Lao PDR Hosts National Dialogue on Transforming UN Development Funding through the Funding Compact

Co-hosted by H.E. Madame Phonevanh Outhavong, Vice-Minister of Planning and Investment, and Mr. Bakhodir Burkhanov, United Nations Resident Coordinator in Lao PDR, this high-level dialogue saw the attendance of representatives from the government, development partners, international financial institutions, and UN agencies to discuss how the UN’s global Funding Compact commitments can be implemented at the country level.

As part of the Pact for the Future, the Funding Compact was endorsed at the 2023 SDG Summit to strengthen the quality, flexibility, and predictability of funding for UN development activities. It recognizes that sustainable development requires coordinated, well-funded, and results-driven multilateral support, and it outlines mutual commitments between UN Member States and the UN development system.

"In Lao PDR, we are prioritizing sustainable growth that is inclusive, resilient, and responsive to the evolving needs of our people," said Vice-Minister Phonevanh Outhavong. "This dialogue allows us to deepen our collaboration with the United Nations and ensure that international partnerships are aligned with our national goals, particularly in key sectors such as health, youth, digital transformation, and climate resilience."

Through the Funding Compact, Member States have committed to ensuring more predictable and flexible funding for UN development efforts. This includes increasing contributions to core and unmarked funding, which allows the UN to respond effectively to emerging needs, as well as enhancing support for pooled funding mechanisms that promote collaboration across agencies. Member States have also pledged to strengthen donor coordination and align non-core funding—such as earmarked contributions—more strategically with national priorities. Additionally, sustaining the UN Resident Coordinator system is a key part of ensuring effective, on-the-ground leadership for UN development efforts.

At the same time, the UN development system is strengthening its transparency, efficiency, and accountability to build trust and confidence among Member States. This includes demonstrating the UN’s tangible impact on SDG progress, improving the visibility and recognition of funding contributions, and ensuring greater transparency in financial reporting. The UN is also deepening efforts to streamline operations, improve coordination among agencies, and fully align programs with national development priorities, reinforcing a more strategic and results-oriented multilateral approach.

" The Funding Compact is not just a financial instrument. It is a strategic commitment to coherence, partnership and results," said Mr. Bakhodir Burkhanov, UN Resident Coordinator. "As a global tool that has to be adapted in every single UN programme country, its significance has increased manifold in the current funding crisis."

The dialogue will also feature presentations on Lao PDR’s National Socio-Economic Development Plan, the UN-Lao PDR Cooperation Framework, and regional SDG progress. Additionally, it will showcase ongoing and planned UN joint programs in key areas such as maternal and child health, youth empowerment, social protection, digital transformation, and climate action under Lao PDR’s Nationally Determined Contributions.

With both the UN and the Government committed to operationalizing the Funding Compact’s shared commitments, this dialogue marks a crucial step toward building a more strategic, responsive, and well-funded UN development system in Lao PDR.

For media inquiries, please contact:

Aksonethip Somvorachit, Programme Communications and Advocacy officer at: 

aksonethip.somvorachit@un.org