CHAPTER I

INTRODUCTION

1.01     The National Strategic Development Plan (NSDP) for 2006-2010, endorsed by the Council of Ministers on 27 January 2006 and receiving the formal approval of His Majesty the King of Cambodia on 23 June 2006, is considered the single, overarching document that outlines 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 operationalises the Rectangular Strategy to achieve intended goals.

1.02     The NSDP, as a live instrument, is to be updated and revised as development progresses as monitored through annual assessments carried out every year. The present document contains the Annual Progress Report on the implementation of NSDP during 2006. To be referred to as NSDP-APR, 2006, this document updates all data contained in the NSDP for the base year 2005 and as forecast for the five years 2006-2010. It outlines and analyses progress and projections both in quantitative and qualitative terms.

1.03     The main objectives of the NSDP-APR are to:

• Assess, review and articulate the progress made or shortfalls encountered in implementing the NSDP in all its aspects during 2006, along with analysis of causes for success or failure.

• Inform policy makers, EDPs and the Cambodian public in general about such progress or lack thereof.

• Serve as a “State of the Nation” annual record to provide a ‘snapshot’ of Cambodia, which could be of use as a reference and resource document to a wide range of stakeholders interested in Cambodia including for investors interested in investment in Cambodia.

1.04     The NSDP-APR provides, at appropriate places, the following:

• Progress in implementing key strategies and actions in various sectors outlined in NSDP, in particular preparation of sector plans at the national and sub-national levels, where they do not exist at present.

• Assessment of progress made in achieving selected core indicators of NSDP (Table 3.2 of NSDP).

• The degree of alignment of pledges and disbursements by the external development partners with sectoral priorities targeted in the NSDP (Table 5.2 of NSDP).

• Recommendations and proposed adjustments to the NSDP.

1.05     The important features of NSDP-APR are:

• The document covers a whole spectrum of matters – political, governance, economic and social – with special emphasis on poverty alleviation and achievement of CMDGs.

• The APR like the NSDP is RGC-owned document. It is a very important document and will be RGC’s position paper for the Cambodia Development Cooperation Forum (CDCF) which will take the place of CG from 2007.

• Since it is only an update of the NSDP progress, it does not repeat or restate, unless there is a specific necessity to do so, all the main objectives, principles, strategies, programmes and plans already outlined and discussed in the NSDP

• The document is organised along the lines of Rectangular Strategy as was the NSDP.

• It presents data in various tables, which will show figures anticipated in NSDP and revisions if any.

1.06     The NSDP-APR is based upon the following:

• Inputs from various ministries and agencies.

• Any new findings from studies undertaken both by RGC ministries and agencies, research organizations like CDRI, and civil society organizations like NGOs.

• New data emerging from various periodic surveys concluded in 2006.

• Close consultations with ministries and agencies and EDPs.

1.07     The most important changes since preparation of the NSDP have been:

• A major step in enhancing stability in governance through a landmark constitutional amendment enabling legislative work to be pursued through a absolute majority instead of needing 2/3rd votes which had acted as big stumbling block hitherto.

• The second commune elections involving all the 1,621 communes in the country, and with around 68% of the electorate casting their votes, were concluded in early April 2007 in a peaceful, free and fair manner, once again demonstrating that democracy is proactively promoted by Cambodians and has taken strong roots in the country becoming part of its political and social fabric.

• Economic growth in terms of GDP at constant prices almost doubled, surging from an earlier estimated 7% to 13.4 % for 2005, contributed by an increase in agriculture, garment industry, construction, and tourism in particular by a phenomenal increase in figures for agricultural production.

• Very high growth in agriculture (crops) of 28.0¹in 2005 against 8.0% assumed in NSDP, facilitated both by returns from investments in irrigation and very favourable weather conditions.

• Tourism arrivals were 1.7 million in 2006, up from 1.3 million in 2005.

• Over all and widespread improvements in other sectors as well though because of the commanding predominance of growth in agriculture, the share of other sectors in GDP declined compared to previous estimates.

• Because of these changes, adjustments have been made for all other macro-economic data for 2006 through to 2010, including for fiscal projections.

• Final results emerging from the 2005 CDHS have re-affirmed that the proactive and targeted policies, plans and programmes undertaken by RGC have yielded very positive results in the health sector. Of particular note is the current HIV prevalence rate based on CDHS 2005 is 0.6% for adults aged 15-49, about 70% lower than the previous estimates of 1.9%.

• A well-thought out and flexible Monitoring Framework has been set in place for closely and regularly monitoring progress under NSDP.

• The prospects of successful exploitation and utilisation of gas and natural resources have brightened future prospects significantly.

• NSDP has been disseminated at various sub-regional levels.

1.08     Initial estimates, to be refined in the first half of 2007 as full data emerge from all sectors, indicate a robust growth for 2006 as well. GDP is expected to have grown at a very robust 10.8% over and above the enormous surge in 2005. Per capita income increased from 1.86 million Riels in 2005 to 2.10 million Riels in 2006 with inflation kept well under control. Such per capita increase reflects also the increasing spread of benefits to hitherto unreached areas and people.

1.09     The Royal Government is firmly committed to the principles outlined in its Rectangular Strategy and the NSDP in pursuing growth for all Cambodians through economic growth and poverty reduction efforts. The RGC’s objective and firm resolve are to accelerate and enhance efforts to pro-actively foster, promote and vigorously pursue policies and actions that would result in ever increasing participation of all sections of people, in quantitative and qualitative terms, in national governance and nation building, both as contributors and consumers. In this regard, objectives, goals and targets of the NSDP would be pursued with utmost commitment.

1.10     The overall aspect of the results in the NSDP implementation in 2006 is shown in table 1.1 below:

Table 1.1: Key Indicators of NSDP Implementation for 2006

Notes: The figures marked with asterisk (*) in 2005 are the estimates in NSDP and the otherwise shown figures in 2005 are the actual data.

1.10.    The following sections provide more detailed information on the progress in 2006 and changed forescasts for the future, both in figures and quality.

Chapter II:       Progress in 2006 and Future Strategies and Prospects
Chapter III:      Priority Goals and Targets; Monitoring and Evaluation
Chapter IV:      Costs, Resources and Programming
Chapter V:       Conclusion

Annexes: 

I:1        Cambodia: Key Macro-Economic Indicators
I:2        Cambodia: Projected Investments, 2006-2010
I:3        Cambodia: Estimated Budget Current Expenditure Allocations by Sectors and Priority Ministries
I:4        PIP, 2006-2008: Table I: Summary by Sectors
I:5        PIP, 2007-2009: Table I: Summary by Sectors
I:6        PIP, 2008-2010: Table I: Summary by Sectors
II           NSDP Monitoring Framework
III          Abbreviations and Acronyms

| Content | Back | Top | Next |

Home | 1^st CDCF Meeting | 8^th CG Meeting | Partnership and Harmonization TWG | GDCC | Policy Documents Guidelines | Donor Dev. Coop. Pgm. | NGO