Lao PDR is a country of extreme diversity, which not only expresses itself in the rich and various ecosystems, but also in its human context. However, it is predominantly a rural society. The large majority of the population lives in the rural areas and depends on agriculture and the use of natural resources for its survival.

As this report demonstrates, the development situation in rural areas is significantly worse than in urban areas. This report focuses attention not only on action in the policy arena and development activities, but for reflection on our understanding of development processes and the impact of our actions as well.

This report also examines a number of facets of human development in Lao PDR, notably; rural development; the country’s ethnic diversity; the livelihoods of rural people; decentralization; and the management of rural development for poverty reduction. It presents a large variety of lessons learnt both for the government and international agencies.