LAO/033
Strengthening the Effectiveness of Official Development Assistance (ODA) Management in LAO PDR

Lao PDR aims to graduate from Least Developed Country (LDC) status by 2020. At the same time, progress will be made towards meeting the Sustainable Development Goals (SDGs). Implementation of the SDGs is embedded in the country’s National Socio-Economic Development Plan (NSEDP) which reflects the three dimensions of sustainable development: economic, social and environmental. A recent mid-term review of the NSEDP shows that the graduation process will have a slowing effect on the level of ODA financing in the country. Furthermore, traditional ODA will decline even without LDC graduation as the country’s income continues to grow. Therefore, there will be increasing pressure to adapt to this new reality and use ODA resources effectively.

LAO/033 is a capacity strengthening project that aims to address ODA management needs of the Ministry of Planning and Investment’s Department of International Cooperation (DIC) and six provincial Sections for International Cooperation (SICs). The project will also provide capacity strengthening for the Department of Inspection (DOI) at MPI, particularly in relation to anti-corruption measures as well as the SDG Secretariat housed in the Ministry of Foreign Affairs.

The project’s overall objective is that ODA effectively supports implementation of NSEDP whilst the specific objective is that key Lao agencies can effectively manage and coordinate ODA.

The project focuses on two results:

• DIC has the capacity to effectively manage and coordinate ODA through provincial SICs and line ministries and report timely on ODA; and
• the cross-cutting issues reflected in SDGs are appropriately taken into account in ODA interventions and support NSEDP.