Laos - IFAD
The Context
The Lao People’s Democratic Republic (Lao PDR) has experienced rapid economic growth in recent decades, driven by hydropower, mining and tourism.
Though national poverty has declined steadily, almost one in five Laotians still live below the poverty line. Rural groups in remote, mountainous areas in the north and east are particularly affected.
While agriculture is the mainstay of the economy, about half of households are subsistence farmers. They face a range of constraints to increasing production, including poor infrastructure, declining soil fertility, lack of irrigation, and limited access to technical support and financing. Most use traditional farming methods and lack new technologies and skills to improve yields.
Lao PDR is the most direct overland transport route between its neighbours, including Viet Nam, Myanmar and Thailand. Its strategic location provides an opportunity to develop products and raw material for high-value markets in these countries. However, this requires improving the infrastructure connecting rural areas and urban markets.
Increasingly frequent floods caused by climate change impact densely populated areas along the Mekong River. Upland areas and the southern region are increasingly exposed to higher temperatures, prolonged droughts and irregular rainfall. These changes threaten agriculture, water resources and biodiversity, putting the livelihoods of rural communities at risk.
The Strategy
Since 1979, IFAD has invested in rural people in Lao PDR, empowering them to increase their food security and incomes, build resilience to shocks, expand their businesses and take charge of their own development.
IFAD-supported investments improve rural people’s access to financial services and markets, climate-smart agricultural technologies and better nutrition. We scale our impact by co-investing with farmers, their organisations and the private sector.
Country Facts
- 62% of Laotians live in rural areas, the majority of whom depend on agriculture and natural resources for survival.
- Almost 1 in 3 rural people experience multidimensional poverty
- Hydropower is Lao PDR’s main electricity source.
Experts
Head of MCO and Country Director
[email protected]Programme Officer
[email protected]National Coordinator
[email protected]