The World Bank Group Board adopts a new Country Partnership Framework to support Laos in efforts to stabilise its economy.

World Bank Group adopts new Country Partnership Framework for Laos

The World Bank Group Board of Executive Directors has discussed a new Country Partnership Framework (CPF) for 2023-2026 to support Laos in efforts to stabilise its economy, share the benefits of economic growth more equitably, and sustain development progress. 
The CPF, a programme of project finance and advice, builds on over 60 years of strong partnership between the Lao PDR and the World Bank Group, according to a recent World Bank report.
“It [the CPF] lays out key areas for work by the World Bank Group which include supporting vulnerable households and sustainable livelihoods and promoting inclusive access to nutrition and health services, in particular for women and children,” the World Bank stated.
The CPF was prepared by the World Bank Group in consultation with the Government of Laos, civil society, the private sector, and development partners. It is aligned with the poverty reduction strategies contained in the Lao PDR 9th National Socio-Economic Development Plan (NSEDP) for 2021–2025.
As of June 30, 2022, the World Bank is financing a portfolio of 24 operations in Laos for a total committed amount of US$903 million. 
“Through the new framework, our programme for the next four years is designed to support efforts to meet the basic needs of the poor, prioritise jobs and health, in particular the fight against stunting; and help the country adapt to climate change,” said Alex Kremer, World Bank Country Manager for Laos.
The Country Partnership Framework notes Laos is encountering significant macroeconomic and public debt challenges. While significant development progress has been accomplished, several challenges have become more prominent since 2017 and amplified by the COVID-19 pandemic.
The current growth model is showing its limitations, particularly through its inability to support job creation. High public debt levels are fueling macroeconomic instability and threatening development prospects.
The World Bank recommended that a more dynamic and competitive private sector will be crucial to generating more jobs in the country.
“A key focus of the new partnership framework is an intensive programme of technical advice on macroeconomic and debt-related policies, so that public resources are available for health, education, and social protection. The programme also looks to support better management of natural resources,” said the World Bank. “With public debt at critical levels, it is vital for the government to foster a conducive business-enabling environment so the private sector can grow, create jobs, and boost people’s incomes,” said Thomas Jacobs, IFC County Manager for the Mekong region, covering Vietnam, Cambodia and Laos.
The regional context plays a key role in shaping opportunities for trade, investment and migration. Laos needs to maximise the potential offered in the country to boost trade. Thailand, China and Vietnam are the largest destination markets, mainly receiving commodity exports.

By Times Reporters
 (Latest Update January 30, 2023)