Agriculture and Rural Development

(1). Agriculture and Rural Development

Agriculture and Rural Development receives extensive attention in the NPRS, as improving livelihoods is one of eight priority poverty reduction areas. In Section 3 (Multiple Dimensions of Poverty in Cambodia), the NPRS says that: “the overall objective of the RGC is to increase the incomes of Cambodians living in rural areas by addressing several key policy areas: land, water, agriculture, forestry and fisheries, and transport. Poor health and education, as well as lack of agricultural infrastructure and low productivity also contribute to the rural poverty. Another key objective is increase rural employment opportunities for the poor.”

In Section 3.1.1. (Lack of Opportunities), the NPRS observes that: “Over the past decade, agriculture has accounted for 40% of GDP, and has been growing by an average of 3.6% per year.” However, “agricultural output has experienced large year-to year fluctuations as a result of insufficient investments, over-exploitation of natural resources, and precarious weather conditions.” The RGC’s current overall 6% growth strategy will “ensure significant poverty reduction, if it includes similar levels of growth in agricultural and rural development.”

The section on Improving Rural Livelihood (4.1.2.) refers to a number of key areas:
Improved Access to Land
This is discussed elsewhere under Land Reform.

Promoting Agricultural Development

This section involves a lengthy discussion of ways to improve productivity at the household level, “while promoting sustainable natural resource management as demand increases.” The RCG promotes rapid and sustainable increase in agricultural productivity through the “adoption of suitable, productive and cost-effective technologies, such as small-scale, farmer controlled, private irrigation facilities, and to encourage crop diversification and intensification practices.”

The strategic objectives for the agriculture sector are to:

ensure an adequate legal framework and institutional environment;
strengthen capacity and improve knowledge system within the Government, stakeholders, and especially small-scale farmers;
promote intensification, diversification and security of agricultural production;
promote sustainable natural resources management and conservation;
promote agricultural product processing and investment in agro-industries; and
strengthen agricultural marketing system and market access.

Specific inputs include:

accelerated and sustainable irrigation development;
accelerated program for titling and distribution of idle agricultural land under MAFF;
development of an export market for rice and other agricultural products, and processing and product quality control facilities;
strengthening essential agricultural support services and functions including extension, research and development, marketing, credit and input distribution;
expansion of livestock production with emphasis on animal health services, nutrition and range management and establishment of meat processing plants;
improved management and introduction of appropriate technologies for rice fish farming and aquaculture; promotion of community-based forestry and fisheries management; and strengthening the capacities at all levels of MAFF, MOWRAM, MRD and MLMUPC.

The Promotion of One Village One Product Movement

This section (one paragraph in length) is somewhat vague, and requires clarification.

Water Resource Management and Irrigation and Drainage Development

This section is more extensive, and ambitious. The NPRS observes that that only 19.5% of the cultivated land area in Cambodia is irrigated (most of which is wet season rice) This area currently produces 31.4% of the total rice production. The goal of the MOWRAM is to increase the irrigated area from 20 to 24 percent of the cropped area by 2007. This suggests an increase of approximately 30,000 ha./year, which in turn represents a significant degree of investment. The NPRS suggests that this may require private sector involvement in the provision and management of irrigation and draining, and related services.

Roads and Transport

In terms of reducing the price of agricultural inputs, as well as improving market access for agricultural outputs, improvements in rural roads and transport are essential. The NPRS suggests that investments in rural road construction and maintenance can have significant (i.e., positive) impact on rural incomes and the quality of life. The NPRS also refers to the need to develop rail and inland waterways linkages, but observes that in general “the transport agencies, at times, receive only a fraction of their official budget allocations,” and as a result are “not able to efficiently plan and manage the country’s roads assets.

Note: Other key areas concerning rural livelihoods and agricultural development are discussed elsewhere under separate headings. These include sections on Fisheries, Forestry Sector, Landmines and UXOs in Affected Communities, Land Reform, MicroFiannce, and Trade. It should also be noted, as mentioned above, that several sectors, including health, nutrition, and education, feature extensive reference to the rural poor.

Section 4.2.7. (Industrial Development) also contains references to agriculture. For example, the NPRS states that “The core strategy for agro-industry development is to grant concession land plots to both domestic and foreign companies on a long-term basis, and to encourage the participation of local small landholders through contract growing for processing factories in the area…. Strengthening the economic linkage between agriculture and industry within the context of sound environmental management is seen as essential to the creation of incomes and employment.”
In Section 4.5.6., (Sustainable Management and Use of Natural Resources and the Environment), the NPRS also acknowledges “pesticide use in agriculture continues to be a great concern, and thus MOE will take as part of its tasks to the reduction of the environmental impact of widespread use of agrochemicals as well as the elimination of the use of dangerous pesticides (including DDT). This section also goes on to say that “the MOE will perform not only the enforcement of regulations, but will also undertake public education programs to ensure that farmers and consumers have access to information on pesticides and their hazards.”

NGO Action

NGOs are concerned with two main issues: :(1) the overuse of agro-chemicals, which have negative impacts not only at the household level but also in the national economy and the environment; and (2) the lack of public consultation and debate about the possible impact on small farmers of WTO membership and the Agreement on Agriculture.”
The rapid intensification of rice production and references to agri-business investments (e.g., agro-processing), imply an increase in the use of imported chemical inputs (e.g., fertilizers and pesticides), the use of new seed varieties, (see Annex 3 Matrix, 1.2.2.). This approach raises a number of questions, including the impact on trade balances and dependency on imports; ecological impact and environmental sustainability; human health impacts; and price stability and market access for small-scale farmers. A number of NGOs are currently promoting Sustainable Agriculture (SA) technologies (e.g., composting, IPM, local seed varieties) and practices. If anything, it seems work in this area should be accelerated.

In terms of the NGO CG Statement, the NPRS contains specific references to SRI technology, as well as extension service directed at small-scale farmers and research, with reference to different agro-ecosystems. There is also reference to special training for rural youth in agriculture and related business. This is a good start, but requires consistent follow up, including NGO participation in relevant activities.

NGOs should continue to press the case for more support for small farmer producers in the context of the APRI by:

Pressing the case concerning the dangers of chemical inputs and promote SA techniques;
Promoting the role of input and output cooperatives at the local level;
Making the case for more attention in the area of extension (e.g., crop, livestock and fisheries production), as well as vocational training and education;
Seeking clarification of the concept of private sector involvement in the irrigation and drainage, and comment as appropriate;
Seek clarification of the role of water user groups and user fee systems, particularly in the context of private sector involvement;” at the local level, and comment as appropriate;
Seek clarification of the procedures for selecting the most efficient and cost-effective projects in large-scale irrigation projects, and comment as appropriate;
Seek clarification, and comment on as appropriate, the NPRS reference to a One Village One Product Movement;
Comment as appropriate on the relationship between large scale agri-business development, including agro-processing, and poverty reduction in the rural sector.

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