Cambodia Official Development Assistance (ODA)

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Peter Martin

9:48pm Thursday 29 July

Cambodia Official Development Assistance (ODA)

Cambodia's economy remains vulnerable and economic growth achieved has not translated into the widespread poverty reduction necessary to make a difference for the poor. Corruption remains a problem and the pace of legal/judicial reform has been slow.

The Cambodian Government's development priorities are reflected in the "Rectangular Strategy" developed to address the nations Millennium Development Goals (MDGs). The Strategy draws on the Socio Economic Development Plan and the National Poverty Reduction Strategy and is a synthesis of the priorities of these documents. The core of the strategy is good governance, which is to be focused on four areas of reform: fighting corruption, legal and judicial reform, public administration reform, and reform of the armed forces and demobilisation. The Strategy provides the basis for the preparation of the National Strategic Development Plan (NSDP) that the Government has endorsed as the single development plan for 2006-2010. A mid-term review of NSDP will be undertaken in 2008/09.

Strengthening the Government's capacity and effectiveness in aid management linked to the MDGs is a key priority. Aid coordination is the mandate of the Council for the Development of Cambodia (CDC) and there is a need for donors to strengthen their links and harmonize procedures with other key agencies such as the Ministry of Planning and the Ministry of Economy and Finance. There is also an imperative to improve aid coordination to enhance development effectiveness. A number of initiatives are underway, particularly since Cambodia became an OECD pilot country on harmonisation and alignment under Rome Declaration on Harmonisation. The initial Donor Coordinating Committee which was largely managed by the World Bank has been replaced by the Cambodian Development Cooperation Forum (CDCF). This Forum is now managed by the CDC reflecting the ownership requirement - an important pillar of aid effectiveness and allows for high level dialogue to implement the NSDP. The original eighteen technical working groups have been streamlined with donors working in consultation with line ministries.

New Zealand's bilateral development assistance to Cambodia began as a stand alone programme in 1994. Between 1994 and 2005 development support was largely provided through reputable International and local NGOs. With the launching of the Cambodia Country Strategy by NZAID, the key priority area of New Zealand ODA assistance is sustainable rural livelihoods. The Cambodian programme focuses on pro-poor tourism; natural resource management and human resource development. Other focus areas include governance, human resource development, donor partnership and harmonisation and aid effectiveness processes.

As a small donor with an imperative to focus in order to maximise development impact, NZAID concentrates on two main geographic areas - Siem Reap province and targeted assistance in the north east.

Cambodia also benefits from other regional training programmes supported by NZAID such as training programmes for middle management at the Mekong Institute and the Phnom Penh Plan for Development Management. Training is also provided for specialist areas such as agribusiness, metrology, arbitration and the silk industry through the Trade and Development programme.

NZAID provides small scale rural livelihood development projects through the Head of Mission Funds and the Small Project Funds. These funds are managed by the Post. They aim to enhance living standards and human resource development of the poor and in particular vulnerable groups through equitable and sustainable social and economic development.

NZAID also provides funding to Volunteer Service Abroad (VSA) in Cambodia to cover in-country cost for thirteen VSA assignments in Organisational Development, Education and Training, Agricultural and Rural Livelihood and Community Development. Currently there are five volunteers serving in the country. These volunteers are placed with a mix of Government organisations and NGO's.

The Cambodia country programme allocation was $3.75m in the 2007 - 2008 financial year.