COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC)

2. MAJOR ACHIEVEMENTS SINCE THE 6th CG MEETING HELD IN
CAMBODIA IN JUNE 2002

11. Since the 6th Consultative Group Meeting held for the first time in Phnom Penh, in June 2002, the Royal Government of Cambodia (RGC) has made significant progress in moving forward to achieve Cambodia’s Millennium Development Goals. In all its actions and endeavors, the RGC has put forth its best effort to implement the recommendations made at the last CG meeting.

Major Achievements

2.1    Government’s Policy Performance
2.2    Macroeconomic Performance
2.3    Monetary and Fiscal Performance
2.4    Sectoral Developments
2.5    Other Cross-cutting Programs

The National Poverty Reduction Strategy was prepared and officially launched in March 2003; the fiscal and banking reforms have deepened; the civil service reform strategy was finalized and is being implemented; mechanisms for the devolution of power at the commune level after the commune elections in 2002 are being put in place and strengthened; the strategy on legal and judicial reform has been prepared and is now being implemented; management of natural resources has been strengthened through the adoption and implementation of the Land Law, formulation of the Forestry Law and the Community Forest Law and access by the poor to fisheries resources has been improved; the implementation of the provisions of the procurement sub-decree now covers all expenditures in all ministries and agencies except the Royal Palace; the Law on Investments has been amended; the National Audit Authority (NAA) is now fully operational; the Financial Sector Development Plan for 2001-2010 was finalized and is being implemented; and the Second Socio-Economic Development Plan (2001-2005) was finalized and implemented.

12. During the second mandate of the Royal Government, 1998-2003, the country has experienced a level of security and personal safety that it had not witnessed in recent times. The uniquely historic and noteworthy achievement during this period was the free and fair elections of the Commune Councils in February 2002. It represented an important step forward for democracy and a fundamental deepening of the reform process. The newly established commune councils represent a delegation of power to local communities who have now become an integral element of local governance. The devolution of power and the transfer of resources to the grassroots communities are now leading the process of change. This change process has not only unleashed the powerful force of financial devolution and engendered a far-reaching stimulus for strengthening grassroots democracy, but is also beginning to restructure the social capital of local communities. It is bringing further political stability and security in the country, which are vital for the country's march toward improvement in the living standards of the people, better respect for human rights and sustainable development.

13. Another dividend of achieving an environment of peace and security in the country was the successful completion of free and fair General Elections on 27 July 2003 and the successful completion of prolonged negotiations to form the new Government in an environment of peace and security. The successful completion of the two elections over the last five years has now institutionalized the traditions of democracy in Cambodia.