Kingdom of Cambodia
Nation Religion King

 

Royal Government of Cambodia

THE CAMBODIA
AID EFFECTIVENESS REPORT
2007


 

Prepared by
the Cambodian Rehabilitation and Development Board
of the Council for the Development of Cambodia
for the First Cambodia Development Cooperation Forum (CDCF)
on 19-20 June 2007

 

May 2007

 

 

Acknowledgement

The major source of information used in preparing this Aid Effectiveness Report is the reports prepared by Technical Working Groups (TWGs) for the Government-Donor Coordination Committee. The efforts of all TWG Chairs, focal points and lead donor facilitators is therefore acknowledged with gratitude  and it is hoped that this Report will be of use to them in their future work. It is also necessary to acknowledge the significant time and effort that has been contributed by development partner focal points who entered information about their programmes into the CDC Database. Without their patience and cooperation much of the quantitative analysis used in this Report could not have been produced.

The findings in this Report are based on the evidence that has been collected and analysed by CRDB. In all cases CRDB has attempted to validate the data and to confirm the factual basis for the analysis that has been presented. CRDB recognizes, however, that in some instances the data requires further validation. Development partners are strongly encouraged to continue to work with Government to ensure the accuracy of the data that is presented.

TABLE OF CONTENTS

Foreword

Executive Summary ...........................................................................................................................
 



i

1. Introduction .................................................................................................................................
 
1
    Aid Effectiveness: A Policy Imperative ...........................................................................................
 
2
2. Development Cooperation in 2006 ..............................................................................................
 
3
    Development Cooperation Activities in 2006 ..................................................................................
Trends in Development Cooperation .............................................................................................
3
5
      Cambodia: Concentration and Fragmentation in the Delivery of Aid ............................................
Alignment with NSDP Priorities
...............................................................................................
Development Assistance Disbursement Trends
..........................................................................
Pledging and Predictability....................................................................................................... Implementation Arrangements and NGO Partnerships................................................................
Trends in Funding Modalities...................................................................................................
Summary Data Presentations and Sector Profiles.......................................................................
 
5
9
11
14
15
19
23
3. Harmonisation, Alignment and Results Action Plan Implementation........................................... 28
    H-A-R Action Plan Implementation through the TWGs.....................................................................
H-A-R: The National Framework for Promoting Development Results................................................
28
28
      Ownership.............................................................................................................................
Alignment..............................................................................................................................
Harmonisation and Partnerships...............................................................................................
Managing for Results...............................................................................................................
Mutual Accountability...............................................................................................................
28
29
31
34
34
    H-A-R Action Plan: A Summary of Progress....................................................................................
 
35

4.

An Aid Effectiveness Baseline.......................................................................................................
 
36
    Reflections on the Paris Declaration Monitoring Process...................................................................
Results and Policy Implications......................................................................................................
Institutionalising the Monitoring Exercise........................................................................................
Additional Indicators....................................................................................................................
 
36
36
37
39
5. Policy Directions in Aid Management............................................................................................
 
41
    Priority Policy Actions  
      Increased Effectiveness of the Technical Working Groups............................................................
The CDC Aid Management Mandate..........................................................................................
The Capacity Development Impact of Technical Cooperation.......................................................
Promoting Mutual Accountability...............................................................................................
Consolidating Implementation of the H-A-R Action Plan..............................................................
 
42
42
43
43
44
6.  Conclusions..................................................................................................................................
 
46
    Linking Aid Effectiveness and Development Results.........................................................................
Moving Forward with Evidence-based Aid Management...................................................................
Actions for Increased Aid Effectiveness..........................................................................................
46
46
47


ANNEXES
 

Annex One:
Annex Two:
Annex Three:
Annex Four:
Annex Five:
Annex Six:
Annex Seven:
Annex Eight:
Glossary of Terms .............................................................................................................
List of Acronyms ...............................................................................................................
CDC Database Questionnaire...............................................................................................
Database Structure and Future Development........................................................................
The Data Collection and Validation Exercise..........................................................................
Additional Data Presentations..............................................................................................
Sector and Sub-Sector Classification....................................................................................
Concentration and Fragmentation: A Clarification..................................................................
 
48
51
52
55
56
61
69
71

LIST OF TABLES
 

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17
.
Development Assistance: Indicators of Transaction Costs......................................................................
Composite Index of Project and Sector Fragmentation in Cambodia (2006).............................................
NSDP Allocations (2006-2010)............................................................................................................
Development Cooperation: Disbursements 2002-2006..........................................................................
Loan Disbursements 2006..................................................................................................................
Pledges and Disbursements 2005-2006...............................................................................................

NGO Disbursements 2006.................................................................................................
.................
NGO Sector Support 2005-2006.........................................................................................................
Sector Disbursement Trends 2002-2006.............................................................................................
Disbursement by Type of Assistance 2002-2006..................................................................................
Development Partner Disbursements by Type of Assistance..................................................................
Partnership Analysis.........................................................................................................................
Delegated Partnership Arrangements.................................................................................................
Implementing Partners and Associated Sectors...................................................................................
Project Partnerships in Three Priority Sectors.....................................................................................
H-A-R Action Plan Identified Activities and Summary of Progress........................................................
Baselines and Targets......................................................................................................................
 
2
7
9
12
13
14
16
16
18
20
22
32
33
33
34
35
37

LIST OF CHARTS
 

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Concentration and Competition in the 'Market for Aid'...........................................................................
Sector Fragmentation 2006...............................................................................................................
Composite Index of Project and Sector Fragmentation in Cambodia (2006)............................................
Alignment of Aid: NSDP and PIP Commitment Profile............................................................................
PIP Commitments and development assistance disbursements (2006)...................................................
NSDP financing profile (2006-2010) and development assistance profiles (2005 & 2006).........................
Annual Change in Development Cooperation Disbursements 2005-2006.................................................
Disbursement Trends 2001-2006.......................................................................................................
Implementation Arrangements 2006...................................................................................................
Development Assistance Trends in Asian Developing Countries (2001-2005)...........................................
Ten Largest Sectors 2005..................................................................................................................
Ten Largest Sectors 2006..................................................................................................................
Reallocations of Development Assistance between Sectors...................................................................
Disbursement by Type of Assistance 2002-2006...................................................................................
Technical Cooperation 2000-2006.......................................................................................................
Technical Cooperation Ratios in Asian Developing Countries..................................................................
6
7
8
10
10
11
13
13
15
17
18
18
19
20
21
23
           

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