This is a very welcome development in Laos.

Vientiane Times, 13 Nov 2009

Individuals who want to set up a non-profit organisation can now apply for a licence through the Public Administration and Civil Servant Authority. State Administration Development Department Deputy Director General, Mr Ampha Simmasone, confirmed this week the department was ready to accept application forms from people wanting to set up an association in Laos.

“We have been accepting application forms since October 20,” he told Vientiane Times on Tuesday, adding that a special unit has been opened to deal with the applications.

He said the unit had received about five applications so far. He was unable to say when the department would grant the first licence. Individuals who want to set up an association in a provincial area can apply for a licence from provincial authorities, he said.

Applicants must also submit a letter of approval from the relevant sector. For example, an association that would deal with gender equality must get permission from the Lao Women’s Union .

The government promulgated a Prime Minister’s Decree on Associations earlier this year, so people could set up an association in accordance with the Lao Constitution, which gives citizens the right to assemble and to establish associations.

The government hopes such associations will help to run non-profit activities aimed at helping poor people to develop better living standards. Through the Prime Minister’s Decree on Associations, the government hopes to pass on some of its public duties to local associations. Officials explained this was common practice in other countries, and it was the primary role of the government to formulate policies, put them into practice and monitor their enforcement.

Social organisations would do a better job of running development projects than state agencies because they were policy enforcers, not policy makers. Such organisations would also be more professional because they would be set up to carry out specific projects, officials
said.

International organisations in Laos welcomed the move by the government to provide opportunities for local-level social groups to shoulder greater responsibility for social development. At present, only international non-government organisations are allowed to operate
in Laos.

Many international donors have said they would provide funding for local associations to run development projects if they meet international working standards.

A number of groups want to set up non-profit projects to help government development efforts in rural communities. But until now such bodies had no legal identity as there was no law approving their establishment.

Some of the groups are attached to state agencies while others operate under the auspices of international organisations.