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| CHAPTER I | |
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INTRODUCTION |
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1.02 On the basis of the national reconciliation among different factions reached at the Paris Peace Conference on October 1991, general elections were held in 1993 leading to the adoption of the new constitution and formation of a national Royal Government of Cambodia (RGC). And from that beginning till date highest priority has been attached to rapid socio-economic progress to lift the country's poor out of poverty and to place the country firmly on a path of self-sustaining growth. Cambodia's Efforts at Planned Development 1.03 To begin with, Cambodia's long-term vision for the future was articulated in the National Programme to Rehabilitate and Develop Cambodia (NPRD) adopted in 1994. Based on that vision, the first five year Socio-Economic Development Plan (SEDP I, 1996-2000) was formulated setting clear goals and milestones to be reached by 2000. The focus was on macro-economic growth, social development, and poverty alleviation. At the same time, a three year rolling Public Investment Programme (PIP) was developed for the period 1996-1998 so that domestic and external aid resources could be channelled to priority areas to achieve goals set out in SEDP I. The process of preparing PIP every year with a three-year focus continues since then. The PIP is also used by RGC to mobilize resources from the external development partners (EDPs). From the beginning the intent has been that the annual budget of RGC would be synchronized with the PIP. 1.04 As SEDP I was nearing its end, SEDP II for the period 2001-2005 was prepared and determined various development targets to be reached by 2005. The focus remained more or less the same as in SEDP I. 1.05 Since the start of SEDP II in 2001, three major, important and forward looking developments have taken place. First, following the historic United Nations Millennium Summit in 2000 which declared broad Millennium Development Goals (MDGs) to be achieved by all countries by year 2015, Cambodia developed its own set of MDGs called Cambodia Millennium Development Goals (CMDGs), focusing on poverty alleviation and human development. These are the highest priorities before RGC, and were arrived at by a highly consultative process. Second, a National Poverty Reduction Strategy (NPRS) was also prepared and adopted in December 2002 through a similar inclusive process. Third, the very first thing the newly elected RGC did in 2004 was to adopt a comprehensive, sharp and focused Strategy for future development, called the "Rectangular Strategy" (RS) for growth, employment, equity and efficiency. The RS is presented in a figurative form with its core related to good governance surrounded by the overall environment in which it takes place and four strategic growth rectangles. 1.06 Cambodia looks ahead to the next five years of planned growth as the SEDP II is due to end in December 2005. However, in preparing the plan for the period, 2006-2010, RGC has decided to move away from the traditional, comprehensive planning approach to one that focuses on strategic goals and actions. The new plan is therefore called the National Strategic Development Plan or NSDP, 2006-2010. It captures essential elements of all the earlier documents (para 1.05). In line with full government ownership and leadership of the entire development process, RGC declares this NSDP as the single, overarching, guiding and reference document for pursuing prioritised goals, targets and actions for the next five years, 2006-2010. 1.07 The major goals for the medium-term of five years are already clear, viz., achievement of interim 2010 targets of CMDGs towards poverty reduction taking account of findings and recommendations of NPRS, along with other necessary achievements in macro-economic, productive and service sectors. The strategies to be followed are also laid out by the RS. The need now is to weave together all the strands, in a coherent and balanced manner and look at the future and actions to be taken holistically from a national rather than merely sectoral perspective. The need is to prioritize among competing goals and targets; focus on specific strategies and actions; consider costs; and, allocate resources. It is now time to start implementing and operationalising RS to achieve the NSDP goals. NSDP Process 1.08 Starting on a results-oriented emphasis, extensive consultations were held among all stakeholders -- government ministries and agencies, EDPs, civil society organisations -- to agree upon overall priority goals to be achieved during NSDP. Workshops were held bringing together all the parties to jointly look at the NSDP goals and constraints to be overcome to achieve them. This highly participatory process was very helpful in not only eliciting views and opinions of a broad range of people but it was equally useful in helping all participants to look at the goals more broadly to appreciate inter-linkages than merely from their sector or particular perspective. A results-matrix fine-tuned during these consultations helped shape and sharpen the measurable, priority goals and targets to be met by NSDP and the priority actions needed to meet them as well as overcome critical constraints. The draft NSDP was discussed extensively within the government through an inter-ministerial consultation. It was also shared with EDPs for their comments and suggestions. The revised draft was then discussed openly with all stakeholders at a national level workshop. The final document reflects all the inputs from these consultation processes. Priorities and Contents of NSDP 1.09 The National Strategic Development Plan (NSDP), 2006-10, contained in this document should therefore be considered an operational and guiding tool to achieve the said objectives, goals and targets. It is a document "for and by the whole of Cambodia". It is not a mere academic exercise. It is a practical document to achieve realistic, specific high priority national targets by 2010 to move towards longer-term goals, using the framework of the Rectangular Strategy. Emphasis is on results (outputs, outcomes) to be achieved, not merely on inputs, activities and processes. The NSDP is also a compact and concise document, not overly descriptive. It touches and highlights most essential overarching goals, strategies, targets and actions and leaves more details to be developed and spelt out in sectoral and sub-national plans based on national priorities contained in this NSDP document. 1.10 This NSDP identifies and lays out:
1.11 The NSDP is organized sector wise, not ministry-wise, using the RS framework. In some cases, more detailed goals and sub-goals for each sector have been developed and in others, such sectoral plans will soon be developed. Likewise, provinces, districts and communes would disaggregate the national goals and targets down to those relevant to their situation and circumstances and develop detailed measurable goals -- including commune level ones -- and plans to address priority development needs in their respective areas, using increasing funds being made available to them under the recently expanded and enhanced decentralization and deconcentration policies and procedures. The synergy of all these efforts is expected to yield the results anticipated in NSDP. 1.12 The NSDP is therefore a practical, result-oriented implementing tool with the clear purpose of:
1.13 The NSDP synthesizes and prioritises the goals of CMDGs and NPRS and is intended to:
1.14 In Cambodia, greatest and quickest gains in poverty alleviation will be possible in rural areas where most of the poor live. The NSDP will, therefore, direct over 60% of resources to rural areas, with increased attention to productive activities like agriculture, rural development and to health and education to increase and enhance human capital and better contribute to overall development. 1.15 Assumptions contained in the NSDP in regard to the total financial outlay needed during the NSDP period, 2006-2010, and the likely resources available for this purpose, are based on macro-economic projections agreed upon with the IMF and the best possible manner of allocating the outlays to various sectors both for achieving socio-economic progress and for attaining the poverty reduction and CMDG targets. There are certain inherent and unforeseeable risks that may affect such assumptions as pointed out in Chapters IV, V and VII. 1.16 The NSDP recognizes that critical to its success is regular, timely and clear monitoring and evaluation of results being achieved as implementation progresses so that needed corrections could be made from time to time. It is therefore to be considered a dynamic, live, evolving and flexible document to be regularly monitored and evaluated against progress, and to be revised, adapted and adjusted to reflect new data and to realign actions on an annual basis. An annual review of progress, shortfalls and corrective actions will be produced for dissemination and consultations. 1.17 Against the abovementioned background, the following chapters provide details of NSDP:
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