CDC - Strategy Paper Preparation Process



KINGDOM OF CAMBODIA Nation Religion King ïïïïïïï Social Development and Poverty Reduction Strategy Paper Preparation Process The 6^th Consultative Group Meeting Phnom Penh 20-21 June 2002
SOCIAL DEVELOPMENT AND PRSP PREPARATION PROCESS THE 6^TH CONSULTATIVE GROUP MEETING PHNOM PENH - 20-21 JUNE 2002

- Samdech Hun Sen, Prime Minister, - Excellencies, Ladies and Gentlemen, - Distinguished Representatives of Donors Communities. Since the last Consultative Group Meeting in Tokyo, June 2001 to the Consultative Group Meeting in Phnom Penh today, the Royal Government of Cambodia has made its effort in the implementation of social development agenda. The Royal Government has taken measures to strengthen the links between poverty reduction strategies, planning and budgetary process, and aid coordination and aid management arrangements to allow resources to be directed to priority areas and implementation capacity constraints addressed. ACHIEVEMENT AND PROGRESS 1- The Second Five Year Socio-Economic Development Plan (SEDP II) The Second Five Year Socioeconomic Development Plan was prepared through a broad consultation process with active participation from various stakeholders, including Government agencies, donor communities, Non-government organizations (NGOs) and incorporates the first Cambodia Participatory Assessment (PPA). The SEDP II presents quantitative targets and shows how the progress and impact of our policies will be monitored and evaluated. SEDP II also presents targets for various social development indicators during the plan period, including a target to reduce the poverty headcount index from 36% to 31% by the year 2005. The Royal Government on the 14 December 2001 approved the draft of second five-year socio-economic development plan 2001-2005. This document has submitted to the National Assembly and Senate for final endorsement, after that its will distribute to all stakeholders for implementation. 2- Public Investment Program (PIP) 2002-2004 To facilitate all government institutions to implement the policy and strategies mentioned in the SEDP II, the Ministry of Planning has prepared a 3 Years Rolling Public Investment Program (PIP), which was started since 1996. The PIP facilitates the allocation of capital investment directly to the sectoral priority mentioned in the SEDP II. For 2001, the total capital investment requested was U$ 609.4 million in which, the allocation for Economic Sector was U$ 265 million and Social Sector was U$ 344.4 million. Social Ministries used U$ 200 million or 58% of the budget allocation, excluding NGOs budget implementation of some projects supporting social affairs. The total requested capital investment for 2002-2004 was U$ 1,750 million in which, the allocation for Economic Sector was U$ 672 million or 38% of total capital investment and for Social Sector was U$ 1078 million or 62% of total capital investment. If we compare the total capital investment for 2001-2003 with the total capital investment for 2002-2004 for social sector, we noted that the allocation of capital investment for social sector has increased from 54% to 62% of the total capital investment 3- Social Expenditure The RGC has also taken measures to improve the expenditure framework and budget execution for the priority sectors, especially through rigorous implementation of the existing public procurement measures and improvement in financial procedures for the Priority Action- Program (PAP). Particular attention is given to gradual financial devolution to the grassroots level under PAP. The expenditure for Defense and Security decreased from 438 billion Riel to 403 billion Riel between 2000 and 2001. The expenditure for Social Administrative increased from 366.4 billion Riel to 455.5 billion Riel. 4- Education sector Investment in Education and Training is critical for achieving sustainable economic growth and improving productivity. The government is committed to expanding equitable access to basic education and improving its quality and strengthening the efficiency of use of resources allocated to education. The Government is also committed to mobilizing additional resources for education to increase spending in line with other countries in the region. The government’s education reform process that began in mid 1999 has resulted in the formulation of an education policy and strategic frameworks that establishes the overall sector development priorities, sub sectoral targets and a medium term education expenditure framework for the period 2001-2005. In late February 2001, the-education strategic plan (ESP) was reviewed and appraised by other stakeholders, following which a more detailed -education sector support program (ESSP) was prepared in late May 2001. In late June 2001, both the ESP and the ESSP were again reviewed and broadly endorsed by the government, donors and NGOs.. The key policy elements and implementation of these policy priorities will continue to be refined through a rolling Program guided by the Government-led Education Strategic Plan (ESP) and the Education Sector Support Program (ESSP) issued around mid 2001. For the school year 2001-2002, enrollment in Primary Education has increased from 2.3 million to 2.7 million and Secondary enrollment from 380.000 to 460.000. The repetition rate in the lower grade is being reduced. 5- Health sector During 2001, the Ministry of Health (MOH) reviewed and revised its formal health policy statement for 1999-2003. The purpose of the review was to provide a broad assessment of the sector’s performance and of the effectiveness of the policies and strategies that have result in a Health Sector Strategic Plan for 2003 - 2007. The level of financial resources available for funding priority health services will be established in the course of the preparation of the government’ Medium Term Expenditure Framework. The MOH has also made substantial progress in many critical areas of public health, including polio eradication, TB and Malaria control, HIV/AIDS prevention and in the introduction of modern birth spacing. Expansion of basic health services to the remote areas has been continuing. The number of health centers equipped with materials, drugs and staff has increased from 678 in 2000 to 768 in 2001. 6- Gender Women do not enjoy the same opportunities as men in any society. Women in Cambodia suffer from poor availability of reproductive health services, especially in rural areas, where they are most needed. Even, the maternal mortality rate (473/100,000 live births), infant mortality rate (89/1,000 live births), and under five year mortality rate (115/1,000 live births) have improved as compared to the situation of 1996, but they still very high compared to the region. In addition, sexual health services related to the spread of HIV are needed to protect women and children. Among literate persons 25 years and older, 51 percent of males but 68 percent of females have not completed primary school. In the current younger generation, such gender inequality appears to be continuing: of those aged 5-24 years in the formal school system, 19 % of males, but only 13 % of females are enrolled the secondary school level. Gender equality is integral to the development process and cannot be separated from other population issues. The key issues is how to improve gender equity across a range of sector in order to given women the skills and status need to participate in contemporary society on an equal footing with men. 7- Progress towards PRSP preparation The preparation of full PRSP under the support of IDF Grant has transferred from Ministry of Economy and Finance( MOEF) to-the Ministry of Planning (MOP). According to the work plan mentioned in the Interim Poverty Reduction Strategy Paper (I-PRSP), the full PRSP must be finalized by October 2001. A PRSP status report has been submitted to the Board of IMF and WB since December 26, 2001, to inform the Board about the delay of its preparation. The PRSP preparation has been prolonged due to the suggestion that (i) PRSP should start after the completion of SEDP II, which has been scheduled to occur in December 2001, (ii) the Council for Social Development (CSD) and the General Secretariat of CSD (GSCSD) were not able to be fully operational due the lack of technical assistance, (iii) IDF Grant had been revised many time during the course of it implementation and (iv) poor coordination and cooperation from government agencies in the PRSP processes. Three Core staffs and one Under Secretary of State from MoP and one core staff from MoEF have been assigned to involve in the processes of PRSP preparation. The work plan has been drafted and we planned to finalize PRSP in October 2002. The meeting of General Secretariat of Council for Social Development and a Stakeholder workshop have been organized to discuss the status report and the outline of PRSP. PRSP would have: • A description of the participatory process: an account of the impact of the consultation on the design of the strategy, and a discussion of the role of civil society in future monitoring and implementation. • Comprehensive poverty diagnostics: A PRSP would begin by description who the poor are and where they live. PRSP could analyze the macro-economic, social structural and institutional constraints to faster growth and poverty reduction. • Clearly presented and costed priorities for macro-economic, structural and social policies that together comprise a comprehensive strategy for achieving poverty reducing outcomes. • Appropriate targets, indicators and systems for monitoring and evaluating progress; A PRSP will define medium and long term goals for poverty reduction outcomes (Monetary and non-monetary) establish indicators of progress and set annual and medium term targets. However, the key areas where additional work is needed to build on SEDPII to develop the PRSP include (i) improving monitoring and evaluation mechanisms; (ii) developing more comprehensive performance indicators and targets; (iii) improving the costing of priority public policies and programs and their linkage to the budget; and (iv) integrating the macroeconomic framework and the overall poverty reduction strategy. Many stakeholders are willing to actively participate in the PRSP formulation. UNFPA will assist one chapter on population Development strategy, WFP on poverty Map, etc... 8- Population and Development strategy: The fundamental development challenge is to reduce poverty and improve the quality of life of the vast majority of a growing number of Cambodian (2.5 % per annum). UNFPA is providing technical and financial support to the Ministry of Planning in the formulation of Population and Development Strategy. This is the starting point to inform policy makers, planners, Administrators and other stakeholders to let them know about the participatory process and the participation from all concerned institutions in the elaboration of a comprehensive population policy. 9- Poverty Monitoring and Analysis System (PMAS) In parallel with the support from ADB for the preparation of SEDP II, WB and IMF through IDF Grant are supporting for the formulation of PRSP. SIDA and UNDP support the establishment of a Poverty Monitoring and Analysis System. UNDP and SIDA have provided technical and financial support for capacity development for poverty monitoring and analysis, which will be critical in our poverty reduction efforts. The work plan for the implementation of the project has been drafted. The Poverty Monitoring and Analysis Technical Unit (PMATU) has recruited 10 professional staff which will be responsible (i) for preparing poverty profiles; (ii) analyzing poverty trends, dynamics, and their underlying reasons; (iii) monitoring the specific measurable objectives of the PRSP and the poverty component of SEDP II; (iv) monitoring budget allocations by poverty priority action and the benefit incidence of social expenditures; and (v) evaluating the ex-ante and ex-post impact of selected program policies and programs on poverty. Samdech, Excellencies, Distinguished Guests, Ladies and Gentlemen. As mentioned in the work plan, the full PRSP will be finalized by October 2002. For the preparation of a comprehensive and applicable PRSP we need (I) financial and technical support (ii) on the job-training and oversea training of the core staffs whose their capacity still very limited. However, PRSP will depend on the mobilization and coordination efforts of all of us - Government, UN agencies, NGOs, business communities and civil society engaged in development. The challenge to reduce and ultimately eliminate poverty does not merely belong to the Royal government but to all of us. Thank you!