Review highlights progress made and challenges facing Lao People’s Democratic Republic’s National Social Protection Strategy

ILO is continuing its support to the Government of Lao People’s Democratic Republic in its commitment to achieve universal social protection coverage to reduce inequality and poverty through the implementation of a National Social Protection Strategy (NSPS).

The ILO-UNDESA Project “Accelerating universal social protection for achieving the Sustainable Development Goals and ending poverty through strengthened governance and digital transformation”, funded by the United Nations Peace and Development Fund, provides integrated support to the Lao PDR to plan, finance, implement and monitor the National Social Protection Strategy.

In 2023, the National Social Protection Commission (NSPC) requested ILO to provide technical and financial support to the mid-term review to evaluate the progress of the NSPS implementation and make necessary adjustments. The assessment served to inform the strategic direction for the second phase of implementation and provide insights for other development partners to consider when providing assistance.

The review made recommendations to improve overall social protection coverage and the quality and efficacy of social welfare programmes in Lao PDR, including improved strategies for implementation at the central and subnational levels. The review also promoted enhanced learning and accountability through a strengthened monitoring and evaluation framework for the NSPS and made recommendations to strengthen the financing of social protection to ensure long-term sustainable funding.

The findings were validated at two key meetings: a workshop organised by the NSPC Secretariat and ILO in Vientiane on 19 January 2024, and a high-level NSPC meeting held in Thalat on 21 February 2024.

At the 19 January 2024 validation meeting, Mr. Vilayphong Sisomvang, Director General of the Planning and International Cooperation Department, Ministry of Labour and Social Welfare noted that, “although the Covid-19 pandemic and economic challenges impacted the initial phase of implementing the National Social Protection Strategy, significant progress has been made in increasing awareness of social protection and enhancing coordination across legislation, policies, and institutions.”

Mr Chanhsy Samavong, ILO Consultant presents the mid-term review findings at the validation meeting on 19 January 2024

However, the review also found that while the Lao economy is growing steadily and the economic outlook for the coming years is positive, government expenditure on social assistance remains insufficient. Long-term domestic financing is needed due to decreasing donor support. There is no medium-term expenditure framework and financing strategy in place for social protection. In comparison to other regions, the expenditure on social protection remains extremely low due to the ineffective utilization of resources. “Going forward, it is vital to maximize the available resources for social protection by seeking synergies and enhancing efficiency wherever feasible,” remarked Loveleen De, Social Protection Programme Manager at ILO. “More needs to be done to align the work of different ministries, development partners, and NGOs with the principles and activities described in the NSPS and ensure they don’t work in silos. There also needs to be a stronger and improved monitoring and reporting mechanism.”