The Lao government will set up human resource development and cooperation with development partners to ensure Laos is able to graduate from the Least Developed Country Category in 2026.

Laos is among the least developed and poorest countries in Asia, but significant economic growth in the past decade has benefited the country. According to the Lao Ministry of Foreign Affairs, Minister of Foreign Affairs Saleumxay Kommasith stated that during the triennial review of the United Nations Committee for Development Policy (CDP) convened early this year, the Lao PDR has met all criteria for LDC graduation and has been recommended for graduation with 5 years preparatory period effectively setting the graduation date by 2026. 

Since 2000, the Lao government had a long-term goal of achieving LDC status, through strong commitment and sustained development in implementing National Socio-economic Development Plans. However, Laos’ removal from the LDC list is not an end in itself, and it does not suggest that no poverty remains but indicates the hard earned achievements of the government in many key areas, Saleumxay said.

The Covid-19 pandemic and its containment measures have affected livelihoods in Lao PDR. While efforts to contain the pandemic have been largely successful, negative economic impacts have been felt. However, given the current circumstances, concerns persist because the data assessed by the review meeting did not fully cover the impacts of the pandemic.

The Lao PDR will now need to prepare for graduation whilst simultaneously planning for post COVID-19 recovery and implementing policies to address the socio-economic fallout from the ongoing, unpredictable global pandemic.

Against this backdrop, continued support and assistance from the international community is as much necessary as before the review, especially in the crucial transition period.

UN Resident Coordinator to the Lao PDR, Ms Sara Sekkenes, said “Graduating from the group of Least Developed Countries has been a development goal for Laos for many years, one that has been emphasised in the country’s national socio-economic development plans and policy priorities.” The CDP will continue to monitor the development progress of Lao PDR as it moves towards graduation and provide independence advice and inputs to ECOSOC on international cooperation for development, considering any changes that would warrant adjustment to the anticipated graduation timetable.

H.E Mr. Bounleua Phandanouvong, Deputy Minister of Foreign Affairs, Lao People’s Democratic Republic expressed at the Seventy-seventh session of the Economic and Social Commission for Asia and the Pacific: “This will be a challenging time for my country as we are trying to contain the pandemic, revive our economy and maintain economic growth so that we can maintain all criteria for LDC graduation.”