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A.
Comments on the Draft Government Paper
The
Government has prepared a 9-page paper to present to the CG meeting on 19
June. The paper mainly focuses on what is to be done with very little
guidance on the “how”, except for the budgetary needs which are also
difficult to justify in the absence of a clear way forward. It also builds
on the role of the SEILA programme as a pilot and first step to
decentralization, describes the role of the National Committee for Support
to Commune Councils (NCSC), and its sub-committees on Powers and
Functions; Planning and Development; Fiscal decentralisation; Boundaries
and Urbanisation; and Training and Capacity Building.
On
the immediate challenges it identifies the need to further develop the
national legislative, policy and regulatory framework, capacity
development at all levels including for the newly elected commune
councils, and financial resources including commune revenues (arrangements
for the national commune development fund and other commune revenues),
commune boundaries and jurisdictions, the special situation of urban
areas, and mechanisms for increasing the participation of other
stakeholders particularly NGOs, civil society and the private sector.
The
paper briefly describes the present support, acknowledging UNDP, ADB, GTZ
and Konrad Adenauer and the Seila partners. It then presents targets for
the next five years but with no action plan how to get there. This should
be the starting point in our discussions as it could provide a good basis
for NCSC to prepare a program for implementation over the next five years.
The
paper concludes with a presentation of the basic financial requirements,
for the commune development fund, commune council offices and equipment,
capacity building and program support at both provincial and national
levels. A total of US$109 million is required out of which the RGC is
committed or will mobilize from own sources US$36.5. The balance, US$72.5
is expected to be mobilized from external sources. Out of this amount
US$30.5 million has already been mobilized (or is under mobilization) thus
leaving a funding gap of US$42 million, being for the commune fund
(US$14m), commune premises/equipment (US$13m), capacity building (US$7m)
and program support (national — US$3.5m and provincial = US$4.5m).
B.
Issues to guide the discussions
Policy
Framework
-
Urgent need for a long-term vision based on a nationally owned/led
decentralization policy framework with
an action plan to realize the target that commune
councils must be strong and autonomous institutions of local governance,
with substantial capacity, resources and experience
-
Legal
framework: decentralization in Cambodia stands on fragile ground: no
constitutional provision (the
constitution requires promulgation of an organic law to govern lower
tiers), no comprehensive legal system etc. The RGC target for the next
five years is that there must
be a clear understanding of the proper responsibilities and resources of each level of government, including
the role of the provinces and districts in the constitutional system.
-
Institutional framework: need to clarify the status roles and
responsibilities of each of the actors involved especially also
the consultative and coordination arrangements at both the national and
provincial levels. The relevant RGC target is that the national
legislative and regulatory framework for decentralization must have been
identified and improved, and support systems put in place.
-
Devolution
and fiscal decentralization at sub-national level: provincial/municipal
levels with accountable systems of management
and organizations, and deconcentration. The RGC targets in support of this
include: (a) all commune councils boundaries should have been reviewed
in order to identify the most effective gable and sustainable
jurisdictions for commune councils: (b) commune councils must be raising
significant local revenues and have access to other financial resources:
and (c) commune council must receive a greater share of the national
revenue for local development. In this regard the RGC plans to
allocate a percentage of domestic revenue to the Commune Fund, rising from
the current 1% in 2002, to 2% in 2003, 2.4% in 2004 and 2.8% in 2005.
National
ownership
-
Need
to put in place at all levels, mechanisms that promote participatory
approaches to build ownership and legitimacy.
The RGC targets include that: (a) commune councils must have
established a network of close cooperation, working relationships, and
joint ventures with each other, and with other governmental and
non-governmental agencies, civil society and private enterprise; and (b)
provincial and national associations of commune councils should have been
established.
-
Urbanization
and urban governance. Most of the decentralization efforts on going are
built on the Seila pilot/model, which
was rural, focused and misses out on the urban special situations. There
is need to address the special needs of the urban councils (sangkats).
This is in support of the target that there must be a national policy
on urban areas and urbanization, including the constitutional Status and
governance of the national capital Phnom Penh and other municipalities.
Capacity
development
-
Long
term comprehensive capacity building strategy as opposed to existing ad
hoc arrangement (including the provinces/CCs
outside the Seila support system). The RGC targets include that: (a)
commune councils and their citizens must have developed a common culture
of local democracy, that establishes their appropriate roles, powers and
limitations: (b) commune councils must have defined their own needs and
priorities for socio-economic development; (c) commune councils must have
ensured the delivery of basic services and infrastructure by the best
available provider, including agency functions;
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