Caption: NZAID continues to support the Nam Ha eco tourism project as part of its ongoing commitment to improving rural livelihoods in Lao PDR.

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Lao People's Democratic Republic

2008/2009 Allocation | $3.4 million

Snapshot

Lao PDR is a landlocked country in South East Asia, bordering Myanmar, Cambodia, Thailand and Viet Nam. Although Lao has many natural resources, including timber and water for hydropower, its level of poverty is very high. In the 2005 Human Development Index Lao PDR is ranked 133 out of 177 nations.

Lao's population of more than five million people is made up of people from 49 different ethnic groups. Over 80 percent of the population live in the rural and mountainous areas and rely on subsistence farming. The history of warfare in the country from 1964 to 1975 has left around 30 percent of the 580,000 aerial bombs dropped in the country, affecting 15 of Lao's 19 provinces. This has significantly affected Lao's rural development.

In 2003, the Lao Government devised a National Growth and Poverty Eradication Strategy (NGPES). The strategy focuses on poverty eradication through human resource development, rural development and people's participation.

NZAID priorities

NZAID's priorities for Lao PDR are guided by the agency's poverty elimination framework and the recently developed strategy for Lao PDR, as well as those priorities identified by the Lao NGPES. The three main sectors of focus include sustainable rural livelihoods, humanitarian assistance, and human resource development.

NZAID on the ground

Partnership & harmonisation and aid effectiveness process

NZAID is working in partnership with World Bank in supporting to the implementation of the Lao PDR Aid Effectiveness Agenda . NZAID also participates in the "Informal Donor" meetings. NZAID together with 22 other partners signed the Vientiane Declaration on Aid Effectiveness with the Government of Lao in late November 2006.

NZAID is also supporting a Human Rights-Based Approaches programme as part of the aid effectiveness process.

Pro-poor Tourism

NZAID continues to support the Nam Ha Eco-tourism Project. The project is implemented by the Lao National Tourism Administration (LNTA) and UNESCO. It aims to strengthen the institutionalisation, improvement and expansion of the existing Community Based Eco-tourism model in Luang Namtha. The project is also working in cooperation with the private sector, tour operators and other internationally supported eco-tourism initiatives.

New initiative on the Eco-tourism Support Programme with the LNTA has been established. The LNTA have requested NZAID assistance in the implementation of their National Tourism Strategy. The scoping assignment was conducted by the NZ mission team in late 2006.

Natural Resource Management

NZAID has recently entered into a four year agreement with LNTA and UNESCO to support a sustainable livelihoods programme through the UXO Clearance, pro-poor tourism and sustainable heritage resource management in the Plain of Jars in Xieng Khouang Province. Through the World Wildlife Fund (WWF), NZAID supports sustainable rural livelihoods by strengthening co-management of aquatic resources and by promoting the role of aquatic ecosystem services in rural development planning in the Lower Mekong Basin. This is the final year of NZAID's support to this project.

Human resource development

NZAID provides ongoing support to human resource development in Lao PDR through the English Language Training for Officials (ELTO) Programme. The ELTO programme brings Lao officials to New Zealand to undertake English language training.

Further support on the New Zealand Development Scholarship (NZDS) Programme is also provided to Lao officials and open candidates. The NZDS programme brings selected Lao candidates to undertake postgraduate study in New Zealand. Currently seven students are studying in New Zealand.

Lao PDR also benefits from other regional training programmes supported by NZAID such as training programmes for middle management at the Mekong Institute and the Phnom Penh Plan for Management.

Rural livelihood development

NZAID also provides small scale rural livelihood development projects through the Head of Mission Funds and the Small Project Funds managed by the Post. These funds aim to enhance living standards and human resource development of the poor and in particular vulnerable groups through equitable and sustainable social and economic development.