Laos draws on blueprint to ease poverty

Beijing's success in boosting livelihoods points policymakers in right direction

China's experience in poverty alleviation provides useful guidance for Laos as the southern neighbor strives to lift more of its people out of penury against the backdrop of the economic strains brought by the pandemic.

Experts said the landlocked country, which remains one of the poorest in Southeast Asia, should build on its existing cooperation with China to tackle socioeconomic challenges, which have been exacerbated by the COVID-19 pandemic.

"China is the first country to achieve the first Millennium Development Goal. It is very impressive and there are many things to learn from China's experience," said Phouphet Kyophilavong, associate professor and dean of the Faculty of Economics and Business Management at the National University of Laos in Vientiane.

One thing that Laos can learn from China is continuous economic reform and innovation to promote growth, he said.

China's policymakers try to ensure that "even the poor can …benefit from the economic growth," Kyophilavong said.

China has been sharing its experience with other countries, including Laos, in recent years. On March 30, construction began on China-funded rural poverty alleviation facilities in Laos, according to the Chinese embassy in Vientiane.

At the groundbreaking ceremony for the construction of the facilities, Chinese Ambassador to Laos Jiang Zaidong said Beijing has been proactively participating in global poverty reduction efforts. Citing a World Bank report, he said the China-led Belt and Road Initiative could lift 7.6 million people from extreme poverty and 32 million from moderate poverty globally.

China proposed the Initiative on Cooperation on Poverty Alleviation in East Asia during a summit of the ASEAN Plus Three grouping in 2014, with projects in Laos, Cambodia and Myanmar.

Under the initiative, China and Laos have been carrying out poverty alleviation projects in Ban Xor village, some two hours' drive north from the national capital, and in a village in the northern city of Luang Prabang since September 2017.

China announced at the 23rd ASEAN Plus Three Summit in November last year that it will continue carrying out poverty alleviation projects in the three neighboring countries. ASEAN Plus Three refers to the Association of Southeast Asian Nations, plus China, Japan and South Korea.

Significant progress

Noting that it is good for Laos and China to cooperate on the poverty issue together, Kyophilavong pointed out that Laos has also made significant progress in poverty reduction and that China's experience will be helpful in further gains.

Laos has seen its poverty rate more than halve in less than 30 years, falling from 46 percent of the population in 1993 to 18 percent in 2019, according to the World Bank.

In February, Laos was recommended by the United Nations Committee for Development Policy to graduate in 2026 from the category of least developed country with an extended five-year preparatory period.

Jakapong Prapanjit, program manager of Sustainable Development and Responsible Investment Program at global anti-poverty charitable organization Oxfam in Laos, said Laos' progress in poverty reduction can be mainly attributed to foreign investments and improved infrastructure in rural areas.

In addition, Prapanjit cited better welfare and government services that are being provided to a wider population than before.

However, Prapanjit said the pandemic has slowed down the country's progress in poverty reduction, especially in terms of non-farming employment. He said this is because many people, especially those in the tourism and service sector, have lost their jobs.

Khamphy Khammavong, program manager of Oxfam's Citizen Participation and Civil Society Development and Gender Justice Program, said the government should improve social protections.