Communist Laos Sets 2020 As Target

[george]

Lao sets 2020 as target

VIENTIANE: -- The communist Laos government said yesterday that Thai-assisted micro-credit schemes would help it achieve its aim of getting rid of poverty by 2020.

The Community Organisation Development Institute (Codi), a public agency under Thailand’s Social Development Ministry, signed a memorandum of understanding with the Lao Women’s Union on Tuesday to provide Bt7.1 million to set up savings groups in five Laos provinces.

The cooperation initiative is the second phase of a two-phase operation, the first part of which ended in October after creating 89 savings groups in Vientiane’s three districts and providing Bt22.8 million to members.

Deputy Prime Minister Thongloun Sisoulith, who oversees the Vientiane government’s economic and development affairs, said the authorities were struggling to beat household poverty in the country’s 46 districts, where the average daily wage is just US$1 (Bt41).

After three decades of revolution to liberate the land-locked country from capitalism, Laos is still gripped in poverty and is considered one of the least developed countries in the world.

Speaking at an international seminar on the establishment of savings groups for poverty reduction, Thongloun said local people could create their own sources of funds for investment and social welfare by grouping together with collective savings.

He said villagers should not wait for the government to release them from poverty, they should try to lift their own living standards.

Grouping together to set up savings and credit groups to accumulate capital and build sources of funds is the least they can do, he said.

Hundreds of people from Laos, Thailand, Cambodia, Vietnam and India attended the seminar yesterday to exchange views on savings and credit groups as well as micro-credit management.

Thailand’s Social Development and Human Security Minister Watthana Muangsook told the seminar that it was the government’s job to provide opportunities for people to access sources of funds, reduce their expenditure and increase income.

He cited the Bangkok government as an example, saying it was successful in its efforts to create village funds for local people so that they have a variety of sources of funds for investment and welfare.

-- The Nation, Vientiane 2005-12-08

[awarrumbungle]

Should this be in news clippings?

How does micro-credit get accepted in a communist country. Micro-credit is based on the principles of entrepreneurism (spelling?) and capitialism. I can see how group borrowing and saving might slot in, but generally speaking it's about borrowing so you can get higher porfits tp pay back then borrow again... and there's capitalism for you.