Promoting Development Effectiveness in Cambodia

 

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 2017 Development Cooperation and Partnerships 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 Sustainable Development Goals.

 

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Trends in Development Assistance

Disbursement Trends (USD million)

   

2015 Sector Allocations (USD million)

  

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 and Sub-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 experience of implementation to date?

 

The Analysis presented in 2017 Development Cooperation and Partnerships Report highlighted the strong evidence that continued collaboration between Government and its development partners is delivering results. It also reflects the Royal Government's commitment in maximising ODA resource mobilisation and ensuring its alignment with national priorities as set out in the NSDP 2014-2018. The analysis reveals that the cumulative ODA disbursements over the last five years are closely aligned with NSDP's resource needs. The changing roles in development cooperation provisions - for instance, the stability in ODA grants along with the increase in concessional loans in recent years - are consistent with funding patterns during the Middle Income Country transition.

 

The Rectangular Strategy phase III with the central theme of Growth, Employment, Equity, and Efficiency complemented by the NSDP (2014-2018) continues to address strategic and effective socio-economic priorities to guide the national development agenda over the medium-term. The RGC has also created a wide range of policy initiatives together with the review of institutional arrangements and implementation. The Industrial Development Policy 2015-2025, for example, serves as a "New Economic Growth Strategy" to guide sustainable and inclusive high economic growth through economic diversification, strengthening competitiveness and promoting productivity.

 

Emphasis now needs to be placed on effective implementation. Beyond other priorities to support sustainable development, including through IDP implementation, the RGC recognizes the importance of promoting broad-based and inclusive national development. The on-going process of SDG localisation is an important opportunity for RGC and its development partners to prioritise actions that will ease the transition to a new growth model that delivers continued socio-economic progress for all Cambodians. This work will also inform the next NSDP that will be prepared in 2018 to guide national development in the next mandate of the Royal Government.

 

To meet its ambitious goals, Cambodia will mobilize resources, both domestic and external, public and private. Reducing economic vulnerability and further improving institutional reforms and public service delivery for economic development remain important priorities. The RGC will therefore continue to focus on national development and economic transformation. To respond, the RGC recognizes that effective development partnerships remains essential for national socio-economic development agenda to further promote inclusive growth and sustainable economic development of Cambodia.