A/HRC/41/39/Add.2
Research found that, despite higher GDP growth than its peers, the Lao People’s
Democratic Republic has lower rates of poverty reduction, in part due to reliance on foreign
direct investment and the natural resource sector. 11 The Government has focused its efforts
on graduating from least developed country status, which in itself will not solve any of the
structural challenges. In fact, graduation will mark an end to access to certain aid and trade
privileges, which may worsen the situation of the poor. 12 The debate should focus on
ensuring tangible achievements in poverty reduction, rather than on the meeting of abstract
indicators.
14.
In the forthcoming Ninth National Socioeconomic Development Plan for the period
2021–2025, the Government should embrace growth strategies, budget allocations and tax
policies that prioritize poverty alleviation in practice, rather than just rhetorically, which
would not only protect the human rights of a large number of Lao people but would also
generate more sustainable and effective development.
15.
Existing growth strategies rely too heavily on hydropower, large infrastructure
projects and land concessions that involve significant risks and uncertain rewards. They
should be balanced by policies promoting other sectors, such as sustainable agriculture,
urban development and tourism, which will require a well-educated, healthy and skilled
workforce that can only emerge as a result of high-quality education, well-funded health
insurance programmes that support the poorest people, the empowerment of women and
truly accessible social protection. In order for infrastructure to contribute to poverty
reduction, it must be approached in a participatory manner, guided by the interests of, and
inputs from, poor and rural communities. International financiers should back projects in
line with those goals.
16.
In rural areas, the Special Rapporteur spoke with contract farmers who spoke of
being stuck in a cycle of poverty, reporting that they struggled with centralized decisions
about crop types. They deserve the autonomy to organize and make important decisions
about what they grow and how they sell it, but also the type of support that the State can
best provide, such as microinsurance programmes, which are of particular importance given
that climate change increasingly affects fragile ecosystems, as well as information, advice,
including on negotiating fair contract terms, and regional economic networks that allow for
the greatest benefits from their labour.
17.
The Government should take a more active role in poverty reduction and rely less on
international donors and on the assumption that the benefits of foreign investment will
eventually reach people in poverty. It should channel its efforts towards supporting
communities and individuals and empowering them to be agents of their own development.
A.
Economic policy
18.
There is a strong and direct relationship between how a government raises revenue
and spends its budget and how it meets its human rights obligations. 13
Transparent budget linked to reducing poverty
19.
Despite significant steps in recent years, including the 2015 Budget Law, key details
about the Lao People’s Democratic Republic budget are not made publicly available, and
the information that is available is often outdated and insufficient for those within the
Government, donors and the public. 14 Repeated requests by the Special Rapporteur for
11
12
13
14
6
The Phnom Penh Post, “Poverty persisting in Laos despite economic growth”, 2 April 2019.
Available from www.phnompenhpost.com/business/poverty-persisting-laos-despite-economic-growth.
United Nations, Committee for Development Policy, “‘Impact Assessments’: What happens when a
country graduates from the LDC category?”. Available from www.un.org/ldcportal/impactassessments-what-happens-when-a-country-graduates-from-the-ldc-category.
OHCHR, “Realizing Human Rights through Government Budgets”, 2017, p. 12. Available from
www.ohchr.org/Documents/Publications/RealizingHRThroughGovernmentBudgets.pdf.
World Bank, “Lao PDR Public Finance Management Reform Grant”, project information document,
4 September 2018, p. 6. Available from http://documents.worldbank.org/curated/en/
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