RGC'S STRATEGIC FRAMEWORK
FOR
DEVELOPMENT COOPERATION MANAGEMENT


I.    INTRODUCTION

1.      This document reaffirms Royal Government of Cambodia's ownership and leadership of the development cooperation management processes. It outlines the strategic policy framework on institutional and operational issues related to development cooperation management. It presents information on:

  1. the role and responsibilities of the RGC’s focal point for resource mobilization and aid coordination functions within the Royal Government;

  2. the current situation and recent initiatives of the Royal Government and the international community to strengthen development cooperation;

  3. the objective and basic principles that shall guide the management of development cooperation programs; and

  4. outlines a national program to implement RGC's development cooperation management strategy.

2.     The Royal Government of Cambodia (RGC) recognizes that effective and efficient utilization of official development assistance (ODA) is critical to achieve Rectangular Strategy's goals, and the priorities of the National Strategic Development Plan to reduce poverty, attain Cambodia's Millennium Development Goals (CMDGs), and to improve aid effectiveness to maximize its benefit for the people of Cambodia. The enhancement of aid effectiveness to reduce poverty and to maximize its benefits for the people of Cambodia remains a very high priority of the RGC.

3.     The Royal Government is aware of the many challenges it faces to achieve its development goals. Although significant progress has been made, much remains to be done to improve aid effectiveness by both the ministries and agencies implementing the development programs and projects; as well as our development partners who need to harmonize their practices and procedures to minimize burden on the limited capacities of implementing ministries and agencies, and ensure a greater transparency in the utilization of resources that are reported to have been disbursed to Cambodia. The RGC is gratified by the support of its external development partners (bilateral and multilateral agencies and NGOs) and hopes that they will continue to provide their support to enable Cambodia to achieve its goal of reducing poverty among its people. On average, over the last three years, around US$ 500 million per year have been reported by the external development partners to have been disbursed to Cambodia. In recent years, however, there has been a significant shift in the composition of this assistance in terms of loans and grants. The loans component of official development assistance (ODA) has increased from 16.8 percent of total ODA in 1999 to 34.5 percent of total ODA in 2002, 30.9 percent in 2003, and 34.3 percent in 2004. The increase in the loans portion of ODA has implications for future national budgets because of the resulting increase in the size of the national debt and related debt service charges.


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