Integrated rural development in mountainous areas
Project description
Title: Integrated rural development in mountainous areas in the Lao People’s Democratic Republic (phase II)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Lao People’s Democratic Republic
Lead executing agency: Ministry of Planning and Investment (MPI)
Overall term: 2004 to 2011
Context
Large sections of the rural population in the mountainous areas of Laos live in poverty and depend on subsistence farming. The infrastructure is inadequate and they have insufficient access to social services. The local people have virtually no opportunities to participate in decision-making processes. Due to the rising demand for agricultural produce and the greater involvement of buyers and international investors, the local economy is becoming increasingly commercialised. The rural people have just a limited capacity to use these changes as a means of improving the conditions under which they live.
Objective
The social and economic conditions in which people live in the rural mountain provinces of Luang Namtha, Sayaboury and Attapeu have improved sustainably.
Approach
The project is supporting the process of decentralised development planning with the active participation of village communities. The outcome of planning processes at local level is fed into the five-year plans drawn up at district and province level. Initiatives on sustainable resource management, promotion of local business, and development of services are therefore formulated on the basis of realistic, jointly developed approaches. The state bodies responsible learning how to encourage and support sustainable development processes of this kind.
Through development partnerships with the private sector and through contract farming, the project is supporting the efforts of the local population to diversify and increase its income potential through cattle breeding, cotton, silk, coffee, organic vegetables, and ecotourism. State bodies are being trained to analyse economic potential and to create the conditions that will allow producers and buyers to use this potential.
The programme is being implemented jointly with the Ministry of Planning and Investment (MPI) and its local representation in the provinces of Luang Namtha, Sayaboury and Attapeu. It is also working closely with KfW Entwicklungsbank (KfW development bank). In two target provinces, the project is cooperating with the International Fund for Agricultural Development (IFAD).
Results achieved so far
The programme makes a significant contribution to reducing poverty. The number of poor households in the target districts has fallen by more than a quarter since 2007. Over 20,000 households, representing 150,000 people, have improved the conditions under which they live.
More than 300 municipalities are now able to plan their own development and identify measures that can be implemented either through local initiatives or with state support. Successful linking of planning tools at village, village-cluster and district levels means that the aspirations and needs of local people are better reflected in decision-making processes at higher administrative levels; state infrastructure measures (water supply, road building, schools, and health care) are also better tailored to the local population. The progress made towards decentralised planning has also contributed much to the formulation of five-year plans for social and economic development in the three target provinces. These now reflect the needs of the rural population more accurately.
Promoting the cultivation, processing and marketing of selected agricultural products and promoting tourist attractions has provided a more regular income for over 800 households. The project works specifically with private companies that have expertise in cultivation methods, processing and distribution channels in the target regions. These companies often negotiate contracts with farmers, guaranteeing purchases of agreed quantities at fair prices.
As regards land use planning and the management of natural resources, the project has supported the introduction of plans for the use of natural water resources. Identifying protected zones and imposing closed seasons has helped fish stocks to recover and ensured their sustainability. As well as producing positive effects on food security (especially the supply of protein), this also enables fishery products to be sold through local markets, providing an additional source of income. Strengthened by the officially sanctioned usage plans and rules, village communities are now also taking legal action against criminal fishing methods, such as dynamite fishing.