Development Cooperation Framework

From aid effectiveness in 2006 to development effectiveness in 2014

2006 – Officially signing of the Vientiane Declaration on Aid Effectiveness

The key element of the aid and development effectiveness framework for Lao PDR to support the realization of the NSEDP goals and objectives is the Vientiane Declaration on Aid Effectiveness. This Vientiane Declaration was signed by the Government of Lao PDR and 22 other development partners at the Round Table Meeting in November 2006. It has subsequently been signed by an additional three development partners.

The coordination of ODA in the country follows the principles of the Vientiane Declaration, where Government and Development are responsible and accountable for their actions and committed to working together. The Declaration also ensures Government leadership of the development agenda, on behalf of the people of the Lao PDR.

Similar to the Paris Declaration on Aid Effectiveness, but with a specific focus on the Lao PDR, the Vientiane Declaration aims to improve the effectiveness of aid based on the five key principles, which are

    • Increased country Ownership over policy and plan development, implementation and aid coordination
    • Better Alignment of Development Partner’s support to national policies and plans, and increased support to and use of national systems
    • Harmonisation and Simplification of Development Partner’s procedures and activities
    • Managing for Results in order to ensure effective use of resources
    • Both Government and Development Partners have Mutual Accountability for progress

2007 – preparation of the Vientiane Declaration Country Action Plan

In 2007, the Country Action Plan (CAP) was prepared to accompany the Vientiane Declaration (the VDCAP). This VDCAP was developed jointly by Government of Lao PDR and Development Partners. The CAP focuses on the goals, activities and strategies used to progress development in Lao and is based on the agreements and principles of the Vientiane Declaration.

The Vientiane Declaration and Country Action Plan (VDCAP) are monitored through:

  1. Sector Working Groups
  2. VD/CAP Review Meeting
  3. Round Table Meeting/Round Table Implementation Meeting.

A secretariat monitors progress against VDCAP targets and it is led by DIC and comprises Department of Planning – Ministry of Planning and Investment, Department of International Organization – Ministry of Foreign Affairs, the Ministries of Education, Public Works and Transportation, Health, Agriculture and Forestry, and Finance as well as World Bank, UNDP and the EC.

2008 – 2010 – The review of the VDCAP implementation and its revision

In 2008, the review of the VDCAP implementation was carried out by the VDCAP Secretariat in consultation with all signatories and other relevant stakeholders. This review highlighted the relevance and the importance of the VDCAP. It pointed that the implementation of the VDCAP was on track. However, the pace of the progress was still slow and some actions including their indicators needed to be updated and redefined to capture what happened at country, regional and global levels.

Therefore, in 2010 the VDCAP was also revised in order to incorporate commitments from the Accra Agenda for Action. This VDCAP revision was carried out due to the fact that the Government of Laos is also a signatory to the Accra Agenda for Action, signed on 4 September 2008.

The Accra Agenda fills a number of gaps in the implementation of the Paris Declaration and gives more concrete expression to the issues of national ownership and capacity development.

The Accra Agenda addresses new areas, including predictability of aid, conditionality, the increasing diversity of aid providers with an emphasis on south-south cooperation and solutions, the role of civil society and state-citizen mutual accountability.

For more information about this revision please see the following documents:

2008 and 2011 – OECD DAC surveys

Lao PDR carried out two formal OECD Development Assistance Committee Surveys (2008 and 2011) and one OECD DAC survey which conducted in 2006 buy was not submitted to the OECD DAC for global review. However, the findings from the first OECD DAC survey 2006 provided important baseline data to develop the 2007 CAP targets. The findings from the 2008 OECD DAC survey provided important input into the preparation of VDCAP report, which was presented to the VDCAP Review meeting in 2008. Both surveys highlighted that there are positives progresses in some areas such as the country ownership, donor harmonization and alignment and mutual accountability. However, some other areas need special attentions such as the use of country systems, a concrete steps for managing for results, monitoring and evaluation, widen stakeholders involved in the aid effectiveness and others.

For more information about the surveys please see the following documents:

    • 2008 official country report for the OECD DAC survey
    • 2011 official country report for the OECD DAC survey

2013 – a revision of the 2010 VDCAP: integration of the development effectiveness framework

In 2013, DIC with VDCAP Secretariat carried out a revision exercise of the 2010 VDCAP taking into account the current development of aid effectiveness agenda as highlighted in the Busan Partnership for Effective Development Co-operation. This Busan Partnership for Effectiveness Cooperation marks a critical turning point in development co-operation as it is a declaration for the first time establishes an agreed framework for development co-operation that embraces traditional donors, South-South co-operators, the BRICS, civil society organisations and private funders.

This revised VDCAP consists of 13 actions and 27 indictors classified under five principles as per the Paris Declaration on Aid Effectiveness. Some indicators reflect commitments and actions as specified under the Busan Framework.

    • A revised VDCAP (2011-2015)

2014 – VDCAP monitoring and reporting

The VDCAP Secretariat has currently preparing the VDCAP monitoring framework which is designed to guide all stakeholders in Lao PDR for implementing, monitoring and reporting on the VDCAP progress to date. It is intended to provide country stakeholders with an understanding of what participation in the monitoring framework of VDCAP entails and how stakeholder collect, process and submit their data in practice, working closely with their relevant members and other stakeholders.

This VDCAP monitoring framework will be uploaded once it is finalized.