Promoting Development Effectiveness in Cambodia

 

This section of the CRDB website provides a brief overview of the Royal Government's development effectiveness and aid management policies as well as the implementation mechanisms employed. It is intended to provide an introduction to these topics to newly-arrived development partners and other interested individuals. The page is structured around a number of basic questions that can be easily navigated according to your interest:

  1. What is the national development framework?
  2. What is the role of development partners in supporting the NSDP?
  3. What is the policy on managing development assistance?
  4. Are these policies informed by global initiatives such as the Paris Declaration, Accra Agenda for Action and Busan?
  5. What are the mechanisms for managing development partnerships?
  6. What is the experience of implementation to date?
  7. What is the Aid Management Systems in Cambodia?

What is the national development framework?

 

Cambodia has endorsed the Millennium Development Goals and has added a ninth on mine clearance. The Royal Government's approach to socio-economic development and associated reforms is set out in Phase III of the Rectangular Strategy for Growth, Employment, Equity and Efficiency in Cambodia, which was launched in September 2013 following the July 2013 elections. Phase III builds on the original Rectangular Strategy and Phase II that had guided national development in the period 2004-2008 and 2009-2013.

 

The National Strategic Development Plan updated (2014-2018) is the framework to operationalize the third phase of Rectangular Strategy of the Government. Most of the priority sectors have developed strategic plans that promote national ownership and support increased alignment. Links to the websites of most Government Ministries and agencies can be accessed  here.

 

What is the role of development partners in supporting the NSDP?

 

The NSDP is intended to guide resource allocations to priority sectors and to promote the integration of development assistance with national systems. It is therefore of strategic importance for development partners to align their assistance with these national priorities and systems. Official Development Assistance (ODA) is a major source of financing of development programs of the Royal Government of Cambodia and has contributed to the implementation of major public development projects in Cambodia (see 2016 Development Cooperation and Partnership Report)(View in Khmer). ODA has been highlighted by the Government as an important source of financial and technical input to attain the NSDP objectives and the Cambodia Millennium Development Goals.

        * Click on the images to zoom in

Trends in Development Assistance

Disbursement Trends (USD million)

Development partner disbursements (USD million)

   

 

 

2011

2012

2013

2014

2015

(est)     %

UN (core)

56.5

53.7

48.6

52.5

46.1

3.4%

World Bank

73.8

66.0

35.5

50.6

17.6

1.3%

IMF

0.0

0.0

0.0

0.0

0.0

0.0%

ADB

126.9

82.0

171.4

129.8

133.0

9.9%

GAVI Alliance

6.7

4.9

10.7

2.5

18.9

1.4%

Global Fund

60.2

20.1

45.4

54.6

33.3

2.5%

UN & multilateral

324.1

226.8

311.6

290.0

249.0

18.5%

EU/EC

61.0

41.6

36.6

70.6

57.0

4.2%

Finland

6.9

4.4

5.4

4.4

0.0

0.0%

France

19.5

24.8

17.8

62.6

46.1

3.4%

Germany

43.7

44.6

34.3

28.9

25.8

1.9%

Ireland

0.7

0.3

1.2

0.7

0.6

0.0%

Spain

33.6

8.8

4.1

1.6

0.0

0.0%

Sweden

28.6

30.2

33.8

41.1

25.3

1.9%

UK

34.2

28.2

13.7

0.1

0.2

0.0%

EU partners

236.1

187.9

148.3

211.0

156.3

12%

Australia

78.2

79.5

59.3

66.2

45.1

3.4%

Canada

18.5

20.5

11.8

4.5

3.8

0.3%

China

332.0

460.7

436.6

343.0

348.8

26.0%

Japan

114.4

172.3

130.8

111.4

135.0

10.1%

New Zealand

4.4

3.8

3.2

6.0

3.5

0.3%

Korea

45.3

46.2

50.1

77.9

55.9

4.2%

Switzerland

4.5

4.3

7.8

11.8

13.1

1.0%

USA

64.4

85.0

93.5

90.9

105.1

7.8%

Other bilateral

661.8

872.3

793.1

711.8

710.2

52.9%

NGO (own funds)

200.7

212.3

225.9

231.3

227.5

16.9%

TOTAL

1,422.6

1,499.2

1,478.9

1,444.1

1,343.0

100%

 

2015 Sector Allocations (USD million)

   Source: Cambodia ODA Database (March 2014)

Development partners' support is provided as investment and technical cooperation resources to strengthen central Government planning and budgeting functions; to support major reforms such as Public Administration Reform,Public Financial Management Reform andSub-National Democratic Development Reform; to priority sectors such as health, education, agriculture and rural development, infrastructure, and governance; to sub-national authorities and service providers; and to non-state actors. In each form of support, development partners are requested to adhere to the national policy framework for managing development assistance and to make use of national coordination and dialogue mechanisms (see below). Information on development partner support can be accessed via the Cambodia ODA Database.

 

What is the policy on managing development assistance?

 

The Government's policy on managing development partner assistance, as well as for strengthening partnerships with all development actors, is articulated in the Development Cooperation and Partnership Strategy 2014-2018. This establishes CRDB as the national aid coordination and development effectiveness focal point, which is governed by a sub-decree (further information on CRDB and its mandate can be viewed here). Responsibilities of respective Government Ministries and agencies for managing external assistance are identified as follows:

  1. CRDB/CDC shall coordinate the formulation of visions and strategies for public investments and shall coordinate the ordering of priorities for public investment for medium term and one year.

  2. The Ministry of Foreign Affairs and International Cooperation shall be the diplomatic window.

  3. The Ministry of Planning, by cooperating with other ministries and agencies, shall prepare the 3 year public investment plan.

  4. The Ministry of Economy And Finance shall prepare the macroeconomic framework for the medium term, shall prepare national budget for the implementation of the annual public investment plan, and shall monitor the implementation of financing.

  5. Line ministries shall prepare sectoral public investment plans by closely cooperating with the Ministry of Planning and CRDB/CDC and shall implement those sectoral public investment plans.

The Partnerships for the Development Results (2011-2015), the successor to the Multi-Donor Support Program (2006-2010), was established under CRDB/CDC management to support the implementation of the Royal Government of Cambodia's (RGC) Strategic Framework for Development Cooperation by strengthening and extending the RGC's capacity and systems to manage  external development resources in a results-based manner. An Independent Review of MDSP is available here.

Approaches to managing different aid modalities are set out in further detail as follows:

 

Guidelines for managing all externally-financed projects - Standard Operating Procedures (SOP)

Grant funding - National Operational Guideline (NOG)

Technical Cooperation - Guideline on the management of Technical Cooperation

 

A glossary of aid management terms has also been made available in English and Khmer.

 

Are these policies informed by global initiatives such as the Paris Declaration, Accra Agenda for Action,  Busan and the Mexico agreements on Effective Development Cooperation?

 

The Government was a signatory of the 2005 Paris Declaration on Aid Effectiveness and is has been closely involved in all follow-up activities, including monitoring and evaluation.

 

Cambodia also participated in the global evaluation (2010-2011). Cambodia's Development Cooperation and Partnerships Strategy takes account of renewed global commitments on aid managements and development effectiveness such as Busan partnership for effective development cooperation and the Mexico Communique. A summary of Busan Outcome Statement and its application in Cambodia can be accessed here.

 

A short presentation on development effectiveness and Busan partnership can be downloaded here

 

What are the mechanisms for managing development partnerships?

 

There are three levels of coordination:

  1. The Cambodia Development Cooperation Forum (CDCF) is the highest level for political dialogue and review of NSDP implementation, as well as for discussing the resourcing of the NSDP and endorsing the Joint Monitoring Indicators (JMIs). The CDCF, which replaced the Consultative Group mechanism in 2007, is chaired by the Government.
     

  2. The Government-Development Partner Coordination Committee (GDCC) provides an opportunity, two or three times a year, for high-level dialogue of both a political and technical nature. It is chaired by the Government and its membership comprises Ministers, secretaries of state, high-level Government officials, Ambassadors/Heads of Mission, development partners and civil society representatives. A key role of GDCC is assume responsibility for preparing and monitoring the JMIs while also providing a forum for discussing cross-sectoral issues and other matters that cannot be resolved at TWG level.
     

  3. There are Nineteen Technical Workings Groups (TWGs) which are the basic to facilitate dialogue on a range of sector and thematic issues, mainly at a technical level and with a focus on resourcing, implementation and monitoring. Included in each TWG's Terms of Reference is the implementation, monitoring and reporting of progress related to the Harmonization, Alignment and Results Action Plan and the Joint Monitoring Indicators. TWGs identify their own set of Joint Monitoring Indicators, informed by JMI Guideline, which are the submitted to the GDCC. TWG work is informed by a Government guideline on the Role and Functioning of the Technical Working Groups. TWGs were reviewed in 2006, 2008 (as part of a mid-term review of aid effectiveness efforts) and as part of the Paris Declaration global evaluation work. A TWG Performance Review Study in 2015 was conducted to strengthen TWG performance in order to support the implementation of the Rectangular Strategy III and the NSDP (2014-2018) and as part of the efforts to implement the Development Cooperation and Partnerships Strategy (2014-2018).

The CDCF, GDCC and TWGs each have the opportunity to link their own page on this website providing further details and documentation.

 

What is the experience of implementation to date?

 

The Analysis presented in 2016 Development Cooperation and Partnership Report highlighted the following key policy lessons and implied future directions:

  •         Three policy-relevant recommendations can be made as follows:

    (i)   Transparency and accuracy in data reporting that contributes to improved policy and planning, as well as directly supporting enhanced service delivery. The overall level and alignment of development cooperation, together with the Busanindicators on predictability, demonstrate that the Royal Government and its development partners continue to perform well in this area;

    (ii)  The extent to which development cooperation supports capacity and systems strengthening; the level of support to the governance sector has been in decline since 2009 and in 2015 was only 60% of the USD 126 million provided that year;

    (iii) The link between development effectiveness and results is assessed through the strength of the partnership; although any assessments are necessarily subjective and variable across sectors, the work undertaken in 2015 to update the JMIs and to strengthen TWG performance demonstrates a strong commitment to maintaining effective partnership mechanisms.

     

  •      This finding reveals a closer link between progress in development partnership works and efforts torealize improved development results in Cambodia through the changing roles in developmentcooperation provisions. It also shows the Royal Government's efforts in maximizing resourcemobilisation and ensuring alignment of these resources with national priorities set out in the NSDP2014-2018. In summary, the analysis shows that the aggregate ODA trends are well aligned with national development priorities as per NSDP (2014-2018) resource requirement. The changing rolesin development cooperation provisions (stability in ODA grants along with the increase in concessional loans in recent years) are consistent with funding patterns for a country that is movingtowards attaining the LMIC status, where roles of ODA have become more significant as the catalyst in private sector development and climate change and some other areas like gender equality.

     

  •        Attention to an analysis of broad development cooperation trends over time provides an enhancedunderstanding of resource allocation and utilisation. This can inform policy on how Cambodia canmanage the transition to becoming a Lower-Middle Income Country and can use these funds to besteffect to secure further progress towards graduation from Least Developed Country status. Externalresources must increasingly complement domestic financing and other sources of developmentfinance, including those from the private sector and from South-South Cooperation. The challengefor the Government ministries and agencies of the Royal Government is therefore to ensure effectiveleadership and coordination at policy and technical levels so that all of these diverse sourceseffectively support the implementation of priority programmes, including the Industrial DevelopmentPolicy and cross-cutting challenges that address issues such as vulnerability and climate change.Beyond analysis at the macro level, the data presentations in this report not only equip Governmentministries and agencies and development partners with the information that is required to managedevelopment cooperation more effectively, they can also go some way to identifying issues at sectorlevel related to the application of the main reforms and measures that are required to support thestrengthening of planning, budgeting, programming and monitoring of results.

     

  •         It takes us beyond a simple reflection on how developmentassistance has been used and provides empirical evidence that can be used to support our efforts to deliver results. Actions must be now be identified to promote the necessary measures that are required if development assistance is to maximise its contribution to national development goals. Based on the significant progress made to date, and the commitment to our partnership that has been demonstrated and regularly reaffirmed by Government and development partners, there is every reason to be confident that the Development Cooperation and Partnerships Strategy can continue to be an effective guide to promote resource management and the realisation of results.

     

 

 

What is the Aid Management Systems in Cambodia

 

The Cambodian ODA Database records details of project and programme assistance provided by all development partners and there is also a ODA Database User Manual available for download.

 

Comments and feedback

 

CRDB would be most interested in receiving your feedback on the usefulness of this page, especially for newly-arrived development partners. Proposals for making it a more useful resource will be gladly received. Comments can be sent to information@crdb.gov.kh.