CDC - Statement of the Presidency, on behalf of the European Union,

Statement of the Presidency, on behalf of the European Union, at the Consultative Group Meeting on Cambodia June 19— 21, 2002, in Phnom Penh

The European Union welcomes this opportunity to review the progress made by the Kingdom of Cambodia towards the goals set at the last Meeting of the Consultative Group in Tokyo. The European Union welcomes the positive steps taken by the Royal Government of Cambodia during the last year. We congratulate the Kingdom of Cambodia on overall political stability, continued macroeconomic growth, the pro-poor trade initiative, and progress made against the Priority Action Points agreed during the 2001 Consultative Group Meeting, including improved fiscal performance, the launch of the full scale demobilization programme, the adoption of the land law and increased budget allocations to the key social sectors. We also welcome the early ratification by Cambodia of the Rome Statute to establish the International Criminal Court. We also underline that the principle of good governance for poverty reduction calls on the Government of Cambodia to take further steps to promote the overall economic environment, which is conducive for domestic and foreign investments, to invest in human resources, especially in education and health and in particular, to enhance the empowerment of the poor. However, the European Union looks forward to a discussion of constraints affecting the lack of progress on the 2001 Priority Action Points covering forest concession management, civil service reform, legal and judicial reform and corruption. The European Union commends the satisfactory technical and logistical preparation as well as the well organised execution of the first Commune Council Elections held in the Kingdom of Cambodia on February 3rd, 2002. The European Union supports the conclusion of the EU Election Observation Mission that the elections mark progress for accelerating democratic governance in the Kingdom of Cambodia. The important process towards decentralisation and deconcentration can be pursued with new momentum. On the other hand, several incidents that tarnished the pre-electoral period, have raised serious concerns. Therefore, the European Union recommends that the RGC use all available means to ensure that the national elections, to be held in July 2003, will not be overshadowed by acts of intimidation and violence. We encourage the RGC to proceed with the revision of the electoral law, the further reform of the National Election Committee to ensure its political neutrality and impartiality and to take every possible step to ensure that these elections will be free and fair and take place in a secure and peaceful environment. In this regard equal access of the contending parties to the state media is a crucial aspect of a transparent voting process and a credible result. The overall human rights situation has changed little since last year. Impunity contributes to the persistence of human rights violations. A particular issue of grave concern is the trafficking of women and children. We welcome the recent step to set up the Department for Juvenile Protection and Anti Human Trafficking and encourage the RGC to devote more attention to the increasing problem of human trafficking. The European Union commends the RGC on the adoption of the Law on the Establishment of Extraordinary Chambers in the Courts of Cambodia for Prosecution of Crimes committed during the Period of Democratic Kampuchea. We regret that negotiations with the United Nations have come to an unexpected standstill. Nevertheless, we express our hope that an agreement with the United Nations can be reached in due course and Khmer Rouge leaders accused of the most serious violations of human rights will be tried in accordance with international standards of justice, fairness and due process of law. The European Union would also like to stress the importance that the Tribunal bears, not only for the past but also for the future, as it will play a vital role in restoring the people’s confidence in the rule of law and accountability of the regime. A strong civil society in a stable legal, social and economic environment based on the rule of law and the development of transparent systems of governance is a vital prerequisite for the development of the Kingdom of Cambodia and to attract foreign direct investment. The overall reform agenda launched by the RGC is based on this conception. It is therefore unfortunate that little progress has been made in the areas of legal and judicial reform. The presentation of the long awaited Strategy for Reform has again been delayed. We urge the RGC to complete the Strategy Paper and promised Action Plan without further delay. Concrete progress in this area will be essential to ensure the rule of law, to overcome impunity, to safeguard human rights and to provide a firm basis for sustainable economic development. The judicial system, including human resources, needs to be strengthened. The European Union notes with disappointment that the envisaged National Anti-Corruption Plan has not been adopted yet. We urge the RGC to adopt, implement and enforce an Anti-Corruption Law. In addition, firm implementation of existing laws would help tackle most forms of corruption, which is a major constraint on the development of the Kingdom of Cambodia. The implementation of the Public Procurement Sub-Decree in the four Priority Action Programme Ministries is a progress to be expanded to the entire public administration. The European Union encourages the RGC to accelerate all possible measures that will streamline the legal framework in order to ensure a smooth accession to the World Trade Organisation and take full advantage of this membership. Public administrative reform is of crucial importance in the current development stage of the Kingdom of Cambodia. It should be given more momentum. The European Union welcomes the RGC’s efforts to establish a new classification and remuneration regime, but encourages the RGC to accelerate its plans to increase remuneration. The establishment of Priority Mission Groups is an important but temporary measure to ensure reforms take place. We are encouraged by this progress and we hope that the RGC will accelerate the finalisation and implementation of the civil service reform. Transparency and accountability are key factors for our co-operation with Cambodia. Therefore the EU welcomes the progress achieved in the setting-up of the National Audit Authority, which is now operative. External audits carried out in a proper and transparent manner will represent a new confidence building measure. The Governance Action Plan, the Socio-Economic Development Plan and the Poverty Reduction Strategy process are indications of the RGC’s increased focus on poverty reduction. They should facilitate a more coherent joint Government-Donor effort in meeting this central development challenge and improved monitoring of progress. In the meantime the European Union welcomes the RGC’s decision to commit itself to a new set of performance indicators. These benchmarks will help the RGC prioritise its policy actions and donor support. Meeting these benchmarks will enhance the international stature of Cambodia and support her role as chair of ASEAN from July 2002. The European Union notes that budget allocations for the key social sectors have increased, but real disbursements have to follow in a timely and transparent manner. Moreover, a more equitable distribution of income and a more just access to land are fundamental to assure political stability. The European Union salutes the successful drafting of the Community Forestry Sub-Decree as a model for participatory policy design process from which local communities, including the rural poor, will benefit. However, the European Union regrets that the draft of the Forestry Law has not been finalised yet and that there is still evidence of illegal logging activities. It urges the RGC to proceed with the adoption and implementation of all necessary legal instruments, the cancellation of forest concessions which have not produced an adequate sustainable forest management plan, and to strongly support the Forest Crime Monitoring Unit and the independent monitor in their important tasks. The European Union continues to be strongly committed to the Kingdom of Cambodia, and stands ready to continue to support Cambodia in her development efforts.