Lao PDR

Since the introduction of economic reforms in the mid-1980s, strong growth and development have lifted thousands of poor women and men out of poverty, changing traditional... Show More + ways of life in Lao PDR. In this environment of change, gender relations, within the family, village and society at large, are changing too. Gender equality is a core development objective. It is also smart economics. Greater gender equality can enhance productivity, improve development outcomes for the next generation, and make institutions more representative. As Lao PDR continues its development, the empowerment of women and girls will be a key to translating the country's economic growth and the energies of its young people into improved living standards that benefit women and men alike. This assessment synthesizes information and findings from recent literature and research on gender issues in Lao PDR for the Asian Development Bank (ADB) and the World Bank's (WB) country partnership strategies. The assessment is planned to contribute not only to the work of the ADB and the WB, but also towards the work of the government and development partners by bringing the latest information on gender issues to the forefront. Many of the gender issues reviewed in this report cut across multiple aspects of social and economic life. This assessment presents gender issues into three main dimensions of gender equality, endowments, economic opportunities and agency, using the framework developed by the World Bank's world development report on gender. In addition to these three areas, the report also analyzes gender issues related to emerging areas of development and growing risks. Show Less -

This paper explores a rich dataset of monthly firm-level data on the population of exporters of Lao PDR from 2005 to 2010. The survival analysis uses a discrete-time... Show More + logistic model based on firm-product-destination triplets while accounting for unobserved heterogeneity. It looks in detail at the role played by two important and related determinants of survival: experience and networks. These are particularly relevant for developing countries, where relevant export experience in firms is likely to be limited and networks leveraging it all the more important. The analysis reveals the positive impact of having prior experience with the export product and destination, experience with importing, as well as using a developed neighboring country as launch platform. Networks are found to be most relevant when they are most specific -- the largest impact comes from province level aggregations of firms selling the same product in the same market during a particular month. A competing risks model was also investigated to discern the impact of these determinants on the likelihood of experiencing an upgrade to a superior product versus termination when a trade contract ends. Show Less -

Global and regional economic development continues to face uncertainties in 2012. East Asia and the Pacific region's growth is estimated to slow down compared to 2011,... Show More + but remains robust compared with other regions thanks to sustained domestic investment and consumption. Lao PDR continues to maintain robust growth this year but faces a challenge to manage domestic demand. On the supply side, the construction, services, industry and agriculture sectors are the main drivers of growth; while on the demand side, public spending and private investment including demand driven by preparations for the Asia-Europe Meeting (ASEM) has played an important role in boosting the economy this year. In spite of robust growth, inflation has been declining, mostly on account of declining food and fuel inflation. However, home-grown and external risks associated with low reserves coverage, increased exposure to mining revenues, fast banking expansion with limited supervision capacity and a large number of newly announced large investment projects warrant close monitoring to preserve macroeconomic stability and sustainable growth. Stronger than expected revenue performance from the mining sector and external grants contributed to an improvement in the fiscal performance in FY11/12.With the contribution of mining revenue increasing, closely monitoring commodity price fluctuations is becoming increasingly important. The fiscal deficit in FY12/13 is expected to slightly widen as a result of a planned wage increase. Strong pressure on external reserves calls for tightening of aggregate demand. Credit growth remains high and is putting pressure on falling reserves. Credit growth has picked up in June 2012 driven by increased credit to the private sector and SOEs. Private sector credit growth is driven by buoyant performance in construction, manufacturing and service sectors. The Bank of Lao PDR's disbursements to local infrastructure projects have moderated compared to their peak in 2009, but are ongoing as a result of previous commitments. Show Less -

In Lao People's Democratic Republic (PDR), poor sanitation and hygiene causes at least three million disease episodes and 6,000 premature deaths annually. Diarrheal... Show More + disease is, in fact, tied with pneumonia as the second largest killer of children under five. Poor sanitation also contributes significantly to water pollution, adding to the cost of accessing safe and clean drinking water. The consequences go even further. A recent study by the World Bank's Water and Sanitation Program (WSP) found that in 2006, the country lost an estimated LAK1.9 trillion (US$193 million) due to poor sanitation and hygiene, equivalent to 5.6 percent of Gross Domestic Product (GDP). Strengthening planning and accelerating progress in sanitation and hygiene could yield substantial benefits, not just for the economy but by prolonging life and improving the future for the people of Lao PDR. In Laos, very little information is available on how much money is being spent on sanitation and hygiene, by which entities, for what purposes, or in what locations. There is also little information on who benefits from this expenditure. This study aims to present an overview of the current status of sanitation and hygiene financing and to provide useful information and recommendations that can help strengthen planning and accelerate progress in sanitation and hygiene. This Research Brief summarizes the mains findings of the study in Lao PDR. Show Less -

The Second Nam Theun (NT2) hydroelectric project is an industrial and development investment owned by private shareholders and the Lao Government, backed by commercial... Show More + lenders and international financial institutions. The project is jointly implemented by the NT2 power company and the Government of Lao PDR and supported by financing from 27 parties including the World Bank and Asian Development Bank. The NT2 Power Company Limited (NTPC) will develop the project on a Build-Own-Operate-Transfer (BOOT) basis with a concession period of 31 years, of which the operating period is 25 years. The project will be transferred to the Government of Lao PDR free of charge at the end of the concession period. Show Less -

The Second Nam Theun (NT2) multipurpose development project is larger and more complex than any other hydropower project in Lao PDR. It is jointly implemented by the... Show More + NT2 Power Company (NTPC) and the Government of Lao PDR and financed by 27 parties, including the World Bank Group (WBG) and the Asian Development Bank. NT2 enables Lao PDR to export 1000 MW of electricity-generating capacity and electrical energy to the electricity generating authority of Thailand. The hydroelectric project also supplies 75 MW of electricity for domestic use in Lao PDR. The project is expected to generate annual revenues for the Government of Lao PDR averaging about US$30 million (nominal) per year during the first ten years while commercial debt service is paid, then rising sharply thereafter to an average of approximately US$110 million (nominal) from 2020 to 2034. Show Less -

This report describes labor practices in the Lao garments export sector as seen by both management and labor. The main objective of this report is to present the differing... Show More + perspectives on working conditions between managers and workers, and to explore ways in which the Lao garment sector could break out of this unsustainable situation. More specifically, insights on management practices, working conditions and worker motivation, as well as industry technology and workflow practices, are drawn from the survey and recommendations made on what firms, industry, government and development partners can do to boost productivity in the sector. This study seeks to investigate further possible factors contributing to low-productivity including management practices, working conditions and worker motivation, as well as industry technology and workflow practices. In order for the garment sector to progress, this study points to possibilities to increase worker wellbeing, reduce turnover and improve productivity through mutually reinforcing actions. Possible interventions include: a transition support program and improved labor market information systems to support labor force entry; better worker representation and dispute resolution mechanisms; and, a factories improvement program that would include monitoring/certification systems to provide incentives for firms to improve conditions as a means of accessing elusive premium buyers. Show Less -

With development soaring in construction, manufacturing, mining and services, Lao PDR's economic outlook in 2012 is positive. As the driving force behind the domestic... Show More + economy, these sectors are anticipated to drive a projected growth of 8.3 percent by year-end. To begin, higher wholesale and trading, tourism as well as transport and telecommunications will impact the service sector this year. A construction boom is also on the horizon supported by the preparation for the 9th Asia-Europe Meeting (ASEM) in Vientiane Capital. With this said, construction will support the manufacturing sector with the additional demand for cement and construction materials. Food and beverages will also expand in response to sustained domestic demand. Additionally, Phu Bia mining company's upgrade of existing copper and new gold and silver projects will generate more output from the mining sector. On the other hand, the power sector will contribute less in comparison to last year, despite the operation of Nam Ngum 5 hydropower project. In the mean time, agricultural output is expected to rebound after the adverse impacts of 2011's floods. Despite this robust growth, the medium-term outlook remains subject to uncertainty in external markets. In 2011, the National Assembly revised and approved the general tax law introducing public finance to a transparent, turnover based presumptive tax regime for businesses with a turnover below the Value-Added Tax (VAT) registration threshold. In effect, this law eliminated minimum business tax. Finally, the implementation of the 'one-stop' service (as stipulated on the enterprise law and the new investment promotion law) commenced in October 2011. Show Less -

This is report 19 of the International Environmental Panel of Experts (POE or the Panel) for the Second Nam Theun (NT2) Multipurpose Project in the Lao People's Democratic... Show More + Republic. The panel derives its mandate from the concession agreement. This is a 600 page legal documents which assign the POE a contractual responsibility to provide independent review of, and guidance on, the treatment of environmental and social issues associated with the project, along with some executive functions, and after the implementation period of nine years or more, to determine whether the project's environmental and social goals have been met. The POE remains a standing body for the period of the concession. The POE submits its findings to the Government of Laos (GOL) Minister of Energy and Mines and to Deputy Prime Minister addresses recommendations to the GOL, Nam Theun Power Company (NTPC) and the International Financial Institutions (IFIs), and is required to assess the extent to which NT2 meets the requirements of the safeguard policies of the World Bank and the Asian Development Bank (ADB) on such issues as the environment, indigenous peoples and resettlement with development. The Panel may engage consultants to help with its work and has done so for the first time in this instance. The time is approaching when the POE will be required to begin the process of addressing the requirement in the Concession Agreement (CA) to undertake a final evaluation of the Nakai resettlement process. The agreement calls for the POE to review the activities performed during the Resettlement Implementation Period (RIP), determine whether the resettlement objectives and the resettlement provisions in the CA have been achieved and provide advice on this to the resettlement committee. Show Less -