Microfinance & Sustainable Livelihood in Lao PDR (Technical Review Mission)

This paper discusses the findings of the "Technical Review Mission" that assessed the progress of the 'Microfinance and Sustainable Livelihood' project in Lao PDR. The project was designed to enhance the national capacity in Laos to provide the poor with sustainable access to financial services.

The authors state that:

• The purpose of the technical review mission was to:
  • Analyze the present status of the project and the experiences gained so far;
  • Recommend a future strategy in line with project objectives.
• The mission made recommendations for the Microfinance Task Force at the national level;
• The mission also made recommendations for the Microfinance Training Center (MTC), which provided training to practitioners in the field of microfinance;
• The mission observed how the project helped in the establishment of five "accredited agents", who demonstrated the operational capacity to meet the demand for this service amongst the poor at the provincial level;
• The mission observed the government's commitment towards creating an enabling environment for microfinance, at the national and provincial levels;
• The mission recommends that the United Nations Capital Development Fund (UNCDF) and the United Nations Development Program (UNDP) continue to support the project, provided that it worked towards the establishment of a national microfinance institution (MFI).

In conclusion, the authors state that the support from the government would result in the establishment of the first national MFI in Lao PDR. The mission recommends that a feasibility study be conducted to validate the consensus of its proposed strategy.