UN-IFAD and Lao PDR Collaborate on Long-Term Rural Development Strategy

Since 1978, IFAD has been a key development partner for Lao PDR, co-financing 17 projects worth approximately $590 million.

Officials from the United Nations’ International Fund for Agricultural Development (IFAD) and the Government of the Lao People’s Democratic Republic (Lao PDR) gathered on Tuesday to assess progress under IFAD’s current strategic framework and plan for future initiatives aimed at rural poverty reduction and sustainable agriculture.

Building on Decades of Partnership

Since 1978, IFAD has been a key development partner for Lao PDR, co-financing 17 projects worth approximately $590 million. These efforts have contributed significantly to rural development by improving infrastructure, enhancing agricultural productivity, and supporting livelihoods for small-scale farmers. The recent Country Portfolio Review (CPR) meeting, led by IFAD’s Country Director Ambrosio Barros and Lao PDR’s Deputy Minister of Agriculture and Forestry Chanthakhone Boualaphanh, offered an opportunity to review the ongoing Country Strategic Opportunities Programme (COSOP) and identify lessons learned over decades of collaboration.

Aligned with National and Global Development Goals

Deputy Minister Chanthakhone highlighted how IFAD’s support directly contributes to Lao PDR’s 9th National Socio-Economic Development Plan (NSEDP) for 2021–2025, as well as to global Sustainable Development Goal (SDG) targets. “IFAD has been an important and trusted partner in achieving our rural development goals,” she noted. “These discussions help ensure we can work together effectively, building on past achievements and applying lessons learned as we face future challenges.”

Major Programmes Underway

At the review meeting, officials and partners evaluated the results of major IFAD-supported initiatives. One such program, the Partnerships for Irrigation and Commercialization of Smallholder Agriculture (PICSA), has strengthened irrigation infrastructure, improved catchment management, and fostered market connections in over 350 villages. Another key effort, Agriculture for Nutrition-Phase 2 (AFN II), builds on earlier successes by promoting sustainable, climate-resilient agricultural practices that boost incomes and improve nutrition for rural families.

Addressing Critical Challenges in Rural Communities

Over 60 percent of Lao PDR’s population lives in rural areas, with the majority relying on agriculture for their livelihoods. However, many rural families still face challenges, including limited access to irrigation, outdated farming techniques, and poor road infrastructure. These factors contribute to persistent food insecurity and malnutrition. Nearly one-third of Lao children under five years old suffer from stunting, and 40 percent of women are anaemic.

IFAD’s decades-long partnership with the Lao government has helped address these issues by building essential infrastructure—such as rural roads, irrigation systems, and farmer nutrition centres—and providing farmers with modern inputs, technologies, and training. Such efforts have enabled rural families to achieve better food security, create job opportunities for youth, and increase household incomes.

Looking Forward: Innovative Approaches to Rural Development

IFAD and Lao PDR are committed to expanding these gains. “IFAD is proud to partner with Lao PDR, investing in rural people to build a more prosperous nation,” said IFAD Country Director Ambrosio Barros. “Through collaborative programmes, we are empowering communities to develop sustainable livelihoods and adapt to evolving challenges. We look forward to continuing our work to channel innovative rural finance and climate-smart agriculture for a brighter future.”

By refining strategic approaches and leveraging IFAD’s technical expertise, the partnership aims to further reduce rural poverty, improve food security, and strengthen climate resilience, setting a strong foundation for a sustainable and inclusive development pathway.