ATTACHMENTS

 

Contents

A.       List of NGO/CSO representatives consulted                               

B.       Results of Provincial Workshops                                          

C.       National Workshop Documents                                            

1         List of Workshop Documents                                         

2         Final Program                                                           

3    An Overview of the I-PRSP                                           

4    Rural Development and Decentralization                            

5    Agriculture and Food Security                                         

6    Land Reform                                                            

7    Forestry, Fisheries and Environment                                 

8    Health                                                                    

9    Education                                                                

10   Women’s and Child Rights                                             

11   Industrial Workers and Urban Poor                                   

12   Governance and Human Rights                                        

13   PRSP:  Capacity Building, Monitoring and Work Plan             

14   Matrix of cross-cutting issues                                          

15      An Update of the PRSP Process in Cambodia                        

16      Some changes in the I-PRSP (7th and 8th versions)                

17      Locating civil society role in the PRSP process                     

18      NGO Perspectives on Poverty Reduction                            

D.       Small Group Discussion 1: Matrices of Key Policy Issues (I)            

1    Rural Development and Decentralization                            

2    Agriculture and Food Security                                         

3    Land Reform, Forestry, Fisheries and Environment                

4    Health and Education                                                   

5    Women’s and Child Rights                                             

6    Industrial Workers and Urban Poor                                   

7    Governance and Human Rights                                        

8    Disaster Management                                                  

E.       Matrix of cross-cutting strategies (II) and list of main points (III)     

F.                Copy of NGO letter to the RGC's Council of Ministers, 8 November 2000   

G.               Suggestions on how to incorporate priority concerns identified by NGOs/CSOs into the text of the I-PRSP  


 

ATTACHMENT A

List of  NGO/CSO representatives consulted

A.  NGO/CSO representatives

·       Ms Thida Khus - Executive Director, SILAKA

·       Ms Buoa Chanthou - Executive Director, PADEK

·       Ms Prok Vanny - Executive Director, KHEMARA

·       Dr Chiv Bunthy - Executive Director’s Assistant, MEDICAM

·       Ms Carol Strickler - Executive Director, Cooperation Committee for Cambodia (CCC)

·       Ms Dolores Amor - Country Director, HelpAge Cambodia

·       Cambodia Women’s Development Association (CWDA) / Cambodia Prostitution Union (CPU), Tuol Kuok

·       Mr Sil Vineth - President, Socio-Economic Development Organization of Cambodia (SEDOC)

·       Ms Ros Sopheap - Executive Director, GADNET / Ms Menh Navy - Advocacy and Networking Manager, GADNET

·       Mr Mak Sithirith - Coordinator, NGO Forum Working Group on Environment

·       Mr Yont Tharo - Coordinator, Khmer Kampuchea Krom for Human Rights and Development Association (KKKHRDA) / Mr Son Yoeung - Director, KKHRDA

·       Ms Chorm Sokha - President, National Independent Federation Textile Union of Cambodia (NIFTUC) / Mr Seng Phally - Executive Director, Cambodian Labor Organization (CLO)

·       Ms Morm Nhim - President, NIFTUC / Ms Ken Chenglang - Vice Director, NIFTUC / Mr Nhev Sith Sophary - Technical Advisor and Chief, Board of Directors (Note that there are currently two ‘factions’ within the garment trade unions, and we were best advised to talk to both groups)

·       Mr Thun Saray - Director, ADHOC

·       Mr Lim Phai - Urban Sector Group (USG)

B. Workshop/Informal discussions with NGOs/Civil Society Organizations

                       

06 Sep (pm)                   ADB-SEDPII Mission Team Meeting with NGOs, ADB office, Phnom Penh

08 Sep (am)                   NGO Meeting on Governance Action Plan (GAP), CCC, Phnom Penh

12 Sep (am)                   Workshop with local NGOs in Battambang

             (pm)                 Cambodian Health Education Development, Battambang

13 Sep (am)                   Workshop with Cambodian NGO Network (CNGO) in Banteay Meanchay

             (pm)                 Lunch with Ms Nhem Chan Sophea - CNGO Support Coordinator, Church                                                                              World Service (CWS) / Mao Sareth - Executive Secretary, CNGO (Banteay Meanchey)

15 Sep (am)                   Workshop with local NGOs, Kompong Tham

19 Sep (am)                   Workshop with hilltribe community leaders, Ratanakiri

20 Sep (am)                   Visit to hilltribe village (Labang I), Ratanakiri

             (pm)                 Workshop with IOs and local NGOs, CARERE office, Ratanakiri

23 Sep (pm)                   Small group discussion with NIFTUC, CLO Office, Phnom Penh

24 Sep (pm)                   Meeting with urban poor community leaders, KKKHRDA office, Phnom Penh

 October (pm)                 Meeting with MEDICAM

5 October (pm)               NGO Forum Working Group on Women/GAD Working Group

9 October (pm)               NGO Working Group on the Environment

   October                      NGO Working Group on Development Bank Issues

15 October (pm)              Meeting with NIFTUC leaders (garment workers), Phnom Penh        

        


Participants at Ratanakiri workshop with IOs/Cambodian NGOs

1.     Gordon Paterson                   NTFP                            P.O. Box 9, Ban Lung, Ratanakiri

2.     Hoeung Khoeung                   ADHOC                         Ban Lung

3.     Patricia Donnelly                   APSO                            PRDC, Banlung

4.     Heng Bunthoeon                    CIDSE                           Ban Lung                      

5.     Koy Sokha                           Virachay NP                  Banlung                        

6.     Sang Polrith                          CARERE                       CARERE/Rat    

7.     Tiann Monie             CARERE                       CARERE/Rat

8.     Christina Briasco                   Health Unlimited              hurtk@camintel.com   

9.     Didi Kanjahn             ICC                               Banlung                        

10.  Nhem Sovanna                    CARERE/IBRC               CARERE/Rat.

 

Participants at Kompong Thom workshop with IOs/Cambodian NGOs

1.   Sok Somith                           ACR

2.   Puth Bunkong                       KVOD

3.   Ear Sarin                              ACF

4.   Pen Chorn                            COFFEL

5.   Khin Sokhon                         CCSO

6.   Kuch Sokhom                       HAPO

7.   Thong Sophen                      COWS

8.   Ke Sareung                          KCAD

9.   Ouch Sourn                          DKK

10.  Yim Lam                             AACK

11.  Hout Song Map                     MODE

12.  Oeung Vich Sim                   UFO

13.  Kong Sa Oum                      HOM

14.  Li Khom                              BFDK

15.  Hem Sort                             BSO                                         

 

Participants at Banteay Meanchey workshop with IOs/Cambodian NGOs

1.    Chhen Saran                       Pres

2.    Saran Sophea                      RAHDO

3.    Sin Sen                               RCEDO

4.    Houth Langdy                      RAHDO

5.    Meas Yim                           CFDS

6.    Sok Sarun                           CSDS

7.    Sovann Sophea                   CCPCR

8.    Phon Sy Na                                    CFEDA

9.    Sy Bo                                 SEADO

10.  Chey Somnang                    RCEDO

11.  Thy Sokleun                        KAA

12.  Chung Meng                        ABI

13.  Cheoun Lin                          AFEC

14.  Van Mao                             TDSP

15.  Khum Borin                         CARDH

16.  Thane Penh             Hi-Free

17.  Penh Saro                           CWS

18.  Nhem Chan Sophea             CNGO

19.  Nov Sophal                         CARE

20. Padoeung                            LICADHO

21.  Mao Sareth                          NGO Network

22.  Seu Tyon                            CAAFN

 

Participants at Battambang workshop with IOs/Cambodian NGOs

1.    Hu Chandi                           CWSBRB/BMC

2.    Lim Sophat                          VCDC

3.   Mak Sokgnan                      Helpage

4.    Yat Komsan                         Lichado

5.    Tor Sros                             ILDO

6.    Sem Leakeana                     ILDO

7.    Sok Sam Poeunn                 CFDS

8.    Phan Souk Bopha                 LWS

9.    Sok Sokhon                         CT

10.  Chan Sarin                          RDA

11.  Doung Davrith                      CSSSG

12.  Tid Kandia                           OEB

13.  Siev Lay Hoiy                     PTD

14.  Sin Soeub                           BFD

15.  Lok Vichet                           CHED

16.  Tong Thavrin                       AS

17.  Eum Chanry                                    HURIPRUDA

18. Touch Dara                           RHB

19.  Pen Sokhun                         KNCED

20.  Chhith Sam Ath                    NGO Forum on Cambodia

21.  Yin Mengly                          ADHOC

22.  Meas Bunly                                     Samakithor

23.  Chea Chum                         Samakithor

24.  Ling Salat                            ACED

25.  Komol Sovila                       AMARA

26.  Kim Chovy                         Saboras

27.  Chhoum Ratana                   ACED

29.  Kin Kina                              Samakithor

30.  Mou Koum                          Samakithor

31.  Hea Kim Long                      KRDA

32. Sou Sorn                             Samakithor

 

Participants at National Workshop, 24-25 October

 

 

 

1

H.E. Kim Saysamalen

Under Secretary of State, MoP*

2

Sok Hach

CDRI

3

Neang Sovath

ADHOC

4

Yim Nat

ACLEDA

5

Mom Thany

SCN-CO

6

Chan Narin

JVC

7

Seng Soksan

HEKS

8

Sisowath D. Chanto

CICP

9

Prak Sokhany

ACR

10

Poung Sith

VIGILANCE

11

Touch Nina

FLOW

12

Khim Sarun

CADE

13

Mok May

Admin. CNAC

14

Lya Ni

CLO

15

Ken Chheng Lang

NIFTUC

16

Ith Pov

CWS

17

Kim Phalla

MEF*

18

Ros Sobotra

UPWD

19

Chum Sophay

UPWD

20

Phun Ngok

NTFD

21

Neup Ly

USG

22

Mao Sareth

CNGO network

23

Hang Chuoun Chamrong

MAFF*

24

Nget Sam Ouern

CADFP

25

Ros Sovanna

KADRA

26

Chan Dyna

Women Committee T.K*

27

Meun Navy

GAD/C

28

Nhem Sovanna

UNDP/CARERE Ratanakiri

29

Lun Ean

KAWP (CDW)

30

Khoun Menglong

AFSC

31

Tes Loudeth

STAR Kampuchea

32

Young Kim Eng

KYA

33

Hong Eng

KHEMARA

34

Kong Thann

FPAP

35

Ann Vireak

FPAP

36

Jim Noonan

Maryknoll

37

Chap Samoeun

UNCHS*

38

Lor Bunnath

LWS

39

Chhoeun Rith

KAFDOC

40

Chhum Sarany

LWS

41

Sun Youra

Mlup Baitong

42

Biranchi Upadhyay

Oxfam GB

43

Toun Vicheth

CIDSE

44

Leng Sothea

CDRCP

45

Kristu Fieldhouse

KHEMARA

46

Ly Sokleng

MOI*

47

Meas Kimseng

URC

48

Pich Nol

PADEK

49

Regina Pellicore

Educam

50

Thuon Try

CEPA

51

Sok Kim Sroeung

CORD

52

Lim Phai

USG

53

Hok Bunthoeun

CREDO

54

Vonn Vinary

Oxfam GB, CLSP

55

Thay Mov

MLMUPC*

56

Marylin M. Pintor

LICHADO

57

Som Sorida

MLMUPC*

58

Sam Vuthy

OHK

59

Yung Phanit

CDP Lawyer

60

Om Savath

CFDS

61

Suon Prasith

MoC*

62

Kong Rey

RADE

63

Heng Sovuthy

CWCD

64

Aye Aye Thwin

WHO/Health Finance Advisor*

65

Aryana Phushan

WHO/Manila Poverty Health*

66

Chann Mnny Rath

USG

67

Chea Chantum

MoF*

68

Lim Sarom

USG

69

Prum Vonn

SCF (UK)

70

Heang Siek Ly

MoP*

71

Pruoung Tith

URVC

72

Pec Sokha

CEDAC

73

Lawrence Gray

WVI

74

Yuji Watanabe

Embassy of Japan*

75

Long Piseth

ADB/Operations Analyst*

76

Sam Vuthy

Oxfam – UK

77

Naly Pipage

LICHADO

78

Vasim Sorya

MPWT*

79

Khorn Dinravy

Oxfam GB

80

Chan Sophal

CDRI/Reseacher

81

Ros Sopheap

GAD/C

82

Son Yoeung

KKKHRDA

83

Richard Greeves

World Education/CAM

84

Kang Sa Oum

Network

85

NhevSithsophary

NIFTUC/CBIRD

86

Yea Bunna

MoIME*

87

Hang Vannak

CWCC

88

Chhorn Sokha

NIFTUC

89

Justin Dyworth

World Vision

90

Claire Louise

URC

91

Ingrid Cyirana

UNDP/ARRCP*

92

Sil Vinet

SEDOC

93

Jeem Yves Lequine

WFP*

94

Koul Panha

ADHOC

95

Sau Sisamuth

CWS

96

Suon Visal

CDP

97

David Leege

CRS

98

Ok Kanthoeun

MoWA*

99

Men Makara

ADHOC

100

Chhim Vandeth

SST

101

Hok Bun Thoeun

CREDO

102

Ek Thinavuth

Documentor

103

Chamroeun Katika

Documentor

104

Chhith Sam Ath

NGO Forum

105

Chhoeung Sunlay

CWDA

106

Prak Vanny

Khemara

107

Joy Chavez

Focus on the Global South

108

Russell Peterson

NGO Forum on Cambodia

109

Fiontan O'Loinsigh

Concern Worldwide

110

Christian Rumplecker

German Embassy*

* Representatives of government or donor institutions who attended at least part of the workshop.

 

 

ATTACHMENT B

Results of Provincial Workshops


 

Battambang Workshop Results

Group 1 (CWS, CHED, PTD,

AMARA, Huripruda, CSSSG, OEB, LWS)

Group 2  (Samakithor, ACED,

BFD, RDA, KNCED, HAI, CFDS)

Group 3

1.  What are the needs and issues that poverty reduction strategy should address?  Please prioritize.

1.     Lack of education

2.     Lack of health service (Many children, high cost of health service)

3.     Lack of land, no housing

4.     Debts

5.     Low income, natural calamities, insecurity, mined lands

6.     Lack of markets

7.     Lack of drinking water

8.     Lack of roads

9.     Lack of electricity

1.     Demined land have to be distributed to the poor, not the rich

2.     Land property (formulate a new law on land and fishing lot)

3.     Health (strengthen pesticide regulation law)

4.     Investment to rural areas

5.     Promote education (human resource, skills, techniques)

6.     Prevent flow of imported goods that are being produced in the country, encourage domestic products

1.     Food security

2.     -      Education (human resource)

-       Unemployment

-       Market(s)

-       Low agricultural products

-       Catastrophe

-       Knowledge (skills and techniques)

3.     Health (physical and mental)

4.     Rural infrastructure

5.     -       Social security

-       Corruption

-       Limited law implementation

2.  What are NGO approaches to poverty reduction?

§       Develop educational curriculum - school, teachers, regular salary

§       Develop health service - health centers, curriculum, promote health for remote communities

§       Demining - deliver land property to landless farmers

§       Provide vocational training in order to gain income

§       Seek markets for sale of farmers' products and gain convenient income

§       Build road to remote areas

§       NGO plans should be incorporated into the government's plan according to each field

§       Promote capacity/provide opportunity

§       Find markets for sale of agricultural products (international market)

§       Forbid agricultural product imports

§       Provide and apply transformation (of agricultural products)

§       Provide opportunity and support women to be leader(s)

§       Motivate/encourage all poor's children to have schooling

§       Educate and provide better health services to local areas

§       Promote capacity for family planning

3.  Can NGOs monitor government's poverty reduction strategy?  If so, how?  If not, what capacities have to be strengthened?

NGOs can control/monitor projects provided that:

§       NGO capacity has to be strengthened

§       Transparency of RGC in relation to NGOs/people

§       NGOs and civil society have to go together in monitoring, orientation for practice

1.     Strategy:  NGO representatives have to be involved in the monitoring or practice working group (PRSP)

2.     Methods:  NGO representative(s) should be elected and his/her mandate and task should be clearly determined

§       The government has to stand for: (GAP):

-       Transparency

-       Accountability

-       Equality

CANNOT

§       Government's project is not known

§       NGOs lack capacity monitoring/control

§       The govt does not provide opportunity

§       Donors do not interest NGOs

CAN

§       NGOs have to make plans together with govt

§       Develop control/monitoring system with govt

§       NGOs develop an independent monitoring/control group

§       Develop a joint law for govt, NGOs and donors to be implemented

§       Promote awareness of implementing all kinds of performance related to expense, income for the poor

Banteay Meanchey Workshop Results

Group 1 (RAHDO, Hi-Free,

CCPCR, CARE, CAAFW, RCEDO, AFCC)

Group 2 

(LWS, CFEDA, CFDS, TDSP, Press KBA)

Group 3  (CARDH, CSDA,

RADHO, ABI, SEADO, CCHDO, RCEDO)

What are the needs and issues that poverty reduction strategy should address?  Please prioritize.

What are NGO approaches to poverty reduction?

Can NGOs monitor government's poverty reduction strategy?  If so, how?  If not, what capacities have to be strengthened?

1.     Govt should deliver health services to be qualified with high accountability

2.     Provide opportunity for people to find jobs and gain adequate salary and proper laws to protect people, justice not corruption

3.     Improve security and implement appropriate law on security

4.     Restore and build roads throughout the country

5.     Provide opportunity for agricultural and industrial sectors to find markets for their products and to manage markets properly

6.     Repair, improve, build irrigation systems for farming activities and electricity generation for the whole country

7.     Reform administration by eliminating corruption from all levels of society

§       Education - Restructure and strengthen education system

-       pay attention to teacher's living conditions

-       quality of education

-       implement law on education effectively

§       Exchange of products

-       Improve monitoring and control of imported products (eg, in border, check expiry date of products);  If products are not appropriate, not allow to come in, esp Thai agricultural products

-       Seek investments in favor of farmers

-       Disseminate information to farmers

§       Advocacy

-       Pay attention to farmers' issues, esp livelihood

-       Openly establish cooperation between NGOs and govt

-       Govt should provide opportunity for people to be involved in planning related to people's interests

§       Irrigation system

-       Expand irrigation system in rural areas

-       Restore and rebuild damaged dams and reservoirs that are geared towards villages (not big dams)

§       Health

-       Promote health services from village level

-       Strengthen and restructure health sector (pay attention to medical staff and provide people with medicines)

§       (Items not raised yet in discussion - agriculture, infrastructure, human resource, credit)

NGOs can monitor by:

§       advocacy

§       network

§       workshop/seminar (national)

§       involvement in planning evaluation

§       involvement in giving information about project arrangements

§       field survey conducted directly within communities

§       contact with donors and asking them for information

§       follow up/ check reports/ real activities in communities

§       disseminating public information of all government spending

§       NGO cooperation with RGC in carrying out project(s)

§       Jointly collecting data in communities

Kompong Thom  Workshop Results

Group 1

Group 2

1.  Who are the poor in your communities?

§       Rich families exploit poor families

§       Some village (local) leaders misrepresent their community

-       eg flooding in nearby villages not reported to 'hide poverty'

§       Widows

§       Families with many children

§       Disabled persons

§       Illiterate people

§       People with no skills

§       Powerless people because without bargaining power viz group leaders

§       Demobilized soldiers

§       Illness

§       Women-headed households

§       Victims of natural calamities

§       Internally-displaced people

§       Victims of domestic violence

§       People without draft animals for agriculture

§       Families with many children

2.  What are NGO/poor people's approaches to poverty reduction?

 

§       Credit to start other business

§       Sell their labor

§       Sell property (eg land) to have money to initiate other activities

§       Participation in self-help groups, solidarity groups, formerly relief associations) to expand income generation - animal raising, fishing, home garden

3.  Should government provide poverty reduction funds to NGOs?  If so, what mechanisms should be set up to prevent corruption?

§       Money to be channeled through Cambodian NGO network so that NGOs can get funds easily

§       Set up a Steering Committee to monitor if project implementation is effective or not

§       Set up regulations on how to use funds for poverty reduction

§       Poor communities should get bulk of funds allotted for poverty reduction (rather than salaries of staff)

§       Money should be given to Cambodian NGOs through IOs, or full budget that is needed can be given by IO

§       Poverty reduction funds can also be channeled through Cambodian NGO networks

§       Transparency, avoid corruption, avoid bureaucratic red tape (long process)

Workshop results - Ratanakiri hilltribe community leaders

Group 1

Group 2

1-What kind of development will improve the well-being of people in your community?

·       Try to involve communities in planning so that communities priorities are reflected

·       Involve all sectors (health, agriculture, education, technical committee, etc)

·       Development and govt workers should adapt themselves to the communities

·       Respect people's time

-       People are usually busy,  if devt workers plan something in May - busy time for farmers cultivating their farms

-       Also, villages have special ceremonies that forbid outsiders from entering the village

-       Planting and special ceremonies are most important events

§       Issue land rights to local communities

·       May the govt support local communities

·       Help provide jobs to local communities

·       The relevant institutions should provide necessary training to poor communities

2-  What kind of projects will affect custioms, solidarity and livelihoods in your community?

§       Illegal logging should be considered in relation to impact on local communities and natural resources

§       Land concessions cause problems for communities (lack of land for cultivation)

§       Planning without participation from local communities

§       Flood

§       Crops are destroyed by pests

§       Loss of wildlife

§       Drought 9insufficent rain)

3-  How can local communities participate in PRSP process?

-----

------


Ratanakiri IO/NGO Workshop Results

Group 1 - International Organizations

Group 2:  Cambodian group

1-  Main causes of poverty

·       Occupation and alienation of customary land

·       Degradation of natural resources

·       Lack of adequate nutrition

·       Government corruption

·       Poor health  -  lack of knowledge about health prevention (health education)

       - inadequate health services; inadequate access and appropriateness

       (health system not motivated to reach local population/poor)

·       Low literacy rates / Lack of access to basic education

       - inappropriate curriculum / system for indigenous minorities

       - Khmer language curriculum excludes most minority population

       - Very low access for women:  - cultural, system

·       Lack of access to markets (for cash crops)

·       Lack of marketing skills, commerce skills, numeracy ($)

       - unable to compete in monetary/market-oriented economy

·       Lack of legal framework and titling system for customary land tenure (i.e. community)

·       Lack of knowledge of rights and procedures for claiming rights (land, forest...)

·       Lack of recognition of local community and local government as being important stakeholders in forest management -          - i.e. forest is a multi-sectoral resource and should be managed in multi-sectoral way

         - currently managed by ‘timber producers’ (i.e., Forestry Department) at expense of other uses

·       Decreasing forest resource is causing decreasing emergency food supply (in drought years, after floods, etc)

1-  Main causes of poverty

·       Destruction of natural resources

·       Low education and skills

·       Lack of information and services

·       Poor infrastructure/communication

·       Less support from govt to indigenous people

2- Poor people to be targeted by poverty reduction plans

·       indigenous women-headed household

·       local communities living under land and natural resource pressure

·       local communities living in isolated areas and near the border

·       vulnerable people (affected by natural and man-made disaster)

3- Recommendations to help reduce poverty

·       Roads, infrastructure projects should be undertaken with very stringent E/SIA and transparency/accountability

- impact on rate of deforestation, wildlife and natural resources trade

- accelerated land grabbing

·       Training of indigenous people to be teachers in their own communities

·       Develop bi-lingual (Khmer-native language) curriculum for local schools

·       Development of cash crops and markets should be designed to target rural poor/indigenous communities, rather than investors

·       Focus on developing appropriate system and procedures for providing land security for indigenous communities (and other rural poor)

- this absolutely must precede any cash crop development/investment

·       Moratorium on titling of land / sale of land / establishing crops on customary land by people who are not community members - - until after all customary land has been mapped/documented/secured

·       Accountability/Transparent government

·       Health:  ___________

·       Education related to human rights, land rights, legal processes

·       Decentralized and integrated planning

·       Cash flow should have clear procedures, transparency, and be directed to local communities

·       Funds channeled through line departments should be used properly and reach local communities

·       Any development plan should respect indigenous rights

·       Government should take more consideration of development projects proposed by indigenous communities



 

ATTACHMENT C

NATIONAL WORKSHOP DOCUMENTS

NATIONAL NGO/CIVIL SOCIETY WORKSHOP ON THE

GOVERNMENT’S POVERTY REDUCTION STRATEGY

24-25 October 2000, World Vision Center, Phnom Penh, Cambodia

LIST OF WORKSHOP DOCUMENTS

No.     TITLE

English and Khmer versions

         Final Program

1        An Overview of the I-PRSP

Sectoral Policy Issues/Matrices:

2        Rural Development and Decentralization

3        Agriculture and Food Security

4        Land Reform

5        Forestry, Fisheries and Environment

6        Health

7        Education

8        Industrial Workers and Urban Poor

9        Women’s and Child Rights

10      Governance and Human Rights

11      PRSP:  Capacity Building, Monitoring and Work Plan

12              Matrix of cross-cutting issues

13              An Update of the PRSP Process in Cambodia - 20 October 2000, NGO Forum on Cambodia

English versions only

14        Some changes in the I-PRSP (7th and 8th versions)

15        Joy Chavez-Malaluan, 2000, Locating civil society role in the PRSP process, Paper presented at the National   
     NGO/Civil Society Workshop on the RGC’s Poverty Reduction Strategy, 24-25 October 2000, Phnom Penh, Cambodia.

16        NGO Perspectives on Poverty Reduction, CIDSE


 

 

 

National NGO/Civil Society Workshop

on the RGC’s Poverty Reduction Strategy

24-25 October 2000, World Vision Conference Center, Phnom Penh, Cambodia

Organized by the NGO Forum on Cambodia

in cooperation with the

United Nations Development Programme (UNDP)

FINAL PROGRAM

DAY 1 (October 24)

AM Session

7:30-8:00                ARRIVAL/REGISTRATION OF PARTICIPANTS

                           START OF OPENING SESSION

                           Chairperson:  Ms Prok Vanny, Executive Director, KHEMARA

                           NATIONAL ANTHEM

8:00-8:10                WELCOME REMARKS by Russell Peterson

                           Representative, NGO Forum on Cambodia

8:10-8:20                INTRODUCTORY REMARKS

                           United Nations Development Programme (UNDP)

                           PERSPECTIVES ON THE POVERTY REDUCTION STRATEGY

 

8:20-8: 40               1.  H.E. Kim Saysamalen

                                Under Secretary of State, Ministry of Planning

8:40-9:00                2.  Mr Kim Phalla

                                Deputy Director of the Department of Economic Forecast and

     Analysis, Ministry of Economy and Finance

9:00-9:20                3.  Mr Toun Vicheth

                                Deputy Field Representative Designate, CIDSE

9:20-9:40                4.  Mr Koul Panha

                                Adviser, ADHOC/Executive Director, COMFREL

9:40-10:00              END OF OPENING SESSION / BREAK

                           START OF WORKSHOP SESSION

10:00-10:10             PRESENTATION OF FINAL TWO-DAY PROGRAM

                                   


10:10-11:20             OVERVIEW OF POLICY ISSUES IN POVERTY REDUCTION STRATEGY (Presentation of Key Results)

                           Chhith Sam Ath, Coordinator/Development Issues, NGO Forum

         Violeta Corral, Participation Consultant, NGO Forum

11:20-12 noon          OPEN FORUM

12:00-1:30 pm          LUNCH BREAK (Lunch will be provided)

PM Session

1:30-3:30                SMALL GROUP DISCUSSION 1

(Please refer to guide to Day One Small Group Discussion) 

3:30-3:45                BREAK

3:45-4:50                PLENARY REPORTING 1 / OPEN FORUM

4:50-5:00                SYNTHESIS OF GROUP REPORTS

                           Violeta Corral and Chhith Sam Ath, NGO Forum

DAY 2 (October 25)

AM Session

8:00-8:15                RECAP OF DAY 1   by Russell Peterson, NGO Forum

8:15-9:15                COMMENTS ON THE MACRO-ECONOMIC POLICIES

IN THE I-PRSP

Mr Sok Hach, Economist, Cambodia Development Resource Institute           

Ms Joy Chavez-Malaluan, Research Associate, Focus on the Global South

        

9:15-10:15              OPEN FORUM

10:15-10:30             BREAK

10:30-11:15             NGO CONTRIBUTION TO A PARTICIPATORY POVERTY MONITORING MECHANISM & NEXT STEPS

                           by Chhith Sam Ath and Violeta Corral, NGO Forum

11:15-12:00             OPEN FORUM

12:00-1:30              LUNCH BREAK  (Lunch will be provided)

PM Session

1:30-3:30                SMALL GROUP DISCUSSION 2

                           (Please refer to guide to Day Two Small Group Discussion)

3:30-3:45                BREAK

3:45-4:40                PLENARY REPORTING 2 / OPEN FORUM

4:40-4:45                SYNTHESIS OF GROUP REPORTS

                           Violeta Corral and Chhith Sam Ath, NGO Forum

4:45-5:00                CLOSING REMARKS

                           Russell Peterson, NGO Forum on Cambodia


AN OVERVIEW OF THE I-PRSP[1]

The Interim Poverty Reduction Strategy Paper (IPRSP) is a document outlining the governments intended strategy for reducing poverty.  It is required by the World Bank (WB) and International Monetary Fund (IMF) before they grant more external assistance to Cambodia.  The IPRSP will be considered by the WB and IMF Boards in December 2000.  The preparation of the full PRSP, which will be finalized by October 2001, will allow active participation of the local communities and authorities.  The essential features of a full PRSP are: (i) country ownership; (ii) poverty focus; (iii) consultative process; and (iv) systematic monitoring of outcomes.

Drafting process

The preparation of the I-PRSP was commissioned by the Prime Minister Samdech HUN SEN and overseen by the Committee on Economic and Financial Policies which is headed by the Minister of Economy and Finance, with broad inter-ministerial representation.  Six drafts of the IPRSP have been prepared for comments by stakeholders, including key government officials, chairpersons of the National Assembly and the Senate commissions, umbrella NGO groups, the private sector and various donors.  A Khmer translation is already being prepared.

The RGC has piloted the partnership approach in the PRSP process, which will be closely linked to the formulation of the Second Five-Year Socio-Economic Development Plan (SEDPII). The preparation of SEDPII was launched at a National Workshop held in May 2000;  the SEDPII will be finalized in March 2001.  These two important government documents will be implemented in a single strategic framework in conjunction with other poverty-related activities.

Contents of the IPRSP

The I-PRSP contains the following sections:

I.       Nature of Poverty

II.       Review of Existing Strategies & Performance

III.     Statement of Poverty Reduction Strategies & Objectives

IV.     Capacity-Building & Monitoring

V.      PRSP Workplan

VI.     Policy Matrix

Nature of Poverty

Different measures are used to measure poverty, sometimes defined as a lack of income or consumption and lack of opportunities. Broader dimensions of poverty include poor education and health; the major surveys in recent years are the 1997 Socio-Economic Survey and the Health Survey.  In Cambodia, the measurement of poverty is based on a poverty line that accounts for food consumption (that provides at least 2,100 calories of energy per person per day) and non-food consumption (e.g. clothing, basic shelter).

The 1999 Poverty Profile in Cambodia shows that 36% of Cambodians live below the poverty line; in 1993-94, the poverty rate was 39%.  Of the 36% poor population, 90.5% live in the rural areas, 2.3% in Phnom Penh and 7.2% in other urban areas.  Moreover, the percentage of Cambodians living in poverty fell slightly from 39 percent in 1993-94 to 36 percent in 1997.

Poverty in Cambodia is set against a background of 30 years of conflict and internal displacement.  The most disadvantaged groups in Cambodia are internally-displaced people and returned refugees, war widows, orphans, street children, squatters, people with disabilities and isolated ethnic communities.  The different dimensions of poverty are:

1.  Lack of opportunities:

Þ    The poor lack access to education, health care and safe water.

Þ    The poor lack markets, communications, infrastructure, security.

Þ    The poor lack knowledge of their rights.

2.  Vulnerability:

Þ    The poor face food insecurity and malnutrition.

Þ    The poor lack modern technology, and access to quality grains, fertilisers, irrigation and credit.

Þ    The poor have declining access to common resources such as forests and fisheries.

Þ    The poor sometimes are forced to sell their land to pay for medical treatment.

3.  Low Capabilities:

Þ    Low school enrolment rates.

Þ    Low life expectancy.

Þ    High infant mortality rates.

Þ    The poor lack access to public services.

Þ    High costs of education and health.

4.  Social Exclusion (barriers which prevent the participation of the poor in society), is due to:

Þ    Illiteracy.

Þ    Lack of access to decision making.

Þ    Official Corruption.

Review of Existing Strategies & Performance

The I-PRSP will build upon existing poverty reduction strategies and social and economic policies.  These include the First Socio-Economic Development Plan 1996-2000 (SEDPI) and other key government documents that aim to: restore peace and stability; integrate Cambodia into the regional and global economy; undertake broad macro-economic and public sector reforms. A Governance Action Plan (GAP) will also be incorporated into the final version of the PRSP.

The SEDPI emphasized rural development and stressed the need to balance this goal with the development of major urban growth poles.  The SEDPI target allocation for pubic investment expenditures was 65% to go to projects in rural areas and 35% to urban areas.  The implementation, however, turned out to be the opposite -- 65% of investments went to urban areas, while only 35% went to rural areas.  Moreover, past efforts to reduce poverty have focused mainly on stand-alone projects that neglect the broader and policy and institutional environment of poverty reduction.  Cambodian rural development programs focused on primary health care, sanitation and rural water supply, among others.

Statement of Poverty Reduction Strategies & Objectives

The government's pro-poor policy should be geared toward establishing a favorable environment to promote and generate economic growth without environmental degradation and equitable distribution of income. On the basis of this broad strategy, the RGC has formulated the following policy response to poverty: promoting opportunities, creating security, strengthening capabilities and generating empowerment.

Growth is the most powerful weapon in the fight for higher living standards. Faster growth will require policies that encourage macroeconomic stability, shift resources to more efficient sectors, and integrate with the global economy.  However, the benefits of growth for the poor may be eroded if the distribution of income worsens.  Even with economic growth there is still room for policies that target interventions to improve health and education outcomes.  At the top of the list are female education to ensure gender equality, safe water and sanitation, child immunization, as well as social safety nets to protect the most vulnerable.  Attention is also needed to the social structures and institutions (or ‘social capital’) which affect development.

1-  Promoting opportunities

The RGC’s approach to promoting opportunities is via strengthening macroeconomic performance, accelerating economic growth, promoting private sector development, developing the physical infrastructure, strengthening the energy sector, ensuring sustainable development of the agricultural sector, improving water resource management, advancing rural development and decentralization, ensuring a sound natural resource management, encouraging income generation activities, embarking on land reform and increasing access to micro finance for the poor. Though well-targeted programs for rural areas could have quick impact on the rural population, poverty reduction strategy should not be overtly reliant on the development of agricultural sector, given poor performance of the sector in the past.  Industrial and service sector development could become a powerful locomotive to pull Cambodia out of the shackles of poverty.

Table 1.  Linking Poverty Diagnostics to Government Policies

Dimensions of Poverty

Government Policies

LACK OF OPPORTUNITIES

(i)             Low average income

(ii)           Extensive poverty, especially in rural areas

(iii)          Landlessness and lack of access to land

(iv)          Low education for girls

(v)        Lack of infrastructure

PROMOTING OPPORTUNITIES

(i)             Macroeconomic stability

(ii)           Economic growth

(iii)          Promoting private sector development

(iv)          Improving physical infrastructure including irrigation and rural roads

(v)           Measures to promote agriculture.

(vi)          Land reform

VULNERABILITY

(v)           Crop failure

(vi)          Weather conditions

(vii)        Environmental degradation

(viii)       Health problems

(ix)          Land mines

CREATING SECURITY

(vii)        Micro-finance schemes

(viii)       Safety net programs

(ix)          Environmental protection

(x)           Access to health services

(xi)          Mine clearance

LOW CAPABILITIES

(x)           Low outcomes, especially education

(xi)          Bad water and sanitation

(xii)        High costs of healthcare

STRENGTHENING CAPABILITIES

(xii)        Service delivery

(xiii)       Increase public spending on health, education, agriculture and rural development

SOCIAL EXCLUSION

(xiii)       Illiteracy

(xiv)       Lack of access to decision making

(xv)        Corruption

GENERATING EMPOWERMENT

(xiv)       Judicial reform

(xv)        Education policy

(xvi)       Rules governing NGOs

(xvii)     Governance and anti-corruption

(xviii)    Decentralisation

­­­­


2- Creating security

Reducing the vulnerability of the poor by developing resistance to external shocks and increasing the overall sustainability of their livelihoods is a priority as is assisting those poor who want to diversify out of agriculture, and these concerns have not received sufficient attention.  The current emphasis is on credit for income generating activities, but there is a need to also address vulnerability to fluctuations in income, as this results in cash flow constraints that may lead to deferment of investment and/or distressed land sales, so as to smooth consumption expenditure.  This could be tackled by providing insurance, savings and loans for consumption purposes. Moreover, security can be ensured by expanding safety net programs, promoting environmental protection and clearing landmines.

3-  Strengthening capabilities

The government plays a crucial role in the service delivery and the improvement in capabilities.  This requires a focus on the quality and availability of services for the poor and the comparative advantage of the government, non-governmental organizations and private sector agencies as the supplier of these services.  Essentially this focus is on the role of government and issues of effectiveness and efficiency and involves questions about the degree of government decentralization and civil service reform. 

4- Generating empowerment

Priority actions that needs to be taken by taken by the RGC over the short to medium term are: Establish priority groups of government officials to improve service delivery and increase productivity; expand decentralization and continue deconcentration of the system of administration to increase accessibility of essential services to the people; accelerate the reform of the state by implementing action plans in demobilization, administrative and fiscal reforms with a view to strengthening the rule of law and consolidating the foundation of the market economy; deepening the judicial reform and establishing a national program for judicial reform; and implement the measures outlined in the Governance Action Plan (GAP).

Capacity-Building & Monitoring

The emphasis of the PRSP must be on the implementation of poverty reduction policies and the monitoring and evaluation of their targets.  Poverty reduction targets to be set and monitored should be relevant, simple and easily updated when required.  A sound institutional capacity for the implementation of poverty reduction strategies should be ensured. More attention should be paid to inter-ministerial coordination in carrying out poverty reduction strategies. A poverty monitoring mechanism needs to be set up and systematized.

PRSP Workplan

Overall responsibility for the full PRSP will pass from the Ministry of Economy and Finance (MEF) to the Ministry of Planning (MOP), which is also responsible for the ongoing preparation of the SEDPII. 

Participatory processes include the following:

Activities

Schedules

1.     Dissemination of I-PRSP in Khmer and Public Info Campaign, including participation plan for PRSP

2.     Survey of NGO/civil society concerns regarding poverty reduction

3.     Workshops at central level

4.     Workshops at local levels

5.     Participatory Poverty Assessment

6.     Stakeholder analysis, including key government officials and umbrella NGO groups and private sector. Determination of criteria for selection of stakeholders, eg representativeness.

7.     Implementation of participatory processes, at local and central levels, including consultations with local communities, local authorities, the National Assembly and the Senate.

Sept 00

Sep - Oct 00

Jan - May 01

Jan - May 01

Jan - Jun 01

Feb - Mar 01

Mar - Jul 01

Policy Matrix

The short to medium term actions that have already been committed to by the RGC are incorporated in the Policy Matrix (Annex I).  They will be reviewed in preparation of the full PRSP.


ANNEX 1: POLICY MATRIX (2000-2002)

Policy

Objectives and Targets

Strategies and Measures

Implementation

TA Requirements (to be completed)

I. MACRO- STABILITY AND ECONOMIC OPPORTUNITY

The Government will develop a modern tax framework and transparent procedures with the objectives of improving sustainable, efficient utilisation and enhancing revenues. The ultimate goal is to generate additional revenue of 4 percent of GDP over four years to 2002.

 

 

 

 

 

 

1. Fiscal Reform

 

 

 

 

 

 

 

(i) Revenue mobilization

 

 

 

 

 

 

 

a. Broaden revenue base

Improve VAT administration and extend VAT coverage.

2000-02

 

 

 

 

 

 

Re-institute pre-shipment inspection.

August 2000

 

 

 

 

 

 

Review mechanism for timber royalties, in the context of budget formulation.

2000-02

 

 

 

 

 

b. Reduce tax and duty exemptions.

Revise Law on Investment to rationalize tax and duty exemptions.

March 2001

 

 

 

 

 

 

Grant no new ad hoc tax or import duty exemptions.

2000-02

 

 

 

 

 

c. Strengthen revenue administration and governance.

Strengthen customs administration.

2000-02

 

 

Fully transfer non-tax revenue collection from line ministries to the Treasury.

2000-02

 

 

 

 

 

 

Reinforce procedures to collect tax and non-tax arrears.

2000-01

 

 

 

 

 

(ii) Expenditure management

 

 

 

 

 

 

 

a. Expenditure priorities

Ensure strict implementation of annual Public Investment Program consistent with priorities and link more closely to recurrent expenditure, through such mechanisms as MTEF.

2000-02

 

 

 

 

 

 

Provide adequate funding and meet budgetary targets for spending on basic health and education and rural development in line with Public Expenditure Review.

2000-02

 

 

 

 

 

 

Fully implement the Priority Action Program (PAP) for Health and Education and expand its coverage to Agriculture and Rural Development.

2000-02

 

 

 

 

 

b. Enhance the effectiveness of expenditure management.

Strengthen budgetary procedures to strictly limit spending decisions outside the budget framework.

 

 

 

 

 

 

(ii) Expenditure rationalization

 

 

 

 

The Government will fully operationalize the Budget Strategy and Enforcement Center at MEF to streamline the procedures to screen the bids for funding and facilitate cash disbursements to key social and economic sectors.

2000-02

 

 

 

 

 

 

Establish responsibility for performance at the level of spending units in parallel with the strengthening of technical, financial and managerial capabilities.

2000-02

 

 

 

 

 

2. External sector policies.

Maintain market based exchange rate system.

Ongoing

 

 

 

 

 

 

Reduce tariff rates and simplify the tariff structure.

2000-02

 

 

 

 

 

 

Strengthen the debt management unit and refrain from commercial borrowing on non-concessional terms.

2000-02

 

 

 

 

 

 

Continue discussions with external creditors with a view toward concluding bilateral rescheduling agreements.

2000-01

 

 

 

 

 

 

Formulate procedures to promote market access for Cambodian products in EU countries.

2000-02

 

 

 

 

 

 

Encourage the establishment of business and producers' associations.

2000-02

 

 

 

 

 

 

Adopt the Export Processing Zone Law to promote international trade.

2000-01

 

 

 

 

 

3. Land and Forestry

 

 

 

a. Provide for an environmentally sustainable, socially responsible and economically viable forestry policy.

Strengthen forestry monitoring mechanism, including quarterly reports by monitoring unit for Council of Ministers and public release.

2000-02

 

 

Strengthen concession management and contract terms to improve transparency, monitoring, revenue performance and enforcement.

2000-02

 

 

 

 

 

 

Submit to National Assembly a revised Forestry Law to provide a permanent framework for sustainable forestry management.

December 2000

 

 

 

 

 

 

Review the log export ban policy commensurate with improvements in monitoring capacity.

January 2001

 

 

 

 

 

 

Develop community forestry, initiating mechanisms for the award of long term tenure rights to local communities and indigenous peoples.

2000-02

 

 

 

 

 

b. Land reform

Develop a national land policy and improve the management of the national land stock;

2000-02

 

 

 

 

 

 

Strengthen the legal framework to enforce property rights and commence a systematic land titling,

2000-02

 

 

 

 

 

 

Enforce the new Land Law and implement the National Systematic Land Registration program

2000-02

 

 

 

 

 

 

Establish land use classification, such as permanent forest estate, fishing lots and other agricultural land to help the poor gaining access to land and improving land tenure.

2000-02

 

 

 

 

 

 

Develop and enforce measures to prevent encroachment of land by privileged groups.

2000-02

 

 

 

 

 

4. Agriculture, water resource and rural development

Increase public investment in rural infrastructure: energy, irrigation, roads.

2000-02

 

 

 

 

 

 

Improve agricultural services and facilities: marketing, distribution and micro-credit.

2000-02

 

 

 

 

 

 

Enlarge access by the poor to common resources: forests, rivers, lakes and new agricultural land.

2000-02

 

 

 

 

 

 

Promote rural income generation to diversify and raise incomes of rural poor.

2000-02

 

 

 

 

 

 

Develop and reinforce technical expertise of rural water supply authorities.

2000-02

 

 

 

 

 

 

Implement the National Water Policy Action Plan, including the development of a plan of urban and rural water supply and integrated water resource management.

2000-02

 

 

 

 

 

 

Increase investment in small and medium-sized water facilities by target the poor.

2000-02

 

 

 

 

 

 

Improve technical capacity in project formulation; surveys; planning; design; construction; management and water management.

2000-02

 

 

 

 

 

 

Draft Water Law and water management regulations.

2000-02

 

 

 

 

 

5. Improved infrastructure

 

 

 

 

 

 

 

a. Create an efficient power sector.

Enforce the Electricity Act.

December 2000

 

 

Establish a regulatory body for electricity.

June 2001

 

 

 

 

 

 

Commercialise EDC through a performance-based contract.

December 2000

 

 

 

 

 

 

Formulate and implement strategy for provincial town and rural electrification and pilot projects.

2000-02

 

 

 

 

 

 

Develop institutional and financial mechanisms that leverage private and community investments.

2001-02

 

 

 

 

 

b. Transport

Develop and implement a comprehensive transport sector policy with the input of key constituencies.

2000-02

 

 

 

 

 

 

Operationalize the government road fund.

2000-02

 

 

 

 

 

 

Encourage private sector's participation in the development of the transport sector.

2000-02

 

 

 

 

 

3. Private sector development and public enterprise reform.

 

 

 

 

 

 

 

a. Create enabling development for private sector development.

Adopt comprehensive Commercial Code and implementing regulations and required sub-decrees, including provisions for business organization, bankruptcy, product liability, contracts and intellectual property rights.

2000-02

 

 

 

 

 

 

Corporatise the eleven utilities and infrastructure SOEs to remain in the public sector.

2000-02

 

 

 

 

 

b. Streamline the public enterprise sector.

Implement the restructuring plans for seven rubber plantations.

2000-02

 

 

 

 

 

4. Banking sector policies.

 

 

 

 

 

 

 

a. National Bank of Cambodia (NBC)

Avoid central bank financing of the budget.

1999-02

 

 

 

 

 

 

Improve supervision capacity, including strengthening staff and setting supervision guidelines.

1999-02

 

 

 

 

 

b. Commercial banks.

Re-license all existing commercial banks under the new financial institution law and close those that do not comply with the law.

December 2000

 

 

 

 

 

 

Restructure and privatize the Foreign Trade Bank.

2000-01

 

 

 

 

 

II. SECURITY

 

 

 

Safety net programs

Implement more projects geared towards the disadvantaged groups.

2000-02

 

 

 

 

 

 

Promote basic primary and non-formal education, skills training, health, and support vulnerable groups including street children, amputees, and orphans.

2000-02

 

 

 

 

 

 

Co-finance programs with NGOs to improve the plight of squatters, street children and families.

2000-02

 

 

 

 

 

III. CAPABILITIES

 

 

 

 

 

 

 

a. Education

Increase public spending for education, in particular promote motivation and incentives of the teaching staff (eg. location all in remote areas).

2000-02

 

 

 

 

 

 

Expand access to Grade 1 to 9 to all school age children through provision of additional classrooms and equipment

2000-02

 

 

 

 

 

 

Closing rural/urban and gender gaps at both primary and lower secondary levels.

2000-02

 

 

 

 

 

 

Increased the shares (both wage and non wage) for basic education and target selective scholarships for the poorest in post basic education, while encouraging private sector involvement in upper secondary and tertiary education.

2000-02

 

 

 

 

 

 

Decrease schooling costs to parents through addressing current informal payment by increasing teacher salaries. 

2000-02

 

 

 

 

 

 

Improve teaching and learning process through government's provision of textbooks, increased school operating budgets and additional resources for professional development;

2000-02

 

 

 

 

 

 

Strengthen inspection of education quality and ensure rigorous monitoring of staffing norms.

2000-02

 

 

 

 

 

b. Health

Expand the network of health centers and referral hospitals.

2000-02

 

 

 

 

 

 

Provide minimum and complementary packages of activities (focussing on maternal and child health and national disease control) and expand these services into rural areas.

2000-02

 

 

 

 

 

 

Introduce cost-sharing partnerships with local communities through user fees and expand access and equity of services for the poor through a well-monitored system of user fee exemptions;

2000-02

 

 

 

 

 

 

Improve the utilisation and coordination of resources funded by government budget, donors and the local community;

2000-02

 

 

 

 

 

 

Upgrade the financial management capacity of the health managers and move towards de-concentration of authorities and responsibilities from higher level to district health managers.

2000-02

 

 

 

 

 

c. Water and sanitation

Develop financing mechanisms that leverage private and community investments.

2000-02

 

 

 

 

 

 

Develop regulatory framework that encourages outsourcing of utility operations to the private sector.

2000-02

 

 

 

 

 

IV.EMPOWERMENT

 

 

 

 

 

 

 

a. Measures to reduce corruption

Adopt a sub-decree on internal audit.

2000-01

 

 

Strengthen internal audit departments of the line ministries.

2000-02

 

 

 

 

 

 

Establish and operationalize the National Audit Authority

December 2000

 

 

 

 

 

 

Review arrangements for enforcing the sub- decree on public procurement.

2000-02

 

 

 

 

 

b. Governance

Finalize the Governance Action Plan (GAP).

2001

 

 

 

 

 

 

Implement the GAP

2000-02

 

 

 

 

 

 

Strengthen the rule of law and transparency including modernizing the judiciary

2000-02

 

 

 

 

 

 

Continue to expand the coverage of the Village Development Committees (VDCs)

2000-02

 

 

 

 

 

 

Strictly comply with the December 1997 Prime Ministerial Order requiring explicit approval of and financial control by the MEF of all contracts involving state assets.

2000-02

 

 

 

 

 

 

Establish proper audit/accounting systems.

2000-02

 

 

 

 

 

V. CROSS-CUTTING ISSUES

 

 

 

 

 

 

 

a. Civil service reform

Rationalize the civil service through elimination of redundant workers, normal attrition in line with sector personnel management strategies geared towards quality, efficiency and overall performance of the civil service.

2000-02

 

 

 

 

 

 

Validate the result of civil service census through completion of the identification procedures.

February 2001

 

 

 

 

 

 

Adopt and implement the action plan for civil service reform.

March 2001 onward

 

 

 

 

 

b. Demobilization.

Complete program for demobilization based on the results of the pilot phase.

November 2000

 

 

 

 

 

 

Implement Demobilization and reintegration program under the Cambodia Veterans Assistance Program (CVAP).

November 2000 Onward

 

 

 

 

 

c. Environment

Implement the action plans outlined in the National Environmental Action Plan (NEAP) in particular bio-diversity and protected area management.

2000-02

 

 

 

 

 

 

Mobilize financial and technical resources to implement the NEAP.

2000-02

 

 

 

 

 

d. Statistics.

Implement recommendations made by technical assistance advisers, to improve the coverage, quality and timeliness of economic data.

2000-02

 

 

 

 

 

 

Improve coverage of Government Finance Statistics, especially to incorporate donor financed expenditure into the budget.

2000-02

 

 

 

 

 

e. Poverty monitoring

Maintain regular poverty monitoring based on national multi-purpose household surveys.

2000-02

 

 

 

 

 

 

Build institutional capacity to better link poverty analysis to policy formulation.

2000-02

 


 

RURAL DEVELOPMENT & DECENTRALIZATION

WHAT THE I-PRSP[2] SAYS

1-    Rural Poverty

The 1999 Poverty Profile of Cambodia shows rural households account for almost 90 percent of the poor.  Against a background of prolonged conflict and internal displacement, the current level of poverty in Cambodia largely results from inadequate opportunities, particularly in agriculture and other rural activities.  In 1999, only 11 percent of employed Cambodians were in wage employment in the rural areas. Over 65 percent of the farming population are women and of these, 80 percent work in the agricultural sector.

Rural people in Cambodia have less access to social services such as health, education and safe water.  In addition, knowledge of their rights as well as protection of their rights and information about how government works is also lacking among the poor in rural areas.  Inadequate public services, underdeveloped markets, weak communications and infrastructure, insufficient health and education and insecurity are dominant features of rural life that contribute to poverty.

Much of Cambodia's population remains vulnerable. The border areas remain fragile and heavily land-mined as previous rebel strongholds are brought into the mainstream economy.  Low purchasing power, remoteness of its majority rural population and adverse weather conditions exacerbate food security.

2-  Review of Relevant Existing Strategies and Performance

First Socio-economic Development Plan 1996-2000 (SEDPI)  - The SEDPI emphasized rural development and stressed the need towards striking a balance between rural and urban growth. The target allocation for public investment expenditures was for 65 per cent to go to projects in rural areas and 35 per cent to urban areas. During the implementation, however, the opposite turned out -- 65 percent of investment expenditures went to projects in urban areas, whereas only 35 percent of expenditures went to projects in rural areas. 

Policy Framework Paper -  Among the key elements are increasing public investment to rehabilitate the country’s poor social and physical infrastructure and shifting spending priorities to health, education, agriculture and rural development.

Rural Development -  Cambodia's rural development programs have focused on the critical elements affecting the rural poor, including rural roads, primary health care, sanitation, rural water supply, education and vocational training for rural people, community development, household farming system, rural credit (seeds, fertilizer, rice banks, micro-enterprises) and improved information at village level.  The strategy aims to (i) promote the decentralization of planning, finance and implement rural development projects and programs; (ii) facilitate an integrated rural development approach which is participatory, area-based and multi-sectoral; (iii) provide a forum at each administrative level for dialogue and joint actions both among government departments and between the RGC and the civil society, and the balance between the vertical line ministries and the local authorities; and (iv) define, utilize and mobilize the comparative advantages and appropriate capacities within the government, civil society, the private sector, international and local agencies and rural communities themselves for development purposes.

Agriculture -  The RCG's agricultural strategy is geared towards reaching poverty reduction goals in ensuring food security, improving farming incomes and promoting agricultural exports. Government recognizes that its own performance in provision of efficient and effective sector support services remains a constraint to agricultural development.  Moreover, agricultural reforms have focused on removing state responsibility for production to market-based agriculture.

Land Policy -  The objectives of the RGC's land policy are to promote sustainable economic and social development, reduce poverty and decentralize the administration.  Land administration, management and distribution are the priority sectors.

Rural Roads -  A well-developed rural road infrastructure will greatly contribute to poverty reduction by reducing vulnerability, opening new economic opportunities, creating new employment, enhancing democratic process, developing skills, and facilitating and improving the delivery of rural services.

3-  Statement of Relevant Poverty Reduction Objectives and Strategies

One component of the proposed poverty reduction strategy is attraction of foreign direct investment (FDI).  Another component is allocating investment to priority sectors and improving agriculture in order to build a solid foundation for economic growth.  Given that 90 percent of the poor live in rural areas, the strategy for poverty alleviation should be focused on the improvement of agriculture productivity.  Still another component is the integration of the Cambodian economy into the region and the world will increase economies of scale by expanding markets, improving factor mobility and reducing the prices of imported and exported products. 

Promoting Opportunities

Well-targeted programs for rural areas could have quick impact on the rural population.  Poverty reduction strategy, however, should not be overly reliant on the development of agricultural sector, given poor performance of the sector in the past.  (Industrial and service sector development could become a powerful locomotive to pull Cambodia out of the shackles of poverty.)

Advancing Rural Development and Decentralisation - The RGC has proposed a strategy that is based on the bottom-up, integrated, participatory, decentralized rural development.  The objectives are to expand the number of Village Development Committees (VDCs) - an elected body whose function is to represent the village to government, non-government and international organizations in the management of rural development projects - to cover up to 69 percent of all villages by the end of 2000. This will allow active community participation in grassroots institutions and increase the ownership of development projects, by shifting decision-making and accountability closer to individuals, households and communities.  Policy and institutional reform is being supported by strategic public investments including village water supplies and rural roads, to support the restoration and maintenance of essential rural infrastructure and to generate rural employment.  Priority is given to raising rural incomes to reduce the widespread poverty and to keep within manageable proportions rural-urban migration.

The RGC has planned to further decentralize its system of administration and introduce financial devolution at the grassroots level by submitting to the Parliament a Commune Administration Law.  The elections are scheduled for late 2001 to elect Commune Councils, which will have their own budget consisting of tax and non-tax revenues and a block grant from the national budget.  The councils will have responsibility for delivering services, including social services to the villages.  The councils will have a greater say in the development of their regions. 

Facilitating private sector development  -  The RGC considers the private sector as an engine of economic growth and employment generation. The RGC is committed to developing and strengthening the legal and regulatory framework and institutional capacity conducive to private investment and business activities in Cambodia.

Developing Physical Infrastructure  -  Provision of economic infrastructure can reduce the barriers to the economic participation of the poor. Moreover, development of infrastructure is crucial in the context of continuing trade liberalization in order to provide the poor with easier access to markets for example through feeder roads.

Strengthening the Energy Sector  -  Rural electrification will not only improve the social services targeting the poor over the medium to long term, but will also boost labor productivity in agriculture. Development of hydro-electric stations, though it is detrimental to the environment, will help address this constraint.

Promoting Sustainable Development of Agriculture  -  The RCG's agricultural strategy is geared towards reaching existing poverty reduction goals: (i) ensure food security through expansion in the production of rice and secondary food crops; (ii) improve income opportunities for farm households by diversifying crop production; (iii) promote exports of agricultural products.

Improving Water Resource Management  -  The government's water policy objectives are to expand the fully irrigated areas from 16 to 20 percent of the total rice cultivation areas over the period of five years to 2003, enhance local ownership and capability through the establishment of water user communities. The RGC will also establish a reliable and sustainable hydrological information management system of all river basins.

Ensuring Sound Natural Resource Management  -  The plight of the poor can be improved by widening their access to forest, fisheries and water resources.  Therefore, poverty reduction programs should tailor the specific situations faced by the poor scattered around in various provinces.  Sound natural resource management is required to promote sustainable development. 

Encouraging Income Generation in Rural Areas -  Fostering income generation activities of the rural economy would generate growth and productive employment, curb unemployment and underemployment in the rural areas, upgrade food security and integrate the rural population into growing domestic markets.  These activities can provide additional revenue to those who work during the non-agricultural season, thus having the potential to impact on poverty.

Embarking on Land Reform  -  Land reform will focus on land distribution, land management and land administration. The core program consists of the development of a national land policy, improved management of the national land stock, commencement of systematic land titling, tax reform, the establishment of a legal framework to enforce property rights, the establishment of provincial, municipal and national master plans and zoning and the development of rural housing.

Creating security

Reducing the vulnerability of the poor by developing resistance to external shocks and increasing the overall sustainability of their livelihoods is a priority, as well as assisting those poor who want to diversify out of agriculture. The current emphasis is on credit for income generating activities; there is a need, however, to also address vulnerability to fluctuations in income by providing insurance, savings and loans for consumption purposes.  Moreover, security can be ensured by expanding safety net programs, promoting environmental protection and clearing landmines.

Access to Micro Credit for the Poor  -  The severe lack of effective financial services in rural areas is one of the major constraints to agricultural growth and rural development. It is imperative that the Rural Development Bank, created in 1995, foster NGO micro-credit programs that target the poorest of the poor directly.

Coping with Globalization  -  Cambodia should continue to strengthen its international relations and deepen its commitment to open markets and trade. However, economic integration per se will not address the problem of poverty.  Benefits of a growing global economy have been unevenly distributed leading to wider economic disparities, the feminization of poverty and increased gender inequality. Government interventions are needed to provide training, improve the skills, widen access to credit and help the vulnerable segment of the population to compete in this global network.

Safety-net Type Programs  -  Targeted programs are needed to deliver benefits to the poor. The government social safety net budget and programs are limited in scope, impact on the poor and insufficient to meet the growing needs for social security of the population. The Ministry of Rural Development runs food-for-work-based income and employment generating projects. These are combined with commune-based social support activities, thereby increasingly targeting the most vulnerable.

Environmental Protection  -  Environmental protection efforts are guided by the following principles: (a) The link between poverty reduction and the environment; (b) The importance of the communities. The medium term objectives are to: Develop coastal zone management; enhance forest management; reduce urban and industrial pollution; strengthen protected area management; improve management of the Tonle Sap ecosystem; and build the environmental planning capacity of core institutions.

Strengthening capabilities

Increasing spending alone (in health, education, agriculture and rural development) will not result in poverty reduction.  To ensure that development is trickled down to the commune and village level., measures should be taken streamline budget disbursement procedures and provide the spending units, at provincial and central levels, the control over their own budgets.

Generating Empowerment

Government actions in the medium term include addressing better governance, law enforcement, and fostering enabling environment for NGOs.  Government regulation should have a framework that provides adequate information on development activities and the fiscal impact of NGOs on the country’s development.

4-  Matrix of relevant policies (2000-2002)

Expenditure priorities

·       Provide adequate funding and meet budgetary targets for spending on basic health and education and rural development in line with Public Expenditure Review.

·       Fully implement the Priority Action Program (PAP) for Health and Education and expand its coverage to Agriculture and Rural Development..

External sector policies

·       Reduce tariff rates and simplify the tariff structure.

·       Formulate procedures to promote market access for Cambodian products in EU countries.

·       Encourage the establishment of business and producers' associations.

Land reform

·       Develop a national land policy and improve the management of the national land stock

·       Strengthen the legal framework to enforce property rights and commence a systematic land titling

·       Enforce the new Land Law and implement the National Systematic Land Registration program

·       Establish land use classification, such as permanent forest estate, fishing lots and other agricultural land to help the poor gaining access to land and improving land tenure

·       Develop and enforce measures to prevent encroachment of land by privileged groups.

Agriculture, water resource and rural development

·       Increase public investment in rural infrastructure: energy, irrigation, roads.

·       Improve agricultural services and facilities: marketing, distribution and micro-credit.

·       Enlarge access by the poor to common resources: forests, rivers, lakes and new agricultural land.

·       Promote rural income generation to diversify and raise incomes of rural poor.

·       Develop and reinforce technical expertise of rural water supply authorities.

·       Implement the National Water Policy Action Plan, including the development of a plan of urban and rural water supply and integrated water resource management

·       Increase investment in small and medium-sized water facilities by target the poor.

·       Improve technical capacity in project formulation; surveys; planning; design; construction; management and water management.

·       Draft Water Law and water management regulations.

Improved infrastructure

·       Formulate and implement strategy for provincial town and rural electrification and pilot projects.

·       Develop institutional and financial mechanisms that leverage private and community investments.

Private sector development and public enterprise reform

·       Create enabling environment for private sector development .

Safety net programs

·       Implement more projects geared towards the disadvantaged groups.

Empowerment

·       Measures to reduce corruption.

·       Governance - Continue to expand the coverage of VDCs.

Environment

·       Implement action plans outlined in National Environment Action Plan (NEAP).

NGO RECOMMENDATIONS[3]

The majority of Cambodian people live in rural areas, too often in conditions of abject poverty.  Rural households account for almost 90% of the total poor.  Limited resources constrain access to credit, markets, health services, education and employment opportunities.  The flow of goods,  services and information to and from rural populations is restricted by a weak physical infrastructure.  The decentralization of knowledge and resources to the provinces is vital for the realization of just and equitable development.

Cambodia is also experiencing uneven development in terms of geography.  While some regions have made substantial progress, others lag behind.  There are significant hunger gaps in remote areas and pockets of chronic rural poverty.  The highest poverty rate is found among households where agriculture is the primary source of income.  Moreover, agriculture accounts for over 40% of GDP and employs about 75% of the labor force.  The highest poverty rate is found among households where agriculture is the primary source of income.

The following actions need to be taken to ensure that resources reach the poor:

·       Resource allocation to rural areas must be increased to improve physical infrastructure and access to public and social services

·       Resources must also be directed to the most fragile and isolated regions of Cambodia.

·       Poverty reduction strategies should focus on supporting and strengthening the agriculture sector, with emphasis on the provision of land title to farmers and land use planning.

Decentralization

For people living in towns and villages across Cambodia, the proposed changes to commune administration will be the most visible and far reaching of the government’s reforms.  NGOs recommend the following actions given the scale and importance of changes to commune governance:

·       Widespread public consultation and consensus building in the planning stage.

·       The draft Commune Administration Law should ensure village participation and representation, including that of women.

·       The draft Commune Administration Law should reflect the lessons already learned in decentralized planning, and provide for accountability and adequate inter-ministerial and inter-departmental coordination at national, provincial and sub-provincial levels.

·       Allocate a sufficient portion of government’s national budget to pay commune council salaries and operational costs, along with a contribution to local development funds.

·       Substantial capacity building is needed.

Commune elections

To foster a spirit of participatory democracy, NGOs recommend the following: 

·       The system of voting should prevent politicization of the commune elections and ensure credible representation of community interests.

·       Women should be encouraged to stand for election.

·       NGO elections monitors should be accredited.

·       The National Election Committee should be reformed to reduce its composition to non-partisan members.


AGRICULTURE & FOOD SECURITY

WHAT THE I-PRSP[4] SAYS

1-    Dimensions of  Rural Poverty

The 1999 Poverty Profile of Cambodia shows rural households, especially those for whom agriculture is the primary source of income, account for almost 90 percent of the poor.  Against a background of prolonged conflict and internal displacement, the current level of poverty in Cambodia largely results from lack of opportunities, particularly in agriculture and other rural activities.  In 1999, only 11 percent of employed Cambodians were in wage employment in the rural areas. Over 65 percent of the farming population are women and of these, 80 percent work in the agricultural sector.

Much of Cambodia's population remains vulnerable. The border areas remain fragile and heavily land-mined as previous rebel strongholds are brought into the mainstream economy.  Low purchasing power and remoteness of its majority rural population exacerbate food security.  As harvests are conditional on weather conditions, floods and droughts can have adverse impacts on food security.  Many communes suffer from significant rice deficits.  Rice prices increase considerably during the pre-harvest season from July to December of each year, and most poor families are in constant debt. 

Food insecurity is just one aspect of rural poverty and the reduction of poverty across the country requires the adoption of measures, which address the causes of poverty, such as lack of land, lack of draught power, lack of the means to increase rice yields, lack of irrigation system and lack of animal health programs.

2-  Review of Relevant Existing Strategies and Performance

First Socio-Economic Development Plan for 1996-2000 (SEDPI)  -  The SEDPI emphasized rural development and stressed the need towards striking a balance between rural and urban growth. The target allocation for public investment expenditures was for 65 per cent to go to projects in rural areas and 35 per cent to urban areas. During the implementation, however, the opposite turned out -- 65 percent of investment expenditures went to projects in urban areas, whereas only 35 percent of expenditures went to projects in rural areas. 

Policy Framework Paper  -  Among the key elements are increasing public investment to rehabilitate the country’s poor social and physical infrastructure and shifting spending priorities to health, education, agriculture and rural development.

Agriculture  -  The RCG's agricultural strategy is geared towards reaching poverty reduction goals in ensuring food security, improving farming incomes and promoting agricultural exports. Government recognizes that its own performance in provision of efficient and effective sector support services remains a constraint to agricultural development.  Moreover, agricultural reforms have focused on removing state responsibility for production to market-based agriculture resulting in land reform, price liberalization and the adoption of legislation to permit joint venture between the state and foreign investors. 

Water Resource Management  -  Inadequate irrigation facilities and the lack of institutional capacity constitute impediments to the stabilization and an increase in crop production.          Among the government water resource management policy objectives over the medium term are to: shift gradually the responsibility for operating and maintaining the irrigation facilities from the government to water user communities; and strengthen the capacity of the water user communities.

Land Policy  -  The objectives of the RGC's land policy are to promote sustainable economic and social development, reduce poverty and decentralize the administration.  Land administration, management and distribution are the priority sectors.

3-  Policy Performance and Poverty Trends

Agriculture keeps accounting for over 40% of GDP (42.6% over 1993-98) and is especially important for the poor.  The 93-96 period was satisfactory, but the intermediate period 97-98 was weak (1.4% in 1997), sometimes even negative (-0.8% in 1998). The poor performance of this sector – along with tourism – is largely accountable for the low level of the overall growth in 97 and 98.  Rice remains a determining factor of the growth of the agricultural sector: production is often affected by successions of floodings and/or draughts.  Moreover, agricultural per capita incomes dropped between 1997-1999.

4-  Statement of Relevant Poverty Reduction Objectives and Strategies

One of the main components of the proposed poverty reduction strategy is allocating investment to priority sectors and improving agriculture in order to build a solid foundation for economic growth.  Given that 90 percent of the poor live in rural areas, the strategy for poverty alleviation should be focused on the improvement of agriculture productivity. 

Another key component is the integration of the Cambodian economy into the region and the world will increase economies of scale by expanding markets, improving factor mobility and reducing the prices of imported and exported products. 

Promoting Opportunities

Well-targeted programs for rural areas could have quick impact on the rural population.  However, poverty reduction strategy should not be overly reliant on the development of agricultural sector, given poor performance of the sector in the past.  (Industrial and service sector development could become a powerful locomotive to pull Cambodia out of the shackles of poverty.)

Developing Physical Infrastructure  -  Provision of economic infrastructure can reduce the barriers to the economic participation of the poor. Moreover, development of infrastructure is crucial in the context of continuing trade liberalization in order to provide the poor with easier access to markets for example through feeder roads. Agricultural infrastructure -- such as the construction of rural roads, irrigation facilities building up the agricultural research capacity, provision of agricultural inputs and the transfer of technology and knowledge to farmers -- is also crucial to poverty alleviation.

Strengthening the Energy Sector  -  Rural electrification will not only improve the social services targeting the poor over the medium to long term, but will also boost labor productivity in agriculture.  However, the challenge to the development of a robust power sector in Cambodia is the high costs of electricity generation.  Development of hydro-electric stations, though it is detrimental to the environment, will help address this constraint. By December 2000, the National Assembly will adopt the Electricity Act, which will provide a regulatory framework for the energy sector.

Promoting Sustainable Development of Agriculture  -  As 85 percent of the population live in rural communities and 75 percent of the poor are farmer-headed households, the key to sustained economic growth, poverty reduction and development of the rural economy is through agriculture. The development of this sector is principally constrained by low productivity, which will require a concerted effort to overcome structural constraints. The RGC's agricultural strategy is geared towards reaching existing poverty reduction goals: (i) ensure food security through expansion in the production of rice and secondary food crops; (ii) improve income opportunities for farm households by diversifying crop production; (iii) promote exports of agricultural products.   This may be achieved by:  (a) agricultural research for development; (b) wider dissemination of agricultural marketing and technological information; (c) liberalization of fertilizer pricing and marketing; (d) formulation of a rural finance strategy; (e) divestment of the rubber sub-sector; and (f) establishment of local village development committees.

Improving Water Resource Management  -  The RGC's top priority is to increase the provision of water facilities and infrastructure in both rural and urban areas with the view to addressing one of the root causes of poverty and improving the living standards, food security and public health. The government's water policy objectives are to expand the fully irrigated areas from 16 to 20 percent of the total rice cultivation areas over the period of five years to 2003, enhance local ownership and capability through the establishment of water user communities. The RGC will also establish a reliable and sustainable hydrological information management system of all river basins. In this regard, the RGC has planned to (i) prepare a detailed water sector profile; (ii) formulate investment strategies; (iii) establish an institutional framework for sustainable operation and maintenance of irrigation systems; (iv) identify the action plan for the National Water Resource Development Policy; and (v) strengthen project planning and implementing capacity.

Advancing Rural Development and Decentralisation  -  The RGC has proposed a strategy that is based on the bottom-up, integrated, participatory, decentralized rural development.  The objective is to expand the number of Village Development Committees (VDCs)  which will cover up to 69 percent of all villages by the end of 2000. The RGC has planned to further decentralize its system of administration and introduce financial devolution at the grassroots level by submitting to the Parliament a Commune Administration Law.

Encouraging Income Generation Activities in Rural Areas   -  Fostering income generation activities of the rural economy would generate growth and productive employment, curb unemployment and underemployment in the rural areas, upgrade food security and integrate the rural population into growing domestic markets.  These activities can provide additional revenue to those who work during the non-agricultural season, thus having the potential to impact on poverty. 

Embarking on Land Reform  -  Land reform will focus on land distribution, land management and land administration. The core program consists of the development of a national land policy, improved management of the national land stock, commencement of systematic land titling, tax reform, the establishment of a legal framework to enforce property rights, the establishment of provincial, municipal and national master plans and zoning and the development of rural housing.

Creating Security

Reducing the vulnerability of the poor by developing resistance to external shocks and increasing the overall sustainability of their livelihoods is a priority, as well as assisting those poor who want to diversify out of agriculture. The current emphasis is on credit for income generating activities; there is a need, however, to also address vulnerability to fluctuations in income by providing insurance, savings and loans for consumption purposes.  Moreover, security can be ensured by expanding safety net programs, promoting environmental protection and clearing landmines.

Access to Micro Credit for the Poor  -  The severe lack of effective financial services in rural areas is one of the major constraints to agricultural growth and rural development. It is imperative that the Rural Development Bank, created in 1995, foster NGO micro-credit programs that target the poorest of the poor directly.

Coping with Globalization  -  Cambodia should continue to strengthen its international relations and deepen its commitment to open markets and trade. However, economic integration per se will not address the problem of poverty.  Benefits of a growing global economy have been unevenly distributed leading to wider economic disparities, the feminization of poverty and increased gender inequality. Government interventions are needed to provide training, improve the skills, widen access to credit and help the vulnerable segment of the population to compete in this global network.

Safety-net Type Programs  -  Targeted programs are needed to deliver benefits to the poor. The government social safety net budget and programs are limited in scope, impact on the poor and insufficient to meet the growing needs for social security of the population. Hence, the poor and the vulnerable rely on informal transfers, the Cambodian Red Cross, donors/NGO programs, and individual coping strategies. The Ministry of Rural Development runs food-for-work-based income and employment generating projects. These are combined with commune-based social support activities, thereby increasingly targeting the most vulnerable.

Mine Clearance  -  The top priority of the RGC's policy in improving security for the Cambodian people is to take systematic and concerted efforts with the donor community to clear landmines in agricultural lands, raise public awareness about the dangers of mines, provide training on mine disposal and increase assistance to landmine victims. The RGC has deployed considerable efforts to reorganise CMAC and mobilize donors' support for mine clearance activities.

5-  Matrix of relevant policies (2000-2002)

 Expenditure priorities

·       Provide adequate funding and meet budgetary targets for spending on basic health and education and rural development in line with Public Expenditure Review.

·       Fully implement the Priority Action Program (PAP) for Health and Education and expand its coverage to Agriculture and Rural Development.

 External sector policies

·       Reduce tariff rates and simplify the tariff structure.

·       Formulate procedures to promote market access for Cambodian products in EU countries.

·       Encourage the establishment of business and producers' associations.

Land reform

·       Develop a national land policy and improve the management of the national land stock

·       Strengthen the legal framework to enforce property rights and commence a systematic land titling

·       Enforce the new Land Law and implement the National Systematic Land Registration program

·       Establish land use classification, such as permanent forest estate, fishing lots and other agricultural land to help the poor gaining access to land and improving land tenure

·       Develop and enforce measures to prevent encroachment of land by privileged groups.

Agriculture, water resource and rural development

·       Increase public investment in rural infrastructure: energy, irrigation, roads.

·       Improve agricultural services and facilities: marketing, distribution and micro-credit.

·       Enlarge access by the poor to common resources: forests, rivers, lakes and new agricultural land.

·       Promote rural income generation to diversify and raise incomes of rural poor.

·       Develop and reinforce technical expertise of rural water supply authorities.

·       Implement the National Water Policy Action Plan, including the development of a plan of urban and rural water supply and integrated water resource management

·       Increase investment in small and medium-sized water facilities by target the poor.

·       Improve technical capacity in project formulation; surveys; planning; design; construction; management and water management.

·       Draft Water Law and water management regulations.

Improved infrastructure

·       Formulate and implement strategy for provincial town and rural electrification and pilot projects.

·       Develop institutional and financial mechanisms that leverage private and community investments.

Safety net programs

·       Implement more projects geared towards the disadvantaged groups.

NGO RECOMMENDATIONS[5]

Poverty reduction funds must be directed to areas where the majority of poor people live, and on sectors that will have a real impact and bring foreseeable benefits to those in poverty. There are significant hunger gaps in remote areas and pockets of chronic rural poverty.  The highest poverty rate is found among households where agriculture is the primary source of income.  Resource allocation to rural areas must be increased to improve physical infrastructure and access to public and social services.  Resources must also be directed to the most fragile and isolated regions of Cambodia.  Poverty reduction strategies should focus on supporting and strengthening the agriculture sector, with emphasis on the provision of land title to farmers and land use planning. 

The government should focus on the following issues in agricultural development in Cambodia:

·       Prioritize land use planning and the provision of land title to farmers as the core of any assistance in agriculture.

·       Reserve certain areas in land use planning for the absorption of the increased number of small farmer communities.

·       Recognize the right of communities to manage and use natural resources.

·       Decentralize the public extension service to ensure an effective and sustainable extension system.  Adopt a farmer-led approach in agricultural extension.

·       Provide assistance to the development of responsible private sectors (small scale enterprise in agricultural inputs, processing and marketing) and professional farmers' associations.

·       Establish an independent agricultural market information service and create an autonomous research institution.

·       Democratize an autonomous agricultural education institution, to ensure that human resource development in agriculture responds to the needs of the country.

·       Support farmers training centers in different geographic zones in order for young farmers to benefit from professional training.

·       Introduce and effectively enforce laws to protect the health of small farmers and minimize environmental destruction.

·       Though there are possibilities to ensure food security through diversification and intensification, there should be a significant increase in public investment in research and extension in ecological farming technologies.

·       Widely promote education programs on pesticide hazards, alternative pest control and integrated pest management.

·       Focus development assistance on increasing productivity of rain-fed agriculture.

·       Agricultural credit should be better linked to agricultural extension to prevent further indebtedness by farmers due to unsuccessful agricultural ventures because of lack of access to technical information.

·       Provide special incentives to private investment in agro-processing.  This will add value to agricultural products and create additional employment for the rural population.

·       The huge potential in the rural areas, mainly in agriculture (despite increasing pressures due to growing population), should be effectively exploited through increased public investment in agricultural research and extension.

Concerns are also being raised regarding the entry of cheap agricultural products from Thailand which compete directly with those raised by Cambodian farmers, resulting in loss of markets and much-needed income for poor Cambodian farmers.[6]  Moreover, Cambodia has not fully exploited its MFN and GSP status with regards to many agricultural items.[7]


 

LAND REFORM

WHAT THE I-PRSP[8] SAYS

1-    Poverty and landlessness

Poor people lack opportunities due to landlessness and lack of access to land.  Hence, land reform is key towards promoting opportunities among Cambodia's poor.  Food is one aspect of rural poverty that is linked directly to their lack of land resources.  Social exclusion of the poor -- or their lack of access to decision making -- has also resulted in conflicts between the local authorities and local population, notably land disputes and landgrabbing. 

2-  Embarking on land reform

Land reform will focus on land distribution, land management and land administration that consists of:

§       development of a national land policy;

§       improved management of the national land stock;

§       commencement of systematic land titling;

§       tax reform;

§       establishment of a legal framework to enforce property rights;

§       the establishment of provincial, municipal and national master plans and zoning;

§       development of rural housing. 

3-  Land reform policy matrix (2000-2002)

§       Develop a national land policy and improve the management of the national land stock;

§       Strengthen the legal framework to enforce property rights and commence a systematic land titling,

§       Enforce the new Land Law and implement the National Systematic Land Registration program

§       Establish land use classification, such as permanent forest estate, fishing lots and other agricultural land to help the poor gaining access to land and improving land tenure.

§       Develop and enforce measures to prevent encroachment of land by privileged groups.

The RGC will also find solutions to the complex issue of landless by conducting various studies to:  (a) identify the landless and land poor vulnerable groups, (b) review the programs of assistance to IDPs and returnees, (c) improve access to housing and other needed infrastructure for urban squatters in Phnom Penh and other towns, and (d) examine how gender bias is manifested in the land policy.

NGO RECOMMENDATIONS[9]

The I-PRSP does not acknowledge the extensive research that has already been done on landlessness.[10]  Eight in ten Cambodians live in rural areas but one family in six has never had land or has recently lost their land.  The RGC still owns 80 percent of the country but there has been no demarcation and very low investment in management of public land.  Land speculation is rife in the cities and valuable state property is being sold for private gain.  Property rights in less than 15 percent of privately owned land in Cambodia are formally registered or protected by law, resulting in land disputes.  The courts are unable to adjudicate and provincial authorities do not have the capacity to conciliate land disputes.

Broadly, land reform should focus on land distribution, land management and land administration.  Several strategic interventions are needed:

·       development of a national land policy integrated with other key natural resource policies;

·       improved management of the national land stock, particularly public land;

·       commencement of systematic land titling;

·       tax reform;

·       construction of a legal framework to enforce property rights.

In the immediate term, NGOs urge the RGC to finalize revision of the land law to both increase sustainable production and strengthen social cohesion.  Following the revision of the land law, civil society organizations will engage with the government to cooperatively develop and implement a comprehensive land reform program that focuses on land distribution, land management and land administration.

Moreover, even as the weakness of existing social safety nets are admitted in the I-PRSP, the crucial contribution of common property natural resources (e.g., forests, fisheries) to the livelihoods of the poor are undervalued.

The key recommendations which emerged from the recent National Conference on Landlessness and Development[11] include:

·       All policy should prioritize the protection of livelihoods; 

·       Natural resources should be managed to provide a safety net for the landless and poor rural people;

·       Government should seek to increase the supply of land for poor people’s livelihoods;

·       Landlessness should be used by the government as a poverty reduction indicator;

·       The demand for land should be managed.

The following are NGO comments on land reform-related issues in the Governance Action Plan (GAP) which will form part of the RGC’s poverty reduction strategy:

·       The section on ‘Civil Administration, Decentralization and Deconcentration’ does not specifically refer to the possibility of devolution of responsibility for land administration and land management;  But Commune Council Administration Bill (now before the National Assembly) provides the scope for this to happen.

·       The discussion on ‘Tax Administration’ is silent on land as a tax base.

·       The section on ‘Corruption’ does mention steps being taken to eliminate routs over procurement, but does not talk about reforms to ensure the full measure of the proceeds from the sale of public assets (e.g. public property) or granting of concessions are returned to the National Budget.

·       Whilst the importance of addressing the lack of security of tenure is addressed, the critical complimentary issue of lack of access to natural resources by the poor for sustainable livelihoods is overlooked.

·       The GAP cites current actions being taken which appear to be designed to address land problems related to an inadequate land law and weak capacity of land titling and administration, but other ‘land problem’ issues do not appear to be being tackled.  These include:  (a)  a general situation of weak governance in provinces; (b)  wholesale privatization of common property forests and wetlands;  (c) distress sale of land often related to defaulting on loans; (d) the use of outdated data for land use classification and planning; and (e) lack of a legal framework to cover the management and use of state land and real estate.

·       Some initiatives under the Government’s Program for Administrative Reform (PAR) are particularly relevant to land reform.  The most important may be the ‘design of a strategy and implementation plan to establish priority groups’ of civil servants to address capacity problems in priority policy and operational areas.  Land reform should be a priority policy area and candidate for piloting.

·       Given how fundamental land reform is and the magnitude of resources that will have to be mobilized for implementation, the RGC may have to create a Council for Land Reform;  this could be effected by Royal Decree.


 

FORESTRY, FISHERIES & ENVIRONMENT

WHAT THE I-PRSP[12] SAYS

1-    Poverty, highland minorities and fishers

Social exclusion can be defined as the barriers preventing the poor from fully participating in the social mainstream of the society, due to such factors as illiteracy, lack of access to decision making, and corruption.  Farmers, fishers, housewives, laborers and highland minorities are groups with high level of illiteracy.  The poor and the illiterate are largely the same people. 

One dimension of poverty is 'vulnerability' or livelihood insecurity, powerlessness and discrimination.  One of the major causes of food insecurity and malnutrition among certain population groups within Cambodia is declining access to common property resources such as forest and fisheries. The plight of the poor can be improved by widening their access to forest, fisheries and water resources.

Among the most vulnerable groups in Cambodia are isolated ethnic minorities whose livelihood depends upon forest resources.    They have poor access to education, training and employment opportunities. Isolated ethnic minorities consist of some 30 to 35 ethnic groups living in the hilly and mountainous areas of Cambodia.  Their isolation and the harshness of their habitats increase their vulnerability and often cause extreme poverty. Ensuring free access to forest resources by hill-tribe people and the respect for their land tenure practice are instrumental in alleviating poverty in the Northeast of Cambodia.

Land use classification is essential to conducting demarcation of different types of land, such as permanent estate forest, fishing lots and other agricultural land, which can help the poor to gain access to land and improve land tenure.

2- Contribution of natural resources to economic growth

The government's economic framework focuses on increasing economic growth to 6-7 percent over the medium term.

·       Agriculture[13] accounts for 40% of GDP.

·       Although continuously plagued by severe illegal logging, the forestry sector is a major contributor to economic growth.  In 1993-96, the sector experienced a high growth rate of its value added. A downturn seems to have begun in 1995 and continued in 1997-98.  Available data, however, probably does not provide an accurate picture of the sector.

3-  I-PRSP strategies related to forest, fisheries and environment

a)  Creating security

Reducing the vulnerability of the poor by developing resistance to external shocks and increasing the overall sustainability of their livelihoods is a priority.  These concerns have not received sufficient attention.  The current emphasis is on credit for income generating activities.  Other measures being proposed are through provision of insurance, savings and loans for consumption purposes. 

b)  Encouraging Income Generation Activities in Rural Areas

Fostering income generation activities of the rural economy would generate growth and productive employment, curb unemployment and underemployment in the rural areas, upgrade food security and integrate the rural population into the growing web of domestic markets.  These activities can provide additional revenue to those who work during the non-agricultural season, thus having the potential to impact on poverty. 

c)  Environmental protection

Environmental protection efforts are guided by the link between poverty reduction, sound natural resources management and the importance of local communities. Interventions to provide local communities with the skills to sustainably manage natural resources are crucial. Programs should be designed to preserve and utilise indigenous women's traditional ecological knowledge, including the preservation of bio-diversity;  (ii)  the need for institutional capacity building; (iii) recognition of the importance of an integrated approach to environmental planning.

The medium term objectives are to:

·       develop coastal zone management;

·       enhance forest management;

·       reduce urban and industrial pollution;

·       strengthen protected area management;

·       improve management of the Tonle Sap ecosystem; and

·       build the environmental planning capacity of core institutions.

d)  Ensuring Sound Natural Resource Management

There is a strong correlation between sound natural resource management and poverty reduction.  On the one hand, the plight of the poor can be improved by widening their access to forest, fisheries and water resources.  Therefore, poverty reduction programs should tailor the specific situations faced by the poor scattered around in various provinces.  For example, ensuring free access to forest resources by hill-tribe people and the respect for their land tenure practice are instrumental in alleviating poverty in the Northeast of Cambodia.  Providing access to fisheries and water resources is critical to improve the living standards of the people living in the Tonle Sap region.  On the other hand, sound natural resource management is required to promote sustainable development. 

e)  Forestry reform

To strengthen forestry management and provide for an environmentally sustainable, socially responsible and economically viable forestry policy, several measures are being undertaken.  Revenue collection from forest concessions is being enhanced through more transparent procedures. Controlling illegal logging will increase the revenue potential of the forestry sector.  Forestry revenues will then become an important source of finance for poverty reduction measures in agriculture and in other sectors.

Rigorous actions have been also undertaken by the government to increase the sustainability of forest resources. These include a very successful policy of crime prevention, detection, crackdown and monitoring of illegal activities. Forest crime monitoring and reporting units within the Department of Forestry and Wildlife and the Ministry of Environment were set up and a focal point coordinator position was created within the Council of Ministers for monitoring reports.  An international NGO, Global Witness, was formally designated by the RGC as the independent monitor. 

f)     Industrial development

The RGC has adopted the following industrial development policies: Export-oriented, natural-resource-based, labor-intensive and tourism-related industries. It is crucial to build on the country's comparative advantages by developing natural resource-based industries of different kinds, including agro-business, wood-based, and fisheries-based industries.

4-  Matrix of relevant policies (2000-2002)

Land reform

§       Establish land use classification, such as permanent forest estate, fishing lots and other agricultural land to help the poor gaining access to land and improving land tenure.

·       Develop and enforce measures to prevent encroachment of land by privileged groups.

Forestry reform

§       Strengthen forestry monitoring mechanism, including quarterly reports by monitoring unit for Council of Ministers and public release.

§       Strengthen concession management and contract terms to improve transparency, monitoring, revenue performance and enforcement.

§       Submit to National Assembly a revised Forestry Law to provide a permanent framework for sustainable forestry management.

§       Review the log export ban policy commensurate with improvements in monitoring capacity.

§       Develop community forestry, initiating mechanisms for the award of long term tenure rights to local communities and indigenous peoples.

Revenue mobilization

§       RGC will review the mechanism for timber royalties.

Agriculture, water resource and rural development

§       Improve agricultural services and facilities: marketing, distribution and micro-credit.

§       Enlarge access by the poor to common resources: forests, rivers, lakes and new agricultural land.

§       Promote rural income generation to diversify and raise incomes of rural poor.

§       Implement the National Water Policy Action Plan, including the development of a plan of urban and rural water supply and integrated water resource management.

§       Draft Water Law and water management regulations.

Environment

§       Implement the action plans outlined in the National Environmental Action Plan (NEAP) in particular bio-diversity and protected area management.

§       Mobilize financial and technical resources to implement the NEAP.

NGO RECOMMENDATIONS[14]

Common property resources such as forests and fisheries are extremely important for the livelihood and well being of Cambodians.  Forests provide a wide variety of essential goods, including cooking fuel, building and household materials, food, traditional medicine, livestock feed, transportation, and important cultural and environmental services.  An economic assessment of traditional sustainable use of Tapean forest resources in Ratanakkiri province revealed that its benefits exceed that of commercial timber extraction by at least US$200 per hectare.[15]

Fish has long been a staple diet of Cambodians, second only to rice in consumption; about 70% pf Cambodia's animal protein intake per capital is derived from freshwater fish. The fisheries sector contributes from 5.3-8.5% of the GDP, which ranks fishing as an important factor for the national economy. Little attention, however, has been given to the fisheries sector.  Fishery resources have declined due to commercial fishing and illegal fishing activities by fishing concessionaires.  Efforts to protect fish stocks for local consumption are needed.  More participatory and community-based management regimes need to be enforced to address the complex issues that beset the fisheries sector.

As Cambodia moves towards a free market economy, the commercial pressure on natural resources has increased dramatically.  Loss of forest resources and restricted access to these resources -- due primarily to privatization to commercial and individual interests, to commercial logging and to government efforts to control illegal logging -- has exacerbated rural poverty, disrupted rural communities, and damaged the environment.

The NGO community commends the RGC's efforts to reform the forestry sector in 1999.  Significant concerns, however, remain:

§       The crackdown on illegal forest activities should target large-scale operations with a view to addressing the culture of impunity

§       Terminate forest concessions with a record of illegal activity or which impact negatively on the rights of indigenous groups.

§       Enact appropriate forest and land laws and sub-decrees for community forestry and concession management through a participatory process and with greater consideration of local communities.

§       Appropriate forest policy and forest management capacities should be pre-conditions for resuming commercial logging.

§       Allocate a greater portion of forest revenues to local communities for rural development.

§       Conduct an evaluation of industrial concession management in Cambodia to assess whether the industrial utilization of Cambodia's forest resources is compatible with the goals of equitable social and economic development.

In the fisheries sector, key NGO recommendations include:

·       Sections on 'Forestry'' should cover both 'Forestry and Fisheries' since reforms in the forestry sector is closely linked with reforms in the fisheries sector (and in land management).

·       Legally protect the right of local communities living nearby fishing areas to fish for subsistence.

·       Involve local communities, NGOs and concerned agencies and institutions in a consultative process to draft a more realistic fishery law.

·       Act to curtail the militarization of fishery resources/

·       Donor assistance should focus on improving the welfare of local communities affected by developments in the fisheries sector.


 

HEALTH

WHAT THE I-PRSP[16] SAYS

2-    Poverty and health

Poor people have low capabilities due to poor health, among others.  When people become ill, they are unable to work and are thus deprived of the opportunity to provide livelihood and income to the family.

One of the major health challenges is to bring the spread of communicable diseases under control. Society would benefit from lower rates of communicable diseases.  Malaria and tuberculosis are the major causes of morbidity and mortality for adult population.  HIV/AIDS has also become a priority health problem and will become a constraint for economic development of the country. The burden of AIDS-related illness and death has led to the aggravation of poverty and increased indebtedness.

Some 47% of the population have no access to health care services, with the nearest public health clinic to villages being on average 3 km away.

The cost of medical care represents about 30% of family expenditure.  This high medical cost is often cited as one of the main causes of indebtedness for the poor, which sometimes leads to landlessness.  Moreover, the cost of health services is being disproportionately borne by the poor.  Households finance 82% of all health expenditures, while donors and NGOs contribute 14% each and the government 4%.

2-  Performance of the health sector

Overall health indicators have shown steady improvement over the 1990s.  Indicators also suggest that there is better access to health services.  This may be due in part to the Ministry of Health (MOH) having more capacity than other government ministries, enabling the MOH to attract more external assistance.

Since 1996, the Ministry of Health (MOH) has introduced organizational and financial reforms with the view to strengthening the health system. The basic unit of health care is the decentralized "Operational District", which provides comprehensive primary health care (PHC).  Around 60% of the total 929 health centers are providing a minimum package of activities (MPA); better services are being provided by national hospitals. 

Utilization of public health facilities, however, remains low. One-eighth public health facilities are officially charging user fees, although many have put in place exemption criteria.

3-  Health sector strategies in the I-PRSP

The RGC will increase spending on health and fully implement the Priority Action Program (PAP) for Health.[17]  The MOH has proposed the following health strategies:

§       promote women and child health through basic care service delivery for all women;

§       reduce the incidence of communicable disease such as malaria, dengue fever, tuberculosis, diarrhea disease, acute respiratory infection, and sexually transmitted disease, particularly HIV/AIDS;

§       improve the coverage of good quality service;

§       upgrade the skills of health staff;

§       provide drugs, equipment and materials;

§       strengthen the capacity of the referral hospitals through the use of improved technology and management techniques;

§       facilitate the development of the private health sector; and

§       promote public awareness about sanitation and hygiene.

4-    Health policy matrix (2000-2002)

§       Expand the network of health centers and referral hospitals; 

§       Provide minimum and complementary packages of activities (focusing on maternal and child and health and national disease control) and expand these services into rural areas; 

§       Introduce cost-sharing partnerships with local communities through user fees and expand access and equity of services for the poor through a well-monitored system of user fee exemptions; 

§       Improve the utilization and coordination of resources funded by government budget, donors and the local community; 

§       Upgrade the financial management capacity of the health managers and move towards deconcentration of authorities and responsibilities from higher level to district health managers.

A sustainable essential drugs program will also be developed.  The spread of HIV/AID will be curbed through public education, with a strong emphasis on the use of contraception and increasing role of community authorities and religious leaders in raising public awareness. 

NGO RECOMMENDATIONS[18]

NGOs are active at all levels of the health system, from the central ministry level down to the village and community level.  They are working with all populations throughout the country -- from the hilltribe populations to rural peasants, to urban squatters.  NGOs are therefore well placed to observe the impact of health care delivery on the Cambodian population.  Although much has been accomplished since the RGC embarked on a Health Sector Reform program in 1996, access by the poor to quality health care remains a major challenge to meet.

The poverty reduction strategy needs to address the following key areas of concern:

§       Financial transparency - particularly in health budget allocations of the MEF, 'under-the-table payments' and drug procurement by the private monopoly provider;

§       Chronic under-funding of the health sector;

§       Unethical practice and poor standards - in a general context of low skills, absence of any self-regulatory medical council and lack of political will to investigate reported unethical practices;

§       User fee schemes - which are almost always seriously flawed, with ineffective exemption schemes resulting in an even reduced access to heath care by those who cannot afford to pay;

§       Lack of enforcement of laws and regulations in the health sector;

§       Low priority on human resource development at the MOH;

§       Growing crisis in the public health system and the continued boom of unregulated private clinics - including promoting a broad-based debate on the current MPA package.


 

EDUCATION

WHAT THE I-PRSP[19] SAYS

1-  Poverty and education

People are poor because they have low capabilities due to poor education and low literacy rates, among others.  The poor lack access to education leaving them with few marketable skills and an inability to participate in modern production processes and obtain access to credit. Social exclusion also prevents the poor from fully participating in the social mainstream of the society, due illiteracy, among other factors.

A recent Ministry of Education, Youth and Sport (MEYS)/UNESCO survey concluded that the poor and the illiterate are largely the same people. Farmers, fishers, housewives, laborers and highland minorities are groups with high level of illiteracy.

Equitable access to education is a serious problem. Access constraints include a combination of inequitable distribution of facilities, distance and transportation barriers and social factors linked to the costs of schooling.

Rural people in Cambodia have less access to education.

The costs of education services are disproportionately borne by the poor.  Wealthier households are more likely to benefit from fee exemptions at public facilities.

Moreover, the spread of HIV/AIDS in Cambodia is alarming and to the extent that could threaten sustainable development in the country. To respond to the rapid spread of HIV/AIDS, the RGC has adopted a National Strategic Plan on AIDS prevention and control.  The strategy focuses on improving prevention and public education, with a strong emphasis on the use of contraception.

2-  How many Cambodians are illiterate?

The MEYS/UNESCO survey reported that functionally literate people make up only 37 percent of Cambodia's adult population. According to the survey, 47.6 percent of men are literate, while only about 22 percent of women can read and write.  In general, people aged 25 to 40 had a higher illiteracy rate than other age groups, thus suggesting that they were deprived of education during the protracted wars.

According to the 1999 Cambodia Socio-Economic Survey (CSES 1999), adult literacy rate was 71.2 percent nationally. The rates for males and females were 82.9 percent and 61.1 percent, respectively.  The literacy rates were 87.3 percent in Phnom Penh, 72.0 percent in other urban areas and 69.2 percent in rural areas.

3-  Past performance of education targets

Government spending on education has declined.  This was because of the need to increase military-security spending to bring the political-military apparatus of the Khmer Rouge to a total collapse in 1997.  In 1998, the government's spending priorities shifted to organizing the elections.

The performance record of education targets has also been disappointing:

 

1996 Estimates

Targets by 2000

OUTCOME IN 1998

Education

Children will become functionally literate and numerate through completing primary school

Enrolment of female students in first grade of higher secondary education

13% of primary school and students complete Grade 5 in five years

19% of students in higher secondary education are female

65% of 12 year olds to complete Grade 6 and become functionally literate and numerate

50% of 16 year old girls to be enrolled in Grade 10

33% of 12 year olds completed Grade 6

34% of 16 year old girls enrolled in Grade 10

4-  Education sector strategy in I-PRSP

The RGC will increase spending on education, fully implement the Priority Action Program (PAP) for Education, improve sector performance and reduce parental contribution to education from the current level of 50 percent to 18 percent during the next five years.
Increased investment in basic education constitutes the necessary foundation for technical and vocational skills training and tertiary education. The education system will be repositioned to underpin Cambodia's market economy. Social and human resource development is very urgent within the context of the integration of Cambodia's economy into the region and the world.

Highest priority will be placed on female education to ensure gender equality.

The MEYS will introduce user fees at the university level from the 2000-2001 academic year to or formalize the currently widespread unofficial fees and contributions, with an exemption system to guarantee poor students access to high education and to increase the number of qualified primary school teachers in poor areas.  The formalization of the user fees at the primary/ secondary levels was not adopted as it was deemed to exclude an increasing number of poor children.

In the urban areas, access by young street children to public educational and health facilities will be widened in cooperation with NGOs.

Avoidance of aid duplication, promotion of rational allocation and efficient utilization of resources are expected to be achieved by the "incremental" introduction of sector-wide and other approaches in the education sector.

5-  Education policy matrix (2000-2002)

§       Increase public spending for education, in particular promote motivation and incentives of the teaching staff (e.g. location all in remote areas).

§       Expand access to Grade 1 to 9 to all school age children through provision of additional classrooms and equipment

§       Closing rural/urban and gender gaps at both primary and lower secondary levels.

§       Increased the shares (both wage and non wage) for basic education and target selective scholarships for the poorest in post basic education, while encouraging private sector involvement in upper secondary and tertiary education.

§       Decrease schooling costs to parents through addressing current informal payment by increasing teacher salaries.

§       Improve teaching and learning process through government's provision of textbooks, increased school operating budgets and additional resources for professional development;

§       Strengthen inspection of education quality and ensure rigorous monitoring of staffing norms.

NGO RECOMMENDATIONS[20]

Human resource development and capacity building are at the core of any development strategy.  The NGO community involved in education applauds the present stance of the Royal Government of Cambodia and the MEYS as they move toward a policy-driven, sector-wide program approach towards educational issues.  These groups seek partnership with government to create an education system that will bring Cambodia into relative parity with ASEAN countries.

Among key issues raised by NGOs are:  (a) allocation of more government resources to education;  (b)  high rate of repetition and drop-out, especially in grades one and two;  (c) HIV/AIDS which affect young adult groups from which the best teachers are drawn; (d) public administration reform; and (e) lack of coordination both of donor aid and among education departments within MEYS.  It should also be noted that Ministers of the social sectors are never invited to Consultative Group meetings.

Major recommendations are:

1.     Civil service/Public administration reform:

§       Increase salaries based on degrees and performance

§       Provide incentives for further study/training

§       Create a professional track in education based solely on technical competence without political interference

2.     Better coordination of both donor aid and within MEYS:

§       Promote ministry directed sector working groups comprising donor and government personnel

§       Facilitate provincial coordination and educational activities (MEYS and donors)

§       Open large issues of policy to public debate

3.     HIV/AIDS

§       Disseminate information at all levels

§       Increase government leadership in partnership with NGOs and donors.


 

WOMENS AND CHILD’S RIGHTS

WHAT THE I-PRSP[21] SAYS

1.  Dimensions of Poverty

Women comprise 51.8% of Cambodia’s population.  Of the total 2.18 million households, 25.7% are headed by women.  Of total 5.1 million ‘economically active persons’, 51.6% are women.  Over 65% of the farming population are women;  of these, 80% work in the agricultural sector.  About 46 percent of Cambodians describe themselves as unpaid family workers.

Social exclusion can be defined as the barriers preventing the poor from fully participating in the social mainstream of the society, due to such factors as illiteracy, lack of access to decision making, and corruption.

Adult literacy rate is 71.2 percent nationally. The rates for males and females are 82.9 percent and 61.1 percent respectively. Housewives are among the groups with high level of illiteracy. A MEYS/UNESCO survey also indicated that gender imbalances in the literate population are severe.  According to the survey, 47.6 percent of men are literate, while only about 22 percent of women can read and write.

Many women lack access to health services.  In 1996, more than 90% of rural births at home.  Access to reproductive health services mostly available only in urban areas.

Until recently many people were displaced as a result of armed conflicts. A large proportion were female heads of household with children.  Most of them lack appropriate skills and receive hardly any material and moral support. 

Over the past three decades Cambodia has been devastated by civil war and the genocidal regime, which resulted in war widows and orphans.  More importantly this affects the lives of children who represent nearly half of the population of Cambodia, in the worst cases leading them to be homeless, disabled, petty criminals or drug addicts.  Increasingly they are facing the influences of drug abuse. 

There is no difference in poverty rates between male and female-headed households, although women experience poverty more acutely than men because of their multiple burdens of child rearing and care and household work,  work to earn income and involvement in community activities. Female-headed households are at a disadvantage over those living in male-headed households in the urban areas.

War widows, orphans and street children are among Cambodia’s most disadvantaged groups.  They have poor access to education, training and employment opportunities.

Women's experience of poverty have consequences such as:  intergenerational transfer of poverty to children, especially girls;  substitution of women's work by young girls in household maintenance;  low investment in the education and health of the girl-child, particularly if a trade-off has to be made against the survival needs of the household.

In the urban areas, there are approximately 170,000 squatters living legally or illegally in the capital, of which more than 50 percent are children.  Among the most vulnerable are street children and families living in Phnom Penh and other urban areas.  Current estimates of the number of street children in Phnom Penh range from 10,000 to 20,000, of whom some 976 are abandoned children. Two thirds of the abandoned children come from the provinces.  The phenomenon of abandoned children has been caused by breaking relationships in the families and poverty.  They are increasingly facing with the problem of drugs, HIV/AIDS, prostitution, "Big Brothers", health risks and the feeling of no future and exclusion.

Corruption has been identified as Cambodia’s leading problem ahead of other major problems that include weak governance, problems with safety and crime, the cost of living, unemployment, the high cost of health care, political instability, the high cost of education, and drug abuse and trafficking.

2-  Review of the First Social-Economic Development Plan for 1996-2000 (SEDPI)  

Available data suggests that actual performance against SEDPI social development targets was disappointing. Overall social indicators nevertheless appear to be moving in the desired direction with decreases in the maternal mortality rate, infant mortality,  and under-5 mortality. HIV/AIDS has become a priority health problem.  Similarly education is moving in the desired direction, but at a rate of progress slower than anticipated. In health reform, one objective is to specifically target women, children, elderly and disabled people.  Rather than simply building more schools or clinics, however, the focus should include understanding of why the children of the poor may not be attending school and what policy measures are required to remedy this. Children of the poor, especially girls, do not go to school or drop out very early in school.  What is more alarming is that the rate of girls' enrollment and retention in school is getting lower over the years.

3-  Statement of Poverty Reduction Objectives and Strategies

The Royal Government's strategic motto is "Poverty reduction through high economic growth over the long term by ensuring environmental sustainability and social equity."  The main elements are:

Consolidation of peace, stability and social order

Investment promotion

Domestic resource mobilization

Allocating investment to priority sectors and improving agriculture

Building institutional capacity and strengthening good governance

Integration of the Cambodian economy into the region and the world

Human resource development

Consolidation of the partnership with the donor community and civil society.

The government recognizes that faster economic growth alone may not be enough to significantly reduce poverty in Cambodia because of the large and growing inequalities associated with observed growth patterns. Gender biases and illiteracy increase the likelihood that many of the poor will be unable to participate in economic growth. Broad-based growth will also need to be accompanied by an emphasis on improving the access of the poor to credit, education, health and infrastructure as well as drinking water and sanitation.

Land reform -  The RGC intends to conduct studies to examine how gender bias is manifested in the land policy and land registration system;  inheritance of land; land ownership arising from marriage; and land/property disposal in conflicts between husband and wife.

Urban poverty  -  The RGC will develop a new partnership with NGOs to improve the plight street children and families by co-funding supportive programs to enable them to be reintegrated into the society.  Attention will be given by the RGC in cooperation with NGOs to providing professional training and job placement for the adult street children and widening access by young street children to public educational and health facilities.

Coping with globalization  -  Economic integration per se, however, will not address the problem of poverty.  Benefits of a growing global economy have been unevenly distributed leading to wider economic disparities, the feminization of poverty, increased gender inequality, including through often deteriorating work conditions and unsafe working environments especially in the informal economy and rural areas. While globalization has brought greater economic opportunities and autonomy to some women, many others have been marginalized, due to deepening inequalities among and within countries, by depriving them from the benefits of this process.  Government interventions are needed to provide training, improve the skills, widen access to credit and help the vulnerable segment of the population.

Environmental protection -  It is important to design programs which preserve and utilise women's traditional ecological knowledge, including the traditional ecological knowledge of indigenous women in the management of natural resources and preservation of bio-diversity.

Health Policies  -   The MOH health strategies include the following: (i) promote women and child health through basic care service delivery for all women; and (ii) reduce the incidence of communicable disease such as malaria, diarrhea disease, and sexually transmitted disease, particularly HIV/AIDS.  Priority pro-poor health actions being proposed include providing integrated basic health services to the entire population with an emphasis on under-served areas and mothers and children.  To respond to the rapid spread of HIV/AIDS, the RGC has adopted a National Strategic Plan on AIDS prevention and control which will focus on improving prevention and public education, with a strong emphasis on the use of contraception;  the plan calls for an increasing role of community authorities and religious leaders in raising public awareness of this epidemic. There is an urgent need to upgrade and expand HIV/AIDS programs, especially in rural areas, and for women-headed households and children affected by HIV/AIDS.

Education Policies  -  Government’s policy priority for education is to ensure equitable access and quality improvement for 9 years of basic Education for All, particularly among girls, by around 2010.  It is essential to promote gender equality and inculcate equal value to the girl-child.  For post basic education Government’s priority is to enable more equitable access for the poorest, alongside a growing public/private partnership in financing and management.  Increased public spending on education will adopt clearly defined pro poor policies and strategies.   For example, the key strategic priority is to reduce direct and indirect costs to parents (the major access barrier) through a significant increase in performance based teacher salaries, thereby eliminating the need for informal parental payments to teachers.

Water and Sanitation  -  Rural wells will be expanded through increased government budget allocations and donor support with the focus on active participation of the local beneficiaries - particularly women who are primary collectors and users of water - in their operations and maintenance.

  

5-  Relevant Policy Matrix (2000-2002)

Education

·       Increase public spending for education

·       Expand access to Grade 1 to 9 to all school age children

·       Target selective scholarships for the poorest in post basic education, while encouraging private sector involvement in upper secondary and tertiary education

·       Decrease schooling costs to parents through addressing current informal payment by increasing teacher salaries

Health

·       Expand network of heath centers and referral hospitals

·       Provide minimum and complementary packages of health activities

·       Introduce cost-sharing partnerships with local communities through user fees with exemptions

Water and sanitation

·       Develop financing mechanisms that leverage private and community investments

·       Develop regulatory framework that encourages outsourcing of water utility operations to the private sector

Expenditure priorities

·       Provide adequate funding, meet budgetary targets for spending on basic health and education

·       Fully implement the Priority Action Program (PAP) for Health and Education

Land/Forestry Reform

·       Strengthen legal framework to enforce property rights and commence a systematic land titling

·       Develop and enforce measures to prevent encroachment of land by privileged groups

§       Develop community forestry, initiating mechanisms for the award of long term tenure rights to local communities and indigenous peoples.

Environment

§       Implement action plans outlined in the National Environmental Action Plan (NEAP) in particular bio-diversity and protected area management.

NGO RECOMMENDATIONS[22]

Although the Cambodian Constitution guarantees women equal rights with men, the ability of women to claim these rights has not been realized due to prevailing social patterns that afford women lower status than men.  Gender disparities are evident in access to health services, education, economic activities, and participation in policy and decision-making roles.

NGOs note with grave concern the problem on domestic violence, trafficking and forced prostitution of women and children.  Women victims of domestic violence receive no legal protection.  Forced prostitution and debt bondage threaten the physical, mental and social well-being of women and children, impinging upon their dignity and integrity as human beings.  Although several laws and regulations regarding trafficking, immigration and temporary migration have been developed, proper implementation remains weak.

The government needs to take action to ensure the protection of women employed in the industrial sector.  About six out of ten garment workers come from rural areas;  roughly 90% are young women.  The hotel industry has a similar labor profile.  Wages of garment workers are very low and not enough for them to live decently in the city.   In order to survive, garment workers need to work overtime (12-15 hours/day), rent cheap rooms in unsanitary conditions, not eat well-balance food.  In the workplace, labor violations include: lack of security of tenure (no employment contracts),  non-payment of minimum wage, occupational safety hazards, security (especially for women in night work), sexual harassment.

Among hilltribe communities, the natural environment is an essential and integral part of people’s livelihoods.  Men and women depend on nature and its resources.  With the presence of logging concessions in their communities, indigenous women speak out against the threat to their livelihoods and encroachment into culturally significant and sacred forest areas.  Moreover, hilltribe communities are increasingly being integrated into the market economy.  Indigenous women bewail that if they lose their lands and forests, they cannot compete in the marketplace.

 

Three decades of civil war affect the lives of children who represent nearly half of the population of Cambodia, and in the worst cases leads them to be malnourished, working as prostitutes, homeless, disabled, petty criminals, drug addicts, or children affected by HIV/AIDS.  The reconstruction and development of the country should gradually move forward and the future of Cambodia depends on its children.

NGOs recommend the following:

·       Encourage the passage of laws dealing with rape, sexual harassment, domestic violence and prostitution.

·       Encourage the raising of public awareness about all forms of violence against women.

·       Genuinely commit to the integration of women and women’s decision-making into policy formulation at all levels.

·       Introduce and enforce laws that protect women in the workplace -- e.g. minimum wage, sexual harassment, prohibition of night work.

·       Promote community participation in forest management, including ensuring access of indigenous women in decision-making processes.

·       Provide sufficient national budget allocation for education.

·       Establish more health centers and motivate nurses to provide good health care services at the community level through increased salaries and more effective training.

·       Introduce and enforce a compulsory national birth registration law.

·       Tackle the issue of adoption urgently to protect the best interests of the child.

·       Establish a national juvenile justice system nationwide.

·       Prevent the influx of narcotic drugs and prohibit the sale of glue to children.


 

INDUSTRIAL WORKERS & URBAN POOR 

WHAT THE I-PRSP[23] SAYS

1-    Urban Poverty and Unemployment

The 1999 poverty rates are highest in rural sector and lowest in Phnom Penh. 90.5 percent of people living below the poverty line live in rural areas, 7.2 percent live in other urban areas and 2.3 percent live in Phnom Penh. However, the inequalities among the poor are higher for other urban areas than for the rural sector. Some urban areas outside Phnom Penh have a significant minority of their population with very low living standards.  Poverty rate in Phnom Penh is lower than for the other regions.

In 1999, only 15 percent of employed Cambodians were in wage employment (i.e. in the formal sector), though the share is as high as 53 percent in Phnom Penh and as low as 11 percent in rural areas.  For wage earners, average monthly salary was US$43.  About 46 percent describe themselves as unpaid family workers. Open unemployment is however low, since people cannot otherwise survive. 

Against a background of prolonged conflict and internal displacement the current level of poverty in Cambodia largely results from inadequate opportunities, including in the urban informal sector.

The poor lack access to education leaving them with few marketable skills and an inability to participate in modern production processes and obtain access to credit. 

A particular characteristic of urban poverty is the presence of about 35,000 squatters families in all seven wards of Phnom Penh. There are approximately 170,000 squatters living legally or illegally in the capital, of which more than 50 percent are children. Their main occupations are micro venders, laborers, moto-taxi drivers, soldiers and police officers.  Their average daily income is about 5,000 to 7,000 CRs per household, which is much higher than the average household income in the rural areas.  However, squatters are facing many problems, such as high costs of living, indebtedness, the lack of water, sanitation and drainage etc.  Among the most vulnerable are street children and families living in Phnom Penh and other urban areas. 

2-  Review of Relevant Existing Strategies and Performance

The Royal Government's Political Platform  -  The objectives of the government's economic policy are to promote sustainable development, maintain macroeconomic stability and foster durable management of natural resources.   The economic platform sets the following four main goals: accelerate economic growth to improve the living standards and create employment for the population; maintain price and exchange rate stability, and a single-digit inflation; promote exports to reduce unemployment and trade deficit; and alleviate poverty of the population.

Increasing spending and improving performance of priority sectors  -  A common theme of government policies is increased public spending on the social sectors, in particular basic education and health services. The Priority Action Program (PAP) comprises rigorously selected program activities of strategic importance, such as primary school and basic health.

Box 1.  The Priority of Productive Employment Generation

While the emphasis on investing in rural areas cannot in general be faulted it ignores that urban investment can also be pro-poor if it creates productive employment for surplus rural labor.  Growth of labor-intensive manufacturing (e.g., garment production) has a dual impact on poverty.  The current competitiveness of Cambodia’s textile and apparel exports may provide a solid foundation for increasing real income per capita and hence reducing poverty.  The development of labor-intensive manufacturing by drawing labor from rural areas can also generate increases in agricultural productivity and incomes thereby reducing poverty at its most potent source.

Employment generation is a priority because about 140,000 jobs have to be created each year to accommodate new labor market entrants, which has to be added to those new job seekers generated by planned demobilization of the armed services and reform of public administration.

Employment is growing much faster than real production in the agricultural sector, as agriculture is absorbing much of the increase in the labor force resulting in agricultural productivity declining rapidly.  Farmers are becoming poorer, as the size of farmland per household is decreased making them also more vulnerable to food insecurity. The dilemma is that programs aimed at increasing agricultural labor productivity and hence economic growth generally could have an adverse impact on employment if industry and services are unable to take up the slack.  The key will be the ability of the authorities to attract increased private investment in labor intensive employment in non-agricultural sectors.

Land Policy  -           Land administration, management and distribution are the priority sectors which require immediate attention of policy makers.  Improving land administration will provide land tenure security to all eligible landowners and develop an effective, efficient and transparent land registration system.  A legal framework for land management will include zoning regulations, urban regulations, a construction code, expropriation law, and regulations for the transfer of public estate to private property.

Policy Performance and Poverty Trends  -  Even if overall growth record has been good in the 1990s (with exception of 1997-8), sectoral distribution of growth has been quite uneven.  More work is needed to understand sources of growth and competitiveness in Cambodian economy.

·       Agriculture keeps accounting for over 40 % of GDP.

·       The industrial sector displays a remarkable dynamism which reflects the country’s openness:

Changes in Income Poverty  -  Poverty incidence appears to fall from 37 percent to just under 30 percent in urban areas, excluding Phnom Penh where it remained at 11 percent, and fell slightly in rural areas from 43 to 40 percent. Per capita income dropped from US$276 in 1997 to US$268 in 1999.

3-  Statement of Relevant Poverty Reduction Objectives and Strategies

The Royal Government's strategic motto is "Poverty reduction through high economic growth over the long term by ensuring environmental sustainability and social equity."  The main elements are:

Consolidation of peace, stability and social order

Investment promotion

Domestic resource mobilization

Allocating investment to priority sectors and improving agriculture

Building institutional capacity and strengthening good governance

Integration of the Cambodian economy into the region and the world

Human resource development

Consolidation of the partnership with the donor community and civil society.

·       The government recognises that faster economic growth alone may not be enough to significantly reduce poverty.  Of critical importance is the ability of economic growth to create jobs particularly in the context of a growing labor force.

·       Cambodia needs massive influx of investment during the next few years to generate economic energy and accelerate the speed for the take-off. Attention is accorded to ensuring a social environment conducive to stability, security, transparency, accountability and predictability, which will favor and promote investment in Cambodia.

·       Integration of the Cambodian economy into the region and the world with the aim to increase the economies of scale by expanding the markets, improve factor mobility and reduce the prices of imported and exported products.  This will also increase the attractiveness of Cambodia to investors, promote higher factor productivity, and create and develop comparative advantages of the nation through the participation in international competition and specialization.

·       Investment in human capital, especially investment in education, vocational training, job creation and health, is key to ensuring economic take-off and reducing poverty. 

Industrial development  -  A poverty reduction strategy should not be overly reliant on the development of agricultural sector, given poor performance of the sector in the past.  Industrial and service sector development could become a powerful locomotive to pull Cambodia out of the shackles of poverty.

The RGC has adopted the following industrial development policies: Export-oriented, natural-resource-based, labor-intensive and tourism-related industries --

·       The government's economic strategy is to focus on the heavy investment in the development of infrastructure, while striving to ensure proper environment for domestic and foreign direct investment. 

·       Starting out with labor-intensive manufacturing for export, such as garment and textiles, Cambodia's industry can progressively move towards more technologically-sophisticated and capital-using activities.  Since mid-1990s garment industry recorded a dramatic growth rate, creating employment for tens of thousands of workers, many of whom come from the rural areas. The RGC has made considerable progress in the enforcement of labor rights which includes the passage of the 1997 Labor Law that is consistent with international standards, the government's decision to agree to labor rights provisions in the bilateral textile agreement with the United States, and other regulatory improvements underway.

·       The industrial and manufacturing sector (especially garments) is recently growing at a slower pace. Therefore, the RGC has explored the possibility of focusing on the development of electronics and the toy industry, a labor-intensive sector, in which Cambodia has enjoyed a comparative advantage. 

·       The RGC's strategy is to develop a growth corridor linking Phnom Penh (financial and industrial center) to Siem Reap (tourism industry), Sihanoukville (export processing zones) and Kompong Cham (agro-business) and promote special development zones in border areas.

·       Attention is given by the RGC to reap the benefits from various ASEAN economic initiatives, including the ASEAN Industrial Cooperation Scheme (AICO) and to take advantage of the loss by some more developed regional countries of the MFN and GSP status.

Coping with Globalization  -  Cambodia should continue to strengthen its international relations and deepen its commitment to open markets and trade.  Economic integration per se, however, will not address the problem of poverty.  Benefits of a growing global economy have been unevenly distributed leading to wider economic disparities, the feminization of poverty, increased gender inequality, including through often deteriorating work conditions and unsafe working environments especially in the informal economy and rural areas. Government interventions are needed to provide training, improve the skills, widen access to credit and help the vulnerable segment of the population to compete in this global network.

Addressing Urban Poverty  -  A well-targeted program is required to address urban poverty.  The RGC is committed to work towards protecting and improving the quality of life of the urban poor through development and management of appropriate social services. The Ministry of Social Actions, Labor, Vocational Training and Youth Rehabilitation (MOSALVY) and the Ministry of Women's and Veterans' Affairs (MWVA) could play a crucial role in addressing urban poverty by co-financing poverty reduction programs with NGOs, such as Urban Sector Group (USG) to address the problems of squatters, Mith Samlanh/ Friends to work with street children and Youth With A Mission (YWAM) to work with street families.  More attention will be given by the RGC to assist the squatters by providing micro credit and vocational training and helping with job placement.  Special targeted programs should be given to increase their access to health, education and basic services, such as water, electricity. Their legal status should be addressed to prevent arbitrary eviction. The RGC seeks to develop a new partnership with NGOs to improve the plight street children and families by co-funding supportive programs to enable them to be reintegrated into the society.  Attention will be given by the RGC in cooperation with NGOs to providing professional training and job placement for the adult street children and widening access by young street children to public educational and health facilities.

Embarking on Land Reform  -  Land reform will focus on land distribution, land management and land administration. The core program of the land reform includes the development of a national land policy, improved management of the national land stock, commencement of systematic land titling, tax reform, the establishment of a legal framework to enforce property rights, the establishment of provincial, municipal and national master plans and zoning.

Safety-net Type Programs  -  The government social safety net programs are limited in scope and in impact on the poor.  The RGC social intervention budget is insufficient to meet the growing needs for social security of the population. Hence, the poor and the vulnerable rely on informal transfers, the Cambodian Red Cross, donors/NGO programs, and individual coping strategies. Social support-interventions promote basic primary and non-formal education, skills training, health, and support vulnerable groups including street children, amputees, and orphans.

4-  Relevant Policy Matrix (2000-2002)

Fiscal reform

·       Revise Law on Investment to rationalize tax and duty exemptions

Expenditure priorities

·       Ensure strict implementation of annual Public Investment Program

·       Provide adequate funding, meet budgetary targets for spending on basic health and education

·       Fully implement the Priority Action Program (PAP) for Health and Education

External sector policies

·       Formulate procedures to promote market access for Cambodian products in EU countries

·       Encourage the establishment of business and producers’ associations

·       Adopt the Export Processing Zone Law to promote international trade

Land Reform

·       Develop a national land policy and improve the management of the national land stock

·       Strengthen legal framework to enforce property rights and commence a systematic land titling

·       Develop and enforce measures to prevent encroachment of land by privileged groups

Improved infrastructure

·       Create an efficient power sector

·       Develop and implement a comprehensive transport sector policy

Education

·       Increase public spending for education

·       Expand access to Grade 1 to 9 to all school age children

·       Target selective scholarships for the poorest in post basic education, while encouraging private sector involvement in upper secondary and tertiary education

·       Decrease schooling costs to parents through addressing current informal payment by increasing teacher salaries

Health

·       Expand network of heath centers and referral hospitals

·       Provide minimum and complementary packages of health activities

·       Introduce cost-sharing partnerships with local communities through user fees with exemptions

Water and sanitation

·       Develop financing mechanisms that leverage private and community investments

·       Develop regulatory framework that encourages outsourcing of water utility operations to the private sector

NGO/CIVIL SOCIETY RECOMMENDATIONS

Industrial (Garment) Workers[24]

About six out of ten garment workers come from rural areas;  roughly 90% are young women.  The hotel industry has a similar labor profile.  Garment workers complain that their wages ($45/month) are very low and not enough for them to live decently in the city and send money back home to their families.   In order to survive, garment workers need to work overtime (12-15 hours/day) and rent cheap rooms with unsanitary conditions -- garbage, foul smell, mosquitoes. They cannot afford to eat well-balanced food and they come home tired from work simply to sleep.  When they fall ill, they cannot afford to pay for medicine and other health expenses.  To reduce their poverty, garment workers say that their salaries must be increased and living conditions improved.

In the workplace, some factory owners violate labor rules and regulations.  These violations include: lack of security of tenure (no employment contracts),  non-payment of minimum wage, occupational safety hazards, security (especially for women in night work), sexual harassment, loss of income when absent or on leave, no free time (Monday to Sunday work).

Labor NGOs aim to promote social justice and economic equity through increased awareness of labor rights, freedom of association and formation of independent workers organizations that seek payment of living wages so that workers can live a life with dignity.  Their goal is a peaceful and prosperous Cambodia. There are some 106 trade unions (management and workers) in all sectors in Cambodia, including 77 unions in the garment sector alone.

Industrial workers and labor NGOs recommend the following:

·       The goal of economic development should address specific concerns to create employment, improve food production, equitable development, and set basic minimum wage.

·       Macro-economic policies should promote social justice and economic rights, address corruption in government and increase the productivity of civil servants.

·       Review the export-oriented policy that employs very cheap Cambodian labor, but grants huge tax exemptions to foreign investors.

·       Foreign investments should no longer be located in Phnom Penh but also in other provinces to prevent more rural-urban migration.

·       Job creation should also focus on raising agricultural productivity, building farm to market roads, and a more pro-active government policy on exporting farmers’ products.

·       Provide more spending on appropriate infrastructure and basic services in rural areas.

·       Implementing rules and regulations for the 1997 Labor Law.  Enforce the Labor Law. Prosecute government officials who accept bribe from factory owners who violate labor laws.

·       Address urgent issues in the labor sector -  poverty, harassment, low wages, unemployment, freedom of association, collective bargaining agreement, child labor, occupational safety.

·       Minimum wage regulation only exists in the garments industry ($45/month) and is only a tripartite agreement among the Ministry of Labor, employers, union.

·       Provide training on labor laws in Cambodia to foreign investors and factory owners.

·       Foreign investors and factory owners should recognize trade unions and have a cooperative partnership with unions to achieve common goals.

·       Government should make an audit of actual production in factories and investigate corruption in quota markets in the garment industry.  

·       Small business entrepreneurs and self-employed persons in rural areas must also be organized to address issues of excessive taxation and the high cost of doing business.

·       Industrial workers should be represented in key decision-making mechanisms of governance.

Urban Poor[25]

Squatter urban poor communities contend with problems of poverty, inadequate incomes, lack of tenure security and evictions, lack of access to basic services (e.g. water, electricity), and high costs of these services when available.  Urban poor squatters have no secure titles to the land they occupy and hence are vulnerable to forced relocation.  Government-owned lands are being bought by rich people or investors for speculation purposes.  Moreover, only the rich can afford to pay direct connection to utilities;  the poor usually have to pay from three to ten times for water retailed through middlemen.

Despite the huge amounts of aid from the donors, including in the social sectors, some NGOs wonder why poor people’s lives have not improved.  NGOs implement self-help projects that address the needs of the poor directly, for instance, in providing them with basic services such as road repair, drainage construction, building footbridges, literacy classes and garbage removal. Some NGO projects also provide a greater  understanding of the law and  human rights;  others address credit needs of urban poor communities.  These community-based projects do not require large sums of money. 

NGOs recommend the following:

·       A clearer government policy on urban land reform, including the definition of ‘squatters’ and clear legal basis for evictions.

·       Promote community-based initiatives to increase access of urban poor communities to basic services like water and electricity.

·       Mandatory public hearings before any rate increase in water and electricity.

·       Focus on rural development to stem the tide of rural-urban migration.

·       Eliminate corruption and partisanship in the government.

·       Vocational skills training should be given so that the urban poor can earn more income and improve their living conditions

·       Establish health centers and schools near urban poor communities.

·       Enforce constitutional mandate of free education up to ninth grade;  increase teachers’ salaries.

·       Channel a certain amount of poverty reduction funds directly to NGOs, including human rights NGOs.

·       In monitoring government actions to reduce poverty, to whom should NGOs report?


GOOD GOVERNANCE & HUMAN RIGHTS

WHAT THE I-PRSP[26] SAYS

1-  Poverty and Social Exclusion

The poor can be defined differently and priority is given to different groups of the poor.  Poverty is sometimes defined as a lack of income or consumption and lack of opportunities.  Broader dimensions include poor education and health outcomes (low capabilities), vulnerability (livelihood insecurity), powerlessness and discrimination against women and ethnic groups. The 1999 Poverty Profile shows that an estimated 35.9 percent of the population is poor (based on income-consumption). Poverty rates are highest in rural sector and lowest in Phnom Penh. 90.5 percent of people living below the poverty line live in rural areas, 7.2 percent live in other urban areas and 2.3 percent live in Phnom Penh.

Social exclusion can be defined as the barriers preventing the poor from fully participating in the social mainstream of the society, due to such factors as illiteracy, lack of access to decision making, and corruption.

The lack of access to decision making has prevented the poor from actively participating in community activities, created the gaps between government policies and the status of its implementation, and resulted in the conflicts between the local authorities and local population.  Many existing laws and regulations were adopted without consultations with the local communities.  Therefore, the interests of the poor are not always protected.  New problems are emerging as Cambodia moves upward on the scale of economic development, such as land disputes. 

Corruption has been identified as Cambodia’s leading problem ahead of other major problems that include weak governance, problems with safety and crime, the cost of living, unemployment, the high cost of health care, political instability, the high cost of education, and drug abuse and trafficking. Pervasive corruption is associated with other indications of weak governance.

Cambodia's most disadvantaged groups consist of internally-displaced people and returned refugees, war widows, orphans, street children, squatters, people with disabilities and isolated ethnic minorities.   They have poor access to education, training and employment opportunities. 

2-  Review of Relevant Existing Strategies and Performance

The Government's Triangle Strategy - The first side of this strategic triangle is building peace, restoring stability and maintaining security for the nation and people. The second side of the strategic triangle is Cambodia's integration into the region and normalization of our relationships with the international community. The third side of the Government's strategic triangle is to promote development based on the favorable conditions created by the implementation of various policies.  The key areas of the reform programs and platform consist of military and police demobilization and public sector reform, including reforms of the civil service and the judiciary, aimed at strengthening democracy, and upholding respect for human rights. 

Policy Framework Paper  - The key elements of the strategy are: strengthening revenue collections and enhancing the transparency of fiscal operations, combined with reforms of the civil service and military; increasing public investment with a view to rehabilitating the country's poor social and physical infrastructure, and shifting spending priorities to health, education, agriculture and rural development; and strengthening legal framework and economic institutions.

Governance  -  The RGC has identified two categories of governance reform where action is critical over the near- and the medium-term.  A detailed governance reform program is outlined in the draft Governance Action Plan (GAP) submitted by the RGC to the recent CG Meeting. The first category of actions involves cross-cutting areas where improvements are pre-requisites for a well functioning government for poverty reduction. They are: (1) judicial and legal reform; (2) public finance; (3) administrative reform; and (4) anti-corruption. Key governance improvement issues with the potential for swifter poverty reduction include first strengthening the ability of the RGC to articulate strategy and policy and to implement it effectively.  This requires a sustained focus on improving the links between policy making, medium term expenditure planning, aid co-ordination and revenue raising and the allocation of scarce resources. In addition to these cross-cutting areas, the RGC has identified demobilization of the armed forces as a national priority.  The success of demobilization programs will allow the RGC to shift budgetary resources from defense and security to social and economic sectors.

3-  Statement of Relevant Poverty Reduction Objectives and Strategies

The Royal Government's strategic motto is "Poverty reduction through high economic growth over the long term by ensuring environmental sustainability and social equity."  The main elements are:

Consolidation of peace, stability and social order

Investment promotion

Domestic resource mobilization

Allocating investment to priority sectors and improving agriculture

Building institutional capacity and strengthening good governance

Integration of the Cambodian economy into the region and the world

Human resource development

Consolidation of the partnership with the donor community and civil society.

The consolidation of peace, stability and social order by taking concrete steps to strengthen the rule of law, uphold human rights, promote democracy with the view to establishing favorable political and security environment for sustainable development over the long term.

Reform of fiscal policy through actions taken to increase domestic resource mobilization and implement budget reforms aimed at enhancing and rationalizing public expenditure.  The thrust of this policy is to gradually cut defense and security expenditures and earmark the savings for public investment in physical infrastructure and social sectors. 

Building institutional capacity and strengthening good governance is key to the concept of sustainable development with equity.  This is also linked to the establishment of the rule of law, administrative reforms, the promotion of transparency and accountability and the combat against corruption, which will have direct impact on poverty alleviation and trickle down economic growth to all strata of the society.

 

Maintaining and strengthening partnership with the donor community, NGOs and the civil society.  Attention is accorded by the Royal Government to maintenance and the strengthening of partnership with the donor community and NGOs, that have provided invaluable technical and financial assistance to Cambodia over the last five years.

Promoting Opportunities

Advancing Rural Development and Decentralisation  -  The RGC has proposed a strategy that is based on the bottom-up, integrated, participatory, decentralized rural development.  The objectives are to expand the number of Village Development Committees (VDCs) to cover up to 69 percent of all villages by the end of 2000. This will allow active community participation in grassroots institutions and increase the ownership of development projects, by shifting decision-making and accountability closer to individuals, households and communities. The RGC has planned to further decentralize its system of administration and introduce financial devolution at the grassroots level by submitting to the Parliament a Commune Administration Law.  The elections are scheduled for late 2001 to elect Commune Councils, which will have their own budget consisting of tax and non-tax revenues and a block grant from the national budget.

Generating Empowerment

Better Governance  -  Priority actions over the short to medium term are: Establishing priority groups of government officials to improve service delivery and increase productivity; introduce decentralization and deconcentration of the system of administration to increase accessibility of essential services to the people; accelerate the reform of the state by implementing action plans in demobilization, administrative and fiscal reforms with a view to strengthening the rule of law and consolidating the foundation of the market economy; deepening the judicial reform and establishing a national program for judicial reform; and implement the measures outlined in the Governance Action Plan (GAP).

Law Enforcement  -  A priority of the government is the development of an impartial, effective and efficient legal and judiciary process.  This issue concerns personal security from violence and threats both within and outside the household together with access to justice and protection of property rights and enforcement of contracts.  It requires a review of laws and regulations that may adversely affect the poor and actions to remedy them including issues of land reform, land tenure, land access, gender equity and the rule of law. While reviewing laws and regulations of land, it is indispensable to raise awareness of the rural population about the notion of land ownership. Moreover, t is imperative to introduce a comprehensive and consistent framework for adopting needed laws and regulations.  Improving the access to land by the poor will contribute to poverty alleviation and income generation.

In addition to land reform, priority interventions should be targeted towards strengthening regulatory and enforcement capacity, and effective and competent dispute settlement processes, including identification of the status of landless people, expansion of agricultural land through land clearance, and prevention of land usurpation, encroachment by influential groups and concentration of land by a single owner. Cadastral administration needs to be strengthened by ensuring the adoption and strict enforcement of the new land law, establishing a transparent system of land titling and land registration, enhancing the institutional capacity of land administration and protecting the state estate.  Moreover, in drafting laws special attention should be given to their prospective impact on women.  Legal reform, maintenance of macroeconomic stability and provision of core infrastructure will provide a boost to private sector development.

Fostering enabling environment for NGOs  -  NGOs can be partners in development and poverty reduction with the RGC at all levels.  To do so, a transparent and supportive framework for collaboration is needed.  The proposed NGO Law should provide clear guidelines for NGO operations so that both NGOs and government officials clearly understand the operating environment.  A supportive NGO law would enable NGOs to contribute to poverty reduction by allowing them to respond quickly and creatively to problem situations when they occur.  Programs first developed by NGOs are often adopted by government to greater benefit of the overall population.  Government regulation should structure a framework that provide adequate information on development activities and the fiscal impact of NGOs on the country's development and encourage self-regulation.

Cross-Cutting Issues

Relationships with Donors and the Move to Partnership  -  Partnership implies long-term transformation on the part of all the partners  - the RGC in combination with civil society, the private sector and the International Donor Community. The RGC will use Priority Action Programs (PAPs) in education, health, rural development, and agriculture;  however, fund leakage and corruption should be addressed to move toward a consolidated budget by incorporating government and donor resources. All partners must seek innovative and effective ways to transfer know-how and develop nationally sustainable capacities. The need to improve aid co-ordination and aid management is a priority, so that more resources are channeled to priority areas. The RGC has piloted the partnership approach in the PRSP process, which will be closely linked to the formulation of the Second Five-Year Socio-Economic Development Plan. 

Revenue mobilization  -  Poverty reduction efforts are severely constrained by weak revenue mobilization efforts.  The RGC has taken steps toward the establishment of a customs administration based on international standards and procedures. The Government is also committed to further upgrading legislation, streamlining customs control, combating smuggling, developing infrastructure for trade and statistics and information reporting, and developing a modern customs tax administration. Actions have already been taken to enhance the revenue system by introducing a VAT for 1500 large taxpayers. Revenue mobilization will be improved through: rigorous implementation of the VAT; strict limitations on tax incentives; increased efforts to recover arrears from the private sector; and the enhancement and full transfer to the Treasury of non-tax revenues.  Moreover, the RGC is seeking to develop a regulatory framework for tax on profits and promote information exchange among tax-related agencies.

4-  Relevant Policy Matrix (2000-2002)

Fiscal Reform  -  Revenue mobilization

·       Strengthen revenue administration and governance

·       Strengthen customs administration.

·       Fully transfer non-tax revenue collection from line ministries to the Treasury.

·       Reinforce procedures to collect tax and non-tax arrears.

Expenditure Management

·       Enhance the effectiveness of expenditure management

·       Strengthen budgetary procedures to strictly limit spending decisions outside the budget framework.

·       Expenditure rationalization

·       Fully operationalize the Budget and Enforcement Center at MEF to streamline the procedures to screen the bids for funding and facilitate cash disbursements to key social and economic sectors.

·       Establish responsibility for performance at the level of spending units in parallel with the strengthening of technical, financial and managerial capabilities.

Private Sector Development and Public Enterprise Reform

·       Creating enabling development for private sector development

·       Add comprehensive Commercial Code and implementing regulations and required subdecrees.

·       Corporatise the eleven utilities and infrastructure state-owned enterprises to remain in the public sector.

·       Streamline the public enterprise sector

·       Implement the restructuring plans for seven rubber plantations.

Empowerment

·       Measures to reduce corruption

·       Adopt a sub-decree on internal audit.

·       Strengthen internal audit departments of the line ministries.

·       Establish and operationalize the National Audit Authority.

·       Review arrangements for enforcing the sub-decrees on public procurement.

·       Governance

·       Finalize the Governance Action Plan.

·       Implement the Gap.

·       Strengthen the rule of law and transparency including modernizing the judiciary.

·       Continue to expand the coverage of VDCs.

·       Strictly comply with the December 1997 Prime Ministerial Order requiring explicit approval of the financial control by the MEF of all contracts involving state assets.

·       Establish proper audit/accounting systems.

Cross-cutting issues

·       Civil service reform

·       Rationalize civil service through elimination of redundant workers, normal attrition in line with sector personnel management strategies towards equality, efficiency and overall performance of  civil service.

·       Validate the result of civil service census through completion of identification procedures.

·       Adopt and implement the action plan for civil service reform.

·       Demobilization

·       Complete the program for demobilization based on the results of the pilot phase.

·       Implement Demobilization and reintegration program under the Cambodia Veterans Assistance Program (CVAP).

NGO RECOMMENDATIONS[27]

Promotion of the Rule of Law

Adherence to the rule of law is a fundamental precondition for the realization of development in all sectors.  The absence of the rule of law continues to constrain market development, public confidence in the legal system, and the security and general well-being of the people.

A competent and independent judiciary is vital to development.  The lack of judicial independence and level of corruption impedes people’s confidence in formal conflict resolution and encourages reliance on informal and sometimes violent means of dispute resolution.  Moreover, the absence of an independent judiciary discourages foreign investment and the development of a market economy.

Whilst a number of laws and regulations have been drafted there is little public information available about the laws and the responsible implementing agencies, and little or no opportunity for public comment.  NGOs recommend the following:

·       Supreme Council of Magistrate be strengthened and depoliticized in order to decrease impunity and corruption in courts.

·       Constitutional Council be provided with the resources to properly fulfill its mandate.

·       Widespread dissemination of information about laws and regulations.

·       Incorporate NGO input on draft laws (e.g., Criminal Code, Criminal Procedure Law) to ensure adherence to the rule of law and respect for human rights.

·       Increased efforts to strengthen the independence and quality of the judiciary.

Promotion of Public Participation in State Affairs

The government is increasingly being encouraged to engage civil society in its implementation of reform measures.  This is a welcome development.  A prerequisite to meaningful public participation is the dissemination of information so that participation can be genuinely informed.  NGOs recommend the following:

·       Direct involvement of local communities in the development of policies and laws that impact upon their lives.

·       Government publicize the mandates, rules and procedures of all executive institutions, especially in rural areas.

·       Facilitate public dialogue on issues of national concerns, such as National Reconciliation and a Khmer Rouge trial.

·       Promote freedom of expression and freedom of the press.

·       Donors be models of democratic process and promote public participation and openness when providing technical assistance.

Public Administration Reform

The government’s ability to implement reform policies and deliver basic goods and services is crippled by a weak public administration.  The civil service is overstaffed.  Low salaries in the public sector and a low level of technical and managerial skills continue to impede the performance of civil servants.  Corruption is widespread, undermining public confidence in the system of governance.  NGOs commend the government’s goal of comprehensive public sector reform with emphasis on programs that will ensure the public sector focuses on a more limited yet appropriate agenda with a smaller workforce that will be better motivated and paid.  NGOs express concern, however, that women are not disproportionately the subject of efforts to reduce civil service staff.  NGOs recommend the following:

·       Introduction of a realistic government salary linking remuneration to an impartial performance-based scale.

·       Make concerted efforts to address corruption, promote transparency and accountability within the public sector, including the passage of anti-corruption legislation.

Human Rights

NGOs further recommend the following:

·       Formation of a formal donor working group on the rule of law and human rights.

·       Allocate funds and technical assistance to create an independent police academy.

·       Support the establishment of an independent human rights commission.


 

PRSP - CAPACITY BUILDING, MONITORING AND WORK PLAN

WHAT THE I-PRSP[28] SAYS

One of the most important parts of the I-PRSP process is to ensure a sound institutional capacity for the implementation of poverty reduction strategies.  During the first term of office, the RGC took considerable strides to build and strengthen the capacity of government ministries to improve public service delivery.  Government ministries, including the Ministry of Social Affairs, Labor, Vocational Training and Youth Rehabilitation (MOSALVY) and the Ministry of Women's and Veterans' Affairs (MWVA), are faced with limited human and financial resources to develop a social service system.  More attention therefore should be paid to inter-ministerial coordination in carrying out poverty reduction strategies, contained in the I-PRSP.  Some ministries are well equipped to face the challenges, while others still rely on external resource people.  In-service training across various ministries is crucial for the success of the I-PRSP process. The capacity to provide assistance to social welfare, child welfare, the rehabilitation of disabled persons and the re-insertion of the most vulnerable groups should be reviewed as part of the administrative reform program of the RGC.

The policies needed to swiftly reduce poverty are generally well known within and beyond the Government.  The key missing element is effective implementation of poverty reduction policies and the monitoring and evaluation of their achievement/underachievement.  The emphasis of the PRSP must be on action and the setting and monitoring of poverty reduction targets that are relevant, simple and easily updated as and when required.  Poverty reduction strategies will remain on the paper if there is no mechanism in place to implement and to monitor them.  Poverty monitoring needs to be systemized.  Key indicators recommended by the Poverty Profile of Cambodia, 1999 are as follows: [29]

Aggregated:

·       Poverty headcount index by region and household head and occupation;

·       Gross and net primary and secondary school enrollment;

·       Number of outpatient healthcare visits per 1,000 people;

·       Number of hospital admissions;

·       Percent of children ever born who have died;

·       Percent of children under age two who have vaccination card;

Household:

·       Floor area per household members;

·       Distance to the main source of drinking water;

·       Household main source of lighting;

·       Household main source of drinking water;

·       Average monthly wage from primary occupation;

·       Toilet located in dwelling;

·       Value of land owned;

·       Number of livestock owned;

·       Value of outstanding loans;

The monitoring and analysis of poverty needs to be expanded to improve understanding of the effects of government interventions and reforms on various income groups and on respective gender.  This should also apply to vulnerable groups such as: forest dependents, women experiencing domestic violence, abandoned or parentless children, rural poor families, urban squatter families, street children and returnees.  This could include better understanding of the constraints and incentives faced by the poor and the ways in which various income groups respond to government policies and programs as well as the distribution effects of tax reforms, public expenditures and specific poverty alleviation programs.

ARRANGEMENTS FOR FULL PRSP

Overall responsibility for the full PRSP will pass from the Ministry of Economy and Finance (MEF) to the Ministry of Planning (MOP), which is also responsible for the preparation of the SEDP.  For the process of preparing the full PRSP, it is envisaged that it will emerge from the ongoing preparation of the Second Socio-economic Development Plan 2001-2005, which is scheduled for completion by the end of 2000. 

The RGC will seek to consolidate the processes and products as far as possible, bearing in mind the essential features of a full PRSP, namely:  (i)  Country ownership;  (ii)  Poverty focus;  (iii)  Consultative process;  (iv)  Systematic monitoring of outcomes.  The expected timeframe for preparation of the full PRSP is 12 months.


MATRIX OF CROSS-CUTTING ISSUES

1.  Reform the public sector:

§       Introduce a realistic government salary system, linked to an impartial performance-based scale.

§       Pass and implement an effective anti-corruption law.

§       Reassess the respective roles of the public sector, private sector and civil society organisations (including local communities) in the delivery of basic services and management of natural resources.

2.  Reform the judiciary:

§       Increase efforts to strengthen the independence and quality of the judiciary and Supreme Council of Magistracy, and decrease impunity and corruption in the courts.

3. Promote peace and public security:

§       Strengthen peace and public security, reform the police and military, and reduce the prevalence of weapons in the community.

4. Implement financial reforms:

§       Redirect expenditures from the military to the social sectors (especially health and education).

§       Reform the way in which the Ministry of Economy and Finance disburses funds to the line ministries and provinces.

5. Promote rural development:

§       Decentralise local development planning, and allow local communities a greater say in strategies to combat poverty.

§       Increase resource allocation to rural areas to improve physical infrastructure, agricultural productivity and access to public and social services.

§       Re-direct resources to the most fragile and isolated regions of Cambodia.

§       Ensure food security through sustainable agriculture.

6. Implement land reform:

§       Pass a pro-poor Land Law and speed up the provision of land title to poor farmers.

7. Protect vulnerable groups:

§       Strengthen legal measures and programmes to assist and protect women and children who are the victims of all forms of abuse and exploitation.

§       Improve systems for disaster management (preparedness for floods, etc).

§       Improve access of the poor to natural resources and promote community-based natural resources management.

§       Develop programmes aimed at assisting the urban poor and improve the rights of industrial workers.

8. Promote democratisation and human rights:

§       Organise free and fair commune elections.

§       Encourage public participation in the formation of laws.

§       Take steps to reduce human rights violations.


AN UPDATE OF THE PRSP PROCESS IN CAMBODIA

(20 October 2000, NGO Forum on Cambodia)

The Royal Government of Cambodia (RGC) is in the process of preparing its Poverty Reduction Strategy with assistance from multilateral financial institutions like the World Bank and International Monetary Fund (WB-IMF) and the Asian Development Bank (ADB).  These institutions have identified poverty reduction as the overarching framework of their lending assistance to developing countries.  The poverty reduction strategy should be country-owned and undertaken through consultations with all stakeholders, including NGOs and other civil society groups.

·       The World Bank and International Monetary Fund have required the Cambodian government to draft a Poverty Reduction Strategy Paper (PRSP) as a pre-condition for access to WB-IMF loans.

·       Process.  An interim paper (I-PRSP), drafted by the Ministry of Economy and Finance (MEF) as the lead agency, has been circulated since July 2000 to the different line ministries, donors, the National Assembly and the Senate.  The MEF is assisted by an umbrella inter-ministerial working group, the MEF’s Economic Advisory Team, and three subgroups -- Poverty Diagnostics, Macro and Sectoral Policies, and Legal, Institutional and Governance.  The I-PRSP is already on its eighth draft; a Khmer translation is also being prepared.  The Cambodian government has yet to receive substantial comments from NGOs and other actors  in civil society.  The I-PRSP needs to be submitted to the WB and IMF Boards in December 2000;  the full PRSP should be approved by the same Boards in December 2001.

·       Content.  The I-PRSP contains sections on: Poverty Diagnostics;  Review of existing strategies and performance; Description of the poverty reduction strategy; Workplan, including mechanisms for participation in the full PRSP; and a Matrix of policy actions (2000-2002).

·       An Asian Development Bank (ADB) mission team was in Phnom Penh in early September 2000 to initiate Phase II of the preparation of the Second Five-Year Socio-Economic Development Plan (SEDPII 2001-2005).  Poverty reduction will be the core strategy of SEDPII.   The ADB has earlier provided technical assistance to the first SEDP and noted weaknesses in its implementation.  The ADB would like to see more effective implementation and monitoring of SEDPII through the participation of relevant stakeholders, including NGOs.

·       Process. The Ministry of Planning (MoP) is the lead agency for the SEDPII.  It will be prepared in two phases.  Phase I (May - July 2000) included:  (a) a national workshop on 18 May 2000 chaired by the Prime Minister and involving ministries, provincial officials and major aid agencies;  this resulted in the preparation of an SEDPII Concept Paper;  (b) Formation of an inter-ministerial working group; and (c) preparation of a macro-economic framework.

Phase II (September 2000-March 2001) will develop a core poverty reduction strategy, the supporting sector strategies and the appropriate implementation, monitoring and evaluation mechanisms.  A Participatory Poverty Assessment (PPA) will be conducted in over 50 communes and 150 villages in October 2000 to February 2001. 

Below are some of the major activities and tentative dates of the preparation of SEDPII:

Stakeholder- Forum Meetings on PPA questionnaire                17 Oct 2000

Selection and Training of PPA Teams                                 Oct 2000

Selection of Key Issues/Questions in PPA                              Oct 2000

Major Stakeholder Workshop on SEDPII                              Nov 2000

Meetings of PPA Steering Committee (2)                              Nov - Dec 2000

Integrate PPA and poverty findings into SEDPII                     Jan - Feb 2001

High Level Forum                                                       Mar 2001

        

·       Content.  The first draft of SEDPII will be presented at the High Level Forum in March 2001 (according to reliable sources, however, this date may be moved to June 2001). The ADB’s own policy on poverty reduction (approved in November 1999) has a three-pronged approach:  sustained and inclusive economic growth; social development; and reforms to strengthen governance.  According to the ADB, it would like to see NGOs and other civil society actors participate in these processes.  Should you have inquiries or comments on the SEDPII, you can send them (please cc to samath@ngo.forum.org.kh) directly to:

BRUCE KNAPMAN

SEDPII Team Leader

Email: b.knapman@bigpond.com.kh

Mobile: 012 900 726

·       The RGC has expressed its wish for just one policy strategy which incorporates the different donor requirements and technical assistance for the PRSP and SEDPII.  The dates envisaged for government approval of SEDPII and full PRSP are March (or June) 2001 and October 2001, respectively.

NGOs intend to provide input to the Poverty Reduction Strategy of the government in a constructive and comprehensive manner.  This will utilize the perceptions of Cambodian NGO workers and poor communities who are the targets of poverty reduction interventions. 

The NGO Forum on Cambodia, with funding support from the United Nations Development Programme (UNDP), will organize a ‘National NGO/Civil Society Workshop on the RGC’s Poverty Reduction Strategy’ on 24-25 October 2000 at the World Vision Conference Center in Phnom Penh. 

The National Workshop aims to:  (a) discuss relevant issues raised during initial consultations with NGOs and civil society groups on the Interim Poverty Reduction Strategy Paper (IPRSP);  (b) forge a consensus on key recommendations to the Government’s Poverty Reduction Strategy; and (c) identify the next steps that need to be taken to ensure NGO and civil society involvement in both the formulation of the poverty reduction strategy and monitoring mechanism(s).  Outputs of the Workshop will be conveyed to government and donors at a separate briefing approximately one week after the Workshop.  The National Workshop is part of a two-month project being undertaken by the NGO Forum to consult with NGOs and civil society organizations, both within and outside Phnom Penh, on poverty reduction issues.


SOME CHANGES IN THE I-PRSP (English)

7th version (2 September 2000)  and 8th version[30] (October 2000)

1.     On consultative process in the IPRSP (see FOREWORD, p. 2, 1st paragraph) in the 7th version, the 8th version says:

“The working groups held three meetings to discuss the drafts, followed by the discussions in the sub-groups... Moreover, a consultative process was launched with active participation of donor community and Non-Governmental Organizations (NGOs) on 25 July 2000...

(NOTE:  The NGO Forum on Cambodia is unaware of any such meeting or launching  process on 25 July 2000.]

2.     On RGC’s approach to promoting opportunities, 7th version says (see FOREWORD, p. 3, 1st paragraph):

“... Though well-targeted programs for rural areas could have quick impact on the rural population, poverty reduction strategy should not be overly reliant on the development of agricultural sector, given poor performance of the sector in the past.  Industrial and service sector development could become a powerful locomotive to pull Cambodia out of the shackles of poverty.”

The 8th version is slightly different:

“... Though well-targeted programs for rural areas could have quick impact on the rural population, poverty reduction strategy should also give due emphasis to the development of the industry and service sectors.   Our approach not only calls for the modernization of agriculture but also the development of other sectors which could become powerful locomotives to help pull Cambodia out of the shackles of poverty.”

3.     On the role of government and private sector in service delivery (see FOREWORD, p. 3, 3rd paragraph of 7th version), the 8th version adds a new sentence as follows:

“The government plays a crucial role in the service delivery and the improvement in capabilities. ... The government is exploring ways to use the private sector means to improve service delivery. Essentially this focus is ...”

4.  On priority actions that need to be taken by the RGC over the short to medium term (see FOREWORD, p. 3, 4th paragraph of 7th version), a new sentence strengthening the role of good governance is added in the 8th version as follows:

Priority actions ... implement the measures outlined in the Governance Action Plan (GAP). Good governance is the backbone of the success of the reform programs, the success of the poverty reduction and the success of Cambodia's development.”

5.  On rural development approach (see p. 17, sec 2.21, 7th version), an additional sentence on importance of rural infrastructure is added in the 8th version as follows:

“Cambodia's rural development programs ... Given the importance of rural infrastructure in poverty alleviation, a broad rural infrastructure strategy will be formulated within the framework of the full PRSP in order to sustain and scale up the current efforts, to assess key infrastructure's institutional, financing and governance issues and to ensure sustainable improvements in transport to rural areas.

6.  On rural roads (see p. 17, sec 2.22, 7th version), the institutional responsibility of road network rehabilitation is added in the 8th version as follows:

 

“One of the RGC's poverty reduction priorities is rural infrastructure rehabilitation.... Addressing the institutional responsibility of road network rehabilitation is vital in terms of policy formulation, institutional arrangements and priority interventions. The Ministry of Public Works and Transport (MPWT) is responsible for the rehabilitation and maintenance of national and provincial road network. The Ministry of Rural Development (MRD) is responsible for the development of rural roads, given its comparative advantages and knowledge about the rural areas. Within the framework of decentralized rural development the Village/ Commune Development Committees (VDC/CDC), which is responsible for making decision at the local level, has been extensively consulted. Both ministries rely on government budget (Chapter 51) and donor's assistance (grant and loans) for road maintenance and rehabilitation. Food-for-work programs have been implemented as a means to rehabilitate rural roads and to meet nutrition needs of the populace. Politicians and political parties have also been active in financing rural road construction.

7.  On economic growth and per capita income, a new section is added (after sec. 2.33, p. 19, 7th version) in the 8th version as follows:

"The RGC's medium-term strategy is to raise economic growth and per capita income, and to reduce poverty. The medium-term macroeconomic framework for 2000-2004 is aimed at raising economic growth to 6 percent, lowering inflation to 3.7 percent, containing the external current account deficit (excluding transfer) to 10 percent of GDP, and increasing gross official reserves to four months of import coverage. The projected increases in output growth are premised on rising levels of investment (both public and private) and savings. The later will require fiscal consolidation that increases revenue to 13.5 percent of GDP."

8.  On facilitating private sector development, a new section is added (after sec. 3.22, p. 27 in 7th version) as follows:

“The RGC recognizes that improving the business climate and establish an enabling environment for private sector development is a key prerequisite for fostering growth-reducing poverty and achieving sustainable economic development. A government-private sector forum is held once every six months to identify the constraints facing the private sector and to take action to remove the impediments to private investment. During the last meeting of this forum held in July 2000, the Prime Minister decided to establish a joint working group to help improve the business climate in Cambodia. The constraints to private sector development in Cambodia include inadequate infrastructure, security problems for investors in remote areas, weaknesses in the legal system, the costs of and access to finance, inadequate market information on consumer trends and shortages of skilled labor and the lack of skilled managers. The lack of and/or poor quality of roads restricting access to markets and raw materials, the quality of the ports, reliable electricity and water supply in the provinces were perceived as constraints by entrepreneurs consulted. Personal security problem in rural areas also prevents both local and foreign businesses to diversify their investments away from Phnom Penh. Small and medium enterprises (SMEs) identify the dearth of regulation on land tenure as an important handicap to small business development.”

9.  On better governance, a new Box on the Governance Action Plan is added (see sec. 3.52, p. 35, 7th version) in the 8th version as follows:

Box 5 : Governance Action Plan

The RGC is conscious that good governance is an essential prerequisite for sustainable socio-economic development and social justice.  A Governance Action Plan (GAP) was prepared and tabled for discussion at the Consultative Group (CG) meeting held on 25-26 May 2000 in Paris.

The GAP identifies two categories of governance reform where action will be critical to Cambodia's development over the near- and the medium-term. The first category involves four cross-cutting areas: (1) judicial and legal reform: improving the legislative process, promoting dissemination of laws and regulations, developing a legal framework for private sector, developing human and material resources and infrastructure, enhancing the integrity of the judiciary and meeting private sector's needs for the arbitration of commercial disputes; (2) public finance: streamlining customs control, combat smuggling, developing a modern customs administration, improving VAT refunds, developing a regulatory framework for tax on profits, undertaking a comprehensive reform of investment incentives, ensuring integrity of the budgetary process, improving performance of spending units and strengthening the public investment management program; (3) civil administration reform: rationalization of employment structure, review of remuneration and establishment of management system, enhancing productivity and motivation, reinforcing transparency and participation, ensuring a close link between administrative and financial decentralization and developing human managerial and human resources at the sub-national level; and (4) anti-corruption: setting ethical standards, enacting special anti-corruption legislation, enforcing the sub-decree on public procurement and strengthening enforcement and scrutiny. The RGC recognizes that without credible actions in these areas, the basic virtues of good governance will not take hold in Cambodia.

In addition to these cross-cutting issue areas, the RGC has identified two specific policy issues on which governance reforms must be implemented. One is natural resource management, including land management and forestry management. Fair resolution of land disputes is essential to social peace and environmental sustainability, which are, in turn, fundamental to poverty reduction and economic development. The other policy issue is demobilization of the armed forces.

Source: Governance Action Plan. Royal Government of Cambodia. May 2000

10.  On workplan for the PRSP (see sec 5.4, p. 40, 7th version) , priority areas have been identified in the 8th version as follows:

“The following highlights a workplan for the PRSP... The priority areas include the investigation of provincial difference in poverty, poverty mapping, identification of poverty indicators, employment and labor market study, income and safety net study and the analysis of the incidence of health and education expenditure. To address the institutional capacity constraints mentioned in paragraph 3.13 attention is given by the RGC to building up capacity with external partners' support, including the current Technical Cooperation Action Plan (TCAP) program, put in place by the IMF. The RGC is looking for funds to implement the TCAP activities. ”


 

Locating Civil Society Role in the PRSP Process

Opportunities, Dilemmas, and Challenges

The Case of Cambodia

Jenina Joy Chavez-Malaluan

Focus on the Global South, October 2000 


Good morning. It is with great pleasure that I have been given a chance to speak before the National NGO/Civil Society Workshop on the RCG’s Poverty Reduction Strategy. I speak no Khmer, so you have to please excuse me for speaking in a foreign language. 

The topic I was asked to discuss is the macroeconomic framework in the Cambodian I-PRSP. This is a big topic, and 30 minutes is not nearly enough to cover but the most basic elements, but I will do my best. 

This morning I will wear two hats, that is, take two perspectives at once. First off, allow me to be political and tackle the issue of designing and implementing a PRSP within the context that it is being promoted now. And then I will go directly to the I-PRSP document that is the focus of this workshop. In wearing these two hats, I will try to outline the different dilemmas and challenges, and the few opportunities, that civil society is being presented with in engaging the PRSP process. 

On the PRSP Process 

In 1996, the major bilateral creditors agreed to embark on yet another debt reduction scheme. The Highly Indebted Poor Countries (HIPC) Initiative is purportedly the most comprehensive thus far because it tackles commercial, official bilateral, and official debt owed to multilateral creditors like the International Monetary Fund, the World Bank, and the regional development banks. The amount of debt relief extended under the Initiative depends on the debt sustainability analysis following the World Bank formula. In September 1999, the Enhanced HIPC was launched, basically expanding the linkage between debt relief and policy conditions, this time including the current mantra of poverty reduction and social policies.  

The PRSP is necessary for qualified debtors to access onto the HIPC Initiative. It is supposed to be used as the basis of all WB/IMF lending and would serve as the guide for debt relief under the enhanced HIPC initiative. But even countries outside of HIPC, or not interested in tapping onto the HIPC, have to undergo the PRSP process if they want to tap into the Enhanced Structural Adjustment Facility (ESAF), now repackaged into the Poverty Reduction and Growth Facility (PRGF), of the IMF.  

In short, the PRSP has a function of consolidating policy conditionality linked to new loans and debt relief, but at the same time giving governments more room for ‘ownership’ of the program. This ownership is supposed to come from a participatory process where government freely engages civil society in the design and implementation of a comprehensive poverty reduction strategy. Yet there is little indication that, aside from the declared policy of an open process where civil society can participate, the PRSP is substantially different from old structural adjustment and similar packages that found their way into different governments’ letters of intent and memoranda of economic policy submitted to the multilateral institutions until not so long ago. 

The determination of the macroeconomic framework prior to the actual PRSP fans the suspicion that the process is nothing new. Reports coming in from countries where the PRSP process has begun show that little has changed in the MF-World Bank’s approach to programming either in content or in process. Experiences from Bolivia, Nicaragua, Tanzania, Zambia and Mozambique indicate that PRSP processes continue to be based on existing structural adjustment frameworks and macroeconomic indicators, with little more than lip service to genuine public participation in poverty analyses and policy formulation. 

Economic adjustment and reforms per se are not bad. But it needs to be stressed that from where and/or from whom the adjustment prescriptions come from is crucial. The World Bank has come to the realization, and has even come short of a public admission, of the failure of its structural adjustment policies. Yet the very same components of the SAP find their way to the current PRSP discussions, without any clear mention of the learning from the failure of SAPs. The problem with SAP is not only the absence of civil society participation in their design, but that the policies and programs designed under it were often inappropriate for availing countries. 

Linking the availability of foreign aid and credits with the adoption of the financial and economic frameworks prescribed by the Bank and the Fund also weaken the capacities of national governments to formulate their own, nationally relevant plans for socio-economic development and poverty alleviation. Many countries included in the HIPC initiative have attempted to formulate and implement their own long term national development strategies (for example, Ghana, Nigeria, Uganda, Gambia, Vietnam and Cambodia), but these strategies have been undermined by the IMF and World Bank through the leverage provided by the PRGF and PRSP framework. 

This is the biggest dilemma. Do you support something that perpetuates the primacy of multilateral institutions in policy making over sovereign states? Or put positively, how do you engage the process and still maintain creativity and informed action? 

The PRSP is supposed to be an open, participatory process, where civil society ‘must’ be consulted by government. What is ironic about this whole set up is that for many, if not most, of the countries identified by the IMF and the World Bank to undergo the PRSP process, government-civil society interaction has not been very healthy. While the creation of venues for civil society to intervene in policy making should always be welcome, the insertion of multilateral institutions between civil society and government cannot be said as healthy either, much less sustainable. For if not properly prepared, civil society participation may be reduced to mere implementation, or worse, plain legitimization of an otherwise unbalanced process.  

This last point cannot be belabored. Many of the documents and information used as inputs for the PRSP are not accessible to many civil society organizations, and definitely to the general public. These documents are not available in the local languages, and are initially prepared by foreign consultants. Little resources go to actual empowerment of civil society and even government actors to enable them to design the strategy themselves.  

The challenge is clear. Civil society should always be vigilant and critical in thought and action. The challenge is for civil society to inform themselves of both the customary policy prescriptions, their implications and alternatives, and most importantly, to learn as much of reality on the ground as possible to sharpen their sense of what is appropriate. 

 The Cambodian I-PRSP  

The document identifies three main components of poverty reduction: (1) long term economic growth at an annual rate of 6-7%; (2) equitable distribution; and (3) sustainable management of environment and natural resources. Perhaps the most significant statement in the document is the following: “Growth is the most powerful weapon in the fight for higher living standards. Faster growth will require policies that encourage macroeconomic stability, shift resources to more efficient sectors, and integrate with the global economy.” This statement presents both the objective and the strategy. Let me discuss three things that make this statement very interesting. 

First, the issue of high growth. Growth is always desirable, and is necessary for development. But aiming for high growth, 6-7% annually, is aiming for the similar trajectory taken by East and Southeast Asia in the decade prior to 1997. These economies were the fastest growing during the 1980s and the first half of the 1990s. But this high growth came with huge social and environmental costs, and exposed the economies to vulnerabilities that sent them to collapse after 1997. And while the high growth made possible palpable improvements in poverty reduction in the region, it did not address inequality, and even pushed some sectors further in poverty. When the crisis happened in 1997, much of the poverty gains in the past were eroded. 

Second, the shift of resources to more efficient sectors. A related relevant statement here goes; “…the strategy should not be overtly reliant on the development of the agricultural sector, given poor performance of the sector in the past.” The simple translation of this statement is that, because the agricultural sector is inefficient, the huge resources poured into the sector in the past did not translate in corresponding high growth. And true enough, the weak performance of the sector accounted for the low level of overall growth in 1997 and 1998. The biggest contributor to growth has been the industrial sector, particularly garments and textiles, and construction.  

But how much resources have actually gone to agriculture, what is the basis for its inefficiency? The first SEDP supposedly mandated that 65% of all projects should go to the rural areas, and 35% to urban areas. However, this was not followed in the actual implementation. The rural areas got only 35% of all investments under SEDPI. There is therefore not enough evidence of how inefficient agriculture really is, because after all, it has not been subject to massive investments in the first place. It has also to be stressed that natural conditions have a lot to do with the inefficiency that is attributed to the sector. Floodings and droughts are beyond the control of farmers, and if only public investments are designed to address these problems, then the losses they bring may be minimized if not eliminated. 

Not relying overtly on agriculture is also a misplaced strategy in view of the prominent place it takes in the country’s poverty profile. Rural population, especially for whom agriculture is the primary source of income, account for 90% of the poor. Women comprise 65% of the rural population, and 80% of them are in agriculture. Agriculture accounts for lower unemployment rates – that is, more people in the rural areas have work or are working, although they may earn very little, or indeed may not produce enough to reach the market at all.  

Clearly, focusing on the rural areas will have the most impact on poverty reduction. Alas, it will not result in rapid growth. But what really is more important? Is it high GDP growth or rapid poverty reduction? 

It should also be noted that shifting labor from agriculture to industry is not an easy process. It requires time, and a lot of resources. It can be done of course. Investment in health and education, on infrastructure are crucial. All of these are recognized in the I-PRSP. Now then, we are faced with the challenge of setting priorities. Broad-based intervention focused on the rural areas will have the greatest impact in lifting people out of poverty, but it may not result to growth. Patches of industrial growth will lift some people out of poverty faster and produce better overall growth, but the reach will be limited. And urbanization and industrialization themselves produce problems that may exacerbate poverty in some sectors.  

Third, integration with the global economy. The bottomline of most multilateral policy designs is to hasten the integration of countries in the global economy. Extra care and serious rethinking should be taken in considering this path, especially in light of the serious challenges being posed to globalization. Serious consideration should be accorded to the acknowledged failure of SAPs (which sadly the PRSP suspiciously sounds like), the lessons of the East Asian and global financial crises, and the achievements made by the transitioning countries like Cambodia before they decided to be more market-friendly.  

There was a time in Asia when overall ‘opening up’ was hailed in the mainstream of policymaking as the way to go. The Asian growth game has been marked by episodes driven by competition for markets. Throughout the nineteen-eighties, it was competition for limited public resources and for export markets, hence the start of the privatization of public enterprises and the promotion of liberalized trading regimes. During the nineties, finance capital became the crucial factor. Accumulated capital in the developed world found their way to Asia, taking advantage of substantial short-term price differentials, particularly exchange rates, interest rates and stock market prices.  

Before the crisis, these high-growth Asian economies were characterized by impressive records in productivity, physical and human capital, and manufactured exports. Between 1990 and 1995, South Korea, Malaysia, Thailand, Indonesia and the Philippines, as a group posted average GDP growth rate twice as high as the world average. This economic success was identified as the reason for the huge volumes of capital inflows to the region. True enough, Asia represented more than 43 percent of net private capital flows to all developing countries between 1990 and 1996. By 1996, this translated into net flows amounting to US$100.2 billion.  

For a long time suspicions about the sustainability of the growth experienced by Asia have been swept aside. The growth after all enabled these countries to drastically reduce poverty incidence and improve certain income and social indicators. The volatility of private capital flows merited but cursory reference in policy debates, and only in a manner that policymakers wished to create a better environment for foreign flows. In the early nineteen-nineties, the liberalization of the financial system and of the capital account was praised as a crucial pillar in Asia’s bid to attract foreign monies. 

But integration into global finance exposed Asia to certain vulnerabilities at the same time that it deepened weaknesses it had not been able to shake off even during its growth rally. Asia was totally unprepared when the true colors of foreign capital unraveled. Weak internal institutional mechanisms, entrenched interests undermining impartial policymaking, and volatile growth bases, together with predominantly footloose capital proved too much for Asia.  

Telltale signs gleaned from gaping current account deficits, mounting non-performing assets of banks, and private debts falling due, prompted jitters in the finance world that sent investors scurrying away. The result was a steep reversal in private capital flows, especially short-term flows. The crisis countries of Asia (South Korea and the ASEAN-4) experienced a 78 percent drop in net external private flows, from almost US$93 billion in 1996 to only US$15.2 billion in 1997. Net flows in the two succeeding years were negative. 

The twin problems of reversal in private capital flows and steep dreviewuations proved very painful. The local currency value of the foreign liabilities of domestic banks and firms ballooned. Huge losses and serious liquidity problems were accompanied by increased lending rates and decrease in consumption and investments. Crisis countries suffered economic contraction. Various studies focused on the harsh social impact of the crisis. All agree that the crisis adversely affected the quality of life in the crisis countries, prompting households to make painful adjustments. Governments were compelled to cut back on services as revenues fell short of targets.  

Integration comes with a price, and should not be taken lightly. The staunchest promoters of globalization are the most ready to embark on it. Rich industrialized countries push to open up markets because it gives their own producers opportunities to penetrate developing country markets. But if you examine how rich countries are able to maintain the protection of their industries, even as they tell developing countries to abolish subsidies and similar support, you will see how very unbalanced the globalization game can be. 

Of course, a country need not be an absolute loser in the globalization and integration game. Then again, how much success a country achieves in the globalization game depends on how it is able to prepare its own industries, and how boldly it can negotiate with its trading partners. Unfortunately, even mechanisms that are deemed more acceptable than others (for instance AFTA versus the WTO) are rife with competition and political and economic positioning that account for their limited success. 

The Civil Society Imperative 

I have barely touched on the most obvious elements of the I-PRSP. There are more, and it’s not very easy to categorize them. I suppose my final message will be that, since you choose to engage in the PRSP process, you should be aware of the tasks and responsibility ahead. It can be seen as an opportunity, yes, but like every opportunity, much should be done to make it work in your favor. If you consider the process as creating more political space for civil society, then you should also be able to critique the quality and nature of this space. Who sets the terms of debate and engagement here? What are the politics of exclusion and inclusion? And what are the messages that civil society organizations go away with? If nothing that substantially deviates from the IMF and WB line will ever make it into the final document (as it has been shown in many similar processes in the past), what is the point of consultation? 

We should not shun engagement at all. But if you choose to engage, at least try to exercise a significant measure of control to maintain an independent position. Go prepared to these consultations, think for yourselves, be familiar with the issues beforehand, and be confident enough to offer critiques where needed. And when it’s clear that nothing of substance from you is being taken up, or that you’re being marginalized, then you must be sensitive and ready when it is time to disengage. And create you’re a policy space that is truly your own.   

Thank you again for giving me an opportunity to speak this morning. I congratulate all of you for embarking on such a big task, and I wish you luck. But most of all, I wish you courage, and enjoin you to remain vigilant and critical. It is after all your poverty reduction strategy, and it is after all your government that you have to deal with. But in the face of many other challenges, you have the task of empowering your government as much as yourselves. Good morning to all of you.


 

NGO PERSPECTIVES ON POVERTY REDUCTION

Presentation by Mr Mr Toun Vicheth Deputy Field Representative Designate, CIDSE

Your Excellencies, distinguished guests, and both government and NGO colleagues.  This morning I wish to share with you some thoughts regarding NGOs’ potential contribution to the national strategy for poverty reduction.  My short presentation will draw on the experience of CIDSE as an example of the role that NGOs are playing in tackling poverty in Cambodia.

Poverty reduction and powerlessness are the core reasons for the existence of NGOs.  NGO activities in Cambodia may be categorised as follows:

·       Disaster relief for people suffering from famine, fire, floods and other natural or man-made catastophies.

·       Delivery of services such as health care, water and sanitation, education, family planning, agricultural extension and micro-credit.

·       Community organising to enable local groups to solve problems together, to establish local enterprises and to influence other agencies to provide better services.

·       Networking for experience sharing, programme coordination and joint action on sectoral issues.

·       Development education to increase public and opinion leaders’ understanding of key development issues.

·       Advocacy in support of critical policy and institutional changes that are important for the welfare of the poor and powerless.

CIDSE is no exception in having poverty reduction as its overriding objective. Our Mission Statement reads “To support the rural poor, especially the poorest and marginalized, in their efforts to meet their own needs, and to support activities which promote peace, freedom, social justice and civil society through working in solidarity and partnership with Cambodian people.”  From this you can see that our definition of poverty recognizes the importance of material, social and personal wellbeing of people, our focus is very clearly on the poorest and our approach is one that respects the dignity and capabilities of all Cambodian people.

CIDSE first came to Cambodia in 1979 in response to the overwhelming poverty and destruction left by the Khmer Rouge regime. Initially our response was one of emergency relief, at a time when so many lives were gravely at risk.  This was followed by rehabilitation and reconstruction assistance through the government, restoring basic infrastructure that was needed before other activities could begin.  In 1992 when international aid began flowing back into the country, CIDSE established development programmes in the provinces of Kandal, Kampot, Svay Rieng and Ratanakiri, choosing the poorest and often most remote communes in which to work.  By 1994, Cambodian NGOs had begun to appear on the scene and CIDSE saw a need to strengthen their capacity in order that they could better complement the development efforts of the Royal Government of Cambodia and international agencies. 

Currently CIDSE continues to work to alleviate poverty by directly implementing development programmes in the four provinces and by supporting the efforts of 20 Cambodian NGOs.  In speaking to you today I am drawing on CIDSE’s experience gained from working directly and indirectly in over 250 villages in Cambodia, some for more than 8 years now.

Our approach to community development work is to respond to the needs of the villagers themselves, but particularly the needs of the very poor in those communities. CIDSE does not now take a sectoral approach but tries to integrate all village development activities so that the impact on the lives of the poor is maximised.  To ensure sustainability of these benefits we have encouraged and supported the development of community structures so that villagers are able to better identify and better manage their own development activities by themselves.  Similarly, our work with Cambodian NGOs combines training and capacity building with the provision of limited resources to enable them to undertake development activities in their chosen villages.

CIDSE is also committed to advocating on behalf of the very poor.  This may take the form of assisting villagers to seek information and justice from commune and district authorities or sharing information and lobbying government at the national level on issues that impact on the lives of the rural poor.  CIDSE continues to be involved in international advocacy efforts.  During the 1980s CIDSE was heavily engaged in lobbying the international community to lift the aid sanctions on Cambodia.  In the 1990s CIDSE has been active in lobbying the governments of wealthy nations to relieve the debt burden of poorer countries.  The single goal of all these efforts is to bring about changes that will improve the living situation of the poor.

Over the years we have learnt that some development activities benefit the wealthy and middle classes in the village but actually make life for the very poor even more difficult.  Often the very poor cannot participate in normal development activities for a number of well-known reasons. Development agencies wanting successful projects may ignore the very poor because they are considered to be of high risk or are too difficult to work with.  Even village representatives who care very much for their people rarely understand and take into consideration the special needs of the very poor.

CIDSE is now introducing special projects exclusively for the very poor to make sure that they can participate and can benefit from their participation.

 

Village authorities and even democratically elected village committees who are given responsibility for managing development projects often feel more accountable to higher authorities, including NGOs, than they do to the villagers.  This leads to a lack of ownership among project beneficiaries and is the cause of many failures.

CIDSE is now developing and strengthening small self-help groups that are self-managing and can genuinely represent the interests of their members.  VDCs are being trained to facilitate and coordinate village activities but not to manage them.

We have learnt that successful development activities are not necessarily replicable in other villages.  The physical and social environment is often different and community readiness for new ideas differs from community to community.  Building rice banks in every village means that many will fail, not because rice banks are not a good idea but because they may not be what a particular community needs or is ready to manage at that particular time.

CIDSE is now taking more time to understand the particular context of each village before suggesting or agreeing to support any development activities, even if they had proved successful in neighbouring villages.

Above all we have learnt that poverty reduction involves capacity building and that capacity building takes a long time. Often the NGO and government staff lack sufficient knowledge and experience themselves to effectively train others.  They expect community health workers, village development committees or Cambodian NGOs for that matter to take responsibility too quickly and this is detrimental to the success of a project and the confidence of the individuals.

CIDSE is constantly reflecting on our attitude in working with the poor and trying to put their needs before those of our own.  We are trying to develop patience and understanding, and a respect for the learning capacities of different individuals and groups.

There are few role models from which government staff, Cambodian NGOs and villagers can learn new ways of working – the strategy of “seeing is believing” is not readily available.  Too much of our work has been telling others what to do or what to believe when we do not do it and even do not really believe it ourselves.

CIDSE is supporting exposure visits between villages and even to other provinces so that villagers and Cambodian NGOs can see what others like them are doing and can gain ideas and confidence in what they themselves might be able to do.

And finally we have seen that there is mistrust and suspicion between government and the people, be they villagers or staff of NGOs.  This stems from a lack of understanding about the roles and limitations under which each of us functions.  Too often people are working independently and even against one another while trying to achieve the same objectives.  NGOs are often not part of the policy-making process and are seen to be against the government or politically motivated when they criticise policies at the final stage. 

This workshop has the potential of helping to overcome this last point.  By engaging in discussions at an early stage and by drafting plans collaboratively we are all working together to achieve a common goal - the reduction of poverty in Cambodia.

The government’s Poverty Reduction Strategy is extremely important as it sets the direction and environment in which development will occur over the next five years at least.  It is clearly the role of government to work at this macro level, setting national policies and guidelines so that we all pull in the same direction. However, NGOs can bring experience and intimate knowledge of the needs of the very poor to the attention of the policy makers.  NGOs can also play a useful role in providing feedback to government on how certain policies and practices are impacting on the lives of the very poor.  It is only through being challenged and receiving honest feedback that we all learn how to improve the way we work.

It is my hope that this workshop is seen by everyone as an opportunity to challenge ideas and concepts, to share experience and to develop greater understanding among us all.


ATTACHMENT D

Small Group Discussion 1

MATRICES OF KEY POLICY ISSUES


SMALL GROUP DISCUSSION 1 -  KEY POLICY ISSUES

Group 1 - Rural Development and Decentralization

I.  Look at the matrix of strategies for the topic of your sectoral group.  Make corrections and any additions to the list which you think are important.  Rank the three (3) most important strategies on the list, with number "1" as the most important.

NGO RECOMMENDATIONS

WHAT I-PRSP SAYS

RANKING

1.  Increase resource allocation to rural areas to improve physical infrastructure and access to public and social services.

·       Focus on agriculture productivity

·       Extend coverage of Priority Action Program (PAP) to agriculture and rural development

·       Increase public investment in rural infrastructure (energy, irrigation, roads)

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2.  Resources must also be directed to the most fragile and isolated regions of Cambodia.

(I-PRSP does not say how much government resources will be allocated per region, but generally recognizes that 90% of the poor live in rural areas and should be targeted)

 

3.  Strengthen agriculture sector.

RGC’s poverty reduction strategy not only calls for the modernization of agriculture but also the development of other sectors (industrial and services) which could become powerful locomotives to help pull Cambodia out of the shackles of poverty. (8th IPRSP version)

 

4.  Provide land title to farmers and focus on land use planning.

Land reform will focus on land distribution, land management and land administration.

 

5.  Integrated rural development approach

·       Bottom-up, integrated, participatory and decentralized rural development

·       Expand number of Village Development Committees (VDCs)

·       Encourage income generation in rural areas

·       Access to micro-credit for the poor

 

6.  Draft Commune Administration Law should ensure village participation and representation, including women provide accountability and coordination at national, provincial and sub-provincial levels

Draft Commune Administration Law will decentralize system of administration

 

7.  RGC’s national budget should partially pay for commune council salaries and operational costs

Draft Commune Administration Law will introduce financial devolution at grassroots level;  Commune councils will have their own budget consisting of tax and non-tax revenues and a block grant from the national budget.

 

8.

·       Prevent politicization of commune elections

·       National Election Committee should be reformed and become non-partisan.

(I-PRSP says nothing on this)

 

8.     NGO election monitors should be accredited

(I-PRSP says nothing on this)

 

CORRECTIONS / ADDITIONAL COMMENTS

9.     Facilitate access to markets of agricultural products.

10.  Decrease imports of agricultural products.

 

 


 

SMALL GROUP DISCUSSION 1 -  KEY POLICY ISSUES

Group 2 - Agriculture and Food Security

I.  Look at the matrix of strategies for the topic of your sectoral group.  Make corrections and any additions to the list which you think are important.  Rank the three (3) most important strategies on the list, with number "1" as the most important.

NGO RECOMMENDATIONS

WHAT I-PRSP SAYS

RANKING

1.      Prioritize land use planning and provision of land title to farmers as core of any assistance to agriculture.

Reserve certain areas in land use planning for the increased number of small farmer communities.

Land use planning and provision of land title to farmers is not included in RGC's core agricultural strategy; embarking on land reform, however, is a strategy on promoting opportunities for the poor.

         1

2.  Recognise the right of communities to manage and use natural resources.  Legally protect the right of local communities to fish for a subsistence living, and promote sustainable community fisheries.

The plight of the poor can be improved by widening their access to forest, fisheries and water resources.

 

3.  Allocate more resources to agricultural development.

·       Priority Action Program will be expanded to cover agriculture and rural development.

·       RGC's poverty reduction strategy not only calls for the modernization of agriculture but also the development of other sectors (industrial and services) which could become powerful locomotives to help pull Cambodia out of the shackles of poverty (8th IPRSP version)

 

1.     Agricultural extension

·       Decentralize, adopt farmer-led approach.

·       Agricultural credit should be better linked to agricultural extension.

·       Improve agricultural services and facilities

·       Formulate a rural finance strategy

·       (I-PRSP says nothing on farmer-led approach)

 

2.     Private sector participation

·       Provide assistance to develop responsible private sectors and professional farmer's associations.

·       Provide special incentives to private investment in agro-processing.

Encourage the establishment of business and producers' associations.

 

3.     Establish independent agricultural market information service.

Wider dissemination of agricultural marketing and technological information

 

4.     Agricultural education

·       Democratize an autonomous agricultural education institution.

·       Support farmers training centers in different geographic zones.

 

 

5.     Create an autonomous research institution

Build up agricultural research capacity

 

6.     Ensure food security through sustainable agriculture

·       Introduce and effectively enforce laws to protect the health of small farmers and minimize environmental destruction.

·       Promote public education programs on pesticide hazards, alternative pest control and integrated pest management.

·       Increase allocation to research and extension on ecological farming.

·       Promote sustainable development of agriculture

·       Ensure food security through expansion of rice and secondary food crops

·       Improve incomes by diversifying crop production

·       Liberalization of fertilizer pricing and marketing

·       (I-PRSP says nothing on ecological farming)

         2

10.

·       Focus on increasing productivity of rain-fed agriculture.

·       Build more farm-to-market roads.

·       Integration of the Cambodian economy into the region through ASEAN (and eventual entry to WTO) will expand markets and reduce prices of imported and exported products.

·       Formulate procedures to promote marked access for Cambodian products in EU countries

·       Develop rural roads system

 

11.  Increase access to markets of agricultural products

·       Entry of cheap agricultural products from Thailand compete with Cambodian farmers' products, resulting in decrease in farmers' incomes

·       Promote export markets for Cambodia's agricultural products

·       Build more farm-to-market roads.

·       Integration of the Cambodian economy into the region through ASEAN (and eventual entry to WTO) will expand markets and reduce prices of imported and exported products.

·       Formulate procedures to promote market access for Cambodian products in EU countries

·       Develop rural roads system

         3

CORRECTIONS / ADDITIONAL COMMENTS

12.  Technology

13.  Human resource development

14.  Cooperation between NGOs/CSOs and government in promoting agriculture and food security

15.  Markets for agricultural products

 

 


 

SMALL GROUP DISCUSSION 1 -  KEY POLICY ISSUES

Group 3 – Land, Forestry, Fisheries and Environment

I.  Look at the matrix of strategies for the topic of your sectoral group.  Make corrections and any additions to the list which you think are important.  Rank the three (3) most important strategies on the list, with number "1" as the most important.

NGO RECOMMENDATIONS

WHAT I-PRSP SAYS

RANKING

1.  Land reform should focus on land distribution, land management and land administration.

§       Development of a national land policy integrated with other key natural resource policies;

·       improved management of the national land stock, particularly public land;  a register of state property should be maintained and protected by the legislature;

·       commencement of systematic land titling;

·       tax reform;

·       construction of a legal framework to enforce property rights.

§       Finalize revision of the land law to both increase sustainable production and strengthen social cohesion.

Land reform will focus on land distribution, land management and land administration that consists of:

§       development of a national land policy;

§       improved management of the national land stock;

§       commencement of systematic land titling;

§       tax reform;

§       establishment of a legal framework to enforce property rights;

§       the establishment of provincial, municipal and national master plans and zoning;

§       development of rural housing. 

The policy matrix (2000-2002) includes:

§       Develop a national land policy and improve the management of the national land stock;

§       Strengthen the legal framework to enforce property rights and commence a systematic land titling,

§       Enforce the new Land Law and implement the National Systematic Land Registration program

§       Establish land use classification, such as permanent forest estate, fishing lots and other agricultural land to help the poor gaining access to land and improving land tenure.

§       Develop and enforce measures to prevent encroachment of land by privileged groups.

         1

The I-PRSP should acknowledge the extensive research that has already been done on landlessness.  

 

The RGC will conduct various studies to:

§       identify the landless and land poor vulnerable groups

§       review the programs of assistance to IDPs and returnees,

§       improve access to housing for urban squatters in Phnom Penh and other towns

§       examine how gender bias is manifested in the land policy.

 

3.  The value and crucial contribution of common property natural resources (e.g., forests, fisheries) to the livelihoods of the poor should be recognized.

 

 

4.  Forestry reforms

§       The crackdown on illegal forest activities should target large-scale operations with a view to addressing the culture of impunity

§       Terminate forest concessions with a record of illegal activity or which impact negatively on the rights of indigenous groups.

§       Enact appropriate forest and land laws and sub-decrees for community forestry and concession management through a participatory process and with greater consideration of local communities.

§       Appropriate forest policy and forest management capacities should be pre-conditions for resuming commercial logging.

§       Allocate a greater portion of forest revenues to local communities for rural development.

§       Conduct an evaluation of industrial concession management in Cambodia to assess whether the industrial utilization of Cambodia's forest resources is compatible with the goals of equitable social and economic development.

Forestry reforms

§       Strengthen forestry monitoring mechanism, including quarterly reports by monitoring unit for Council of Ministers and public release.

§       Strengthen concession management and contract terms to improve transparency, monitoring, revenue performance and enforcement.

§       Submit to National Assembly a revised Forestry Law to provide a permanent framework for sustainable forestry management.

§       Review the log export ban policy commensurate with improvements in monitoring capacity.

§       Develop community forestry, initiating mechanisms for the award of long term tenure rights to local communities and indigenous peoples.

§       Revenue mobilization

§       RGC will review the mechanism for timber royalties.

         2

5.  Fisheries reform

§       The section of the IPRSP policy matrix on ‘Land and Forests’ should also cover fisheries reforms

§       Legally protect the right of local communities living nearby fishing areas to fish for subsistence.

§       Involve local communities, NGOs and concerned agencies and institutions in a consultative process to draft a more realistic fishery law.

§       Curtail illegal fishing and the militarization of fishery resources

§       Address harmful impacts of commercial fishing on local communities

§       Develop coastal zone management

§       Improve management of Tonle Sap ecosystem

§       Draft Water Law and water management/

         3

6.  Promote community-based management of natural resources for sustainable livelihoods of poor people

Ensure sound natural resource management and address poverty by widening the poor’s access to forest, fisheries and water resources

 

7.  The environment’s natural resources should be sustainably utilized and protected since poor communities and vulnerable groups depend on these resources for their daily sustenance and livelihoods.

Environmental protection

§       Provide local communities with the skills to sustainably manage natural resources

§       Design programs to preserve and utilise indigenous women's traditional ecological knowledge, including the preservation of bio-diversity

The medium term objectives are to:

§       develop coastal zone management;

§       enhance forest management;

§       reduce urban and industrial pollution;

§       strengthen protected area management;

§       improve management of the Tonle Sap ecosystem; and

§       build the environmental planning capacity of core institutions.

Implement the action plans outlined in the National Environmental Action Plan (NEAP) in particular bio-diversity and protected area management.

 

ADDITIONAL COMMENTS/CORRECTIONS 8.  

 

 


 

SMALL GROUP DISCUSSION 1 -  KEY POLICY ISSUES

Group 4 -  Health and Education

I.  Look at the matrix of strategies for the topic of your sectoral group.  Make corrections and any additions to the list which you think are important.  Rank the three (3) most important strategies on the list, with number "1" as the most important.

NGO RECOMMENDATIONS

WHAT I-PRSP SAYS

RANKING

1.  Financial transparency and address corruption issues, particularly in health and education disbursements from the MEF, ‘under the table payments’, and procurement of drugs by private monopoly provider

(Governance Action Plan, which is to be incorporated in the PRSP, addresses issues on transparency and anti-corruption  generally)

         1

2.  Address chronic underfunding for heath and education

13.   Redirect funding from the military to social sectors

·       Increase spending on health and education

·       Fully implement Priority Action Program for health and education

·       Reduce parental contribution to education from current level of 50% to 18% in next 5 years

         2

3.  Review policy on user fees

·       User fee schemes in the health sector with ineffective exemptions result in even reduced access to health care by the poor who cannot afford to pay

·       In health sector, introduce cost-sharing partnerships with local communities through user fees and expand access and equity of services for the poor through a well-monitored system of user fee exemptions

·       MEYS will introduce user fees at the university level in 2000-2001 to formalize currently widespread unofficial fees and contributions; MEYS will not adopt user fees at primary and secondary levels as it will exclude an increasing number of poor children

 

4.  Address high rate of repetition and drop-out, especially in grades one and two, in the education sector

·       Expand access to Grade 1 to 9 to all school age children through provision of additional classrooms and equipment

·       Closing rural/urban and gender gaps at both primary and lower secondary levels

·       Highest priority will be placed on female education

·       Widen access by young street children to public educational facilities in urban areas, with NGOs

 

5.  Improve health services (e.g. MPA package in health sector)

Address unethical practice and poor standards

Enforce rules and regulations

·       Expand network of health centers and referral hospitals

·       Strengthen capacity of referral hospitals through use of improved technology and management techniques

·       Provide minimum and complementary package of activities (focusing on maternal and child health and national disease control) and expand these services into rural areas

·       Promote women and child health through basic care service delivery for all women

·       Reduce the incidence of communicable diseases

·       Provide drugs, equipment and materials

·       A sustainable essential drugs program will be developed

 

6.  Improve education services

·       Improve teaching and training process through government’s provision of textbooks, increased school operating budgets and additional resources for professional development

·       Strengthen inspection of education quality and ensure rigorous monitoring of staffing norms

 

7.  Civil and public administration reform