Laos has launched the second phase of the Reducing Rural Poverty and Malnutrition Project, supported by the World Bank, to improve nutrition and incomes in 25 of the country’s poorest districts. The $37 million project will benefit around 85,000 people by expanding the Helping Hand conditional cash transfer program to 13 additional districts in Savannakhet, Saravanh, and Sekong.

The Ministry of Agriculture and Forestry will manage the project, while the Ministry of Planning and Investment will oversee the Nutrition Convergence program, which coordinates five World Bank-financed projects to reduce stunting in Laos. The program aims to support the National Plan of Action on Nutrition 2021-25.

World Bank Country Manager Alex Kremer emphasized that undernutrition in a child’s first thousand days impacts lifelong development and costs the Lao economy around $200 million annually. Cash transfers are seen as an effective way to alleviate poverty and improve health.

A 2024 World Bank survey revealed that 81 percent of households were affected by inflation, with over 60 percent eating less food. Malnutrition rates remain high, particularly in poorer areas, with stunting affecting about 33 percent of children under five in 2017. The government aims to reduce stunting to 25 percent by 2025.

Initial results show that the first phase of the convergence program has mitigated the negative effects of COVID-19 on child nutrition, improving diet diversity and boosting growth monitoring services.