lao pdr: fao country programming framework for lao pdr … · 2018. 1. 11. · 2.4 governance...
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FAO COUNTRY PROGRAMMING FRAMEWORK
FOR LAO PDR 2013-2015
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
MINSTRY OF AGRICULTURE AND FORESTRY, GOVERNMENT OF LAO PDR
December 2013
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TABLE OF CONTENTS
Page
Foreword v
Abbreviations and Acronyms vi
Executive Summary x
1. INTRODUCTION
1
PART I: NATIONAL CONTEXT
2
2. SITUATION ANALYSIS 2
2.1 Introduction 2 2.2 Situation and Outlook 6 2.3 Government Policies and National Priorities 10 2.4 Governance System 11
3. DEVELOPMENT CONSTRAINTS AND GAPS
13 3.1 Sectoral Issues 13
3.1.1 Low Agricultural Productivity 13 3.1.2 Weak Implementation Capacity 13 3.1.3 Inadequate Information Flows 14 3.1.4 Constraints on Agricultural Trade 15 3.1.5 Potential for Organic Agriculture 17 3.1.6 Potential for Green Value Chains 18 3.1.7 Challenges in Natural Resource Management 18 3.1.8 Concerns regarding Concession Agriculture 20
3.2 Cross-Sectoral Issues 21 3.2.1 Food Insecurity 21 3.2.2 Low Food Safety Standards 22 3.2.3 Gender Inequities 23 3.2.4 Unemployment, Underemployment and Poverty 23 3.2.5 Risk and Vulnerability 24 3.2.6 Climate Change 24
3.3 Conclusions
25
PART 11: PROGRAMMING FOR RESULTS 25
4. FAO IN LAO PDR 25
4.1 A Brief Overview of FAO in Lao PDR 26
4.2 Coherence with United National Development Assistance Framework
(UNDAF) 27
5. CPF PRIORITY AREAS
28
5.1 CPF Priority Area 1: Improved food and nutritional security through
enhanced policy, planning and implementation 28
5.2 CPF Priority Area 2: Environmentally sustainable production for the market 29
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by small farmers using value chain approach
5.3 CPF Priority Area 3: Sustainable natural resource management for crops,
forests, fisheries and livestock
31
5.4 CPF Priority Area 4: Reduced risk and vulnerability to natural and other
disasters through prevention, preparedness, response and recovery
32
6. PRIORITY OUTCOMES AND OUTPUTS 34
6.1 PRIORITY OUTCOME 1 Effective policy instruments and mechanisms for
attaining national food and nutrition security goals are designed and deployed
34
6.1.1 Priority Output 1.1 A national food and nutrition security strategy,
policy, investment plan and its governance framework developed
34
6.1.2 Priority Output 1.2 M&E system for MAF developed in support of
effective monitoring and implementation of projects strengthened
6.1.3 Priority Output 1.3 Enhanced institutional and government staff
capacity for the design and use of the Integrated Food Security Phase
Classification (IPC) for better planning and response with FNS-related
interventions
6.1.4 Priority Output 1.4 Strengthened institutional and staff capacity to
analyse and produce quality and timely FNS statistics in support of better
informed policies and actions
6.1.5 Priority Output 1.5 Support to small-scale, gender-sensitive food
security and livelihood-oriented agricultural programmes for vulnerable
farm households through distribution of inputs, transfer of technologies and
best practices, including traditional knowledge
36
36
37
38
6.2 PRIORITY OUTCOME 2. Strengthened enabling regulatory and
institutional environment for improved access of smallholder farmers to
agricultural markets
39
6.2.1 Priority Output 2. 1 SPS-related legal framework further developed in
compliance with international standards
39
6.2.2 Priority Output 2.2 Improved inspection and testing regime at all
points of AVC to meet Codex standards
40
6.2.3 Priority Output 2.3 Strengthened institutional and technical capacity
in the control and management of FMD and other TAD
41
6.2.4 Priority Output 2.4 Strengthened legal and regulatory framework for
agricultural inputs to promote organic agriculture and GAP
43
6.2.5 Priority Output 2.5 Farmers trained to produce GAP/IPM-certified
agricultural products and farmer-market linkages developed
43
6.2.6 Priority Output 2.6 Institutional and individual capacities of AVC
actors (public, private groups, farmer groups) enhanced in the adoption of
sustainable and innovative approaches and practices to support the greening
of selected AVC, including post-harvest handling and processing, market
linkages and logistics
44
6.3 PRIORITY OUTCOME 3. Strengthened governance – policies, laws,
strategies and community participation for sustainable management of land,
forestry, and fisheries and aquaculture resources
45
6.3.1 Priority Output 3.1 Concession agriculture rationalized within a
general land tenure policy framework and regulations
45
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6.3.2 Priority Output 3.2 Capacity for participatory land and other natural
resources management at the local level improved through promotion and
use of field-tested, gender-sensitive, participatory development tools and
approaches
46
6.3.3 Priority Output 3.3 Enhanced ability of communities and the
government stakeholders for inclusive community- based forest
management
47
6.3.4 Priority Output 3.4 Enhanced capacity of communities, local and
central administration in design, prioritization and implementation of
climate change adaptation and disaster management measures in targeted
wetlands
6.3.5 Priority Output 3.5 An implementation strategy for capture fisheries
and aquaculture developed
49
52
6.4 PRIORITY OUTCOME 4. Enhanced capacity of government and
communities to adapt to and mitigate climate change and reduce natural
disaster vulnerabilities related to agriculture, forestry and fisheries
52
6.4.1 Priority Output 4.1 Enhanced capacity of relevant stakeholders to
mainstream DRRM approaches into specific sectoral (agriculture, forestry,
fisheries) and cross-sectoral (nutrition, food security, food safety) plans,
policies and legal frameworks
52
6.4.2 Priority Output 4.2 Developed institutional and technical staff
capacity at national, provincial and district levels for agroclimatic
monitoring, analysing and disseminating information related to climate
variability and its impact on the agriculture sector
53
6.4.3 Priority Output 4.3 Enhanced capacity of communities in the
identification, use and dissemination of location- specific and gender-
sensitive DRRM practices and technologies in the area of agriculture,
aquaculture, fisheries, animal husbandry and NTFPs (through FFS and
enhanced research-extension-farmer interaction)
55
6.4.4 Priority Output 4.4 Enhanced institutional and technical capacity to
effectively and accountably manage food security and agriculture crises –
from disaster preparedness through emergency response to post-recovery
56
PART III: IMPLEMENTATION AND RESOURCE MOBILIZATION 60
7. IMPLEMENTATION ARRANGEMENTS 60
71. Implementation principles 60
7.2 Implementation mechanism 60
7.3 Short-term implementation plan 60
7.4 Funding modalities
61
8. PARTNERSHIPS 62
9. MONITORING, EVALUATION AND REPORTING ARRANGEMENTS
62
REFERENCES
65
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LIST OF TABLES
Table Page
1 Global Hunger Index in ASEAN Countries, 1990-2012 (ranked by 2012 GHI)
5
2 Priority Areas and Priority Outcomes of the CPF 34
3 Priority Areas, Priority Outcomes and Priority Outputs of the Country Programming Framework
58
4 UN Partner Agencies for UNDAF and the CPF 63
LIST OF BOXES
Box Page 1 FAO’s Reviewed Strategic Objectives, 2009-2019 26
2 FAO’s Priorities for the Asia-Pacific Region, 2010-2019 26
LIST OF ANNEXES
Annex Page
1 Review of Major Programmes, Laws and Policies in FAO-Mandated Areas in Lao PDR
72
2 Distribution of Government Expenditure across its Four Priority Sectors 83
3 Past and Ongoing Activities of FAO in Lao PDR 84
4 The CPF Priority Matrix 95
5 Country-Level Comparative Advantages of FAO and Other Development Partners
97
6 Relationship between FAO Strategic Objectives/Organizational Outcomes and the Priority Outcomes of the CPF for Lao PDR
104
7 The CPF Results Matrix 106
8 The CPF Action Plan 114
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FOREWORD
The Government of Lao PDR (GOL) and the Food and Agriculture Organization of the United
Nations (FAO), represented by its Representative in Lao PDR (FAOR), are pleased to jointly launch
the FAO Country Programming Framework (CPF) for Lao PDR for the period 2013-2015, as
stipulated hereunder.
The CPF 2013-2015 is the result of extensive consultations held with a wide range of stakeholders
and partners within the country as well as with the relevant technical units of FAO Headquarters in
Rome and the Regional Office for Asia and the Pacific (FAO-RAP) in Bangkok. The signatories
below express sincere appreciation to all those who made constructive comments and suggestions
throughout the consultative process.
This document, co-owned by the GOL and FAO, presents the broad commitment of FAO, subject to
the availability of the required funding, to assist the GOL in its efforts to achieve development
objectives articulated in recent strategy and national policy frameworks for agriculture. It also
complements and contributes to the strategic objectives of the UN common system as expressed in the
current UN Development Assistance Framework (UNDAF) for Lao PDR.
By endorsing the CPF, the GOL is committed to providing collaboration, to the fullest possible extent
with regard to available capacity and resources, to facilitate the achievement of the objectives and
actions proposed in this document.
The implementation of the CPF will be pursued in partnerships as broad as possible and in alignment
with the joint efforts of the GOL and its development partners for enhanced coordination and aid
effectiveness. The GOL and FAO look forward to seeking collaboration and support from concerned
partners vis-à-vis the successful implementation of the CPF 2013-2015.
For the Government of the People’s
Democratic Republic of Laos
For the Food and Agriculture Organization
of the United Nations
Name:
Title:
Name:
Title:
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ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
ADS Agricultural Development Strategy
AEC ASEAN Economic Community
AFD Agence Française de Développment
AFTA ASEAN Free Trade Area
AIP Agricultural Investment Plan
AMP Agricultural Master Plan
AMS Agro-Meteorology System
ANR Assisted Natural Regeneration
ASEAN Association of Southeast Asian Nations
AU$ Australian dollars
AusAID Australian Agency for International Development
AVC Agricultural Value Chain
CA Conservation Agriculture
CBED Community-Based Enterprise Development
CC Climate Change
CPF Country Programming Framework
CSO Civil Society Organization
CU2 Children Under Two Years Old
CU5 Children Under Five Years Old
CFS Committee on World Food Security
DAEC Department of Agricultural Extension and Cooperatives (MAF)
DAFO District Agriculture and Forestry Office
DEC Dietary Energy Consumption
DMH Department of Hydrology and Meteorology
DLF Department of Livestock and Fisheries (MAF)
DoA Department of Agriculture (MAF)
DoF Department of Forestry (MAF)
DoI Department of Irrigation (MAF)
DoPC Department of Planning and Cooperation (MAF)
DRM Disaster Risk Management
DRR Disaster Risk Reduction
DRRM Disaster Risk Reduction Management
EC European Commission
EFA Essential Fatty Acid
FAO Food and Agriculture Organization of the United Nations
FAO-RAP FAO Regional Office for Asia and the Pacific
FAOSTAT FAO Statistical Database
FAOR FAO Representative
FBS Food Balance Sheet
FDI Foreign Direct Investment
FFS Farmers’ Field School
FIM Forest Information Management
FIVIMS Food Insecurity and Vulnerability Information and Mapping System
FLEGT Forest Law Enforcement Governance and Trade
FMD Foot-and-Mouth Disease
FMM FAO Multi-Partner Programme Support Mechanism
FMU Forest Management Unit
FNS Food and Nutritional Security
FS2020 Forestry Strategy 2020
FSCAP Forest Sector Capacity Development Project
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ABBREVIATIONS AND ACRONYMS
GAP Good Agricultural Practice
GCCA Global Climate Change Alliance Programme
GDG Gender Development Group
GEF Global Environment Facility
GDP Gross Domestic Product
GHI Global Hunger Index
GIS Geographical Information Systems
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for
International Cooperation)
GMP Good Manufacturing Practice
GMS Greater Mekong Subregion
GOL Government of Lao PDR
GPO Good Practice Options
Ha hectare(s)
HACCP Hazard Analysis Critical Control Point
HPAI Highly Pathogenic Avian Influenza
IADGs Internationally Agreed Development Goals
IBRD International Bank for Reconstruction and Development
IBSA India Brazil and South Africa Trust Fund
IFAD International Fund for Agriculture Development
IGETI Integrating Gender Equity in Territorial Issues
ILO International Labour Organization
IOM International Organization for Migration
IPC Integrated Food Security Phase Classification
IPPC International Plant Protection Convention
IPM Integrated Pest Management
IRRI International Rice Research Institute
ITC International Trade Centre
IUCN International Union for the Conservation of Nature
JFPR Japan Fund for Poverty Reduction
JICA Japan International Cooperation Agency
JSDF Japan Social Development Fund
LECS4 Lao Expenditure and Consumption Survey IV
LFAP Land and Forest Allocation Programme
LFNR Lao Front for National Reconstruction
LIPS Livelihood Improvement Project for Southern Mountainous Area
LPRP Lao People’s Revolutionary Party
LSIS Lao Social Indicatory Survey
M&E Monitoring and Evaluation
MA&D Market Analysis and Development
MAF Ministry of Agriculture and Forestry
MEA Multilateral Environmental Agreements
MEM Ministry of Energy and Mines
MDG Millennium Development Goal
MDG1 First Millennium Development Goal
MICS Multiple Indicator Cluster Surveys
MIS Management Information System
MLSW Ministry of Labour and Social Welfare
MOE Ministry of Education
MOH Ministry of Health
MOHA Ministry of Home Affairs
MOIC Ministry of Industry and Commerce
MOJ Ministry of Justice
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ABBREVIATIONS AND ACRONYMS
MONRE Ministry of Natural Resources and Environment
MPI Ministry of Planning and Investment
MPWT Ministry of Public Works and Transport
MRC Mekong River Commission
MT Metric tonne
NABP National Agricultural Biodiversity Programme
NACA Network of Aquaculture Centres in Asia-Pacific
NAFES National Agriculture and Forestry Extension Service
NAFRI National Agriculture and Forestry Research Institute
NAPA National Adaptation Programme of Action to Climate Change
NBS/AP National Biodiversity Strategy to 2020 and Action Plan to 2010
NCAW National Commission for the Advancement of Women
NCRDPE National Committee for Rural Development and Poverty Eradication
NCSA National Capacity Self-Assessment
NHS National Household Survey
NDMC National Disaster Management Committee
NDMO National Disaster Management Office
NGO Non-Governmental Organization
NGPES National Growth and Poverty Eradication Strategy
NLMA National Land Management Authority
NMTPF National Medium-term Priority Framework
NNC National Nutrition Commission
NNP National Nutrition Policy
NNS/PoA National Nutrition Strategy and Plan of Action
NPA Non-Profit Association
NRM Natural Resource Management
NSEDP National Socio-Economic Development Plan
NTFP Non-Timber Forest products
NUDP Northern Uplands Development Programme
NUOL National University of Laos
OA Organic Agriculture
ODA Overseas Development Assistance
OHCHR Office of the United Nations High Commissioner for Human Rights
PAREDD Participatory Land and Forest Management Project for Reducing Deforestation
PAFO Provincial Agriculture and Forestry Office
PDR People’s Democratic Republic
PM Prime Minister’s Instruction
PNTD Participatory Negotiated Territorial Development
POP Persistent organic pollutant
PoWPA Programme of Work on Protected Areas
PROFIL Promotion of Organic Farming in Lao PDR
PROSA Programme Sectoriel en Agroécologie (an AFD assistance project)
PRRS Porcine reproductive and respiratory syndrome
REDD+ Reducing Emissions from Deforestation and forest Degradation
RVS Risk and Vulnerability Survey
SCC Strategy on Climate Change of the Lao PDR
SD Strategic Direction
SDC Swiss Agency for Development and Cooperation
SDNSS Strategy for the Development of the National Statistical System
SEAHMI Subregional environmental animal health management initiative for enhances
smallholder production in Southeast Asia
SME Small and Medium Enterprise
SNV Netherlands Development Organization
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ABBREVIATIONS AND ACRONYMS
SO Strategic Objective
SPS Sanitary and Phytosanitary
SUN Scaling-up Nutrition
SuNPAM Sustainable Management of National Protected Area Project
TAD Trans-boundary animal disease
TCP Technical Cooperation Programmes
TDF-1 Trade Development Facility Phase 1
TWG Technical Working Group
UNCTAD United Nations Conference on Trade and Development
UNDAF United Nations Development Assistance Framework
UNDP United Nations Development Programme
UDIN Integrated Upland Development in Nonghet
UN-AIDS Joint United Nations Programme on HIV/AIDS
UNCDF United Nations Capital Development Fund
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNFCCC United Nations Framework Convention on Climate Change
UNFPA United Nations Population Fund
UN-Habitat United Nations Human Settlements Programme
UNICEF United Nations Children’s Fund
UNICRI United Nations Office on Drugs and Crime
UNIDO United Nations Industrial Development Organization
UNISDR United Nations International Strategy for Disaster Reduction
UNODC United Nations Office on Drugs and Crime
UNV United Nations Volunteers
USAID United States Agency for International Development.
USD United States Dollars
UXO Unexploded Ordnance
VG Voluntary Guidelines
WATSAN Water and Sanitation
WB World Bank
WFP World Food Programme
WFS World Food Summit
WHO World Health Organization
WREA Water Resource and Environment Administration
WTO World Trade Organization
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EXECUTIVE SUMMARY
The Country Programming Framework (CPF) is the tool used by the Food and Agriculture
Organization of the United Nations (FAO) to define its medium-term response to the assistance needs
of member countries in pursuit of national development objectives that are consistent with the FAO
Strategic Framework and Regional Priorities, the Millennium Development Goals (MDGs) and other
Internationally Agreed Development Goals (IADGs) and strategic objectives of the United Nations
Development Assistance Framework (UNDAF). It replaces the National Medium-term Priority
Framework (NMTPF) as the FAO planning instrument. The CPF for the Lao People’s Democratic
Republic (Lao PDR) outlines the joint Government of Lao PDR (GOL) and FAO medium-term
priorities for FAO’s technical assistance over the period 2013-2015. It was formulated by a joint
national and international team through a process of literature review, semi-structured interviews with
key resource persons from GOL, FAO, other UN agencies, other development partners and civil
society. Successive drafts of the document have benefited from the comments of GOL and FAO’s
national, regional and headquarters offices.
The CPF begins with a situation analysis, which first examines key features and trends of the
economy, outlining a considerable degree of success on both economic and social fronts, including
impressive economic growth and progress on poverty reduction; the country is assessed as being
“well on track” or having “already achieved this target” to meet the MDG on poverty (UNDP, 2013).
However, on the negative side, high levels of poverty reduction have not translated into significant
reductions in the country’s seriously high levels of food insecurity and undernutrition, and Lao PDR
is assessed as being “seriously off track” in terms of meeting the MDG on hunger. Most diets are
seriously deficient in micronutrients, while intake of macronutrients is unbalanced because dietary
energy consumption is dominated by rice, while protein intake is below requirements and
consumption of fats and edible oils is seriously deficient. Moreover, impressive aggregate
performance in the area of poverty reduction disguises serious and growing income inequality,
particularly in terms of gender, ethnicity and location. Meanwhile, MDG targets on reversing
environmental loss and reducing the rate of biodiversity loss are also assessed as being “seriously off
track”.
Agriculture dominates the economy, and while the agricultural growth rate is higher than that of the
population, this is largely explained by rapid expansion of concession agriculture which includes
industrial tree plantations such as rubber and eucalyptus. Eighty percent of farmers are still
subsistence producers, and their production is dominated by rice. Rice has been an important success
story in Lao PDR, with rapid growth transforming the country from a net importer to a significant
exporter during the past two decades. However, other developments have had negative consequences
for dietary balance. Concession agriculture has denied local populations access to traditional sources
of income and nutrient-rich foods from communally owned resources, particularly forests. Similar
concerns have been expressed regarding the effect of water diversion projects on the aquatic
environment, even though large-scale hydropower dam construction is subject to environmental
impact assessments. The horticulture, livestock and fisheries subsectors all suffer from low
productivity. Some vegetables are grown under irrigation, but most available water is used for rice. In
aquaculture there are problems such as lack of access to high quality fish feed and fingerlings outside
of the most accessible areas. Veterinary provision is low, animal disease outbreaks are common,
animal mortality rates are high and feed provision is problematic.
The GOL has adopted a wide range of policies at the national, sectoral, subsectoral and cross-sectoral
levels in response to these challenges. The country’s overarching development goals are to reduce
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poverty, achieve growth with equity and meet the MDGs, with the aim of graduating from the “Least
Developed” category of countries by 2020. Key challenges recognized in the current five-year 7th
National Socio-Economic Development Plan (2011-2015) include the need for a “more visible shift”
of employment from farm to non-farm sectors, addressing environmental issues and mitigating the
impact of climate change. One of the seven “directions” of the Plan addresses rural development and
poverty eradication, the aim being to reduce income inequalities between rural and urban areas,
between geographical areas and between rich and poor. In 2011 the Ministry of Agriculture and
Forestry (MAF) adopted a Strategy for Agricultural Development to 2020. This lays out four
developmental goals, namely: (i) improvement of livelihoods through agriculture and livestock, with
food security as its first priority; (ii) increased and modernized production of agricultural commodities
and “pro-poor green value chains” based on smallholders’ organizations and partnering with the
private sector; (iii) sustainable production patterns, including stabilization of shifting cultivation and
climate change adaptation measures adapted to local agro-ecological conditions; and (iv) sustainable
forest management to preserve biodiversity and significantly increase forest cover to benefit rural
communities and public and private processing enterprises.
A wide array of constraints and gaps hinder poverty reduction and the attainment of food and
nutritional security in Lao PDR. At the level of food availability a key constraint is low agricultural
productivity. One of the reasons this persists is that, while the country is rich in policies, it is
unusually weak in terms of policy implementation capacity, with a seriously under-resourced
extension system, an underdeveloped private sector, and weak civil society. Another factor
constraining efforts to address outstanding problems is that agricultural information systems are at
best nascent. A corollary of subsistence orientation is that agricultural trade is underdeveloped, and
the country is poorly placed to meet the challenges of either competing with imported produce from
neighbouring countries, or meeting the increasingly high quality (including food safety) standards
demanded by importing countries. The country has comparative advantage in a number of areas, such
as organic agriculture, but lack of technical and knowledge capacity constrains its ability to capitalize
on this by meeting the necessary standards. Natural resource management and governance is a huge
problem area, with serious issues in such areas as deforestation, forest degradation, aquatic resource
degradation and loss of biodiversity. The policy of giving out agricultural concessions to foreign
direct investment (FDI) has boosted agricultural exports, but has also added greatly to problems of
land and forest depletion and degradation and land-related conflicts. At the social level, gender
inequality is rife and unemployment – particularly youth unemployment – is growing. All of these
challenges are exacerbated by the fact that Lao PDR is very vulnerable to disasters, including weather
events such as typhoons, flooding and droughts, rodent and pest attacks, and animal disease
epidemics. Weather-related risks pose the most widespread problems and the frequency and intensity
of these problems is likely to increase as a consequence of climate change.
FAO has a global and regional mandate to address issues such as those outlined above and to assist
governments in areas such as policy formulation, capacity building and policy implementation. FAO
has been operational in Lao PDR since 1975 and has had an in-country Representative Office since
1980. During this period it has worked closely with GOL and other development partners to
implement a wide range of interventions in agricultural development (including livestock, fisheries
and forestry), food and nutritional security, natural resource management, and improving information
flows. The CPF aims to build on these experiences in close collaboration with GOL.
The CPF formulation process has identified four priority areas in which FAO should work with GOL
in the medium term. These are based on a careful balancing of: (i) the issues identified above; (ii)
Government policy; (iii) FAO’s comparative advantage and its global and regional priorities; and (iv)
the UNDAF for Lao PDR. The priority areas are:
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Improved food and nutritional security through enhanced policy, planning and implementation
mechanisms
Environmentally sustainable production for the market by small farmers using a value chain
approach
Sustainable natural resource management for crops, forests, fisheries and livestock
Reduced risk and vulnerability to natural and other disasters through prevention, preparedness,
response and recovery
Areas such as gender and youth employment are not listed as such among the priority areas, because
they are overarching themes which will be central to activities, outputs and outcomes of all priority
areas. However, capacity development, which includes gender aspects, is given specific attention due
to the serious limitations noted above. It will form a key part of all outputs and activities under CPF
implementation.
From the four priority areas, four priority outcomes and 20 priority outputs have been derived. Each
of the outputs is analysed from the viewpoints of rationale (i.e. why it is a priority) and relevance to
government policies and a set of supporting activities is given. The outcomes are as follows.
1. Effective policy instruments and mechanisms for attaining national food and nutrition
security goals are designed and deployed. There are five outputs under this outcome:
A national food security strategy and plan of action and its governance framework developed
M&E system in MAF developed for effective monitoring and implementation of projects strengthened
Enhanced institutional and government staff capacity for the design and use of the Integrated Food Security Phase Classification (IPC) for better planning and response
with Food and Nutritional Security (FNS)-related interventions
Strengthened institutional and staff capacity to analyse and produce quality and timely FNS statistics in support of better informed policies and actions
Support to small-scale, gender-sensitive food security and livelihood-oriented agricultural programmes for vulnerable farm households through distribution of
inputs, transfer of technologies and best practices, including traditional knowledge
2. Strengthened enabling regulatory and institutional environment for improved access of smallholder farmers to agricultural markets. There are six outputs under this outcome:
Sanitary and phytosanitary-related legal framework further developed in compliance with international standards
Improved inspection and testing regime at all points of agricultural value chain (AVC) to meet Codex standards
Strengthened institutional and technical capacity in the control and management of foot and mouth disease (FMD) and other trans-boundary animal disease (TAD)
Strengthened legal and regulatory framework for agricultural inputs to promote organic agriculture and Good Agricultural Practice (GAP)
Farmers trained to produce GAP/integrated pest management (IPM)-certified agricultural products and farmer-market linkages developed
Institutional and individual capacities of AVC actors (public, private groups, farmer groups) enhanced in the adoption of sustainable and innovative approaches and
practices to support the greening of selected AVC, including post-harvest handling
and processing, market linkages and logistics
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3. Strengthened governance – policies, laws, strategies and community participation for
sustainable management of land, forestry, and fisheries and aquaculture resources.
There are five outputs under this outcome:
Concession agriculture rationalized within a general land tenure policy framework and
regulations
Capacity for participatory land and other natural resources management at the local level
improved through promotion and use of field-tested, gender-sensitive, participatory
development tools and approaches
Enhanced ability of communities and the government stakeholders for inclusive
community-based forest management
Enhanced capacity of communities, local and central administration in design,
prioritization and implementation of climate change adaptation and disaster management
measures in targeted wetlands
An implementation strategy for capture fisheries and aquaculture developed
4. Enhanced capacity of government and communities to adapt to and mitigate climate
change and reduce natural disaster vulnerabilities related to agriculture, forestry and
fisheries. There are 4 outputs under this outcome:
Enhanced capacity of relevant stakeholders to mainstream disaster risk reduction and
management (DRRM) approaches into specific sectoral (agriculture, forestry, fisheries)
and cross-sectoral (nutrition, food security, food safety) plans, policies and legal
frameworks
Developed institutional and technical staff capacity at national, provincial and district
level for agroclimatic monitoring, analysing and disseminating information related to
climate variability and its impact on the agriculture sector
Enhanced capacity of communities in the identification, use and dissemination of
location-specific and gender-sensitive DRRM practices and technologies in the areas of
agriculture, aquaculture, fisheries, animal husbandry and non-timber forest products
(NTFPs) (through farmers field schools (FFS) and enhanced research-extension-farmer
interaction)
Enhanced institutional and technical capacity to effectively and accountably manage food
security and agriculture crises – from disaster preparedness through emergency response
to post-recovery
Implementation of the CPF will be guided by a set of principles, namely: alignment with national
priorities; adoption of a programming approach in collaboration with government and other
development partners; mutual accountability and transparency; centrality of the overarching theme of
capacity-building; gender mainstreaming; decent employment and poverty reduction; and the
incorporation of sustainability and a viable exit strategy into all interventions. CPF implementation
will be under a Steering Committee co-chaired by MAF and FAO and draw its membership from
relevant stakeholders. A short-term implementation plan will be developed, an important focus of
which will be resource mobilization. All activities under the CPF and the CPF itself will be carefully
monitored, while mid-term and end-of-programme reviews will discern key lessons to be incorporated
into the next CPF.
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1. INTRODUCTION
The Country Programming Framework (CPF) is the tool and process used by the Food and
Agriculture Organization of the United Nations (FAO) to define the medium-term response to the
assistance needs of member countries in pursuit of national development objectives that are consistent
with the FAO Strategic Framework and Regional Priorities, the Millennium Development Goals
(MDGs) and other Internationally Agreed Development Goals (IADGs), and strategic objectives of
the United Nations Development Assistance Framework (UNDAF). It replaces the National Medium-
term Priority Framework (NMTPF) as the FAO planning instrument. The CPF outlines the priorities
for collaboration between FAO and the government and the outcomes to be achieved in the medium-
term (4-5 years, aligned to national planning cycles) in support of national agriculture, rural
development and food security objectives expressed in national development plans and policies. In
accordance with the recommendations of the FAO Strategic Evaluation (August 2010), the name of
the NMTPF has been changed to CPF, and it is required for all countries receiving FAO support.
The CPF for Lao People’s Democratic Republic (Lao PDR) outlines the joint Government of Lao
PDR (GOL) and FAO medium-term priorities for FAO’s technical assistance over the period 2013-
2015. It was formulated by the FAO Representative (FAOR) in the country with the assistance of one
international and one national specialist. The design was carried out in two phases. In the first phase a
zero draft of the CPF was produced through a process of literature review covering government policy
documents and other source material, complemented by a series of meetings with resource persons
from a wide range of organizations, including GOL, donor agencies, FAO staff based in Lao PDR and
in the region, Lao PDR-based staff of other UN agencies, the staff of projects and programmes in
food, agriculture and rural development and other persons familiar with these sectors in-country. The
list of documents and websites consulted is shown in the References section. The main result of the
first phase was the identification of Priority Areas.
A preliminary version of the zero draft was shared with the MAF, which distributed copies to relevant
parties. A “brainstorming” session with MAF and other government agencies concerned with food,
agriculture and rural development was held at MAF’s Department of Planning to discuss this draft.
This session, chaired by the Director-General of the Planning Department was the first part of an
iterative process of dialogue and consultation with stakeholders through which the final draft CPF was
developed for approval by the GOL and FAO. The zero draft was later amended to reflect these
discussions and incorporate the views of the GOL. This amended zero draft was then circulated
among relevant staff of the FAO Country Office, the Regional Office for Asia and the Pacific (FAO-
RAP) in Bangkok and the FAO Headquarters in Rome. Comments from this consultation exercise
were then incorporated into a further amendment of the draft.
The second phase began with the identification of priority outcomes and outputs of the CPF, which
were derived from the Priority Areas identified in the first phase. The most important activity of this
period was a series of interviews and discussions with a wide range of senior staff of GOL in
departments and divisions of the various ministries responsible for developing strategies and policies
and implementing activities that fall within the identified Priority Areas. Strategy and policy
documents of these government agencies were collected, analysed and incorporated into the draft. A
series of outputs was developed under each of the outcomes on the basis of departmental strategy
papers and information supplied by senior departmental staff. This was supplemented by interviews
with other key stakeholders among non-governmental development partners and a continued literature
review.
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On this basis a first draft of the CPF was developed. The draft was subsequently discussed at a CPF
Stakeholders’ Consultation Workshop held in Vientiane Capital. This engaged a wide range of
representatives of government line ministries and their departments, donor agencies and international
non-governmental organizations (NGOs). The next draft (Version 1.1) incorporated suggestions and
comments received at this workshop. Version 1.1 was then circulated among relevant FAO staff at
headquarters, regional and national levels for further comments and inputs. The present draft
incorporates these comments.
PART I: NATIONAL CONTEXT
2. SITUATION ANALYSIS
2.1 Introduction
Lao PDR continues to develop rapidly in terms of economic indicators, and has transformed itself into
a lower middle income country in recent years.1 Real gross domestic product (GDP) growth in the six
years from 2006 to 2011 was approximately eight percent per annum. Despite heightened uncertainty
in the global economy, the World Bank’s (WB) medium-term growth projection for the period of
2013 to 2015 is 7.5 percent per annum. The Asian Development Bank (ADB) estimates the figure at
7.7 percent in 2013 and 2014. According to WB estimates, per capita income reached USD 1 030 in
2010 and USD 1 260 in 2012, compared with USD 581 in 2006.2
GDP per capita has exceeded plan
targets in two of the three financial years covered by the plan to date and is expected to exceed the
planned 7th National Socio-Economic Development Plan (NSEDP) target of USD 1 700 per capita.
For the fiscal year 2012-2013 the GDP per capita income has reached approximately USD 1 490.3
This dynamic economic growth has resulted from high levels of foreign investment, particularly in
hydropower and mining (which together also accounted for the bulk of export earnings), as well as
forestry, construction and, to a lesser extent, agriculture. Rising world prices for Lao PDR’s main
mineral exports, copper and gold, have helped boost the growth rate (MPI 2012).
Alongside impressive performance in overall economic development, the country has made progress
in rural development and has made advances in terms of poverty reduction. The national poverty rate
declined from 33.5 percent in 2002-2003 to 20.5 percent in 2012-2013 against a 7th NSEDP target of
less than 19 percent (MPI 2013). The poverty gap ratio has also declined steadily, from 8.0 to 6.5
percent between 2002 and 2007, and is on course to reach the target of 6.0 percent by 2015 (MPI
2011). A number of initiatives have strengthened communities at the local level, including the
establishment of the Village Poverty Reduction Fund in 1 900 villages in 21 districts across five
provinces. Financial operations of the Fund amounted to USD 16.6 million in 2011 with an additional
USD 25 million committed for phase two of the Fund. There has also been expansion of rural
financial services and loans for cultivation, livestock raising and small business development.
Economic growth has been steady and stable, and the impact of the recent global financial crisis on
the economy has been less severe than for neighbouring countries. Economic growth, which is linked
to larger surrounding economies (China, Thailand and Viet Nam), will likely remain robust for the
1 This is based on the World Bank classification of a lower middle income country as one whose per capita
national income is in the range USD 1 026 to 4 035. 2 Data:worldbank.org/country/laos-pdr
3 Ministry of Planning and Investment, Background Document, 11th High Level Round Table Meeting, 19
November 2013
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near future with increasing foreign direct investment (FDI) in crops, industrial forestry, hydropower
and mining. However, the GOL recently identified three major constraints on growth, namely:
taxation, access to finance and an inadequately educated workforce (MPI 2012, citing GIZ and WB
sources).
On the negative side, impressive achievements in terms of economic growth and poverty reduction
have not translated into significant reductions in the country’s seriously high levels of food insecurity
and undernutrition. As the background document for the 2013 Round Table Implementation Meeting
noted, “The nutrition target is off track, with stunting in children remaining one of the country’s
biggest challenges. An estimated 44 percent of children under five years of age are stunted, with
serious consequences for the quality of the country’s human resource capital. Lao PDR has made
steady progress towards universal primary education coverage, but low survival rates to secondary
education pose a risk to MDG achievement. Lao PDR will need to address the high primary school
dropout rates, low secondary enrolment rates, slow improvement in literacy rates and the quality of
education. Gender parity has improved at primary level although is less evident at secondary level”
(MPI 2013).
Widespread inequalities and disparities exist in Lao PDR, imposing serious challenges to the
achievement of sustainable development and the MDGs. Despite progress made, poverty – like food
insecurity – is still widespread and largely defined by ethnicity, gender and geography (ADB 2011b,
p.3; Bestari et al. 2006, p.12). For instance, 75 percent of male members of agricultural households
who are over 10 years old are able to read and write without difficulty, compared with 57 percent of
female members, and school attendance among boys is much higher than among girls (FAO & MAF
2010, pp.5, 11-18; GOL 2006, pp.1-2). Moreover major inequalities exist between female- and male-
headed agricultural households4 with respect to land, livelihood diversification and cash income.
There are generally smaller holdings by area, fewer plots of land, fewer income-generating livestock,
fishery and forest-related activities, and lower crop marketing rates in female- than male-headed
agricultural households. Female-headed agricultural households also generally spend a larger
proportion of cash income on food and have less access to safe drinking water sources than their male
counterparts (FAO & MAF 2010, p.53).
According to the National Nutrition Strategy (NNS), over the period 2000-2007, during which total
GDP more than doubled, undernutrition among children under five years old (CU5) fell by just three
percentage points, from 40 to 37 percent, but more recent figures indicate that the problem of
underweight among CU5 declined from 31 to 26.6 percent between 2005 and 2012 (LSIS 2012). Even
if the latter set of figures is correct, the rate of improvement is still unacceptably low. Progress on
stunting has also been very slow, with prevalence falling from 48 percent (MICS) in 2005 to 44
percent (LSIS) in 2012. This means the country is seriously off track in terms of meeting the national
MDG target of 24 percent by 2015.
These rates are even higher among rural remote upland communities populated by non-Lao speaking
ethnic groups. Micronutrient deficiencies are also among the challenges that must be addressed,
because over 40 percent of CU5 suffer from anemia and 45 percent are vitamin A deficient. Chronic
child undernutrition remains one of the country’s most serious problems, with nearly 300 000 CU5s
(40 percent) stunted. The NNS reported that:
45 percent of CU5 and 23 percent of women suffer from vitamin A deficiency
41 percent of CU5 and 63.5 percent of CU2 suffer from anaemia
4 About 10% of Lao households are headed by women and these are concentrated in urban areas. Less than 5%
of all agricultural households are headed by women, the majority being widows and Lao Loum (lowland
dwelling Tai peoples), and only 9% of all agricultural holdings are managed by women.
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22 cent of women aged 15 to 49 suffer from iron deficiency
54 percent of children suffer from Soil Transmitted Helminthes (parasitic infection)
23 percent of the population is undernourished
The latest MDG progress report on Lao PDR provides a mixed picture with respect to achievements
on the Goals that are of relevance to hunger, poverty, the environment and water and sanitation
(WATSAN) in rural areas. The MDG targets are off track in five areas: (i) MDG 1 (malnutrition); (ii)
MDG 2 (low education survival rates); (iii) MDG 4 (CU5 mortality rate; (iv) MDG 5 (maternal
mortality); and (v) MDG 9 (unexploded ordnance (UXO)). For MDG 1, the fact that the country is on
track to meet the 2015 target of reducing poverty by half, but “seriously off track” in terms of
reducing hunger by half is puzzling, given that, according to Engel’s Law, there is a positive
correlation between poverty level and income elasticity of demand for food.5 The fact that the rural
WATSAN targets are off target is of close relevance to food security, because poor water and
sanitation tend to translate into high increased incidence of diarrhoeal disease, which inhibits food
absorption, thereby compromising food utilization.
The fact that the target on environmental loss is “seriously off track” is explained by loss of natural
forest cover (including serious loss due to “slash and burn” agriculture), extraction of high-value
timber species, excessive gathering of firewood and construction material in some areas, land-based
speculative investments6 and land conversion, continuing soil erosion, hunting and habitat loss.
According to recent report of the Ministry of Planning and Investment (MPI): “Lao PDR’s forest
resource, which once covered about 70 percent of total land area, had declined to 42 percent by 2002
and is about 40.3 percent in 2010 based on the MAF definition of forest of 20 percent crown cover”.7
The GOL recognizes this as a grave concern and has initiated efforts to address such issues through,
for example, the Lao PDR National Protected Area System and a National Production Forest System
aimed at implementing sustainable annual timber quotas. If the current trend continues, the country’s
last remaining natural forests may disappear by 2070, or earlier.
Widespread soil erosion, especially in the uplands, and shorter fallow periods under shifting
cultivation are leading to declining agricultural productivity. On top of the loss of forest, wetlands and
grasslands habitat, hunting and illegal trade are having a detrimental effect on Lao PDR’s 1.6 percent
share of globally threatened species (MPI 2011, pp 24-25). It may be added that, in terms of total
forest cover, loss of natural forest cover is in the process of being offset by an expansion of industrial
tree plantations in the form of tree crops such as rubber and eucalyptus. However, this process itself
imposes environmental costs in the form of biodiversity losses as this expansion may involve
clearance of natural or secondary forests. The GOL is encouraging sustainable rubber plantations for
smallholders as a poverty reduction measure because rubber can generate more income per hectare
than more traditional cash crops. However, rubber prices are volatile and are currently in decline due
to the ongoing economic downturn.
Table 1 depicts the trends in food security and nutrition in Lao PDR in recent years, using the Global
Hunger Index (GHI).8 The Table also places these trends in a regional context by including other
5 i.e. the poorer the household the greater the proportion of any income increase tends to be spent on food. Lao
PDR is not unique in this respect; the same problem of hunger and undernutrition not declining in tandem with
poverty reduction is found in other Asian countries, such as India. 6 Land-based plantation investments are allowed on degraded lands, but due to poor mapping resources, etc.
many investments also occur in non-degraded forested areas. 7 According to the FAO definition of forest (which is based on 10% crown cover, 0.5 ha minimum area,
inclusion of bamboo and sustainable plantations as forest) forest cover in Lao PDR is 68%. 8 The GHI combines three equally weighted indicators in one index. These are: (i) the proportion of undernourished people as a percentage of the population; (ii) the proportion of CU5 who are underweight; and
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Association of Southeast Asian Nations (ASEAN) countries. Although Lao PDR has not fared as well
as the other countries listed, it has succeeded in bringing its GHI down from “alarming” to “serious”
over the period shown.
Table 1. Global Hunger Index in ASEAN Countries, 1990-2012 (ranked by 2012 GHI)
Country
Global Hunger Index (GHI)
1990 1996 2001 2012
Malaysia 9.0 6.7 6.6 5.2
Thailand 15.1 11.8 9.2 8.1
Viet Nam 25.6 21.4 15.5 11.2
Indonesia 18.5 15.4 14.2 12.0
Philippines 19.9 17.6 14.2 12.2
Cambodia 31.8 31.5 26.0 19.6
Lao PDR 28.6 25.2 23.6 19.7 Source: Drawn from data in IFPRI et al 2012 Table 2.1; countries are ranked in ascending order of 2012 GHI
Notes:
1. The Index is rated on a five-point scale: (i) ≤ 4.9 ‘low’; (ii) 5.0-9.9 ‘moderate’; (iii) 10.0-19.9 ‘serious’;
(iv) 20.0-29.9 ‘alarming’, and (v) ≥ 30.0 ‘extremely alarming’
2. Brunei Darussalam and Singapore are excluded from the table because their GHI is now ≤ 4.9; Myanmar is
excluded because of lack of data
Rice is the staple food of most households in Lao PDR, accounting for approximately 67 percent of
average total dietary energy consumption (DEC). FAO Statistical Database (FAOSTAT) data indicate
that in 2007 per capita consumption of rice in Lao PDR was among the highest in the world, with an
average of 163 kg per capita/year (second only to Viet Nam’s 166 kg).9 FAO estimates, using the Lao
Expenditure and Consumption Survey (LECS) IV data, indicate that carbohydrate consumption,
largely derived from rice, had reached 79 percent of DEC, compared with a World Health
Organization (WHO)-recommended maximum of 75 percent. Protein consumption is at the low end
of the acceptable range, while intake of essential fatty acids (EFAs) is 11 percent of DEC, compared
with a recommended level of 15 percent. Hence the average diet is unbalanced in terms of the three
macronutrients. Inadequate consumption of EFAs, apart from its direct impact in terms of dietary
balance, also has secondary effects on micronutrients, because it leads to low body fat, which in turn
compromises the body’s capacity to store the fat-soluble vitamins (A, D, E and K). Moreover, while
micronutrients (e.g. from fruit) are available to many people in the Lao PDR, they cannot be absorbed
efficiently without oils and fats. Products from terrestrial (non-timber forest products (NTFP)) and
aquatic (frogs, mollusks, crustaceans, insects, arachnids, etc.) biodiversity can provide such oils and
fats, but aquatic biodiversity is under threat due to population increase, disturbances from mining,
hydropower development and seepage of agrochemicals, especially pesticides, into waterways in
areas of concession agriculture (see below). The abundance of NTFP, an important food security
safety net, has also decreased due to forest loss and commercialization of some species.
2.2 Situation and Outlook
(iii) the mortality rate of CU5. By using a range of indicators the GHI reflects the multi-faceted nature of
hunger. 9 The 2012 Lao PDR Rice Policy Study looked at a number of estimates of rice consumption in Lao PDR and
found they varied from 112 to 179 kg of raw milled rice/capita/annum. The FAOSTAT estimate is in the middle
of this range, and is used here because FAOSTAT estimates have the advantage of being comparable across
countries.
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Although gradually declining in terms of its contribution to GDP in recent years, agriculture continues
to play a major role in the economy, with a growth rate of 4.1 percent during the 6th NSEDP, which
declined to 2.9 percent over the first three years of the 7th NSEDP. The sector contributed an
estimated 25.5 percent of GDP and absorbed an estimated 75 percent of the total workforce in 2010
(7th NSEDP, October 2011).
10 (The sectoral growth rate fell to 2.9 percent in FY 2011/13, the first
three years of the 7th NSEDP, but this is still above the population growth rate of 2.3 percent.) The
main achievement of the agriculture sector has been food self-sufficiency, with additional capacity for
export. At the same time, production of cash crops, crops suitable for processing and livestock has
expanded. The sector is becoming increasingly commercialized, yet around 80 percent of the rural
population is still subsistence farmers, who depend on heavily rice-based agriculture, raising livestock
and relying on collection of food from the wild to supply them with nutrient-rich foodstuffs. This
subsistence orientation is partly due to lack of transport infrastructure, as around 20 percent of the
population lacks adequate access to roads. Rice cultivation remains the single most important national
economic activity, with this crop accounting for 72 percent of the total cultivated area. Around 71
percent of all households practice rice cultivation.
Gender-specific consideration of agricultural activities is crucial, given that women farmers are
responsible for over half of all agricultural activities and make up 54 percent of the total agricultural
labour force (NSC 2004). Lao women contribute significantly across the sector, undertaking most of
the planting, weeding and harvesting activities, tending especially to the care of small livestock and
undertaking much of the management of fish ponds and fish culture in rice fields, and in processing
and marketing of fish.11
During most of the 1990s rice production in Lao PDR lagged behind consumption, and there was a
deficit in the range of 100 to 250 thousand tonnes a year during most of that decade. However, over
the period 1991-2011, Lao rice production increased by a factor of 2.7 to reach around 3.3 million
metric tonnes (MT) of paddy in 2011. This represents an average of 5.1 percent annual growth (in
compound terms), which is one of the highest growth rates in the region. This closed the deficit by the
end of the century, and there was a mounting level of surplus every year until by 2011 it had reached a
remarkable 350 thousand tonnes, so that rice self-sufficiency at national level “is now a stable reality”
(FAO-WB-IRRI 2012, p.24). The main drivers of this increase are an expansion in irrigated area,
adoption of high-yielding varieties and adoption of improved farm management practices (Lao
Census of Agriculture 2010/11; MAF 2010c). However, this growth was far from uniform across the
country: ten provinces are in rice surplus, while six are in deficit. Counterbalancing this, most of the
provinces that are deficit in rice are surplus maize producers. Maize has approximately the same
caloric value as rice (FAO-WB-IRRI 2012).
Other important economic crops include coffee, sugar cane, cassava, sweet potato and industrial tree
crops (such as rubber, eucalyptus and acacia). Use of chemical fertilizer, pesticides and herbicides has
traditionally been low, as farmers have been wary of chemical inputs, unconvinced as to their efficacy
as well as averse to the additional financial inputs needed. Fertilizer use is still mostly limited to
paddy nurseries, vegetables and some cash crops, and extensive use is made of farmyard manure
dropped from mainly free-ranging livestock. There is, however, an increasing trend towards the use of
pesticides and herbicides with the spread of agricultural concessions and as a result of the increasing
number of farmers acting as contract growers for local agricultural concessions. In many areas such
arrangements are the main point of contact between private investors and farmers. An important
10
In terms of government structure, the agricultural sector in Lao PDR is defined very broadly to embrace
crops, livestock, fisheries, irrigation and forestry. This definition is used throughout this report. 11
Sources: Population Census 2005; Country Profile 2010.
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problem here is that imported agrochemicals are not labeled in the Lao language, so that farmers are
not aware of recommended dosages and application practices.
The growth of agricultural concessions is relatively recent, but it has been very rapid, and is generally
funded by investors from China, Viet Nam and Thailand, with a smaller number from Korea, Japan,
India, Europe and the Middle East. To date, approximately 1.1 million hectares (ha), or roughly five
percent of the country’s territory have been approved for concessions and leases. As this excludes
logging concessions, contract farming and hydropower projects, this estimate is considered
conservative (Schönweger et al., 2012). Official data on the extent of the phenomenon are limited but
field evidence indicates it is having negative implications on rural livelihoods. The trend in land
concessions is likely to grow, but the rapid expansion of this form of agriculture has led to problems
that need to be addressed and new mechanisms need to be devised to regulate this part of the sector.
The problems include loss of traditional access rights to NTFPs, loss of land traditionally farmed by
local people, erosion of biodiversity and all of the problems associated with monoculture (GTZ 2009).
These have manifested into numerous land-related conflicts now occurring throughout the country. A
positive step has been the GOL’s suspension (Prime Minister’s Decree No. 13 11/06/2012) of further
rubber, eucalyptus and mining concessions until 2015 in order to take stock of past concessions and
better manage future ones. In addition, during 2013, the first ever National Land Policy was drafted
and debated by the National Assembly; it was expected this will be passed at the end of
2013.Following this are planned revisions to both the Land and Forestry Laws. New mechanisms
need to be devised to regulate investment in agriculture within a framework of good governance and
equality. Experience suggests that, if well regulated, income from sustainable biodiversity-sensitive
investments can improve livelihoods, create revenue and jobs, and encourage modern farming skills,
such as in agroforestry and agrosilvipastoralism.
Livestock and fisheries are essential to small farmers across the country. Produce from these
subsectors contributes significantly to household incomes, and to the national economy. Livestock
numbers have increased during recent years at a growth rate ranging from three to five percent per
annum. The main animals reared are buffaloes, cattle, pigs and poultry, with goats also gaining in
popularity. Livestock production has become increasingly commercialized in recent years, driven by
increasing domestic and regional demand. Regional demand for livestock products is projected to
grow at between 3.5 and 4 percent per annum in the present decade, and Lao PDR has the potential to
meet much of this demand, but only if current problems can be addressed (see §3.1.4 below).
An estimated 40 percent of protein consumption derives from fisheries, making it the main source of
animal protein for the great majority of people. This subsector also contributes very significantly to
the supply of oils, fats and micronutrients, which are lacking in most diets. The area allocated to fish
ponds has been growing. They are mainly managed by women, and have become an important source
of income and food. Production from this source is mostly for domestic consumption, although
women also tend to process and market some of the fish from their fish ponds. There is also a
significant commercial fishery in the Nam Ngum Reservoir. Commercial aquaculture has undergone
remarkable development in recent years, but only in parts of the country with reliable access to
markets and that have a ready supply of fingerlings and fish feed. Generally, however, yields from
aquaculture are low and production is at best semi-intensive, the exception being foreign-operated
commercial aquaculture ventures which local producers are finding it difficult to compete with. Over
70 percent of farming households in Lao PDR fish part time on a seasonal basis, largely from open-
access sources. There is a corresponding need for government recognition of the benefits of wetland
and protected areas for fish production, and the conservation of natural fish habitats. With open access
fisheries, provincial governments are responsible for enforcement of regulations (e.g. closure during
the spawning season) and provision of extension advice and other support (e.g. government
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hatcheries). There is a pressing need to reverse the trend of water resource degradation which is
having a negative impact on aquatic ecosystems. However, there is currently little capacity to perform
these tasks effectively, and individual catches are declining. In a context where population is rising at
an estimated 2.3 percent per annum, the number of fishers is also rising and the country is so heavily
dependent on fisheries for nutrition, this situation gives rise to very great concern.
Some vegetables are grown under irrigation in the dry season, but by far the most important irrigated
crop is rice, mainly through the provision of supplementary water in the wet season. The 2010/11 Lao
Census of Agriculture reported that 191.8 out of 986.6 thousand ha (19.4 percent) of rice was grown
under irrigation in that year (SCAC 2012 Table A1.19). The GOL has invested heavily in
improvement of the irrigation system and has repaired damaged systems, including damage occurring
during natural disasters since 2007. Irrigation coverage is low by regional standards, however, and
lack of irrigation is regarded by farmers as the greatest single constraint on increasing agricultural
production. In the 2010/11 Lao Census of Agriculture, 59 percent of farmers in all parts of the country
named lack of irrigation as the main constraint, compared with 43, 29, 25 and 10 percent for inputs,
land, markets and labour, respectively. Concerns about lack of irrigation were most common in the
southern region, where the average figure was 71 percent (SCAC 2012 Table A2.11).
Forestry has always been a major contributor to the GDP of Lao PDR, and remains an extremely
important national resource. As well as contributing to the economy directly, forests make an indirect
contribution, particularly through their role in water control, absorbing water during the rainy season
and releasing it in the dry season, thus reducing rainy season flooding and augmenting dry season
flows. Timber revenue contributes to government revenue and has the potential to supply raw
materials for value addition and employment in the form of timber processing industries. However,
governance of the forestry sector has proven to be a challenge, with supplies to processors fluctuating.
Management of the processors themselves has also been difficult and many of them are operating
without proper licenses.
For most of the rural poor, the forest provides many indispensible benefits. The collection of nutrient-
rich food, medicines, and firewood, is largely the work of women. Collection of construction
materials and wild animals from the forest is largely men’s work. On average, NTFPs account for 40
percent of a rural household’s annual income. There is a significant difference in earnings from forest
products between male- and female-headed households, and for households in the south compared
with other regions of Lao PDR. NTFPs are mostly used for subsistence, although some are sold in
local markets and some are traded internationally. The main NTFPs include forest animals, fish,
bamboo and rattan shoots, fruits, greens, honey, khem grass (for producing brooms), paper mulberry,
cardamom and malva nuts (as condiments and medicinal products), benzoin, peuak meuak, resins and
leo resins (for the chemical and perfumery industries). However, as noted earlier, forest cover has
been declining rapidly in recent years, and this is having a negative impact on NTFP production.
Lao PDR is a country rich in biodiversity, and this resource contributes hugely to the national
economy. Biodiversity in agriculture provides crucial ecological services such as crop pollination,
seed dispersal and pest control. In forestry it provides a wide range of valuable timber species and
NTFPs. However this rich resource is at present under threat by a combination of over-extraction and
destruction of habitat for other purposes. The forces that contribute to this include illegal logging, the
disappearance of the traditional usufruct rights of ethnic peoples, along with their resource-protection
measures, and the commitment of land to foreign investment in concession agriculture with the
consequent spread of monoculture. This situation is not helped by the weak policy and law
enforcement environment and lack of legal recourse. Even within smallholder agriculture, biodiversity
is being lost, as thousands of rice landraces are increasingly being replaced by a limited number of
high-yielding varieties.
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The 2012 issue of the UN Asia Pacific Disaster Report (ESCAP-UNODRR 2012) notes that Lao PDR
suffers annual disaster losses that average no less than 0.7 percent of GDP. Moreover, the incidence of
natural disasters appears to have been increasing, with more frequent typhoons, droughts, heavy flash
floods, and other flooding. There have been three typhoons in the past four years. This is of course too
short a period to be indicative of longer term trends, but it is consistent with evidence from around the
world that the incidence of severe cyclonic storms (cyclones, typhoons and hurricanes) seems to be
increasing. Isolated small-scale disaster events, such as rodent outbreaks, continue to have profound
impacts at the community level. Improved communications and increased food availability may help
in managing these events but, due to increased event intensity and frequency, to what degree they can
help is not well understood at this time. Given the gender-differentiated impacts of natural disasters,
and the greater vulnerability of women and children in such events, disaster management would need
to account for and set in place gender- and age-sensitive measures.
Overall nutritional status in Lao PDR has remained unsatisfactory over recent decades. Diets are poor
in qualitative, as well as quantitative terms. The high rate of child malnutrition – particularly among
children between one and five years of age – over the last ten years continues to pose a challenge to
health and well-being (Kamiya 2011). The most significant constraint to food availability is the low
level of domestic production of non-rice food items, resulting from falling per capita availability of
agricultural land, low productivity and high risk in the agriculture sector. These conditions are
exacerbated by natural resource depletion and loss of traditional access rights, which threaten food
availability from common property resources.
There are important challenges to be faced in aquaculture and natural fisheries. These include limited
access to land suitable for fish pond construction, vulnerability to natural disasters, habitat loss,
shortage of fish feed and of fingerlings of suitable species (especially in less accessible areas) and
lack of reliable information. In gender terms, although women play a key role in fish production, they
are especially disadvantaged in terms of both time constraints (they have to perform multiple gender-
specific tasks in and around the household) and in terms of lack of access to training and information.
The livestock sector is beset by problems. One that has been prominent of late is Highly Pathogenic
Avian Influenza (HPAI). However, with technical assistance from various international agencies,
including FAO, this threat has so far been contained. Several other animal diseases are prevalent. For
instance, there has been a worryingly high mortality rate from swine cholera, especially in the north;
blue-ear disease of pigs and foot-and-mouth disease (FMD) in buffaloes appear to be spreading.
Vaccination of livestock is still very limited. Animal mortality rates could be greatly reduced through
improved veterinary programmes and better husbandry practices. There is also a misunderstanding
among most of farmers of the risk of animal diseases, and they sometime resist control measures on
the grounds of cost. This could lead to export restrictions in the future and a limit to trade through
official and formal channels (FAO/WFP 2011). A key underlying problem is shortage of veterinarians
(there is no training school in-country).
Two further unrelated issues add to an already complex picture. One is unexploded ordnance (UXOs).
During the military conflict in Indochina in the 1960s and 1970s, Lao PDR was the scene of extensive
ground battles and intense aerial bombardment. Around two million MT of bombs were dropped on
the country during 1965-1975, especially in areas adjacent to Viet Nam. An estimated 30 percent of
those bombs failed to detonate on impact, leaving a legacy of UXOs that continues to kill and maim
today. The aggregate casualty load is in excess of 13 000 people. In addition, according to the 2012
agricultural census, the total area of agricultural land left unsafe through UXO contamination is more
than 170 000 ha. A survey conducted in 1996 on the socio-economic impact of UXOs in Lao PDR
found that 25 percent of all villages were affected. In rural communities, high levels of poverty and
risk were found to be clearly linked to high levels of UXO contamination: “Villagers living in such
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impoverished conditions often find that they are confronted with ‘enforced risk-taking’. They either
continue to live in acute poverty and in many cases chronic malnutrition, or risk injury and death by
working UXO-contaminated land.” In some areas collection of UXO scrap metal for sale has become
common, raising huge safety concerns. Clearance efforts are ongoing, but they are small in relation to
the scale of the challenge.12
The second issue is opium production. This is a traditional cash crop in some northern districts; since
2001 the GOL has been making efforts, supported by the UN Office on Drugs and Crime (UNODC)
and by the European Union (in Huaphan Province), to find alternative livelihood opportunities for
growers. The strategy initially met with a good degree of success, to the extent that by 2006
production had fallen to the point that the government could declare the country to be effectively
opium-free, whereupon efforts were scaled back. However, the problem has since become resurgent.
According to UNODC, the area under opium reached an estimated 1 500 ha by 2008 and is now
thought to exceed 4 000 ha. The challenge is to find legal crops that can compete economically with
opium and this is very difficult when the price of opium is now so high and the production areas
remote, so that only very high value crops are economically viable. This, it must be added, is a global
issue, and governments, not only in Lao PDR, but in many parts of Asia – and South America in the
case of cocaine – have faced severe difficulties in trying to identify economically-attractive legal
alternatives.
2.3 Government Policies and National Priorities
The overarching development goals of the Lao PDR are to reduce poverty, achieve growth with
equity and meet the MDGs, with the aim of graduating from the “Least Developed” category of
countries by 2020 (MPI 2011). This section examines policies and priorities at the macro level insofar
as they affect agriculture, national resource management (NRM), food and nutritional security,
poverty reduction and similar concerns, as delineated in the current (7th
) five-year plan. Sectoral and
subsectoral planning in these areas is analysed in Annex 2 of this document, which also addresses
policies in the related areas of biodiversity, disaster risk reduction (DRR) and disaster risk
management (DRM), and climate change (CC). Key features of the overarching policy document in
the agricultural sector, the Strategy for Agricultural Development 2011-2020, are also examined
below (see §3.1 and 3.2)
The 7th
National Socio-Economic Development Plan (2011-2015) takes as one of its “Strategic
Directions” the achievement of the MDGs on poverty reduction by 2015. It forecasts a growth rate in
the agriculture and forestry sector of at least 3.5 percent over the plan period (down from 4.1 percent
in the 6th NSEDP, but still above the rate of population growth). The share of agriculture in GDP is
projected to continue to fall (to 23 percent) because the rate of GDP growth is projected to be at least
8 percent. Key challenges recognized for the plan period include the need for a “more visible shift” of
employment from farm to non-farm sectors, addressing environmental issues and mitigating the
impact of climate change. One of the seven “directions” of the Plan addresses rural development and
poverty eradication, the aim being to reduce income inequalities between rural and urban areas,
between geographical areas and between rich and poor. Moreover the Plan highlights the promotion
of inclusion, especially of women, and ethnic groups in remote areas of the country. The Plan sets
ambitious targets with respect to growth of rice and livestock production. There are equally ambitious
targets for poverty reduction, improved nutrition (measured in terms of falling rates of child stunting
and underweight) and better access to clean water and sanitation. The environmental losses of recent
years are projected to be reversed. By 2015, 3.9 million ha of degraded forest are to be rehabilitated,
and a further 200 000 ha replanted, thus increasing forest cover to 65 percent.
12
The statistics and citations in this paragraph are based on Sisavath 2006.
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Rural development is to be addressed by an “area-focused” development approach, targeting remote
areas where ethnic minorities predominate, and where poverty is endemic, as well as areas which have
high growth and development potential. This approach is to be implemented by priority programmes
and projects for rural resettlement, “greening the country”, linking agricultural production to
processing and service industries and continuing the policy (introduced in 2004) of establishing model
villages and clusters of development villages (Kumbans). Measures to achieve this include relocating
government experts to grassroots levels, strengthening institutional capacity, gender sensitization,
resource mobilization and utilization, designing special interventions for poor people and ethnic
groups, and translating rural development/poverty eradication programmes into funded projects.
Directions for the agriculture and forestry sector are centred around agricultural modernization and
commercialization, enhanced food security, improved productivity and quality, optimal use of natural
resources and improved livelihoods for farmers. Improving the management of agricultural
concessions and promoting investment in priority and remote upland areas are key priorities. In terms
of measures to be taken, the focus is on modern technology to improve productivity (with strong
emphasis on irrigation), policy reforms (such as tax incentives) to expand market networks, human
resource development at all levels (e.g. by sending government specialists to areas where there is
insufficient expertise), measures to improve the quality of agricultural produce (e.g. improved sanitary
and phytosanitary (SPS) measures) and reforestation by planting “appropriate” tree species, and
stabilizing shifting cultivation.
The goal of the earlier National Growth and Poverty Eradication Strategy (NGPES) was “to halve
poverty levels by 2005 and eradicate mass poverty by 2010”, and the Strategy assigned a key role to
agriculture in achieving these aims. What has transpired has been that, as noted earlier (§2.1), the
country is on track to meet the MDG 1 target of halving extreme poverty by 2015, but is seriously off
track in terms of reducing hunger by half by the same year.
2.4 Governance System
FAO’s partner ministry is the MAF. A Prime Minister’s Decree adopted on 28 June 2012
(Organization and Function of MAF) revised the organizational structure of the ministry at the central
level into 12 sections, eight of which are concerned with specific subsectors or research and outreach.
These are:
Department of Agriculture
Department of Livestock and Fishery
Department of Irrigation
Department of Forestry
Department of Forestry Inspection
Department of Agricultural Land Management and Development
Department of Agricultural Extension and Cooperatives
National Agriculture and Forestry Research Institute (NAFRI)
Other relevant government bodies are the MPI, the Ministry of Industry and Commerce (MOIC) (for
issues of agricultural trade) and the Ministry of Health (MOH) (for nutritional and food safety issues).
The newly formed Ministry of Natural Resources and Environment (MONRE) is also likely to
become a key player, particularly since it has been assigned responsibility for all forestry resources
except “production forests” (i.e. those where logging under license is permitted). Control over
production forests remains with MAF. MONRE is also responsible for a range of other environmental
issues, including water resources, land management, environment, CC, meteorology and hydrology,
DRM, environmental quality monitoring and research, environmental and social safeguards, and data
and information management. It is the GOL’s point of liaison with the Mekong River Commission
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and operates a geographical information systems (GIS) database on environmental resources.
However, the National Geographic Department which is currently updating Lao maps did not become
a part of MONRE as part of the recent reorganization, instead remaining part of the Ministry of Home
Affairs (MOHA).
A policy of decentralization has existed in Lao PDR for some time. For purposes of planning and
budgeting, the province is regarded as the strategic unit, and the district as the budget-planning unit.
This practice was formalized and regularized in 2000 under Prime Ministerial Instruction No. 01,
which acknowledged and addressed a number of weak points and failings in the system, and aligned
decentralization more closely to the then recent acceptance of the market mechanism as a basic
driving force of the economy. The purpose of the Instruction can be summarized as: (i) “to extend the
scope of rights and increase responsibility (and) awareness at the local levels and the grassroots”; (ii)
“to support the sustainable socio-economic growth of the local levels and grassroots”; and (iii) “to
transmit the Party's policies and state plans to the implementing units at the local levels and elaborate
the policies into guidelines for the formulation of plans and budgets, starting from the grassroots
level” (GOL 2000 pp 1-2). In February 2012, the Central Party (Politburo) issued Resolution No. 3
with the instruction to build provinces as “strategic units”, districts as “comprehensively strengthened
units”, and villages as “development units”. The resolution requires providing a framework for
sharing responsibilities across different levels in the administration and assigns executive functions to
the districts in implementing development programmes. Fifteen ministries are identified to pilot this
policy (called the Sam Sang initiative) in 51 districts covering 105 villages. The Sam Sang pilot
requires local authorities to undertake greater responsibility in the development of the plans,
mobilization of revenues, allocation of resources and expenditure of budgets.
At the local level there is a Provincial Agriculture and Forestry Office in all 17 provinces and a
District Agriculture and Forestry Office in 139 districts. All of them are seriously under-resourced
except when there is a donor-supported project or programme in operation.
In Lao PDR the government and the Lao People’s Revolutionary Party (LPRP), are closely
interrelated. Government and Party efforts are bolstered by the Lao Front for National Construction,
(LFNC) which is affiliated to the LPRP, and acts as a mass organization whose role is to involve non-
party members in government and cultural affairs. Parallel organizations are the Lao Women’s Union,
the Lao People’s Revolutionary Youth, the Lao Federation of Trade Unions, and the Lao National
Federation of Veterans. A number of international NGOs (local NGOs are called Non-Profit
Ass