Attachments
Executive Summary
The Lao People’s Democratic Republic (PDR) is one of the most ethnically diverse countries in Southeast Asia, with the majority of the population comprised of ethnic Lao people alongside many other minority groups who reside predominantly in the foothills and mountains. While Lao PDR still faces relatively high poverty rates, it has made incredible strides in poverty reduction since the socialist state instituted economic liberalization policies in the mid-1980s. The percentage of the population living in poverty declined from 46% in 1993 to 18% in 2019. The Coronavirus disease 2019 (COVID-19) pandemic caused a severe economic setback, but the gross national income is almost back to pre-pandemic levels as of early 2024.
Lao PDR faces several natural hazards, including floods, landslides, tropical storms, droughts, and earthquakes. Flooding is the most commonly occurring disaster and affects the most people. While flooding is part of the Mekong River’s annual cycle, flooding has become more frequent and intense due to a combination of climate change and damming rivers for hydropower. Flooding is worse in the rainy season, but it may also be triggered by tropical storms affecting the region. Occasionally, flash flooding has been caused by dam failure, as happened in 2018 with the collapse of one of Xe Pian-Xe Namnoy’s saddle dams. This dam disaster damaged or destroyed 19 villages and displaced thousands of people. While droughts are not as frequently occurring, recent years have seen more intense drought, particularly during El Niño years. In addition to natural hazards, rural areas remain burdened with unexploded ordnance (UXO), which poses a particular risk to farmers and children.
After the fatal flooding caused by the 2018 dam collapse, Lao PDR developed its first national disaster risk reduction (DRR) strategy and in 2019 adopted a new disaster management law. Both emphasized the importance of early warning systems and enhanced the disaster management structure. While the National Disaster Management Committee is responsible for overseeing coordination and developing policy, much of the disaster management organization is localized down to provincial, district, and village levels to increase community representation. Many international relief and development organizations support government efforts, and local organizations provide assistance, foster economic empowerment, and advocate for vulnerable populations.
Lao PDR is vulnerable to the impacts of climate change, with various models projecting increased extreme heat and increased flooding risks. The country is already facing rising temperatures, which are projected to continue rising broadly in line with the global average. Increased temperatures will worsen human health and ecosystems, and crops and agricultural livelihoods will be negatively impacted. The trend of rising temperatures coincides with increased urbanization, as more people migrate from rural to urban areas in search of opportunities, leading to increased unplanned urban settlements that will be more vulnerable to extreme heat. Whether in urban or rural areas, people living in poverty are especially vulnerable to climate-related hazards, many of which may be exacerbated by climate change.
Lao PDR is balancing managing disaster and climate risks with promoting economic growth.
One key economic approach is to transform from “landlocked” to “land-linked” through multi-billion-dollar railway and electrical lines.
Another key part of the national strategy is based on becoming the “battery of Southeast Asia” by generating electricity via hydropower and exporting the electricity to neighbors. While damming raises concerns about ecological impacts and displaced villagers, hydropower is a key part of the country’s approach to economic development.