LaoPDR Fourth Poverty Reduction Support Operation

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The Fourth Poverty Reduction Support Operation (PRSO4) focuses on two broad policy areas consistent with the goals and strategies identified by Government in its poverty reduction strategy, and reflected in International Development Association (IDA's) Country Assistance Strategy: (i) sustaining growth though improvement of the investment climate, facilitating trade and management of natural resources; and (ii) improving social outcomes through improving public financial management system and service delivery. The second series of PRSO4-7 and related policy dialogue, policy matrix and performance assessment framework, builds on the achievements of the previous series, deepens structural reforms on public financial management, and expands supporting the delivery of further benefits in two broad categories: (i) investment climate, competitiveness, and business development; and (ii) public finance management and improving service delivery. Progress in these policy areas in turn will support a continuation of the good macroeconomic situation and sustainable export and private sector driven growth, and continued progress with poverty reduction, including through reform of the public finance management system (as well as better management of natural resource revenues including those of Second Nam Theun (hydroelectric project) (NT2)). As programmatic budget support, the PRSO series is aimed at increased predictability of funding and the associated dialogue between Government and donors, sharper policy prioritization and strengthened donor coordination.