[{"bbox": [98, 152, 1135, 313], "category": "Text", "text": "overarching MIP objective to strengthen EU's trade and investment, especially in green sectors, and to supporting youth job creation. The TVET and TA complementary support, as well as consolidated policy dialogue on education planning/budgeting with key stakeholders, will integrate coherently with the budget support indicators for mutual reinforcement, in a context of limited available financial resources and of a ceiling in the number of education staff (teaching and non-teaching) due to the \"right-sizing\" policy, which calls for increased spending efficiency."}, {"bbox": [85, 432, 323, 466], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 499, 234, 526], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [95, 544, 1135, 891], "category": "Text", "text": "Laos' **rapid economic growth** over the last three decades (annual average of over 7%) propelled the country from a low-income to a lower middle-income status, and it is expected to **graduate from Least Developed Countries status in 2026**. Laos' GDP per capita of 2,570 US$ in 2019 (according to the WB) is more than ten times the figure in 1990, and the poverty rate more than halved between 1993 and 2019, falling from 46% to 18%. The strong growth potential, rich natural resources, the establishment of several Special Economic Zones, and recent massive infrastructure investments to improve its trade links with the ASEAN, China and beyond, opens **important opportunities for private investment and decent job creation**. Improving the business environment and continued investment in infrastructure and logistics will be key for unleashing this high potential, while ensuring environment, social and governance (ESG) responsible business approaches, bearing in mind the do-not harm principle. EU trade with Laos is very modest in comparison to our trade with neighbouring ASEAN countries (EU Member States together represent the 4th largest trading partner to Laos). According to the International Trade Centre (ITC), and considering **European partners' interest to increase trade and investment with Laos**, there is significant potential for an inclusive growth."}, {"bbox": [95, 915, 1135, 1261], "category": "Text", "text": "Rapidly rising debt and the COVID-19 pandemic are creating important **macroeconomic and fiscal challenges**, which require more efficient public finance management. Although Lao PDR managed to avoid the spread of the COVID-19 pandemic in 2020, its economy was severely impacted (estimated GDP growth of only 0.5% in 2020 and 2% in 2021). The surge in cases in mid-2021 (up to about 35 000 in October 2021) and the strict lockdown measures are having a direct impact on Lao PDR's socio-economic development. In addition, the growth model based on the unsustainable exploitation of Laos' abundant natural resources has put a strain on environmental, social and economic sustainability, and has widened inequalities. **Skills shortages** and poor matching of labour demand and supply as well as low rates of enrolment among women and girls in vocational schools also represent a significant impediment to private sector development (PSD) and inclusive growth. **Youth unemployment** increased. The situation has worsened due to the strict lockdown measures and closure of many schools (since April 2021 until recently with school reopening progressively) as a response to the COVID-19 outbreak. This requires significant continued investment in improving access, quality and relevance of education and vocational training."}, {"bbox": [95, 1285, 1135, 1501], "category": "Text", "text": "The Government has embarked in the 9th **National Socio-Economic Development Plan (NSEDP) 2021-2025**, which has fully embraced the Agenda 2030, and seeks to foster **sustainable, green and inclusive growth**. The overall objective of the 9th NSEDP is \"to focus on the socio-economic development based on the country full potentials in order to strongly graduate from the Least Development Countries (LDC) with quality, well-balanced and green growth and to achieve the sustainable development goals in 2030\" focusing on six main pillars including Sustainable and Diverse Economy, Human Asset Development, Livelihood Improvement, Environment Protection; Climate resilience and Governance. The NSEDP places special emphasis on the development of the private sector and human capital, as a foundation for job creation and inclusive growth."}, {"bbox": [95, 1525, 1135, 1633], "category": "Text", "text": "The **Education and Sports Sector Development Plan** (ESSDP 2021-2025) adopted in August 2020 aims at **achieving progress towards poverty reduction** through improving access to quality early childhood and basic education for rural and vulnerable children, with the underlying need to reduce the education gaps among rural and urban schools and to enhance student learning performances. Additionally, the ESSDP has progressively"}, {"bbox": [1037, 1680, 1144, 1706], "category": "Page-footer", "text": "Page 5 of 35"}]