COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC)


1. INTRODUCTION

1. The years 2001 and 2002 represent a period of consolidation in the implementation of Cambodia’s policy reforms and social development agenda. It has been 3½ years since the 2^nd Legislature of the Royal Government of Cambodia (RGC) was elected into office in November 1998. Since then Cambodia has made considerable progress. With the dismantling of the political and military organizations of the Khmer Rouge and their integration into the mainstream of the society in 1999, the Royal Government has achieved tangible results by implementing the "Triangle Strategy" put forward by Prime Minister Samdech HUN SEN. Cambodia wants to reclaim its destiny and become a genuine partner in the region and global affairs and has made considerable efforts to become a truly free nation, free from poverty above all else. The favorable political environment has also created a "Diamond Opportunity" for development, with great hopes for a bright and prosperous future. The alleviation of poverty among our population through economic progress and social development is the highest priority of the Royal Government. The 2^nd Socio-Economic Development Plan (2001-2005) and the Interim Poverty Reduction Strategy (IPRS) outline the strategies and policies for achieving these goals. 2. The first side of the “Triangle Strategy” put forward by the Prime Minister Samdech HUN SEN focuses on building peace, restoring stability and maintaining security for the nation and the people. This has been accomplished through the commitment of the Royal Government, the sustained work and support of our people, and generous assistance from our development partners. For the first time in its recent history, Cambodia stands at the threshold of making a transition to a period of sustainable economic growth that will enable it to achieve durable poverty reduction. 3. Peace, stability and security in the entire country and for all of our people are the most important pre-requisite conditions for sustainable development. The Royal Government is, and will remain, strongly committed to strengthening political stability, security and social order throughout the country, to build a safe and stable environment for our people and to foster business confidence. 4. The integration of Cambodia into the region and normalization of relationships with the international community formed the second side of our strategic triangle. Soon after the formation of the new Government, Cambodia succeeded in regaining its seat at the United Nations and became the 10th member of the Association of South East Asian Nations (ASEAN). We have normalized our relationships with international financial institutions and other international organizations and our efforts to join the World Trade Organization are well advanced. 5. Promoting economic and social development is the third side of the Government's strategic triangle and our largest challenge. Notwithstanding the important strides that we have made in recent years, much remains to be done. The Government recognizes that achieving sustainable socio-economic development depends not only on the effective implementation of our ambitious reform programs, but also on the pace of their implementation, to move the country to a higher economic growth plateau that will enable us to tackle the causes of poverty. 6. To ensure sustainability of the structural adjustment reforms and Cambodia's economic development, and to share the “win-win” situation in ASEAN, the Royal Government will take all the steps necessary to further accelerate the momentum of the past 3½ years. We have set three conditions to achieve our development goals. First, the whole Kingdom should work hard with discipline and respect for law and order. Second, the whole Kingdom should work assiduously and avoid a “stop-and-go” situation. Third, all Government ministries and agencies should uphold the rule of law and strictly follow the principles of Good Governance. Reforms are a “life-or-death issue” for Cambodia. We are confident that if the above measures are successfully implemented, we will be able to catch up with the pace of development of other countries in the region even though we have lost considerable time. 7. As the RGC stated in Tokyo in June 2001, the long-term Vision of the Government is to have a socially cohesive, educationally advanced, and culturally vibrant Cambodia without poverty, illiteracy, and disease, which will allow each person to be the best that it is in them to be. Realizing the Vision will require continued adherence to the principles of the market economy, the values of democracy and social justice, human welfare, and the formulation and implementation of policies to reduce poverty by strengthening good governance and promoting sustainable economic growth and social development. 8. This paper presents information on the socio-economic development priorities of Cambodia for the next three years (2002-2004). It identifies the on-going and specific new initiatives that the Government plans to implement to achieve its development priorities. It also presents information on the magnitude of external development assistance – to complement our own domestic resources – that is required to support the implementation of on-going projects and to begin the implementation of new initiatives. 9. The Paper is the result of a long process of inter-ministerial consultations and coordination from January to April 2002. Its main topics and the Executive Summary were reviewed and adopted by the Council of Ministers on 03 May 2002. Before its adoption, there was extensive participation of the International Donor Community, the Private Sector, and NGOs/civil society, that included a Consultation Meeting with External Partners held at the Council for the Development of Cambodia on 25 April 2002. In addition to the analyses presented in this document, separate discussion papers on various issues were prepared. These papers outline the RGC’s priorities and the resources that it will commit, both in the short and medium term, to achieve its long-term vision for the development of Cambodia. These obligations will be met, the reform pre-requisites vigorously implemented to put Cambodia in a position to meet successfully the challenges of its future. 10. The paper begins by highlighting what has been achieved since the last CG meeting in Tokyo in June 2001. It provides an update on Government’s policy performance, macroeconomic performance, monetary and fiscal performance, and sectoral developments. The next section presents the highlights of the development challenges of Cambodia. Section four, outlines Cambodia’s development priorities in all spheres: macroeconomic and fiscal management, social sectors, economic sectors, infrastructure, and other cross-sectoral priorities. Section five presents Government’s financial requirements and ODA resource mobilization targets for the implementation of the Government’s Public Investment Program for 2002-2004, and finally the conclusions. \| Content \| Back \| Top \| Next \|