The document provides information about Laos and its system of governance and public administration. It discusses: 1) Background on Laos, including its history, population, economy, and status as a developing nation. 2) The structure of Laos' government, including its constitution, head of state, ministries, and local administration divided into provinces, districts, and villages. 3) Ongoing public administration reforms aimed at decentralization, improving public services, increasing participation, strengthening the rule of law, and ensuring sound financial management at local levels of government.

1. Ohayo
Gozaimasu
(Good Morning)

2. Country Paper
Lao P.D.R
Training Course Topic:
“Enhancement of Local Government Administration and
Public Services (Participatory Local Development)”
JICA (Osaka) Japan, Aug. 17 to Oct. 10, 2009
By: Langsith THANASOUK (Mr.)
T.O. of the Department of Public Administration
Development (DPAD), Public Administration and Civil
Service Authority (PACSA), Prime Minister’s Office.

3. Laos

4. The Lao People’s Democratic Republic was established in 1975 as a sovereign
state. The area of land is 236.800 sq km, whole country has a multi-ethnic
population of 6.8 million with a growth rate of 2.3%, birth rate of 33.94/1,000
and death rate of 11.02/1,000 per annum (August 2009 est.) over 70% of the
population resides in rural areas. Per capita GDP stands at around US$ 330
(2002) and 2005 average GDP per capita reached US$ 490 with a growth rate
of 6% per annum. The new government’s Socio-Economic Development Plan
(NESDP) and Government’s policy 11 Programs and 111 Projects for the period
2006-2010 is boost economic growth to reach the project annual rate of 7.5%
and to achieve a GDP per capita of US$ 800 by 2010. Total revenue is
expending in line with increasing investments in mining and power which will
provide a sound basis for planned public expenditure reforms. Although the
percentage of population living below the poverty line decreased from 48% in
1990 to an estimated 31% the country remain one of the 13 least developed in
the Asia Pacific region and ranks 133 out of 177 in the global Human
Development Index (2005).

5. Laos has been known since ancient times as Lan Xang, or Land of the
Million Elephants (Lan Xang Kingdom) which established in the 14th
Century (Anno Domini 1353) by King Fa NGum Maharaj. For 300 years
Lan Xang had influence reaching into present-day.
After centuries of gradual decline, Laos came under the domination of
Siam (Thailand) from the late 18th century until the late 19th century
when it became part of French Indochina. The Franco-Siamese Treaty of
1907 defined the current Lao border with Thailand.
In December 02, 1975 Laos had liberty from the United States
protectorate and built new regime lead by President Souphanouvong and
Prime Minister Kaysone PHOMVIHANE. A gradual return to private
enterprise and the liberalization of foreign investment laws began in
1986 and open the country to international relations. Then, Laos became
a member of ASEAN on July 23, 1997 and other parties’ member of the
world up to now.

6. Laos Administrated by the rule of laws, the
constitution of Lao P.D.R was promulgated on
August 15, 1991 and amended on May 06, 2003.
•Head of state: President Lt. Gen. Choummaly
SAYASONE (since June 08, 2006);
•Vice President: BounNhang VORACHIT (since June
08, 2006);
•Head of Government: Prime Minister Buasone
BOUPHAVANH (since June 08, 2006);
•Deputy Prime Ministers:
-Maj. Gen. Asang LAOLI (since May 2002);
-Maj. Gen. Duangchai PHICHIT (since June 08, 2006);
- Dr. Thongloun SISOULITH (since 27 March 2001); and
- Mr. Somsavath LENGSAVAT (since 26 February 1998).

7. Cabinet: Ministers appointed by president, approved by National Assembly;
Prime minister nominated by president and elected by National Assembly;
Governmental Organizations consists: Prime Minister’s Office which is
government’s office, 14 Ministries and the Bank of the Lao P.D.R as below:
1. National Defence Ministry;
2. Ministry of Public Security;
3. Ministry of Foreign Affairs;
4. Ministry of Finance;
5. Ministry of Justice;
6. Ministry of Planning and Investments;
7. Ministry of Agriculture and Forestry;
8. Ministry of Industry and Commerce;
9. Ministry of Energy and Mines;
10. Ministry of Public Works and Transport;
11. Ministry of Education;
12. Ministry of Health;
13. Ministry of Labour and Social Welfare;
14. Ministry of Information and Culture;
15. Bank of the Lao P.D.R.

8. 1. Public Administration and Civil Service Authority (PACSA);
2. Autorité Nationale Pour les Sciences et la Technologie (A.N.S.T);
3. National Tourism Administration (N.T.A);
4. Water Resources and Environment Administration (WREA);
5. Autorité Nationale des Postes et Télécommunications (A.N.P.T);
6. National Land Management Authority (N.L.M.A);
7. National Sports Committee (N.S.C);
8. State Inspection Agency (S.I.A);
9. State’s Audit Office (S.A.O);
10. National Academy of Social Sciences (N.A.S.C).

9. Local Administration in Laos divides by 3 levels (Province, District and Village),
There are 17 Provincial levels (Capital city and Provinces), 142 Districts and 9.177
Villages (May 2009). Names of provinces level as follow:
1. Vientiane (the Capital city);
2. Vientiane Province;
3. Phongsaly Province;
4. Huaphan Province;
5. Luang Namtha Province;
6. Borkeo Province;
7. Oudomxai Province;
8. Luang Prabang Province;
9. Xayaboury Province;
10. Xieng khuang Province;
11. Borlikhamxai Province;
12. Kham Muane Province;
13. Savanhnakheth Province;
14. Salavan Province;
15. Xekong Province;
16. Attapeau Province; and
17. Champasak Province.

10. Ever since the creation of the Lao People’s Democratic Republic in 1975,
governance has played an important role in the country’s goals to consolidate the
nation-state, create national unity and establish the basis for sustainable and
equitable development.
The Lao P.D.R has been moving steadily from a command economy to a market
economy, attempting to incorporate even the remotest rural areas in a process to
ensure sustainable growth, increased food security and greater opportunities for
people’s participation. Achieving this cannot be possible without a strong, stable
and enabling Government that is able to meet the needs of the people. It is only
possible with appropriate socio-economic management tools and systems that
must be constantly adjusted over time to reflect ever-changing realities. But most
of all, it is only possible with the full involvement of the Lao people whose
participation in the development process is being constantly enhanced through
the simultaneous achievement of strong national capacity and a well-functioning
market economy, supported by a strong legal system that ensures fair access to
justice for all citizens.

11. Lao PDR is a people’s democratic state, a state of the people, by the people and for the people
where all powers of the state are the powers of the people. The reform of the people’s democratic
state aims at upholding the right of self-reliance of the people and ensuring the benefits for the
people. Improving people’s democracy consists of strengthening the political and administrative
system which aims at fulfilling the twin strategic tasks: protecting and developing the nation.
Public Administration reform is essential due to the fact that public administration or governance
is one of the most important tasks and is the deciding factor for ensuring success in the
implementation of the Party’s policy guideline as well as the State laws and regulations. Since the
founding of the Lao People’s Democratic Republic, the Government has made enormous efforts to
improve the political and administrative system to keep pace with the changing situation and with
the economic and social expansion in the country by emphasizing regional and international
integration. As a result, the political and administrative system of the country has been
strengthened and is able to ensure the management of the state and the society as well as the
promotion of socio-economic growth. With respect to governance and public administration
reform, the Government has stressed the need to improve regulations and the state organization
system, enhancing people’s self-reliance and participation, developing the rule of law and
managing the economy to ensure stability by enhancing transparent financial management and
raising the level of accountability as these are critical elements for reaching the goals of national
development.

12. In order to enable governance and public administration reform to enhance, directly or
indirectly, the implementation of the 6th Five-year National Socio-Economic Development
Plan (NSEDP) 2006-2010 the Government implementation development of public
administration. This important strategy will emphasize implementation of reform in four
main areas, namely: “public service improvement, people’s participation, rule of law and
sound financial management” in Local Administration.
Achieving good “governance” is by definition a long-term process. This process gained a
major momentum with the adoption of the revised Constitution as the most important
reference to achieve the rule of law. In the current historical period, the Government faces
an increased urgency to address governance issues, particularly in order to achieve the
targets of the National Socio-Economic Development Plan 2006–2010 including the
National Growth and Poverty Eradication Strategy targets outlined in 2004.
Governance is emphasised as a cross-cutting priority, and defined as a “vital link between
economic growth and poverty eradication, and an essential condition for moving beyond
the status of an LDC by the year 2020”.

13. The National Assembly, as the supreme body representing the rights and powers of the
people, has performed its role as the people’s representative and has made a number of
recent achievements. During the past five years, the National Assembly has adopted a
number of laws which increases the number of laws currently available in our country. This
development continues to create a favorable condition for the measured transformation to
a state of law or the rule of law. So far, eighty laws have been passed, of these: 11 laws are in
public administration area there are:
Constitution of the Lao P.D.R;
Law on National Assembly;
Law on Election of Member of the National Assembly;
Law on Government of the Lao P.D.R;
Law on Local Administration;
Law on Military Service;
Law on Local Administration;
Law on Anti-corruption;
Law on monitoring and Inspection of the National Assembly;
Law on Military of the Lao people’s Army;
Law on Development and Protection of Women.

14. The Public Administration and Civil Service
Authority (PASCA), is a state organization at central
level within the organizational structure of the
Prime Minister Office. It has an advisory role for the
government in the management and structural
improvement of government organizations at
central and local levels; civil service management;
study and determination of regulations on
establishment of civil society organizations
throughout the country.

15. Chart of PACSA
Madam Bounpheng MOUNPHOXAY
Minister to the Prime Minister’s Office,
Chairperson of PACSA
Vice Chairperson (1) Vice Chairperson (2)
Mr. Khammoune VIPHONGXAY Mr. Syphouk VONGPHAKDY
Cabinet Office Department of Public Department of Local Department of Civil Civil Servant Training
Administration Development Administration (DLA) Service Management Center (CSTC)
(DPAD) (DCSM)
Division of Planning and Division of Organizational Division of Local Administrative Division of Civil Service Division of Administrative
Summarizes Development Improvement Management Inspection
Division of Administrative Division of Administrative Division of Municipality and Urban Division of Development and Division of Curriculum
and Personnel Regulatory Development Administrative Evaluation Development and Training
Division of Publications & Division of Social Division of Public Service Division of Policy and Division of Civil Servant
International Relations Organizations Management Development Retirement Information
Division of Finance Division of Information and
Statistic

16. In order to strengthen the public administration operation efficiency, the
government of Lao PDR endorsed 11th Program, aims to improve
effectiveness of public administration 2006-2010 as the follow:
1. Project on Decentralization between Central and Local Levels;
2. Project on Governance and Public Service Delivery Improvement;
3. Project on Job Descriptions and Re-staffing in the Government Agencies;
4. Project on Remuneration and Compensation Improvement;
5. Project on Improvement and Strengthen Capacity of District Level;
6. Project on Training and Strengthen the Capacity of Villages;
7. Project on Recruitment and Retention Civil Servant in the Projects and
Rural Area;
8. Project on Performance Appraisal Management of Civil Servants;
9. Project on Anti-Corruption and Negative phenomena in the Public Sector;
10. Project on Municipal Establishment.

17. Major issues in public administration reform
Improve State Management Regulations and
Administrative Framework
Reform of Organizational Machinery and
Administrative Framework of State Agencies
Improvement of Civil Service Management; and
Strengthen Central-Local relationships

18. Improving
Arbitration
Function
Improving Improving
Dissemination
of Legal Info.
Rule of Law Legal
Enforcement
Predictility
Strengthen
Judiciary

19. To identify roles, authorities and duties more clearly based on
ministries that mainly play role in society. To inspect enforced
legal activities, which were effective, which should be
improved or rebuilt;
To fix the state mechanism, effectively carry out and resolve
various problems which are obstacles to administration and
services. The mechanism of ministerial level, local level
should be compact and suitable;
To solve disheartened issues of government staff by proper
means based on regulations and laws;
To replace managerial and technical staffs that are important
to proper positions, strengthen organizations and
transparencies, enable to control in general and more
effectively manage sectors.

20. Develop the laws and regulations which are the basis for the rule of law
including management in the justice, public administration, social, economic
and service sectors.
Improve the organizational machinery of the Government and the governance
system in order that they may become stable, rationale, effective which can
facilitate better service delivery to the people.
Develop the civil service equipped with knowledge and skills in various fields
through systematic and continued training and development including strong
political ideology, ethical conduct, and transparency in service delivery; to
prevent corruption and other negative social phenomenon within the public
service system. At the same time, to conduct the study on policies to make civil
servants motivated and active in performing their works through reasonable
remuneration and allowance system.
Improve the relationship between central and local levels by specifying clearly
the roles, functions and rights; decentralize the responsibilities together with
the rights of decision-making to local level authorities in accordance with
specified rights to enable them to make decisions by themselves.

21. Governance is at the heart of Lao PDR movement towards sustainable
human and economic development. It is a vital link between economic
growth and poverty reduction and an essential condition for moving
beyond the status of less developed country by the year 2020.
Indeed, good administration reform requires strong leadership capable
of providing vision and of adapting to the changing environment. It
requires the ability to implement that vision by bringing together key
players from government, civil society and the business community.
Leadership also includes the willingness and ability to share
information, power and control according to existing capacities,
knowledge and skills. It is important to combine this flexibility with a
firm dedication to protect national values and domestic organizational
culture, whenever appropriate.

23. Thank You
(Khob Jai)