AsiaI. Outline of the ProjectCountry: Lao People’s Democratic Republic
Project title: The Project for the Development of the Faculty of Economics and Management of the National University ofLaosIssue/Sector: Higher Education
Cooperation scheme: Technical Cooperation Project
Division in charge: Technical and Higher Education Team I, Group II, Human Development Dept.
Total cost (at the time of evaluation): 840 million yen (This project had been operated as one combined project with theproject for Lao-Japan Human Resource Cooperation Center, till end of march 2004.)
Period of Cooperation(R/D):
1 Sep 2000 - 31 Aug 2005
(F/U):(E/N)(Grant) 12 Jan 2000
Partner Country's Implementing Organization: Ministy of Education, National University of Laos
Supporting Organization in Japan: Ministry of Education, Culture, Sports, Science and Technology, Kobe university, etc.
Other Related Cooperation: The Project for Construction of Facilities and the Lao-Japan Human Resource Cooperation
Center in the National University of Laos

1. Background of the Project
Lao P.D.R. undergoes a transition to the market economy since 1986. The human recourse development is one of the mostimportant assignments in the Socio-Economic Development Plan of Lao P.D.R. In order to promote the human resource
development, the Lao government established the National University of Laos, including the Faculty of Economics andManagement (FEM), in 1995 with the support of Asian Development Bank (ADB). The Lao government also requested thetechnical cooperation to Japan after the end of aid from ADB in September 2001.
In response to the above request, JICA dispatched long-term expert for providing the advice on the establishment of FEM anddevelopment of lecturers and curriculum since 1997. Also several survey teams were sent to examine the technical issues andthe purpose, outputs, activities of the program.
Then the Record of Discussions (R/D) was signed on July 6, 2000 and the project was started from September 1, 2000 as
5-year technical cooperation project. For the first 4 years of the Project, it had been operated as one combined project with theProject for the Lao Japan Human Resource Cooperation Center. In April 2004, JICA headquarters was restructured. Along withthe reform, the combined project was completely divided into two different projects.

2. Project Overview(1) Overall Goal
FEM graduates contribute to development of a market economy of Lao P.D.R.

(2) Project Purpose
Students graduate from FEM with essential academic and professional knowledge and skills.

(3) Outputs
1) Quality of teaching staff is enhanced.
2) Curricula and teaching materials are developed and improved.

3) Necessary equipment and facilities are available.
4) Management system of FEM is improved.

(4) Inputs
Japanese side :Long-term Expert:

10 persons

Short-term Expert:

47 persons

Long-term training in Japan:

15 persons

Short-term training in Japan:

15 persons

Long-term training in third countries:

8 personsShort-term training in third countries:

14 persons

Equipment (including local cost):

52 million Yen

Lao Side:Counterpart:68 persons (at the time of evaluation),Local Cost:

charges for electricity, water, domestic communication and cleaning etc.

Land and Facilities:

land for the FEM building and furniture for administrative staffs etc.

II. Evaluation Team

Members of Evaluation Team:
1) Leader: Mr. Senya Mori, Resident Representative, JICA Laos Office2) Economics and Management: Mr. Toshihisa Toyoda, Professor, Faculty of Economics Sciences, Hiroshima Shudo University3) Evaluation Analysis: Mr. Isao DOJUN, Chuo Kaihatsu Corporation
4) Cooperation Planning: Ms. Sachiyo Ito, Technical and Higher Education Team I, Group II (Technical and Higher Education),
Human Development Dept., JICA

Period of Evaluation:
31 Jan 2005 - 24 Feb 2005

Type of Evaluation:
Terminal

III. Results of Evaluation
1. Achievement
It is expected that most of Outputs, such as 1) enhancement of quality of teaching staff, 2) development and improvement ofcurricula and teaching materials, 3) improvement of equipment and facilities, and 4) improvement of management system ofFEM, will be achieved. However, some part of them would not be fully achieved within the cooperation period (by the end ofAugust 2005), such as research capability of teaching staffs, development and improvement of textbooks, and improvement ofmanagement system of FEM.

2. Summary of Evaluation Results(1) Relevance
The Project Purposes and the Overall Goal are well relevant with main objectives of the Five-years Scio-Economic Development
Plan (2001-2005), especially such as “to create continued economic growth” and “to develop human resource in various areas”.
Moreover, there are needs for human resources who contribute to development of market economy of Laos and employment
needs for graduates of FEM, and also the Project is conformity with Japan's Official Development Assistance policy to Laos.
Therefore, relevance of the Project is high.

(2) Effectiveness
Most of Outputs have been achieved as scheduled, which are the students' understanding of lectures, the number of research
activities, the percentage of lecturers who hold master or higher degree, preparation of regulation for faculty management andso forth. In general, the Outputs of Project have well contributed to the achievement of the Project Purpose, which means thatthe effectiveness of the Project is high enough. While, due to introduction of new concentrations, there remains many textbooks
to be improved or newly prepared, and also there is room to improve quality of research capacity of lecturers.

(3) Efficiency
Because of effective utilization of training in third countries, dispatch of experts from third countries and distance education
using JICA-Net etc., certain good efficiency had assured in general. On the other hand, there were weakness on assignment ofJapanese experts for project management and input for assistance on improvement of management system of FEM. And
although several training on management and administrative matters were provided for core members of the faculty, knowledge
and skill they learned have not been utilized enough for the application in their work. Also it took time to employ necessary
number of administrative staff. Insufficient frequency of Joint coordinating committee meeting and time consuming decision
making were pointed out as weakness of the Project also.

(4) Impact(1) Possibility of achieving the Overall Goal
It is too early to evaluate the full contribution to development of a market economy by FEM graduates, because only 4 yearshave passed since the first graduate students of FEM entered in a society. However, it should be pointed out that somegraduates entered the core governmental organizations related to economic policy of the country, and also the fact that 80% oforganizations, which employed graduates of FEM, are satisfied with their performance and with their academic and professional
knowledge and skills. The future impact on the progress of a market economy is highly expected.
(2) Impact to on and by the special course (night course) of FEM
Target of the Project is the regular course (day time course) of FEM, while the Special course (night course) of FEM isconducting by FEM (not a target of the Project). However, as teaching staff, textbooks and facilities are also used for regularcourse and the special course. As for the impact on the special course, capacity building of teaching staff, improvement oftextbooks by the Project and availability of good facilities have made good impact on the quality of education in the specialcourse.
In turn, there is also the impact by the special course on the teaching ability of FEM lecturers. By teaching at the special course,
they are developing their teaching capacities through the experience and can earn an additional income. An important positive
impact of the night course has been to help the financial sustainability of FEM. The revenue of tuition fee from the night course
is utilized for entire operation of FEM. Considering current limited budget from the government, this revenue is an importantfinancial source that can be utilized for operation of FEM(3) Impact on the other universities in Laos
Textbooks revised and newly created by the Project were donated to the universities in Luang Phrabang and in Champasak,
which have faculties of Economics and Management, and also the central library of the National University of Laos. There is aplan to sell textbooks in public. It is expected that textbooks will be utilized more widely by students of other universities andbusiness colleges. FEM lectures started to train the teachers regularly at the said two universities. In addition, some of FEM
graduates teach in other universities than the National University of Laos, including public and private institutions.

(5) Sustainability(1) Organizational sustainability
To assure organizational sustainability of FEM, it is necessary to strengthen the operational and management capacity of thefaculty more systematic way of work and by making decision making process quicker and clearer, sharing information among
Lao staff.
Regarding teaching staffs, partially because many teaching staffs are studying abroad at the moment, the teaching load oflecturers is extremely heavy to make up for such absence teachers. Even under such severe situation of the lecturers' side, thestudents enrolled in FEM have increased, which cannot be controlled by the faculty. This may endanger the FEM'sorganizational sustainability. It is necessary that more feasible plan for human resource management of lecturers is developed.

(2) Financial sustainability
TFEM budget provided by the government is limited for covering salary for public employees and cost for utilities etc. While,
FEM has income from students of special course (night course) as tuition fee. There are some other incomes from sales oftextbooks and survey data. (Textbooks are printed using budget of Japanese side and donated to FEM.) A fund has been
established, which will be mainly used for research promotion in FEM, as accumulating the various income mentioned above.
We can expect the higher financial sustainability, if the funds are well maintained by earning enough income. In spite of suchprogress in financial sustainability a feasible plan for assuring financial sustainability should be made up to bear the cost for
procuring books for the library after the completion of the Project.
(3) Technical sustainability
Many lecturers of FEM have acquired necessary knowledge and skills through technical transfer and long or short-term training.
The number of teaching staffs, who have master or doctorate degrees, is increasing steadily, which is an important achievement
to assure the technical sustainability. Some of teaching staffs have improved research capability through the experiences ofconsultancy works and research activities. In this way, through the implementation of the Project, knowledge and skills ofteaching staffs have been strengthened steadily.
A teaching staff is public employee and has high status in Laos. Therefore, most teaching staffs are expected to remain aslecturers at FEM. There are many features to assure technical sustainability in future, although capacity development oflecturers is necessary continuously.

3. Factors that promoted realization of effects
Main positive factors are as follows.
(1) Japan side had done cooperation such as exchange of opinions with FEM and provision of advice before starting the Project.
(2) Smooth and effective human network and cooperative relations among some core universities in Japan, Thailand and thePhilippines.
(3) Utilization of various kinds of scholarships.

4. Factors that impeded realization of effects
Negative factors against smooth implementation of the Project and organizational sustainability of FEM are as follows.
(1) Chief Advisor, who is well familiar with and has experiences of the university's education, had not been assigned.
(2) Due to assignment of the chief advisor and the coordinator for both projects (FEM and Lao-Japan Center), their involvement
to the Project was not sufficient.
(3) Full-scale support for strengthening management system of FEM had started in the latter half of the project period.

5. Conclusion
Most of Outputs will be achieved within the project period. However, achievement of development and revision of textbooks,
research capability development of FEM lecturers, and improvement of the faculty management will not be achieved fully.
Therefore, the Evaluation Team concludes that the follow-up activities are necessary for above-mentioned aspects.

6. Recommendations
3-6-1 Recommendation to the activities in the remaining period of the Project (by the end of August 2005).
(1) Continued support for revision and new creation of textbooks and its publishing.
(2) Technical transfer on field work survey and research activities(3) Strengthening of management capacity
3-6-2 Recommendation for activities after the completion of the Project(1) Practical knowledge and skills of lecturers and students(2) Improvement of the management of FEM

7. Lessons Learned(1) Technical cooperation in the field of social science in higher education
FEM was newly created as an institution for higher education. For Japan side, this is the first experience of technicalcooperation project for the support of establishment of a university faculty in social science. Even under such challenging
conditions, the overall achievement of the Project has been quite well so far.
We recognize that this outcome was made possible partially through the thoughtful formulation and preparation of the Project.
Japanese experts had been dispatched and worked with the Lao side and the ADB advisors. And Japan received some trainees
from FEM. During the Project formulation period, the mutual understanding between Lao and Japanese was promoted on thepolicy of faculty development and the contents of the Project activities, which contributed to the smooth implementation andhigher achievement of the cooperation.
(2) Cooperation between core universities
Some core universities in Japan, Thailand and the Philippines have developed the human network and cooperative relations
among their faculties, which have clearly contributed to the smooth and effective activities of the Project, including dispatch ofexperts and training lecturers. implementation and higher achievement of the cooperation.
(3) Necessity of technical cooperation for a management
The capacity development of the management in the university and the faculty is crucial for their sustainable development,
especially when they are newly established. The necessity of technical cooperation in this field should been examined in an
early stage of the cooperation.
(4) Evaluation of overall goal in a long period of view
For the human resource development in the field of higher education, it takes longer time to realize a certain impact in thesociety. In the FEM Project, for instance, the impact on the Overall Goal, "FEM graduates contribute to development of amarket economy of Lao P.D.R.", may be reassessed after a certain period later. Therefore, it is necessary to conduct evaluation
during project implementation also in the viewpoint of long-term for this kind of project.
(5) Project's chief advisor in the field of higher education
In case of the cooperation for capacity development in the field of higher education, especially when its counterpart is university,
the Project team (Japanese side) should be headed by Chief Advisor who is well familiar with and has experiences of theuniversity's activities in areas of education, research and faculty management.

IV. OTHER ISSUES DISCUSSED
Lao government and the National University of Laos have a plan to establish a master course at FEM in October 2007 and therequest of assistance was made to Japanese government. The Evaluation Team evaluates that the cooperation for the capacity
development of faculty level has not yet accomplished and the follow-up activities after the completion of the project arenecessary. Considering such current situation, the Evaluation Team recommended that the feasibility of establishing the mastercourse should be examined throughout the Project and follow-up period. The Lao side agreed to keep in exchanging opinions
and sharing information with Japanese side for further consideration.