Transcript 2006Œ2010 - World Bank

Lao Agriculture and Forestry
Expenditure Review
PER Workshop May 11-12 May, 2009, Addis Ababa Ethiopia
Name of Country
Name of Participants
:
:
Organization of Participant
:
Lao PDR.
Mr. Khamsay PHOTHIDETH
Mr. Bouavanh CHANTHAVICHITH
Department of Planning
Ministry of Agriculture and Forestry
PRESENTATION OUTLINE

COUNTRY OVERVIEW

STRATEGIC DIRECTION OF
AGRICULTURE & FORESTRY
SECTOR

AGRICULTUR AND FORESTRY
REVIEW( in the period 2006-2010 )
1. Country:
COUNTRY OVERVIEW
Centrally located in GMR
Area = 236,800 km2
Mountainous, land locked and tropical
2. Population: 5.7 millions
80% in rural areas
2.1% annual pop. growth
4. Economy: Narrow base - resource exploitation
GDP per capita of US$650
GDP growth of 7% annually:
GDP chare:
52% of GDP from agriculture
23% of GDP from industry
25% of GDP from services
Geography and Topography

The mountains and plateaus cover an area
approximately 80% of the country.

Floodplains compose 20%.

The Mekong is Great River in Laos and
flows through 1,898 Kilometers of Lao
territory and forms the major portion of the
border with Thailand.
Geography and Topography (cont)

The territories of the Mekong River in Laos
are well endowed with water resources
( about 40%)

which are particularly suitable for agricultural
production and enable hydropower projects.

More than 40% of the land is covered by the
forestry.
Climate

The country experiences a tropical monsoon
climate with alternating wet and dry seasons

The wet season extends from April to October
and is dominated by a southwest monsoon
with high rainfall, temperature and humidity.

The annual rainfall ranges from less then
1,400 mm/year in the Northern valleys to over
1,900 mm/year in the South.
Population

The population of Lao PDR is 5.7 millions people,

of with 50.2% are female and 49.8% are male,

density of population is an average of 24 persons per
square kilometers.

3 mainly ethnic groups in Laos.

growing at about 2.1% per year.

Majority of the population mainly is Buddhists

The urban population is only 20% and 80% of
people live in rural and mountainous areas.
Some potential resources in
agriculture and forestry sector

There are some more 4 million hectares of
arable and of which only 1.5 million hectares
are in use, of which about 800.000 hectares is
occupied by crop production.

Forest land covers about 11.2 million hectares
which accounts 47% of the total land area.
Some potential resources in
agriculture and forestry sector (cont)

The high potential of water resource which
can be used for irrigation purpose and hydropower as well.

Climatic condition are quite favorable for
crops diversification
ECONOMIC ( GDP by sector)Service
25%
Tax
1%
Agriculture
52%
Industry
22%
¯È¾-Ä´ É
ECONOMIC ( GDP by sub-6%
sector)Forestry
6%
¯ø¡-±Crops
ñ¤
ì
¼
É
¤¦
©
ñ
Livestock
19%
19%
27%
27%
STRATEGIC DIRECTION OF AGRICULTURE
& FORESTRY SECTOR
3 Programmers and 20 projects implemented by the Ministry of Agriculture & Forestry

INTEGRATED AGRICULTURAL DEVELOPMENT (Program No 2 of NSEDP)
1. FOOD PRODUCTION PROGRAMME ( Goal No 1 )
2. COMMODITY PRODUCTION ( Goal No 2 )

INDUSTRY AND FORESTRY MANAGEMENT (Program No 3 of NSEDP)
3. DEFINITELY STOPPING OF SLASH AND BURN CULTIVATION
(Goal No 3 )

POVERTY ERADICATION FOR HOUSEHOLDS COMMUNITY AND
SHIFTING CULTIVATION STABILIZATION (Program No 6 of NSEDP)
4. SUSTAINABLE FORET MANAGEMENT AND WELL-BALANCED
BETWEEN EXPLOITATION USES AND PROTECTION/COSERVATION
(Goal No 4)
*. 13 MESUREMENTS/PROCEDURES
Priority programs of the
Agriculture and Forestry Sector





Food Production;
Commercial production;
Stabilization and Reduction of shifting
Cultivation;
Agriculture and Forestry research
Human Resource Development
Agriculture and Forestry sector policy
implementation



The logic is that national macro-economic goals set the
framework of national macro-economic programs and
policies.
The sub-sector goals for agriculture and forestry make
into project goals include the activities goals.
In this respect agriculture and forestry sector will play the
key role in the development of the national economy in
the context of sustainable resource use and poverty
alleviation since most of the poor population are farmers
in the rural and mountainous areas.
Project/ budget allocation


Degree No 58/PM (PIP management)
Project types:
I: ≥ 50 billion( MPI & Government)
II :>5 ≤ 50 billion (MPI)
III:< 5 billion ( line agencies, local governor )
Priority: 3 Programmers and 20 projects implemented by

the Ministry of Agriculture & Forestry
Tools for screening: PCM, PIN,PCAP and M&E.

Agriculture and Forestry Review
( in the period 2006-2010 )

PUBLIC INVESTMENT 448.968,16 billion kip per
year;
 Managed by the Ministry is 157.744,46 billion kip,
ratio covering 35% of all fund in the whole sectors;
 managed by the local is 291.223,71 billion kip, ratio
covering 65% of all fund in the whole sectors

THE SPECIFIC FUND for forest and forest
resources development related to the management
of environment has the amount about 10-15 billion
kip per year
Agriculture and Forestry Review
( in the period 2006-2010 )



DONOR SUPPORT: 69 cooperation projects has
the amount of 247 million U.S. dollars
56 projects are free grant project has a amount of
116 million U.S. dollars
13 projects are loaned project has a mount of more
than 104 million U.S. dollars
Agriculture and Forestry Review
( in the period 2006-2010 )


COMPANY INVESTMENT: 627 companies
with the total amount of more than 5 billion U.S.
U.S. dollars
367 are invested by national private company

260 are invested by foreign companies
Agriculture and Forestry Review
( in the period 2006-2010 )

A total amount on supplying raw material for
processing factory and transferring to the trade is
434,8 million U.S. dollars covering 87% of plan
(500 million U.S. dollars/ year)



Agricultural commodity
301 million US. Dollars
Livestock and fishery
102,4 million US. Dollars
Forest and non-timber forest products 31,4 million US. Dollars
Agriculture and Forestry Review
( in the period 2006-2010 )

The export of goods is 282 million U.S. dollars
exceeding 41 % of plan (200 million U.S. dollars/
year)



Agricultural commodity
182,8 million US. Dollars
Livestock and fishery
24,6 million US. Dollars
Forest and non-timber forest products 74,6 million US. Dollars
ACTUAL MAF LINES OF PLANNING AUTHORITY

There is a close work relation with the MPI (The MPI set
up macro economic, establish multi year planning
framework and set annual planning criteria to the Ministry
agency).

DOP has the direct relation with the Director General and
the Minister of MAF (The DOP formulates sect oral
strategy and issues planning guidelines to technical
department and integrates sub-sect oral plans into
agriculture and forestry plan and forwards to MPI).

All organization of the MAF (issue guideline and planning
parameters to province agriculture and forestry services
and forwards sub-sect oral plan to DOP).
ACTUAL MAF LINES OF PLANNING AUTHORITY
(cont)

At the local authority there are 18 PAFSO and 142 DAFO
(PAFSO issues planning guidelines for DAFO and village
committees and forwards provincial agriculture and
forestry sub-sect oral plans to respective MAF
Department).

There are about 11.400 villages, (the village committees
and DAFO prepare and forwards district and village data,
information and plans t0 PAFSO).

ORGANIZATION CHART OF THE MAF2.doc
THE PROBLEMS
Comparative quality of Agriculture and Forestry sector annual plans
Requirement plan element
* Sector strategy
* Sector gools
* Tie-in to National Macro-economic Framework
* Programming/Budgeting Approach Complete
Resource Identification (Natural, Material,
financial and human)
* Analytical approach to resource allocation
* Implementation plan
* Verifiable indicators
* Monitoring and Evaluation
Maxi
mum
5
5
5
5
Plan
year
2005 2006
3
3
2
2
1
2
1
2
2007
3
3
2
2
2008
4
4
3
3
5
5
5
5
1
1
1
1
2
2
2
2
2
3
3
2
2
2
1
1
The average result: 2,75 that is poor cooperation and poor coordination
on planning and management in agriculture and forestry sector.
The constraints










Low capacity in management planning, financing and statistics
Low capacity in technical and management fields
No clear job description for institutions and staff
Limited incentive and low salary
Limited educational level (36% university graduate plus 30% with
high education)
Potential manpower with 65% under 35 year of age
Staff with limited field experience in some institutions
Budget limitation for increasing and mobilize staff
Practically no carrier development program especially staff who are
assigned to remote area
Low capacity of Subject Matter Specialist (SMS) at provincial level