CONSULTATIVE GROUP MEETING, Phnom Penh 19—21 June 2002

Discussion Points for the Partnerships/Aid Coordination Session

1)    The new global partnership paradigm

2)    Basic values inherent in ODA

3)    Some global lessons learnt in partnerships

4)    Contextual characteristics relevant to Development Partnership in Cambodia

5)    Some proposals for enhancement of Partnerships in Cambodia

1.    The need for a new development paradigm:

• A shift in global development paradigm due to a widening gap between the rich and the poor
• Tied aid, conditionality, externally imposed solutions versus sustainable human development
• Inadequate attention to poverty reduction, national leadership, ownership and accountability
• Recognition of the need for the state, NGO’s and the private sector to work together in a globalised world (3 level consensus)

2.     Revisiting the values that shape international co-operation: (Art. 1 UN Charter)

• To engender trust, genuine dialogue and respect among equal partners through shared values
• To secure a sound approach to ownership, transparency and mutual accountability
• To avoid disruption to national potential and patterns of development
• To see development as an inalienable human right:

• The right to determine one’s own destiny
• The right to be free from the scourge of poverty

3.     Global lessons learnt in partnership development:

• Greater attention to country-specific contexts, priorities, institutions and social capital (also mentioned in our Development implications in HI V/AIDS)
• A shared vision and trust with flexibility in implementation arrangements essential
• Place poverty, fair trade and LDC debt on top of the agenda
• Aim for a step by step approach to establishing full partnership arrangements

• Enhance policy coherence among partners
• Adopt a longer-term, ‘hands off approach to programme implementation
• Pool funds for support to national programmes
• Harmonize procedures
• Provide budget support

• Enhance Donor internal capacity for success in policy dialogue
• National leadership in policy development essential
• Use local capacity and services rather than external expertise
• Reduce micro-projects, salary incentives and PMU’s that cause capacity depletion (PMG — donor discipline)
• Encourage national management, oversight and reporting on programmes (may be time to involve National Audit Authority and Parliament for oversight functions)

4.     Contextual characteristics relevant to Development in Cambodia

• Development partnership paradigm in Cambodia gradually surfaced since 1999
• Cambodia is one of the most heavily aid-dependent countries in the world
• State capacity particularly weak in the early 90’s due to 3 decades of conflict
• Large number of donors and NGO’s place heavy burden on RGC officials
• Socio-economic development heavily influenced by donors, NGO’s and private sector
• Conditions currently amenable to dynamic partnership arrangements
• A number of successful resource pooling arrangements in existence since early 90’s
• Co-ordination arrangements already in place particularly complex
• National ownership and leadership of ODA programmes in ascendance
• Wide ranging state reforms in progress despite financial and capacity odds

5.     Proposals for enhancement of partnerships in Cambodia

• Policy Co-ordination:

• Enhance CG mechanism through a more formalised process of joint donor meetings with the Government (SEILA Forum; CMAA should be another model) Risk: Confusion of roles and responsibilities.
• Identify key donor partners in policy dialogue with National Lead Partners for specific areas of co-operation to reduce burden on Government
• Take step-by-step approach to policy and strategy coherence (learning by doing, rather than imposing policies)
• Avoid using ‘policy coherence’ as ‘conditionality’ for the implementation of development co-operation programmes

• Pooling of Resources:

• The lead partners involved in policy dialogue devise specific resource pooling arrangements
• Establish joint, unified, national rules and procedures governing the use of pooled funds
• If necessary, identify appropriate multi-lateral agency with recognized substantive capacity in the area concerned to provide development services for pooling arrangement
• Reporting requirements on the Government should follow national procedures when such procedures meet international standards. For an interim period, donor specific requirements should be satisfied by the multi-lateral agency involved.
• Apply national budget management and procurement procedures included in the GAP
• Close co-operation with the National Audit Authority must be included in all pooling arrangements (as well as Parliament oversight).
• Pooling of expertise should be attempted within the context of good policy coherence, and then under the substantive leadership (or Development Co-operation Plan) of a single Lead Partner.
• Remove ‘project and/or fiscal management’ from the donor side
• Have clear a exit strategy for pooled resources programmes in favour of direct budget support

• Harmonization of Donor Procedures (Under the CG mechanism):

• Establish a Development Co-operation Partnership Code of Conduct in Cambodia (agreement on basic principles) with emphasis on national leadership, ownership and mutual accountability
• Identify key donor partner(s) and National Lead Agencies in specific areas of co-operation
• Establish a donor Working Group or task force to prepare a Donor Code of Conduct (including Harmonization of Procedures)
• Establish a joint RGC/Donor Working Group or task force to develop baseline budgeting, procurement and reporting procedures to be applied to pooled resources
• Use international best practices

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