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Governance and Transparency

    (i)         Introduction

The concept of good governance is characterized by transparency, accountability, public participation, predictability, adherence to the rule of law, and cooperation between government and civil society. Corruption is a key symptom of weak governance; studies[1] show that it is widespread in Cambodian society. The judiciary, customs, tax authorities, health sector, education, road services and police are the worst affected areas. Corruption and poverty are two sides of a coin; the goal is to replace this coin with another one, which has good governance and transparency on its two faces.

The Royal Government of Cambodia’s (RGC) draft ‘Second Five Year Socio-economic Development Plan, 2001-2005’, and the National Poverty Reduction Strategy (NPRS) paper state that improvement in the governance environment can be realized through updating and effective implementation of the Governance Action Plan (GAP) 2001.

The RGC and National Assembly (NA) have passed the Law on National Audit Authority in 2000 to ensure transparency in the management of the national budget. NGO contributions to strengthening good governance and transparency have included helping to build a National Coalition for Transparency, in conjunction with the Ministry of Education, Youth and Sports, to develop a school curriculum on transparency, accountability, good governance and corruption. In 2002, in the Consultative Group (CG) meeting, NGOs expressed concern about the uneven and not always transparent legislative process. In June 2003 a draft anti-corruption law was sent to the NA after several years’ effort by NGOs and support from some political parties. But the definition of ‘corruption’ in the draft law is very vague. The draft law must be reviewed and debated by the newly elected Members of Parliament before it is passed, strengthening the definition of corruption and applying harsher penalties to violators.

     (ii)          Key Issues

After the inauguration of Cambodia’s new government in 1993 the RGC made efforts to adjust and reform governance structures with the aim of creating a liberal democracy and a market economy. New laws have been enacted, and a large number of administrative orders were issued to implement those laws. New institutions and organizations were created to bear important responsibilities in the public sector.  Despite these efforts, there are still many obstacles to the efficient implementation of the principles of good governance and transparency.

Transparency and Corruption: If the government wants transparency, every institution must develop mechanisms that inform the public of their processes. Transparency is a key element of good governance, covering government institutions, the private sector, civil society, and the media. Corruption demoralizes democratic aspirations, damages the trust and confidence of the people for their leaders, impedes economic growth and development, and threatens institutions, fundamental rights and freedoms. It also threatens international support for the country, which, in the case of Cambodia according to one estimate, totals $500 million a year[2]. In a World Bank survey, corruption has been identified as Cambodia’s leading problem ahead of other major problems that include safety and crime, the cost of living, unemployment, the high cost of health care and education, political instability, drug abuse, and human trafficking[3]. The same survey shows that a large part of the burden of corruption weighs on low-income households who must pay bribes for basic public goods, such as health and education.

Rule of Law: Efforts have been made by the RGC to draft and enact laws and regulations to fight corruption and to ensure good governance, but true rule of law remains elusive. There is a big difference between passing laws and enforcing them. Efforts must be made to support effective mechanisms and structures for the application and enforcement of laws and regulations. Even though anti-corruption legislation is important, it should be remembered that under existing Cambodian law, such as the ‘Provisions Relating to the Judiciary and Criminal Law and Procedure Applicable in Cambodia During the Transitional Period’, it is already possible to prosecute culprits for crimes including ‘Embezzlement by Public Officials’, ‘Corruption’ and ‘Bribery’.  These provisions are not generally enforced and it is not realistic to think any new anti-corruption law would be treated differently as long as the RGC does not address the problem of a persisting culture of impunity, and take effective action to rid the courts of corruption.  While waiting for the new legislation to be implemented it is important that existing anti-corruption provisions are enacted as much as is practicable.

At one NGO-funded hospital, a nurse demanded money before administering antibiotics to a dying baby. The father had to mortgage his house to secure the funds[4].

 

     (iii)        Recommendations

Recommendations for Government:

·         Strengthening Political Will to Fight Corruption: The draft Anti-Corruption law itself is not effective for its vague definition of “corruption” in combating corruption and punishing wrongdoer. It must be reviewed. The government should use its new 5 years mandate and political will to enforce laws to end corruption. This has been done in other Asian countries such as Singapore. The issue of curbing corruption in the 2003 election was highly prioritized in the platforms of all major parties. Leaders agreed corruption is doing tremendous damage to the country. But Cambodia needs strong political will on the part of its leaders, and cooperation by all political leaders is required to fight against corruption not only for the advancement of their party’s interest but for the betterment of the whole country.

·         An Independent Anti-Corruption Commission: Implementing anti-corruption legislation is more important than passing it. An independent anti-corruption commission needs to be established with full authority to enforce the law. Commission members should be well qualified, recruitment procedures should be transparent, and effective working procedures should be established.

·         Property Rights Act: To reduce poverty, increase foreign investment and create job opportunities, protecting property rights is essential. This will prevent the rich from illegally absorbing the land of poor, and protect and encourage investment. Civil society and NGOs need to take the initiative in drafting this law. The ability to buy, sell, or transfer land and property is a pre-requisite for the effective rule of law.

·         Declaration of Assets and Liabilities: The government should implement widely accepted standards of public behavior as defined in Chapter Five of the draft Anti-Corruption law, as evidence of its commitment to transparent government. Ministers, including the Prime Minister, should publicly declare their, and their immediate family members’, assets and liabilities.

·         Transparency within Political Parties:  Political parties should undergo major reforms to be more transparent. As in other poor countries, party nominations for elections in Cambodia are often determined by the amount of money given to the party treasury. Without strong, accountable, transparent, and effective political parties government institutions act for personal benefit rather than the national interest. This results in a stifling of political debate; removes necessary checks and balances, and erodes the rule of law.

·         Fiscal Management: Cambodian people receive from the government approximately $7 per person per year worth of health-care and education services (compared to  $150 in Thailand)[5]. To improve government service for the people, fiscal reform and management is necessary. In 2002, the Council of Ministers, Ministry of Finance and Ministry of Interior all overspent their budgets by more than 40%, while the priority sectors of rural development, education and health received less than 80% of their budgets.  In 2003, the situation continues to deteriorate, with the Ministry of Health receiving only 21 percent of its budget in the first 8 months of the year."

·         Legal and Judicial Reform: The RGC should make a strong commitment to implement the legal and judicial reforms defined in the GAP. The government should draft a code of ethics for judges. Laws should be applied effectively and impartially to punish wrongdoing, even by those with high income and with political affiliations.

·         Increasing Standard of Living: The RGC needs to establish priorities for areas needing reform. Compared to the cost of living the salary of civil servants is not high enough. Salaries should be increased so public servants do not need to take bribes to maintain a minimum standard of living. Transparency should be maintained in hiring staff; skill and experience should be the primary criteria in hiring, not political connections or personal relations.

·         Decentralization and Strengthening Local Governance: Commune and Sangkat councils are apparently powerless. To ensure decentralization and strengthening local governance the rural poor should have the capacity to protect their rights and interests, the power and skill to make decision on their own problems. Responsibilities should be devolved to the commune level from the center; the practice of participatory and bottom-up planning should be undertaken. The international and local NGOs should directly work with government and keep pressure for taking decentralization initiatives.

·         Access to Information: It is impossible to fight corruption and ensure good governance without a free and impartial media. Access to information, and freedom of expression in both public and private media should be guaranteed. But it should be remembered that as Cambodia is a poor country, free access to all public information is still not possible. Some information, like laws should be supplied free of charge; and some information, like history of correspondence of RGC should be available for a fee that reflects at least a part of the cost of collecting the information.

·         Public Education: An educated and literate population is one of the best tools to fight corruption. To break down the system of corruption in Cambodia the public should learn that the duty of those in positions of political and governmental power is to serve them. This concept should extend to include all levels of education and the training of government officials. The national budget for education should be increased with a focus on improving teacher training and salaries, not just building new schools. Furthermore the budget should be increased at the expense of national defense.

Recommendations for Donor:

Recommendations for NGOs:

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[1] See CSD, (1998), National Survey on Public Attitudes towards Corruption, Phnom Penh.

[2] See CSD, (1998), National Survey on Public Attitudes towards Corruption, Phnom Penh.

[3] World Bank, (2000), Cambodia: Governance and Corruption Diagnostic: Evidence from Citizen, Enterprise and public Official Surveys.

[4] See CSD’s report, Ibid.

[5] See Cambodia’s Annual Economic Review-2002, by CDRI

[6] NGO Statement to the 2002 Consultative Group meeting on Cambodia.

For more information on the issues raised in this paper, please contact:

The Center for Social Development (CSD), Tel: 023 364-735, Email: csd@online.com.kh