14 November 2008
Australia supports poverty reduction initiatives in Lao
Australia will provide approximately $10 million for the second series of Poverty Reduction Support Operations (PRSO) to support development reforms in Lao PDR.
Australia’s participation in the program aims to improve education outcomes and trade and investment opportunities by supporting relevant Government of Laos policy reforms.
This support will enable Lao PDR to move towards the Millennium Development Goals by fostering economic growth, strengthening social service delivery and improving public financial management systems.
Funding for the program will be made available through the Government of Laos Budget until 2011, following the achievement of agreed reforms.
Joining the PRSO is also a further demonstration of Australia’s commitment to the global aid effectiveness agenda, which strongly encourages joint approaches and working through government systems. This builds upon the work Australia has already done to strengthen the Education Working Group and establish a multi-donor trust fund to improve trade and financial management in Lao PDR.
A Memorandum of Subsidiary Arrangement for the second series of poverty reduction operations was confirmed on 14 November 2008 by the Vice Minister of Finance, Madame Viengthong Siphadone and Mr Michael Hassett, First Secretary of the Australian Embassy.
During the signing ceremony, Mr Hassett, praised Laos for its on-going reform agenda and commitment to implementing the aid effectiveness agenda.
“The PRSO has supported reforms in public financial management that will result in better service delivery. It is also one of the few examples in Laos of a coordinated donor approach that utilises partner Government systems. I am pleased that Australia can play a strong role with the World Bank, European Commission and Japan to support government reforms and improve aid effectiveness in Laos,” Mr Hassett said.
The Australian Government will provide an estimated $38 million for development in Lao PDR during 2008-09.
Media contacts: Mr. Michael Hassett
First Secretary
Development Cooperation Section
Australian Embassy
Tel: 353800 Ext. 121