The Vientiane Declaration describes the Program Based Approach (PBA) as a way of engaging in development cooperation based on the following principles:
- Leadership by the host country or organization;
- A single comprehensive programme and budget framework; noting however, that PBAs allow for a variety of ODA funding modalities including, but not limited to, pooled funding;
- A formalized process for DP coordination, and harmonization of DP procedures for reporting, budgeting, financial management and procurement; and
- Efforts to increase the use of local systems for programme design and implementation, financial management, and monitoring and evaluation.
The anticipated benefits from a PBA include a better coordinated mechanism for donors to contribute to government development strategies.
Appreciation of the need for more coordinated donor support is based on numerous reviews on aid effectiveness and also on the achievements of the various projects and programmes implemented in Lao PDR.