Lao Seventh Poverty Reduction Support

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The development objective of the Seventh Poverty Reduction Support Operation (PRSO7) Program is seeks to support policies that ensure sustained growth and improved revenue mobilization in the medium term, thereby increasing resources available to be used for implementing the poverty reduction strategy. The PRSO7 program reflects a mature program of policy and institutional reforms initiated in 2005, with strong government ownership under the leadership of the Ministry of Finance (MOF) and the PRSO steering committee. It is the fourth operation of the second programmatic series of PRSOs in the Lao PDR. The PRSO7 continues to focus on the areas consistent with the goals and strategies identified by the Government in its National Social and Economic Development Plan (NSEDP, 2006-2010). The PRSO program supports the four pillars of the Country Assistance Strategy (CAS), which in turn build on the Government's NSEDP. The four pillars of the CAS are: 1) sustain growth through improved management of key drivers - regional integration and private sector development, rural development, and natural resource management; 2) improve social outcomes and reduce vulnerability through strengthened public financial management and service delivery capacities and targeted poverty reduction programs; 3) adopt a strategic approach to capacity development and partnership in support of better NSEDP results; and 4) support the implementation of Second Nam Theun (NT2) hydro-power project, focusing on the revenue management arrangements.