The UN Capital Development Fund
(UNCDF)

From 2005 to 2021, the District Development Fund has disbursed US$8.5 million to carry out 1,049 projects serving rural communities.

A report on the achievements of the Fund was delivered on Friday at a workshop chaired by Deputy Minister of Home Affairs Mr Nisith Keopanya.

The projects comprised 550 social projects, with 256 being related to education and 294 to public works.

The 499 economic projects comprised 248 investments in public works, 231 in agriculture, 17 in trade, and three in environmental protection.

Saravan province received financing for 93 projects from 2005-2011, while support for Better Service Delivery was provided to 27 districts in four provinces through 259 local investment projects from 2008 to 2012

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Funds were also dispersed for the Strengthening Capacity and Service Delivery of Local Administrations Programme in 53 districts of seven provinces for 662 local projects during the period 2012 to 2016.

The Fund also supported the Governance for Inclusive Development Programme 2017-2021 in 33 districts of 14 provinces through 35 local projects.

Mr Nisith said the District Development Fund was part of the Party’s and government’s policy to strengthen capacity and increase the responsibilities and ownership of local authorities in the development and implementation of their development priorities.

This includes project management, which is an integral part of the government’s devolution policy, such as the Sam Sang directive.

The UN Capital Development Fund (UNCDF) has been a long-term partner and key participant in the government’s National Governance and Public Administration Reform programme.

By strengthening how finance works at local levels, UNCDF contributes to Sustainable Development Goal No. 1 on eradicating poverty with a focus on reaching the last mile and addressing exclusion and inequalities of access, and to Sustainable Development Goal No. 16 by strengthening government institutions.

The District Development Fund 2005-2021, with support from UNCDF and the collaboration of other development partners, has played a central role in the national devolution policy and its ongoing implementation.

The Fund has proven to be an invaluable tool for testing and demonstrating new and improved modalities of public financing, local budget management and capacity development for local government.

The District Development Fund and its projects have reached many Lao citizens and communities, extending public services in health and education, and improving livelihoods through investments in agriculture and small-scale infrastructure such as roads and bridges.

District Development Fund grant finance that has been provided by Laos’ development partners and been used directly by governments and citizens for economic and social capital investments, as a dual approach to poverty reduction.

Districts have used this funding system to directly invest US$8 million and provide over 1,000 local economic and social investments, and services, benefiting some 17 million people in rural Laos.

This funding support has increased the ability of the local governments to engage with citizens to lead, decide and manage local services delivery, a fundamental for true sustainability.

This growing local sustainability is evident by the fact that districts have progressively increased their own co-financing with District Development Funds from negligible in the early years to an impressive 26 percent in the current programme.

By Times Reporters
(Latest Update December 14, 2021)