In Lao PDR, unequitable distribution of basic public service delivery, limited state financial resources, constrained capacity of local public administrations to engage with citizens to prioritize local needs, and inconsistent implementation of devolution policies have contributed to poor and uneven access to basic public services, particularly affecting citizens from poor communities.

Despite a continued economic growth with a GDP growth of around 7% for 2016/17, the very poor (17% of the population) live in areas with scarce infrastructure, access to adequate healthcare, drinking water, and sanitation facilities remains a challenge in rural areas. Budget allocation for capital and recurrent spending for service delivery, especially in remote and marginalized areas, is currently and will be impacted negatively by the fiscal deficits the Government of Laos has been facing since the last decade.

On the policy level, the national devolution policy (Sam Sang) has been applied nationwide since late 2016. The Sam Sang framework promotes fully functional local administration to plan, budget, and deliver responsive local public services with greater budgetary discretion and revenue responsibilities.

Support the government’s plan to strengthen its public administration’s ability in order to achieve the goals of better service delivery, promote wider governance improvements and increase citizens’ systematic engagement, especially at the local levels where basic services are coordinated, planned, tracked and reported.

• 3,400 local officials in the targeted districts and provinces.
• About 1’200’000 villagers (50% female and 70% are from ethnic minorities) of 235’000 households in 2’400 villages within the participating districts.

Local institutions are able to increase the coverage of basic services and include citizens’ feedback in the planning cycle for services provision by 2020.

Principaux résultats attendus:  

1. Targeted local administrations are able to develop and finance the implementation of multi-sector work plans based on community priorities.
2. Accountability framework applied at the district level to capture and use citizens’ feedback on provision of basic services.
3. Enhanced multi-stakeholder governance processes promoting dialogue and feeding into good governance related policies including the delivery of basic services.

Principaux résultats antérieurs:  

• The District Development Fund (DDF) which provides untied block grants, has been scaled up to 53 (out of 148) district administrations, enabling them to engage with local communities to identify and provide basic public services related to their priority needs.
• DDF has directly improved the capacity of 2,580 local officials, including 427 women, in planning, procurement, financial management and reporting across 53 district administrations. Therefore, they are able to provide more responsive services and self-reliant local development.
• Over 225’000 households (1’219’693 people, 612’228 females) have access to basic services related to health, education, agriculture extension and rural roads.
• The expansion of the One Door Service Centres (ODSC) has been challenging and the impact on better local service delivery to date is varied.
• Governance Sector Working Group (GSWG) and its 2 sub-groups are well-functioning. The GSWG is a major platform for key stakeholders including GoL and DPs to discuss governance issues, such as public services delivery and accountability, fiscal decentralization, people’s and civil society participation in the country’s development.

UNCDF (technical assistance), Ministry of Home Affairs (implementing agency), Ministry of Finance, Provincial and District Administrations and Ministry of Planning and Investment.

Poverty Reduction Fund (PRF III)

Phase 4 01.08.2017 - 30.09.2021   (Completed)