TOWARDS BETTER GOVERNANCE in Lao PDR

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TOWARDS BETTER GOVERNANCE in Lao PDR

• Governance Unit
• November 2004

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Lao PDR Milestones

• One party democracy (1975)
• Lao Peoples Revolutionary Party
• Constitution (1991) Review (2003)
• Seventh Party Congress (2001)
• Elections National Assembly (2002)
• Opening up.?
• New Economic Mechanism (1986)
• ASEAN (1997) NTR (?) WTO (2006-07?) AFTA/CEPT
  (2008)

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Lao Peoples Revolutionary Party

• Nucleus of political system Art. 3
• Control over
• Government
• Administration / Bureaucracy
• Mass Organizations
• Military

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Strategy

• Economic development
• Goal graduate from LDC status by 2020
• Socio-Economic Development Plan
• National Growth and Poverty Eradication Strategy
  enhance growth, reduce poverty
• Governance intersectoral priority
• - vital link economic growth poverty
  eradication

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LDCs and Barriers to Growth and Development

• Internal impediments
• 1.       Weak governance
• 2.       Human capacity deficits
• 3.       Gender discrimination
• 4.       Internal and external human conflicts
• 5.       Deficiencies in communication and
  infrastructure
• 6.       Environmental degradation  
• External impediments
• 7.       Low population density / limited
  internal markets
• 8.       Protectionism and reduced trade
  opportunities
• 9.       Landlockedness and physical isolation
• 10.   Biophysical barriers (e.g. soil
  infertility, HIV-AIDS, etc.)
• 11.    External debt

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Political Structure

• National Assembly
• President of the Republic and Head of State
• Government headed by PM
• Local Administrations provinces,
  municipalities, districts and villages
• Judiciary Peoples Courts (national, provincial,
  district levels)
• Offices of Public Prosecution (all levels)

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What is Governance?

• Governance the traditions and institutions by
  which authority is exercised.
• The process by which those in authority are
  selected and replaced
• The capacity of government to formulate and
  implement policies
• The respect of citizens and state for
  institutions that govern interactions among them

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Dimensions of Governance

• Voice and Accountability citizens participation
  in selection of government.
• Political Stability threats to government by
  unconstitutional and/or violent means?
• Government Effectiveness commitment civil
  service competence, independence
• Regulatory Quality
• Rule of Law abiding by the rules of society,
  effectiveness and predictability of judiciary
• Control of Corruptionexercise of public power
  for private gain.

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Governance Challenges

• Good governance / ROL in one-party context
• Aid dependence (70 PIP)
• Low capacity
• Basic skills
• Civic awareness
• Pay and compensation corruption
• Human rights inequality internal security
• Politics and Reform in Lao PDR, Martin Stuart
  Fox, May 2004

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UNDP Mandate / Practice Democratic Governance

• Parliamentary Development
• Electoral Systems and Processes
• Access to Justice and Human Rights
• Access to Information
• Decentralization and Local Governance
• Public Administration and Civil Service Reform

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Lao Governance Strategy

• Public service reforms for enhanced service
  delivery
• Address
• Duplication of mandates
• Inadequate structures and practices
• Inadequate staffing levels
• Low salaries, corruption

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Lao Governance Strategy

• Peoples participation
• Address
• National Assembly
• Civil society
• Media transparency, ICTs
• Decentralization to lowest capable level

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Lao Governance Strategy

• Rule of Law and Access to Justice
• Address
• Independence of the judiciary
• Peoples access to justice/Bar Association
• Strengthening judicial process
• Complete, clear, coherent legal framework
• Strengthening capacity of legal institutions
• Mechanisms for dispute resolution
• Legal enforcement

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Lao Governance Strategy

• Sound financial management
• Address
• Revenue shortfalls (administration, policies,
  incl. VAT)
• Fiscal decentralization
• Expenditure planning and management
• Accounting system
• Banking sector development
• ODA management

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UNDP LAOS GOVERNANCE OVERVIEW
Chief of Unit / ARR
Secretary
A2J and Human Rights Parliamentary
Development ICTD for the poor
PAR Decentralization Local Governance
Globalization benefiting poor
2 POs 1 PA
2 POs 1 PA
LEGAL SECTOR PA (MoJ OPP PSC) Lao Bar
Association
GPAR CENTRAL (II) (PMO/DPACS)
CUSTOMS REFORM (MoF)
GPAR UNDP UNV (OoG Luang Prabang)
WTO ACCESSION MoC
NATIONAL ASSEMBLY
GPAR UNDP (OoG Luang Prabang)
INTERNATIONAL LEGISLATION (MoFA)
GPAR Saravane (CDF) OoG (Saravane)
INTERNATIONAL LEGISLATION (MoFA)
GPAR OoG (Xieng Khouang Khammouane)
PIPELINE
ACTIVE
FISCAL DECENTRALIZATION (MoF)
E-POLICIES LAO CHARACTER SET STEA
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Governance Resources

• www.undp.org/governance/
• www.undplao.org/democratic20governance.htm
• Governance Indicators A Users Guide
• www.worldbank.org/wbi/governance/
• Politics and Reform in the Lao Peoples
  Democratic Republic, Martin Stuart-Fox (2004)
• Governance in the Least Developed Countries in
  Asia and Pacific An assessment of the current
  situation, Patrick Keuleers, March 2004
• Public Service Reform, Peoples Participation,
  Rule of Law and Sound Financial Management A
  Policy Paper of the Government of Lao PDR on
  Governance Issues, Government of Lao PDR, March
  2003
• Evaluation of the Implementation of the Rule of
  Law in LAO PDR, 1997 2003 Lessons And
  Challenges, October 2003, UNDP.