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1.1 The Royal Government of Cambodia (RGC) has placed governance at the heart of its Rectangular Strategy for implementing the National Strategic Development Plan (NSDP). This recognises that effective institutional and legal frameworks, well-managed organisations and motivated professional staff are all essential if the public service is to play its part in promoting broad-based economic growth that will deliver real benefits to the Cambodian people. At the heart of this approach is an emphasis on capacity development, which manifests itself in all of the current reform programmes, as well as in the development of sector strategies. 1.2 A significant number of the programmes identified in the NSDP, and in associated reforms and sectoral strategies, will be funded by Official Development Assistance (ODA). Capacity within the Government for managing this ODA is therefore essential if: (a) these resources are to be effectively used; and (b) the resources are to have a sustainable impact on building the capacity of the country to mange its own affairs and to implement its development vision. In particular, this means ensuring that the ownership, alignment, harmonisation, results and mutual accountability objectives of the Paris Declaration on aid effectiveness are fully implemented. 1.3 The task of ensuring that ODA is delivered in a manner that is consistent with these objectives is assigned to the Cambodian Rehabilitation and Development Board (CRDB) at the Council for the Development of Cambodia (CDC). It is recognised that, without effective national capacity to manage ODA, recent advances in donor harmonisation and alignment may regress, with an associated risk that inappropriate modalities may fragment rather then build capacity for national development. The RGC therefore approved the Strategic Framework for Development Cooperation Management in January 2006, setting out the roles for ODA management across Government for mobilising resources and aligning them with national policies. 1.4 CRDB, as the Government focal point for ODA management, therefore intends to establish and implement a Capacity Development Strategy as part of the National Programme to implement the Strategic Framework. This Strategy, which although not intended as a approach for building aid management capacity across the whole of Government, will ensure progress at CRDB. By fulfilling its own mandate, CRDB will make a strong contribution to the broader national development effort. 1.5 Using participatory approaches, this Capacity Development Strategy provides an assessment of current aid management capacity at institutional, organisational and individual levels, mapping CRDB capacity against its mandated functions. It then adopts a methodology that considers reorganisation, staffing levels, incentives, performance management and training needs. To promote organisational effectiveness it also considers workflow and management issues, as well as risks and managing the change that will accompany capacity development activities. 1.6 The Strategy that is outlined here is the consolidated product of five diagnostic exercises conducted over the period June-October 2006. These include studies, reviews, interviews and consultations with staff. The Strategy is intended to guide activities over the period 2007-2010, with support for implementation being provided by RGC's own resources, as well as from the Multi-Donor Support Program and JICA. 1.7 It is necessary to note at the outset, however, that capacity development is often a complex and non-linear process. Similarly it must also be noted that many aspects of CRDB capacity remain relatively unexplored and further diagnostic work will be required. This means that this Strategy, and its sustainability, must be open to challenge, review and revision, in particular by the staff of CRDB but also by partners and other stakeholders who have an interest in promoting the effectiveness of aid. |