Lao PDR's graduation from LDC set for 2026

Image:  UN document A/76/L.6/Rev.1

Source:  UN

Back on November 11, 2021, the UN Economic and Social Council's Committee for Development Policy, recommended that the Lao PDR graduate from the least developed country (LDC) category.  This would be seen as an incredible milestone in Laos' development since the country's modern inception in 1975 when it became a republic.

Preparation and review

As part of that recommendation, a 5 year plan (a so-called preparatory period) would be necessary to help for a smooth transition.  

Further to its preparation, the committee would require reviewing the Lao PDR's 2024 Triennial Review (aka Voluntary National Review).

Image: VNR 2024 cover

Source:  Produced by the Lao Government for the UN

This review looked at, among other things, the progress and status of all 18 Sustainable Development Goals (SDGs) clustered around 6 transitions.  Namely, the Trend and Track Analysis of:

1. Food systems
2. Energy access and affordability
3. Digital connectivity
4. Education
5. Jobs and social protection
6. Climate change, biodiversity loss, pollutions

As well, the review has chapters covering Lao PDR's key national and sectoral development frameworks in support of these SDGs.

It's a fascinating read for those interested in Lao development (all links are noted in this post).

 

What graduation involves

Aside from that report, it's important to note that the graduation from LDC revolves around 3 criteria:

• Gross national income (GNI) per capita - which serves as a measure of the overall level of resources available to a country and how well off its citizens are on average.  For reference, the graduation threshold is set at 20% above the 3-year average level of GNI per capita used by the World Bank to designate low-income countries.
• Human Assets Index (HAI) - which is a composite index that includes education and health components.  For example, measuring access to education, literacy rate, school enrolment, access to health care, human capital development, etc.
• Economic and Environmental Vulnerability Index (EVI) - which is a composite index that measures a country's structural vulnerability to economic and environmental shocks.

Almost there

For the record, as of today, Laos is 1 year away from its goal (or deadline, depending on how you look at it).  That special day is November 11, 2026.

- Laoconnection.com