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1 Case Study Efforts and Issues to Improve Aid Coordination and Effectiveness in Cambodia * Yoko KONISHI 1970 NGO OECD/DAC ABSTRACT Cambodia still remains one of the Least Developing Countries (LDCs) due to its legacy of genocide during the Pol Pot regime and the following civil war that lasted until the 1990s. In this context, external assistance from the international community and NGOs has been playing a significant role in improving human development and reducing poverty in Cambodia. However, those supports have been subject for donor trends with low government ownership, the * UNDP 14

2 government has had difficulties in meeting various donor procedures, and sustained capacity development has not yet been realized. Since its participation of OECD/DAC exercise for harmonization, the Royal Government of Cambodia (RGC) and its development partners have been making efforts for harmonization and alignment of development cooperation. With the formulation of the National Strategic Development Strategy , the Strategic Framework for Development Cooperation Management, and the newly restructured aid coordination dialogue mechanism, the RGC aims to achieve its own poverty reduction and Cambodian Millennium Development Goals more effectively. This paper examines the background of that effort, and discusses issues impacting improved aid coordination and aid effectiveness in Cambodia. There are several challenges to meeting such objectives in Cambodia; these include linking planning to budgeting processes, shifting the support from policy alignment to system alignment (including supporting credible public financial management system), streamlining the aid coordination window and installing an effective institutional arrangement with key ministries, supporting enhanced and coordinated capacity development and civil service reform, promoting managing for results and mutual accountability, delegating authority from the donor HQ to the field offices and reviewing internal incentive frameworks for aid coordination, and finally, creating behavior and an approach that considers the host country s culture and effective aid dialogue UNDP GDP 441 IMF 2006a Least Developing Countries: LDC % % IMF 2006b 35% CDC/CRDB 2006 ODA CDC/CRDB ODA 37.9 GDP ODA 12% ODA UNDP NGO

3 I 1992 Consultative Group: CG CG CG CG ASEAN ASEAN NGO 1600 NGO OECD/DAC CG A New Development Cooperation Partnership Paradigm for Cambodia 1990 OECD/DAC OECD/DAC 6 OECD/DAC Hubbard, M

4 II Socioeconomic Development Plan: SEDP Asian Development Bank: ADB Second Socio-economic Development Plan: SEDP II Comprehensive Development Framework: CDF Poverty Reduction Strategy Paper: PRSP National Poverty Reduction Strategy: NPRS Cambodian Millennium Development Goals: CMDGs 2003 JICA Cambodia People's Party: CPP ADB DFID 17

5 UNDAF Quadripartite Initiative The Rectangular Strategy RGC National Strategic Development Plan: NSDP NSDP NSDP SEDP II NPRS NSDP 1 NSDP NSDP NSDP 3 Public Investment Program: PIP Medium Term Expenditure Framework: MTEF 2006 CG PIP NSDP NSDP MTEF PIP RGC 2006 NSDP 9 NGO NGO OECD/DAC ODA 18

6 III CG 10 OECD/DAC CDC Council for Development of Cambodia /CRDB Cambodian Rehabilitation and Development Board = / CG 17 Technical Working Group: TWG 14 TWG TWG Government-Donor Coordination Committee: GDCC CDC CRDB TWG TOR Joint Monitoring Indicators: JMIs CG 15 GDCC CG NSDP NSDP 2010 NSDP NSDP CG Strategic Framework for Development Cooperation NSDP 19

7 NSDP GDCC CDC/CRDB TWG GDCC TWG TWG TWG TWG CRDB 2006 TWG IV 3 PIP NSDP MTEF MTEF NSDP ODA NSDP PIP 20

8 MTEF CDC/CRDB NSDP ODA NSDP ODA NSDP Quadripartite Initiative NSDP ADB Standard Operation Procedures 20 CDC/CRDB CDC/CRDB Strategic Framework for Development Cooperation Management Council of Ministers 21

9 CDC/CRDB 21 UNDP NZAID DFID CIDA AusAID JICA CDC/CRDB CDC/CRDB Capacity Development Technical Cooperation Project Management/Implementation Unit: PMU/PIU 2006 PMU/PIU 10 PIU PIU Strategy 1 26 NGO NGO Andersen, O.W., T. Lindqvist, and J.Nielsen

10 2004 CG Public Administrative Reform TWG Council for Administrative Reform: CAR AusAID DANIDA UNDP 2 TWG TWG TWG 1 Merit-based Pay Initiative: MBPI NGO CG IMF CG GDCC NGO 30 NSDP CG CG CG GDCC 2007 CG Cambodia Development Cooperation Forum TWG 23

11 OECD/DAC 2006 Asia Foundation 2005 V OECD/DAC 31 UNDP UNDP JICA UNDP Philip Courtnadge DFID Helen Appleton Ann Lund 1 Ministry of Planning 2004 World Bank 2006 IMF 2006b

12 % 2 ODA ODA World Bank HIV/ 5 NGO Economic Policy Agenda of the Political Platform of the Royal Government in its Third Legislature of the National Assembly Declaration on Harmonization and Alignment 2 December ADB EC GDCC 9 pp Partnership in Development 10 CDC/CRDB UNDP Partnership and Harmonization Technical Working Group UNDP DFID 11 Siddiqui F. C. Sticker and P. Vinde [2004] Council for Administrative Reform: CAR 12 Government-Donor Partnership Working Group Sub- Working Group No National Operational Guidelines for Development Cooperation Grant Assistance March 2006 Phnom Penh 14 HIV/ 18 TWG RGC s Action Plan for Harmonization Alignment and Results CDC plan htm ODI SEILA UNDP CARERE. 20 Regional Workshop on Aid Coordination and Management June UNDP 21 Multi-Donor Support Program to Implement the RGC s Strategic Framework for Development Cooperation Management 22 World Bank 2004 Capacity Building Study Siddiqui F. C. Sticker and P. Vinde Action Aid International OECD 2006 DAC 25 DFID 2005 World Bank 25

13 World Bank and Asian Development Bank % 27 Public Administrative Reform TWG A NGO CCC MediCam NGO GDCC NGO 31 OECD/DAC CDC DAC _ _1_1_1_1,00.html DFID JICA 2001 JICA Action Aid International 2005 Real Aid, an agenda for making aid work, June Johannesburg, South Africa. Andersen, O.W., T. Lindqvist, and J.Nielsen 2002 Salary Reforms as Part of Public Sector Reforms in Developing Countries, the cases of Tanzania and Bolivia, Danida Discussion Paper, No.4, October Asia Foundation 2005 Aid Effectiveness and Aid Coordination in Cambodia, Stakeholder Perceptions, October Phnom Penh. Funded by DFID. Cambodian Rehabilitation and Development Board CRDB 2006 The Government-Donor Coordination Committee GDCC and Technical Working Groups TWGs in Cambodia, a Review. October Phnom Penh. Cambodian Rehabilitation and Development Board, Council for the Development of Cambodia CDC/CRDB 2006 Development Cooperation Report 2004 and 2005, Phnom Penh A Capacity Development Strategy for the Cambodian Rehabilitation and Development Board, Council for the Development of Cambodia, January Phnom Penh. DFID 2005 Why We Need to Work More Effectively in Fragile States. Government-Donor Partnership Working Group, Sub-Working Group No Practices and Lessons Learned in the Management of Development Cooperation, case studies in Cambodia. February Phnom Penh. Hubbard, M Cambodia, a country case study (funded and commissioned by OECD-DAC Task Force on Donor Practices. IMF 2006a IMF Executive Board Concludes 2006 Article IV Consultation with Cambodia, Public Information Notice PIN No.06/78, July 20, b Cambodia, selected Issues and Statistical Appendix. IMF Country Report No.06/265. July Ministry of Planning 2004 Cambodia Socio-Economic Survey, National Institute of Statistics, Phnom Penh. OECD/DAC 2006 Working Party on Aid Effectiveness and Donor Practices, compendium of Donors Reports on Disseminating the Paris Declaration. 3 July Paris. Overseas Development Institute ODI 2005 Weak/fragile country leadership and fragmented donors, Senior Level Forum on Development Effectiveness In Fragile States, Harmonization and Alignment in Fragile States, Draft Report by Overseas Development Institute ODI, United Kingdom, Meeting in London, 13-14, January Royal Government of Cambodia RGC 2004 The Rectangular Strategy for Growth, Employment, Equity and Efficiency in Cambodia, Prime Minister Samdech Hun Sen and The Third Legislature of the National Assembly, At The Office of the Council of Ministers, Phnom Penh, 16 July National Strategic Development Plan , For Growth, Employment, Equity and Efficiency to reach Cambodia Millennium Development Goals. Chapter VI. Monitoring and Evaluation. Phnom Penh. Siddiqui, F., C. Sticker and P. Vinde 2004 Capacity Building Practices of Cambodia's Development Partners : Results of a survey, a Discussion Paper prepared for Government-Donor Partnership Working Group. UNDP 2005 Human Development Report, International 26

14 cooperation at crossroads; Aid, trade and security in an unequal world. New York : Oxford University Press. World Bank 1998 Assessing Aid: What Works, What Doesn t, and Why. Washington, D.C. : World Bank Cambodia at Crossroads: strengthening accountability to reduce poverty, prepared by the World Bank in collaboration with the IMF for the Cambodian Consultative Group Meeting. Phnom Penh, December 6-7, Halving Poverty by 2015? Poverty Assessment Phnom Penh. World Bank and Asian Development Bank 2003 Cambodia Enhancing Service Delivery through Improved Resource Allocation and Institutional Reform, integrated Fiduciary Assessment and Public Expenditure Review. A joint document of the World Bank and the Asian Development Bank. UNDP UNDP 27

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