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LAO PEOPLE’S DEMOCRATIC REPUBLIC: COUNTRY PARTNERSHIP STRATEGY
                           FY12-FY16

                                   CHAIR’S SUMMING UP

                                 Meeting of Executive Directors

                                           March 8, 2012

      Executive Directors discussed the joint IDA/IFC Country Partnership Strategy (CPS) for
Lao People’s Democratic Republic (PDR) (IDA/R2012-0028[IFC/R2012-0031]).

       Directors commended the Lao authorities for the significant development progress made
including a remarkable decline in poverty in the country. Directors noted the remaining
challenges related to achieving the Millennium Development Goals by 2015, and welcomed the
CPS and the focus on human development indicators. They recognized the work on inclusive
development and progress on tracking gender disparities.

        Directors acknowledged that the CPS pillars target Lao PDR’s main development
challenges and are aligned with the Government’s national development strategy. Directors
noted that the country’s abundant natural resources provided an opportunity for growth, but
underscored the importance of developing a growth model that balances the resource and non-
resource sectors, as well as ensuring sustainability of natural resource management. The risks
associated with failing to diversify the economy and enhancing the competitiveness of the
private sector were also highlighted. Directors inquired about the trans-boundary impacts of
hydropower development in Lao PDR and stressed the importance of robust environmental and
social safeguards in extractive industries. The importance of climate resilience in infrastructure
development was also underscored.

       Directors noted the implementation capacity constraints that Lao PDR faces and the
potential risk they pose, if not carefully managed. In this regard, they emphasized the need for
the Bank to strengthen its oversight and monitoring capacity through technical assistance and
advisory services.

        Directors welcomed the complementarity of Bank and IFC programs and the
programmatic approach to projects. They urged the Bank group to support financial sector
development and financial inclusion. The importance of partnerships within the region was
noted, and Executive Directors encouraged the Bank group to take a leadership role in partner
coordination.




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 This summary is not an approved record.