Ms Sara Sekkenes speaks to Lao National TV and Vientiane Times during the 5th Least Developed Countries conference in Doha, Qatar.

Outlook for Laos’ development remains optimistic: UN official

Doha and Vientiane: A senior official from the United Nations in Laos has reaffirmed the agency’s continuing support for Laos’ aspiration for smooth and sustainable graduation from the UN’s list of Least Developed Countries (LDCs).
“Laos’ clear and consistent aspiration to progress beyond the category of least developed country status, despite the challenges we are facing, has been one of the highlights of the conference, and something that we stand fully committed to support,” the United Nations (UN) Resident Coordinator to Laos, Ms Sara Sekkenes, told Lao media on March 8.
Ms Sekkenes gave an interview to Lao National TV and Vientiane Times during the 5th Least Developed Countries conference, which took the theme “From Potential to Prosperity”, in Doha, Qatar, from March 5 to 9.
The United Nations is working closely with the Lao government and other partners to prepare a strategy to secure a smooth, sustainable and irreversible transition from least developed country status and beyond graduation, Ms Sekkenes said.
When asked about the likely effects of graduation from LDC status, Ms Sekkenes said she was optimistic, adding that the benefits can far outweigh the phased withdrawal of LDC-specific international support.
In addition, thanks to its strategic geographical location within dynamic and fast-growing economies in the Asia and Pacific region, Laos can benefit from this dynamism and has various opportunities to leverage its comparative advantages and become a more attractive destination for investments and partners in trade, she added.
Ms Sekkenes said Laos’ development context has improved enormously since 1975 with significant economic development in its efforts to achieve graduation enabling critical poverty reduction, and longer and better lives, adding that the country was declared to be eligible for graduation with an extended preparatory period to 2026 due to the COVID-19 pandemic.
Given the multiple financial and economic challenges currently threatening to negatively impact Laos’ development, it is crucial for the Lao government, development partners and relevant stakeholders to actively work together to safeguard and further advance past achievements, she added.
“This would create a strong foundation for the country’s smooth, sustainable and irreversible graduation from LDC status and provide a stepping-stone for further advancements,” she said.
Laos suffered severe socio-economic impacts from the COVID-19 pandemic from 2020 to 2022. The lingering consequences of the pandemic have caused an on-going food, fuel and financial crisis.
This led to the justification for an extended preparatory period for Laos, Nepal and Bangladesh to graduate from LDC status, which has been postponed until 2026.
At present, Laos is saddled with high public debt, and limited fiscal space, with inflation soaring above 30 percent in February. 
To address these challenges, Laos still requires continuing financial and technical support from the international community to address development issues including inclusive prosperity, financing for development, human capital development, economic structural transformation and diversification, productivity improvement, widening access to international markets, and climate action, Ms Sekkenes said.

By Ekaphone Phouthonesy
 (Latest Update March 14, 2023)