What do Lao experts think about Australia’s development program? To find out, the Lab spoke to 40+ top development and foreign policy experts. Here’s what we found.
A short guide to the Pulse Check x Laos for policymakers
There are a number of big disruptions underway, and these will drastically affect development in every country.
You have 100 points. Allocate your points according to which of the below disruptions are most critical to address in your country.
Things like: the impact on livelihoods, infrastructure and people’s quality of life as the climate changes, the global push to reach net zero and beyond, biodiversity health and resource usage, disaster resilience
Things like: competing powers and their impact on things like trade and economic growth.
Things like: the rapidly growing digital and data economy, and the rise of artificial intelligence and advanced autonomous systems.
Things like: shifting demographics across age, education and healthcare, and rising inequality, gender equality, disability inclusion.
Things like: rapidly changing markets, trade conditions, stability and resilience to shocks, changing job opportunities and emerging industries.
Things like: shifting international norms and state structures, effective functions of the state, and disruptions to the international rules based order.
Things like: global stability and instability, internal conflict, humanitarian crises, external interference, maritime disputes.
Pulse Check participants name climate change as the greatest emerging disruption Laos faces today. Many participants’ greatest concerns lay in the belief that there is insufficient action taken by the state to tackle the misuse of natural resources, illegal logging, poor water management, intensively extractive industries such as mining, and soil erosion caused by over-farming. Participants are concerned that these activities increase the occurrence of unpredictable weather patterns and water flows, which in turn threaten Laos’ agricultural and hydropower industries. Some also note that the infrastructural interventions required by Laos’ hydropower industry significantly threaten the Mekong River’s tributaries and disrupt processes essential for crop production.
Given Laos’ economic reliance on the agriculture, hydropower and mining sectors, many participants pointed out the inextricable link between the impacts of climate change and the economic stability of their country as well as, in turn, the consequences for the climate brought by these sectors.
Participants see shifting economic dimensions as the second most disruptive emerging trend facing Laos currently, with most citing the depreciation of the Kip, the erosion of stability caused by soaring inflation and the country’s dependence on primary revenue sources, such as energy, mineral and agricultural exports, leaving the economy sensitive to global trade fluctuations and amplifying uncertainty. Some note that the country’s heavy reliance on imported goods and services to meet basic consumption needs exacerbates this issue, making Laos’ market more susceptible to external price changes and supply disruptions. Others focus more on the workforce, concerned that, with limited emerging industries and job opportunities in Laos, young workers are increasingly seeking opportunities in neighbouring countries, such as Thailand, further complicating Laos’ ability to adapt to shifting economic demands.
When it came to geopolitical tensions, Lao participants were most concerned with their country’s vulnerability as a landlocked state, especially due to its dependence on neighbouring countries for trade and transit and its proximity to larger regional players. Some participants spoke about how acutely sensitive the Lao economy is to global geopolitical conflict, most notably the ongoing war in Ukraine and its impact on global commodity prices. Others commented again on the country’s economic dependence on regional players, such as Thailand, Vietnam and the People’s Republic of China (PRC), and how this leaves the country more susceptible to its neighbours’ interests and influences. While some noted that this dependency has fostered opportunities for economic growth through foreign investment, they remain concerned with the challenges of unsustainable debt and poor management of regionally shared resources, such as the Mekong River.
Some participants also believe that development partners’ priorities in Laos are increasingly motivated by geopolitical competition. Given Laos’ reliance on ODA, these participants’ concerns lie in the possible erosion of the effectiveness of programs aimed at tackling some of the most intractable social and economic development challenges their country faces, because development partners to be making programming choices that give primacy to geopolitical outcomes rather than developmental ones.
We know that to achieve social and economic development, an effective and accountable state is critical - and this is something that Australia is committed to working with partners on.
You have 100 points. Allocate your points according to where you would focus efforts to enhance social and economic development in your country, using the State Effectiveness Framework.
For example, commercial policy, private sector development, intervention by the state when the market experiences failure or crisis.
For example, a balanced security environment, when police, military and other security institutions are bound by the law and guidelines.
For example, public utilities - including water, electricity and roads.
For example, strong adherence to both formal and informal rules, high levels of predictability and stability of the enforcement of rules, and governance arrangements.
For example, investment in the citizens of a state through education and public health.
For example, strong and transparent forms of public financial management, effective public borrowing, and fiscal management.
For example, addressing barriers to equal opportunities through citizens rights which cut across gender, race, ethnicity, religion, class and location.
For example, state assets (including natural resources [water, land, the environment, extractives] and other intangible benefits [licenses and permits]).
For example, preparedness for disasters, state resiliency against crises such as drought, famine, and catastrophic weather.
For example, public sector management, uniform rules and guidelines, strong reforms to prevent corruption.
Though closely followed by governance and infrastructure, when asked to prioritise the most crucial state function for development in Laos, experts said human capital. These participants emphasised again and again how fundamental investments in health, education and skills are for long-term, sustained social and economic progress.
By and large, participants were most concerned with making better investments in the country’s labour force. Many spoke to the importance of strengthening Laos’ workforce in sectors such as energy, agriculture and mining. Some suggest that the current lack of technical expertise in the country limits its ability to fully utilise these key sectors for economic growth. Others advocated for targeted capacity building in agriculture, noting that modernised and sustainable farming practices could help overcome obstacles related to climate change while also boosting productivity.
Following human capital, Pulse Check participants regard governance as the next most critical state function for Laos’ development. Many express a desire to see far greater action taken by the state to tackle corruption, seeing this as the root cause of a plethora of other challenges, including poor infrastructure development and inefficient resource allocation. Others focus more on what they regard as weak law enforcement and inconsistent applications of the law, which undermines foreign investor confidence in the nation’s judicial system. They argue that strengthening law enforcement institutions and improving judicial transparency are crucial for maintaining social stability, ensuring equitable economic opportunities and attracting investment.
This cohort of experts also sees public financial management reforms as critical, with many calling for greater transparency around government revenues and spending to restore public trust and ensure more responsible use of resources.
According to Pulse Check experts, the third most crucial function for an effective state in Laos is infrastructure. Participants stressed that poor infrastructure—particularly in transportation (roads and bridges), communication networks and public utilities, such as water and electricity—hampers trade, market access and access to essential services. Many point out that improving infrastructure is critical for unlocking Laos’ potential in sectors such as agriculture and tourism, which heavily depend on reliable transportation and communication systems. Some argue that poor road conditions,especially during the rainy season, limit market access and hinder the export of agricultural products. Many hope to see increased investment in sustainable infrastructure that would better link Laos to national and surrounding regional markets.
Australia's new development policy wants to foster connection between your country and ours. How is this best done within development?
You have 100 points. Allocate your points according to where you think efforts are best placed to bring our countries together through development cooperation.
Support from Australia to back your country's aspirations on things like gender equality, health assistance, rural development and education.
Support from Australia to back your country's aspirations on things like trade, market growth, regulatory reform, small-to-medium enterprise (SME) development and development finance.
Support from Australia to back your country's aspirations on things like peace and security, effective governance, food security, digital and cyber security, law and justice.
Support from Australia to back your country's aspirations on things like remittances, labour mobility, job creation, social and economic policy reform.
Support from Australia to back your country's aspirations on things like scholarships, policy dialogue, cultural exchange and institutional partnerships.
Support from Australia to back your country's aspirations on things like climate adaptation and mitigation, global health crises, transnational crime, joint cooperation in regional and multilateral fora, unregulated migration flows and major demographic changes.
Participants see a number of attractive pathways for bringing Laos and Australia together through development, the foremost of which is through knowledge sharing. Some nod to the existing Australia Awards Scholarships program as one example of where this already takes place. A few commented that Australia’s offers were competitive with those from neighbours, such as the PRC and Vietnam, and should remain so.
Beyond scholarships, others go on to highlight the opportunity to have more structured policy dialogue and institutional partnerships for development. These experts would welcome Australia playing a greater role in facilitating knowledge exchange in priority areas, such as natural resource management, infrastructure financing and governance, and economic policy reform. To some, this option is most attractive for its potential to include universities and other development actors (including other development partners, the private sector and civil society) in Laos. This is seen as an opportunity to promote the sharing of local knowledge while also advancing international best practices.
Alongside connecting through knowledge sharing, Lao participants consider one of the best pathways for connecting with Australia to be through social capital—through investment in shared aspirations that strengthen social development, health and wellbeing.
Consistent with responses to other Pulse Check questions, many participants emphasise their desire to see Australia continue to explore new avenues for connecting through education and skills development. Some see opportunity for broadening educational support to extend to vocational training and skill development, including in non-agricultural trades, that cater to both rural and urban youth. This focus on skills development is seen as crucial for addressing employment challenges and accommodating emerging economic disruptions.
A desire to see Australian efforts ramped up across more rural provinces is a recurrent theme, with experts advocating for support to improve infrastructure, agricultural productivity and food security.
Gender equality and health were also highlighted as priority areas, with participants concerned about limited access to healthcare in rural regions and ongoing gender disparities in education, employment and health outcomes.
Pulse Check participants see opportunities for Australia and Laos to better connect for investment and livelihoods in pursuit of more foreign direct investment, better SME development and more labour mobility opportunities.
Lao experts highlight the critical role of diverse foreign investments in driving economic growth in Laos. Some suggest that Australia’s support in increasing foreign direct investment in Laos could help enhance access to the export market by developing better logistics networks, financing infrastructure projects and supporting local producers to meet international standards.
SME development was repeatedly mentioned by this cohort as another critical area of focus because of its vital role in job creation in Laos. Experts note that fostering SMEs could lead to more sustainable economic development. According to some, Australia could play a role in providing expertise on regulatory reform and financial mechanisms to help SMEs grow, contributing employment and economic diversification.
Australia works with your country through development cooperation in a variety of ways. What would you like to see here?
Australia's bilateral ODA allocation to Laos for FY 2023-2024 is $47.7 million. You have 100 points. How would you re-allocate Australia's bilateral funding to Cambodia across these categories using your 100 points?
Including policy and research to support economic growth, emerging industries and job markets, banking and financial services.
Including transport and storage, larger water, communications.
Including agriculture, fisheries and forestry, industry and mining and mineral resources.
Including policy and enabling markets.
Including governance programming, policy reforms, civil society strengthening, social protection measure and infrastructure.
Including support for feminist organisations and movements, support for disability organisations and services.
Including basic, secondary and higher education and scholarships.
Including basic health, infrastructure and basic water and sanitation.
Including climate mitigation and adaptation, energy infrastructure, environmental protection and management.
Including emergency response, disaster prevention and preparedness .
Pulse Check participants emphasise a desire to see Australia direct the greatest proportion of its bilateral ODA to Laos to the education sector. Beyond scholarships and basic education (already key areas of support from Australia), some Lao experts invite Australia to broaden its engagement to secondary and higher education.
Where basic education is concerned, participants want to see more sustained efforts to enhance access for rural and marginalised communities, where access to quality and inclusive education is often limited due to geographic, financial or social barriers, especially for girls, women and people with disabilities.
With a particular eye to broadening both education and employment opportunities for Lao youth, some participants also suggest that improved technical and vocational education is needed to better align skills development with future labour market demands and to equip young people with the skills necessary for secure livelihoods.
Pulse Check experts want to see Australia’s development assistance ramp up its efforts in areas such as climate adaptation, mitigation and resilience, especially in the agriculture sector. Participants spoke repeatedly about the agricultural sector’s vulnerability to climate-induced disruptions, such as droughts and floods. Some see untapped opportunity for leveraging Australia’s expertise in climate-resilient agricultural practices and suggest it could be instrumental in modernising this sector, especially through community-level adaptation programs. Assistance in areas such as diversification of crops, improving land and water management and providing training in sustainable farming practices, such as conservation farming, efficient water use and integrated pest management, were most attractive.
Beyond agricultural support, participants emphasise the potential for Australia to assist in leveraging investments in non-hydro renewable energy projects in Laos. Investments in solar, hydroelectric and other sustainable energy sources would help Laos reduce its dependence on traditional energy, lower greenhouse gas emissions, enhance energy security and align with broader environmental sustainability goals.
Participants emphasise the essential role of economic services in fostering Laos’ growth and resilience, and some suggest that this is a space in which Australia’s development program could play a larger role. For some, this looks like focusing greater efforts on trade capacity to expand Lao export capabilities and create jobs. Others see opportunities in working on SME development—particularly for Lao youth and marginalised groups—offering business development services and access to finance to scale up businesses and foster entrepreneurship.
Noting the growing importance of the digital economy, some participants also suggest that tapping Australia’s expertise in digital trade and e-commerce could help Laos develop its digital infrastructure, promote economic modernisation, develop new revenue streams and diversify beyond traditional sectors, such as agriculture and mining.
Alongside what is included in Australia's development cooperation with your country, we're interested in your views on how Australia delivers assistance.
You have 100 points. Allocate your points according to where you think Australia should focus to become a great development partner to your country.
Working in selective sectors where Australia can best assist your country, and doing it well. Perhaps operating in a less visible way, and much more impact-oriented.
Working at the forefront of development challenges and working with partners to get ahead of big, new challenges to development. Developing specific capabilities in response to development disruptions decades ahead.
Working with partners to leverage Australian expertise, and knowledge, and working with your country's knowledge ecosystem to solve the most difficult development challenges.
Connected to your communities, not just your Government. Australia as a whole-of-nation partner that connects across different levels: for example universities, businesses, and organisations. Squarely focused on delivering development outcomes for people and communities.
Working to back Australia's development partner's aspirations through things like ASEAN, multilateral arenas, and through bilateral arrangements.
More than any other model, Lao participants want Australia to be a People Partner—one focused on building deep and inclusive connections across communities, going beyond traditional government-to-government engagement and increasingly extending Australian partnerships beyond Vientiane. To them, such a partnership model would better ensure that development initiatives are aligned with the needs and priorities of local communities. These participants emphasise that engaging directly with diverse stakeholders, such as universities, businesses and civil society organisations, will allow Australia to address development challenges more holistically. If done well, some hope that embodying this partnership model would also foster a stronger sense of ownership of development activities among local communities.
Second to being a People Partner, participants want Australia to partner with Laos as a Technical Expert—one who can better leverage Australian expertise and knowledge to solve the most difficult development challenges. Lao experts see the opportunity to leverage Australia’s technical expertise in areas such as energy, mining and agriculture. By bringing in niche expertise to these sectors, some believe Australia can play a small role in supporting Laos to enhance productivity and overall economic resilience. Importantly, one expert stressed that Australian efforts should be complementary to existing efforts carried out by other development partners.
