Environmental Challenges for Green Growth and Poverty Reduction: A Country Environmental Analysis for the Lao People’s Democratic Republic

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The Lao People’s Democratic Republic was one of the fastest-growing economies in the world until the COVID-19 pandemic hit in early 2020. The economy was growing at an average annual rate of 8% since the beginning of the century and poverty was steadily declining. However, even before COVID-19 emerged, the government recognized that this strong economic growth was largely fueled by natural resource-based activities, including mining, logging, hydropower and agriculture.

This report is a comprehensive presentation prepared after two years of targeted diagnostic research and analysis of issues and conditions within Lao PDR.  Its scope includes consideration of impacts on key economic sectors and on risk factors influencing the health of the population. 

The report also identifies solid waste management and plastics as an important priority to which the government has already pledged its support in regional and global initiatives. Within the context of the Mekong River and its watershed, the report addresses climate change impacts, including increased risks of flooding. It also reveals strong linkages among environmental quality, economic growth and social well-being of the nation’s 7 million inhabitants.

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