Public Disclosure Authorized LAO nDEVELOPMENTdocuments.worldbank.org/curated/en/945181468272102947/... · 2016-07-11 · riM3'D åse.uûírd:.nn-ni, 2-.zjj cc2-: Rniuannuuluri9u...

LAO nDEVELOPMENTREPORT 2014

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Expanding ProductiveEmploymnent forBroad-Based Growth

SUMMARY

WORLD BANK GROUP

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As greater diversification generates more productive employment opportu-nities, it will be critical to ensure that the Lao workforce is equipped with theknowledge and skills to be able to take up these jobs. Greater priority should

be placed on cultivating a workforce that possesses the basic foundational skillsneeded to be productive. Resources need to be focused more effectively on the

critical windows of opportunity when skills are built by:

* Expanding and strengthening early childhood development and education to helpdevelop school readiness skills and basic cognitive and behavioral skills, whichalso includes efforts to reduce chronic malnutrition which threatens cognitivedevelopment;* Ensuring that all children can read by the end of gradeZ2 making read ing a nationalobsession so Lao PDR can build a skilled and productive workforce; and* Building job-relevant technicalskills, with the Government taking on a more strate-

gic role in vocational skills development by developing policies, setting standards,investing in training materials and instructors, improving public information about

the training system, and carrying out training evaluations.

In the process of planning specific reforms in these areas, it will be critical for

policies to be grounded in better information. For example, policies affectingthe workforce should be based on a complete and accurate picture of labor market

dynamics-what is happening, who is affected, what the implications of potential

policies might be. However, crucial information on sectoral employment, migra-tion, and other labor market indicators are lacking. Instruments such as a laborforce survey could help provide essential information for policymakers to under-stand the key challenges and design appropriate solutions. Further work is alsoneeded to understand the array of factors affecting the workforce-related chal-lenges discussed above, including determining why manufacturing wages havebeen rising faster than labor productivity and identifying other barriers to workemobility between jobs and sectors.

MAKING AGRICULTURELA MORE PRODUCTIVEIn agriculture, Lao workers are producing fewer per hour than they would if they were working in anothersector. They are also more likely to be vulnerable and poor.

Restrictivetrade policy

Agriculture makes up 27%of the GDP.

O of the population Low61%o are farmers. quality seeds

Most mills have small and 00obsolete equipment. of families Limited farm

radvisory services

2,500,000

qInadequate

irrigation and water,500,000 draining systems

1,000,000

500,000 Po ci

0Agriculture Construction & Manufacturing Power & mining

Services

A better way ofImproing poductvitylife for f armers.

needed intefomfnthe can me on*

to.btte-payng. obs

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WORLD BANK GROUP

The World Bank Lao PDRPatouxay Nehru RoadP.0 Box: 345Vientiane, Lao PDRTel: (856-21) 266 200Fax: (856-2 1) 266 299Website: www.worldbank.org/lao