Opening remarks at Smooth Transition Strategy Dissemination Meeting

Director-General Moukdavanh Sisoulith, Ministry of Foreign Affairs

Distinguished Government representatives,

Representatives from the private sector,

Development partner colleagues,

Ladies and gentlemen –

Since the category was first created in 1971, Laos has been listed amongst the world’s Least Developed Countries. 

Graduating from this group is a long-held national aspiration, coming to be seen as a broad, objective bar against which we can measure national development progress.

Advancing towards that objective has guided efforts for decades, as seen in successive National Socio-Economic Development Plans. And so it is with great anticipation that we approach the moment of graduation.

Much analytical work took place in recent years to assess not only progress against the three core LDC graduation criteria – GNI per capita, the Human Assets Index, and the Economic and Environmental Vulnerability Index – but also a broad range of other considerations, including the likely implications of graduation and the potential to continue development momentum thereafter.

After meeting the graduation criteria in two successive reviews in 2018 and 2021, the formal process of recommending graduation was triggered, ultimately leading to the UN General Assembly resolution setting the graduation date.

In recognition of the particularly challenging circumstances brought about by the COVID-19 pandemic, this date was set for 24 November 2026, after an extended 5-year preparatory period.

That is now less than 2 years away.

Ladies and gentlemen –

We now stand within sight of a key milestone on Lao PDR’s journey towards graduation. And, first and foremost, that should be a moment of pride for the progress that has been made.

• Under-5 mortality rates have fallen from 150 per 1,000 live births in 2000, to 40 now. 
• Adult literacy has improved from 56% to 87%.
• Electricity access has gone from 42% in 2000, to close to 100% now.
• Mean years of schooling has grown from 4.2 years to almost 6 years.

It is because of this progress and other achievements that the county has been assessed as ready to advance beyond the LDC category.

However, this transition requires careful planning, management and consideration of timing.

With graduation, after the corresponding transition periods, Lao PDR will lose eligibility for certain international support measures intended only for the world’s most vulnerable countries.

These relate to preferential access to markets for exports, eligibility for certain streams of concessional finance, and additional practical support for engagement in international forums.

And on top of this, the coming graduation date comes as the country continues to grapple with persistent challenges, perhaps most prominently on the economic and financial front, with important implications for the resources available to dedicate to development priorities. 

And that is precisely why having a clear plan to prepare for – and manage – the graduation process is so important.

The Government, and the Ministry of Foreign Affairs in particular, are to be commended for developing and adopting a whole-of-government plan in the Smooth Transition Strategy. 

I also note that this was reviewed by experts at the UN Committee for Development Policy, who appreciated its clarity and structure, and the attention paid to preparing it through a cross-government process.

But, of course, developing the plan can only ever be the first step. Effective implementation of that plan is what will ultimately determine the success of managing the graduation process.

Given the range of issues that need to be addressed for the smooth, high-quality and sustainable trajectory through and beyond LDC graduation, responsibilities for that implementation fall to many different stakeholders.

That is why our discussion today – for the Government to share the plans in the Smooth Transition Strategy and to hear your feedback – is so essential to successfully managing the transition ahead.

This is fully in line with the commitments set out in the global Doha Programme of Action for LDCs adopted in 2022, which called for not only clear and strategic preparations for graduation, but also for enhanced international support to facilitate a smooth transition.

It also aligns well with ongoing preparations for the fourth global conference on Financing for Development that will take place in Seville, Spain in June 2025, given the emphasis in the Smooth Transition Strategy on macroeconomic stabilization, and mobilizing and allocating resources efficiently.

Distinguished participants –

The recommendation for graduation was based on careful analysis of the evidence of the progress that the country has made, with due consideration to the momentum we have in order to continue development through the transition and beyond.

This is something that is being monitored closely by the UN, with detailed reviews and discussions with Government by the Committee for Development Policy taking place every year throughout the current preparatory period and the transition phase post-graduation, during which eligibility for concessional measures will continue to apply.

On the Prime Minister’s request, the UN will also be conducting further detailed analytical work on graduation implications and readiness over the coming year. This will build on previous analytical work done by DESA, UNCTAD, ITC, and UNDP, as well as the ongoing Technology Needs Assessment being supported by the UN Technology Bank for LDCs.

And, of course, we welcome inputs from all of you, both in our meeting today and during future consultation opportunities throughout the graduation process.

These inputs and reviews will inform any appropriate adjustments to graduation processes and preparations, and international support that may be required.

The steps set out in the Smooth Transition Strategy are fully in line with overarching national development plans and strategies. Taking these actions forward expeditiously can only enhance our national development progress.

Whether you represent a Government agency, a business, or a civil society organization, much of what you do contributes to strengthening this development trajectory and the aspirations to graduate from the LDC status. As ever, it is vital that our efforts are well coordinated and complementary.

With all of this in mind, I sincerely thank you all for taking the time to join our meeting, and look forward to engaging with you not only today, but also over the course of the crucial period leading up to the graduation.

Thank you.