This Monitor builds on the experiencesof other Country Environment Monitors in the region andembraces the key principles articulated by the framework forpreparing Country Environmental Analysis initiatives of theAsian Development Bank and the World Bank. The Monitor hasthree sections. Section 1 reviews trends in naturalresources and environmental quality, along with theirlinkages to poverty. The capacity of Governmentinstitutions, policies, legislation and instruments areassessed in Section 2. The environmental challengesconfronting the country are analyzed in Section 3.Information has been obtained from a variety of sources,including the Lao Government and Bank publications, academicand scholarly material and personal experience. Severalsurveys and assessments were undertaken to obtain additionaldata and insights: (i) A Capacity Assessment was undertakento assess the effectiveness of the country'sinstitutions regulatory framework; (ii) Public EnvironmentalExpenditures were reviewed to better understand theallocation and trends in environment-related expenditures;(iii) A Survey of Environmental Attitudes was undertaken toassess the perceptions of individuals working inenvironmental professions in Lao PDR; and (iv) thePoverty-Environment Nexus in Lao PDR was further studied.The results of these surveys and analyses are included inthe report.