ADB loan supports educational reforms to improve employability of Lao PDR's youth

The Asian Development Bank (ADB) has approved a $50 million financing package to support the Lao People’s Democratic Republic’s (Lao PDR) ongoing efforts to raise enrolment levels and improve the quality of secondary education, and align post-primary education (secondary education, technical vocational education and training (TVET), and higher education) to the changing needs of the labor market to improve youth employability.

ADB’s assistance, comprising a $10 million policy-based loan (PBL) and a $40 million project loan, will help the Lao PDR develop its human capital and reap the benefits of a demographic dominated by youth and working-age people. Over time, it will also help the country transition from a low-skilled, agriculture-based economy to a high-skilled one driven by the industry and services sectors.

“The Lao PDR has high growth potential if it’s able to equip its graduates and relatively young labor force with the necessary education and skills needed by employers,” said ADB Principal Social Sector Specialist for Southeast Asia Mr. Shamit Chakravarti. “ADB’s assistance will help the Government of the Lao PDR lay down the necessary steps in terms of policy reforms and investment support so that the education system can impart learning and skills to graduates in an effective and sustainable way.”

The $10 million PBL for the Education for Employment Sector Development Program supported policy reforms to strengthen the links between post-primary education and labor demand; raise block grants per student in secondary schools and TVET institutes; improve the quality of the secondary education curricula, learning material, and assessment standards; and ensure that the Ministry of Education and Sports targets its budget to underserved areas and disadvantaged groups to improve quality of schools.

The $40 million project loan component will help to operationalize and build on the policy reforms supported by the PBL. In 12 disadvantaged districts with a significant presence of ethnic populations and high secondary school dropout rates, 60 schools will be upgraded and provided additional classrooms, laboratories, libraries, and sex-segregated dormitories and water and sanitation facilities to raise enrolment and completion rates. Education technology and digital learning will be used to improve the quality of teacher training and facilitate learner-centered pedagogy. Partnerships will be facilitated between secondary schools, TVET institutes, and centers for non-formal education to allow secondary school students to undertake internships during vacations to make them “job ready”.

Original source: ADB
Published on 25 September 2019