Lao PDR First Poverty Reduction Support Credit

closed

Closed

This First Poverty Reduction Support Credit and Grant Project, jointly prepared with the Government and in collaboration with other donors, provides an overarching framework for a programmatic three-year policy reform Program, and, performance indicators in line with the Country Assistance Strategy (CAS). The Project aims at ensuring that public resources are both available, and effectively used to meet Lao PDR's development outcomes. Three broad benefits can be identified: improved public expenditure management performance; alignment of public expenditures with pro-poor National Growth and Poverty eradication Strategy (NGPES) goals; and, enhanced environment for growth and revenue generation. While the project also entails benefits such as policy prioritization and donor coordination, predictability of funding and donor support, and, budget support within macro stability, five main risks could affect the impact of the proposed operation: the authorities' uneven commitment to reforms; a weak public financial management system leads to a high fiduciary risk; provincial autonomy hinders implementation of national Policies, and an equitable distribution of resources; short-term fiscal un-sustainability; and, severe capacity constraints in the civil service. The project benefits outweigh its risks, and furthermore, an explicit recognition by the Government of weaknesses, will place Capacity Enhancement (CE) at the center of the reform program. As a result, capacity is being strengthened through reforms, and by the active engagement of other donors.

FY17 - Agriculture, Fishing and Forestry,FY17 - Education,FY17 - Financial Sector,FY17 - Health,FY17 - Public Administration

World Bank Group

Project

Raw Materials, Government, Education