The Royal Government of Cambodia has determined its new role in the society.  The role of the state is a strategist and partner in development. It is willing to achieve a fair, just and peaceful society by acting as an effective and efficient partner with the private sector and civil society. Through this new role, the state needs to optimize the sustainable use of its national resources, including human resources. The state has to provide at least basic services to its people effectively and efficiently. With this new role, the state needs a public administration, which is neutral, more operational, transparent, closer to the people, competent and responsible. 

The current issues in general administration, which the GAP addresses, are:

• Low salaries scale in the public sector

• Corruption in the public sector

• Poor quality of public services

• Imbalance between front office staff and back office staff

• Lack of accountability and transparency in public administration

Through the GAP, the RGC has adopted a wide-ranging national program for administrative reform that seeks to strengthen institutions and the legal framework, good governance and public service delivery, human resource management and change management. To encounter the current problems in administration, the government is committed and addressing such issues as: (i) further building their capacity to implement the reforms; (ii) optimizing the organization of the work within the administration; (iii) implementing a program to rationalize and to redeploy the workforce; (iv) establishing priority mission groups, adequately remunerated, to spearhead the reform; (v) implementing a program to improve motivation; (vi) completing the restructuring and implementation of an automated human resource management information system (HRMIS) and an automated payroll; (vii) developing and implementing a program of de-concentration. 

The Governance Action Plan addresses the following short-term (one year) and medium term (2-3 years) initiatives:

Short term:
1.   Urgently complete ongoing initiatives
2.   Civil servant census and the removal the irregularity
3.   Early step of functional analysis
4.   Establish a computerized personal management system
5.   Pay deployment and fiscal balance simulation
6.   Develop a strategy including comprehensive action plan, detail sequencing and responsibilities for:
7.   Rationalizing the pay and employment structure, and skill distribution within the civil service
8.   Priority mission groups
9.   Personal management base on meritocracy
10. Smooth information flow within and among agency involve
11. Timely payment of living wage
12. De-concentration
13. Develop a strategy and implementation plan and initiate the establishment of the priority groups.
14. Develop a strategy to de-concentrate administrative functions.
15. Promote participation of line ministries in building broad ownership of plan.
16. Undertake an information session with stakeholders to disseminate the objectives and activities of the   
     administrative reform.

Medium term:
1.   Continue to build the capacity of the Council of Administrative Reform (CAR).
2.   Complete the subsequent phase of the functional analysis (Functional analysis should be done by the
      specialist under supervision of the international consultant).
3.   Implementation of the deployment and rationalization phase of reform.

The Council for Administrative Reform has a Secretariat in the Council of Ministers. The Secretariat has capable people who understand the reform concepts, and an international consultant to assist and guide them in their work. 

The following summary of progress was prepared in February-March 2002 as the basis for further NGO discussions on the reforms. 

In general, the public administrative reform has made some notable progress compared to other government reform programs, although there is so far limited impact. 

a) Short term 

The program has completed the civil service census and removal of 9,000 irregulars from the payroll. Back office activities have been mapped. The census database is being turn in to a HRMIS. The automated payroll is now operational. The study of employment and fiscal balance are now complete. As a result, a modest salary increase was achieved in 2002, although salaries are still far from being a living wage.

A “Strategy to Rationalize the Civil Service 2002-2006” has been approved by the Council of Ministers on October 19, 2001. The operational priorities of administrative reform in 2002 were finalized by January 2002. 

A strategy for establishing Priority Mission Groups (PMG) has been prepared with assistance of the ADB and UNDP. However, the detailed plan to implement the PMG is in process and line ministries have yet to develop detailed plans on how these PMGs will be identified and used. This reform is expected to accelerate after a sub-decree on the PMGs is finalized. 

A strategy to de-concentrate the administration is an operational priority of the administrative reform in 2002. However, it will need a comprehensive strategy for implementation and more work on this is needed. 

Ministries actively participate through membership in inter-ministerial committees set up to facilitate implementation of each National Program of Administrative Reform (NPAR) initiative. 

Public participation and public consultation was partly achieved. The government officials and donors were consulted and participated in the plan. However, further civil society awareness of the program is needed. 

In general most parts of the short-term plan have been achieved or are in process. 

b) Long term 

The capacity of the CAR Secretariat has been built, and key staff of the Secretariat have been given a financial incentive through being included in the PMGs. The functional analysis of civil servants is in process. The deployment and rationalization phase are just beginning and need more time to implement. 

Further details of progress 

The progress report in the matrix below was prepared by the General-Secretariat of the Council for Administrative Reform (CAR) GAP monitoring unit in December 2001. The CAR received information on all reform areas in the GAP and summarized its findings in the progress report. The NGO Forum has made additional comments (in italics) to update the GAP progress report through interviews with donors, experts and technical persons in the field.  The table gives more details on progress in achieving the short-term (one year) and medium-term (2-3 years) goals. 

Progress in Administrative Reform*

Actions to take	Current status
Short term Action (1 year)
Urgently complete ongoing initiatives which are required to help Government develop a well-informed plan to rationalize and to redeploy the workforce, including: The civil service census and the removal of irregulars;	Partially completed, in process Part of NPAR Phase One which was designed to establish appropriate foundations for the management of the Civil Service has been completed. Completed.  Some 9,000 irregulars removed from the payroll. However, some government staff who are no longer working for the government are still on the payroll and their salaries are pocketed by their supervisors.**
Early steps of the functional analysis (corporate services, strategic processes, selected service delivery operations);	Partially completed, in process Back office processes have been mapped and are being validated by ministries. This stage was finalized by February 2002 but the capacity of the counterparts in line ministry has not sufficient to do the validation on time.
Establishment of a computerized personnel management and payroll system, including the broadening of the current computerised payroll system to cover all payments (wages and allowances) to all civil servants;	Partially completed, in process Census database are being turned in to HRMIS. First three applications including automated payroll are now operational.
Pay, employment and fiscal balance simulation.	Completed. Used as basis for rationalization strategy. Study on safety nets completed
Develop a Strategy to Reform the Public Service detailing the sequencing and responsibilities for: (a) rationalizing pay and employment structure; (b) Priority groups; (c) Personnel management based on meritocracy; (d) Smooth information flows within and between agencies involved in managing the civil service; (e) Timely payment of living wages; (f) Donor-paid supplementation; (g) de-concentration:  The detailed plan should also ensure that all donor activities in this area are consistent and coordinated.	Completed Strategy to rationalize the civil service has been approved by the Council of Ministers on October 19, 2001. Action plan for 2002 will ready by end of December.   Aide Memoir on Administrative Reform circulated at the TOKYO CG provides outline for key elements. TA relating to other elements of strategy (e.g. special operating agencies, one window service delivery and information technology) is being mobilized             The strategy for rationalization was approved on October 19, 2001. The new GAP will be available for discussion by April 2002. The strategy to rationalize the civil service (2002-2005) includes (i) new classification system (ii) new remuneration system, (iii) Civil service rationalization, (iv) priority mission groups, (v) Bring the administration closer to the people (vi) Capacity strengthening.             The operational priorities of administrative reform for 2002 includes (i) Priority mission groups, (ii) Deconcentration, (iii) Human resource development, (iv) IT and communications, (v) strengthening the capacity of CAR secretariat
Develop a strategy and implementation plan for the establishment of priority groups that will take into account risk factors and implications on the civil service while other measures take hold.	Partially completed, in process Concept document prepared with assistance of ADB; program being articulated with assistance from UNDP; will be ready for implementation starting in 2002. However, the detailed plan to implement the PMG is in process and line ministries have yet to develop detailed plans on how these PMGs will be identified and used. This reform is expected to accelerate after a sub-decree on the PMGs is finalized
Develop a strategy to deconcentrate administrative functions to enhance the capacity of provincial and district administrations to improve service delivery and to support elected communal councils.	Partially completed, in process Strategy Action Plan completed by end of December. Operational priorities of the administrative reform for 2002 includes deconcentration.
Promote the participation of line ministries in building broad ownership of the plan	Partially completed, in process Ministries actively participate through membership in inter-ministerial committees set up to facilitate implementation of each NPAR initiative.  The effectiveness of these inter-ministerial committees should be questioned and further enhanced.
Undertake information sessions with stakeholders about the objectives and activities of administrative reform.	Partially completed, in process Ongoing through monthly newsletter and other means. Dissemination of NPAR will also be a part of GAP dissemination campaign.  Regularly working sections held with external partners under aegis of Donor Working Group on Administrative Reform. Press interviews have been given, and presentations made at NGO and donor-sponsored workshops.  However, the task is enormous, and the reform remains invisible to many government staff and the general public. The newsletter reaches mainly high-ranking officers of ministries. There is a little informed media coverage, due in part to the limitations of Cambodia’s media.
Medium term (2-3 Years)
Continue to build the capacity of the CAR General Secretariat to manage the reform program.	In process Strategy and plan under development. Will include establishment of PMG at CAR secretariat.
Complete the subsequent phases of the functional analysis (service delivery operations in remaining ministries, missions and mandates among ministries).	Not yet Will be initiated in 2002 in time for second phase of deconcentration program.
Implement the redeployment and rationalization phase of the reform.	In process SRCS will be implemented starting January 2002, necessary preparatory work will be completed by the end of December

* Source: Council for Administrative Reform (December 11, 2001), “GAP Progress Report”
** Information in italics has been added, based on interviews or reviewing official documents/report. 

NGOs are not involved in the technical side of administrative reform.  However, many NGOs are working with government counterparts.  Some have been contracted by government to perform health or education services.  NGOs in the health sector are represented by MEDICAM, which maintains a close dialogue with the Ministry of Health. In the education sector, EDUCAM represents both NGOs and international organizations, while the NGO Education Partnership (NEP) is representing specifically NGOs in policy discussions. 

The outcome of the public administration reform will affect many NGOs activities in the field. The administrative reform has the ultimate goal to provide better basic services for the people and indirectly to improve the well being of the people. This goal coincides with the goals of many NGOs. 

NGOs involved in this reform area have observed the following issues that need to be addressed in implementation of administrative reform in the GAP: 

The reform program is in process. The first stage of reform is now basically finished but it will take much longer to achieve the long-term objectives.  As impacts are only expected in the later phases, there are so far few observable impacts of the reform on the delivery of services.  The first stage has been largely technical in nature, and reliant on donor-assisted projects.  Subsequent stages may have greater affect on vested interests, and will entail a larger test of political will. 

The following are the concerns of NGOs related to these issues:

• Low salaries for civil servants
  The low salaries in the public sector are the outstanding issue in public administration today. It is the chief cause of the low quality of public services such as in health and education, and a major obstacle to efforts to counter corruption.  Ironically, the Ministry of Health’s budget has been greatly increased in recent years, but actual expenditures remain much lower; these extra funds cannot be used for the most pressing need, to increase salaries.  The Priority Mission Group will provide higher salaries to a very small central group.  While this is most welcome, it does not solve the problem for the majority of health workers and teachers throughout the country.
  
  

• Late payment of salaries
  The introduction of a computerized and centralized payroll system does not seem to have changed the chronic problem of late salary payments, with delays of three months or more still being reported. Contract teachers, who often work in remote areas of the country where salaried staff are not prepared to work, do not receive payment until many months after the expiry of their contracts.
  
  

• Failure of the civil service census to identify much absenteeism
  The civil service census was successful in identifying over 9,000  “ghosts” and removing them from the payroll.  However, it was not successful in identifying many living public servants who have changed jobs or who no longer show up for work and whose salaries are pocketed by their supervisors.  The reason is that when the census was held, these were the first staff to be informed by their supervisors to attend.  This group of people also constitutes a skilled group who may be attracted back to the public service if salaries were commensurate with that in the private sector.

• Imbalance of workforce in public sector
  There is a need for quality service to the public, but there are too many workers in “back office” positions while too few people working in “front office” positions. This will entail a big change in the public service and more work and effort will be needed to overcome overwhelming resistance.  Consideration needs to be given to the fact that redeployment is not always possible, due to differences in skill requirements. 

• Lack of skilled staff in remote areas
  There are a lack of skilled teachers and health workers willing to work in remote areas.  Rural areas can often only attract contract teachers who have no formal teacher training.  There are insufficient incentives to work in remote areas, and Teacher Training Centres are not targeting the training of teachers from the remote areas.
  
  

• Involvement of private sector
  Poor salaries in the public sector has led to the formation of many private clinics, most of which are not following Ministry guidelines regarding safe practices.  Cambodians are paying an average of $29 per person annually on health services, while the public health budget is $2.1 per person.  There is a need to bring the private sector back under control.  The health and education sectors are a social investment, and must be managed by the government with enforced standards that apply equally to private and public sectors.
  
  

• Introduction of user fees  (see also under Public Finance Reform)
  Low government revenues have necessitated the introduction of user fees in the health sector.  There is concern among NGOs that exemption schemes for the poor are not effective, as health centers know that allowing exemptions will reduce their revenue.  Equity funding is needed to cover the cost of exemptions.  NGOs are happy to note that in the education sector the elimination of entry fees has led to an increase in enrolments.
  
  

• Corruption in public sector
  Corruption in the public sector is widespread among all government institutions. In the education sector, corruption is noticeable in college entrance procedures and in the deployment of staff. In the health sector, there is still corruption and lack of competitive procedures in the procurement of drugs.  In all sectors of government, corrupt payments are evident in the delivery of almost all services and in selection of staff for important positions.  (See separate chapter on Anti-Corruption).

• Good governance in the NGO sector
  NGOs have advantages over government in implementing good governance, due to their ability to pay living wages, the small size of their operations, and the competitive environment in which they compete for donor funding.  Nevertheless, they operate in the same cultural and legal environment as does the government, and problems remain.  Measures to improve governance in the NGO sector have included the promotion of a Code of Ethics for NGOs and its dissemination during annual NGO Fairs, training programs in financial and organizational management, and discussions and workshops promoting the role of NGO boards.  Many local NGOs in Cambodia currently do not have properly functioning boards.  Many NGOs undergo regular financial audits by internationally recognized independent auditors, but more could do so.  Some NGO boards have instigated special audits when management problems have come to light.

Recommendations to Government:

• The government, with adequate donor support, should speed up the process of administrative reform especially related to increased salaries in social sectors.  Salaries of teachers and health workers should be given priority.
  
  

• The involvement of civil society groups in consultative processes should be continued and expanded so that specialized NGOs could provide some input into development of the strategy.
  
  

• Efforts to spread information to the public about the administrative reforms should be continued and expanded, with dissemination through all types of media.  Awareness should also be built among low ranking government officials.  Further workshops should be organized to provide an opportunity for people to share input and discuss concerns.
  
  

• There should be detailed plans on how to address imbalances in the public service, especially the lack of skilled staff in remote areas.  Adequate financial incentives have been shown to attract health workers to remote areas.  In the education sector, Teacher Training Centres should have quotas for students from remote areas, as students from these areas are the most likely ones to be prepared to teach there.

Recommendations to Donors:

• Donor should actively monitor the process and ensure that the desired impact on the provision of services is achieved.  Pressure should be maintained for change, including the idea of selection of people on merit, and the elimination of political influence and nepotism.
  
  

• Deconcentration should be supported by projects that focus on building capacity for provincial or district level planning.  The EQIP project, supported by the World Bank, is a good example.
  
  

• Donors should consider supporting equity-funding schemes in the health sector to help cover the cost of exemptions for the poor.

Recommendations to NGOs:

• NGOs should play a role in monitoring the process of administration reform and observe the impacts and affects of the reform on the communities with whom they work.  A study on the affects of administrative reform on the provision of basic services to the people could be conducted in consultation with the government.
  
  

• NGOs should seek to further understand and spread awareness of the GAP and provide their inputs in development of the plans and strategies related to administrative reform such as:

a.       Analysis of function of public service

b.      Analysis of allocation of personnel

c.       Setting up standards for the PMGs

• The best contribution NGOs can make is to set a good example of good governance themselves.  Measures should include training in proper financial and organizational management, further dissemination of a Code of Ethics for NGOs, and strengthening the role of NGO boards.  NGO peak bodies should study examples of self-regulation in the NGO sector from other countries and devise appropriate strategies for improving governance of the NGO sector in Cambodia.

Further NGO recommendations related to administrative reform within the health and education sectors may be found in the Health and Education sectoral papers of the NGO Statement to the 2002 CG Meeting.