LAO PEOPLE’S DEMOCRATIC REPUBLIC

NATIONAL ROUND TABLE PROCESS

The 9th NSEDP Financing Strategy Structured Dialogue

 

Vientiane, 14 October 2021– Under the chairmanship of H.E. Vice Minister of Planning and Investment Phonevanh Outhavong and the UN Resident Coordinator to Lao PDR, Ms. Sara Sekkenes, a first ‘Structured Dialogue’was convened to support the development of a financing strategy for the 9th National Socio-Economic Development Plan 2021-2025 (NSEDP). After more than half a year of technical work, this event closed the assessments and diagnostics phase of the process, by presenting research on the current financing landscape and investment needs.

In her opening remarks, H.E. Phonevanh Outhavong, Vice Minister of Planning and Investment said: “We are grateful for the partnership with the UN and all relevant sectors and partners involved in national planning, financing and long-term development goals. Their combined support enables the work towards developing a clear and practical plan to urgently address financial constraints and investment needs to achieve our national development priorities contained in the 9thNSEDP.This is of particular importance considering the limited development finance, economic difficulties brought on by the COVID-19 pandemic, additional investments required to address our national agenda and climate crisis, among others. We all agree that sustainable financing of development objectives cannot be achieved without a financing strategy that is evidenced-based, and most importantly engaging all relevant stakeholders in meaningful policy dialogues.”

The one and a half-day dialogue, the first in a series of three planned Structured Dialogues, discussed the main findings of the diagnostic phase and validated key findings from the assessments, which will form the backbone of the financing strategy development, before moving towards formulating practical and realistic financing options in the next phase.

The financing strategy development is led by the Ministry of Planning and Investment’s Department of Planning, with support from and consultation with the Ministry of Finance, Bank of Lao PDR, and relevant line ministries. The United Nations support this initiative through the Joint Programme on Financing Efficiency, officially launched in March 2021, aiming at strengthening the integration between 2 planning, financing, and budgeting for the achievement of the 9thNSEDP priorities and the SDGs. This joint initiative, bringing together three ministries including Planning and Investment, Health and Finance and three UN agencies namely UNDP, UNFPA, and UNCDF, provides technical and coordination support to the Government of Lao PDR across the three main stages of the Integrated National Financing Framework implementation: diagnostics of the country’s financial constraints, formulation of credible and realistic policy options, and monitoring and evaluation of progress towards the implementation of a holistic approach to development finance. The Structured Dialogue also built on a climate finance review by UN DESA.

Commenting on the validation of key assessments of the structured dialogue today, Ms. Sara Sekkenes, UN Resident Coordinator to Lao PDR said: “This dialogue is a valuable step in progressing through one critical stage of the Integrated National Financing Framework development in Lao PDR to support more efficient and effective use and optimisation of available development finance, as well as mobilisation of other sources of finance in support of national priorities and the 2030 Agenda. The potential of strengthening Lao PDR’s national capacity for effective management and allocation of development finance can leave a positive mark in the country’s economic recovery and growth and realisation of the Sustainable Development Goals.”

A second Structured Dialogue, discussing possible policy options that could be part of the Financing Strategy, is planned for November 2021, prior to the 13thHigh-Level Round Table Meeting.

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