The project was developed in the context of the government‟s plans for the reduction of poverty,
opium poppy production and shifting cultivation. It focused on support to rural livelihoods in the
Northern region in one of the country‟s poorest provinces. In 2002/2003, Oudomxay had a population
of 254,000, with 45 per cent below the poverty line. Five of its seven districts were amongst the
47 „priority poor‟ districts and one was deemed „poor‟. Shifting cultivation and opium production were
widespread and there was a high deficit in rice production.25 With the implementation of government
policies to reduce shifting cultivation and eradicate opium cultivation, alternative livelihoods needed
to be developed. There were opportunities and technologies available to support a variety of
development activities (e.g., access roads, irrigation, new crops, financial services, etc.).