National Policy Workshop on Fostering Productive Capacities, Export Diversification and Structural Economic Transformation: Policies and Strategies for Sustainable Graduation of Lao PDR from the Category of LDCs

Background

The continued vulnerability of Least Developed Countries (LDCs) such as Lao PDR is due, mainly, to weak productive capacities, and a lack of structural economic transformation and export diversification. As with many landlocked developing countries (LLDCs), Lao PDR also faces geographical challenges, as well as high trade-transport costs, which undermine the export competitiveness of the country. To address these complex trade and development challenges, UNCTAD has been undertaking a series of policy-oriented activities in support of LDCs and LLDCs. Beyond its analytical work on the concept of productive capacities and structural transformation, UNCTAD has also developed a Productive Capacities Index (PCI), including for Lao PDR. These activities, together with the national study, which UNCTAD recently commissioned for Lao PDR, point to the fact that the country still faces several challenges, even as it prepares for graduation from the LDC category.

Objectives

The main objectives of the workshop are to seek ways and means to address the country's development challenges, and identify priority areas for action by the Government of Lao PDR and its development partners.

The focus will be on policies and strategies, as well as international support mechanisms to enable Lao PDR to foster productive capacities, export diversification and structural transformation, with the aim of accelerating progress towards graduation and ensuring the country’s readiness for the post-graduation environment.

More specifically, the policy-level workshop will:

• Sensitize experts, policy advisors and senior officials on the economic progress achieved by Lao PDR and the drivers of its graduation, as well as the remaining economic challenges for Lao PDR;
• Discuss the challenges and opportunities related to graduation from the LDC category;
• Identify the policies needed to accelerate momentum for graduation and prepare the ground for the post-graduation environment;
• Identify critical areas and map strategies for Lao PDR to reduce any possible negative impacts from graduation from LDC status, including the re-orientation of exports, harnessing of regional market opportunities, as well as the diversification and upgrading of export products; and
• Deliberate on the economic vulnerabilities of Lao PDR, and identify policies and strategies for building economic resilience during and after the graduation of the country from the LDC category.