Lao PDR is at a point on its developmenttrajectory where strategic attention to administrativeperformance is crucial. An efficient and high-performingcivil service, with the compensation and human resourcemanagement systems to attract and motivate qualifiedpersonnel, will be essential to Lao PDR's developmentefforts. The ministerial-level Public Administration andCivil Service Authority (PACSA) is currently spearheadingthe drafting of a comprehensive new civil service managementstrategy that will be implemented over the period 2010-2020,with a number of important reforms to strengthen the civilservice anticipated to take place within the next fiveyears. Key objectives include improvements in human resourcepolicies and planning, salary reform, and enhancedperformance management. In order to present as comprehensivea picture as possible of the Lao civil service pay andcompensation system, and its strengths and challenges, thisreport comprises four chapters. The first characterizes theLao civil service in perspective. The second examines howcivil servants are compensated. The third assesses whetherthey are compensated adequately. The fourth summarizes civilservants own characterization of their incentives in bothcompensation- and non-compensation-related terms. A briefconclusion points to a set of principles for civil servicereform and outlines three sequenced steps toward achieving amore rational civil service pay and grading system.
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