Lao PDR: Sixth National Socio Economic Development Plan - Essay Example

Lao PDR: Sixth National Socio Economic Development Plan (2006 Introduction: The role of women in Laos on participatory development has slowly evolved. The participation of women in various roles in transformation of the Laos society has relatively improved through the past decade, from a typical household worker to a wider role in family decision making the Lao Sixth National Socio Economic Development Plan (2006-2010) has given special emphasis on women's participation. It is interesting to look through the details of the planning issues and policy recommendations, especially in the aspect of "economic growth in relation to social progress, and the role of women in society". Therefore, it is most appropriate to present an overview how Laos has come up of the plan. The Plan states that policy development is based on a situation in which there has already been significant economic growth in the region. Much has been written about the role of women in the general socio economic development of any country, and probably for Lao this role is special taking into account the original background of the national conscience and history; but the aim of this work is to look through the national development plan of Lao in the light of the issues which do exist in this country at present, through the prism of the changing social roles to the achievement of the set goals. There are some important planning issues and policy recommendations which are required for a specific aspect drawn from the NSEDP. 1. GDP has increased by around 6.3 percent per annum, which in itself demonstrates a more rapid growth rate than has been noted in previous years. The problem is to keep the growth rates at the reasonable level which is equal or somewhat slower to the present one. 2. Investment and revenue have also increased, as a result of current government policies, the exchange rate has stabilized and inflation is under control. Foreign investment levels are high; however it is notable that development assistance commitments have also increased. Social development has focused on a number of objectives, including the reduction of poverty, strengthening of national security and the generation of employment opportunities which are problematic at present. 3. Manufacturing and services sectors of the economy have both been strengthened and unemployment reduced: however, the Plan states that there is still too great a concentration of the labor force in agricultural sectors. 4. Agriculture itself is becoming oriented away from subsistence and towards commercial production, with the connection between agriculture and processing industries strengthened. There is an emphasis on the use of modern technologies and the production of high-yield crops. The problem is that it is necessary to pay greater attention to the preservation of forestry. 5. Industry and construction demonstrates significant growth; the Plan makes mining, cement, steel and assembly plant and various hydropower projects the central issues in the development of the country's economy. The problem here is to concentrate on the development of the industries which are connected with construction area and to connect these issues with environmental protection 6. Education and training and human resource development in general, are seen as essential. Health care and social care networks have to be expanded, with a particular focus on expanding resources and facilities into rural areas 7. Public management infrastructures have also been improved.However, the Plan notes that projected targets have not been met in all areas and in some cases progress has been slower than anticipated. There are a number of areas which future planning needs to take into consideration. These include a firm commitment to sustainability, and an understanding, both theoretical and practical, of the way in which economic growth is related to social progress. This includes specific areas such as poverty reduction, welfare provision, reduction of gender inequalities, but also covers areas such as education and training and the development of sustainable environmental and cultural policies. The Plan specifies that progress will not occur until people have a secure environment, coupled with a reduction in social inequalities especially in regard to women. At this point, therefore, we might look at some of the issues surrounding the integration of economic growth with the development of sound social infrastructures, and the possible problems which might be encountered by Laos. The paper is essential in its structure and the abovementioned issues will be discussed in more detail, but the work is also interesting for making a special stress in on the role of the female part of the society in the economic development of Laos; moreover, it is evident, that this role is growing and creates certain impact on the economy, changing its social structure, this is why this aspect of the economic development of Laos can be supposed to be central here. It is supposed that Laos will be going to the aims of better level of equality of women in its society, with making their role in the economic development of the country more important with time. It is important that the realization of the problem's seriousness is actively discussed at present in various literature sources. Thus, with the development plan it is obvious, that the country will support sustainable development in all spheres of economic and social life. Rapid economic growth and the implications for the market In relation to economic growth (especially rapid one) it is essential to understand, that neither too fast nor too slow growth is desirable for the economy, and planning is essential here (Cambell and Feinstein, 2003). Planning is practiced today in all economies and has its roots in different reform movements, with the essential part of planning being a reaction to the squalor of the industrial city. First of all, we have to consider the implications of rapid economic growth as it impacts welfare, especially with regards to national and international markets. As noted previously, Laos is gaining a foothold in the international economy, and this coupled with the increasing level of foreign investment should be seen in the context of its potential for improving welfare standard: more complex interaction than one might assume, since fast economic growth is not always paralleled by an equally rapid development in living standards. This is generally equated to GDP; this is only an adequate means of assessment when there are no trade imbalances, a situation which is unlikely to occur in the real world. If a country were to run the largest trade surplus which it could exporting all of the GDP with zero imports, the inhabitants would have no standard of living, since there would be no goods or services to consume. Using the sum of domestic consumption, government spending and investment (domestic spending, or DS) to indicate national welfare is a more accurate means of assessment. Domestic spending can also include imported goods and services, since these are consumed by domestic citizens and consequently make a difference to their standard of living. The plan of Laos development should pay more attention to the question of the domestic consumption; the reason for this issue being important is in the understanding that being a component of the GDP equation, it directly impacts its level and thus the general economic growth. As it has been said about the role of women in economic growth and development, 'the lack of participation of women in planning and development decisions, however, was less important in determining how urban development affected women' (Campbell and Feinstein, 2003), and though this may seem irrelevant for the present topic, but it is difficult to deny that social development is essential for economic development and thus should be supported as well. Investments It is also necessary to take investment into account; the more resources are directed towards investment, the fewer there are for consumption. A country with a high level of investment may therefore have a lower standard of living than one which does not, which can give a false impression of the overall standard of long-term national welfare. It should be born in mind here that Laos is strongly focused on increasing investment, and that this is essential for strengthening the domestic infrastructures. Thus, domestic consumption and GDP is also influenced by investments, which constitute one more component of the GDP equation. On the contrary, if the country has sizable trade deficits, then the welfare needs of the current consumers may be satisfied through the higher living standards, thus the plan should devote essential part of its direction to this aspect of economy; with the repayment being later than expected, the next generation of consumers becomes its victim and does not have any improvements in the welfare standards. It is notable that current deficits permit a higher level of welfare than one would achieve through balanced trade, and if the future repayment level is not exorbitant, then the reduction in welfare may not be significant. Trade surpluses, on the other hand, mean that the welfare standards of the current generation are reduced. In Laos, the trade strategies have to take into account not only current improvements to overall standard of living; these changes should be sustainable for the next generations. This is particularly important, when one considers the extent to which increased exports form a basic element in long-term economic planning. As Suranovic writes, if a country runs up large deficits which are balanced within a fairly short period of time by large surpluses, then one and the same generation of consumers experiences the impacts of both periods. However, excessive government spending can be carried over so that the burden of lowered consumption impacts on the next generation of consumers, causing what can be referred to as an intergenerational welfare transfer: if one is looking to develop a strong and sustainable economy in Laos, then a significant setback in social welfare in the next generation will clearly have repercussions for the country ability to compete, economically, on aninternational level. The changes in the economic development' path towards greater woman's roles We can next consider the way in which models of development have changed and evolved over the past few decades, and how these past and current perspectives might be applicable to Laos. As Todaro and Smith (2006) point out, the economic growth in the past was always seen as the first priority in a developing nation, whilst other problems as discrimination, unemployment, poverty were seen as secondary. The assumption was that if economic growth could be encouraged, then these issues would either resolve themselves as a result of better economic situation, or could be addressed later. During the 1950s and 1960s, however, it has become evident, that even when poorer countries did contrive to reach their growth targets, this did not necessarily mean that all other problems were automatically resolved: despite acceptable growth rates, people were still living in poverty. The new economic view of development therefore moved away from this strong emphasis on growth alone, and looked instead at the issues from a much broader perspective, one which approached the problem from the standpoint of improving quality of life, rather than just levels of income. Todaro and Smith cite the World Bank as asserting that higher income levels are not sufficient: one also has to look at establishing better health, nutrition, education, employment levels and so on, through making radical changes in social infrastructures. The whole population should be supported and encouraged to move out of a quality of life which is unsatisfactory and towards one which is materially and spiritually more fulfilling. We note that this is addressed in the Development Plan in terms of reducing social inequalities, generating regional governance for regional issues, the expansion of health and social care networks to least developed areas, and so on. This holistic view of development, then, acknowledges that growth in income is not sufficient in itself to improve the quality of people lives, although it is certainly an important factor. One also has to take into account the shortcomings and weaknesses in national infrastructures which contribute to exclusion and poverty, and take steps to remedy these: not only does this improve standards of living per se, but it also counteracts the depression and social malaise which is characteristic of impoverished, excluded populations. Sen (2000) capabilities approach sees income as a tool, rather than as an end in itself, and asserts that what should be assessed is the real worth and value of specific resources and commodities, given the needs of the individual. The size of income is not as important as ensuring that the individual has access to services and commodities which are directly relevant to their lifestyle, and will help them in their personal growth. Possessing the commodities themselves is not: Sen notes that the kind of commodities and services which are appropriate for one population are not necessarily appropriate for another westerners would consider a telephone a necessity, rather than a luxury, for instance. Modern theories of development, then, do not focus solely on economic growth, nor assume that economic growth will automatically lead to improved well-being of the population. It is a more holistic approach, which takes as an a priori the importance of generating self-worth in members of excluded populations, and thereby allowing them to further their material and spiritual growth in a way which is not necessarily directly linked to income levels. In addition, it looks at ways of addressing social inequalities within populations, such as the position of women, and thereby allowing these to be addressed as part of the growth process. The growing role of women in Lao economic approach 'The powerlessness of women contributed to the insensitivity of planning in regard to their needs for day care, transit, and community support. The inadequacy of suburban development in meeting female needs and the isolation of housewives in suburban homes were the target of considerable feminist opprobrium. Saegert (1981) interestingly found that men expressed much greater satisfaction with the suburban manse than women even though it was claimed that it was developed in response to the wishes of women. For men, returning to suburban quietude after a day's work afforded them a haven in a heartless world while for women suburban residence denied access to better jobs and the company of other adults' (Feinstein, 1997) Let us consider how these principles are approached in the Development Plan, taking the position of women in society as a pertinent example of a group liable to suffer from exclusion. The Plan states that reducing poverty cannot be achieved without the active participation of all women, and particularly poor and ethnic minority women and sets out various strategies which might be adopted in order to empower women and encourage their full participation in economic and social development. These include improving women access to basic services, supporting their economic activities, encouraging their participation in local decision-making and generally increas(ing) their involvement and tak(ing) their needs into account when developing policies and plans. Many of the strategies described involve bringing about gradual changes in infrastructures, such as education, training and local governance, in order to address the current gender imbalance in Lao people society. Whilst these aims are sound as broad-scale policies, it is useful to look at the kind of enterprises in which women actively participate in other developing countries, where gender inequality is a problem, in order to consider how these might be of value in regard to increasing political and economic involvement for women in Laos. It is important to bear in mind that the empowerment of women is, again, something which has a significant impact not only on the current generation, but on future ones. In other developing countries, it is notable that women who have access to higher education and training tend to transmit similar expectations to their children, thus generating ongoing social capital in terms of a population which is increasingly well-educated and can demonstrate a wide range of skills and knowledge. This, in turn, is advantageous both from the domestic point of view and with regard to the export of knowledge; something which is essential in a global economy which is becoming increasingly knowledge-based. However, as can be seen from the examples below, it is not simply a matter of allowing women full access to formal education, although this is a major concern; rather, the role played by women in the political and economic life of the country at all levels is emphasized. When considering the issue of what constitutes the just city, then, one must envision a locale that allows diversity within a general framework of universal principles. In previous work I cited Amsterdam as a metropolis that embodies such a combination (Campbell & Feinstein, 2003). One also has to take into account issues of intersectionality: in other words, the different degrees of disadvantage or reduced access which are faced by women from different ethnic, racial or socioeconomic backgrounds. The Plan notes, for instance, that there is a need for much greater inclusion of women from ethnic minority groups, both in terms of full representation of those groups in governance and in order to confirm their value to the community as a whole. Issues in economic development for women participating in it Global Women Strike (2002), commenting on the role of women in Latin American and Caribbean developing nations, asserts, that top down financial policies, especially those involving massive loans from international financial institutions, have had a particularly harsh impact on women in these countries. They state, that the poverty caused by forced commitment to massive loan repayments means that women are disadvantaged from the two sides:. in the first place, they are victims of the generic poverty, which exists in the country, having received little benefits from the loans themselves, and second, the responsibility for supporting families falls primarily to women: mothers are the first to go without food in order to feed their children; women and girls are the ones who walk for hours to fetch water, wood and other necessities (Global Women Strike, 2002). Clearly, this is a situation which is applicable to all developing countries, such as Laos, where the dependence on external development aid is irreplaceable, and where women in poorer rural communities are already disadvantaged. Gabriel (1990) points out, that a major stumbling block is the fact that the requirements of financial institutions make it almost impossible for low income groups to get loans, and this is particularly so in the case of women. Financial institutions, except for credit unions, charge high repayment rates and require considerable collateral: credit unions are in urban areas and therefore are not accessible at all to rural women. Gabriel also points out that applications to financial institutions by women also require a man signature to be approved, whereas public development corporations make loans only to large, established businesses. Esquivel, in a speech made in 1996, emphasizes the importance of this kind of grassroots entrepreneurism, especially where women in rural areas are concerned. He comments that in the past, there have been a series of habitual top down approaches and social welfare type projects (Esquivel, 1996) which have created a vicious circle of dependency especially in rural areas, and tended to discourage self-sufficiency and autonomy. The answer is not, he says, to continue with the social welfare model but to provide opportunities so that entrepreneurship and self-reliance are generated at the grassroots level especially where marginalized groups such as women are concerned. Whilst some of the incentive must come from the individuals and groups themselves, he also states that in order to respond the needs of small producers, it is necessary to reorganize our systems for land distribution to incorporate research, education and extension programs (Esquivel, 1996). The more concerning issue is the growing feminization of poverty, and this issue is not addressed in the plan at all. 'Planners concerned with inner city redevelopment and combating poverty tended to overlook the fact that women with children constituted the great majority of the poor (Leavitt and Saegert 1990). Public concern with low-income areas sprang from a fear of unruly male adolescents, and dealing with their threat was central to the programs developed for the inner city.' (Feinstein, 1997) The revolving loan fund which was established by the Belize Rural Women Association (BRWA) addressed these issues by providing financial resources to members for the purpose of purchasing means of production and related services necessary to the development of income generating cooperatives (Gabriel, 1990), such cooperatives to be under the complete control of the rural women who worked in them. Whilst the members of the group were encouraged to use barter wherever possible, the scheme meant that money was available if that was all that was needed for success (Gabriel, 1990). Since dues paid by members were not sufficient to provide the kick start for the scheme, this was addressed through initial funding from the UN. The aim, however, was that the revolving loan fund would then become self-sufficient. The important factor here is that the women were not required to wait for lengthy improvements in national infrastructures to trickle down to them, but were able to make use of their existing skills and knowledge in an economically significant way: something which is particularly relevant to Laos, since it permits economic and social advancement which is not solely dependent on broad-scale, long term national policies. Recommendations Future policy strategies in Laos, then, need to take into account the importance of grassroots activism, and the role of NGOs in the civil sphere, as well as considering broad-scale policies for increasing equality and promoting social welfare. Whilst there is provision in the Development Plan for local and regional initiatives, as well as the kind of top down policies which Esquivel mentions, it is important to emphasize that women should be able to actively contribute to political and economic growth on all levels; simply increasing access to resources is unlikely to be sufficient on its own. In addition, although the rate of economic growth in Laos is admirable, it is now recognized that economic growth does not automatically lead to improved standards of living for the population as a whole, nor does it invariably provide a more effective social welfare structure. The example offered by Belize is a particularly appropriate one, since it gives women direct participation in the economy and thus in local governance; in addition, women from all ethnic groups have equal opportunity to market their existing skills and knowledge, thus reducing exclusion on ethnic grounds. The entrepreneurial model described is also self-sustaining, since it does not require constant external financial input, which again leads to greater empowerment and autonomy of women. In areas where the traditional role of women has been confined to the domestic sphere, or the lower echelons of the labor force, grassroots entrepreneurial projects offer both freedom of choice and the opportunity for socioeconomic advancement. Such enterprises can be effectively combined with national policies designed to improve educational and training opportunities for women, thus integrating local and national policy objectives. In addition, greater economic and political participation by women furthers self-help and reconstruction of disadvantaged communities, thereby supporting development initiatives at a local level. In addition, as mentioned previously, the benefits of such increased opportunities are not confined to a single generation, and will lead to a long-term positive impact on the strength of social capital in the community as a whole. References: Campbell, Scott and Susan Fainstein eds. (2003) Reading in planning Theory:2nd edition. Oxford, UK: Blackwell Publishing Committee for Planning and Investment. Lao PDR: Sixth National Socio Economic Development Plan (2006-2010). Vientiane, January 2006. http://www.unlao.org/Linksnov04/LaoNSEDPVIDraftFinal.pdf Accessed: 1 February 2007 Belize Development Trust. (1999) Report: two best grassroots community development programs in Belize. Accessed: 7 Feb 2007 fromhttp://www.ambergriscaye.com/BzLibrary/trust63.html Esquivel M. (1996) Speech to World Food Summit. Accessed: 7 Feb 2007 from http://www.fao.org/documents/show_cdr.aspurl_file=/docrep/003/x0736m/rep2/belize.htm Feinstein, S. (1997). City planning and political values. In: Readings in Planning Theory. Oxford: Blackwell. Gabriel S. (1990) Belize Rural Women's Association Revolving Loan Fund & Women's Cooperatives. Accessed: 7 Feb 2007 from http://www.mtholyoke.edu/courses/sgabriel/brwa.htm Global Women’s Strike. (2002) Statement from Latin American and Caribbean women. Accessed: 7 Feb 2007 from http://www.globalwomenstrike.net/English/LatAmStatement.htm Sen, A (2000) Development as Freedom. Anchor. Suranovic, S. (2004) National welfare effects of trade imbalances. http://internationalecon.com/v1.0/Finance/ch6/6c010.html Accessed: 7 Feb 2007 Todaro, M.P. and Smith, S.C. (2006) Economic Development 9th edition, Pearson, Addison&Wesley. Read More