Local development programme
In execution
Preview
Donor(s)
- Luxembourg
- Switzerland
Implementation period
01.01.2023 - 31.12.2027
Total duration
60 months
Context
Laos has seen rapid macroeconomic progress in the past decade. However, the current socio-economic crisis, caused by high levels of public debt and exacerbated by the COVID-19 pandemic, has left many people living on the brink, especially in remote rural areas. Inequalities between urban and rural areas persist, with generally lower income levels, education, health, and nutrition indicators in rural communities. This is associated with increased resource scarcity, environmental degradation, governance challenges and inadequate public service delivery, in addition to geographical isolation, accessibility issues and limited agricultural potential.
Objectives
The expected outcome of the 2023–2027 Local development programme is “the well-being of the Lao people is improved, leaving no one behind”. This objective reflects the priorities of the Lao government's 9th National Socio-Economic Development Plan 2021–2025, as well as the objectives of Luxembourg's 5th Indicative Cooperation Programme for Aid and Development and the Swiss Agency for Development and Cooperation's Cooperation Programme for the Mekong Region (2022–2025), which jointly finance the programme.
Beneficiaries
The programme focuses on the poorest villages and districts in the provinces of Bokeo, Vientiane, Bolikhamxay and Khammouane, and expands its operations to cover 20 districts and 226 villages. Approximately 172,000 people benefit from the support of the Village Development Fund, and around 790,000 people benefit from infrastructure investments at the district level.
Stakeholders
The Local development programme builds on the close working relationships that have been established under the previous programme in this area with the Ministry of Planning and Investment, particularly the Department of Planning and its implementing agencies within the four partner provinces.
Sustainable Development Goals
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01. End poverty
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02. Zero hunger
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03. Good health and well-being
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05. Gender equality
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06. Clean water and sanitation
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08. Decent work and economic growth
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10. Reduced inequalities
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13. Climate action
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15. Life on land
Budget
Total budget
EUR 41,685,299
Contribution breakdown
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EUR 34,655,299
Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade
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EUR 6,930,000
Swiss Agency for Development and Cooperation
Documentation
News
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Laos 21.10.2025
Lao farmers explore innovative agriculture in Thailand’s upland areas
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Laos 15.10.2025
Strengthening rural development and supporting poverty reduction in the Lao PDR
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Laos 08.09.2025
The results of the baseline survey of the Local development programme are in
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Laos 02.04.2025
Joint LuxDev-SDC mission highlights impact and sustainability in Bokeo Province
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