· 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?
-----	------

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)

Rural Development and Decentralization
Agriculture and Food Security
Land, Forests, Fisheries and Environment
Health / Education
Women's and Children's Rights
Urban Poor and Industrial Workers
Good Governance and Human Rights
Disaster Management

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 - 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

Kompong Thom Workshop Results

No. TITLE

English versions only

PM Session

Drafting process

(v) Lack of infrastructure

ANNEX 1: POLICY MATRIX (2000-2002)