Swiss Development Cooperation in Lao PDR SDC Mekong Region Cooperation Strategy

Transcription

1 Swiss Development Cooperation in Lao PDR 1

2 Imprint Editor: Marianne Gadeberg Design: Mactron Media, Tanakit Cover Photo: Touravanh Vientiane, March Swiss Agency for Development and Cooperation (SDC)

3 Ms. Bouanmany (front, right), recipient of an SDC-funded scholarship, shares images of her experiences at school with her family in Xayaburi province, Lao PDR. Photo by Touravanh 3

4 Editorial SDC s new strategy for the Mekong region () seeks to address the main development challenges that Lao PDR will face during the coming years. Support of new employment opportunities and, specifically, vocational skills development is a new area of work for SDC in Lao PDR. The open borders of the upcoming ASEAN Community, scheduled to transform ten Southeast Asian nations into a single market by 2015, represent both potential and risk for the Lao economy. Development of vocational skills in sectors where Lao PDR may be able to compete with other countries in the region will make it easier for Lao youth to find gainful employment within their own country. SDC has been a long-standing supporter of agricultural development. Over the coming years, we will focus on the various challenges of ensuring food security, strengthening farmers organizations and quality services for agriculture, and securing the rural population s access to land. The landscape in Lao PDR is changing very rapidly with deforestation and the expansion of industrial plantations. SDC wants to ensure that Lao people know their rights, that land use planning considers the different needs of rural communities, and that investments are conducted in ways that are beneficial to the population and to the Lao economy in the long term. 4 Governance remains a key precondition for the sustainable development of the country. From our own experience in Switzerland, we know the importance of a strong national assembly and a vocal civil society that can contribute to shaping and implementing policies. We will continue to support the Lao government in strengthening governance at the village and district level, where the communities and authorities have the most direct relationship with communities and where improvements of public services will lead to concrete results. Swiss Agency for Development and Cooperation (SDC)

5 Lao PDR is part of SDC s regional program, which aims to ensure that Cambodia, Lao PDR, Myanmar, and Vietnam become equal partners in the ASEAN Community. We are convinced that these countries can learn from each other and from other, more advanced, ASEAN nations. Facilitating exchange and learning between Cambodia, Lao PDR, Myanmar, Vietnam, and other ASEAN nations will provide Lao PDR with relevant knowledge and experience and contribute to strengthening human and institutional capacities. SDC collaborates closely with the different institutions of Lao society, including the government, the national assembly, non-profit associations, farmer organizations, and other organizations of the private sector, and foster collaboration between these different institutions. I hope that we can contribute to a sustainable development process, which benefits first and foremost the poor and disadvantaged segments of the population, especially women and ethnic groups. I am looking forward to the implementation of our strategy, to the collaboration with our partners, and to see concrete results and improvements to the living conditions and development opportunities of Lao people! Ruth Huber Development Counselor Regional Director, SDC Program for the Mekong Region 5

6 Farmers in the rural uplands of northern Lao PDR. Photo by Touravanh 6 Swiss Agency for Development and Cooperation (SDC)

7 SDC s Program in the Mekong Region Background SDC is Switzerland s international cooperation agency within the Federal Department of Foreign Affairs of the Government of Switzerland. In collaboration with other federal offices, SDC is responsible for the overall coordination of cooperation activities in developing countries, cooperation with Eastern Europe, and the humanitarian aid delivered by the Swiss Confederation. As a long-standing actor in the Mekong region, SDC aims to reduce poverty, support equitable and sustainable development, and foster democratic governance. SDC aspires to support governments and non-government actors in Cambodia, Lao PDR, Myanmar, and Vietnam (the so-called CLMV countries) to become equal and empowered partners within the ASEAN Community. SDC s development cooperation strategy is two pronged: First, country programs address challenges in Cambodia, Lao PDR, and Vietnam, according to each country s specific context. Second, SDC s regional supranational program focuses on broader, shared challenges in the Mekong region, including in Myanmar. Program To address challenges facing the entire Mekong region, the regional supranational program has three thematic pillars. These are strategically and thematically linked to SDC s interventions in Cambodia, Lao PDR, and Vietnam. Agriculture and Food Security SDC will support smallholder farmers to have secure and equitable access to and control over land and forests. SDC will also promote agricultural practices that can help farmers respond to market demands and withstand climate change and natural disasters. 7

8 Local Governance and Citizen Participation SDC will contribute to inclusive and equitable local economic development and support improved governance of cross-border value chains. SDC s goal is to foster better coherence between national and regional policies and regulations and to improve cooperation between public, private, and civil society actors. SDC will also contribute to the governance of water resources in the Mekong River basin. Employment and Vocational Education and Training SDC will support improvement of vocational training and education, helping workers find and keep jobs in preparation for increased competition in the impending ASEAN Community. SDC will also help ensure that governments and employers know and respect migrant workers rights. Partners A wide range of partner organizations implement SDC s programming in the Mekong region, including government agencies, bilateral and multilateral development organizations, and international and local non-government organizations. Budget The budget is CHF 205 million. Of this, around CHF 22.5 million (11%) will be spent in Vietnam; around 55 million (27%) in Cambodia; around 86.5 million (42%) in Lao PDR; and around 32 million (15%) at the regional level. CHF 10 million is reserved for management costs and other issues. 8 Swiss Agency for Development and Cooperation (SDC)

9 Budget for Mekong Region 5% 15% Vietnam 11% Cambodia Lao PDR 42% Regional 27% Management Cost/Other 9

10 SDC Programming in Lao PDR About SDC in Lao PDR SDC has supported development projects in Lao PDR since In 2006, SDC opened a country office in Vientiane to oversee Switzerland s development cooperation activities in the country. Since 2008, the Lao country office has also served as the regional office from where SDC coordinates its programming in Cambodia, Lao PDR, and Vietnam. Results from the Strategy Period During the previous strategy period, from 2007 to 2012, SDC s programming in Lao PDR focused on strengthening governance, rural livelihoods, and natural resources management. With additional, thematically earmarked funds, SDC contributed to improving access to water resources. 10 Swiss Agency for Development and Cooperation (SDC)

11 Governance SDC supported the Lao government to reform its public administration at the central and local levels, helping to ensure improved, more accessible, and more transparent delivery of services to the public. With SDC s help, more citizens were able to participate in the planning and implementation of public investments, granting local communities the influence necessary to ensure that their needs are being met. Now, more than half a million people have better access to health centers, schools, and clean water. SDC contributed to initiatives that offer Lao citizens education on legal rights and responsibilities related to land. As a result, more than twenty thousand people are better able to manage land-related conflicts. SDC also facilitated improved access to national socioeconomic information and helped to establish public fora where land related-issues, such as use and allocation, can be discussed. Rural Livelihoods and Natural Resources Management SDC helped Lao farmers improve the way they produce and market agricultural products, enabling farmers to overcome food shortages, diversify production, and increase their incomes. Seventeen thousand households, in particular from ethnic minority groups, are now using new farming techniques that allow them to rely on farming rather than on havesting food from forests. Thousands of farmers have begun vaccinating their livestock, increasing the number of livestock by 50 percent in the project area. The establishment of producer and trading groups has helped coffee, vegetable, and chili producers increase their incomes. SDC has contributed to increasing access to and sharing of information in both English and Lao languages by establishing LaoFab, Lao LINK and Lao 44, virtual discussion platforms and document repositories. 11

12 A female student is repairing an engine at a technical vocational education college in Vientiane, Lao PDR. Photo by Adrian Gnägi 12 Swiss Agency for Development and Cooperation (SDC)

13 Strategy Period Development Context During recent decades, Lao PDR has significantly alleviated poverty: Between 1992 and 2008, the share of the population living on less than US $2.00 a day fell from 46 to 28 percent. However, not everyone is benefitting from the country s current economic growth. Citizens have little influence on national policies and decision making, nor do they have any opportunity to ensure that their concerns are considered and needs met. Lack of public services such as roads, clean water, and health care affects especially the poor in remote rural areas, ethnic minorities, and female-headed households. These minority groups are also the most impacted by a weak land tenure system, wherein customary land rights are not recognized. SDC considers improvements in governance the most important factor for Lao PDR to be able to achieve equitable, inclusive, and sustainable growth. Agriculture is still an important pillar in the Lao economy: The sector accounts for 33 percent of the country s GDP and 70 percent of the population rely on agriculture for their livelihoods. Yet, the agricultural sector remains underdeveloped, and poverty is widespread among vulnerable groups. More than 30 percent of children under the age of five are underweight, and more than a fourth of the population overall is malnourished. That s why SDC will continue its long-standing support to agricultural development and help farmers especially those from ethnic minorities achieve food security and sustainable livelihoods. Lao PDR s current macroeconomic growth is driven mainly by investments in the natural resources-based industries, such as hydropower and mining, which do not create many jobs for Lao people. Large foreign direct investments are increasing the competition over land, and a grow- 13

14 14 ing number of people are driven out of sustenance agriculture and into wage jobs in the industry and services sectors. In addition, Lao PDR is slated to enter into the ASEAN Community in By then, the country will become an actor in a common workplace and open market, which will encompass ten states and 600 million people. Skilled labor moving freely across borders will increase competition for jobs, and Lao workers will need to strengthen their skills to be able to compete. Lao PDR faces a formidable challenge in diversifying its economy to create employment for young Lao people entering the job market. To address this challenge, SDC will contribute to strengthening the country s vocational education and training system. Swiss Agency for Development and Cooperation (SDC) SDC Programming Switzerland seeks to contribute to poverty reduction, support equitable and sustainable development, and foster democratic governance in Lao PDR. Local Governance and Citizen Participation SDC seeks to promote good governance through a two-pronged approach: supporting the Lao government to deliver more effective and efficient public services to the poor and vulnerable, while promoting citizens participation in the development process. In support of the Lao government s efforts to improve its delivery of public services, SDC continues to fund capacity building for district authorities, helping them to fulfill their mandate to deliver transparent, accessible, and responsive public services to the rural poor. In addition, SDC continues its financial support to villages in poor districts, ensuring that rural communities have the opportunity to define and prioritize their needs and make improvements to public infrastructure, such as new or improved schools, roads, and water supply schemes.

15 In response to the limited possibilities for citizens to participate in decision-making processes, SDC will strengthen its focus on partnerships and increase its funding to projects that directly support emerging civil society actors. SDC will support Lao civil society groups to become registered as non-profit associations, contribute to their organizational development, and help them seize a greater role in national development. In addition, SDC will support The National Assembly of the Lao PDR to foster dialogue between parliamentarians and their constituents and to enable Lao citizens to better voice their opinions on national governance, legal concerns, and policy issues. SDC expects this new partnership to contribute to strengthened checks and balances in the political system. access to the land they depend on and have traditionally considered theirs. To address this challenge, SDC will contribute to improved land and forest governance through regional interventions, which will complement efforts to improve governance at the national level in both Lao PDR and Cambodia. SDC will both contribute to improving all stakeholders skills and knowledge on land-related issues and promote information exchange, dialogue, and improved processes in policy making related to land. By supporting trained district staff to improve land use planning at the village level, SDC aims for land, agro-biodiversity, and other natural resources to be used and maintained in sustainable ways. An influx of foreign direct investments in recent years has led to an increase in land concessions for commercial projects, such as rubber plantations. The increased competition over land is putting further pressure on local livelihoods, as local people are losing 15

16 16 Agriculture and Food Security Seventy percent of the population in Lao PDR relies on agriculture for food and income. While the Lao government has a clear objective to reduce poverty, a number of factors are making it difficult for smallholder farmers to achieve sustainable livelihoods, including government policies, relocation of villages, limited extension services, increased land concessions for commercial agriculture or forestry, lack of access to financial services, and limited information about markets. By promoting commercial production and fair and stable access to markets, SDC supports Lao farmers to achieve food security and better livelihoods. SDC provides gender-sensitive support to the development of value chains, strengthens village entrepreneurs, promotes private providers of rural advisory services, and supports emerging farmer organizations. Swiss Agency for Development and Cooperation (SDC) Increasing the number of farmer organizations will help expand the diversity of actors who are able to voice their demands and assume an active role in the national development process. SDC implements its projects in partnership with the Ministry of Agriculture and Forestry, while it at the same time supports collective and individual private initiatives, such as agricultural extension service providers. SDC maintains focus on the vulnerable, poor, and mostly ethnic minority farmers, who live mainly in the northern uplands of Lao PDR. Through improved management of soil and water, promotion of agro-biodiversity, and production of more nutritious food, poor farmers will be better prepared to cope with the ongoing changes in land use, climate variability, and the negative effects of certain national policies. Finally, SDC supports the clearance of unexploded ordnances. By contributing to more efficient survey methodologies and improved prioritization of clearance activities, SDC helps to ensure that larger areas of agricultural land become safe to use.

17 Employment and Vocational Education and Training In 2013, SDC initiated its support to the Lao government s ongoing reform of the national vocational education and training system. SDC will fund projects that can create new employment opportunities, allowing Lao people to find and keep jobs, earn higher incomes, and benefit from national economic development. In partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), SDC will support both long-term vocational training as well as shorter, informal training courses, which will target the illiterate and ethnic minorities that do not speak the national language. Affirmative action principles will ensure that students from ethnic minorities, who generally are excluded from the school system, have access to vocational education and training. SDC will collaborate with private sector institutions to ensure that the training courses offered match the demands of the market and that courses combine theory and practice in a relevant manner. Levering its partnerships with the private sector, SDC will also promote corporate social responsibility and advocate for improved working conditions. To create new job opportunities, SDC will support projects that allow local communities to increasingly benefit from tourism. The tourism sector is growing, and has a high potential to generate more jobs. SDC will support Lao people in rural areas to develop services and produce goods that can be sold in the tourism sector, such as clean and organic agricultural products for hotels, handicrafts for souvenir shops, and communitybased services, such as guiding or homestays. SDC expects that its support to the vocational education and training system will result in an additional two thousand students graduating from formal training courses and another six thousand students completing short training courses by

18 Cross-Cutting Themes Gender equality and social inclusion: SDC will consider how women, men, and ethnic minorities are affected by and benefit from its project interventions. Many projects will be designed to allow for planning, budgeting, implementation, and monitoring that specifically promotes the rights of women and ethnic minorities. In addition, SDC will strengthen gender equality and ethnic diversity among its own staff and within its direct partner institutions. Good governance: SDC will integrate the principles of accountability, participation, non-discrimination, efficiency, effectiveness, and transparency into all supported projects. Climate change: Farmers that depend on sustenance agriculture are most vulnerable to climate change and natural disasters. SDC will integrate the effects of climate change, adaption and mitigation measures, and disaster risk reduction approaches into its programming. Conflict-sensitive program management: SDC seeks to carefully monitor and manage any potential tension related to its project interventions, especially when working with sensitive topics such as land governance. 18 Swiss Agency for Development and Cooperation (SDC)

19 Partners SDC coordinates its projects with the Lao government. For the implementation of projects, SDC relies on a wide range of partner organizations, including government agencies at the central and decentralized level, bilateral and multilateral development organizations, international non-government organizations, and local organizations, especially non-profit associations and farmers organizations. SDC plans to strengthen its collaboration with other development partners and to co-finance activities with bilateral and multilateral organizations, contributing to coherent approaches and strengthening development institutions joint leverage. Contribution to the Roundtable Process SDC will remain engaged in national-level policy and partner dialogue, contributing with its experience in the discussions of several sector working groups and leading the work of several sub-sector working groups. 19

20 Resources Allocation SDC Disbursements in Lao PDR Actual disbursements Projected disbursements : CHF 5.3 million 2014: CHF 15.0 million 2007: CHF 8.1 million 2015: CHF 18.0 million 2008: CHF 8 million 2016: CHF 18.0 million 2009: CHF 10.4 million 2017: CHF 18.0 million 2010: CHF 12.2 million 2011: CHF 16.5 million 2012: CHF 15.1 million 2013: CHF 18.2 million SDC Disbursements in Lao PDR Swiss Agency for Development and Cooperation (SDC)

21 Children from the Prai ethnic minority group in Xayaburi Province, Lao PDR. photo by Touravanh 21

22 22 Contact Swiss Cooperation Office for the Mekong Region and Lao PDR House No. 192/1, Sibounheuang Road Ban Sibounheuang, Chanthaboury District, P.O. Box 5666 Vientiane Capital, Lao PDR Phone: Website: Blog: Swiss Agency for Development and Cooperation (SDC)

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24 24 Swiss Agency for Development and Cooperation (SDC)