The Lao PDR Public Expenditure and Institutional Review and Financial Management in Education Analysis 2023 assesses funding of the education sector in Laos and looks at why gaps in enrolment, poor education outcomes, and limited job prospects for graduates persist. It outlines how the country can restore adequate funding for education, while improving the allocation and use of available resources.
In May 2023, at the Lao PDR Human Capital Summit, the government committed to improving the quality of basic education, enrolling all children and keeping them in school, and improving education financing. At present, the Lao education sector faces significant challenges. While access to education improved over much of the past decade substantial gaps remain, and previous progress has been undermined by the impacts of COVID-19 and ongoing economic difficulties.
Education quality was already poor before these shocks. The sector is severely underfunded due to a steep decline in allocated public resources. Lao children lag behind those in neighboring countries in math, reading, and writing. Many fail to enroll in secondary school or drop out early. In addition, limited job prospects for graduates reduce demand for quality education.
