Lao People’s Democratic RepublicCountry Report
1999

Contents
Ⅰ．The Lao context
Ⅱ．Overview of Environment Issues
Ⅲ．Disaster Countermeasures
1. Efficient use of the Natural Resources
1) Land resource management:
2) Water resource management:
3) Forest resource management：
2. The quality of life
Ⅳ．Current Government and sectoral policy
1. General Development Policies and Soclo -Economic Performance
2. Environmental Policy
3. Disaster Management Policy
Ⅴ．Legislation and International Cooperation
1. International environmental convention which Lao PDR has joined
2. Conclusion Issues and failure trend associated with the process of decentralisation in disaster management:

Ⅰ．The Lao context
Laos used to be a very lush country, with abundant forests, mountains and many species of wildlife, for this reason
it was called “Land of million elephant” in the 14th century. The Lao People’s Democratic Republic is established on
2nd December 1975. Lao PDR is a multiethnic country in the heart of South East Asia with a total land area of
about 236.800 km2 and a population of about 4,8 million people (SPC-1997) giving an overall population densityof 20 per km2. The population share a rich ethnic diversity, classifying into three broad groups Lao Loum
(lowlanders) 70% livc along the Mekong river and its tributaries. Lao theung (highlanders) 20% live on the slopes
and hills with an elevation of less than 1,000 metres and Lao Soung (uplanders) 10% live in the high mountainous
areas. Approximately 85% of the country is mountainous, which is a barrier to development of economic
infrastructure, transportation, communication and production and sustainable use for the development of modern
irrigation system.
The country is divided administratively into 17 provinces and I special zone. These are in turn divided into 142
districts, 11.390 villages and 792.287 households (SPC-1997). The country remains a predominantly rural
economy, with about 80% of the population living in the rural areas and some 66% relying on subsistence
agriculture. Poverty is greatest in the upland rural areas and varies between regions as follows: central region
33,6%, northern region 26.5%, southern region 16,2% . In absolute terms, about 2,05 million of the Lao people arepoor based on the poverty incidence measure (in northern region- 46%, central region- 40% and southern region60%). The Lao PDR or Laos is among the least developed countries In the world with its GDP of 382 US $ per
capita in 1997. Its economy is virtually undiversified and depends largely on the country’s natural resource base.
Lao PDR is considered, also by international standards, to be still relatively rich in forest, water, biodiversity,
mineral and land resources. However, although the country has significant unused land resources, unexploited
most of the forest resources are found and where the overall resource base in fragile, with the majority of landsusceptible to degradation and generally poor soils.
In 1950, closed tropical forests covered approximately 70% of the Laos. That figure has declined to about 47% in
the last 30 to 40 years. Despite significant degradation over the past three to four decades, Lao PDR still has
extensive natural forests cover and retains one of the highest portions of relatively intact forests in Asia.
Availability of agricultural land similarly varies widely by region. The centre and particularly the southern
provinces retain significant arable land resources, of which a marked part remains underdeveloped. The more
mountainous north, where demand is highest, has significantly less potential agricultural land. Although Lao
PDR’s population is small, it is growing rapidly (growth rate 2,5%) and heavily concentrated in the provinces
which borders the Mekong River and it tributaries, putting increasing demands on the natural resources in the
upland areas.
Agricultural production in upland areas is still dominated by subsistence crop cultivation under a shifting
cultivation or swidden (slash-and-burn) farming system. Most sustained severe deforestation and landdegradation in Lao PDR is associated with shifting cultivation. This is particularly two in areas where populationpressure has led to a significant decrease in the rotation period or where traditional lowland farmers encroach onneighbouring uplands to make up for low and often declining yields on their lowlands paddy fields,
Rural poverty In the uplands is directly linked to land degradation resulting from the management of the
agricultural systems practiced. The challenge of stabilising shifting cultivation in upland areas cannot be met
unless the issues of poverty reduction, provision of alternative source of livelihood, food security, and security ofland tenure are addressed simultaneously. This need to be accompanied by assistance in community-based natural
resource management planning so that upland communities have a mix land uses, including conservation forests
to protect soils, water resources, wildlife, and other biological resources of value to the community and the region.
To address the great complexities of upland livelihood and socio-cultural systems, ‘the Lao Government has
devised a “Focal Site” approach to support sustainable decentralised forest land management in the uplands.

Ⅱ．Overview of Environment Issues
Some environmental characteristics of the Lao People’s Democratic Republic distinguish the country from othercountries in the region. The most prominent among them are:●-Although with less than 20 people per km2 Lao P D R is the most thinly populated country in south-east Asia,
agricultural land is scarce. The ratio of population to cultivated cropland is about 5 persons per heetare1.
● -Geographic conditions are difficult with the main portion or the country’s surface mountainous and prone toerosion. Road infrastructure is far from sufficient.
The ecological quality of remaining upland forests and unmodified waterways is partly unique in theregion. The natural conditions of most of the territory (climate, soil, topography) are inore favourable forsilviculture and agroforestry than for sedentary agriculture.

●

About half of the country’s districts still have to cope with unexploded ordnance. Someare contaminated by wartime defoliants.

●

Traditionally regarded as isolated and remote; and began the transformation of its economy from acentrally planned to an open market-based system, the country is now becoming located more in the centre of
new trade routes that join booming regional economies.

●

The export oriented development of the country’s natural resource base is accelerating sharply, in
response to internal and external pressure.

●

The natural resource base of Lao P D R consists of forests, which still cover more titan a third of the country, ofwater, in terms of hydropower potential, and of mineral deposits. These include limestone, anthracite, lignite,
gypsum, sand, non-ferrous metals, precious stones, ores and possibly oil, many of those still being untapped. Thebulk of proposals for investment aims at exploring and/or extracting natural resources. Hydropower, forestry andmining are among the principal foreign exchange earners. The Government is well aware that there is acompelling need to ensure that sufficient attention is paid to the sustainability of the continued economic
development in Lao PDR.

1souroc: Slate of Environment in Asia and Pacific l996
The main environmental problem in Lao PDR is deforestation, mainly due to the intensive slash and bum shifting
cultivation of the upland and highland ethnic group people’s farmers. It is also due to mismanaged logging andconversion of forest land to other uses under rapid population growth. In addition, urban environment problems
should be taken into consideration at the outset. The national rich biodiversity resources are under increasing
danger due to the rapid disappearance of forests and the weak conservation system. The environment issues in thearea of water resource management are the threat of watershed degradation in key watersheds and the potential
loss of hydropower and irrigation capacity, the absence of an adequate system to assess environment costs ofhydropower development and the population’s limited access to clean water and sanitation. Mining could lead tosevere environmental damage if the necessary environment safeguards are not applied. Degradation of uplandareas due to intensive slash and burn shifting cultivation, farming with shortening fallow periods andencroachment by lowland farmers on neighbouring uplands are increasingly becoming a concern. Due to theextent of development in the area of industries and transport, the Lao PDR would also be exposed to related
environment problems if they are not accurately addressed at the beginning.
On 3rd April 1999, National Assembly of Lao PDR enacted the environmental protection law. The Government has
started numbers of efforts, which clearly requested Science Technology and Environment Agency, line Ministries
and Provinces at all level to take actions necessary for effecting environmental management and sustainable useof natural resources in the country. ‘The basic principles of environmental and natural resource use in Lao PDR
are as following:●
environmental conservation is the main task and comes before mitigation and restoration●
planning for environmental conservation should be done together and included into socioeconomic
development plans●
all persons and organizations residing in the Lao PDR have to actively contribute to environmental
conservation●
whoever has caused damage to the environment is responsible for thc impact●
all use of natural resources, raw materials and energy has to be careful, avoiding pollution and waste forsustainable development

Ⅲ．Disaster Countermeasures
1. Efficient use of the Natural Resources
1) Land resource management:
The effects of the expansion of permanent agricultural land and shifting cultivation areas on forest resource
degradation show clearly that land and forest resource management are closely related in the Lao PDR.
Expansion of agricultural land into forest lands not only contributes to the deforestation, but also, unless
agricultural production systems are well adapted to the soil conditions of former forest lands, cultivation can
result in serious land resources degradation and further downstream effects such as siltation and decreased
stream flow.
Although population density in the Lao PDK is comparatively low, arable land is not only scarce but the potential
for further expansion is limited because of the geographic conditions. Much of the unused land in the country is ofinferior quality or inaccessible. The Government has the task to intensify its agriculture, in order to maintain its
growing population. This task, however, is further hampered by the country’s topography, which limits thepotential for irrigation. It is estimated that less than 260,000 ha (15% of arable land with slope below 5%) could be
irrigated during the wet season and only 116,600 ha are suitable for dry season irrigation. Less than half of thewet season and less than a third of the dry season potential have so far been developed.
Another factor impeding both the expansion of arable and the proper cultivation of crop-land is the wide-spreadcontamination with unexploded ordnance of our country-side. Every year many people, mainly farmers or theirchildren are killed and maimed by these remnants of the “secret war”. Lao PDR belongs, with a share of 1 tonne
bombs per head of population, to the heaviest bombed nations of the world ever. First efforts are undertaken toclear rural areas from bombs and grenades. The National Unexploded Ordnance Awareness and Clearance
Programme is a major priority for socio-economic development.
With the Land Law in place, the Government now is concentrating on the following issues:●
Land data survey and allocation

●
●
●
●

Land measurement and quality evaluation
improved upland farming systems
improved lowland production
facilitate agricultural research and extension2) Water resource management:
Lao PDR possesses both abundant surface and ground water resources. With approximately 60,000 m3 per capita,
the country has the highest availability of renewable freshwater resources per capita in Asia (and 20 times morethan the Asian average). Although the hydrological figure is strongly influenced by the marked dry and wet
seasons, acute water shortages and competition for water resources are not a major issue.
Issues ad hereunder refer to inland waters only, because the Lao PDR is a landlocked country.

a) Rivers and Lakes
The main water artery of the country is the Mekong, which forms the main borderline with Thailand. According to
the Mekong River Commission, approx. 35% of the Mekong river basin are situated in the Lao PDR. However, 90%
out of the total surface of the country belong to the basin. Therefore it can be said that all actions affecting the Laorivers also affect the Mekong.
The Mekong and its tributaries are of tremendous importance to the country - they provide water for usage andirrigation, they provide food (fish, water animals and plants) and feed (water spinach, water hyacinth) for the farmanimals. In many remote parts of the country travel is only possible by boat. Through the Mekong River
Commission the Lao PDR coordinates and manages the use of this important resource.
Catastrophic drought in 1991 and flooding was the main cause of the fall in the agricultural growth rates from
8.3% in 1993 to 4.9% in 1995, and again in 1996, when severe and widespread flooding seriously compromised
output growth and food security for 1997.

b)

Ground Water

The Lao PDR has extensive groundwater resources which receive significant annual recharge during the rainyseason. its internal renewable water resources are estimated to 270 Cu km per year. As stated earlier, the percapita availability of the country (55,100 Cu km per head of population) is one of the most favourable in the region
but maybe misleading because of the low population density. In fact, the availability of ground water varies
considerably over the country. While in some areas the groundwater table is not very deep and enoughgroundwater exists to satisfy the needs of the population, other areas suffer a shortage of water. No thoroughresearch, however, has boon conducted in this area.

C)

Sectoral Water Use

The main bulk of water in the Lao PDR is being used by the agricultural sector (82%), while industrial anddomestic withdrawals count for 10% and 8% respectively.
In order to prevent unsustainable use of its water resources, the Government has formed the National Task Forcefor Water Resources Management, comprising of members of the most important line ministries of water usage
and management under the chairmanship of STENO.
The Water Law was promulgated in 1996.
Man-Made Reservoirs. After implementation of its hydro-power development programme the country’s surface will
be covered by several reservoirs. Each will need a management plan in order to prevent siltation and erosion. The
people of adjacent villages also need to adjust their fanning techniques (e.g. from riverine to pond fishery) or even
way of life from migratory to a more sedentary life.
At present there is only one large reservoir, the Nam-Ngum lake. The capacity of the attached hydro-power station
is 150 MW.
Hydropower. An issue, which is not only of national interest is the intention of the country to accelerate economic
development by exploitation of its big hydro-power potential for generation of foreign revenue. The Mekong rivermainstream and its tributaries possess a vast potential for hydropower. The basin’s hydropower potential from the
Mekong and its tributaries in Laos is about 18,000 MW of installed capacity and 110,000 GWh/year of annual
energy.
The use of such development, however, needs to be carefully assessed with regard to resettlement requirements,
environmental and socio-cultural impacts. Rural electrification is one of the factors to enhance socio-economic
conditions in the region, especially in the remote mountainous regions. Using the possibilities of transmission line
extensions is one of the options for the electrification, together with local mini-hydropower projects. A nationaltransmission grid would increase these opportunities.

3) Forest resource management：

a)General Issues

As mentioned before, the Lao PDR is still highly dependent on forest resources as a source of foreign exchange andincome for a large share of its people. Given the economy’s and particularly the export base’s limited
diversification, Lao PDR will remain dependent on income generated by the forest sector in the foreseeable future.
What is therefore needed, is a balance between sustainably managed production forests and protection forests in
key areas, such as critical watersheds and areas worthy of protection because of their rich biodiversity.
Based on the National Reconnaissance Survey of 1992, the sustainable annual rate of timber extraction from thecountry’s commercial forests is 288,000 m3. This is approximately equal to both the annual allowable cut adopted
by the Tropical Forestry Action Plan and recent annual quotas. In addition to this figure, another 100,000m3 are
estimated to be cut annually by forest-based communities for sale and to meet local needs (building materials etc.).
The major part of this comes from open area scattered stands and individual trees and does not affect potentialcommercial forests. Finally, sonic 80% of the country’s energy consumption is wood based. It has been estimatedthat per head fuel wood consumption averages 1m3 per annum based on the present population. Most of this isharvested by local communities for their own use and often is taken from understorey shrubs, and natural
mortality of larger canopy tree. Fuel wood harvesting does not appear to represent a serious environmental
problem in the Lao PDR, particularly in rural areas.
In the country’s development vision 2020, indicative targets were set to achieve a rehabilitation of 2,0 million ha ofdegraded forests and 500.000 ha of afforestation, in addition to natural forest regeneration on more than 16,5
million ha. This is to be implemented in parallel with sustainable exploitation of remaining forest resources)
which maximum allowable annual cut is not to exceed 500.000 cubic metres.

b)

Deforestation and its causes

The total forest area of the Lao PDR has decreased by 67,000 ha per year over the last decade. In addition to lossof forest land, there was also considerable degradation of the remaining area, causing concern within the
Government and leading to the declaration of 20 National Protected Areas, which cover approximately 12% of thecountry’s total area, the approval of the National Tropical Forestry Action Plan and the adoption of the forest law
in 1996.
The depletion of the country’s forest resources is due to a number of factors, including poorly planned andsupervised logging, forest fires, encroachment and shifting cultivation.
According to Government statistics, somewhat over 300,000 ha are annually cleared under shifting cultivation.
Although, at present, the three causes of deforestation (logging, encroachment and shifting cultivation) seem to beequally important, it is estimated, that to the extent that population continues to grow rapidly and fertility in the
uplands is declining, expansion of shifting cultivation into forest lands will increasingly become an issue. The
Government therefore pays attention to shifting cultivation and declared the reduction of slash-and-burn area anational goal is one of the national priority programme.

c)

Government Strategy

The Government is aware of the need to sustainable manage its forest resource, which is very crucial to the Lao
economy and society and therefore has decided to focus on several core programmes which provide theimplementation framework for an improved system of resource management. ‘1’he key points are:
Improved management of logging operations:●clear demarcation of production, community and protection forests●
development of forest management plans to guide commercial timber extraction in specific production
forest areas●
rendering forest enterprises contractually responsible for harvesting in accordance with forest
management plans and forest plantation plans●
improved coordination between logging and local processing to reduce and recycle wastage
Institutional strengthening.
●establishment of effective enforcement and control mechanisms to minimize illegal logging, missspecification and surreptitious exports●
training of forestry staff to strengthen its capacity in forest inventory and land use planning, forest
management, silviculture, scaling and protection.
●
establishment of a Forest Management Fund financed by a fixed percentage from forest taxation
revenues, so as to assure sustainable funding for improved forest management activities and●development and adoption of comprehensive land use and forestry legislation
Involve local communities in resource management●
granting long term use and access rights to forest land areas traditionally controlled by a given
community in exchange for adherence to resource use and management plans●assistance to lowland farmers to help increase yields so as to stop encroachment on neighboring uplands
and●development and gradual introduction of more sustainable upland production systems to limit extensionof shifting cultivation areas into forest land.

2. The quality of lifea)

Eradicating Poverty

As is generally known, pressures on the environment are driven by the dual forces of greed and need. In the firstcase, untrammeled resources harvesting and development without regard for the negative consequences doquickly deplete and damage the nation’s natural resources and cultural inheritance. In the second case, thepressure for survival pushes harvesting and land use beyond its carrying capacity and causes degradation overwide areas, This second scenario applies to the Lao PDR - environmental destruction is a “by-product” ofsubsistence living conditions, which have become unsustainable.
Socio-economic development is the first priority of the Government. In the five years after Rio Dejaneiro, Brazil it
has become increasingly clear that only development, which takes environment into consideration will besustainable in the long term.
The Lao Government therefore has to eliminate poverty and to balance the development effort in urban and rural
areas and to see the benefits of growth shared among the poor and non-poor alike. This has lead to the present
drafting effort of the Government of the National Poverty Alleviation Plan. Throughout this report, it is stressedthat mass poverty eradication is our main development goal. Sustained growth with equity and a sustainable
development strategy are the main instruments for reaching this goal.
As economic growth and rural development initiatives proceed, people in the rural areas will have access to socioeconomic alternatives mid this will contribute significantly to the alleviation of poverty but also to the protectionof the forests, watersheds and streams, which will no longer be destroyed by shifting cultivation. It becomes
essential therefore that this segment of the population be exposed as soon as possible to environmental education,
training and awareness so to make them more receptive to alternative modes of production that are notenvironmentally destructive.

b)

Raising the level of human healthIn the five years after Rio investments in the health sector did not yet reach the government’s own targets. A
planned rise in Government’s health expenditures from 2 to 6% of budget (1994-96) fell short. This situation will
be addressed during the coming five years with the declaration of health improvement as top priority. The
following objectives for the health sector are set:2●
enhanced promotion of health care, based on a combination of modern health sciences and traditional
practices in rural areas, with specific emphasis on health services for the ethnic minorities;●
extension of the higher quality coverage of the free treatment system;●
intensification of preventive health care at the grassroots by increasing immunization levels, theencouragement of improved nutrition, the use of clean water and latrines,●
development of drug revolving funds;●
training of health workers and improved delivery practices in villages;●
upgrading of doctor’s skills;●
increased supply of equipment;●
prevention of AIDS and●
improved supervision of private clinics.
2from: Government Report. Sixth Round Table Meeting, 1997c)

Controlling population growth

The 1995 census recorded a population of 4.58 million. That represented a million increase since the last census
1985. The fastest growing province is Vientiane Municipality, growth stemming from immigration in addition tonatural population growth. With the improvement of infrastructure and the expansion of medical services into thecountryside, mother and child mortality are likely to decline (Table 4). The Government has initiated a family
spacing programme in order to curb uncontrolled population growth and to ensure the health quality of mothers
and children.

Ⅳ．Current Government and sectoral policy
1. General Development Policies and Soclo -Economic Performance
The general economic development policy of the government is based on the New Economic Mechanism (NEW)initiated in 1986. The NEW has two main goals: (i) stabilization of the economy, and (ii) transition from central
planning to a market oriented growth strategy. Over the last decade the NEW has a significant impact andsuccess, including increase in foreign investment and a high growth of exports. The New was followed by a phaseof structural transformation, which placed high priority on large-scale infrastructure development. such national
highways, hydropower plants, urban water supply systems, and large-scale irrigation systems.

The present decentralised rural development policy of the Government is aimed at sustained growth with equity
for all citizens and emphasizes the dual objectives of conservation of resources and achievement of improved
livelihood systems, In 1994. the Government adopted a resolution, which highlighted the importance ofdecentralized rural development,, and national and provincial rural development committees were established.

2. Environmental Policy
Since the adoption of the New Economic Mechanism as an overall economic reform preess in 1986. theGovernment has engaged in an ambitious programme to transform the national economy from a centrally planned
to a market oriented one. With its economic base relying heavily on the exploitation of natural resources(agriculture, forests and hydropower), sustainable socio-economic development closely depends upon the adoption
and implementation of comprehensive natural resources management policies and programmes. In its efforts toreform and reformulate national strategies, the Government prepared a number of policy documents for natural
resource management in early 1990s, the tropical forestry action plan, the National Forestry Action Plan, theEnvironmental Action Plan and the Socio-economic Development Strategies.
The Environmental Action Plan lists the key environmental issues for the country and identifies the following
areas:●Development of planning and management framework for environmental aspects;●Forestry resources management;●Biological diversity conservation;●Land resources management;●Water resources management;●Industrial, mining and access infrastructure development; and●Institutional, legal and regulatory framework

3. Disaster Management Policy
The natural disaster prevention and protection in the Lao PDR is anchored in the Environmental Protection Lawof the country:“Disasters are extremely harmful incidents which occur either naturally, are man-made or caused by otherreasons. They affect health, life, belongings, and the environment. Disasters in Lao PDR can be: floods, droughts,
lands slides and erosion, fires, typhoons, pests epidemics, major oil spills or others.”“Disaster Protection and Prevention Measures The government founds a National Disaster Prevention Committee.
The Natural Disaster Prevention Committee must cooperate with the local administration for developing ofdisaster response and prevention plans. They must regularly monitor the threatened areas in advance.”
Before the Environmental Protection Jaw Summit, there was no organization responsible for general and macrodisaster management matters. after April 3, 1999, the National Disaster Management Office was founded byPrime Minister Decree3 to serve as center for coordination and main manager of UNCCD related activities.
National Disaster Management Office is cooperating on disaster prevention and protection within the country is
promoted by the existing Line Ministries and Provinces on natural disaster management and protection which
consists of representatives of key ministries, institutions and provinces.
Generally speaking, macro-level disaster management is being carried out by Ministry of Labour and Social
Welfare(LSW) and Science Technology and Environment Agency (STEA), while each technical ministry andprovince has responsibility over their respective environment relating the disaster management in close
cooperation with MLSW, STEA; Lao Red Cross(LRC), the Ministry of Agriculture/Forestry and Ministry of Healthetc.
3National Disaster Management Office. (Decree N0. 158. / PM, 23 August 1999)

Ⅴ．Legislation and International Cooperation
1. International environmental convention which Lao PDR has joined
Convention on Climate Change (1995)
Convention on Combating Dercertification and Drought (1996)
Convention on Biological Diversity (1996)
Vienna Convention for the protection of the Ozone Layer (1998) and;The Lao PDR has participated in many meetings on global issues: the Earth Summit (1992), the International
Conference on Population and Development (1994), the World Conference on Women (1995), the World Summit on
Social Development (1995), the UN Conference on Human Settlements (1996), the World Food Summit (1996) andthe Climate Conference (1997).

All behalf, Country Parties Lao PDR is expected to adopt national legislation, strategy and action plan related
natural disaster prevention and protection such as Environmental Protection Law (Articles 17-19) Prime Minister
Decree/No.158 on mandate of National Disaster Management Office, Land law, Water Law, Forest Law andAgriculture Law concerning the effective implementation of the UNCCD.
In the practices, Lao PDR formulated its collective short- and long-term development priorities in its National
Socio-Economic Development Plan relating enforcement of this convention the main priority programmes:●
Food production securiug self-sufficiency- Basic food security for all Lao people and maintenance of a buffer rice stock.
- Attain target levels of per capita consumption of meat, eggs, fish and vegetables.
Diversification of crops, to improve nutritional status of Lao people and provide better opportunities forcommercialisation of agricultural production●Stabilisation/reduction of shifting cultivation
stop the increase in lash-and-burn agriculture as population grows.
- Preserve watersheds and catchment areas●Human resources development
health, education, employment and social security, environment and refugee repatriation●Infrastructure development
provide the necessary infrastructural support for unstained economic growth through production, trade andthe delivery of goods and services, domestically and abroad.
●Rural development
the rural development programmes consists of various components or programmes:
household food security, rural infrastructure, health and education, sustainable use natural resources and etc...
●-

Improved socio-economic management and foreign economic relations
improve macro-economic management
expand trade relations, direct foreign investment and access to overseas development financing.
Facilitate Lao participation in regional groupings such as ASEAN and international conventions

Each of these tackles priority programmes a significant root cause of poverty in Lao PDR.
“Freeing our Country front the State of Underdevelopment by the Year 2020”4
Our long-term development goal is to free the country from the long term development goal (LDG) status by theyear 2020 through sustained and equitable economic growth.
Quilting the LDG status means eradicating mass poverty. This implies two strategies: high economic growth withequity said access to social services and markets for everybody, particularly these in the rural areas. The
objectives and targets set for the period 1997- 2000 stress the need to press ahead with our strategies andaccelerate the transition of the Lao PDR’s rural areas away from subsistence production to market production.
The financing of Lao development has been heavily dependent on foreign savings through loans, grants andprivate investment. Four fifths of public investment is funded by foreign capital inflows, since domestic savings,
both government and private, are very low.
Economic development in the future will also be dependent on the ability of the Lao Government to improve theroad and communication network throughout the country. There is only one road which links the north and thesouth and many secondary roads are only passable during the dry season. Tue Infrastructure Development
Programme focuses on the modernisation, by the year 2000 of the transportation and telecommunication network
nation-wide. While acknowledging that this situation needs urgent improvement, the Government still takes
precautions to protect its environment such as natural disaster prevention and protection.
4Policy Statement of the sixth Party Congress, March 1996

2. Conclusion Issues and failure trend associated with the process of decentralisationin disaster management:
Even though the government of Lao PDR considered decentralized environmental management including landuse, water resources and forestland management as one of the key national priority programmes to eradicationof poverty in the whole country, and that a number of policy, legal frameworks and different decentralized
disaster management approaches/ mechanisms and modalities have been formulated, adjusted and tested tosupport these efforts of decentralization, there are still however a number of constraints with regard to fillingthe institutional vacuums that have emerged from this decentralization process.

Major deficiencies concern the limited capacities and financial mechanisms at the provincial and district levels forcarrying Out management and development activities at local levels, continued appropriate training andestablishment of support services are needed at provincial and district level. This needs to include training on theinterpretation of the data and in formation collected to allow the identification and classification of focal sites toform the basis for promoting land use, water resources and forestland management plans to be tailored to different
recommendation domains.
The legal enforcement related to the natural disaster prevention and protection, the Lao PDR has acceded to many
legislation and national priority programmes, which address issues essential to the country’s present and futureenvironment well being and natural resources for sustainable development. Currently very little implementation,
legislative or physical, has boon undertaken.
Many elements of the disaster protection management have not yet been addressed legislatively, and should be dealt
with right away.

Think you!