17.     The Royal Government recognizes that improving the business climate and creating an enabling environment for private sector development are key pre-requisites for fostering growth, creating jobs, reducing poverty and achieving sustainable economic development. To remove the critical bottlenecks impeding the development of the private sector as well as to provide inputs in the processes of administrative and regulatory reforms, a Government-Private Sector Forum was established in December 1999. It has been meeting once every six months. To further strengthen the key institutional mechanisms to support the implementation of the Rectangular Strategy (see Chart 1 on next page), at the last Government-Private Sector Forum held on 20 August 2004, Samdech Hun Sen, the Prime Minister announced the formation of a Steering Committee for Private Sector Development. This Committee is chaired by the Sr. Minister, Minister of Economy and Finance, with the Sr. Minister, Minister of Commerce as Deputy Chairman, and the Governor of the National Bank of Cambodia and the Ministers of MIME, MAFF, MPWT and MOT as Members, and the Secretary General of CDC, as its Secretary. The Steering Committee is responsible for carrying out the following tasks:

  1. Act as the "Etat major" of the Head of the Royal Government in leading, implementing, and monitoring the implementation of the Rectangular Strategy on Private Sector Development.

  2.  Propose and implement measures to improve investment climate.

  3. Propose and implement measures for trade facilitation.

  4. Propose and implement measures to promote Small and Medium Enterprises.

  5. Propose and implement other measures to promote private sector development.

18.     The Steering Committee is supported by the following three Sub-committees: (i) Sub-committee on Investment Climate and Private Participation in Infrastructure (PPI) chaired by Sr. Minister, Minister of Economy and Finance; (ii) Sub-committee on Trade Facilitation chaired by Sr. Minister, Minister of Commerce; and (iii) Sub-committee on SMEs chaired by Minister of Industry, Mines and Energy. The Steering Committee and its three Sub-committees will work closely with the development partners who want to assist Cambodia in developing the private sector, including the WB, ADB, IMF, UNDP, JICA, AUSAID, GTZ, AFD and others, based on a SWAP arrangement for private sector development.



The Royal Government's Rectangular Strategy

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