The Sixth National Socio-Economic Development Plan (2006-2010) is based on: the Long-Term Strategy of Socio-Economic Development to the Year 2020; the Strategy on Industrialization and Modernization; the National Growth and Poverty Eradication Strategy (NGPES); the Regional Development Strategy; various thematic area and sub-sector strategies and plans; and the analysis of the international and domestic contexts for the development of the Lao PDR. Food insecurity must be addressed as a first priority, especially for the poorest districts. Without food security for themselves, households have neither the time nor the inclination to engage in other activities leading to longer-term improvement of their livelihoods. This concern will be addressed through the comprehensive district development planning system, which, together with improved accessibility, is at the core of the Government s rural development strategy (pag. 143).
The directions set in are to achieve the highest outcomes and make general changes along the following lines: Turn from under-development to fast and stable development, producing high value-added goods both in quantity and quality step-by-step in order to meet domestic market demand and increase exports; Increase competitiveness and utilize comparative advantages to implement effectively international economic commitments in the frameworks of ASEAN and other bilateral and multilateral commitments, including the WTO; Strengthen links between economic development and social development and protect natural resources and the environment. Social problems should be solved first, with attention paid to such issues as the reduction of poverty, unemployment and social evils, and keep the social and political situation stable: and Accelerate the building of a comprehensive socio-economic infrastructure and finalize the establishment of a market-oriented economy with socialist orientation to form the basis for industrialization and modernization.
The main goals of the Plan are to maintain all targets set in the Strategy (2001-2010), such as: economy and employment in building a market economy, based on the country s resources and international integration. Further build the market economy with a socialist orientation. Enlarge and develop effective external economic relations. Create breakthrough changes in education and training utilising the advances in technology, protecting the environment and taking human, scientific and technological players as vehicles for development. Develop culture and society in synchrony with economic growth. Reduce poverty creating jobs. Strengthen socio-economic infrastructure for development for the next plan. Rural poverty is directly linked to access to resources and social services, such as: availability of land tenure, access to forest and non-forest resources, security of livestock and access to agricultural inputs, credit, irrigation services and markets. The social services include education and health services, clean water and safe sanitation. The overall strategy is to develop the agriculture and non-agriculture sectors in rural areas to create employment, increase incomes and restructure rural economies; improving the access of poor rural people to basic social services. Investment assistance is to be provided for social and economic infrastructure in rural areas. Poverty alleviation will be continued, firstly for disadvantage areas (pag. 141).
The following guidelines to be followed are: economic growth increased and enhance the potentials of products by region, through goods and services and the level of competitive ability of all business enterprises and economic sectors; ensure the balance in economic development in parallel with social development and protection of the environment; create job opportunities, reduce unemployment and improve living conditions; reduce poverty; encourage economic development in the various sectors; establish infrastructure to support the socio-economic development activities aiming to promote trade, investment and tourism; increase the investment in the infrastructure for socio-economic development; explore national resources including human resources to be used as potentials for development in an effective economic structures and to be in a good position and ready for competition; Industry and agriculture will be synergized to increase the value of agricultural produce, especially that for export. Private sector development, particularly the development of the domestic private sector, will be critical to successful rural development, rural non-farm employment creation and poverty reduction. The existing strong linkages of many rural areas with markets in neighbouring countries will be developed (pag. 141).
In addition, facilitate conditions to increase exports; attract investment in terms of funding and technology as inputs from external sources to support the production of goods and exports while taking ownership in economic integration at the international level: and actively and strictly implement bilateral and multilateral agreements at the central and local levels; improve and strengthen the financial and monetary sectors by increasing the capacity of the national financial administration bodies, solving the problem of long standing debts by utilizing many financial sources including financial balancing at local levels. Implement national policies on economization strictly; maintain macroeconomic balance; establish and develop financial markets to meet the needs of socio-economic development activities. Security from natural disasters such as floods and droughts is a further dimension that needs to be addressed. The stress is on the importance of community involvement and the strengthening of community resilience, in addition to material help from the Government and the partners in development including NGOs.