Investment project benefits don't always trickle down
Investment project benefits don't always trickle down
As Laos opens up to international trade there are many investment projects taking place, but some are not benefiting rural people as promised.
The Lao- German pro-gramme ‘Land Management and Rural Economic Development' (LM-RED) and the Ministry of Planning and Investment this week held a training workshop for officials concerning the monitoring of ongoing investment projects to ensure they benefit ordinary people.
According to information provided by the LM-RED project, the rural population is not benefiting sufficiently from this economic upsurge as things currently stand, which poses risks and challenges when it comes to achieving sustainable development.
Without proper mana-gement, foreign direct investments and other large ventures are likely to limit access to land and market access for the rural poor.
The two-day workshop held at the Ministry of Planning and Investment was attended by officials from ministries concerned with the approval and management of investment projects. The trainees learned about the forms and questionnaires required to follow up and report on the outcome of various projects.
The workshop was opened by the Director General of the Investment Promotion Department, Mr Houmpheng Soulalay.
Rural communities stand to benefit from the programme, especially in the provinces of Luang Namtha, Xayaboury and Attapeu where it will be piloted.
Laos plans to graduate from least developed country status by 2020. To achieve its ambitious development goals, the country is increasingly opening up to regional and international markets and encouraging more foreign direct investment.
Land and other natural resources are very attractive assets for foreign investors. Investment in mining, agriculture and forestry and the hydro-energy sector are of major interest to investors in many countries, but the benefits must flow to those who need it most.
The LM-RED programme aims to achieve the implementation of cross-departmental strategies and measures for poverty orientated rural development by supporting the relevant government stakeholders at the national and sub-national level.
Institutional capacity buil- ding and cross-sectoral cooperation among the different institutions responsible for land management, development planning, investment promotion, and agriculture are crucial requirements if the potential of investments in land and agriculture is to be realised and social and environmental risks minimised.
vientiane times
