Introduction
The Lao People’s Democratic Republic became a partner country of Luxembourg’s Development Cooperation in 1997 and a general cooperation agreement with the Grand Duchy of Luxembourg was signed in 2000. Since then, Luxembourg’s Development Cooperation has supported activities focusing in the sectors of health, vocational education and training in tourism and hospitality, and integrated local development in the provinces of Vientiane, Bolikhamxay and Khammouane. In 2016 governance was added as an additional target sector, and Bokeo as an additional target province. Since 2003, various Indicative Cooperation Programmes (ICPs) have been signed, and the fourth ICP covers the 2016-2020 period.
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Although in 2020 Laos was relatively untouched by the health problems linked to the COVID-19 pandemic, nonetheless it had a significant impact on the country’s economic growth, particularly in the services sector, notably the tourism and hospitality sector. Despite the difficult context in 2020, ongoing projects were swiftly adapted to these new circumstances and continued to provide important services to their counterparties and target beneficiaries, albeit at a slower pace. These efforts include the process of identifying a new ICP and the rapid implementation of a response to COVID-19.
In 2020, the emphasis was placed on identifying new partnerships in Laos with the signing of an agreement between the Thailand International Cooperation Agency (TICA) and LuxDev. A new partnership with Swiss Development Cooperation (SDC) was concluded to strengthen the local development programme, and in particular the steering of new local governance and climate change interventions. A potential partnership between LuxDev and FENU was explored with the Local Climate Adaptive Living Facility (LoCAL) initiative. This is a mechanism for integrating climate change adaptation into the planning and budgeting systems of some villages targeted by the rural development programme. Luxembourg joined the Team Europe initiatives linked to the Green Deal issue and continued to participate actively in joint European programming.
Bilateral inter-university cooperation between Luxembourg and Laos was extended until 2024. The aim of the project, which began in 2017, is to promote the rule of law in Laos by supporting and enriching both the research and teaching environment, while emphasising the correct application of legal rules.
Priority areas of intervention
- No poverty
- Good health and well-being
- Quality education
- Reduced inequalities
Development of PDA
Emergency COVID-19 health interventions and food security interventions at central and provincial levels have constituted an invaluable safety valve for beneficiaries. With a contribution of EUR 3 million, Luxembourg’s Development Cooperation was among the first donors to respond rapidly and effectively to the health and economic needs linked to the pandemic.
Through the WHO, Luxembourg’s Development Cooperation helped to strengthen the national coordination system and provided screening equipment to the Institut Louis Pasteur of Laos, a long-standing partner, as well as protective equipment in the four intervention provinces to respond to the most urgent needs. In addition, emergency food aid was provided to the most vulnerable groups.
Reference data
- Population (MIO): 7.3
- GNI (per resident): USD 7980
- Human Development Index (HDI): 137/189
- Life expectancy: 67.9
- Indicative Cooperation Programme: 2016-2020
Key achievements 2020
- EUR 3 million reprogrammed for the COVID-19 response;
- The process of identifying the new ICP has progressed well in 2020;
- The 3rd funding cycle of the joint participatory mechanism for governance and delivery of health services in the provinces has been successfully implemented;
- Short- and long-term national training programmes for doctors, nurses and health managers are in progress
Sector breakdown
2020
