, and high cost of hospitals contribute to 75 percent of rural people preferring more accessible pharmacies and traditional healers. Malaria strikes 1.4 million people each year, causing as many as 14,000 deaths. Respiratory infections and diarrheal disease cause respectively 5,500 and 4,000 deaths of children under five years per year. The population is also facing an HIV/AIDS epidemic as cross-border contacts are increasing. As of end 1997, 1,100 cases of HIV have been identified in the country.

21. With regard to child labor, the situation to date has not been serious. Traditional agricultural practices still dominate the economy while cultural practices protecting the exploitation of children still exist in society. However, there is growing concern that trafficking of children to Thailand for purposes of child labor and prostitution could increase, given the trend of increased cross-border contacts and employment opportunities.

3. Environment

22. Lao PDR's natural resources are of direct relevance to its estimated rural population of 3.9 million, 85 percent of the total population living in 12,000 villages with an average size of 300 inhabitants. Specific environmental issues that need to be addressed in Lao PDR include the closely interrelated problems of deforestation and soil erosion, poor water resources management, and biodiversity losses (see Appendix 1, page 2). Deforestation is a continuing problem. Although better control than at the beginning of the decade is being witnessed, the inadequate regulation of logging continues to be a major concern. Environmental issues are related to pervasive poverty (especially in the uplands), insecure land tenure, and a lack of environmental awareness among the general public. The current high growth rate of the population is also of particular concern. The sustainable management of forests and decreasing shifting cultivation are high national priorities. Through its forestland allocation program, the Government is attempting to settle people on arable land to encourage livelihoods from permanent agriculture activities.

23. Lao PDR ranks as one of the biologically richest countries in the region. The Government’s policy on biological conservation is based on the establishment of protected areas and on the application of conservation practices in forest management. However, its forest conservation efforts are seriously constrained by the underdeveloped legal framework, the limited institutional capacity, weak human resource base and limited financial resources. Although several laws on natural resources and environmental management were recently promulgated, regulations for their implementation are still under consideration. Clear national environmental policies, a strong supporting legal framework, and an effective monitoring and enforcement capability need to be further developed.

24. The development of water resources is linked to ensuring food security through improved irrigation management, to expanding hydropower capacity, and to providing water for human consumption. Water resource exploitation should take better account of environmental impacts. Lao PDR is subdivided into a number of major river basins and many more minor basins, which drain into the Mekong River. It is important that the tight ecological and geophysical interrelationships among resources like water, timber, soils, wildlife, fish, and minerals be recognized through integrated river basin development plans.

25. To be effective, natural resources management must be closely coordinated across sectors. However, such coordination has not yet been established in Lao PDR. The responsibilities of individual agencies remain unclearly defined, resulting in duplication in some areas and absence of coordination and oversight of environmental affairs in others. As a result of the promulgation of the new Environment Protection Law, the Science, Technology and Environment Agency (STEA) will have some degree of authority over shifting cultivation, soil erosion, and disaster preparedness and relief activities. The Government is pursuing a policy of decentralization for the implementation of environmental management and protection measures. A greater role for local authorities in planning, implementation, and enforcement of regulations can be achieved only through capacity strengthening.

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