BANGKOK, Dec. 8 (Xinhuanet) -- The Lao government said that Thai-assisted micro-credit schemes would help it achieve its aim of getting rid of poverty by 2020, Thai newspaper the Nation Thursday reported.

    The Community Organization Development Institute, a public agency under Thailand's Social Development Ministry, signed a memorandum of understanding with the Lao Women's Union on Tuesday to provide 7.1 million Baht (about 177,500 US dollars) to set up savings groups in five Lao provinces.

    The cooperation initiative is the second phase of a two-phase operation, the first part of which ended in October after creating 89 savings groups in Vientiane's three districts and providing 22.8 million Baht (about 570,000 US dollars) to members.

    Lao Deputy Prime Minister Thongloun Sisoulith, who oversees the Vientiane government's economic and development affairs, said the authorities were struggling to beat household poverty in the country's 46 districts, where the average daily wage is just one US dollar.

    After three decades of effort to develop the land-locked country, Laos is still gripped in poverty and is considered one of the least developed countries in the world.

    Speaking at an international seminar on the establishment of savings groups for poverty reduction, Thongloun said local people could create their own sources of funds for investment and social welfare by grouping together with collective savings.

    He said villagers should not wait for the government to release them from poverty, they should try to lift their own living standards.

    Grouping together to set up savings and credit groups to accumulate capital and build sources of funds is the least they can do, he said.

    Hundreds of people from Laos, Thailand, Cambodia, Vietnam and India attended the Wednesday seminar in Vientiane to exchange views on savings and credit groups as well as micro-credit management.

    Thailand's Social Development and Human Security Minister Watthana Muangsook told the seminar that it was the government's job to provide opportunities for people to access sources of funds,reduce their expenditure and increase income.

    He cited the Bangkok government as an example, saying it was successful in its efforts to create village funds for local people so that they have a variety of sources of funds for investment and welfare. Enditem