Resource information
This report reviews Community Driven
Development (CDD) projects in Lao People's Democratic
Republic (PDR) to determine their effectiveness in
channeling resources to communities for poverty reduction.
The study examines three CDD projects in depth: the Poverty
Reduction Fund, the Village Investment for the Poor (both
supported by the World Bank), and the Government-financed
Village Development Fund. Through close analysis of these
projects and cursory analysis of other CDD projects, the
report concludes that overall, the CDD approach in Lao PDR
improves the well-being of communities in a cost-effective
manner. The study, however, identifies three challenges that
remain for CDD projects to be wholly successful. The first
challenge is a call for harmonization of CDD mechanisms
within the country. CDD approaches are not currently
coordinated geographically, technically, or financially.
This leaves communities who need help without resources, an
excess of skills in some areas and a dearth of skills in
others, and funding allocated towards operations, which
could be redirected to communities. The report recommends
coordinating and consolidating CDD approaches. The second
challenge is the achievement of inclusive participation.
While empowerment has proven to improve the well-being of
communities, not all local officials recognize the benefits
of a participatory approach. The report recommends operating
in districts on a long-term basis to develop sustained
empowerment and extensive training to local officials and
communities on participatory approaches. The final challenge
for CDD projects is the funding of livelihood activities,
which is necessary for sustained poverty reduction. Evidence
has demonstrated that CDD backing of livelihood activities
through loans, however, is unsuccessful. The report
recommends administering grants for livelihood activities
and ensuring technical support along with a participatory approach.
