COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC)

6. CONCLUSIONS

394. This report has presented the highlights of what has been achieved since the last CG meeting held in Phnom Penh in June 2002. It has provided an update on Government’s policy performance, macroeconomic performance, monetary and fiscal performance, and sectoral developments. It presented highlight and priorities for the implementation of the Rectangular Strategy that is Royal Government's Economic Policy Agenda of the Political Platform for the Third Mandate of the Royal Government. The Rectangular Strategy builds on key elements of Cambodia's Millennium Development Goals, the Cambodia Socio-Economic Development Plan 2001-2005 (SEDP2), the National Poverty Reduction Strategy 2003-2005 (NPRS), and the various policies, strategies, plans and reform programs. All of these strategic frameworks were formulated through broad consultations with all national and international stakeholders, including representatives of civil society and the donor community. Also, the financial requirements and ODA mobilization targets for next three years (2005-2007) based on on-going, committed, and specific new initiatives that the Government plans to implement to achieve its development priorities have been identified. Finally, it has presented information on the magnitude of external development assistance – to complement the domestic resources – that will be required to support the implementation of on-going projects and to begin the implementation of new initiatives.

395. To achieve its development goals, the RGC is fully and firmly committed to the principles of good governance and to maintaining sound macro‑economic policies and fiscal discipline. The RGC will do its utmost to raise domestic savings and capital resources to provide as much funds as possible for its developmental programs. The Royal Government, however, recognizes that it remains dependent on the support of its external development partners in the short-term. For the next three years, 2005-2007, the total external assistance needs for the priority programs/projects that have been identified are estimated to be US$ 1,873.9 million, after taking into consideration the Royal Government’s contribution of US$ 290.4 million. The Royal Government would appreciate pledges for the entire three-year period, to enable it to plan for the implementation of its priority development programs. At this stage of the development of Cambodia, the Royal Government is well aware of the pitfalls of financing its development programs through loan financing, that has implications for debt and debt services charges that are likely to constrain its ability to restructure its budget allocations for social sectors in the future. It, therefore, places a high priority to seeking assistance from its development partners as grants.

396. Over the years, our external development partners have been generous in providing support to Cambodia’s public investment program. The Royal Government of Cambodia is gratified by the support of its external development partners and hopes that they will continue to provide their support to enable Cambodia to achieve its goal of reducing poverty and the Millennium Development Goals.