Lao government, development partners validate Financing Strategy for 9th NSEDP

The Lao government and development partners yesterday held consultations on improving the final draft of the Financing Strategy for the 9th National Socio-Economic Development Plan (NSEDP) 2021-25.

Ms Phonevanh Outhavong (right) and Ms Sara Sekkenes chair a meeting in Vientiane on the final draft of the Financing Strategy for the 9th NSEDP.

The Financing Strategy will develop and manage the financial system in Laos and also strengthen the implementation of the NSEDP to achieve higher effectivity. The Financing Strategy is expected to be endorsed by the end of this year.
The consultation meeting was chaired by the Deputy Minister for Planning and Investment, Ms Phonevanh Outhavong, and the UN Resident Coordinator in Laos, Ms Sara Sekkenes.
The participants give their recommendations and impressions on financial solutions, ways to strengthen financial management under the laws, and improving the financial index in relation to national growth and development.
The important issues are the exchange rate, inflation, assistance related to the high price of goods, and fuel supply for impact reduction, Ms Phonesavanh said.
After nearly two years of technical work and broad-based consultations, the meeting saw the presentation of policy objectives, actions and implementation arrangements as agreed among 10 ministries and 20 national institutions to address Laos’s financing constraints and to increase investments needed to achieve the national development priorities set out in the 9th NSEDP, she said.
Ms Phonesavanh said that the implementation is being led by the Ministry of Planning and Investment, while the dialogue was attended by representatives of the Lao government, notably departments involved in policy formulation, including the Bank of Lao PDR, the Ministries of Finance, Industry and Commerce, Environment and Natural Resources, Energy and Mines, Agriculture and Forestry, Education and Sports, of Health, and Foreign Affairs, as well as embassies, bilateral and multilateral development agencies, the private sector, the INGO network, and the UN country team.
“The draft Financing Strategy is well aligned with the government’s directions for quality, focused, green and sustainable growth. We appreciate the partnership with the UN and all relevant sectors and development partners in a collaborative effort to help identify, understand and improve the flow of resources towards financing our national development priorities contained in the 9th NSEDP, including through measures instrumental to supporting the re-orientation of investments towards more sustainable development in line with the national plan,” she said.
“This is of significance considering the limited development finance, economic difficulties, and additional investments required to address our national agenda as we transition towards graduating from the Least Developed Country status in the near future,” she added. Ms Sekkenes emphasised the necessity to invest in human capital and greener growth, but noted that there are two challenges that cannot afford to wait.
The first is safeguarding investments in human capital and the second is countering the “existential threat of more global dimensions: the triple planetary crisis of climate change, nature loss, and pollution”, she said.
She added that courageous decisions may limit economic returns in the short run but yield sustainable long-term growth to the benefit of future generations.
The Financing Strategy’s formulation was led by the Ministry of Planning and Investment, with technical assistance coordinated by the UN Resident Coordinator’s Office, including from the UN Joint Programme on Financing Efficiency. It was funded by the Joint SDG Fund, implemented jointly by UNDP, UNCDF, and UNFPA, and with additional contributions from UNDESA, UNEP, UNICEF, UNODC, WHO, the World Bank, GGGI, Australia, Japan, EU, ADB, and JICA.
While preparing for the 2022 Round Table Meeting, expected to be held in November, the dialogue allowed development partners to share their views and potential support for the Financing Strategy’s 54 policies and actions, and to cement partnerships for its successful implementation.

By Times Reporters
(Latest Update September 29, 2022)