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Poverty reduction in the Northern provinces of Laos

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Tiêu đề Poverty Reduction In The Northern Provinces Of Laos
Tác giả Alounxai Sounnalath
Người hướng dẫn Prof. Dr. Tran Thi Van Hoa
Trường học National Economics University
Chuyên ngành Business Administration
Thể loại Phd dissertation
Năm xuất bản 2023
Thành phố Hanoi
Định dạng
Số trang 199
Dung lượng 2,29 MB

Cấu trúc

  • 1. Rationale of the study (11)
  • 2. Research objectives and research tasks of the thesis (13)
  • 3. Research subject and research scopes (13)
    • 3.1. Research subject (13)
    • 3.2. Research scope (13)
  • 4. Research questions (13)
  • 5. Research methodology (14)
    • 5.1. Research approach (14)
    • 5.2. Data collection (15)
    • 5.3. Interview structure and procedure (16)
  • 6. Theoretical and practical contributions of the thesis (21)
    • 6.1. Theoretical contributions (21)
    • 6.2. Practical contributions (21)
  • 7. The structure of the thesis (22)
  • CHAPTER 1. LITERATURE REVIEW ON POVERTY REDUCTION (23)
    • 1.1. Research related to sustainable development goals and sustainable development (23)
  • goal 1 (0)
    • 1.1.1. Research related to sustainable development goals (23)
    • 1.1.2. Research related to Sustainable Development Goal 1 (SDG 1) (28)
    • 1.2. Studies related to poverty reduction (31)
    • 1.3. Research related to factors affecting poverty reduction (35)
  • CHAPTER 2. THEORETICAL BACKGROUND OF POVERTY REDUCTION (42)
    • 2.1. Concepts related to poverty, poverty reduction and SDGs (42)
      • 2.1.1. Concepts related to poverty (42)
      • 2.1.2. Concepts related to poverty reduction and SDGs (49)
    • 2.2. Related theories on poverty reduction towards SDG 1 (51)
      • 2.2.1. The Welfare, the Basic Needs, and the Ability needs (51)
      • 2.2.2. Modernization theory (53)
    • 2.3. Dimensions to measure poverty reduction towards SDG 1 (55)
    • 2.4. Good practices from foreign countries in poverty reduction towards SDG 1 . 50 1. Poverty reduction practices in Cambodia (60)
      • 2.4.2. Poverty reduction practices in Nigeria (62)
      • 2.4.3. Poverty reduction practices in Viet Nam (65)
      • 2.4.4. Poverty reduction practices in China (68)
  • CHAPTER 3. CURRENT SITUATION OF POVERTY IN NORTHERN LAO (72)
    • 3.1. Overview of Laos (72)
    • 3.2. Situation of poverty in Laos and northern Lao provinces (73)
      • 3.2.1. Pre-2010 period (73)
      • 3.2.2. Period from 2011 to present (75)
    • 3.3. Some aspects of poverty in Laos (81)
      • 3.3.1. Economic growth (81)
      • 3.3.2. Development of rural and urban disparities (83)
      • 3.3.3. Livelihood (85)
      • 3.3.4. Some aspects of social security (86)
      • 3.3.5. Environment (93)
  • CHAPTER 4. CURRENT ACTIVITIES OF POVERTY REDUCTION IN (95)
    • 4.1. Factors impacting poverty reduction (95)
      • 4.1.1. Subjective factors (95)
    • 4.2. Local government’s policies for poverty reduction (112)
      • 4.2.2. The results of implementing policies for poverty reduction (115)
    • 4.3. Poverty reduction activities from business stakeholders and others (121)
    • 4.4. Interview results (128)
    • 4.5. Achievements and limitations in poverty reduction in Northern Lao provinces (132)
      • 4.5.1. Achievements in poverty reduction in Northern Lao provinces (132)
      • 4.5.2. Limitations in poverty reduction in Northern Lao provinces (133)
      • 4.5.3. Some lessons and implications for poverty reduction in Northern Lao (134)
  • CHAPTER 5. RECOMMENDATIONS AND SOLUTIONS TO ENHANCING (139)
    • 5.1. Objectives and strategic development of Lao for property reduction (139)
      • 5.1.1. Objectives for property reduction at Northern provinces of Lao (139)
      • 5.1.2. Opportunities and challenges for property reduction in Lao (150)
    • 5.2. Solutions to enhancing poverty reduction in the Northern Lao provinces (159)
      • 5.2.1. Solutions from local government in poverty reduction in the northern Lao (161)
      • 5.2.2. Solutions from other stakeholders in poverty reduction in the northern Lao (167)
      • 5.2.3. Solutions from other organizations in poverty reduction in the northern Lao (169)
    • 5.3. Recommendations to Lao governement in poverty reduction in the northern Lao (171)
    • 5.4. Recommendation for home-based businesses in the Northern provinces in Laos (174)
    • 5.5. Conclusion (178)

Nội dung

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Rationale of the study

Poverty is a global issue affecting nearly every country, with varying degrees and measurements of severity Over 1 billion people live on just $1.25 a day for basic needs like food, medicine, and shelter, a condition deemed "Extreme poverty" by the World Bank (Anh Hoang, 2015) The United Nations has prioritized poverty reduction as a key millennium goal, particularly in developing nations Governments are crucial in crafting and executing effective strategies to alleviate poverty.

Laos, a country rich in natural resources and vast land, faces challenges with a small population that includes a significant percentage living in poverty To address this issue, poverty reduction is a central focus of the nation's socio-economic development strategy Since its liberation, the Lao Party and Government have prioritized poverty alleviation through targeted policies designed to enhance income opportunities and improve access to essential social services for the poor However, challenges persist, including varying development conditions across regions, decreasing international support for impoverished areas, the dual nature of globalization presenting both opportunities and risks for the poor, and the adverse effects of climate change on agriculture, which is the primary income source for many in rural communities.

Northern Laos comprises eight provinces: Phongsaly, Luangnamtha, Oudumxay, Bokeo, Luangprabang, Huaphanh, Xayabury, and Xiengkhuang As of the 2018/2019 period, the region had an average poverty rate of 20.7%, which is notably higher than Central Laos at 17.7% and slightly lower than Southern Laos at 21.5%, according to the latest report from the Statistic Bureau in 2020.

Poverty alleviation for sustainable development is a critical focus for many nations globally; however, the specific challenges of poverty reduction involving local communities in northern Laos remain largely overlooked by international policymakers and scholars While existing research primarily addresses Laos' broader poverty issues and touches on aspects like food security and living conditions, it lacks comprehensive studies on the multifaceted factors influencing poverty reduction and the effectiveness of community-based models Furthermore, previous investigations have predominantly concentrated on governmental approaches to poverty, neglecting the significant role that home-based businesses can play in developing effective solutions for poverty alleviation in the region.

Sustained poverty in Northern regions hampers economic participation, entrepreneurship, and human capital development, limiting local consumption and the growth of inclusive markets This situation exacerbates health, education, and socio-economic barriers, preventing communities from fully engaging in and benefiting from private sector-led economic activities and job creation Additionally, high poverty rates threaten long-term political and social stability in the North.

To effectively address poverty and its impact on social development in northern Laos, it is essential to evaluate the contributions of the government, NGOs, and home-based businesses in poverty reduction efforts Recent initiatives in sustainable development have highlighted participatory poverty reduction models within local communities, underscoring the importance of collaborative approaches in tackling this issue This research aims to provide a comprehensive assessment of these efforts and their outcomes.

The article "Poverty Reduction in the Northern Provinces of Laos" offers a comprehensive analysis of the poverty situation in Northern Laos and the broader Lao PDR, highlighting the strengths and weaknesses of sustainable poverty reduction models By utilizing business administration theories, the study examines barriers such as market access, finance, skills, and infrastructure that impact poverty outcomes in this region It aims to provide actionable recommendations for public and private sector interventions that promote pro-poor, market-based solutions and inclusive business models Additionally, the research explores opportunities for crowdsourcing ideas, enhancing value chain participation, and fostering impact investing to combat poverty By adopting a business-oriented perspective, the study aspires to develop targeted, market-driven strategies that effectively tackle the root causes of persistent poverty, ultimately fostering economic participation and entrepreneurship within vulnerable communities, thereby contributing to sustainable poverty reduction and bolstering private sector growth in Northern Laos.

Research objectives and research tasks of the thesis

The research aims to provide recommendations and implications for poverty reduction in the Northern Provinces of Laos To accomplish this objective, specific research tasks must be undertaken.

First, systematize the foundational theories related to poverty reduction towards sustainable development in the Northern provinces of Laos

This article assesses the current state of poverty reduction efforts among vulnerable communities and local producers in the northern provinces of Laos It aims to identify opportunities for enhancing market linkages and participation while clarifying both the achievements and limitations of these poverty reduction initiatives.

Third, develop practical, market-driven solutions and tools to stimulate pro-poor private sector investment and business models targeting poverty reduction outcomes in the Northern Laos region.

Research subject and research scopes

Research subject

Poverty reduction towards sustainable development in the Northern provinces of Laos.

Research scope

- Scope of content: the thesis focuses on main activities in poverty reduction in the Northern provinces of Laos toward SDG 1

- Scope of geography: 8 provinces of Northern Laos (Phongsaly, Luangnamtha, Oudumxay, Bokeo, Luang Prabang, Huaphanh, Xayabury, Xiengkhuang)

- Scope of time: Secondary data focus on the period 2000 to 2021 Recommendation apply for period from nơ to 2030

Research questions

The research focuses on answering the three following research questions:

(1) What is the dimentions to analyze poverty reduction?

(2) What are achievement and limitations of poverty reduction in the Northern provinces of Laos?

(3) How to conduct poverty reduction in the Northern provinces of Laos?

Research methodology

Research approach

This thesis employs a mixed-methods approach, integrating qualitative, policy, and action research to explore the complex issue of poverty in northern Laos By conducting structured and semi-structured interviews with local residents, business owners, and officials, the research captures nuanced human experiences behind statistical data, revealing the economic behaviors and challenges faced by individuals in accessing services and capital Key informant interviews with local leaders provide valuable insights into the regional context and the effectiveness of poverty reduction measures Furthermore, immersive ethnographic methods, including participant observation, allow researchers to engage with communities, uncovering tacit knowledge and social dynamics that influence the experience and understanding of poverty This comprehensive approach highlights the socio-cultural factors that shape poverty and the effectiveness of interventions aimed at alleviating it.

A doctoral thesis on poverty reduction in the northern provinces of Laos requires a comprehensive historical and policy analysis to contextualize the current poverty landscape and the evolution of alleviation efforts This analysis begins with a detailed historical review, examining socio-economic developments from pre-colonial to post-colonial times and their impact on poverty dynamics Key historical events, such as wars and economic changes, must be identified to understand their long-term effects on wealth distribution The analysis draws from diverse sources, including archival documents and oral histories Additionally, it involves a thorough policy analysis of poverty alleviation strategies in Laos, assessing the design and outcomes of various programs, as well as the legal frameworks governing economic activity Comparing Laos' policies with those of similar countries can reveal best practices, while incorporating perspectives from stakeholders—policymakers, aid workers, and affected communities—can illuminate the challenges of implementation The synthesis of historical context and policy effectiveness should lead to informed recommendations aimed at improving poverty reduction efforts, grounded in historical lessons and current realities Maintaining a critical perspective throughout is essential to acknowledge the complexities of poverty and the varied influences on policy success or failure, ultimately contributing valuable insights to academic discourse and offering a pragmatic roadmap for policymakers.

Data collection

The analysis utilized secondary data sourced from the Lao National Bureau of Statistics and the National Office for Poverty Reduction, alongside updated reports from the World Bank and various international organizations examining poverty in Laos, particularly in its northern provinces This research also incorporated data from local reports on poverty and assistance programs The objective was to elucidate the relationship between economic growth and poverty reduction in northern Laos over the past decade.

+ Primary data collected by interview

- In-depth interviews with international development project officials, review documents received from these organizations to determine the list of successful poverty alleviation projects

- In-depth interviews with project staff who designed and implemented selected projects

- interview multiple stakeholders including local officials, local partners, and beneficiaries (residents)

- Interview district departments in charge of national poverty reduction projects at selected locations in the Northern Lao provinces

- Interview the beneficiaries of these projects.

Interview structure and procedure

A study involving interviews with 60 home-based business owners in northern Laos reveals the significant role these enterprises play in poverty alleviation The businesses span various sectors, with 30% in agriculture, 20% in handicrafts, another 20% in food processing, and the remaining 30% in retail and services On average, they have been operational for seven years, ranging from under one year to over fifteen, indicating a mix of new and established businesses Most (70%) are family-run, relying on family labor, while 30% create local jobs for one to five workers Financially, these businesses generate a median annual revenue of around USD 2,500, with many owners stating that business income constitutes at least half of their household earnings Although primarily serving local markets, 25% have expanded to national and international markets, often leveraging online platforms.

Business owners encountered numerous challenges, such as limited access to financial services, difficulties in market access, and a lack of formal business education They also faced significant hurdles from seasonal income fluctuations and unreliable local infrastructure While support from NGOs and government initiatives reached nearly half of those interviewed, there remains a pressing need for more structured and effective support mechanisms The interviewees represented a diverse demographic, with an equal gender distribution and ages between 22 and 60, most having completed secondary education The group reflected the region's ethnic diversity, including several owners from minority communities Experience levels varied widely, with most interviewees serving as the primary decision-makers in their businesses, often with assistance from family members.

Business owners are motivated by the desire to support their families, enhance their communities, and attain financial independence Their economic objectives focus on sustainability and growth, with an emphasis on adopting modern technologies Active community involvement is evident, as they participate in local cooperatives and trade associations These entrepreneurs view their contributions positively, acknowledging their role in providing local services, creating jobs, and boosting economic vitality The narratives collected illustrate their determination amid challenges, offering a valuable foundation for developing targeted poverty reduction strategies that leverage the unique strengths of home-based businesses for sustainable economic development.

Crafting a well-structured questionnaire is essential for effective research, particularly when studying home-based business managers in relation to poverty reduction This process involves careful design to encourage informative and honest responses while ensuring a logical and ethical progression throughout the questionnaire.

The questionnaire begins with a well-crafted introduction that outlines the research's objectives, highlights the importance of participant contributions, and ensures the confidentiality of responses, which is essential for building trust Following this, informed consent is obtained early in the process to confirm participants' agreement and uphold ethical standards The initial questions are designed to be simple and non-invasive, acting as an icebreaker to help respondents feel at ease while collecting basic demographic information This smooth transition from general questions to more focused inquiries keeps participants engaged and avoids abrupt topic shifts.

The questionnaire's main body is structured around thematic sections that progressively build in complexity, starting with broad questions and narrowing down to specific topics This difficulty gradient ensures participants are not overwhelmed by sensitive issues early on, fostering a comfortable and open dialogue Each question flows logically to the next, maintaining an intuitive conversational rhythm while minimizing cognitive load Additionally, each section concludes with prompts for additional comments, allowing respondents to share their insights comprehensively and ensuring that no aspect of the topic is overlooked.

The questionnaire concludes with reflective prompts that encourage respondents to share any additional thoughts, ensuring a thorough understanding of their experiences and perceptions It wraps up with a note of gratitude, recognizing the time and insights provided by participants, while also outlining the next steps in the research process, including expectations for follow-up and sharing of findings.

The questionnaire is designed to lead respondents through a respectful and natural process, while effectively gathering valuable data for the study on poverty reduction Each aspect of its structure is carefully crafted to enhance the quality of the information collected and to acknowledge the experiences and insights of home-based business managers, who play a crucial role in this research.

Pilot testing is an essential preliminary phase before implementing a questionnaire on complex subjects like poverty reduction among home-based business managers in northern Laos This process involves choosing a small, representative sample from the target demographic to complete the questionnaire in conditions that mirror the main study Researchers must closely observe participants for any signs of confusion or discomfort, which may highlight issues with specific questions.

To maintain a manageable length for the questionnaire and avoid overwhelming respondents, the timing of each pilot session is carefully recorded After completing the questionnaire, participants provide feedback during a debriefing session, offering valuable insights into the clarity and relevance of the questions, which are essential for refining the questionnaire.

Analyzing pilot data is essential for determining if the questionnaire effectively captures the intended information and identifying any patterns of non-responses This analysis prompts a thorough review of the questionnaire, allowing for the rephrasing, reordering, or elimination of questions to improve clarity and relevance This iterative process of testing and revision continues until the questionnaire operates as intended.

Meticulous pilot testing yields significant efficiency gains by enhancing the clarity and focus of questionnaires, which leads to precise data collection aligned with research objectives This process saves time and resources by identifying potential issues early, preventing costlier fixes later Furthermore, pilot testing boosts response rates and improves data quality by ensuring that questions are engaging and manageable for respondents For interview-based questionnaires, it also acts as a valuable training opportunity for interviewers, allowing them to become familiar with the questionnaire and refine their skills prior to the actual study.

The pilot test serves as a crucial investment in enhancing the validity and reliability of research focused on poverty reduction By establishing a solid foundation, it guarantees that future data collection will be efficient and effective, ultimately yielding actionable insights to guide strategies for supporting home-based business managers in northern Laos.

The study on poverty reduction in northern Laos utilizes a balanced sample of 60 interviewees, providing rich narratives essential for understanding this complex issue This number captures diverse perspectives from home-based company owners, highlighting various strategies and challenges within the region The concept of data saturation is crucial in qualitative research, and a sample of this size is likely to achieve it, ensuring comprehensive insights while keeping data collection manageable A larger sample could complicate the analysis due to time and budget constraints Given the diversity of ethnic groups and economic conditions in northern Laos, the 60 participants allow for a broad representation, making the study both contextually rich and logistically feasible.

The decision to conduct interviews with a sample size of 60 home-based company owners is strategically designed to balance the need for comprehensive data with the practical challenges of accessing participants in remote areas This sample size is ambitious yet realistic, aligning with similar studies to ensure comparability while allowing for an in-depth exploration of issues pertinent to this specific group By focusing on qualitative inquiry, the researchers can gather rich and varied insights that are crucial for understanding poverty reduction in the unique context of northern Laos Ultimately, this approach provides a solid foundation for meaningful conclusions and tailored recommendations.

Theoretical and practical contributions of the thesis

Theoretical contributions

(1) The thesis synthesized and indicated the analysis frameworks for poverty reduction Hence, the thesis drew the comments on the limitations of previous studies and proposes a solution to them

The thesis offers a thorough analysis of poverty reduction efforts in the Northern Lao provinces, examining the issue from domestic, regional, and international perspectives.

The thesis presents a community-focused approach to alleviating poverty in the Northern provinces of Laos, emphasizing the role of home-based businesses in driving local economic development.

Practical contributions

The analysis of poverty reduction in Northern Laos from 2000 to 2021 offers valuable insights into the poverty landscape and the effectiveness of poverty alleviation efforts in the region.

The insights and recommendations from the thesis serve as valuable resources for Lao policymakers, aiding in the formulation of effective strategies and measures aimed at enhancing poverty reduction in the Northern Lao provinces while promoting sustainable development.

The thesis highlights the significant contributions of local communities to poverty reduction through the engagement of home-based businesses in e-commerce, which enhances economic performance The author offers recommendations for policymakers and home-based business owners on effectively leveraging e-commerce as a strategy for poverty alleviation.

The structure of the thesis

Besides the Introduction, Bibliography and Appendix, the thesis is divided into

Chapter 1: Literature review on poverty redution

Chapter 2: Theoretical foundations for poverty reduction

Chapter 3: Current situation of poverty in northern lao provinces

Chapter 4: Current activities of poverty reduction in northern lao provinces Chapter 5: Recommendations and solutions to enhancing poverty reduction in northern lao provinces

LITERATURE REVIEW ON POVERTY REDUCTION

Research related to sustainable development goals

Sustainable development has gained significant attention from scholars, particularly the first Sustainable Development Goal (SDG) – No Poverty, which has been a focus since the 1970s In 2015, 193 UN member states adopted the SDGs, establishing a 2030 agenda aimed at addressing various global challenges to promote well-being, economic prosperity, and environmental protection Unlike traditional development agendas that concentrate on limited aspects, the SDGs offer a holistic and multidimensional approach to development These interconnected, measurable goals are designed to tackle interrelated challenges and promote global sustainable development, engaging all societal actors, including governments, civil society, nonprofit organizations, and the private sector The release of a detailed roadmap of targets and indicators in 2015 marked a pivotal moment in aligning both developing and developed nations towards sustainable development.

The 2030 Agenda for Sustainable Development seeks to transform the world by promoting human well-being, economic prosperity, and environmental protection It consists of 17 goals and 169 targets designed to address the complex challenges facing humanity (UN, 2015).

Sustainable development requires the involvement of all societal actors, including governments, organizations, and the private sector, with the Sustainable Development Goals (SDGs) being studied at both macro and micro levels Key milestones in this journey were established during the Rio-92 Summit and the 2002 United Nations Summit in Johannesburg Sustainable development hinges on three essential criteria: (1) a sustainable economy that promotes healthy growth, improves living standards, and avoids burdening future generations with debt; (2) social sustainability, which emphasizes social justice and human development as measured by the Human Development Index (HDI), ensuring access to health, education, and equal opportunities for all, while addressing the widening gap between rich and poor that can lead to social unrest; and (3) environmental sustainability, which focuses on the responsible use of resources, protection of the living environment, and the conservation of ecological diversity to meet current needs without compromising future generations Achieving these goals is interconnected, as economic and social justice are vital for fulfilling environmental and resource needs.

The three sustainable development goals are deeply interconnected and essential for societal advancement They emphasize the relationship between socio-economic growth, human development, and the responsible use of resources alongside environmental protection The World Bank has adopted these goals as foundational elements for creating a sustainable development model, represented as an equilateral triangle, with each vertex symbolizing one of the three goals.

The evolution of sustainable development at both macro and micro levels highlights the importance of corporate sustainability, emphasizing the need for businesses to preserve natural resources for future generations Researchers have focused on identifying specific strategies that companies can adopt to protect these resources while weighing the associated benefits and drawbacks Numerous case studies have explored the relationship between environmental performance and corporate economic outcomes, revealing both positive and negative correlations Additionally, various theoretical frameworks have been proposed to examine the challenges and motivations businesses face in implementing sustainability practices.

The "Environment and Development" conference in 1992 marked a pivotal moment for sustainable development, highlighting the vital role of social actors in achieving its objectives (UN, 1992; Mebratu, 1998) In response, the business sector adopted strategies like "clean production" and "eco-efficiency," enabling companies to protect the environment while reducing costs and maximizing resource efficiency (WBCSD, 2000; Nikolaou et al., 2019) The 2002 World Summit on Sustainable Development in Johannesburg further advanced the sustainability agenda by emphasizing the interconnectedness of economy, environment, and society (Moldan et al., 2012) This concept, known as the triple bottom line, advocates for businesses to enhance financial performance while promoting environmental sustainability and social equity (Elkington, 1994) The integration of these institutional dimensions into business strategy marked a significant evolution in corporate responsibility during this period.

The pyramid of sustainability, as outlined by Spangenberg (2000), consists of four key aspects, with many scholars focusing on the three bottom-line approach to develop business models These models can be categorized into two main groups, where economic, environmental, and social strategies can be interchanged freely in the first group of businesses (Gimenez et al., 2012).

The second category focuses on a firm's triple-bottom-line strategy from a sustainability perspective, suggesting that economic, environmental, and social capital can be partially substituted to maintain critical capital (Hediger, 2010; Nikolaou et al., 2019) This idea aligns with the UN's 2030 Agenda, which outlines 17 global goals for sustainable development aimed at addressing key issues like inequality, poverty, climate change, and environmental protection (UN, 2015) The Agenda also includes 169 targets to help nations monitor their progress toward these goals (Salvia et al., 2019) International organizations have integrated these Sustainable Development Goals (SDGs) into business practices and supply chains, emphasizing the importance of sustainable logistics, product usage, and end-of-life management to meet these objectives Furthermore, the Global Reporting Initiative (GRI) and UN Global Compact have proposed indicators to assess corporate sustainability performance related to each SDG, encouraging businesses to incorporate these goals into their strategic management (Grainger-Brown).

Businesses play a crucial role in achieving the UN Sustainable Development Goals (UN SDGs) by integrating them into their sustainability strategies, as highlighted by Jones et al (2016) and Pineda-Escobar (2019) Despite facing significant challenges, the business sector is encouraged to advocate for these goals and adopt more sustainable practices (Scheyvens et al., 2016) With their management expertise and resource control, businesses are key contributors to the UN SDGs, and business diplomacy may enhance their participation (Yiu & Saner, 2017) Notably, Brazilian forest sector companies have significantly impacted climate change-related SDGs (Tauszig & Toppinen, 2017), while industrial ecology concepts have been associated with several SDGs, demonstrating varying degrees of success and competitive advantage (Sullivan et al., 2018).

According to Arnold (2018), companies embracing the UN Sustainable Development Goals (SDGs) have achieved cost-effective innovations These companies believe that social involvement fosters creativity, particularly benefiting small and medium-sized enterprises (SMEs) In contrast, multinational enterprises (MNEs) are primarily driven by institutional incentives to innovate The UN SDGs present a complex framework that influences these dynamics (Dressler & Bucher).

In 2018, a method was proposed to evaluate business sustainability innovation in relation to the UN Sustainable Development Goals (SDGs) through a three-step assessment approach, tested on African enterprises, revealing a link between potential innovations and the UN SDGs Jones et al (2018) identified challenges and benefits faced by six leading marketing firms in their contributions to the UN SDGs The integration of UN SDGs into the strategic management of multinational enterprises (MNEs) has garnered significant academic interest Topple et al (2017) suggest that adherence to international sustainability standards like GRI and UN SDGs can enhance MNEs' efforts in sustainable development, noting that many of the 112 MNEs in Southeast Asia have shared effective sustainability practices across their operations Schửnherr et al (2017) explored how the UN SDGs can improve MNEs' corporate social responsibility (CSR) performance, while Kolk et al (2017) provided evidence of MNEs' adoption of the UN SDGs and their impact on the core principles of Agenda 2030, including people, planet, prosperity, and peace.

Recent research has examined investor reactions to companies' commitments to the UN Sustainable Development Goals (UN SDGs) Schramade (2017) emphasized the need for investors to understand how firms adhere to these goals, recommending a tagging technique to evaluate corporate efforts and progress This involves developing a system for analyzing UN SDG compliance, creating key performance indicators, and assessing a firm's connection to the goals Additionally, some scholars advocate for incorporating the UN SDGs into university curricula to prepare managers for sustainable development, recognizing the role of education in shaping ethical standards and values for business leaders Annan-Diab & Molinari (2017) stress the importance of an interdisciplinary approach to enhance understanding of sustainability and corporate social responsibility in education Lastly, Storey et al (2017) explore how the 2030 Agenda and UN SDGs can be integrated into both educational frameworks and the business sector, focusing on responsible management education.

In assessing poverty reduction in northern Laos, sustainable development is evaluated through three interconnected aspects: economic sustainability, social sustainability, and environmental sustainability These three goals are essential for achieving comprehensive social development, as their integration is crucial for effective poverty alleviation This evaluation focuses on the interplay among these subsystems, emphasizing the importance of a balanced approach to fostering sustainable development in the region.

The interconnected systems of socio-economic development, human development, and natural resource management are essential for achieving a sustainable balance within the "Nature - People - Society" framework Addressing poverty is crucial to sustainable development, as it influences various components of this system When basic life needs are unmet, individuals lack the motivation to invest in their futures, leading to a diminished interest in sustainable practices.

Research related to Sustainable Development Goal 1 (SDG 1)

The Sustainable Development Goals (SDGs) aim to "end poverty in all its forms everywhere" (UN, 2015), with the United Nations identifying poverty as a lack of essential services, including education, adequate nutrition, gender equality, and social inclusion Achieving SDG 1, "No Poverty," is intrinsically linked to the success of other goals, particularly Goals 2 (Zero Hunger), 3 (Good Health and Well-being), 4 (Quality Education), and 5 (Gender Equality).

6 (clean water and sanitation), 7 (affordable and clean energy), 8 (decent work and economic growth), 12 (sustainable production and consumption), 10 (reduced inequalities), 13 (climate action), or 15 (life on land)

The millennium goals aim to tackle global poverty comprehensively, particularly in developing nations, prompting numerous studies on the issue (UN, 2000; ADB, 2001; FAO, 2000; WB, 2002) These studies have sought to clarify concepts related to poverty reduction A significant milestone was the United Nations Conference on Environment and Development in Rio de Janeiro in June 1992, which emphasized that "Human beings are considered central to concerns for sustainable development," advocating for a healthy and productive life in harmony with nature (World Summit on Sustainable Development, n.d.) Additionally, the Universal Declaration of Human Rights, adopted by the United Nations General Assembly on December 10, 1948, underlines the importance of addressing poverty as a fundamental human right.

In 1948, it was established that all individuals have equal rights to access public services, social security, work, and employment freedom Furthermore, the United Nations General Assembly Resolution of 1984 asserts that everyone is entitled to a standard of living that ensures their health and well-being, encompassing essential needs such as food, clothing, housing, medical care, and social services However, in developing nations, achieving these fundamental rights continues to pose significant challenges.

Poverty is a complex issue often defined by income levels or the inability to meet basic needs, with a poverty line commonly set at US$1 per day per person Poor families frequently face health challenges, low educational attainment, and social marginalization The interconnection between health and development is significant, as poor socioeconomic conditions lead to deteriorating health, which in turn hampers productivity and overall quality of life The World Health Organization reports that approximately 1.2 billion people live in extreme poverty, facing a higher risk of mortality compared to wealthier populations Addressing health conditions can reduce vulnerability and provide a pathway out of poverty, as better health contributes to increased wealth and productivity Healthy children perform better in education, while healthy adults are more capable of supporting their families The health sector plays a crucial role in poverty alleviation efforts and has initiated community-based programs aimed at improving health and quality of life These initiatives, which engage local communities and address socioeconomic determinants of health, demonstrate that investing in health is essential for fostering inclusive development and enhancing community well-being.

Ardakani (2007) highlights the World Health Organization's Eastern Mediterranean Regional Office's advocacy for poverty alleviation as essential for enhancing individual and community health through community ownership and interdisciplinary collaboration Community-Based Initiatives (CBI) embody a holistic health approach, addressing social welfare alongside physical and mental health, which is crucial for understanding poverty Mahanty et al (2006) note a growing interest in community-based forest management (CBFM) as a poverty alleviation strategy, though some analysts caution that its effectiveness may be limited by elite capture, a focus on low-value forests, and high transaction costs for the poorest This paper argues that while CBFM can assist the poor in escaping poverty, its potential remains underutilized, particularly in governance, business development, and integrated approaches The City of New Westminster (2016) conducted extensive research and consultations involving community partners and families living in poverty to inform their poverty reduction strategy A consultation with 36 families revealed that 68% had an after-tax income below $20,000, and participants shared insights on barriers and potential actions for poverty alleviation The strategy also draws on resources from the Tamarack Institute's Vibrant Communities initiative and a stakeholder forum organized by the Ministry of Children and Families, emphasizing the need for ground-up studies despite the challenges of small sample sizes.

The challenge of poverty alleviation has been extensively explored in various research studies, particularly by international authors However, there remains a significant gap in the development of a comprehensive framework for poverty reduction tailored to specific cases in the northern provinces of Laos To address these gaps in existing research, this thesis will utilize a community database with a broader scope and diverse samples, integrating computational and quantitative research methods to yield meaningful results.

Studies related to poverty reduction

Poverty is a complex and debated issue without a universally accepted definition, influenced by various perspectives It can be viewed through monetary lenses, such as absolute and relative poverty, or through non-monetary aspects like the capability approach, social exclusion, chronic poverty, and multidimensional poverty Despite differing interpretations, the Sustainable Development Goals (SDGs) adopt a universal definition applicable to all developing countries Poverty alleviation is a deliberate objective, informed by historical development initiatives from 1960 to 2000, which aimed to foster economic growth in low-income nations For instance, the first development decade sought a 5% annual GNP growth by 1970, while the second decade aimed for 6% yearly growth and 3.5% per capita growth for developing nations.

Between 1981 and 1990, developing nations aimed for a GDP growth of 2.8% annually, reflecting a belief that macroeconomic development was vital for poverty reduction The third development decade marked a significant shift, introducing calls for the eradication of poverty and food security, alongside discussions on equitable benefit distribution In 1990, the UN outlined a plan for the fourth development decade, focusing on sustainable economic growth, poverty alleviation, and effective macroeconomic management Although these decades shared common goals, the emphasis on poverty and environmental issues grew over time However, criticisms arose regarding the effectiveness of global development goals, particularly in addressing poverty, with concerns that past failures were overlooked While global poverty rates have reportedly halved since 1990, improvements have been uneven, particularly in Africa, raising questions about the feasibility of achieving the Sustainable Development Goal (SDG1) of eradicating extreme poverty by 2030 The shift in narrative from "eradication" to "reduction" has garnered support, highlighting the complexities of addressing poverty on a global scale.

Sengupta (2015) suggests that politicians and public figures may shift their focus from short-term political gains to a more visionary approach for the future However, significant challenges could hinder this transformation, potentially reducing it to yet another unfulfilled concept or catchphrase.

Research on poverty reduction in Laos highlights the challenges posed by its diverse ethnic groups and rural population Manisoth Keodara (2006) emphasizes that the Lao government's efforts to formulate effective ethnic policies, particularly in education and health, are complicated by the country's small population and numerous ethnicities Approximately 80% of the Lao population resides in rural areas, primarily engaged in agriculture, with 87% of agricultural income directed towards self-consumption (UNDP, n.d.) Poverty predominantly affects ethnic minorities in the highlands, with poor farmers remaining less integrated into the global economy, which may insulate them from economic crises (Suouphane et al., 1999) Grant (1999) further explores the impact of ethnic policies on these communities, noting disparities between majority and minority groups, which contribute to ongoing conflicts and hinder progress in eradicating hunger and alleviating poverty.

Rural roads in Laos, as defined in 2008, are essential connections between villages and main roads, facilitating access for rural communities to markets and vital services These roads play a crucial role in enhancing the socio-economic conditions of the local population, particularly following the initial implementation of the New Economic Policy.

Since the introduction of the New Economic Mechanism (NEM) in 1986, rural villages have progressively integrated into the market system, significantly enhancing livelihoods and raising incomes This development underscores the critical role of rural roads in connecting villages to markets, facilitating easier access to agricultural products As a result, farmers can improve their incomes, advance agricultural systems, and enhance their quality of life, ultimately contributing to poverty alleviation.

Several Lao authors have focused on poverty alleviation, with Thongpaseuth (2012) highlighting the role of finance in eradicating hunger and reducing poverty in Laos Khamphanh (2012) emphasizes the need for improved poverty reduction policies, while Feuangsy (2014) and Xom Phit Coong Xap (2005) analyze specific provincial poverty situations and evaluate the effectiveness of existing measures, revealing shortcomings in poverty alleviation programs Improving the sustainability of livelihoods for ethnic minorities is crucial, as noted by ADB (2006), which advocates for livestock development with community participation Additionally, the resettlement of ethnic groups has led to significant challenges, necessitating agricultural training for villagers Freund & Gervan (2010) underscore the importance of forest development projects in enhancing livelihoods in northern provinces ADB (2005) provides poverty rate assessments for various provinces, with figures such as Bolikhmaxay at 71.2% and Champasak at 19% Comprehensive resources from the International Monetary Fund (IMF), Party Congress resolutions, and reports from NGOs and the Lao Government further illustrate the ongoing poverty situation in Laos, alongside significant contributions from UNDP.

The 2013 study focused on eradicating poverty in rural areas of Lao PDR by 2020, emphasizing the Lao government's commitment to fostering a growth-oriented environment Key developmental guidelines were issued in areas such as education, health, and infrastructure to combat poverty The analysis highlighted the poverty situation in northern provinces, showcasing macro data trends and poverty levels in specific districts However, the available data remains limited and outdated, with a lack of comprehensive poverty reduction models requiring further analysis and updates.

Recent studies have shed light on the issue of poverty in Laos, particularly in the northern provinces However, a thorough assessment of poverty in these regions, considering the unique context of each stage of the country's development, remains lacking.

Research related to factors affecting poverty reduction

Poverty is often measured by economic indicators such as consumption and income, yet Amartya Sen emphasizes a broader definition that includes the lack of essential capabilities (World Bank, 2015; Sen, 2000) The United Nations prioritizes the goal of "Ending poverty in all its forms everywhere," ensuring that no one is left behind (UN, 2015) Global poverty alleviation programs focus on empowering disadvantaged communities through participatory and demand-driven methods (Chakrabarti & Dhar, 2013) Economic growth is identified as a key strategy for poverty reduction, enabling job creation in productive sectors (Ambarkhane, 2013) Between 1970 and 2000, significant numbers of individuals in countries like Africa, Brazil, and China transitioned out of poverty (World Bank, 2001) Economic development not only generates resources for poverty reduction initiatives but also allows governments to address the basic needs of the poor, including housing, healthcare, and education (Bhagwati & Panagariya, 2013) Effective poverty reduction strategies can be categorized into community-based microfinance, capability and social security, market-based solutions, and good governance.

Microfinance has emerged as a prevalent strategy for alleviating poverty, particularly benefiting the poor in developing countries across Africa, Asia, and Latin America Over recent decades, it has gained significant traction, with many scholars and policymakers recognizing its potential to empower marginalized groups, especially women By facilitating access to financial resources, microfinance supports income-generating activities, promotes entrepreneurship, and reduces vulnerability among the impoverished population.

To enhance the effectiveness of microfinance, it is essential to incorporate services such as technical assistance, skill development training, health initiatives, education improvements, sanitation programs, and livelihood enhancement measures (Kaoma Mwenda & Nkombo Muuka, 2004; Nawaz, 2010).

Microfinance and economic growth can illuminate some financial aspects of poverty, yet they often overlook its psychological, social, and cultural dimensions (Banerjee & Jackson, 2017) While economic growth is crucial for enhancing the lives of the poor, it frequently benefits the privileged, leaving marginalized groups behind Sen (2000) identifies lack of competence and social marginalization as key poverty drivers, advocating for a capability-based approach that prioritizes individual wellbeing and freedom of choice This approach emphasizes maximizing individual capacities to foster greater freedom and highlights the difference between means and goals, as well as actual freedoms versus outcomes For instance, Robeyns (2005) illustrates the difference between starvation and fasting To improve living conditions for the poor, their capacities must be enhanced, which also facilitates resource pooling and encourages participation in economic activities (Sen).

Financial inclusion is essential for poverty reduction, but social inclusion of disadvantaged groups is equally important to eliminate social barriers (Burton, 2013) Government initiatives, known as social security, aim to reduce vulnerability and inequality, serving as a vital tool for addressing these issues while promoting gender parity through equal participation in economic, social, and political activities The World Development Report of 1990 advocated for a comprehensive poverty reduction strategy that combines economic growth with essential social services and safety nets for the poor (World Bank, 1990) Various social safety net programs and public spending on social protection, such as social insurance and assistance payments, continue to play a crucial role in alleviating poverty in many developing countries (Pradhan et al., 2013) While these programs positively impact poverty reduction and address social inequities, their long-term sustainability remains a significant concern (Khan & Arefin, 2013).

Recent strategies to alleviate poverty in rural areas have shifted from a sole focus on agriculture to promoting livelihood diversification, which includes non-farm activities alongside farming to stimulate economic growth (World Bank, 2007; Alobo Loison, 2015) The establishment of extensive value chains and market systems has been identified as a viable approach for poverty reduction since the early 2000s (Stoian et al., 2012) Multi-sectoral micro-enterprises enhance productivity and income for the rural poor, playing a crucial role in inclusive poverty alleviation (Janda et al., 2013) Effective governance has become essential for securing international aid and improving social services in developing nations, necessitating a participatory and accountable governance model to uplift vulnerable populations (Grindle, 2004; Kwon & Kim, 2014) Additionally, information and communication technology (ICT) has proven beneficial in facilitating poverty reduction programs by enabling better access to information and market development (Cecchini & Scott, 2003) Projects like those supported by the World Bank in Laos focus on building critical infrastructure and empowering communities through bottom-up planning (World Bank, 2016) The ADB's Northern Region Sustainable Livelihoods Development Project aims to enhance the livelihoods of ethnic minorities in Northern Laos through participatory livestock development, addressing food security and vulnerability (ADB, 2018) Despite these initiatives, there remains a gap in evaluating their effectiveness and understanding the relationship between community participation and sustainable poverty reduction.

Recent studies have provided a comprehensive overview of community participation in poverty alleviation efforts in Laos, particularly from 2000 to the present While these studies explore various aspects such as poverty, health, and education, they primarily focus on individual issues rather than their interconnections Nonetheless, the author's research serves as a valuable resource for understanding sustainable poverty reduction models in northern Lao provinces, highlighting the importance of local community involvement in addressing these challenges.

The research gap in Policy and Institutional Analysis for poverty reduction in Laos's Northern Provinces is significant due to the region's unique socio-political context Existing studies often overlook the impact of local governance structures and policies on poverty alleviation efforts, failing to assess the direct and indirect consequences of specific policies A comprehensive examination of historical and current policy measures at both local and national levels is essential to understand their intended goals and actual outcomes Additionally, the institutional capacity of local governments in designing and implementing poverty reduction strategies requires further exploration, particularly regarding the effects of decentralization and local autonomy on poverty outcomes There is also a need to analyze the coherence between national policy directives and local adaptations, as well as the alignment of various policy domains—such as economic development, health, education, and infrastructure—in addressing the multifaceted nature of poverty The role of local stakeholders, including communities, NGOs, and the private sector, in the policymaking process is often under-researched, yet their engagement is crucial for effective policy implementation Furthermore, the integration of international aid and NGO activities into local and national frameworks, as well as the impact of legal structures on poverty, particularly in rural areas, warrant closer examination Finally, understanding the robustness and transparency of monitoring and evaluation systems in Laos is vital for assessing the effectiveness of poverty reduction policies By delving into these areas, this research could provide valuable insights and evidence-based recommendations to enhance the effectiveness of poverty reduction programs in the region.

Research on "Technological Innovation and Adoption" for poverty reduction in Northern Laos reveals significant gaps, particularly regarding how local populations, especially in rural areas, adopt and adapt technology Barriers such as limited infrastructure, educational challenges, and socio-cultural factors hinder technology adoption among the rural poor Investigating these barriers and exploring solutions is crucial, especially in agriculture, where innovations like improved crop varieties and irrigation systems can enhance productivity and food security Additionally, the role of technology in non-agricultural sectors, including digital tools and e-commerce, presents opportunities for economic growth Understanding digital literacy levels and the effectiveness of educational initiatives is vital for translating skills into economic opportunities Gender disparities in technology access further exacerbate inequalities, necessitating a focus on equitable interventions Technologies addressing basic needs, such as clean water and health, must also be examined for their impact and sustainability Furthermore, local innovations and community-driven solutions can foster grassroots innovation ecosystems Research could explore how technology improves market access for agricultural and artisanal products, enhances supply chains, and impacts social structures and networks Finally, assessing policy frameworks that influence technology diffusion is essential for creating environments conducive to innovation This research can provide insights into leveraging technology for socio-economic development and inform policies that bridge the technology gap for the rural poor in Northern Laos.

THEORETICAL BACKGROUND OF POVERTY REDUCTION

Concepts related to poverty, poverty reduction and SDGs

Poverty, a multifaceted concept in socio-economic studies, encompasses the gap between rich and poor, social stratification, and polarization It is closely linked to hunger, with absolute and relative poverty highlighting different dimensions of deprivation Poverty can lead to hunger, while hunger is a visible manifestation of poverty The persistence of poverty is often exacerbated by unforeseen events such as natural disasters or health crises Analyzing poverty from an economic perspective emphasizes the importance of individual circumstances and community dynamics Various approaches allow for targeted research on impoverished individuals, households, neighborhoods, and nations The interplay of economic, social, political, and cultural factors shapes poverty's evolution, particularly during transitional periods, as seen in Lao PDR's agricultural and rural contexts Importantly, poverty is a dynamic concept that varies across time and regions, making its measurement complex and often tied to development theories.

A modern understanding of development is crucial for effectively addressing issues such as poverty, wealth disparity, and hunger eradication This contemporary perspective serves as a foundation for research and strategies aimed at reducing poverty and promoting equitable wealth distribution.

Poverty is a complex issue often defined by financial constraints and the inability to meet basic needs, with a common benchmark being one dollar a day per person It encompasses not only economic factors but also recurring health issues, malnutrition, low educational attainment, and social or political exclusion, often influenced by age or gender discrimination While the criteria for determining the poverty line typically focus on income or expenditures necessary for fundamental human needs such as food, shelter, and education, the degree of satisfaction varies based on socio-economic development and cultural customs This understanding of poverty was reinforced at the 1993 ESCAP conference in Bangkok, where it was emphasized that poverty reflects a population's inability to fulfill essential human needs, shaped by regional socio-economic conditions and societal recognition.

Poverty is a multifaceted issue characterized by severe deprivation of basic human needs such as food, shelter, healthcare, and education, as defined by the World Bank and the UN It encompasses not only a lack of income but also limited access to essential services, leading to a significant loss of physical and mental well-being (Baratz & Grigsby, 1972) Various definitions highlight different aspects of poverty, with some emphasizing critical needs like hunger and homelessness The experience of poverty is often sustained over time, manifesting in multiple areas of life, including housing and health (Deleeck et al., 1992) The "web" of deprivation concept illustrates how individuals may face a changing array of challenges, underscoring that poverty is not merely a single condition but a complex interplay of ongoing hardships (Narayan et al., 2000).

Poverty is fundamentally defined by the lack of basic human needs, which include essential requirements such as food, clothing, and shelter This broad definition serves as a foundation for various assessment methods, although these criteria often overlook regional differences and specific historical contexts that influence local development levels Absolute poverty is primarily characterized by hunger, where individuals lack sufficient food and essential nutrients, leading to inadequate energy for daily activities and labor In essence, hunger signifies a critical state of deprivation that prevents people from meeting their minimum nutritional needs.

Natural disasters, floods, crop failures, diseases, and extreme poverty can lead to severe hunger, particularly affecting children and women through undernutrition and malnutrition Addressing poverty requires a focus on economic factors, emphasizing the essential material needs of individuals To assess poverty levels, it is crucial to analyze monthly or annual per capita income in both rural and urban areas, linking this to daily nutritional energy requirements Additionally, understanding how income influences consumption patterns reveals insights into the satisfaction of basic needs and regional disparities among the poor While national income per capita serves as a general indicator of a country's development, it has limitations, as high GDP does not necessarily equate to the absence of poverty Ultimately, the true measure of a nation's progress lies in the equitable distribution of resources and social justice for its citizens.

The concept of "multidimensional poverty"

The Global Multidimensional Poverty Index (MPI), developed by Alkire et al in 2011, serves as a comprehensive measure of acute multidimensional poverty across more than 100 countries This index is derived from data collected through various sources, including Demographic and Health Surveys (DHS), Multiple Indicator Cluster Surveys (MICS), the Pan Arab Project for Family Health (PAPFAM), and national surveys The MPI encompasses three key dimensions and ten specific indicators, providing a nuanced understanding of poverty worldwide.

1 Each dimension is equally weighted, and each indicator within a dimension is also equally weighted Any person who fails to meet the deprivation cutoff is identified as deprived in that indicator

Figure 2.1: Structure of the Global MPI

In the global Multidimensional Poverty Index (MPI), an individual is considered MPI poor if they experience deprivation in at least one-third of the weighted MPI indicators, resulting in a weighted deprivation score of 33.33% or higher The MPI is calculated using the Alkire-Foster (AF) methodology, which involves multiplying the incidence of poverty (H) by the average intensity of poverty (A) Here, H represents the percentage of the population that is multidimensionally poor, while A denotes the average proportion of dimensions in which these individuals face deprivation.

MP I = H × A, reflecting both the share of people in poverty and the degree to which they are deprived

Determination of poverty assessment criteria

As countries strive for economic development and the establishment of a fair, democratic, and civilized society, many have implemented policies to support low-income individuals To effectively identify poor households, over 70 nations have established specific criteria known as the poverty line There are two primary methods for determining this line: one based on the minimum spending needs for a basic standard of living, and the other based on income levels required to meet that standard It is important to note that the poverty line is not static; it fluctuates over time and varies by region, influenced by the socio-economic development and cultural norms of each country.

According to the UNDP's 2013 Poverty Assessment Criteria, poverty is a multifaceted issue, particularly within the multi-ethnic context of Laos, where it signifies the most disadvantaged families in a community Prior to formulating a village development plan, it is essential for villages to gather data and evaluate the living conditions of each household, categorizing them into rich, self-sufficient, and poor families Consequently, household poverty serves as a crucial criterion for assessing poverty at the district level Additionally, villages act as a measure of welfare, providing a natural safety net to address deficiencies in local livelihoods.

When designing sectoral programs to eradicate basic poverty, it is crucial to consider the cultural understanding of poverty within a country Improving livelihoods involves diverse strategies that are essential for effective poverty reduction Therefore, the Government aims to prioritize people-centered, participatory development, promoting positive social advocacy that encompasses all sectors of society, not just those identified as poor.

Measuring and analyzing poverty involves various methods such as the poverty line, participatory poverty assessment, vulnerability indicators, and the Human Poverty Index, which the United Nations uses in its Human Development Index to evaluate factors like illiteracy, malnutrition, life expectancy, and healthcare access Direct measurement often focuses on the lack of essential goods and services, including fuel, sanitation, education, and clean water, which are vital for human capacity In Laos, poverty measurement is still developing, primarily relying on the Lao Expenditure and Consumption Survey (LECS), conducted every five years since 1992/93, with LECS II occurring in 1997/98, just before the Asian financial crisis, and LECS III data collection completed in February.

Since 1992/93, poverty levels have significantly decreased, with survey results expected by the end of the year Prime Minister's Directive No 10 defines poverty as the inability to meet essential human needs, including insufficient food (less than 2,100 calories per day), inadequate clothing, lack of permanent housing, and unaffordable healthcare and education The directive emphasizes the need for a systematic approach to calculate poverty levels at village and district levels, ensuring that these findings are integrated into the poverty eradication strategy.

To evaluate poverty, both quantitative and qualitative methods are employed The quantitative approach utilizes the poverty line, developed through collaboration between the National Center for Statistics, SIDA, ADB, and the World Bank, which includes two distinct lines: the food poverty line, indicating food insecurity, and the overall poverty line, reflecting a lack of essential food and needs The food poverty line is set at a minimum of 2,100 calories per person per day, as recognized by the WHO and other international bodies Individuals consuming fewer calories than this threshold are classified as living below the food poverty line The overall poverty level is determined by the cost of meeting this caloric requirement, plus an additional 20% for non-food essentials like shelter and clothing Qualitatively, poverty assessments in Lao PDR began in 1997 using the "Rapid Poverty Assessment (RPA)" technique, which focuses on gathering insights into the perceptions, nature, and causes of poverty at both the village and household levels, as outlined in the Government document for the 7th RTM "Fighting Poverty."

Related theories on poverty reduction towards SDG 1

2.2.1 The Welfare, the Basic Needs, and the Ability needs

The welfare need defines societal impoverishment as occurring when individuals lack the economic well-being necessary for a reasonable standard of living This concept equates personal utility with economic well-being, though utility itself is difficult to quantify Consequently, standards of living are often used as a more concrete measure Historically, raising income was viewed as the primary means to improve both the standard of living and personal utilities.

To effectively reduce poverty, policies must prioritize enhancing productivity and job creation, ultimately leading to increased incomes and improved economic welfare for individuals within society.

The Basic Needs approach defines poverty as a lack of essential goods and services necessary for a quality life, including food, water, sanitation, housing, clothing, basic education, health care, and public transportation, with nutrition being the most critical Unlike the welfare school, which focuses on living standards and personal enjoyment, this approach emphasizes the provision of fundamental goods for all individuals Originating from Seebohm Rowntree's early 1900s studies and gaining traction in the 1970s, the Basic Needs perspective advocates for targeted policies addressing each basic need to effectively eradicate poverty, rather than solely increasing personal income.

The Ability need, also known as the need for competence, emphasizes human abilities and capacities rather than merely satisfying basic needs Introduced by economist Amartya Sen in the 1980s, this concept asserts that the value of human life is determined not just by utility but by an individual's freedom to pursue their desired life Poverty reduction policies should therefore aim to empower the poor by providing conditions that enhance their capabilities, addressing fundamental requirements like adequate nutrition and health, as well as higher aspirations such as social participation and respect This approach distinctly focuses on creating opportunities for individuals to develop their abilities according to their own choices.

Today, leading international organizations like the World Bank and UNDP have broadened the definition of poverty to encompass various dimensions, as suggested by Sen Consequently, poverty now includes several fundamental aspects that reflect its complexity.

Material poverty is primarily defined by low income or consumption levels, highlighting the first aspect of poverty as financial deprivation This economic hardship is often accompanied by a lack of access to education and healthcare, further exacerbating the struggles of the impoverished Additionally, the poor frequently experience a significant lack of voice and power in society, limiting their ability to advocate for their needs and rights.

Poverty is a multidimensional issue that encompasses various interrelated factors such as health, education, environment, livelihoods, and social challenges By analyzing these aspects collectively, we gain a deeper understanding of the true nature of poverty This comprehensive approach allows for objective assessments, ultimately providing valuable policy implications for the Lao government in its efforts to eradicate poverty and enhance the quality of life for its citizens.

The theory of modernization emerged in the 1950s, gaining prominence globally in the wake of World War II as discussions about "development" became more defined This theory posits that underdevelopment stems from traditional societal structures, distancing itself from imperialism-related explanations Furthermore, modernization theory emphasizes that development should focus on expanding resources rather than merely redistributing them, advocating for market decentralization as a more effective approach to achieving development goals compared to central planning (Peemans, 2007).

In the 1970s, a new wave of modernization emerged, driven by international trade and investment, which became a key engine for economic growth with support from the World Bank By the mid-1970s, growth theory was closely linked to the fundamental goal of poverty alleviation (Chenery et al., 1974) However, since the 1980s, this doctrine has evolved in response to shifts in the global landscape.

"human" factor was added to the development elements in the late 1980s (Peemans,

In the late 1990s, the role of the state and democracy evolved, culminating in the establishment of the Millennium Development Goals (MDGs) at the turn of the millennium These goals, introduced in 2000, were later expanded in 2001 to include objectives related to the "global war on terror." The prevailing development theory underpinning the MDGs is rooted in modernization, which adapts to contemporary contexts and circumstances (Lapeyre, 2006).

The application of modernization theory in poverty alleviation research in northern Laos highlights the complex social transformation influenced by growth and anti-poverty policies since the implementation of the "Innovation" policy in 1986 Laos has achieved notable success in reducing poverty, with a comprehensive program supported by party committees and authorities at all levels This initiative focuses on agricultural development, irrigation infrastructure, and economic restructuring to ensure food security By addressing the root causes of poverty and enhancing the capacity of individuals, the program effectively utilizes government and social resources to promote opportunities for escaping poverty.

Over the past two decades, rural living conditions have improved significantly, particularly in food security, per capita income, and access to new goods and services, largely due to economic growth and increased employment opportunities However, these advancements have also led to potential issues, including the weakening of agricultural export strategies, industrialization challenges, and environmental degradation, which threaten village communities and sustainable agriculture Additionally, rising inequalities between rural and urban areas have emerged, creating a new form of poverty linked to land use instability and the depletion of nonrenewable resources Despite the apparent success of poverty alleviation efforts, there is a pressing need to address these emerging inequalities, especially in northern Laos, raising the question of whether the current socio-economic instability signifies the unsustainability of the existing poverty reduction strategies.

Modernization theory has significant drawbacks, particularly its failure to consider project sustainability and the environmental consciousness of traditional and Indigenous cultures These cultures often foster a more symbiotic relationship with the environment, contrasting with the exploitative tendencies of modernization, which can adversely affect social relations and exacerbate the wealth gap Consequently, modernization theory inadequately addresses the connection between economic development and sustainable poverty reduction, as the effective management of land and resources is essential for equitable wealth distribution and the active participation of communities in poverty alleviation initiatives.

Dimensions to measure poverty reduction towards SDG 1

The article presents a theoretical and methodological framework for developing comparable poverty metrics applicable to both high- and low-income countries, emphasizing the importance of including access to essential health and education services in poverty assessments (Pomati & Nandy, 2020) Despite this progress, many studies and official poverty calculations in low-income nations still rely on outdated absolute measures (Hall & Midgley, 2004) Current poverty lines are often based on calorie-centric financial assessments rooted in 19th-century standards, failing to address critical non-financial, social, and participatory dimensions of poverty, as well as the necessity for a balanced diet Additionally, research often depends on economic activity data that is frequently unreliable in many countries (Jerven).

Research on poverty in wealthy nations often adopts a relativist approach, utilizing broader definitions and concepts of poverty In contrast, studies focused on poverty in Africa and Asia typically employ absolutist methods, relying on specific indicators and lower thresholds that were established for distinct contexts and historical periods.

Since 2000, there have been significant efforts to expand the understanding of poverty measurement in low-income countries The World Bank's "Voices of the Poor" report (Narayan et al., 2000) and subsequent studies (Alkire et al., 2011) highlighted the multifaceted nature of poverty Increasingly, welfare outcome indicators are utilized to better depict the living conditions of individuals in poverty-related contexts (Alkire & Santos).

In recent years, poverty studies, such as UNICEF's Global Study of Child Poverty and Disparities, have evolved to incorporate measures reflecting the quality of housing, overcrowding, and access to essential services like water, sanitation, healthcare, and education, aligning with internationally accepted poverty definitions The Multidimensional Poverty Index (MPI), developed by the Oxford Poverty and Human Development Initiative, further enhances this understanding by utilizing household and individual-level data to assess health, education, and asset ownership across nations OPHI is expanding the MPI's scope to include factors like access to banking, internet, stable employment, and personal security, enabling a more comprehensive representation of poverty Consequently, researchers are employing diverse techniques, including micro-level qualitative methods like focus groups and community surveys, to capture the contextual elements of livelihoods that complement broader survey analyses, resulting in a more nuanced depiction of poverty.

Researchers and policymakers emphasize the importance of moving beyond solely monetary measurements of poverty (World Bank, 2016) While the MDGs relied on the World Bank's "Dollar a day" indicator, the first Sustainable Development Goal (SDG 1.2) aims to halve the percentage of individuals experiencing poverty in all its forms, adhering to national standards This goal represents a significant shift in understanding and measuring global poverty, as it requires distinct estimates for children and adults and acknowledges the multifaceted nature of poverty However, the implementation of multidimensional poverty measures encounters challenges, such as identifying all potential aspects of poverty and analyzing it as a cohesive construct Academic discourse, particularly through Sen's Capabilities Approach and Townsend's relative deprivation concept, has focused on these complexities, with recent studies further exploring these methodologies to determine how various indicators can be effectively aggregated into a singular measure.

The challenge of compiling a comprehensive list of poverty aspects has received insufficient attention, particularly in middle- and low-income countries (Grusky et al., 2006) To foster meaningful discussions and clarify the various definitions of poverty, it is essential to tackle this issue separately from the aggregation problem Achieving consensus on what constitutes poverty is vital for accurate estimates of poverty reduction Developing a clear research strategy is necessary to systematically gather data that reflects the public's understanding of poverty, especially as scholars advocate for a broader definition While methods like the Multidimensional Poverty Index (MPI) rely on local expert advice and nationally representative surveys, some researchers have utilized focus groups to explore poverty dimensions without validating their findings through representative data or focusing exclusively on poverty definitions.

In Laos, the health and education landscape has evolved since the UNDP's 2003 report, which highlighted the government's efforts to enhance these sectors Recent assessments by the Laos Ministry of Health (2011) have identified critical health challenges faced by communities, particularly among ethnic minorities, prompting the government to implement strategies aimed at improving health service access and conflict resolution Additionally, the Japan International Cooperation Agency (2010) addressed the stark disparities between rural and urban development, revealing a troubling trend of poverty that underscores the need for effective health insurance solutions for the impoverished, as well as improvements in policy execution.

Research by Warr et al (2015) highlights the increasing levels of poverty in households across Laos, revealing a rising trend of inequality in both urban and rural areas Grant (2012) contrasts the national policies of the Lao PDR Government with those of the Royal Lao Government, noting that the latter focused primarily on ethnic differences and social hierarchy, while the modern state aims for a more comprehensive approach to equality Despite these efforts, the Lao PDR government struggles to enforce equal rights for all citizens, particularly ethnic minorities This is evident in various socio-economic sectors, including education, where disparities exist between urban and rural populations, genders, and majority versus minority groups The findings are derived from qualitative research and the analysis of secondary data sources.

The issue of human resources in Laos has garnered attention from scholars, notably Nordin & ệberg (2012), who gathered insights from university lecturers on the topic There is a significant correlation between human capital and poverty, as poverty adversely affects human development, which is crucial for poverty alleviation Razah (2003) highlighted social problems in Laos, albeit not in great detail The prevalence of these issues is further complicated by the large number of communities in remote areas and the government's limited capacity to collect and analyze relevant data, resulting in an unclear understanding of the HIV/AIDS situation.

(2001) pointed out that Laos is one of the leading countries in opium production In

In 2000, a national survey in Laos revealed the cultivation of 19,000 hectares of opium poppies, resulting in the production of 167 tons of opium, primarily in the northern mountainous areas Laos continues to be a significant player in the regional and global drug trade, and efforts to regulate this illicit activity remain challenging.

The Country Analysis Report: Lao PDR (UNDP, 2015) highlights the challenges of illegal migration and cross-border crime as significant transnational issues that require regional cooperation for effective management Many Lao women migrate to Thailand, particularly in the Isan region, seeking employment in factories or as domestic workers due to shared linguistic and cultural ties However, these free migrants often face precarious legal situations and unstable employment, increasing their vulnerability to human trafficking and exploitation, including forced prostitution They risk arrest for illegal immigration, leading to deportation without assistance or compensation, which severely impacts their self-esteem The report emphasizes that the lack of a strong social network further exacerbates their plight, making it difficult for them to secure safe employment in their destination.

Numerous summary assessment reports, including the "Poverty Alleviation Strategy Report" and the IMF's Annual Progress Report (2006), along with resolutions from party congresses and various NGOs, provide crucial insights into the poverty alleviation situation in Laos These resources offer valuable data on socio-economic aspects such as education and health, helping to illustrate the effects of poverty in the country While these studies present an overview of poverty reduction trends across different sectors, there remains a significant gap in research focusing on the socio-economic conditions in northern Lao provinces and their relationship with poverty.

Since 2003, the Lao government, with World Bank support, has initiated numerous projects aimed at enhancing critical infrastructure, such as roads, schools, health clinics, and clean water supply systems for impoverished communities across Laos The Participatory Rural Finance (PRF) projects prioritize sustainability and employ a bottom-up approach, empowering villagers to plan and select activities that address their specific needs.

The Northern Region Sustainable Livelihoods Development Project, initiated by ADB in 2006, aims to enhance the sustainability of highland livelihoods in Northern Laos through participatory livestock development from the planning stage Targeting ethnic minorities who lack sufficient resources and production opportunities, the project utilizes a sustainable livelihood framework to evaluate access to resources It focuses on ensuring food security and the ability to meet both current and future needs, while enhancing well-being and reducing vulnerability to unexpected shocks, ultimately addressing poverty and deprivation.

These projects offer valuable resources regarding their scale, implementation methods, and contributions to enhancing community stability, making them essential references for my dissertation However, they lack a thorough assessment of the strengths and limitations of their models Additionally, the connection between these models, local community participation, and poverty reduction in the context of sustainable development remains unexplored and requires further analysis.

Good practices from foreign countries in poverty reduction towards SDG 1 50 1 Poverty reduction practices in Cambodia

2.4.1 Poverty reduction practices in Cambodia

Cambodia continues to grapple with the repercussions of its turbulent history, which has weakened governmental institutions, heightened poverty levels, and prompted a significant brain drain as skilled individuals emigrate This has resulted in a critical shortage of educated workers essential for revitalizing the economy and addressing poverty The nation's limited social services are further strained by a 2.4% annual population growth rate and a youth demographic, with 13 million individuals under the age of 16 constituting half of the population (World Bank and IMF, 2015) As one of Asia's least developed and poorest countries, Cambodia faces severe economic challenges, with 30-40% of its citizens living on less than $1 a day and a low life expectancy of 54 years, alongside one of the highest newborn mortality rates globally.

Cambodia faces significant challenges, with a high infant mortality rate of 95 deaths per 1,000 live births and a low secondary education enrollment rate of just 14% The country has the highest HIV infection rates in East Asia, and the poverty rate in rural areas is nearly double that of urban regions Despite an average GDP growth of 6% since 1994, the economy remains weak, with over 70% of jobs in the agricultural sector, which contributes 39% to GDP Key drivers of post-conflict growth included an increase in cultivated land, tourism, and the garment industry, bolstered by the now-expired Multi-Fibre Agreement However, the end of this agreement likely led to a decline in garment exports and domestic employment Public spending on health and education more than doubled between 1993 and 2002, reflecting the government's commitment to improving public services Yet, Cambodia still lags behind regional standards, and poverty remains a critical issue In response, the World Bank supported the Cambodian government in implementing the Poverty Reduction Strategy Paper (PRSP) in March 2003, which aims to enhance the business environment, strengthen revenue, and promote fiscal discipline through improved governance, public spending management, infrastructure development, and growth in exports, tourism, and agriculture.

The Poverty Reduction Strategy Paper (PRSP) identifies eight key areas for poverty reduction in Cambodia, including macroeconomic stability, rural livelihoods, job creation, skills enhancement, governance improvement, social inclusion, gender equality, and population prioritization (World Bank and IMF, 2015) This ambitious initiative aims to provide a comprehensive, long-term framework for tackling poverty, requiring high-quality analysis and strategic planning throughout its implementation Despite the availability of extensive research and demographic data, inconsistencies in data collection and geographical clarity pose challenges for effective comparison As of late 2009, the PRSP struggled to offer a long-term vision for essential strategic challenges beyond trade and natural resource management (Ruckert, 2009; World Bank and IMF, 2015) Agricultural growth and capacity expansion are critical, as over 70% of Cambodians depend on agriculture, yet productivity lags behind neighboring countries (Kingdom of Cambodia, 2004) Significant progress has been made in understanding and communicating the poverty reduction strategy among public agencies and donors, paving the way for future benefits To ensure the PRSP's effectiveness as a tool for growth and poverty alleviation, essential steps include extending successful coordinated approaches from health and education to agriculture and private sector development, fostering inter-ministerial collaboration, and establishing a unified strategy among international partners to address capacity limitations (World Bank and IMF, 2015).

2015) These need to be made available to the media and NGOs to guarantee proper accountability

2.4.2 Poverty reduction practices in Nigeria

Nigeria, Africa's most populous country with an estimated 182 million residents as of 2018, is experiencing rapid urbanization This urban population growth is outpacing overall population growth, driven by a shift from an agricultural to a petroleum-based economy over the past 50 years Consequently, more people are migrating to urban areas However, a significant portion of the population lives in extreme poverty, making poverty reduction a critical challenge for the nation Data indicates that the number of individuals living in poverty in Nigeria has been increasing over the last three to four decades.

Between 1980 and 1999, poverty in Nigeria escalated dramatically, with over 70% of the population living in poverty by the end of the decade The World Poverty Clock (2018) identified Nigeria as the "poverty capital of the world," with 87 million people living in extreme poverty Poverty reduction efforts in Nigeria can be categorized into three eras: the National Development Planning (NDP) or Pre-Structural Adjustment Programme (SAP) Era, the SAP Era, and the Post-SAP Era Initially, poverty reduction was not prioritized in the National Development Plans, which focused on health, employment, and education However, the fourth National Development Plan aimed to specifically address poverty through initiatives like the Agricultural Credit Guarantee Scheme and Universal Primary Education It wasn't until the late 1980s, amid a severe economic crisis, that the government implemented intentional poverty alleviation policies through SAP, which unfortunately worsened living conditions for many Various initiatives were launched between 1986 and 1993, including the Better Life Program and the National Directorate of Employment, but only a few, like Community Banks, remain effective today With the onset of civilian rule in 1999, the National Poverty Eradication Programme was introduced to tackle unemployment, particularly among graduates, but it faced criticism for inadequate impact and was ultimately terminated in 2015 amid allegations of corruption and mismanagement.

With the addition of the Sustainable Development Goals, the fight against extreme poverty has once again been revived with the start of a new administration in

2015 In order to achieve this, the Federal Republic of Nigeria's government has established a plan for reducing poverty that is based on the ideas of social investment

The National Social Investment Programs (NSIP), launched in 2015, encompass a series of initiatives aimed at addressing poverty in Nigeria through skill development, investment, and support Coordinated by the National Social Investment Office (NSIO) under the Federal Vice President, the NSIP includes key programs such as the Government Enterprise and Empowerment Programme (GEEP), the National Home-Grown School Feeding Program (NHGSFP), the Job Creation and Youth Empowerment Programme (N-Power), and the National Social Safety Net Program (NASSCO) These initiatives consist of various sub-programs, with NASSCO managing the Community and Social Development Project (CSDP), Youth Empowerment and Social Support Operation (YESSO), and the National Cash Transfer Programme (NCTP) N-Power features multiple components, including Graduate, Non-Graduate, Junior, and Innovation Hubs programs The NHGSFP and GEEP specifically focus on providing meals to primary school children and facilitating loan access for micro, small, and medium-sized enterprises Collectively, these four NSIP initiatives are backed by a budget of 500 billion Naira.

The N-Power program, part of the National Social Investment Office (NSIO), has successfully hired nearly 200,000 graduates for various subprograms, including N-Power Teach, Health, and Agro, benefiting 10 million individuals in its initial phase (NSIO, 2018) Additionally, the National Cash Transfer Program (NCTP) supports 297,973 families across 20 federal states with monthly stipends of 5,000 Naira The National Home Grown School Feeding Program (NHGSFP) employs approximately 90,760 chefs, providing meals to over 9 million schoolchildren in 24 states Furthermore, the Government Enterprise and Empowerment Program (GEEP) has issued 308,737 individual loans and 4,084 cooperative loans nationwide.

Case studies of poverty reduction initiatives in Nigeria and Cambodia reveal both similarities and differences among the three nations All three countries have at times adopted the structural adjustment strategies recommended by the International Monetary Fund (IMF), later replaced by the Poverty Reduction Strategy (PRS) Cambodia's poverty reduction plan emphasizes fiscal restraint, increased local income production, and structural reforms aimed at boosting agricultural output, tourism, and export growth Similarly, Nicaragua's strategy focuses on structural changes to reduce government spending and modernize the public sector, with an emphasis on increasing exports and conditional cash transfers In contrast, Nigeria's attempt at structural adjustment in the 1980s was deemed a failure, leading to various palliative measures such as the DFRRI, NDE, BLP, and NAPEP Most recently, Nigeria launched the National Social Investment Programme in 2016, which includes components like school food programs and loans for small businesses, highlighting the nuanced parallels and contrasts between the approaches of Cambodia and Nigeria.

2.4.3 Poverty reduction practices in Viet Nam

Vietnam has achieved sustainable poverty reduction and remarkable progress through collective national efforts, marking a significant accomplishment in the Doi Moi era of nation-building Since its establishment in 1945, the Party and State have prioritized the welfare of the people, reflecting the vision of former President Ho Chi Minh.

"Independence is meaningless if the people are not happy or free." As a result, "the Party's and Government's policies must deeply care for the lives of the people."

Consistent rules, coordinated implementation, and simultaneous application

The 13th National Party Congress Resolution emphasizes that prioritizing the welfare of the people, upholding labor policies, and ensuring job security and fair salaries are fundamental to national development and construction from 2021 onward.

Since the 9th National Party Congress, the Vietnamese Party has prioritized social welfare in its resolutions, emphasizing the importance of safeguarding social welfare and sustainably reducing poverty as key policies The 2013 Constitution of the Socialist Republic of Vietnam, particularly Articles 34 and 35, mandates the State to ensure equal opportunities for citizens to access social welfare and develop a robust social security system This includes support for the elderly, people with disabilities, and other disadvantaged groups, reflecting the nation's commitment to advancing in a socialist direction.

Vietnam has made remarkable strides in poverty reduction, serving as an inspiration for other developing nations Between 2016 and 2020, the government exceeded its poverty alleviation goals set by the National Assembly, with the percentage of poor families decreasing from 9.88% in 2015 to 2.75% in 2020, achieving an annual reduction rate of 1.43% Additionally, the proportion of poor families among ethnic minorities declined by 4% annually, surpassing the target of 3-4%, while poverty in poor districts fell by 5.4% each year, exceeding the initial goal of 4%.

The successes in poverty reduction can be attributed to enhanced knowledge and effective resource utilization within the political system Both federal and local governments have taken decisive actions, collaborated closely to implement policies, and rallied public support As a result, many families have successfully overcome poverty and requested removal from assistance lists, demonstrating a shift towards self-sufficiency Comprehensive programs, methods, regulations, and legislation aimed at poverty alleviation have been introduced simultaneously Furthermore, the government has prioritized policies that support vulnerable populations, including minorities and those in difficult situations, while gradually reducing unconditional aid and increasing conditional assistance programs.

The Government and Congress have prioritized poverty reduction by mobilizing significant social resources and budget allocations, amounting to a projected 120,000 billion VND for related projects Central funds contribute 35% of this total, while local social capital accounts for 41%, and the remaining 24% comes from contributions to the "Fund for the Poor" and social security initiatives of the Central Committee of the Viet Nam Fatherland Front.

Vietnam has adopted a comprehensive and multi-dimensional approach to defining poverty, having updated its poverty criteria eight times to reflect socio-economic changes As a result, Vietnam became one of the first 30 countries to implement multi-dimensional poverty measures, effectively aligning its minimum living standards with the United Nations Sustainable Development Goals.

CURRENT SITUATION OF POVERTY IN NORTHERN LAO

Overview of Laos

The Lao People's Democratic Republic (Lao PDR), established on December 2, 1975, is located in Southeast Asia at the heart of the Indochinese peninsula, bordered by China, Cambodia, Vietnam, Thailand, and Myanmar Spanning 1,799 km from north to south and 100–400 km in width, Laos covers an area of 236,800 km² The country can be divided into three regions: North, Central, and South The northern region is characterized by its hilly terrain, high elevations, and rugged landscapes, making transportation challenging In contrast, the central and southern regions are more accessible for trade and commerce due to their lower elevations, larger plains, and valleys.

Laos, located in the Northern Hemisphere's tropical climatic zone, experiences a predominantly tropical monsoon climate, which varies from north to south and across different elevations due to its diverse topography The country has two distinct seasons: the rainy season from May to October, driven by the hot and humid southwest monsoon from the Indian Ocean, and the dry season from November to April, marked by the cold and dry northeast monsoon Average annual rainfall ranges from 1600 to 1800 mm, while temperatures typically vary between 22°C and 42°C.

Laos, a landlocked nation, boasts a diverse landscape characterized by high mountains in the north and east, lower mountains in the south, and lowlands along the Mekong River Its extensive network of rivers, featuring numerous waterfalls and rapids, creates an ideal environment for irrigation and hydroelectric projects The country holds significant potential for industrial tree planting and afforestation, particularly for the production of paper and wood products Additionally, Laos is rich in mineral resources, including iron, coal, bauxite, copper, potassium, gold, lead, zinc, quartz, gypsum, and limestone, with some resources being mined on an industrial scale These abundant natural resources, alongside widespread forests, support the growth of essential industries such as steel, copper, alumina, and cement.

Laos, with its north to south-facing mountains and plains, is rich in rivers and streams ideal for hydropower and irrigation projects The country boasts a hydropower potential of approximately 23,000 MW, driving its ambition to become a key power supplier for ASEAN nations through the development of its hydroelectricity sector Significant investments have been made in large hydroelectric projects, including the Hong Kong thermal power plant and the Nam Theun II hydropower project, which together contribute 1,080 MW of capacity in the Central region Currently, over 15 hydroelectric projects are underway, with the Northern region alone having more than 1,000 MW of installed capacity A comprehensive 500 KV transmission line system connecting the North, Central, and South will ensure sufficient electrical energy for both domestic consumption and electricity exports.

Situation of poverty in Laos and northern Lao provinces

Poverty among peasant households is a significant characteristic of the economic landscape in the Lao People's Democratic Republic (PDR), highlighting the country's developmental challenges The underdeveloped commodity economy and nascent market system contribute to persistent poverty, particularly in rural areas where self-sufficiency prevails With an incomplete market structure and limited integration across the nation, Laos experiences poverty typical of a lagging agricultural nation, which is slowly and challenging transitioning towards an industrialized society.

The new poverty line in Laos, established by LECS 6 (2018/2019), utilizes a basic needs-based cost approach, setting the national poverty line at 280,910 kip per month per person at 2019 prices, reflecting a 16% increase from 241,699 kip in 2012/13 In 2018/19, the average monthly consumption per capita was 463,067 kip, which is 67% above the poverty line (WB, Poverty Profile in Lao PDR, 2020).

Laos, despite experiencing high economic growth rates averaging 6.9% annually from 1993 to 2011, remains one of the world's least developed countries, with 38.6% of its population living in poverty as of 1997 A survey from early 2000 revealed that 253,000 households, or 39% of the total, were impoverished, with rural areas particularly affected, as 43.8% of poverty-stricken households were located there Additionally, 10 out of 17 provinces and 69 out of 140 districts frequently faced food shortages, highlighting poverty as a critical focus in Laos's socio-economic development strategy.

In 5 years (2001-2005), poverty reduction has made great progress, reducing 135,000 poor households; In the period 2006-2010, there were 72 poor districts nationwide, of which 47 were particularly poor Although the rate dropped to 27.6% in

2008, the figure shows that poverty is still very high

In 5 years (2006-2010), Laos has achieved many achievements in economic development, average economic growth reached 7.9%, per capita income reached 1,069 USD/person/year (exceeding the set target), the number of poor households decreased from 27.7% in 2003 to 20.4% in 2010 (Văn phòng chính phủ Lào, 2011)

As a multi-ethnic country, the standard of living materially and culturally is low

In 2006, over 80% of the population resided in rural regions, with some in remote areas characterized by mountains and high vulnerability to natural disasters, lacking the conditions for sustainable development Agricultural production heavily relied on natural resources, and in hilly regions, indiscriminate burning was still prevalent Additionally, scientific and technological advancements were not being utilized in cultivation and breeding practices in both plains and highland areas.

Rural businesses primarily operate on an individualistic basis, heavily reliant on natural resources, with limited access to infrastructure and social services By 2010, 28.7% of households were still classified as poor, while unplanned rice cultivation covered 120,000 hectares The average annual income was only $650 per person, with even lower figures reported in mountainous regions.

In some rural areas, individuals face significant challenges, with an annual income of just $200 per person and food shortages lasting between four to six months The literacy rate for those aged 15 and over is a mere 73%, while only 71% of the population has access to clean water, and just 47.3% have hygienic toilets Life expectancy is low at 61 years, and socio-economic infrastructure remains underdeveloped Only 125 districts have year-round accessible roads, with 6% of districts lacking electricity, affecting 51% of villages and 42% of households.

The World Bank-funded poverty eradication initiative was launched across 1,912 copies, featuring 239 typical clusters in 20 districts across five provinces: Houphan, Xiangkhouang, Savannakhet, Salavan, and Champak, including two northern provinces, Houphan and Xiangkhouang By 2006-2007, the Lao government successfully implemented a plan targeting poor households in 23 residential clusters within 23 villages located in the country's 47 poorest districts.

Laos has made notable progress in poverty reduction, with the percentage of the population living on just $1 a day dropping from 90% in 1990 to 29% in 2017 However, as of 2018/2019, the national poverty rate was still estimated at 13.8%, indicating that nearly one-fifth of the population survives on less than 9,364 kip daily ($1.10) (World Bank, 2020) Compared to neighboring countries, Laos continues to face a high poverty rate, ranking second from the bottom in the region Addressing poverty remains a key focus in Laos' socio-economic development strategy moving forward.

Table 3.1: Poverty rate in ASEAN countries (2015)

Despite certain successes in poverty reduction, poverty reduction is still a key task in the socio-economic development orientation of Laos, especially in the northern provinces in the coming time

In 1990, a staggering 90% of Laos' population survived on just $1 a day, but by 2017, this figure had improved, with 29% living on $1.25 daily According to the revised poverty method, the national poverty rate in 2018/2019 was estimated at 18.3%, indicating that nearly one-fifth of the population still struggles to subsist on less than 9,364 kip a day, equivalent to $1.10.

Poverty in Lao PDR is on the decline, with recent estimates indicating a 6.3% reduction in the poverty rate, dropping from 24.6% in 2012/13 to 18.3% in 2018/19 This improvement is highlighted by the adoption of a revised calculation methodology, which provides a more accurate comparison with previous assessments Both the new and old methods confirm that Lao PDR is making significant strides in poverty alleviation.

Rural areas have experienced a more rapid decline in poverty compared to urban regions, yet a significant disparity remains Between the LECS 5 and LECS 6 surveys, urban poverty reduction stagnated at approximately 7% In contrast, the rural poverty rate decreased by 7.65% over the same six-year period, reaching 23.8%.

Area Poverty Headcount rate Poverty Gap Squared Poverty Gap

Source: collecting from LECS 5 and LECS 6 (Poverty Profile in Lao PDR, p.17)

Poverty has significantly decreased in rural areas, with the poverty gap dropping from 7.7% in 2012/13 to 5.18% in 2018/19 and the squared poverty gap reducing from 2.7% to 1.7% In contrast, urban areas have seen no major changes in these indicators Despite the notable reduction in rural poverty, the rate remains higher than in urban regions, with a disparity of 5.1% in rural areas compared to 1.3% in urban areas in 2018/19.

Urban areas exhibit significantly higher consumption levels compared to rural regions Between 2012/13 and 2018/19, the real per capita consumption of rural households grew by 3.1% annually, while urban households experienced a lower increase of 2.6%.

Table 3.3: Per capita Consumption by rural- Urban, 2018/19

Annualized growth in real per capita consumption: 2012/13-

2018/19 LaoPDR Urban Rural Lao PDR Urban Rural

Source: Collecting from LECS 5 and LECS 6 (Poverty Profile in Lao PDR, p.17)

The average consumption in urban areas stands at 900,772 Kip per person per month, almost double that of rural areas

Some aspects of poverty in Laos

Following the Resolution of the Fourth Lao People's Congress in 1986, Laos underwent comprehensive renovations that significantly transformed the country During the third 5-year plan from 1986 to 1990, the economy showed promising results, with the gross domestic product increasing by 7% in 1986 and reaching 6.6% by 1990 Notably, inflation was successfully reduced from a staggering 115% in 1985 to just 19.1% in 1990 (Tran, 1996).

From 1991 to 1995, Laos experienced an average GDP growth of 6.4% annually, with national income reaching $344 per person by 1995, while imports and exports totaled $274.3 million and $485.5 million, respectively (Laos Ministry of Planning and Investment, 2005) During the fourth five-year plan (1996-2000), despite the impact of the Asian financial crisis, Laos maintained an average GDP growth of 5.8% per year, with exports at $324 million and imports at $540 million in 2000 (Laos Ministry of Planning and Investment, 2005) In the fifth five-year plan (2001-2005), the economy continued to thrive, achieving an average growth rate of 6.2%, surpassing many Southeast Asian economies (Kham Mon Chan Tha Chit, 2017) By 2010, per capita income reached an estimated $841, and inflation remained below 10% per year from 2001 to 2010, except for a spike to 15.2% during 2002-2003 (Laos Ministry of Planning and Investment, 2005).

Agriculture has been a vital economic sector, contributing approximately 50% of the total GDP and employing 85% of the population Additionally, the cottage industry represents around 92.98% of national investment The country's exports primarily consist of wood, electricity, and forest products, while imports mainly include consumer goods and machinery.

Laos has experienced significant advancements, particularly in food production, which rose from 1.6 million tons in 1986 to 2.6 million tons in 2005, establishing the country as self-sufficient in food with national reserves and export capabilities The economic growth rate accelerated from approximately 6% in 2000 to 7.2% in 2005 By 2005, Laos had established trade relations with 50 countries and territories, signed agreements with 19 nations, and benefited from General Preferential Program (GSP) status in 35 countries This period of renovation has led to gradual improvements in both the material and spiritual lives of the Lao people.

After 2000, Laos' economy continued to heavily rely on resource extraction, which the government views as a key driver for growth and revenue generation This approach aligns with the country's poverty alleviation strategy established in 2004 and has been reinforced in the subsequent 5-year plans (2005-2010, 2011-2015), aiming to structure the national economy around resource exploitation.

Laos has experienced significant economic growth driven by its strategic alignment with China's regional dynamics, showcasing improved economic indicators year after year The country’s abundant resources in hydropower, mining, and agriculture serve as the backbone for this growth and regional integration The Central Bank of Laos reports a remarkable sixfold increase in exports from $320 million in 2001 to $1.85 billion in 2011, with resource exploitation accounting for 58% of total exports Notably, while electricity exports have seen slight fluctuations, the mining sector has surged from zero exports in 2001 to $812 million in 2011 Similarly, the agricultural sector has shown impressive growth, with total exports rising from $9 million in 2001 to nearly $172 million in 2011.

At the same time, in the period 2010-2011, Laos' resource tax revenue increased

Between 2001-2002 and now, there has been an eightfold increase in production value, reaching nearly 100 million USD This significant growth is attributed to the doubling of hydropower and mining output, alongside rising mineral prices, particularly for gold.

Between 2000 and 2011, Vietnam, China, and Thailand emerged as the top investors in Laos, contributing $4.77 billion, $3.43 billion, and $2.85 billion, respectively Collectively, these investments accounted for a significant 79.2% of the total foreign direct investment (FDI) in the country.

The hydropower and mining sector in Laos has experienced significant growth, with 2,690 projects contributing to 51.2% of total investment capital However, official statistics fail to capture the full extent of economic activities, as they overlook the contributions of small traders, small-scale exports, and smuggling operations prevalent in border regions.

Laos' national economy encompasses various sectors that are continuously evolving, with rapid advancements in production and business models across the country Both domestic and foreign investment capital have seen consistent growth, leading to significant improvements in the quality of life for the people Notably, Laos' GDP per capita rose from just $118 in 1980 to over $1,800 in 2015, contributing to a substantial decrease in the poverty rate, particularly in the eight northern provinces.

Lao PDR has made significant strides in eradicating hunger, with the poverty rate declining from 24.6% in 2013/2014 to 13.8% in 2018/2019 This progress is particularly notable in rural areas, where poverty reduction has been robust, although the pace of poverty alleviation in urban regions has experienced a slowdown, according to the Lao Statistics Bureau (2019).

The COVID-19 pandemic has significantly impacted the global economy, with the International Monetary Fund (IMF) projecting a world economic growth decline of -4.9% in 2020 Specifically, Thailand's economy is expected to contract by -7.7%, while China may see a modest growth of 1.0% In April 2020, the IMF estimated Laos' economic growth at 0.7% Despite these challenges, Laos experienced a 7.1% increase in business investment licenses during the first half of 2020 and a 5.2% growth in electricity production compared to the previous year Other sectors, including internet services, finance, and health, are gradually recovering, supporting economic growth and budget revenues for COVID-19 prevention efforts Commercial bank credit disbursement to the economic sector rose by 7.5% in the first five months of 2020 The agricultural sector is projected to grow by 0.9-1.7%, still below the normal growth rate of 2.8-3%, which poses a risk of reversing poverty reduction gains, particularly in northern Laos, where many ethnic minorities reside.

3.3.2 Development of rural and urban disparities

Rural areas experience a poverty rate three times higher than urban regions, with nearly 90% of the poor population residing in these areas, despite rural residents comprising 67% of the total population However, the urban poor population has been rising in recent years From 2012/13 to 2018/19, poverty decreased more rapidly in rural areas, coinciding with an influx of people moving to cities During this period, the percentage of the urban poor rose from 9.2% to 12.4%, while the overall urban population increased from 28.8% to 32.5% (World Bank, 2020).

Vientiane capital has experienced continuous socio-economic development, with a positive shift in its economic structure and a growth rate of 12.1% per year The capital's gross product reached 12,083.78 billion kip, resulting in a per capita income of 1,755 USD, significantly surpassing the target of 455 USD This progress has led to notable achievements in poverty alleviation, with only 10% of households classified as poor as of August 2018 In comparison to the rest of the country, Vientiane's poverty reduction efforts are more effective, particularly when contrasted with the rural and mountainous provinces such as Oudomxay, Xayabury, Xiengkhuang, Huaphanh, Bokeo, Phongsaly, and Luangnamtha.

Rural areas often experience lower health quality and literacy rates compared to urban regions, despite an overall increase in these metrics Significant disparities exist between rural and urban education and health, particularly in nutrition Additionally, social services for farmers have been insufficiently provided, exacerbating these challenges.

Table 3.7: Rural and urban education in Lao PDR (2015)

Male Female Total Male Female Total

Source: Food and Agriculture Organization of the United Nations

CURRENT ACTIVITIES OF POVERTY REDUCTION IN

Factors impacting poverty reduction

Poverty is a complex socio-economic issue that affects individuals, families, and communities, and is a significant barrier to development faced by countries worldwide Addressing poverty is essential for fostering economic growth and achieving social justice, though the approaches and priorities vary across different social regimes As a global challenge, poverty also necessitates collaborative efforts from the international community to find effective solutions.

To effectively combat poverty, it is essential to accurately identify the various interrelated factors that contribute to it Poverty is influenced by a complex interplay of social, economic, and environmental elements, rather than a single cause These factors include natural external circumstances, socio-economic conditions, and the internal dynamics of impoverished households, all of which are interconnected and contribute to the prevalence of widespread poverty.

4.1.1.1 Factors in the intrinsic conditions of poverty-stricken households

Individuals living in poverty often face food scarcity, resulting in limited market consumption and a lack of business activities Their economic mindset remains underdeveloped, rooted in a natural economy that is primarily agricultural and self-sufficient Consequently, the poor possess fundamentally different thoughts and mentalities compared to the affluent, often lacking the entrepreneurial spirit and knowledge necessary to engage in profitable business ventures or manage farms.

Lao PDR is one of the world's poorest countries, characterized by a diverse population of ethnic groups and a low standard of living Over 80% of its residents inhabit rural areas, often in remote locations that are vulnerable to natural disasters and lack sustainable development The economy heavily relies on traditional agriculture and animal husbandry, with practices in hilly regions still involving unplanned rice cultivation Additionally, scientific and technological advancements have yet to be integrated into farming and livestock management in the plains and highlands.

Over the last four decades, the integration of advanced scientific and technological methods in production, along with investments in irrigation infrastructure, has significantly transformed Lao agriculture Previously reliant on rice imports, Laos has achieved self-sufficiency in rice production since 2000, even generating surplus for export.

Lao PDR is one of the most ethnically diverse countries in Southeast Asia, comprising four main ethnic groups: Lao-Tai (62.4%), Mon-Khmer (23.7%), Hmong-

Iu Mien (9.7%) and Sino-Tibetan (2.9%) (Lao Statistics Bureau, 2016), officially divided into 50 ethnic groups (Douangtavanh, 2018), can be subdivided into more than

Laos is home to around 200 ethnic subgroups, with the Lao ethnic group comprising 53% of the population, followed by Khamu at 11%, Hmong at 9%, and other groups making up 27% (King & Van de Walle, 2010; Bureau, 2015) These groups are distributed across three main topographical regions: Lao Loum (lowlands), Lao Theung (midlands), and Lao Soung (uplands) This geographical classification reflects traditional agricultural practices, where lowland communities primarily engage in rice cultivation, while those in the midlands and uplands utilize diverse farming methods (Ministry of Health, 2015).

Since the 1981 Conference of Ethnic Minorities, the Lao government has officially abolished three geographical classifications, opting instead to categorize the population into four ethnic language groups: Lao-Tai, Mon-Khmer, Hmong-lu Mien, and Sino-Tibetan Despite this shift, the traditional terms Lao Loum, Lao Theung, and Lao Soung remain prevalent in everyday conversation, reflecting the ongoing impact of changing agricultural and geographical practices among ethnic groups.

The Lao-Tai language family includes eight distinct ethnic groups primarily located in lowland areas, while the Mon-Khmer language family comprises 33 ethnic groups Additionally, the Hmong-Lu Mien language family features two ethnic groups, and the Sino-Tibetan language family consists of seven ethnic groups, as illustrated in Table 1.

The highlands of Laos are traditionally home to the Hmong-lu Mien and Sino-Tibetan peoples Among the Lao-Tai groups, Buddhism is the predominant religion, whereas other communities practice animism, reflecting a diverse spiritual landscape (Minority Rights Group, 2018).

Table 4.1: Language groups in Lao PDR

Tibet- Burma Akha, Phounoy, Lahou, Syla, Hayi, Lolo, Hor

Mon-Khmer Khmou, Prai, Xingmoun, Phong, Thaen, Erdou, Bid, Lamed,

Samtao, Katang, Makong, Tri, Yrou, Trieng, Taoy, Yae, Brao, Katu, Harak, Oy, Kriang, Cheng, Xuay, Nhaheun, Lavy, Pacoh, Khmer, Toum, Ngouan, Moy, Kree, Brou

Lao, Tai, Phouthay, Lue, Nhoaun, Yang, Xaek, Thaineua

Source: Douangtavanh Kongphaly 2018 “List of all ethnicity in Laos.”

The Thai-Kadai or Lao-Tai ethnic minority group is the largest in Laos, residing in 8 of the country's 18 provinces, including Attapeu, Champasack, Saravan, Savannakhet, Khammuane, Vientiane, and Xiengkhouang The population is predominantly located near the capital, Vientiane, with 65% living in rural and mountainous areas, often in isolated communities that are difficult to access due to challenging terrain and inadequate road infrastructure Laos is governed at four administrative levels: central, provincial, district, and village.

In 1992, the Lao Institute of Ethnology identified 49 distinct ethnic groups within Laos The Lao ethnic group is the largest, representing 54.6% of the population, while the other groups are classified as ethnic minorities.

Laos is characterized by a diverse ethnic landscape, lacking a single majority group in terms of population, residence, and culture According to the recent Attendance Poverty Assessment (PPA) by the Center for National Statistics, with support from the ADB, the politically dominant Laotians represent less than 25% of the overall population in Lao PDR.

According to the Lao PDR National Strategy for Growth and Poverty Alleviation (NGPES), 37 out of 142 districts are classified as very poor, while an additional 48 districts are considered poor, highlighting a significant concentration of poverty in these areas Notably, these districts also have a higher proportion of minority populations (Lao, 2004).

Figure 4.1: Geographical based poverty rate

Map 1 shows poverty rates by province in Laos It can be seen that the highest poverty rate corresponds to the provinces with the highest concentration of ethnic minority groups, as shown in Map 2 below

Figure 4.2: Ethnic groups in Laos

Northern Lao provinces are home to a large concentration of ethnic minorities Especially in Luang Prabang, the province has all ethnic groups living in Laos

Poverty among rural and mountainous farmers is a significant characteristic of economic development in Lao PDR, where the commodity economy remains underdeveloped and the market economy is still in its infancy Many impoverished areas rely on a natural economy, emphasizing self-sufficiency The lack of a unified and developed market structure contributes to the persistent poverty, which reflects the broader challenges faced by a lagging agricultural country transitioning slowly towards industrialization.

Local government’s policies for poverty reduction

4.2.1 The situation of implementing policies for poverty reduction

From 2016 to 2020, rural development, poverty alleviation, and cooperative initiatives in the northern provinces were systematically organized and continuously implemented, guided by legal frameworks established by the Party and Government The efforts were aligned with the objectives outlined in the Resolution of the X Congress of the Party, the Eighth 5-Year National Socio-Economic Development Plan, and the National Assembly's resolutions This strategic approach led to significant achievements in meeting the set goals for each period, focusing on key tasks essential for progress.

(1) Developed a 5-year rural development and poverty reduction plan (2016 - 2020); At the same time, update the 5-year agro-forestry development plan (2016 -

2020) in the direction of 3 pillars, such as: Agriculture, forestry and rural development;

The article outlines four essential work plans aimed at enhancing agricultural and rural development These include a comprehensive work plan to ensure food security, strategies for transforming agricultural and forestry production into marketable commodities, a management plan for forests and forest resources, and a rural development plan focused on poverty alleviation Together, these initiatives represent a holistic approach to fostering sustainable growth and improving livelihoods in rural areas.

The Government and National Assembly are urged to adopt the Law on Population and Occupational Planning No 45/QH, enacted on June 15, 2012, and implemented through Decree 204 by the President on August 1, 2012 This law serves as a foundational legal framework for the cohesive implementation of residential and occupational planning across the country, systematically integrating it into the legal system.

(3) Organized the implementation of Directive No 097, dated 18.01.20 of the Politburo on strengthening leadership, directing rural development and poverty alleviation of people nationwide

The study and adjustment of Prime Minister's Decree No 309, dated November 14, 2013, regarding difficult standards and development criteria, culminated in Decree No 348, issued on November 16, 2017 Additionally, the Government's Guidance No 0830, dated April 6, 2018, was released to facilitate the implementation of Decree No 348 This involved disseminating information to ministries, ministerial-level agencies, mass organizations, social organizations, and local authorities, while also gathering data on achievements and challenges related to the difficult standards and criteria for the three-level congress held nationwide.

The consolidation of assessment results at the initial and final stages of training, in accordance with Government Decree No 348, has been largely completed to support the implementation of the Congress Resolution and the five-year national socio-economic development plan Notably, a pilot program has been successfully conducted in Tam commune, Pac-tuna district, Vientiane city, as well as in four northern provinces of Laos: Pu-xa-lu, U-dom-xay, Xiêng-ca, and Huo-phăn, as part of efforts to reduce poverty and malnutrition in rural areas Comprehensive tools and evaluation measures at both family and district levels have been prepared and coordinated with relevant departments for effective implementation However, after gathering information on challenges and development, it was identified that the number of families, development villages, and difficult districts fell short of the increased criteria.

At the same time, in the past 5 years, the northern provinces have faced many impacts, especially the impact from natural disasters, causing the cost of difficulties to increase

Between 2016 and 2020, significant coordination with local authorities across provinces and cities was undertaken to study regulations on priority development centers This effort led to the Government's consideration and the Prime Minister's issuance of Decision No 65 on August 19, 2016, which established 449 priority development centers nationwide These include 91 centers focused on rural development and poverty reduction (20 central and 71 local), 145 centers for stable residential and occupational planning (4 central and 141 local), and 213 urban village construction centers Additionally, guidance No 1018/CP, dated October 12, 2016, was released to facilitate the implementation of this decision.

In 2020, the government established 997 priority development centers across the nation, following an in-depth review of regulations from 2019-2020 This initiative aims to guide central and local departments, as well as various economic sectors, in effectively implementing the designated centers.

The coordination of rural development and poverty alleviation in northern provinces is facilitated by the Ministry of Agriculture and Forestry, in collaboration with central agencies and local governments This process is managed through ministerial offices and provincial committee offices, with Vientiane serving as the coordination center The Ministry has designated the Department of Rural Development and Cooperatives as the primary body for coordinating efforts and providing advice to the ministry.

The relevant departments have collaborated to inspect and revise legal documents concerning cooperative work proposed by the Government, ensuring their suitability for both short-term and long-term use A Research Committee has been formed to amend the Law on Organization of Agricultural Production, focusing on finalizing Decree 136 from the Prime Minister and Decisions 2983 and 2984 from the Government regarding agricultural groups and cooperatives, with the aim of proposing an upgrade to the existing decree.

No 606, dated 26.11.20 of the Government on groups and cooperatives has been issued

Between 2017 and 2019, significant non-refundable and borrowed capital support was received through bilateral and multilateral cooperation, including aid from China This funding, amounting to 41 billion kip, facilitated approximately 20 projects across three villages in Laos: Xienglom village in Sangthoong district, and Thadockham in Xaythani district, Vientiane City.

The World Bank has provided loans totaling 27 million USD to support poverty and malnutrition reduction projects, which are set to be implemented over five years (2019-2024) across 881 villages in 12 districts within four northern provinces: Phongxaly, Udomxay, Huaphan, and Xiengkhoang.

Laos has received $383,000 in aid from China through the Mekong-Lancang cooperation framework, aimed at enhancing cooperative research and development This funding supports the poverty reduction capital fund, which is being implemented across 10 provinces and 43 districts, particularly focusing on four key poverty-stricken provinces in northern Laos: Phongxaly, Udomxay, Huaphan, and Xiengkhoang.

4.2.2 The results of implementing policies for poverty reduction

The organizational structure of the rural development sector and cooperatives in Laos has been reformed following the Government's integration of rural development and poverty alleviation into the Ministry of Agriculture and Forestry, as outlined in Decision No 21 on April 11, 2016 This transformation has involved adjusting roles, responsibilities, and personnel planning at both central and local levels At the central level, the Department of Rural Development and Cooperatives comprises six divisions, employing 68 staff members, including a director, three deputy directors, six department heads, and twelve deputy heads The regulatory framework established applies to all eight northern provinces of Laos, ensuring a cohesive approach to rural development and poverty reduction across the country.

At the provincial level, the Department of Agriculture and Forestry oversees rural development sectors and cooperatives, organized into four key working groups: Administrative-Organization, Results Planning and Evaluation, Rural Development, and Population-Occupational Planning, along with the Cooperative Incentive Group and Fund This structure comprises a total of 275 employees, including 18 sector heads, 43 deputy heads, and 211 staff members.

At the district level, rural development units and cooperatives operate under the Department of Agriculture and Forestry, supported by three key working groups: the administrative group, the planning and evaluation group, and the rural development and population planning group Additionally, there is a cooperative incentive and fund group, collectively comprising a workforce of 556 personnel.

Poverty reduction activities from business stakeholders and others

In June 2018, the Regular Government Conference resolved that the Department of Rural Development and Cooperatives, along with the Ministry of Agriculture and Forestry and the National Institute of Economic Research, would study and revise legal documents related to cooperatives for both short-term and long-term applicability The Ministry has tasked the Department with urgently researching and updating these legal frameworks, specifically aiming to enhance the Decree on groups and cooperatives and Decree No 606/CP, to be implemented nationwide Over the past five years, efforts have been made to collect information and assess the status of groups and cooperatives, resulting in the establishment of 4,784 agricultural production groups.

There are 57 cooperatives in total, comprising 33 agricultural cooperatives and 24 credit cooperatives, all operating under cooperative principles Notable examples include the Phieng Mountain Coffee Production Cooperative in the CPC area, the Coffee Cooperative of Champasac province, and the Agricultural Promotion Cooperative of Hongxa district in Xaynhabuly province These cooperatives have actively organized training sessions and disseminated strategies to promote the establishment of groups and cooperatives across various provinces and cities nationwide.

To enhance rural development and alleviate poverty, the Department of Rural Development and cooperatives has collaborated with international organizations and development partners to secure non-refundable aid and loans Key funding sources include the Laos-Vietnam border development cooperation capital, Laos-China poverty alleviation pilot capital, the Hardship Mitigation Fund, World Bank loans, the Mekong-Lancang Special Fund, and aid from the Luxembourg Development Foundation and various NGOs These funds primarily target infrastructure development, improving living conditions, and fostering the establishment of groups and cooperatives.

Over the past five years, Laos has invested 4,390.69 billion kip in rural development, poverty alleviation, and cooperative projects, which accounts for 69.61% of the planned capital needs of 6,307.12 billion kip The government's investment, totaling 733.12 billion kip, has supported 1,183 projects, with many completed and operational This includes 899 infrastructure initiatives, such as 42 irrigation projects, 37 Phai-nặm-lôn constructions, 3 Agri-forestry technical service centers, 37 leveling projects, 40 initiatives promoting cultivation and breeding, and 11 new market constructions.

The initiative encompasses a total of 183 road construction projects and 19 bridge construction projects, alongside 47 village planning initiatives Additionally, there are 15 community clean water construction projects and 49 power and transformer development projects The plan includes 113 projects aimed at building schools and dormitories, 5 projects for providing teaching and learning equipment, and 12 projects dedicated to constructing medical facilities Furthermore, there are 51 village hall projects and 51 residential planning relocation projects, as well as 154 projects designed to encourage expertise in various fields.

The Government has allocated additional budgets to address public debt for fully completed rural development and poverty reduction projects In 2016, a capital plan was established to tackle public debt with an allocation of 400 billion kip for rural development initiatives By 2017, four capital allocations totaling 307.06 billion kip supported 76 projects In 2018, a special capital plan was introduced for debt repayment through a three-corner debt reversal method Continuing this trend, in 2020, central management facilitated debt payments amounting to 123.27 billion kip for 18 projects, utilizing both three-corner debt reversal and additional bonds.

* For the structure of each specific capital package as follows:

(1) Capital for rural development and poverty alleviation at central and local levels:

- Rural development capital at 20 key points of central management:

The Government has prioritized 11 out of 20 key points for rural development and poverty reduction at the central management level, targeting 11 districts across 7 key provinces A total of 146 projects have been initiated, with an investment capital of approximately 991.46 billion kip, of which 56.81 billion kip comes from the Government of Vietnam So far, 124 out of 146 projects have been completed, focusing on various sectors: 8 projects in agriculture, 2 in industry and trade, 53 in transportation, 4 in energy and mining, 27 in education and sports, 3 in health, and 27 in other areas.

- Rural development capital at 71 key points at the local level managed:

71 key points of rural development and poverty alleviation at the local level include 11 village clusters in 61 districts and 17 provinces across the country; in which,

Under Directive No 65/CT-TTg, a management list has identified 53 key points focusing on socio-economic infrastructure development and poverty alleviation, encompassing a total of 486 projects with an investment capital of approximately 3,130.55 billion kip This includes 832 million kip from private sectors and 336.62 billion kip from government investments Of these, 410 projects have been completed, representing an investment of 1,796.68 billion kip, with the government disbursing 768.94 billion kip, or 42.85% of the investment debt projects Key sectors targeted include agriculture (62 projects), industry and trade (5 projects), transport (135 projects), energy and mining (24 projects), education and sports (51 projects), health (40 projects), and other sectors (90 projects).

(2) Central and local employment and resettlement planning capital

- Capital planning for resettlement and employment state-level management:

The state-level relocation planning capital package has approved 78 projects, amounting to a total investment of 296.31 billion kip Out of these, 74 projects have been completed with a combined capital of 226.04 billion kip, and 79.94 billion kip has been disbursed, representing 26.97% of the total investment debt projects The primary sectors for investment include agriculture with 22 projects, transport with 19 projects, health with 12 projects, education and sports with 11 projects, as well as 2 projects each in industry-trade and energy-mining sectors.

- Resettlement planning capital and employment management at the local level

Over the past five years, localities have implemented 324 resettlement and employment planning projects across 70 of 141 key areas, with a total investment of 1,490.49 billion kip The focus has been on regions with high foot traffic and those sensitive to security risks Out of these, 291 projects have been completed, with an investment of 906.88 billion kip and 433.15 billion kip disbursed, representing 52.08% of total investment obligations Key sectors of investment include agriculture (36 projects), industry and trade (2 projects), transport (95 projects), energy and mining (19 projects), education and sports (29 projects), and health (22 projects), along with other fields.

Over the past five years, a total of 453.54 billion kip has been allocated to 1,667 projects aimed at poverty reduction across 43 districts in 10 key provinces This funding includes 62 billion kip from the government through 132 projects and 391.54 billion kip from foreign aid across 1,535 projects Of these, 1,405 projects have been successfully completed, with a total investment of 308.5 billion kip, primarily focusing on the education and sports sector, which encompasses 490 projects, as well as the transportation sector.

363 projects, health - hygiene and epidemiology field 413 projects, agricultural sector

123 projects, energy sector 16 projects and a number of other fields, contributing to gradually improving and enhancing the quality of people's lives

Laos is dedicated to enhancing infrastructure and improving the lives of its citizens by attracting aid from international agencies, NGOs, and preferential loans from key partners like China and Vietnam Notable contributions include Heavy Touch, which has invested EUR 3,083,178 in three districts across three provinces, focusing on 67 villages From 2016 to 2020, their initiatives aimed to improve nutrition for mothers and children under five, foster inter-ministerial cooperation, and develop information-based policies to address nutrient deficiencies in critical provinces Additionally, Child Fund has been active in 33 villages across two districts, furthering development efforts in the region.

Between 2016 and 2020, a province received a total aid capital of $4,444,169 (41.77 billion kip) for two key projects aimed at enhancing children's development and access to quality education These initiatives focus on improving village-level coordination in district planning, thereby creating better opportunities for children and the community through effective management and implementation of departmental tasks The Luxembourg Development Agency contributed €118,178 (1.35 billion kip) for a project from 2019-2020, which included organizing experience exchange conferences on rural development and providing sustainable training for officials The German Co-operative Association implemented a project with an aid value of $700,000 (7 billion kip) during the same period, focusing on legal document adjustments and the establishment of production groups and cooperatives through professional training and seminars Additionally, Gle Agency's project, funded at $350,000 (3.15 billion kip) from 2016 to 2019, emphasized training, field trips, and knowledge exchange on cooperative management for officials from the Department of Rural Development and Cooperatives.

In addition, it also received preferential loans from the World Bank (WB) to implement poverty reduction and malnutrition reduction projects with a total value of

27 million USD, implemented in 881 villages of 12 districts, in 04 northern Lao provinces, including: Phongxaly, Udomxay, Huaphan and Xiengkhoang with a term of

From 2019 to 2024, the Chinese Government contributed $383,000 in aid under the Mekong-Lancang cooperation framework to enhance sustainable cooperative efforts in Laos This initiative successfully culminated in a conference held in Pacxe City, Champasak province, where representatives from eight ASEAN member countries gathered to exchange valuable experiences on cooperative work.

(5) Credit loans of the Policy Bank and the village development capital fund

Over the past five years, the Department of Rural Development and Cooperatives has effectively supervised, promoted, and coordinated credit loans from the Policy Bank and the Village Development Capital Fund, demonstrating a commitment to enhancing rural financial support and development.

Interview results

About 30% of businesses focus on agricultural production, encompassing traditional crop farming and livestock rearing Approximately 20% are involved in handicraft production, leveraging local materials and generational skills Additionally, 22% operate food processing units that convert local produce into marketable products The remaining 28% consists of small-scale retail shops selling essential goods and service-based businesses, including tailoring, repair services, and local tourism initiatives.

Figure 4.3: Business types and operations

The average operational duration of the businesses surveyed was 7 years, ranging from less than a year for newly established entities to over 15 years for well-established ones Notably, approximately 72% of these businesses were family-run, emphasizing the significance of family labor in the home-based sector In contrast, the remaining 28% employed between 6 to over 10 local workers, suggesting a promising opportunity for community employment generation.

According to the author's survey in 2 northern Lao provinces, Xiong Cau and Luang Prabang, the results are as follows:

Agriculture Handicraft production Food processing Others

1-5 workers 6-10 workers More than 10 workers

Evaluation indicators Progress No progress Inferior than before

Go to work far away, export labor

In two surveys conducted in Xiong Cau and Luang Prabang, 60 interviewers found that households have improved over the past five years in income, basic assets, and food security However, areas showing little progress include housing, education, nutritional health, animal husbandry, and access to information Additionally, indicators such as travel and commuting distances have worsened These trends are largely attributed to the prolonged impact of the Covid-19 pandemic on the lives of residents in both provinces.

The interviewed home-based business owners exhibited a balanced gender distribution, with a slight male majority Their ages ranged from 22 to 60, averaging 35 years Educational backgrounds varied widely, from those with only primary education to university graduates, although most had completed secondary education This group reflected the region's rich demographic diversity, including several minority ethnicities, highlighting the cultural variety of northern Laos.

This analysis of interviews with home-based business owners in northern Laos reveals critical insights into the relationship between entrepreneurship and poverty reduction By examining their responses, we uncover the complex dynamics that influence both economic growth and community development in the region.

Many business owners started their ventures due to limited job opportunities, utilizing their skills and local resources, driven by a strong entrepreneurial spirit and the need for financial independence Their daily operations often blend traditional practices with modern business activities, showcasing a connection between cultural heritage and entrepreneurship For most participants, their businesses serve as essential lifelines for their families, as revealed by financial data on investments and revenues While some secured loans or used savings for startup capital, many relied on informal funding, highlighting the need for accessible microfinance options Customer bases were primarily local, although some businesses successfully reached broader markets Marketing strategies varied, with some entrepreneurs using social media while others depended on word-of-mouth The digital divide indicates that improved access to digital marketing training could significantly enhance market expansion opportunities for these entrepreneurs.

Business owners face various challenges, including infrastructural inadequacies and bureaucratic hurdles, leading to a strong desire for enhanced government support and streamlined processes While NGO and government program support has been crucial in overcoming initial barriers, many owners remain unaware of these resources or find them inaccessible Local sourcing of materials and labor fosters a multiplier effect, contributing to community resilience and poverty reduction, despite limited employment generation in some cases Personal success stories illustrate how business achievements have elevated living standards for families, with aspirations for sustainable growth and improved product quality Business owners emphasize resilience, community engagement, and education in management as vital advice for aspiring entrepreneurs The discussions highlight the need for broader societal changes, including better education, infrastructure, and market access, to effectively facilitate poverty reduction.

The interviews reveal a complex relationship between individual agency and structural factors in poverty reduction efforts Home-based businesses play a crucial role in the economy of northern Laos, but their growth is hindered by several challenges Implementing targeted interventions could enhance these enterprises' potential and significantly aid in alleviating poverty within communities.

Achievements and limitations in poverty reduction in Northern Lao provinces

4.5.1 Achievements in poverty reduction in Northern Lao provinces

The northern provinces and the entire country are experiencing a stable and progressive political, social, and security environment, fostering an increasingly equitable and fair society.

We have successfully established legislation to facilitate rural development and cooperative organization, including the Law on Land Allotment and Requisition, directives from the Central Committee aimed at enhancing leadership in rural development and poverty alleviation, as well as decrees outlining poverty escape and development standards, cooperative clusters, and assessment guidelines in accordance with these standards.

We have successfully gathered information on Poverty Escape and Development in relation to the preparation and execution of the Congress at three levels, effectively meeting the objectives set for the 2016-2020 period.

The active development of essential infrastructure is underway, including the construction of profitable projects, bridges, and roads, land clearance for production, road upgrades, primary and secondary school facilities, teacher-student dormitories, health centers, and power grid construction.

The annual budget allocation is structured to facilitate effective management and oversight, clearly delineating responsibilities between central and local levels This approach enhances monitoring, promotes accountability, and ensures regular reporting to superiors.

4.5.2 Limitations in poverty reduction in Northern Lao provinces

The progress in developing laws and regulations remains sluggish, with a lack of cohesive systems for observance, implementation, and enforcement at the local level Additionally, the transition from theoretical frameworks to practical application has not been effectively realized.

(2) The coordination between central and local sectors to collect data and organize the implementation of rural development and cooperatives is still difficult and delayed

(3) The regime, working method plan and leadership method of the organization are not serious and strict, and local reports to the Central Government are not regular

The current coordination and fundraising efforts for rural development and poverty alleviation are misaligned, leading to delays and incomplete implementation of planned projects.

(5) Each locality is clearly defined as a development focus, and no focus has been established as a model for development or construction in the District

The implementation of the State's investment projects faces challenges each year, particularly for new proposals that are delayed and not progressing as planned This includes issues with the preparation of documentation for capital withdrawal, which does not align with the timelines set by the Ministry of Finance.

Insufficient budgeting for inspections and assessments based on poverty escape standards and provincial development criteria hinders effective data collection, resulting in unclear information.

The Provincial Council has yet to approve the allocation of funds for rural development and poverty alleviation in certain provinces, leading to unverified information regarding the Local Management Board's budgets and project counts.

Rural development primarily emphasizes infrastructure improvement as a means to alleviate poverty; however, the involvement of individuals in agricultural progress and poverty reduction remains limited, indicating a need for enhanced community engagement and ownership in these initiatives.

4.5.3 Some lessons and implications for poverty reduction in Northern Lao provinces

In the northern provinces of Laos, establishing a political foundation for rural development and poverty alleviation is a strategic priority, encompassing four key areas and goals that are implemented comprehensively and cohesively This initiative requires the unified awareness and action of all branches and authorities at every level of society, both domestically and internationally.

The management assignment between central and local governments, as outlined in Directive No 65/TTg, aims to concentrate infrastructure development capital at the local level However, some localities are attempting to redirect funds contrary to this directive, indicating a lack of focus in capital allocation To address this issue, enhanced coordination between central and local governments is essential Local governments should take the lead in implementation and monitoring, while the central government should focus on coordination, supervision, and inspection This collaborative approach is crucial for advancing agricultural development and poverty alleviation in line with the Party and Government's policies.

Effective rural development and poverty alleviation hinge on well-prepared work, people, and financial plans A significant challenge lies in the inadequate organization and leadership, as all initiatives must align with strengthening the local political base Building competent cadres with strong political qualities is essential for guiding community efforts, ensuring they serve both as protectors and dedicated servants to the people.

Effective coordination among public departments, the private sector, and the community is crucial for fostering economic growth The State plays a vital role in supporting and addressing issues that households and investors may face independently By creating favorable conditions, the State encourages active participation from the private sector and citizens within a market economy framework Clear policies are essential to enhance the capabilities of State technical staff at the grassroots level, promote private sector investment in remote areas, and boost household production and services.

RECOMMENDATIONS AND SOLUTIONS TO ENHANCING

Objectives and strategic development of Lao for property reduction

5.1.1 Objectives for property reduction at Northern provinces of Lao

The northern provinces of Lao PDR have historically relied on smallholder agriculture and livestock, but market reforms initiated in the late 1980s have spurred significant economic and social transformations In response, the Lao government has implemented policies focused on reducing inequality and poverty, with a primary goal of property redistribution in these regions This article will explore the rationale and objectives of these property reduction policies, while also examining the challenges and opportunities they create for the local communities.

Before the late 1980s economic reforms, Lao agriculture was collectivized and focused on subsistence rather than trade, with communal land ownership intended for equal distribution However, disparities arose, as some households gained more land and assets due to their roles in cooperatives or connections The transition to a market economy introduced private land titling, enhancing the monetization of the rural economy and fostering commercial agriculture This shift, while beneficial, also resulted in land concentration and increased inequality, as wealthier individuals could acquire more land and invest in higher-value crops.

Research indicates that northern provinces, with superior soils and irrigation, experienced pronounced agricultural disparities Wealthier households amassed substantial land and engaged in commercial agriculture, while poorer families relied primarily on wage labor for survival The implementation of contract farming for export crops such as coffee, vegetables, and fruits disproportionately benefited larger landowners capable of fulfilling production quotas Consequently, this has intensified rural inequality, leaving poverty levels in the north alarmingly high, as reported by government statistics.

The overarching goal of recent property reduction policies introduced by the government is to redistribute land and other productive assets more equitably More specifically, the key objectives are:

Poverty alleviation efforts focus on redistributing property, particularly land, to support vulnerable families who have become landless or possess minimal land due to economic reforms By providing these families with productive assets, their capacity to participate in agriculture and enhance their income generation is anticipated to improve significantly.

Highly concentrated land ownership can lead to social tensions, particularly when a significant portion of the population is landless or land-poor Efforts to reduce property inequality aim to provide households with the means for subsistence and to diminish disparities Promoting more equitable land ownership can also reduce the potential for conflicts over land and resources.

Consolidating small land holdings into larger, uniform plots enhances agricultural productivity by making commercial farming more economically viable This consolidation allows for greater mechanization, the use of external inputs, and the achievement of scale economies Additionally, it promotes contract farming arrangements, which significantly improve market access for farmers.

Rural development initiatives aim to empower local communities economically and socially through property ownership By providing land titles and access to credit, households can enhance their investments in agriculture and village infrastructure This increased investment fosters a stronger community engagement in development initiatives, ultimately leading to improved rural welfare.

The property reduction strategy in northern provinces relies on several key components, starting with accurate land surveys to identify land for redistribution In northern Laos, provincial and district-level survey teams, comprising local authorities, land offices, and community representatives, compile existing land ownership records, acknowledging potential gaps in documentation Extensive field verification is conducted, where surveyors map land parcels, noting ownership, boundaries, usage, and soil quality, often relying on manual efforts in remote areas Survey teams engage with locals to validate records and address disputes, marking unused or contested land temporarily After surveying, data is compiled into digital databases and paper maps, followed by quality checks to ensure accuracy before official ratification However, not all identified unused lands qualify for redistribution, as some may be under leases, in conservation zones, or earmarked for commercial use; only verified unutilized public lands can contribute to the "land bank."

Establishing a land bank involves creating an inventory of redistributable land, primarily sourced from unused public lands identified through surveys, including fallow areas and degraded forests Additionally, voluntarily donated land from wealthier landowners, who receive tax benefits or compensation, plays a significant role Abandoned small plots may also be included after verifying the absence of claimants In some cases, provinces may purchase unused private lands at market rates The aggregated land is then subdivided based on logical parameters such as villages, districts, and topography, allowing for effective management and allocation at the provincial level.

Setting a maximum land holding threshold of 10-15 hectares is crucial for determining properties eligible for redistribution, ensuring that only large holdings above basic family needs are targeted while preserving small family farms Formulating land allocation committees at provincial and district levels is essential for overseeing the redistribution process, involving local authorities and community representatives to promote transparency and participation The selection of beneficiary households prioritizes landless families and those with minimal land holdings facing high poverty risks, while also considering vulnerable subgroups like female-headed households, the elderly, and the disabled Evaluations for selection are based on official poverty criteria, family size, and care responsibilities, ensuring that those most in need benefit from grants of land titles for residential use, home gardening, and agriculture according to their family circumstances.

To maximize early outcomes in land allocation, it is essential to provide start-up assistance packages that include quality seeds, seedlings, basic farm tools, and training in improved agricultural techniques This support helps beneficiaries utilize their new land holdings productively and efficiently Additionally, establishing systems for ongoing monitoring and follow-up is crucial, involving regular visits from provincial and district extension agents These visits focus on enhancing productivity, addressing any conflicts that may arise, and ensuring that livelihood benefits are sustained over the long term.

Enhancing productivity is essential for the long-term success of property reduction programs, as it relies on maintaining reasonable productivity levels Infrastructure development plays a crucial role in this process, with targeted rural road upgrades connecting villages and farms to markets, while irrigation projects support agricultural intensification Investments in local crop processing facilities enable farmers to add value to their products, and skills training centers improve human capital through region-specific programming By improving connectivity, remote communities can better engage in the cash economy, ensuring that complementary rural initiatives effectively support redistribution efforts.

Close monitoring and ongoing support are essential for distinguishing impact-driven initiatives from superficial interventions Provincial and district land departments assign dedicated staff to engage regularly with beneficiary communities, ensuring that field agents visit landholdings to address issues, facilitate service access, and verify land use compliance Gathering feedback is crucial for refining programs, while participatory evaluations help maintain relevance and local ownership Recognizing and replicating commendable efforts fosters a positive environment, and prioritizing conflict resolution is vital due to potential resource sensitivities Implementing clear grievance redress and reconciliation protocols promotes harmony, which is crucial for long-term livelihood improvement and equitable access to productive assets Additionally, support from local allies alleviates transition challenges, while independent oversight ensures accountability.

Implementing redistribution programs in large rural populations is administratively complex, requiring effective collaboration among stakeholders such as land, agriculture, and local planning departments Disparate priorities and limited capacities can hinder cooperation, making it essential to socialize the rationale and procedures of redistribution to all involved parties for better understanding and support Regular cross-sectoral platforms can enhance information exchange and synchronized planning, while leveraging established village networks and respected community elders can strengthen grassroots communication and awareness, minimizing disruptions and objections.

Sustainable land management is crucial for achieving long-term agricultural goals, especially in northern regions facing land degradation due to water depletion, erosion, and climate change-related disasters Simply redistributing land will not suffice to combat these environmental challenges Instead, integrated conservation efforts should focus on practices such as timber lot diversification, soil nutrition maintenance, runoff control, and drought-resilient cropping Enhancing outreach on organic farming techniques and ecosystem restoration is essential to ensure equitable access while improving climate resilience for vulnerable rural communities This approach balances social and environmental sustainability, reinforcing the natural resource foundations necessary for sustaining the positive impacts of land redistribution.

Solutions to enhancing poverty reduction in the Northern Lao provinces

In the context that all sectors are focusing on implementing the 8th 5-year national socio-economic development plan near the completion of the 5-year plan 2016-

In 2020, rural development, poverty eradication, and cooperatives emerged as strategic priorities for the Party-State and the region in Laos Recognizing the global significance of these efforts, Laos has encountered both favorable conditions and challenges over the past five years, leading to developmental stagnation at times Moving forward, the Lao PDR must identify new opportunities and challenges to effectively implement the 9th 5-Year National Socio-Economic Development Plan.

(2021 - 2025) as well as the Plan for Agriculture, Forestry and Rural Development can achieve the set goals Therefore, we must pay attention to the following issues

The global community is committed to addressing challenges through the United Nations' Sustainable Development Goals, with the first goal focused on eradicating poverty by 2030 Major nations recognize the significance of poverty alleviation, which is crucial for improving conditions in underdeveloped areas like Northern Laos Between 2021 and 2025, Laos is set to complete several key development projects, including the Laos-China railway and various expressways, which will enhance infrastructure and economic growth These initiatives position Laos as a pivotal connector between major powers and ASEAN Lessons learned from successful countries, particularly China and Vietnam, serve as valuable models for Laos, offering encouragement for its development journey Political stability, social order, and investments in human resources have fostered significant progress in rural development and poverty reduction in Northern Laos, supported by the nation's rich natural resources and strong government initiatives.

The recent period has highlighted significant challenges alongside opportunities, as frequent natural disasters, climate change, epidemics, and economic crises have emerged Tensions between major powers and the developed world have further complicated the execution of the five-year socio-economic development plan The ongoing COVID-19 pandemic continues to have severe and lasting effects on socio-economic recovery, border trade, and cooperation, leading to increased unemployment and poverty Laos' fragile economic foundation, reliant on environmental resources, poses risks for small and household producers, particularly in rural areas Additionally, the slow development of human resources and a lack of initiative among the populace hinder progress, while limited government budget capacity restricts funding for rural development and poverty alleviation projects, especially in remote and border regions.

5.2.1 Solutions from local government in poverty reduction in the northern Lao provinces

The Lao Government is intensifying its efforts in rural development and poverty alleviation by focusing on creating self-reliant production centers in rural and mountainous areas, while also enhancing essential infrastructure To achieve these goals, the government is encouraging private sector participation through attractive policies and mobilizing resources more effectively Continuous evaluation of rural development initiatives is guided by various decrees and resolutions aimed at eradicating poverty at the household and village levels Emphasis is placed on monitoring plans and budgets, ensuring cohesive work across financial and personnel strategies, and promoting the development of public service centers in remote areas Additionally, there is a strong push for utilizing science and technology in production, strengthening local political systems, and enhancing the quality and quantity of poverty alleviation efforts.

The Northern Lao Provincial Development Work Plan is a key component of the Ministry of Agriculture and Forestry's strategy for rural development and poverty alleviation, serving as one of its three pillars and four major plans.

The 5-year plan for rural development, poverty alleviation, and cooperatives from 2021 to 2025 is strategically designed to align with the broader goals of the agriculture, forestry, and rural development sectors This plan contributes to the ninth national socio-economic development framework by outlining seven specific work plans aimed at fostering sustainable growth and improving living standards in rural areas.

Firstly, the Legal and Policy Development Plan:

The goal is to create and implement policies and legislation focused on rural development, poverty alleviation, and cooperative efforts at both central and local levels Key initiatives include the Law on Cooperatives, the Comprehensive Rural Development Scheme, and strategies for population and occupation distribution Additionally, the program outlines national standards and indicators for new rural development, which are incorporated into the Government's Regular Conference and the National Assembly's Annual Session for the 2021-2025 period.

The comprehensive rural development project aims to establish clear goals and direction for the agriculture, forestry, and rural development sectors, with a focus on enhancing the quality of life in border and ethnic areas Strategies for population and occupational distribution will be developed to ensure balanced growth, stable careers, and adequate income for residents The initiative will strengthen poverty and development exit standards, facilitating the creation of uniform national indicators for rural development Additionally, a new Law on Cooperatives will be enacted to ensure centralized management and implementation of cooperative initiatives Special incentive policies will be researched to attract domestic and foreign investment in rural and remote areas Draft guidelines for rural development and poverty alleviation will be established for the 2021-2025 period to ensure effective execution of the projects A budget of 15.4 billion kip is allocated for 18 projects, including key initiatives for rural development, occupational distribution, and cooperative law development, to drive impactful change across the country.

Secondly, the plan to conduct the assessment

The objective is to establish and assess national standards and indicators aimed at eradicating poverty in families, villages, and districts, while fostering development in rural areas and creating comprehensive, resilient communities This initiative aligns with the Party's Congress Resolution and the National Socio-Economic Development Plan, as well as the sixth agricultural, forestry, and rural development plan, ensuring effective poverty reduction strategies are implemented.

The article emphasizes the importance of disseminating national standards and indicators for poverty alleviation and rural development, targeting ministries, agencies, and international organizations It outlines the need for inspections to evaluate poverty escape efforts and development progress at various stages, setting clear objectives for rural development and poverty eradication over five-year plans Additionally, it highlights the assessment of priority development areas between China and localities, as well as the evaluation of public investment and aid projects at the village level A key focus is on building and managing a comprehensive database system for rural development and poverty alleviation information Finally, the estimated budget plan for conducting these assessments includes 13 projects totaling 9.6 billion kip nationwide.

Thirdly, the Plan for rural development and poverty alleviation

The goal of continuing rural development and poverty alleviation focuses on achieving significant milestones, including increasing the number of households emerging from poverty to 204,360, raising the total from 964,149 to 1,168,509 Efforts will also aim to reduce poor households to 71,193, representing 5.74% of the population, while increasing the number of poverty alleviation initiatives from 4,767 to 7,871, with a target of 555 initiatives, or 6.58% The plan includes building 69 districts out of poverty, expanding from 53 to 122 districts, and reducing the number of poor districts to 26, which is 17.56% of the total Additionally, the initiative seeks to create 245,754 developed households nationwide, increasing from 736,996 to 982,750 Development projects will rise to 4,420, from 747 to 5,167, marking a 61.32% increase The strategy also includes establishing 10 large urban villages in rural areas, up from 14 to 24, and developing 20 key new rural areas A development fund of 500 million kip for impoverished and developed districts aims to reach 64 funds, alongside creating 18 model funds nationwide Furthermore, the initiative targets 14,000 recipients of cash transfers, focusing on women and children under two years old in poor households, with 40% of children in target villages benefiting from five nutrition groups, totaling 879 cases across 12 districts in four northern provinces.

To enhance rural development and alleviate poverty, it is essential to establish comprehensive development plans that prioritize the creation of development villages and the transformation of new rural areas, fostering collaboration between central and local governments Additionally, effective dissemination of the comprehensive rural development scheme is crucial to ensure uniform understanding and implementation among all stakeholders involved.

To foster economic growth and improve living conditions in rural areas, it is essential to promote the production of goods, enhance access to capital, and provide training and education for professional development Special attention should be given to mothers and children in rural communities, ensuring they receive basic healthcare and proper nutrition, particularly in the 879 villages across four northern Lao provinces Encouraging private sector investment and collaboration with local production groups will create sustainable markets Additionally, developing rural infrastructure, including roads and transport systems, is crucial for connecting villages and facilitating access to urban areas Strengthening the political system in rural regions will empower communities to address poverty and development disparities Establishing capital funds in poor districts will support local development initiatives, and monitoring the implementation of these funds will ensure effective use and growth Lastly, a focus on village-level development capital funds will provide essential resources for improving the lives of poor households, while regular reporting on rural development efforts will help track progress and inform future strategies.

The rural development and poverty reduction initiative encompasses 245 projects with a total estimated budget of VND 892.01 billion nationwide This includes 239 projects specifically aimed at rural development and poverty eradication, amounting to VND 885.71 billion Notably, the State's investment under Annex 67 includes 214 projects valued at VND 875.51 billion, while Annex 63 allocates funds for 25 projects focused on professional encouragement and retraining, totaling VND 10.2 billion Additionally, the budget plan for the development capital fund comprises 6 projects worth VND 6.3 billion.

Fourthly, the Plan for the distribution of population and occupations to the people:

The goal is to effectively distribute population and occupations to individuals lacking stable residences and jobs, targeting 25 key areas This initiative focuses on those impacted by development projects, particularly popular and specialized projects governed by the Law on Population and Occupational Distribution It aligns with the Population and Occupation Distribution Strategy for 2021-2030, aiming to address the challenges of indiscriminate migration and ensure compliance with established regulations, which have seen a decrease in previous years.

Recommendations to Lao governement in poverty reduction in the northern Lao

In order to enhance poverty reduction in the northern Lao provinces, the Government should organize the implementation and inspection, supervision and promotion

To ensure the successful implementation of the 5-year plan in alignment with relevant laws, the Planning Department should collaborate with the Rural Development Sector and cooperatives to disseminate the implementation strategy This collaboration will create consensus and guide the methods and processes necessary for effective execution The Department of Rural Development and Cooperatives is tasked with organizing the implementation of this plan, focusing on policies, legal frameworks, and budget requirements, including detailed project plans Additionally, the Rural Development Sector and Cooperatives, along with the HCMC Department of Agriculture and Forestry, are responsible for developing localized plans that emphasize accountability and effectiveness Furthermore, departments under the Rural Development and Cooperatives must mobilize resources, including grants and loans from private and international entities, to support these initiatives.

To enhance the effectiveness of rural development and cooperative initiatives, it is crucial to implement regular monitoring, inspection, and evaluation processes guided by party committees and administrative agencies at all levels The Department of Rural Development and Cooperatives will serve as the central authority for overseeing the execution of strategic plans, including 5-year and annual plans, while compiling comprehensive reports for the Ministry of Agriculture and Forestry Relevant ministries and organizations will actively assess their local branches' performance, ensuring that regular reports are submitted to the Government Additionally, provincial and district-level Departments of Agriculture and Forestry will monitor and evaluate project implementations, providing periodic updates to the Party Committee and other stakeholders The Rural Development Sector, along with Ho Chi Minh City Cooperatives, will conduct thorough inspections and compile progress reports on rural development, poverty reduction, and cooperative initiatives at monthly, quarterly, and annual intervals, ensuring accountability and transparency throughout the process.

To enhance rural development in China, it is essential to improve coordination between the rural development sector, cooperatives, and related sectors This involves regulating policies, strategies, and legal documents to create a unified approach for transforming rural development and poverty alleviation into a continuous system The government will focus on macro management while the Department of Rural Development and Cooperatives will lead coordination efforts among various ministries, organizations, and localities Over the next 2.5 years, a thorough review and conversion of plans into detailed projects will be conducted, ensuring effective monitoring and encouragement from grassroots levels Additionally, the active participation of state and private organizations, ethnic minorities, and both domestic and foreign economic sectors is crucial for realizing the objectives of the 5-year plan.

To enhance the organizational structure of rural development and cooperatives, it is essential to establish a cohesive system from national to local levels, aligning roles and tasks with political and professional objectives This involves increasing the number of district-level civil servants and strategically rotating staff to critical positions Additionally, improving management mechanisms and developing a comprehensive training program for staff is crucial Training should focus on professional skills, political reasoning, foreign languages, and information technology, fostering continuous growth and ensuring that personnel are well-equipped to meet their responsibilities effectively.

The Department of Rural Development and Cooperatives is tasked with researching and implementing the Party and Government's guidelines, policies, and resolutions into strategic plans and projects for rural development and cooperatives It coordinates with relevant ministries to regulate and adjust policies and legal documents in alignment with these directives The department also mobilizes aid, investment, and cooperation from various sectors, both domestically and internationally, to harness resources for rural development initiatives Additionally, it is accountable to the Party Ministries and the Ministry of Agriculture and Forestry for the outcomes, challenges, and limitations encountered in the implementation of rural development and cooperative programs.

Local authorities are tasked with researching and implementing the Party and Government's guidelines, policies, and resolutions into actionable work plans tailored to their unique rural development contexts They must actively attract domestic and international aid and investment to support local rural development projects and cooperatives Proper staffing in the rural development sector is essential, ensuring personnel are appropriately assigned to meet the evolving needs of each period Local leaders are responsible for directing relevant departments to educate the community on Party and State policies, encouraging active participation in local development and assisting disadvantaged households Ultimately, local authorities must account for their achievements and challenges in poverty reduction and rural development to the Party, the Ministry, and the Department of Agriculture and Forestry.

04 goals; the construction of new urban areas in rural areas in accordance with the Government's Decree on poverty reduction and development measures

To enhance rural development and cooperative initiatives, it is essential to systematically organize and disseminate legal documents to localities and ministries for effective monitoring and implementation Establishing specialized committees with clearly defined tasks and responsibilities will facilitate regular reporting and guidance from party ministries at all levels Prior to execution, developing detailed plans, programs, and projects is crucial, along with allocating adequate budgets to support practical activities each year Continuous monitoring, evaluation, and reporting will ensure that lessons learned inform the creation of more targeted plans for subsequent years.

Recommendation for home-based businesses in the Northern provinces in Laos

For home-based businesses in the northern provinces of Laos to actively engage in poverty reduction and contribute to sustainable economic growth, the following actionable recommendations can be considered

Diversification and value addition are essential strategies for home-based businesses in northern Laos to alleviate poverty and promote sustainable economic growth By expanding their product offerings, entrepreneurs can protect against market fluctuations, reach a broader customer base, and generate multiple revenue streams This requires in-depth market research to understand trends and preferences, allowing businesses to introduce complementary products or capitalize on seasonal demands Collaborating with local businesses can create innovative product bundles that meet diverse consumer needs Enhancing product value through superior craftsmanship, improved materials, and attractive packaging can justify higher prices and boost profit margins Establishing a strong brand identity and obtaining quality certifications can further elevate a product's appeal in global markets Additionally, innovating with unique items and offering convenient services like delivery can enhance customer experiences When executed effectively, these strategies not only foster business growth but also strengthen community economic resilience, positioning home-based enterprises as key players in poverty reduction and sustainable development efforts in their regions.

A successful home-based business in economically vulnerable regions like northern Laos relies on effective financial management and a strong culture of savings This includes meticulous record-keeping, disciplined budgeting, and strategic planning, which together provide business owners with a clear understanding of their financial health for informed decision-making Budgeting ensures efficient resource allocation, covering essential costs while reserving funds for growth Additionally, establishing a savings routine is vital for financial sustainability, offering a buffer against economic downturns and reducing reliance on high-interest loans Savings also facilitate capital accumulation for future expansion and investment in productivity-enhancing tools In areas with limited financing options, cultivating a savings habit becomes essential for self-financing business growth By fostering financial discipline and a savings mindset, home-based businesses in Laos can achieve long-term stability and growth, empowering individual entrepreneurs and their communities, while contributing to the broader fight against poverty by enabling resilient businesses to withstand market fluctuations, sustain employment, and invest in community development.

Networking and collaboration are essential for home-based businesses in northern Laos, as they enhance individual success and drive regional economic development By forming strong local networks, entrepreneurs can share resources, exchange knowledge, and support one another, fostering a collaborative environment that boosts collective sales and marketing efforts Strategic partnerships with suppliers and distributors can lead to cost savings, improved market access, and shared distribution channels Collaboration also encourages innovation by introducing diverse perspectives that can inspire product development and new business opportunities In areas with limited infrastructure, collective action empowers businesses to advocate for better local conditions, access to financing, and fair regulations that benefit small enterprises Ultimately, through networking and collaboration, home-based businesses can create a supportive ecosystem that accelerates their growth and contributes to sustainable development, overcoming challenges like isolation and resource scarcity while strengthening their communities.

Community involvement is essential for home-based businesses in northern Laos aiming to combat poverty effectively By actively engaging with their communities, these businesses cultivate trust and mutual support, resulting in benefits for both the business and local residents Initiatives such as sponsoring education programs, contributing to healthcare, and improving access to clean water showcase a commitment to community well-being, enhancing the quality of life and fostering customer loyalty Additionally, by hiring locally, home-based businesses create employment opportunities that boost the economy and develop a skilled workforce This local employment fosters a cycle of advocacy, improving the business's reputation and customer satisfaction Ultimately, a community-centric approach not only strengthens economic stability and growth but also aligns with cultural values, supporting long-term development and poverty reduction in the region.

Advocacy and policy engagement are vital for home-based businesses in northern Laos, where regulations often fail to meet the needs of small-scale entrepreneurs By participating in advocacy, these businesses can foster a more supportive environment for growth and sustainability Forming collectives enables entrepreneurs to amplify their voices and ensure their concerns are addressed by policymakers Such groups can advocate for reduced bureaucratic barriers, tax incentives, access to credit, and protection against unfair practices A unified approach increases their chances of influencing legislation and government initiatives Additionally, engaging in public forums, contributing to policy discussions, and providing feedback on regulations are crucial for staying informed and active in the legislative process Building relationships with government officials can offer insights into future policies and access to resources like grants and training programs Although advocacy requires persistence and collaboration, the benefits include improved conditions for businesses and broader economic gains, such as job creation and increased investment Through dedicated advocacy, home-based businesses in Laos can help shape a favorable business ecosystem, contributing to regional economic development and poverty alleviation.

Conclusion

Poverty alleviation efforts in Laos, particularly in the northern provinces, have seen gradual success through public investment and foreign assistance, leading to a decrease in the number of impoverished individuals However, a significant disparity between the wealthy and the poor persists, with this gap widening over time Despite a relatively high GDP growth rate driven by a shift towards a market-oriented economy, the pace of poverty reduction lags behind economic growth Consequently, poverty continues to pose a substantial challenge for both the northern provinces and the broader Lao PDR during this era of globalization.

The Lao government's poverty reduction policy presents significant challenges, including the need for administrative reforms, substantial budget allocations, and effective management of human capital for successful program implementation To enhance clarity and realism in achieving goals, it is essential to develop specific action plans and execute projects aligned with medium- and short-term objectives Furthermore, a nationwide campaign to disseminate government development visions and strategies is crucial for fostering a deeper understanding of policy issues at all levels.

To effectively reduce poverty in Lao PDR, it is essential to implement policies that align with the socio-economic development of ethnic minorities, who represent a significant portion of the impoverished population Many of these groups reside in remote mountainous regions of northern Laos, characterized by diverse cultures, traditions, and languages Addressing their unique needs requires the establishment of tailored policies and strategies throughout all phases of the policy cycle, ensuring that the challenges faced by these communities are adequately met.

Between 2011 and 2022, Laos experienced significant socio-economic growth, achieving many millennium goals, but the Covid-19 pandemic has posed substantial challenges The economy is projected to grow by 3.4% in 2022 and 3.7% in 2023, provided successful debt negotiations and pandemic control measures are implemented Despite being a surplus country that continues to attract foreign investment, Laos faces a 9.9% inflation rate as of April 2022, up from less than 2% in 2021, leading to prolonged job losses and economic strain on households, particularly among low-income families in Northern Laos Ethnic minorities have been disproportionately affected, necessitating extended efforts to combat poverty To transition from being one of the world's least developed countries, Laos must enhance infrastructure, improve border efficiency, and foster a better business environment to attract investment and create jobs Additionally, promoting industries like agricultural production and nature-based tourism in Northern Laos is essential for sustainable development.

Science and technology are vital for the socio-cultural development of Lao PDR, playing a crucial role in the implementation and effectiveness of related activities They contribute at every stage, from problem identification to planning, execution, and evaluation To enhance these efforts, it is essential to conduct thorough studies on cultural, educational, and health issues across regions and localities, ensuring solutions are tailored to local customs and the community's scientific understanding While external support can temporarily boost community development in areas like culture, poverty alleviation, health, and education, fostering internal capacities is crucial for sustainable progress Ultimately, it is the impoverished communities themselves that must identify the cultural elements they wish to preserve and actively strive to overcome their challenges.

Lao PDR faces integration challenges within regional and global economies, including ASEAN, AFTA, and the WTO, which present significant opportunities for socio-economic development However, this integration also poses risks that may exert pressure on the Lao economy, particularly impacting the vulnerable populations.

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1 Can you tell me about yourself and your background?

2 How did you come to start your home-based business?

3 What products or services does your business provide?

4 How many years have you been operating your business?

5 Can you walk me through a typical day in your business?

6 How has your business changed or evolved since you started?

7 What was your initial investment in starting your business, and how did you finance it?

8 Can you provide an estimate of your monthly or annual revenue?

9 What percentage of your household income comes from your business?

10.Who are your main customers, and where are they located?

11.How do you market or advertise your products or services?

12.Have you faced any significant challenges in reaching your customers or expanding your market?

13.What are the most significant challenges you face in operating your business?

14.Have you received any support from the government or non-governmental organizations (NGOs)? If so, what kind of support?

15.Are there any policies or programs you wish were in place to help your business?

16.In what ways does your business contribute to your community?

17.Do you source materials or hire services from within your community?

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