Description

The Lao People's Democratic Republic (Lao PDR) is in transition, moving from a centrally-planned to a market economy and from an agrarian to a more urbanized society. Among the factors constraining development are a weak transport network, shallow financial markets, and a lack of needed skills for a modern and entrepreneurial economy.

This study assesses the performance of ADB country strategies and assistance programs to the Lao PDR between 2000 and 2009. Over the review period, ADB lending and nonlending assistance, including ADB-administered trust funds, amounted to $643 million. Agriculture received the largest share, at $109 million, or 17% of the total, followed by energy with $106 million (16%). The overall performance rating for ADB programs in the country is successful.

Approved Loans, Grants, and Technical Assistance to Lao PDR by Sector, 2000–2009

Among the key lessons identified in the country assistance program evaluation is that in a small transitional economy, governance is a central challenge, and the state has to develop new ways of regulating the economy and delivering public goods and services.

The study recommends that the next country partnership strategy, for 2012–2016, include strengthened ADB assistance to governance reforms and for building public sector financial management capacity. It recommends that ADB help develop the government's integrated medium-term capacity-development programs and continue support in social and environmental protection, as well as supporting innovative financing modalities to help meet the country’s growing funding requirements.

Contents

• Introduction
• Background Information During the CAPE Period
• Evaluation Methodology
• Summary of Evaluation Findings
• Overall Performance Rating
• Conclusions
• Appendixes