CHAPTER III
IMPLEMENTING THE PRIORITIES SET IN THE
NATIONAL STRATEGIC DEVELOPMENT PLAN: 2006-2010

97.     The development vision of the Royal Government of Cambodia is to have a socially cohesive, educationally advanced and culturally vibrant Cambodia without poverty, illiteracy and disease.  Realizing this vision will require continued adherence to the values of social justice, human welfare and empowerment of the people and the formulation and implementation of policies to reduce poverty by promoting sustainable economic growth and better governance. The National Strategic Development Plan (NSDP) is a broad framework providing the road map and guidelines for taking the country from where it is at the end of 2005 to where it ought to be in 2010, using available resources in a cost-effective and result-oriented manner. To move ahead rapidly towards its overall vision, the Royal Government will focus attention on achieving the high priority, strategic and macro-goals and core targets (indicators) of the NSDP outlined in Table 4.

98.     The Royal Government of Cambodia (RGC) has decided that it should now focus on priority and strategic goals to be reached in the next five years and pursue key strategies and actions to achieve them, maximizing results by use of scarce resources in a selective, cogent and coherent manner. The NSDP: 2006-2010, is the single, overarching document containing RGC's priority goals and strategies to reduce poverty rapidly, and to achieve other CMDGs and socio-economic development goals for the benefit of all Cambodians. It operationalizes the Rectangular Strategy to achieve its intended goals. Also, a Public Investment Program for 2006-2008 has been prepared to support the implementation of the NSDP. Both of these documents were approved by the Royal Government at a Cabinet meeting on 27 January 2006. These two documents have been formulated to guide development cooperation partners to align and harmonize their efforts to improve aid-effectiveness and to secure a higher "net transfer of resources" than has been the case in the past. The Royal Government urges multilateral, international development cooperation partners, and NGOs to ensure that their country assistance strategies are aligned with the priorities outlined in the NSDP and their development programs and projects are aligned with the PIP.

99.      NSDP has been developed through wide ranging consultations focused on "results". The strategic goals, targets and actions outlined in the NSDP will be spelt out in more details through ongoing, or soon to be adopted, sector plans and through sub-national goals and plans. Such exercises, particularly at sub-national levels, will also serve to better disseminate NSDP. NSDP is a live document, capable of being adjusted and updated annually based on any new data that becomes available and the proposed annual monitoring and evaluation exercises.

TABLE 4: NSDP'S MACRO-GOALS AND CRITICAL INDICATORS
 

• CMDG goals and targets

100.  With peace and internal stability taking strong hold, improvements in social order, and robust economic growth in the past few years, Cambodia is at a critical threshold for faster future progress. The next ten years represent a decade of opportunity to realize ambitious CMDGs and uplift the poor and vulnerable. Over the next five years, in planning and implementation of development cooperation programs and projects special emphasis will be given to the following overarching aspects:

• Factor poverty reduction and gender concerns in all activities.

• Pursue reforms in all sectors, however painful they may be in the short-term.

• Foster and facilitate robust and equitable, and spatially and sectorally well-spread, macro-economic growth.

• Significantly increase "real investment" for growth in productive sectors and in human development.

• Target most needy and least served people and areas.

• Focus on well-tried, low cost activities with quick and high returns at the grassroots to have profound positive effect on the poverty situation.

• Optimize factor productivity.

• In rural areas in particular, rely as much as possible on human labor for construction, etc., to enhance household incomes.

• Stress institutional and human capacity building in all sectors.

101.   Key strategies and actions will be pursued to implement all elements of the Rectangular Strategy. The priorities to foster "Good Governance" are to:

• Reinforce and fast track a multi-pronged attack on corruption.

• Carry out specific legal and judicial reforms.

• Speed up and pursue Public Administration Reform.

• Add to and strengthen measures to make decentralization and de-concentration (D&D) more effective.

102.  To create an enabling environment for Good Governance the Royal government will:

• Vigilantly safeguard and continuously enhance the hard-earned peace, political stability and social order, so essential for any progress.

• Further broaden and deepen integration of Cambodia into the region and the world and attract investment to achieve pro-poor economic progress.

• Continue to deepen and strengthen partnership with civil society, private sector and external development partners.

103.  Steady and robust macro-economic growth, fiscal discipline, and vibrant financial sectors are vital to pursue progress. The Royal Government will adopt policies that will:

• Ensure steady GDP growth of 6% per year.

• Maintain external sector and exchange rate stability.

• Contain inflation at under 5%.

• Encourage private sector investment in priority activities in the rural sector.

• Improve budget performance both by increases in current income and targeted pro-poor expenditure.

• Ensure full transparency and accountability in all government transactions, including disposal or lease of public assets.

104.   In the Agriculture Sector, the focus will be on intensifying crop production to increase yields and rural incomes, diversification of crops, improving fisheries management, sustainable management of forestry through reforms, environment conservation and carrying out of land reforms, particularly to ensure land tenure to the poor. The key strategies and actions will include:

• Prepare a comprehensive Strategy for the Agriculture sector.  

• Increase public sector investments in the sector.

• Enhance affordable micro-finance availability.

• Encourage and facilitate private sector involvement in agriculture and agro-processing.

• Improve food security and nutrition.

• Facilitate increase in yields through expanding extension services.

• Try out innovative grass-roots oriented direct interventions to reduce poverty.

• Ensure sustainable access to the poor in the fisheries sector.

• Strengthen and enlarge animal production.

• Better manage the protected areas.

• Conserve forests through sustainable management practices.

• Formulate and implement a comprehensive land policy.

• Implement a program of land allocation to poor farmers.

• Continue removal of land mines and UXOs.

105.   To further advance Rural Development, along with D & D, accent will be on building rural infrastructure -- roads, markets, drinking water facilities, sanitation facilities, minor irrigation, school and health buildings, etc. -- much of it through devolution of funds through the commune councils. Efforts will continue to enhance access to rural credit and to bring down the prevalent high interest rates.

106.   Priorities in rehabilitation of physical infrastructure include: primary and secondary roads, railways, airports, ports, irrigation facilities, telecommunications, electricity generation and distribution networks, etc., with maximum attention being paid to attracting private sector to undertake work on a BOT basis wherever possible.

107.  Prospects of exploitation of offshore oil and gas resources are becoming bright. RGC will undertake special studies and put in place necessary infrastructure to optimize use of these valuable resources and revenues to flow from them.

108.  Attracting private sector, both domestic and foreign, is of utmost importance to accelerate the pace of economic development. RGC will earnestly and quickly remove the current major obstacles including delays in approvals and high "transaction costs" and improve the overall climate through various governance reforms. SMEs will receive special attention, including better and easier access to long and medium term finance.

109.  Opportunities for Trade with neighboring countries and others have improved but are not being adequately availed of to create demand for, and to export, goods and services using the competitive advantages of the country. Reforms to enhance private sector participation will address issues relating to trade as well.

110.  Education is a priority area in human development and capacity building. The Education Sector Strategic Plan (2006-2010) has already been developed. Apart from providing universal basic education, a CMDG, attention needs also to be paid to other levels including vocational training and higher education to start building a 'critical mass' of educated, skilled, talented, capable people to serve the development needs of the county in various spheres. Priorities for the next five years include:

• Ensure easy and equitable access to basic education, especially to the poor and those living in remote areas, including by increasing number of primary and lower secondary schools.

• Facilitate attendance of girls at lower secondary and higher levels, including by increasing the number of dormitories for girls.

• Reduce the financial burden on poor students by targeted scholarships.

• Enhance quality and efficiency of education services.

• Ensure better linkage of education and training to the short and long-term needs of the labor market and the society.

111.   Health Sector has witnessed significant progress but some of the health indices are still quite low. It is expected that some CMDG targets could be met while for others specific actions need to be pursued. Priorities include:

• Accelerate reforms in all areas.

• Expand availability of health care facilities by construction and/or rehabilitation of facilities -- hospitals, health centers, etc., in rural areas.

• Expand and strengthen sustainable methods for provision of help to the poor to access public health care system.

• Elicit, encourage and involve private sector in provision of health care, both in urban and rural areas.

• Pay special attention to curtail spread of HIV/AIDS, especially to families, by information and education efforts. 

112.   Gender equity issues permeate all activities, and are being addressed in all sectors, particularly in agriculture, health, education. The National Council for Women would continue to address the myriad aspects of gender mainstreaming in all aspects of governance and society.

113.   There are some imponderable factors or risks that may hinder NSDP progress, such as: expected resources not being available particularly from EDPs; global oil and gas prices continuing at the current excessive levels which will push inflation up; world and regional political, security and social situation deteriorating due to acts of terrorism; international trade barriers not being brought down at the required pace; outbreak of diseases like avian flu or other new ones; natural calamities like repeated floods and droughts. RGC is confident that it could withstand such challenges and adjust NSDP to accommodate realities as they emerge. RGC is optimistic that with its strong commitment and cooperation from all, NSDP could be successfully implemented to attain intended goals and reach the measurable targets, to reduce poverty and to enhance overall well being of all Cambodians.
 

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