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I. NGO Statement to the 2002 CG Meeting

The NGO voice stems primarily from the principle that development is first about people.  NGOs believe that the foundation for long-term development of Cambodia rests on the skills and the knowledge of its people.  Therefore, human resource development and capacity building should be the overarching priority for Cambodia’s poverty reduction strategy.  This implies a commitment to upgrade skills and capacities at all levels in the public, private, civil society and non-governmental sectors.  

During the NGO consultations on the Interim Poverty Reduction Strategy Paper (I-PRSP), NGOs identified rural development and decentralization, and public sector reform and good governance as priority cross-cutting issues.  The NGO focus on promoting rural development does not intend to exclude the urban poor but rather it attempts to emphasize the need for pro-poor development strategies instead of development efforts that benefit mainly the non-poor.  There are four essential success factors for local development in both rural and urban areas: effective pro-poor decentralization; the active participation of the poor; realistic salaries for civil servants, and implementation of anti-corruption legislation. 

This NGO Statement addresses the issues to be discussed at this year’s CG meeting.  It covers the issues of poverty reduction strategy in Cambodia as well as the role in poverty reduction of: trade policy; civil service reform and anti-corruption measures; legal and judicial reform; election reform; agriculture and natural resources management; decentralization, and partnership and participation. 

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Poverty Reduction Strategy in Cambodia

(i) NGOs’ Poverty Focus

Deciding who and how many constitute the poor in Cambodia requires a broad understanding of poverty, and not simply a limited income/consumption approach.  This broad understanding of poverty should include the concept of human rights as well as actively requiring the participation of the poor themselves, not only in defining poverty but also in identifying why they think they are poor and how they believe they can rise out of poverty.  It is from this perspective that NGOs approach poverty reduction.

The I-PRSP recognizes broad dimensions of poverty that include lack of opportunities, vulnerability, low capabilities and social exclusion.  While it presents some of the factors that cause poverty as well as policy recommendations to address them, it glosses over the importance of structural causes of poverty.  These structural causes are closely linked to why certain groups of individuals continue to control Cambodia’s productive resources, to the detriment of the poor majority population.  The structural causes of poverty perpetuate inequity: currently, some Cambodians are able to live in luxury in the Phnom Penh area while others eke out a meager existence in remote villages, isolated mine-affected pockets, on urban rooftops or even in the forest.  Therefore, the empowerment of the poor and voiceless should lead to policy actions that distribute Cambodia's productive assets equitably and build upon the social networks and institutions of the poor. 

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(ii) Poverty Reduction: Balance between macro-economic and social & environmental policies

The Royal Government's strategic motto is "Poverty reduction through high economic growth over the long term by ensuring environmental sustainability and social equity."  In practice, rapid growth has often come at the cost of environmental degradation, social disruption and rising inequality.  In the particular case of Cambodia, an overemphasis on high economic growth may be problematic as long as there are not adequate social regulations (e.g. minimum wage legislation, social security) and environmental regulations (e.g., pollution thresholds) in the country’s legal and institutional framework. 

Economic growth is emphasized as a prerequisite to poverty reduction.  However, the position of human development and poverty reduction within the overall economic policy framework determines the type of growth and the equity priorities pursued.  For instance, processes such as the Poverty Reduction Strategy Paper (PRSP) or the Integrated Framework for Trade-Related Technical Assistance to Less-Developed Countries (IF) put a premium on aggregate growth targets and emphasize specific “profitable” economic sectors.  NGOs reiterate that development strategies require comprehensive participatory poverty impact analysis in order to identify the policy instruments that will most effectively target the poor and ensure development with equity. 

A focus on growth with equity would also include maximizing the poverty reduction impact of fiscal, monetary and trade policies, the incentives for Foreign Direct Investment (FDI) and the regulatory environment.  For instance, a Public Expenditure Policy should allocate the budget to target basic social services and focus on closing regional and/or gender gaps in education, health, and other key human development indicators.  The macroeconomic policy framework should place poverty reduction at the center of the development targets.  At the same time, at the center of poverty reduction strategies are the people and stakeholders for which they are intended, and who must participate in all phases of this process. 

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(iii) Cambodia’s Poverty Reduction Strategy: Lessons from the process to date for the process ahead

NGOs spoke out last year about the lack of donor coordination in supporting preparation of the I-PRSP, the Second Socio-Economic Development Plan (SEDP II) and the full PRSP, which implied duplication of tasks, an additional burden for government officials and compressed timeframes for input and consultation at each stage.  Since then, attention has been given to ensuring that the full PRSP further develops the contents of the SEDP II and the timeline for completion of the full PRSP was extended.  Effort needs to be made to ensure that poor coordination does not arise again in the future.

NGOs have provided inputs at every stage of the strategic planning process.  However, time constraints apparently prevented the incorporation of NGO comments into the I-PRSP.  Some NGO comments were taken into account in the final draft of the Main Volume of SEDP II, though the detailed annexes remained unchanged.  The NGO inputs to the I-PRSP and to the SEDP II were recently handed out at a Workshop on Preparation of the full PRSP.  NGOs also intend that this NGO Statement to the CG Meeting be used as an input to the preparation of the full PRSP.

In view of this year’s full PRSP, and based on the lessons learnt in the last couple of years, NGOs would like to emphasize the following points in order to achieve a true country-driven, result-oriented and participatory PRSP document:

¨       Continue to focus on participation by all interested stakeholders and in the process as a whole:

In order to foster the participation of all interested stakeholders, NGOs would like to encourage prompt translation into Khmer language of all draft documents, enabling Cambodian civil society to read and understand the plans and thus facilitating Cambodian input.  NGOs are particularly concerned that no non-NGO, community or grassroots level participation has been elicited in the drafting process of the PRSP.  In particular, special attention should be drawn to include vulnerable and marginalized groups such as the poor, women, disabled, children, ethnic minorities, etc.  Vulnerability and marginalization are both causes and consequences of poverty, and poverty reduction is unlikely to be achieved unless the rights and the needs of these groups are taken into account.

Regarding participation in the process as a whole, NGOs are concerned that elements of the PRSP such as the macro-economic framework may have substantial input from the World Bank and the IMF before there is any wider discussion among stakeholders.  NGOs hope that the PRSP will remain a participatory process, and that the concept of participation will extend to all elements of the PRSP.  Further, NGOs encourage establishing explicit indicators of the level of participation involved in all components of the final PSRP as well as that of the external documents that are linked to the PRSP process, especially the Public Expenditure Review (PER), the trade policy and the development-related plans of line ministries.  NGOs would like to see a country-driven PRS in which the level as well as the quality of participation in each section of the PRSP is not only strongly encouraged but also clearly stated in each section of the final document. 

¨       NGOs encourage government, donor and NGO coordination to avoid duplication of tasks and additional burden for government officials.  NGOs propose building on previous lessons learnt and maintain an alive and flexible PRS document to adapt to the changing needs of the Cambodian reality.  In particular, the overlapping timelines and agendas of the World Bank/IMF requirement for a three-year “country-owned” PRS and the Cambodian Constitutional requirement for a five-year development plan need to be reconciled.  Otherwise, they have the potential to duplicate efforts and slow down the planning processes.  Maintaining a flexible and alive poverty reduction strategy document would potentially allow better coordination among all players and avoid the draining of human resources.   Different timelines on both government- and donor-driven requirements could be built into a long-term process or re-evaluation of poverty priorities for Cambodia.   The input from the Poverty Monitoring and Analysis Technical Unit of the Council for Social Development (PMATU), among others, could be invaluable for the evolution of Cambodian poverty reduction priorities.

The NGO community believes that monitoring and accountability are key to ensuring implementation of the PRSP and other development reforms.  Poverty alleviation strategies should focus on lessening the gap between the rich and the poor, between the city and the countryside, and between men and women.  Therefore, the NGO community believes that the “yardstick” to evaluate success or failure of reform efforts should be what happens to the poor and most vulnerable groups in Cambodia.  These groups would include, among others, the landless poor, exploited women and children, older people or the sick and disabled.  NGOs are ready to contribute in this monitoring function through their knowledge and experience working directly at the grassroots level.

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Trade Policy

The RGC is developing a trade sector strategy and preparing for WTO accession.  NGOs believe that the trade sector strategy must be assessed in the context of an overall pro-poor macro economic policy framework, with equitable poverty reduction as its main policy objective.  The development of any trade strategy must allow sufficient time for participatory poverty impact analysis and extensive consultation with communities that would be most affected.  For instance, there has been limited debate and no public consultation regarding the impact on agriculture and especially on small farmers.  Thus, NGOs encourage the RGC to pursue a fully participatory approach, based on a continuous iterative analytical process.

The trade policy is currently labeled as pro-poor but NGOs do not see that the supporting documentation demonstrate a positive correlation between the type of trade strategy proposed and the actual reduction of poverty in Cambodia.

In particular, NGOs are concerned about the following issues:  (i) export-led growth will not necessarily translate into accelerated poverty reduction if the trade policy is not placed in the context of overall sector and economy-wide poverty reduction strategies; (ii) Foreign Direct Investment (FDI) and export activity will not provide opportunity for poverty reduction if concerns about types and conditions of investment, ownership, labor standards and environmental regulations are not adequately addressed; (iii) Export Processing Zones (EPZs) will export the profits along with the products if they do not guarantee backward linkages and address the possible intensification of income inequalities between rural and urban areas; (iv)  lowering labor standards without improving productivity will not make Cambodia more competitive (cheap labor vs. low per unit labor costs) while attracting high-quality FDI requires a commitment to improving human-capital levels; (v) agricultural export growth will not reduce poverty without effective targeting of remote areas to improve access to capital, technology, skills and other productive inputs as well as information on prices and markets.  Additionally, agricultural exports should not be allowed to threaten national food security.

¨       Therefore, trade policy will only be pro-poor if the pace, sequencing and distributional aspects of trade and economic policy reform are considered carefully. 

For further information on these issues and the recommendations proposed, please refer to the Agricultural and Rural Development and the Trade Policy papers on pages 11 and 62 respectively.

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Civil Service Reform and Anti-corruption Measures

Government, donors and NGOs all acknowledge that low wages and low skill levels are contributing to the low morale and poor performance of the public sector.  The NGO community reiterates that inadequate government salaries remain one of the major obstacles to the delivery of quality public services that could dramatically reduce poverty.  NGOs working in Cambodia are particularly disillusioned by the lack of progress in this area, and especially the ones working in the health, education, legal and judicial sectors.   Particularly worrisome is the fact that the Health Sector Strategic Plan did not select the problem of low salaries as a health sector priority for 2003-2007.

Inadequate and/or delayed government salaries also fuel corruption, and corruption has a greater impact on the poor.  Although the RGC has publicly stated that corruption in the public sector is a major constraint to sustainable development and has pledged to fight corruption, little progress has been achieved.  A recent survey shows that even though the amounts paid by the poor are smaller than what high-income households pay, the low-income households bear the larger burden of corruption as measured by the bribe/income ratio.  Additionally, the same survey shows that households perceive corruption to have become worse over the past three years.  In Cambodia, corruption is widespread and affects the judiciary, customs, tax authorities, health, education, land, forestry, fisheries, road services and police.

¨       Because civil service reform and anti-corruption measures are such key issues for good governance, NGOs reiterate the need to provide a decent living wage to civil servants by introducing a realistic government salary system linked with an impartial performance-based scale.  Additionally, NGOs encourage efforts to pass anti-corruption legislation while also using existing anti-corruption provisions to fight the persisting culture of impunity. 

For further information on these issues and the recommendations proposed, please refer to the following issue papers: Education, Governance and Transparency, Health, Rule of Law on pages 24, 37, 40 and 56 respectively.

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Legal and Judicial Reform  

Although the RGC has made some efforts in the area of rule of law and legal and judicial reform, most notably the creation of schools for training magistrates and lawyers and the appointment of 30 judges and prosecutors, little progress has been achieved. The judicial system is weak and ignored, lacks independence and there is no transparency in the law-making process.  NGOs emphasize that the judiciary must be strengthened, starting with the Supreme Council of Magistracy (SCM), stressing transparency in the law-making process.

¨    The SCM should be strengthened and reformed as an institution to ensure its independence and competency.  The reform of other judicial institutions, such as the Supreme Court and Appeal Courts, is also crucial.   Top priority should be given to increased transparency in law making, the publication and analysis of laws, parliamentary debates / resolutions, and court judgments.

¨    Rule of law also requires access to courts for all.  Thus, NGOs recommend establishing legal aid schemes and increasing the number of lawyers who can practice law.

¨    An emerging issue is the need for special courts for juveniles, labor law, family law, commercial law, trafficking in persons, and other specialized areas of law.  The creation of these courts would be a cost-effective measure. 

For further information on these issues and the recommendations proposed, please refer to the Child Rights and the Rule of Law papers on pages 13 and 56 respectively.

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Election Reforms

Cambodia has seen some significant democratic gains after three elections: two at the national level and one at the commune level.  The forthcoming national assembly election in 2003 has the potential for consolidating these democratic gains and the role of civil society.  However, this will be largely influenced by the quality of the election process, the information voters receive and the freedom they enjoy in choosing their candidates. 

¨    In order to strengthen the electoral institutions and the legal framework, NGOs urge the RGC to reform the National Election Committee (NEC).  The NEC should be composed of five members who would maintain an independent, neutral, non-partisan and competent body.  NGOs would also like the NEC to take proactive measures to ensure equal access to the media for all political parties. 

For further information on these issues and the recommendations proposed, please refer to the Election Reforms paper on page 27.

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Agriculture and Natural Resources Management

Agriculture and natural resources management are key components in any poverty reduction strategy in Cambodia.  Rural Cambodians rely on a combination of access to agricultural land, forestry resources and fisheries in order to have a diversified and sustainable livelihood.  The fair and equitable distribution of these resources, along with their effective long-term conservation is vital to the interests of rural Cambodian poor.  There have been some improvements but some concerns still remain. 

Agriculture provides employment and income opportunities for the majority of the Cambodian population, ensures food security at the local and national levels, and fulfills a crucial environmental role.  Although there has been a surplus in rice production at the national level in the last five years, at the regional and household level there are growing numbers of families that are unable to cover their consumption needs.  NGOs are concerned with two main issues: (i) the overuse of agro-chemicals, which have negative impacts not only at the household level but also in the national economy and the environment and (ii) the lack of public consultation and debate about the possible impact on small farmers of WTO membership and the Agreement on Agriculture (AOA).  NGOs also recommend the following measures:

¨       Establishment of a decentralized and small-farmer oriented research and extension service, and support to self-organized farmer associations or cooperatives.

¨       Enforcement of the sub-decree on agricultural material standards (especially pesticides use), and further implementation of the System of Rice Intensification (SRI), which increases yields while minimizing agro-chemical inputs.

¨       Provision of training and credit opportunities for rural youth in agriculture and agribusiness.

In the natural resources management sector, there has been a welcome increase in consultative processes in the development of legislation.  However, these consultations have been uneven and not always transparent.  While NGOs and community representatives have spent much time and effort engaging in these processes, they have been discouraged when they find that major changes are made to draft legislation after the consultation is complete, thereby eliminating much of their input.

¨       Please see the Partnership and Participation section on page 8 for further information on the need to create procedures on the consultative process for all new and modified legislation. 

Another common concern of NGOs in the fishery and forestry sectors is the generalized perception of ordinary people as culprits instead of as agents for the protection and preservation of natural resources.

¨       NGOs encourage donors to assist Government and local communities to increase the role of local communities as agents for the effective protection and preservation of natural resources. 

ü      In the fisheries sector, this would involve assisting local communities to participate effectively in community fisheries, highlighting both rights and responsibilities.  This might also involve building the capacity of the Department of Fisheries to support community fisheries. 

ü      In the forestry sector, this would involve redirecting funding from the reform of the concession system (which is not working) to instead helping the government reorient efforts towards increasing communities’ role in managing forests and new protected areas.

The fisheries sector in Cambodia is extremely productive and has great potential to contribute to food security and poverty reduction.   However, fisheries management suffers from governance-related issues such as: corruption; low direct financial or economic return; no clear new laws; poor cooperation among different government agencies and local authorities; and no clear penalties or mechanisms for enforcement as is the case with illegal fishing.  The recent distribution of fishing lots to local communities, while welcome, is not benefiting the poorest rural communities.  The areas were released according to their limited auction value and not on the basis of local need.  The very fast pace in which the reforms were implemented has left a gap in terms of capacity to manage the new community fisheries.  Local authorities, military and police elements continue to protect illegal fishing operations, bringing them in conflict with local communities.

¨       NGOs recommend an urgent review of the recent reforms and their impact on rural livelihoods and the sustainability of the fisheries, in order to assist further implementation of the reforms.

In the forestry sector, concerns regarding negative impacts for forest-dependent communities include: forest and land concessions that ignore guidelines for sustainable forest management; continued anarchic logging; extensive clearing of land for private ownership; obstacles to the transport and sale of non-timber forest products (NTFP); and lack of coordinated land use planning.  In addition to participatory efforts in legislation and increasing the role of communities in managing forest and new protected areas, NGOs recommend:

¨       Impose a ban on land concessions in forest areas, and increase efforts to stop anarchic logging and all clearing of land (with the exception of traditional swidden).

¨       Remove barriers to marketing NTFPs and resin, which can be harvested without negatively affecting the forest.

Besides the need for open consultations in regulations related to the Land Law, NGOs’ main concerns in the land reform process focus on the prioritization of activities to ensure pro-poor implementation.  Large organizations that finance land reform programs often prefer to concentrate on land administration rather than land management and land redistribution.  In the specific case of Cambodia, NGOs believe that the most important direct poverty alleviation opportunities lie in the distribution of land to rural landless families.

¨       The highest implementation priorities should concentrate in land distribution (through a nationwide programme of Social Concessions) and land management (especially demarcation and registration of State Land).

¨       The priority for land administration should be titling in areas where poor people are most vulnerable to being dispossessed.  Surveys suggest that these are particularly: areas that were fought over during the 1990s; areas where the local economy is booming; areas with high land values and potential for commercial exploitation (e.g. as plantation land); areas near national borders and along national roads.

For further and detailed discussion of the above issues and recommendations, please see the following papers: Agriculture and Rural Development, Fisheries, Forestry Sector and Land Reform on pages 11, 30, 32 and 46 respectively.

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Decentralization and Poverty Reduction

NGOs want to emphasize that decentralization does not automatically imply poverty reduction.  Nevertheless, lessons learnt from international experience have shown that pro-poor decentralization might be achieved if: (i) the rural poor are properly organized to protect their own interests; (ii) organized groups of the rural poor are small and homogeneous; (iii) government agencies and NGOs involved in rural development do not overpower the councils and grow too big; (iv) different programs target different sub-groups within the poor; (v) the emphasis of rural development projects is on informal on-the-job training rather than institution-bound training; and (vi) the role of NGOs is clearly defined and free of bureaucratic trammels.

While recent Prakas have addressed many of the concerns relating to decentralization expressed by the NGO community, some key issues remain to be tackled to foster a pro-poor decentralization process.  Cambodian civil society lacks experience in interacting with local authorities as advocates or monitors. Citizens must understand the powers and functions of the councils and their own rights to influence the council decision-making process.

¨       NGOs recommend to foster the participation of an active grassroots civil society and to provide adequate and transparent funding in order to establish Commune Councils legitimacy within their communities. 

For further information on these issues and the recommendations proposed, please refer to the Decentralization paper on page 16.

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Partnership and Participation

NGOs acknowledge the significant progress made in enhancing partnerships and aid coordination, particularly in strengthening national leadership, enhancing partnerships with NGOs and the private sector, and developing sector-wide management approaches. 

The NGO community believes that a partnership approach to development efforts should include not just donors, but also direct on-going dialogue between the people and the government.  Thus, NGOs applaud and encourage the increasingly participatory approach of the government, and the latter’s efforts to engage NGOs and civil society in its implementation of reform measures.  These efforts have materialized into the drafting of important plans, such as the ESP and ESSP within the education sector.  However, the NGOs have not seen progress in their recommendation given to the last CG Meeting to draft and implement a law on the legislative process to ensure effective participation of civil society.  Currently, the consultative processes are not always transparent and are uneven from ministry to ministry.

¨       NGOs stress the need for adopting enforceable government procedures on the consultative process for all new and modified legislation (laws, sub-decrees and circulars).  The procedures should explicitly mandate that government agencies actively seek consultation.  These procedures should be standardized for all government agencies, including specific timeframes for consultation at each stage of legislative review (department, ministry, Council of Ministers, National Assembly).  Finally, these procedures as well as all draft laws, sub-decrees, and circulars should be widely and openly distributed to civil society organizations.

NGOs have extensive experience working with the poor but cannot speak as the representative of the poor.  Consultations should include the people directly affected by poverty reduction policies -that is, poor people themselves- as well as civil society groups such as the Buddhist clergy, wat committees, farmers cooperatives, women’s associations, trade unions, garment workers, and ethnic associations.  The poor and other organized civil society groups have their own voice, and that voice needs to be heard by all those involved in poverty reduction efforts.

NGOs encourage the provision for real, effective participation by the public in reform efforts.  The growth of a critical mass of Cambodians who understand and support the development strategies and reforms becomes crucial to the success in partnership and participation.  The public needs to be informed of reform efforts, but at the same time the government must actively solicit and take seriously the input of the public in decision-making processes.  Only then will there be shared ownership over the development and reform process in Cambodia.  

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Other Cross-Cutting Issues in Poverty Reduction

There are many issues of importance to poverty reduction that are not directly covered by the agenda of this CG meeting.  The 22 attached sectoral and issue papers highlight the main issues identified by NGOs to be taken into account in poverty reduction efforts.

Some cross-cutting concerns that have been raised recurrently by NGOs are the following:

·         The gap between national budget committed funds and effective disbursed funds is undermining any gains from policy reforms and contributing to the disillusionment among stakeholders.  Thus, NGOs encourage the Ministry of Economy and Finance to honor the commitments made to the social ministries and ensure adequate allocation of funds and a timely and transparent disbursement schedule.

¨       Also, NGOs encourage the analysis of gender-specific impacts and impact of HIV/AIDS at the policy formulation and implementation phases of reform programs.

For further information of these issues and the recommendations proposed, please see the Education, Gender and Women’s Participation, Health, and HIV/AIDs papers on pages 24, 35, 40 and 42 respectively.

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Looking Forward

Cambodian society has undergone major changes in the last decade to support continuing progress in economic, social and political development.  The NGO community recognizes the importance of these policy reforms, yet we wish to remind donors and the government of the need for a broad understanding of poverty and of the challenge of achieving equitable development in Cambodia.  

For the 2003 Consultative Group Meeting on Cambodia, NGOs would like to see major improvements in the most crucial issues that affect the poor and vulnerable, concretely:

¨       Continuous work towards equitable growth: an increased focus on the structural causes of poverty, in-depth analysis of poverty impacts and coordination of all policies (including macro-economic, fiscal, trade, social and environmental policies).  The benchmark to evaluate success or failure of the reform programs must be what happens to the most vulnerable groups.

¨       Radical improvements in the culture of impunity and effective anti-corruption measures.

¨       Poverty reduction strategies that put at their center the people for whom they are intended, allowing them to participate in all phases and at all levels of the process (including policy, implementation and evaluation).

¨       Enforced standardized government procedures for all new and modified legislation.  These procedures should require all government agencies to establish timeframes and opportunities for public consultation at all stages of the legislative and regulatory process.

The NGO community welcomes any opportunity to further improve their coordination and partnerships with government, donors and local communities in supporting the poverty reduction efforts and development programs in Cambodia.

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II. Sectoral Papers

(i)         Introduction

Agriculture has been playing an important role by ensuring food security at community and national level as well as in the provision of employment/income opportunity for a growing population (about 75 % of the population is employed in the primary sector). In addition, agriculture plays an important environmental role as water shed protection, ensuring quality of water and soil resource and bio-diversity, depending on the type or form of farming practices. 

(ii)        Key Issues and General Trend

Agricultural development has received attention from various development programs. However, the public research and extension system is still poorly developed so that the majority of small farmers do not have access to technical and market information. Existing efforts have focused on increasing rice production through fertilizer recommendation, the introduction of improved seed varieties and integrated pest management. In the livestock sector, programs tend to focus on vaccination and training of village livestock agents.

Except for the IPM and farmer field school approach, most of the initiatives and efforts to address food security and agricultural development focus on promoting the increased use of agro-chemicals. Farmers now believe that increased agricultural production can be achieved only by using more modern inputs or by using modern inputs properly. This approach does contribute to increased production, but at higher costs on imported/external inputs especially fertilizer and pesticides. This trend has a negative effect not only on the household economy, but also the national economy since these inputs are mainly imported. It is estimated that Cambodia spent around $US 50 million on fertilizer and pesticides annually in 2000 and 2001. Also, environmental impact of the widespread use of agro-chemical remains an important issue.

The Minister of Agriculture has raised the issues related to the increasing imports of and widespread use of agro-chemicals during the recent annual meeting of the Ministry of Agriculture, Forestry and Fisheries. The most alarming situation is that the most dangerous pesticides are still widely used by farmers, even though this issue has been raised since the mid-90s and a sub-decree was issued in October 1998. The pesticide used by farmers also includes persistent pesticide  “DDT”, which is not in the list to be banned according to the 1998 sub-decree, but it is banned according to the Stockholm Convention on Organic Pollutants, POPs (Cambodia is a signatory to this convention).

The aggregate rice production has been stable in the last five years, with a surplus at the national level. However, the situation is different at regional and household levels. There are growing number of families who are not able to produce enough rice for self-consumption, especially in the areas affected by the worst floods in 2000 and 2001.

The reality is that in most of Cambodia there is enough food to eat but still nearly half of the rural children do not eat properly. In terms of food security, the availability issue has been resolved but the problem of access is still very prevalent. For example a recent survey conducted by SCALE in Kandal provinces shows that 46% of children were stunted. In comparison, a national survey by UNICEF in 1996 showed that 56.4 % of children under five were stunted while a more recent UNICEF survey in five provinces showed 48 % of children under five were stunted..

As Cambodia’s population is increasing rapidly, and employment opportunities in the non-agricultural sector are limited, an increasing number of the rural youth are facing problems with employment. In addition, employment in agriculture generally does not ensure a stable income since they do not receive proper training and the land allocation from parents is too small to support them to start their own farm business.

The Royal Government of Cambodia, through the Ministry of Commerce has been pursuing membership in the World Trade Organization (WTO). However, there has been little or no dialogue or debate, including public consultations, on the impact of WTO (the Agreement on Agriculture, AOA) on Cambodian agriculture, especially on small farmers.

(iii)       Recommendations

·         A decentralized and small farmer oriented national research and extension system should be put in place. This should include supporting the initiatives and efforts of farmers in organizing themselves in associations or cooperatives.

·         There is a need for public investment both in physical and human resource management as well as in technology development. The public research center should be set up according to specific agro-ecosystem, such as rainfed lowland, upland, annual flooded agro-ecosystems. It should be linked with a decentralized extension team or unit, which should be based at district level.

·         Allocation of resources for the support of research and extension program should be based on the quality of proposals and program implementation. Research and extension agencies are challenged to develop program proposals if good quality. Community-based organizations and NGOs should be allowed to participate in this process, so that there are pluralistic and responsible service provision systems.

·         With regards to research and extension, the priority should be given to pro-small farmer initiatives and/or innovative approaches in intensifying and diversifying agricultural production based on sustainable and low external input principles.  These should not only seek to intensify rice production, but also to diversify agricultural production to cope with the problem of food security and malnutrition.  The system of rice intensification (SRI) or the system of improved practices in water, plant, soil and nutrient management is one example of an innovative approach. SRI is being developed in Madagascar and it is introduced by CEDAC, a Cambodian NGO, in 2000. Now, SRI has been validated by 500 Cambodian farmers, mainly by farmers supported by CEDAC and other organizations such as Prasac II (European Union Funded Project) and GTZ. It has proven to be an appropriate innovation since it allows farmers to increase production up to 150%, with minimal or zero expenditure on agro-chemical. This approach conserves water (up to 50%) which brings big economic and environmental benefits for irrigated rice farming in the dry season. SRI is also an important means for farmers to diversify their rice-based farming systems because once they can get higher rice production from their small plot, they are ready to covert some of their rice fields for growing upland crops and digging a pond and canal for practicing fish culture. This is good for improvement of nutrition, income, and landscape diversity.

·         There is a need for effective enforcement of the sub-decree on agricultural material standards, especially the regulation on pesticide use, to ensure that all Class I pesticides are totally banned from being traded and used in Cambodia. In addition, the sub-decree should be revised to include some Class II pesticides, especially DDT and Chlordane, in the list of pesticides to be banned.

·         In addition to the enforcement of regulations, public education programs should launch to ensure that farmers and consumers have access to information on pesticides and their hazards.

·         Resources and efforts should go to develop a system of rural education, especially training for the rural youth in agriculture and agriculture related business. This training should be combined with loan program so that they can invest to start-up small enterprises in agriculture and agriculture related sector or other rural enterprises.

·         Focus on supporting farmer organizations so that farmers can take a more leading role in agricultural development and marketing.

(i)         Introduction

The NGO Committee on the Rights of the Child (NGOCRC), is a coalition of national and international non-government organizations (NGOs) working together to advocate for the rights of children and monitor the implementation of the Convention on the Rights of the Child in Cambodia (CRC). The NGOCRC was established in 1994 and there are currently 34 NGO members. In 2002, there are approximately 200 NGOs in Cambodia working specifically with children.

Children comprise 52.1% percent of the population in Cambodia, and with an estimated 36% of Cambodians living in poverty, the challenge to reduce poverty must include measures specific to the special needs of children. Cambodia's future and economic growth depends on the survival and development of its children. As Cambodia develops, poor and vulnerable children will be further marginalised without targeted programs, inclusive planning and cooperation. Child Rights is a governance issue, insofar as the realisation of those rights requires leadership, commitment, and resources on the part of the Royal Government of Cambodia (RGC). The key areas needing attention include policy development, human and economic resource development and allocation, and the development, application and enforcement of laws to protect children. Child Rights is a crosscutting issue, and as such, this paper complements several of the other sector papers, in particular, the education and health sectors. 

(ii)        Progress on Key Issues

1. CRC Implementation and Monitoring:

The Cambodian National Council for Children (CNCC) has created three sub-committees: The sub-committee for countering trafficking and sexual exploitation of children; the sub-committee on Child Labor and other forms of Exploitation; and, the sub-committee for legislating child-related laws.

In 2000, the subcommittee for countering trafficking and sexual exploitation of children, with the support of UNICEF and ILO, produced the National Five Year Plan Against Trafficking and Exploitation of Children. This has been followed by a series of seminars to implement the plan for relevant ministries, provincial authorities, NGOs and International Agencies. In addition to organizing seminars, the subcommittee has participated in regional and global conferences on sexual exploitation of children.  

The subcommittee on legislation has set up a working group to draft laws. Currently the subcommittee is working on a draft law to have a juvenile court function as part of Cambodian court.  The RGC has ratified the two Optional Protocols of the CRC demonstrating its commitment to Child Rights.

In 2001, the government organized a seminar on the Recommendations/Concluding Observation of the Committee on the Rights of the Child on Cambodia State Parties Report.  The RGC, with financial support from UNICEF, has fully supported and organized the global movement: "Say Yes Campaign".

2. Abuse, Exploitation and Trafficking of Children:

The Cambodian government has strengthened its response to dealing with this issue by raising the profile of abuse, exploitation and trafficking of children, and forming stronger networks with organizations working to combat this problem. An extradition and repatriation agreement has been signed between Cambodia and Thailand to repatriate trafficked Cambodian children and about 200 children are returned weekly to Cambodia to be rehabilitated and reintegrated. The number of victims of abuse, exploitation and trafficking appears to have risen over the last 12 months, but this could be due to increased reporting and intervention. There only have been 6-7 offenders convicted for these crimes. This number is very low compared to the reported prevalence of this illegal activity. The Cambodian government is mid-way through the Five Year Plan of Action Against Sexual Exploitation of Children, however the progress of implementation is very slow.  In a well-known red light district of Phnom Penh, Svay Pak, there are children as young as 7 years old forced to prostitute themselves.

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3. HIV/AIDS:

Children orphaned by AIDS have been put into orphanages 1, 2, 3 and 4.  There is insufficient care and limited services available for those poor children. The Government has created a National AIDS Authority (NAA) to work closely with NGOs and other agencies to fight discrimination against children infected with HIV.  A Five-Year Common Strategy (2001-2005) has been developed and a campaign to raise awareness about the plan has been made.

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4. Drugs:

Surveys and research show an increase in drug use among children and youth. The RGC has made some effort in combating the abuses of substances through a creation of National Authority for Combating Drug Abuse, but there remains a lack of prevention services, and lack of alternatives to drug taking, such as recreation facilities, training and employment opportunities.  The RGC is now in the process of considering the establishment of treatment and rehabilitation centers for drug victims, and it will be important to be inclusive of children and young people in the service development and planning. The RGC has made efforts to create and strengthen networks at the provincial/municipal level to crack down on the illicit use and transfer of drugs. NGOs, with the recognition of the Government, have established a Drug Abuse Forum for those who need help or information.           

5. Adoption: 

The adoption of Cambodian children to foreign countries has become known as a burning issue in the last few years.  It has developed into a lucrative industry and resulting in criminal and exploitative practices by some involved.  LICADHO investigations have revealed clear patterns and networks in the process of trafficking of babies and young children, beginning with local recruiters who pay and coerce poor and vulnerable mother to give up their babies, who end up in orphanages controlled by adoption facilitators with link to foreign adoption agencies.  Subsequent attempts by biological parents to recover their children or even visit them are refused.  Cases of fraudulent paperwork with false histories of supposed “orphans” have been documented, and the Cambodian Government approval process for adoption is widely believed to be corrupt.  The current adoption system does not adequately protect children, birth parents or prospective foreign adopters.      

6. Juvenile Justice:

There is no juvenile justice at all in Cambodia, and legislation has little prescribed support for children.  Based on our research, children in conflict with law are being detained with adults. There were 239 minors in adult prisons in December 2001; of these 31% were still awaiting trial.  The number keeps increasing daily.  The Cambodian Justice system does not provide rehabilitation and education support to children while they are in prisons.  Subsequently, 6 out of 10 children released from prison are committing more serious crimes and are often subject to beatings when re-imprisoned. In some cases juveniles were detained up to 11 months, contrary to the law which permits only 2 months pre-trial detention. This is an unacceptable situation, which places children in conflict with the law at serious risk. The lack of alternatives to imprisonment means that the principle of prison as a last resort can not be applied.  The purpose and mandate of the Youth Detention Centre in Phnom Penh is unclear, which may lead to illegal detention.

(iii)       Recommendations

1. CRC IMPLEMENTATION AND MONITORING:

·       The RGC should turn its national plans and outcomes of seminars into practical implementation in the field.

·       The RGC should widely inform the public about the availability of its child protection services and encourage people to make use of such services.

·       CRC should be part of National Education Curriculum. 

2. ABUSE, EXPLOITATION AND TRAFFICKING OF CHILDREN:

·       The RGC should demonstrate its commitment to protecting children against these types of crimes by sponsoring and supporting a national campaign of awareness about policies and laws against abuse, exploitation and trafficking. This campaign should involve community awareness programs, school programs, media campaigns and training for officials in the relevant ministries.

·       While respecting the independence of the Judiciary, the RGC should increase human and financial resources to detect, investigate and successfully prosecute all perpetrators and people involved in the abuse, exploitation and trafficking of children, regardless of their position or status.

·       The RGC should facilitate improved coordination and cooperation between relevant ministries, both nationally, and with officials from neighboring countries.

·       Donors need to cooperate to ensure that service gaps can be filled and duplication does not occur. 

·       A public statement should be made about the progress of implementation of the 5 Year Plan of Action, and follow up should be implemented.

3. HIV/AIDS

·       Make available and publicize basic services for child victims of HIV/AIDS.

·       Reconsider the awareness campaign against HIV/AIDS, as some messages frighten people, which leads to discrimination and exclusion of victims.

·       Create Community-Based Care Centers for victims of HIV/AIDS, as there are not enough hospitals.

4. DRUGS

·       Establish and implement a drug abuse prevention strategy.

·       Take tougher action against the use and trafficking of illicit drugs.

5. ADOPTION

·       The Government must sign the Hague Convention on Inter-Country Adoption.

·       Pass new legislation which meets the requirement of the Hague Convention and UN Child Convention.

·       Set up national and international network to combat illegal adoption.

·       Criminalize those involved in exploitative practices in adoption.

6. JUVENILE JUSTICE

·       The RGC needs to endorse and facilitate the establishment of community-based corrections as an alternative to imprisonment, especially for children in conflict with the law. This will require close cooperation with NGOs. 

·       The MOI should ensure all institutions provide accommodation separate from adults and education and rehabilitation programs for juvenile detainees.

·       The RGC should draft legislation, complying with the CRC, specific to juveniles in conflict with the law, and establish a Children's Court.

·       All legislation should be amended in favor of children to protect and supervise children in conflict with law.

·       The mandate and purpose of the Youth Detention Centre in Phnom Penh should be established to avoid illegal detention.

Conclusion

The RGC should make more effort to implement CRC and review laws and legislate to ensure CRC compliance.  It should seek to enter child-related international treaties.  It should give more focus to practical implementation, not just planning and workshops.   

 (i)         Introduction

The Royal Government’s decentralization reforms graduated to a new phase on February 3, 2002 when 1,621 commune councils were elected.  Commune councilors are undergoing initial capacity building training that is scheduled to be completed by June, 2002.  Each new commune council has one year to approve a commune development plan.

NGO contributions to decentralization have been financial and in the areas of training local NGOs and government authorities regarding decentralization reforms, commune councilor capacity building, technical assistance to the Royal Government and public consultations.

Recent Prakas have addressed many of the concerns relating to decentralization expressed in the NGO community in the last year.  However, some key issues remain to be tackled, many in regard to the interrelationship between decentralization and poverty reduction.

A correlation between poverty reduction and decentralization is not automatic.  A correlation exists only if certain conditions exist.  International experience teaches that pro-poor decentralization can be achieved only if the rural poor have the capacity to protect their own interests, government agencies for rural development and NGOs do not overpower the councils and grow too big, programs target specific groups of the poor and training programs for rural development projects emphasize informal on-the-job training.  In addition, the role of NGOs, including their relationship with local government, must be clearly defined. 

(ii)        Key Issues

Participation by an active grassroots civil society

An active grassroots civil society serves two distinct purposes.  First, it ensures that the diverse voices of citizens are articulated and heard by local government.  Second, an active grassroots civil society can act as a check on local government actions and ensure that local government complies with the wishes of citizens - a community based monitoring function that enhances accountability.  Both roles promote pro-poor governance.

The Law on Elections of the Commune Councils has brought the government to the people.  However, that shift does not guarantee that the people in turn will be brought to their government.  Indeed, this is acknowledged in the Interim Poverty Reduction Strategy Paper (I-PRSP) at page 12.  Civil society in Cambodia has little experience in interacting with local authorities as advocates or monitors.  The current capacity deficit in this regard, recognized in the I-PRSP, must be addressed.  In order to mobilize grassroots civil society to ensure that it plays its rightful and necessary roles, civil society must first understand the function and powers of commune councils and its right to influence council decision-making.

While the Prakas on Commune/Sangkat Development Planning does provide for some civil society representation on planning and budgeting committees as well as other means of participation, it does not establish mechanisms to overcome the capacity deficits that exist at the grassroots level.  Therefore, the opportunities to participate that are set out in the Prakas are not meaningful until and unless citizens are informed of their rights, the means of exercising those rights and providing feedback to government, informed about the powers and duties of the councils and until they develop the capacity to hold their elected representatives accountable.  Capacity building in all these regards is essential.

Existing Village Development Committees (VDCs) are likely to be important actors at the commune level.  While creating a role for VDCs within the council structure on the planning and budgeting committees has been applauded by many, questions remain to be answered.  If, as has been discussed, village chiefs are to act also as VDC chairpersons, VDCs will become a part of local government.  That would remove from grassroots civil society strong and experienced voices on development issues.  Additionally, there is a need for clarification regarding what requirements must be met in order for a VDC to be represented on a planning and budgeting committee.

As part of civil society, NGOs have a key role to play.  NGO roles include mobilizing grassroots civil society, building the capacity of citizens to take an active role in local level government, establishing council monitoring systems, service delivery and engaging in dialogue with government at all levels.  The role of NGOs in the new legal structures, however, requires clarification.  In particular, the relationship between NGOs and commune councils must be addressed so as to ensure that NGOs are able to engage in development work in cooperation with, rather than under the direction of, commune councils. 

The final comment in respect of an active civil society is in regard not to decentralization per se, but to the PRSP drafting process.  It appears that no non-NGO community or grassroots level participation has been elicited.  As the primary stakeholders, the voice of the poor should be heard directly by way of open consultative forums at the local level.

Funding and programming

Commune councils require sufficient funding in order to establish legitimacy within their communities.  This is and will be an on-going need.  There is also a need to coordinate and maximize the funds and resources that are made available to the decentralization reforms.  Coordination can avoid duplicative programs and defragmentation of limited resources and could ensure that there is a more equitable distribution of funds and resources throughout the country.  Coordination among donors, among government ministries and within the NGO community is required as well as coordination among those three stakeholders. 

Transparency regarding funding to commune councils is also of great importance in order to enable community based and other monitoring of commune council spending.  Additionally, as founders begin to implement development projects through and with the commune councils, exit strategies must be developed and discussed at an early stage in order to avoid the collapse of projects when funding and/or assistance is withdrawn.  Strategies should include guidelines for locally initiated resource mobilization in order to promote autonomy and financial independence of councils.

(iii)       Recommendations

National level:

·       NGO participation in key NCSC sub-committees

·       procedures and established timeframes for public consultation prior to passing Prakas and other regulations relating to decentralization and local governance reforms

·       a publicized schedule of planned Prakas and other regulations, including when the drafting process will begin, when public consultations will be held and when each Prakas or other regulation is expected to be passed

·       a Prakas requiring commune councils to incorporate into their commune development plans specific indicators relating to poverty reduction, equitable distribution of resources, gender, children, ethnic minorities and disabled persons

·       clarification of the requirements that must be met for a VDC to be represented on a planning and budgeting committee

·       prohibition of commune councilors acting also as VDC members

·       requirement that council administrative fees be scaled according to ability of a citizen to pay

·       specific and transparent criteria for the allocation of funds to communes

·       specific development criteria applied when re-drawing commune boundaries

·       add the study of decentralization, local governance and gender to high school curricula

Provincial and District levels:

·       capacity building for the Provincial Offices of Local Administration (POLAs) and other provincial level authorities involved in decentralization, particularly Departments of Planning

·       avoidance of unnecessary proliferation of provincial and district level authorities assigned to deal with decentralization

·       delineated responsibilities outlined in clear terms of reference for provincial and district level authorities

·       inclusion of grassroots civil society representatives at district integration workshops with mechanisms that will enhance its participation (such as first called to speak)

·       written reports to the Department of Local Administration (DoLA) following district integration workshops

Commune level:

·       a required minimum of public forums per year within each commune to update residents on all activities of the commune council and offer residents an opportunity to ask questions and provide feedback

·       official minutes taken at every commune council meeting and officially mandated consultative forum made widely available, not only in commune council offices

·       phased-in 50% participation by women on all commune committees

·       mechanisms to attract and enhance women’s participation at legally mandated consultative forums (such as first called to speak)

·       incorporation in commune development planning and plans of indicators relating to poverty reduction, equitable distribution of resources, gender, children, ethnic minorities and disabled persons

·       monitoring implementation of commune development plans based on the above indicators with results contained in the annual reports

·       both written and verbal information regarding commune council activities (including schedules of council meetings, minutes of council meetings and legally mandated consultative forums, council orders, monthly reports, committee reports, commune development plans, budgets, investment programs and annual reports) made widely available to citizens on a regular basis, not only at commune council offices

All stakeholders:

·       funding and programming for capacity building at all levels of government and grassroots civil society

·       coordination of funds and resources with a view to avoiding duplication and ensuring more equitable distribution throughout the country

·       funding to commune councils/the Commune Fund

·       funding made conditional on transparency and effective use of funds

·       funding made conditional on the incorporation of the indicators mentioned above to ensure that programs and policies target the poorest members of the community

·       funding for training programs be conditional on on-the-job training methodology and an equal number of positions filled by women with preference to ethnic minorities and disabled persons

·       creation of social funds to enable meaningful grassroots civil society participation

NGO roles and assistance

NGO roles and assistance, in addition to those listed immediately above, include:

·       training and empowerment of citizens and civil society organizations to independently advocate to and monitor local levels of government

·       organization of civil society forums at village and commune levels

·       dissemination of commune council information at the village level (perhaps establishing or monitoring village bulletin boards)

·       efforts to organize grassroots civil society representation at public forums at all levels of government

·       organization of VDC associations and VDC secretariats

·       organization of and participation in public forums and participation in district integrated workshops

·       partnering with commune councils on development projects (including sub-contracting arrangements)

·       monitoring of commune councils

·       assistance to commune councils and district and provincial authorities regarding governance and planning issues

(i)         Introduction

The poverty profile of Cambodia, based on 1999 data of the Ministry of Planning, indicates that Cambodia is a very poor country with GDP per capita estimated at only US$268 and with other non-income indicators of poverty comparing poorly with those of other countries in the region. It shows that an estimated 35.9% of the population is poor and the poverty rate is higher in the rural areas being up to 40%. People with disabilities are among the poorest of the poor in Cambodia. Recent World Bank estimates suggest they may account for as many as one in five of the world’s poorest. People with disabilities, especially women and children with disabilities, are among the most vulnerable deserving special attention because their standard of living falls far below the poverty line and their capacity for participating in economic activities can be limited by disability.

According to the Asian Development Bank, disability can be expected to increase in the future if the economic growth remains unbalanced and does not accommodate equity, environmental factors and social concerns. Causes due to an increase of violence and crime as well as to substance abuse, poor environment, traffic accidents and work related injuries.

 (ii)       Key Issues

A. Disability as Cause and Consequence of Poverty

Disability is both a cause and consequence of poverty. Eliminating poverty is unlikely to be achieved unless the rights and needs of people with disabilities are taken into account.

Disability is Cause of Poverty

·          Disability affects not only the individual, but also impacts on the family and the whole community. The cost of excluding people with disabilities from taking an active part in community life is high and has to be borne by society, particularly those who take on the burden of care. This exclusion often leads to losses in productivity and human potential.

·          Poverty is often thought of in purely monetary or income terms, as being above or below a “poverty line”. However, an extended definition of poverty includes; lack of opportunity, low capacities, low level of security and lack of empowerment. The UNDP’s Human Development Report glossary says, ”Human poverty is more than income poverty, more than a lack of what is necessary for material well-being. Human poverty is the denial of choices and opportunity most basic to human development- to lead a long, healthy, creative life and to enjoy a decent standard of living, freedom, dignity, self-esteem and respect of others.       

·          Thus, disability is an element of poverty itself. Disability interacts with low income to restrict the ability of the people with disabilities to attain basic adequate needs.

·          Disability may push some households that otherwise would be above an income-defined poverty line below it. Families may be forced into poverty when the prices to be paid for health and services are too high, when income earners lose substantial work due to disability.

·          Disability is itself an indicator of poverty in many dimensions and non-disability or good health is a protector of income or wealth. 

Poverty is Cause of Disability

·          Clearly, poverty in income terms is also a cause of disability. There is a negative cycle of causality between being poor and unable to afford better health care and other services contributing to keeping a person with disability poor. 

Role of the Sector in Poverty Reduction

·          However, this cycle can be broken with social integration. The key is to choose those, which are the most, cost effective. Such interventions will need multi-sectoral co-operation for inclusion of people with disabilities into mainstream activities while building the capacity of people with disabilities to earn an income.

·          Mainstreaming of people with disabilities can be a key and cost-effective element in reducing poverty. Therefore the Disability and Rehabilitation sector plays the most important role in promoting multi-sectoral collaboration for mainstreaming of people with disabilities in all activities in society. The efforts for ensuring equalisation of opportunities includes the following elements: legislation and policy; attitudinal changes and public awareness initiatives; access to rehabilitation services and assistive devices; promoting barrier free environments within the construction; education, training and employment; national co-ordination; and self-help organisations of people with disabilities and supporting government ministries and NGOs. Effective enforcement and implementation of these components will contribute to addressing the needs of people with disabilities.

B. Progress and Challenges

Progress has been achieved since the last meeting

·          Poverty Reduction is the primary development objective of the Royal Government of Cambodia (RGC). RGC has declared its commitment to making a concerted and sustained national effort to rid the scourge of poverty from Cambodia, so that all Cambodians can reap the benefits of economic growth and participate in the development process.

·          Investment for rural development programmes has been increased with a focus on the critical elements affecting the rural poor including rural roads, primary health care, sanitation, rural water supply, education and vocational training, community development, household farming system, rural credit, and improved information at village level.

·          The public spending on social sector in particular basic education and health services has been increased. The national budget for the year 2001 contained steps to improve for the social sector 33% of the total national budget for 2001.

·          The RGC is promoting and supporting the development of the draft Cambodian Disability Law. A final draft is being reviewed and revised based on inputs from key stakeholders including people with disabilities and will be submitted to relevant institution for adoption.

Issues remained to be addressed

·          Rural people including people with disabilities have less access to social services such as health, education and safe water. The sector is still institutionally weak, poorly resourced, and lacks operational capacity. Unfortunately, government human and financial resources are still limited thereby restricting the delivery of basic services to the rural people.

·          Assistance for people with disabilities, including mine victims, is mainly provided by NGOs. It is clear, however, that current programmes reach only a proportion of those needing assistance, leaving significant needs unmet. Overall co-ordination of assistance in this sector is still limited despite government, NGOs, and donor attempts to promote the work of DAC as a National Co-ordination body.

·          A persistent feature of national budgets is the weak relation between budget formulation and budget execution. Additional problems with actual public expenditure outlays include inadequate levels of funding reaching the local level and the leakage of funds in the public expenditure management system.

·          Hearing impaired and mental health services are in their infancy and inadequate often-lacking focus, manpower and funding. Although there are some services for the visually and hearing impaired and those with mental health needs it is estimated that many thousands of people with disabilities with these conditions have no access to services.

·          Further disability public awareness campaigns are needed to increase recognition and mainstreaming of people with disability in all socio-economic and cultural activities.

·          Government policy should be greatly improved mainly via prevention strategies in the early detection of disability, education of people about the need to seek treatment for serious illness (meningitis, septicaemia etc), antenatal care, good birthing care.

(iii)       Recommendations

In order to address these issues the following recommendations have been identified:

·          Disability and Rehabilitation should be one of the priority issues within the Poverty Reduction Strategy Paper of the RGC as well as Second Five-year Socio-economic Development Plan (SEDP II).

·          The government and donors should consider further increases and allocation of human and financial resources for the sector.

·          Donor countries and institutions should check their policies on disability to ensure that policies relating to disability are actually implemented. Where no policies exist new ones should be formulated. 

·          Government, donors, and service providers should insist that the needs of people with disabilities are considered as an integral part of all-planning programmes and projects and not viewed as a separate issue.

·           Additional and longer term funding should be further devoted to this sector so that comprehensive planning for the development and implementation of services can be created and implemented by government and NGOs in collaboration and co-operation.

·          Multi-sectoral collaboration and co-operation efforts are needed to ensure the full integration of people with disabilities. A national co-ordinating body should be further promoted and supported by governments and donors. This will require addressing the lack of access to education, skills training, land, and credit that seems to be acute within communities. So, mainstreaming of people with disabilities into the existing programmes and services means that their natural place as an integral part of society is recognised. 

·          The passage of the draft Cambodian Disability Law should be accelerated as part of the efforts to strengthen and protect the rights and interests of people with disabilities and to guarantee their full and equal participation in activities of community as other citizens.

(i)         Introduction

The Royal Government of Cambodia (RGC) embarked on a three-year plan to demobilize a total of 31,500 soldiers from the Royal Cambodian Armed Forces (RCAF).  The Council for Demobilization of Armed Forces (CDAF), the governmental body responsible for demobilization in Cambodia, began implementation with a pilot demobilization project in the provinces of Kampot, Kampong Thom, Banteay Meanchey and Battambang.  In the pilot project, 1,500 ex-combatant soldiers were demobilized between May and July 2000. 

During October 2001, the RGC and the CDAF Secretariat expanded their efforts and began full-scale demobilization of armed forces throughout the country.  From 15 October to 26 December, 2001, 15,000 ex-combatant soldiers were demobilized in ten provinces: Kampong Chhnang, Kampong Speu, Kampot, Kampong Cham, Kandal, Battambang, Banteay Meanchey, Siem Reap, Kampong Thom and Steung Treng. 

Upon invitation from the CDAF Secretariat, eight NGOs observed the general process of demobilization, conducted interviews with demobilized soldiers, and provided awareness-raising presentations on issues related to small arms and light weapons. 

Of the demobilized soldiers interviewed, 75% were happy to be demobilized from their military services and return to civilian life.  They did not want to be soldiers any longer.  Rather, they want to live with and support their families.  90% of demobilized soldiers supported demobilization since internal armed conflict has come to an end. 

(ii)        Identified Key Issues

Demobilization without Disarmament

·         No collection of issued weapons took place before demobilization.  Failure to collect and destroy weapons may cause communities to fear that ex-soldiers will pose a threat to their security.

·         It is questionable whether most soldiers had already turned in their issued and private weapons.  On one hand the majority (97%) claimed that all weapons had already been turned in, although this cannot be verified.  However, 67% of those interviewed believed that other soldiers still hid or kept weapons. 

·         60% of demobilized soldiers interviewed indicated that they did not clearly understand current weapons legislation, the legal consequences of illegal weapons use and possession, or the role of civilians in weapons reduction.  This group claimed that they lacked basic skills in solving problems peacefully.

Limited Role of NGO Monitoring

·   The CDAF Secretariat should be commended for inviting NGO representatives to participate in the monitoring of demobilization efforts.  The cooperation between government and civil society in demobilization is important, indicating an improvement in civic-military relations in Cambodia.

·        The role of NGOs, however, was limited to the demobilization discharge center.  NGOs were unable to observe the full demobilization and reinsertion process, before and after the stage in the discharge centers, thus limiting transparency and full public trust.

Concerns about Reintegration

·      The majority of demobilized soldiers interviewed (70%) are worried about their future living conditions.  65% were worried about their health when they return to live in their respective communities. 

·      24% of demobilized soldiers interviewed were worried about their security after becoming civilians.  They claim that not all illegal weapons were collected or confiscated from "bad persons", criminals, or others in their communities.  They expected greater fear of theft after collecting their support packages.  Some soldiers said that if personal weapons possession were permitted, they would still need and want guns to protect their families and property.  They did not have confidence in the ability of local authorities or security forces to provide adequate security and safety when they return to their communities.

(iii)       Recommendations for the RGC and the International Donor Community

Disarmament (in this case, the collection of weapons from ex-combatant soldiers) should be integrated into the demobilization process.

·         Demobilized soldiers should be given an opportunity to publicly hand in their issued and non-issued weapons before demobilization. By doing so, it would show the public that soldiers surrendered weapons before demobilization.  When interviewed, most demobilized soldiers supported weapons collection before demobilization.

·         Destroy one weapon for each soldier demobilized.  Weapons collection and destruction, either from demobilized soldiers and/or government stockpiles, is an important symbol.  It can help civilians trust that disarmament and demobilization will directly result in improved security for their communities. 

·         Continue raising the awareness of demobilized soldiers on small arms issues and peacebuilding.

Continue and expand the presence of NGOs in monitoring demobilization and reinsertion.

·         CDAF should provide NGOs with opportunities to monitor the first stage of demobilization: interviewing and selecting soldiers for demobilization.  Doing so would promote greater transparency in the process of demobilization, thus ensuring proper implementation of future demobilization efforts.

·         NGOs should be allowed to monitor the donation process of support packages to former demobilized soldiers. Involvement of NGOs in monitoring of donations can help to ensure that each demobilized soldier receives their chosen package, and that the quality of packages is as promised.

More efforts towards the reintegration of demobilized soldiers are needed.

·      Reintegration efforts should include vocational training for the long-term benefit of demobilized soldiers. Poverty reduction programs could focus on the communities of demobilized soldiers.  Support and assistance should especially be provided when they first return to their communities to ensure stable resettlement. 

·       Reintegration efforts should include activities that seek to limit discrimination against demobilized soldiers and promote peaceful conflict resolution in their local communities.  NGOs should be encouraged and supported to actively and creatively find ways to address this fear of demobilized soldiers.  Also, activities should be undertaken with local communities to address their fears and find ways to promote peacebuilding and peaceful conflict resolution.

(i)         Introduction

The Royal Government of Cambodia in its report for the 2002 CG states "Concerted efforts have been made to implement fiscal reform, including...re-orienting government spending to priority programs in agriculture, rural development, health and education; and improving administrative procedures to ensure that social sector targets are met."(Executive Summary, p.4)   Education for All forms the basis of the Ministry of Education, Youth and Sports’ (MoEYS) Education Sector Plan for 2001-2005.  This NGO report addresses the relationship between the statement of the Government and the reform platform of the Ministry of Education, Youth, and Sport.

The MoEYS' milestone documents, the Education Strategic Plan (ESP) and the Education Sector Support Program (ESSP), a five-year sectoral plan, present an integrated reform program, which is pro-poor and policy-led.  Formulated in collaboration with stakeholders, these documents provide a basis for addressing the constraints to achieving education for all, and specifically target marginalized groups (the poor, girls, disabled, ethnic minorities).  

The donor and NGO community involved in education applaud the policy, planning, and implementation progress made in the past few years by the Royal Government of Cambodia (RGC) and the MoEYS.  For example, between 1998/1999 and 2001/2002 there has been an absolute increase of 32% in primary enrollments, with relative growth favoring disadvantaged and newly opened areas.  Daunting challenges, however, remain in implementation.  Currently, 86% of primary age students are enrolled in school, but transition rates drop quickly, and by lower secondary school, only 17% of students enroll. Gender disparities remain across most levels of education and highlight the need for specific education strategies to enroll and retain girls.  Although the gender gap is narrowing at the primary level, the percentage of girls in school falls from 47% in grade 1 to 32% in grade 6.  Girls represent only about one- third of total enrollment in secondary schools, and 20% in post-secondary institutions.  In the education service, across teaching ranks (outside of primary level) and in administration, men represent approximately three-quarters of the work force. 

In the financial arena, the RGC allocated almost 16% of its national recurrent budget to education in 2001 and has increased the allocation to 18.2% in the current year.  The growth in the education share in both years is strongly commended.  Unfortunately, due to inadequacies in revenue policy and collection, the share still falls short of meeting needs.  The shortfall is compounded by the fact that the level of disbursement invariably tends to be well below the amounts allocated in the national budget.  This gap between promise and delivery seriously impedes the progress of educational reform. The lack of funds is perhaps most notable in low (and often delayed) teacher salaries but also in poor availability of adequate facilities and learning materials.  This lack of the minimal finances required results in a supplementary system of unofficial payment of school/teacher fees by parents, which excludes poor children because of their inability to pay.  

While the major attention of the MoEYS is on the provision of basic grade 1-9 education, there is inadequate emphasis on the provision of non-formal education and vocational training to the many children and youths whose learning needs have not been addressed by a formal education. By grade 5, the majority of the appropriate cohort of school-age population is outside the formal system and receives almost no resources from MoEYS.  Currently, 36% of Cambodians are illiterate and 27% are semi-literate.  Projecting these figures into the total population, this indicates that 4 million Cambodian youths and adults (15 years old and older) are basically illiterate.  These individuals lack the skills necessary to enter the modern work force and respond to the nation's development needs.

The low level of basic skills in the population has serious implications for Cambodia’s comparative advantage in global markets. The textile trade has rapidly grown to be worth over one billion dollars a year to Cambodia – i.e. well in excess of the aid budget. However emerging competition, as neighbors such as China and Vietnam are accorded the same tariff free trading preferences as Cambodia has enjoyed, may well result in Cambodia’s comparative disadvantage (in terms of a workforce relatively illiterate by comparison with those of her new competitors). It is possible that Cambodia may be about to pay the price for her low level of investment in basic education.

The NGO community fully endorses the policy and position of the RGC/MoEYS in its commitment to providing basic education for all Cambodian children, and remains a willing and dedicated partner in the educational reform process.  NGOs’ major infusion of resources and technical advice has made a significant contribution to the reconstruction of the education system.  The NGO community has entered into the NGO Education Partnership (NEP), with the encouragement of the MoEYS, as a major collaborative mechanism between NGOs, the RGC and MoEYS. 

 (ii)       Review of Key Issues in the 2001 CG Education Document

Coordination and Collaboration

·         participatory and inclusive approach

·         community participation

·         transparency, accountability and credibility

The NGO community is encouraged by the participatory approaches embedded in the ESP and ESSP.  Programs, such as the MoEYS program to give grants to local schools, the planned program for minority students in Ratanakiri, and the scholarship programs for needy students at the primary and secondary levels in Kompong Cham, represent examples of successful cooperation between government and local communities.  The MoEYS Priority Action Program (PAP) was designed primarily to guarantee and decentralize school funding.  It was successful in stimulating local government and school community planning. The first tranche was disbursed and mostly used for materials and supplies.  However, further payments were generally late, non-existent or didn't match planned allocations.  This undermined the credibility of MoEYS among education stakeholders.  However, the NGOs do affirm all these participatory efforts in education reform and urge continued and expanded efforts to engage stakeholders in education development.

Allocation of Resources

·         need for an effective implementation plan for PAP

·         need for adequate teacher salaries

By April of 2002, an average of 65% (increased from 40% for last year) of the 2001 PAP funds had been disbursed to schools and about 50% to tertiary education. None of the 2002 funds have been disbursed at this writing.  While NGOs are encouraged by budgeted increases in educational funding, they are extremely concerned by the patterns of non-disbursement and late disbursement of committed funds.   These lead to inefficiency in the system itself, poor progress towards educational goals, and disillusionment among stakeholders. In particular the whole notion of decentralization of expenditure planning to local levels is undermined when funds are not delivered on time and plans cannot be realized. The NGO community realizes that difficult issues of allocation and disbursement of funds exist between the MoEYS and the Ministry of Economy and Finance (MoEF), and that unplanned or competing priorities for money sometimes intervene in the delivery of funds to education.  However, NGOs feel strongly that a top priority of the RGC/MoEF should be increased cooperation among ministries to ensure that adequate funds are collected and allocated for education reform, and that they be disbursed in a transparent and timely schedule.  The NGOs also recommend harnessing and regulating the unofficial but often significant fees collected by teachers, so that they can be transparently and effectively used to pay teachers and to provide services for disadvantaged children. Lastly, NGOs would like to see the MoEYS implement some actual pilot programs which would give teachers salary incentives for extra duties, supplementary programs, split schedules, etc. 

The MoEYS 5-year Education Sector Plan (ESP)

·         Cluster School System

·         pre-school education (hereafter understood as Early Childhood Care and Development (ECCD)

·         gender disparities

·         special education (hereafter understood as Children with Special Educational Needs – disabled, ethnic, street/working children, refugees, etc.)

·         HIV/AIDS

·         quality education

The NGO community feels that these issues are represented in the ESP but would like to see better coordination of cross-cutting issues to ensure the needs of marginalized children are considered in all mainstream MoEYS planning.  Policy implementation strategies are not clear.  NGOs feel there needs to be a concerted effort towards actual implementation of quality programs to address these issues and suggest that MoEYS looks at programs that NGOs already have in progress to get implementation ideas.  There are many good examples of programs that are being done in areas such as promotion of girls and ethnic minorities, participation in community-based ECCD, and HIV/AIDS. At this time however, there has been no focus study on the number of individuals in the teaching service that are infected by HIV/AIDS, a study requested in 2001. 

The quality of education remains a big concern.  The focus of education improvement programs should emphasize learners as the subject of policy reforms, rather than continuing to concentrate solely on institution building and quantitative indicators.  Qualitative indicators are needed of student learning, textbook adequacy, teacher effectiveness and local management capacity. 

(iii)       Recommendations

·         The NGO community urges the RGC and MoEF to focus their report for this CG on the financial distribution of committed funds for the implementation of the education reform program to date and future commitments to the sector.  Without more money for education and a transparent, accountable allocation and disbursement system of funding, the shortfall in financial resources for education defeats the purpose of planning for future reform.  Donors, government and NGOs all need to continue efforts toward financial transparency and accountability.  

·         The NGO community endorses the government’s commitment to Education for All guidelines in its efforts to provide a grade 1-9 education for all Cambodian children, especially to the target populations of the poor, girls, disabled and ethnic minorities.  There are many useful examples of NGO programs in areas which can assist the MoEYS to develop implementation strategies of these policies.

·         The NGO community urges more emphasis on non-formal education in its efforts to reduce poverty, citing the incontestable links between literacy and poverty.  This emphasis should be evident across all levels of policy and planning.  The non-formal sector should stand alone as a separate, valuable entity in the education reform process and have resources allocated to it that do not detract from the formal sector.  The NGOs again cite successful NGO programs that can be used as models by the MoEYS.   

·         The NGO community group continues to urge the decentralization of school governance and education programming across all levels particularly down to the local schools and their communities, so the education system belongs to and is influenced by all stakeholders.  The NGO community suggests that MoEYS, with the help of donors and NGOs, target local institutions and populations as recipients of money through transparent disbursement arrangements.  NGOs feel that continuation and/or expansion of direct grant support to locally managed programs such as the ministry’s EQIP program, and recurrent grants to school for supplies introduced by the PAP, are extremely beneficial to the reform program.  

(i)         Introduction

The recently completed commune council election was an important step towards the decentralization of government authority with its aim of giving local communities greater space in decision making.  The 2002 commune council election was marked by fewer technical irregularities compared to earlier elections. Yet the election climate was still characterized by violence and political intimidation, and serious concerns remain in this area.  Key problems were the unresolved partisanship of election institutions, restrictions on efforts to inform voters of their rights and election procedures, lack of will to resolve election violations, and serious obstacles and disparities in media access during the election campaign.

The commune elections have resulted in an increased number of women in commune council seats, compared with the lack of women in the previous commune structure. However, there is still an insufficient number of women in the communes compared to the proportion of women in society.

The outcome of the 2002 elections may also embolden hardliners to persist with various coercive tactics to garner votes in future elections. Despite many problems, particularly regarding political killings and intimidation, Cambodia has seen some significant gains after the two national assembly and commune council elections, and these offer hope for the future of democracy.  The next step on this challenging path will come with the holding of another National Assembly election in 2003.  This election has the potential to bring new benefits to people and to consolidate the role of civil society.  Much of this will depend on effective election reforms.  This will be largely influenced by the quality of the election process and the extent to which voters are free and informed to elect the candidates of their choice in order to improve accountability to the electorate.

The recommendations below present the views of NGOs collected through a series of public consultations, the comments of Election Monitoring Groups (EMOs), provincial networks and the recent discussion of coalitions of election monitoring groups and other NGOs related to human/women rights and democracy. Most of the recommendations from previous statements to the CG meeting 2000 and 2001 are still valid and put forward, while the following recommendations are the main priorities that would improve the election reforms in significant ways: (1) The NEC should be composed of five members who would maintain a neutral, independent and competent body, (2) The electoral system should be mixed so that it may encourage candidates from a non-political party background, (3) A quota of at least 30% for women in candidate lists, (4) strengthening the competence and power of the tribunal to deal with electoral infractions, (5) the role of the NEC to ensure equitable access to electronic media and an effective election campaign and voter education.

(ii)        Key Issues & Recommendations

I.  Electoral Body

The current mandate of the National Election Committee (NEC) is coming to an end and this offers opportunity for a much-needed reform at this body. The NEC held a partisan composition and had no credibility, although article 11 and 12 of chapter 3 states that "the National Assembly Election laws shall be administered by the National Election Committee, (NEC). The NEC shall be an independent and neutral body in carrying out its tasks/competence". Despite this, the selection of the NEC members was conducted without a clear definition of such vital criteria as "neutrality".

Therefore, the mode of selection was neither professional nor competent, but was the basis of a political compromise with all of the members belonging to political parties.

The post-1998 National Assembly election was overshadowed by a regretful tragedy where innocent people were killed. This tragedy was caused by election-related conflicts not being dealt with in a neutral and fair manner, such as the rejection to recount ballots in several polling stations. In both the 1998 National Assembly election and 2002 commune council election, vote buying, threats and intimidation were not tackled because the NEC was politically biased. During the commune council election, in particular, the NEC was partial and it did not take any reasonable measure to promote equitable media access for political parties participating in the election to broadcast their policies and political platforms.

The above mentioned concerns were due to the lack of a legal framework.  Thus, NGOs propose the following recommendations:

1- Amend chapter 3 of the National Assembly election law, election administration, which states the elaboration of the NEC.

-      Component: five members (no political representative and they should all be public figures)

-      Criteria: independent, neutral, non-partisan, competent and well known.

i.      Not a member of a political party.

ii.    Resigned from political party at least 9 months prior to the application date.

iii.  Not allowed to have a role in a political party nor any position in the Royal Government, or key national institutions within 3 years after the end of the term.

iv.   Holds an advanced education degree, and/or long term experience as a judge, honest  (No criminal record, no human rights abuses and so forth).

v.     Female candidates are encouraged to apply and indeed have priority.

-      Nomination procedure: Establish one recruitment committee which consists of the following components: representatives of political parties having National Assembly seats, non-governmental organizations and the Cambodian Bar Association.

-      Recruited candidates names should be released to the public in order to get recommendation from the general public before being submitted to the National Assembly for approval.

-      Candidates recruited by the committee will ask for recommendation from the general public before being approved by two third votes, the National Assembly (on time for all candidates or individually).

-      Members of the electoral body should have the immunity or privilege as National Assembly members.

-      The law should ensure the independence and neutrality of the electoral body members

2- Strengthen the function and competence of the NEC members to ensure their independence and neutrality. The law applies to the NEC, thus if they violate any of the above mentioned criteria, they have to be aware of the consequences. In addition, there needs to be a provision that guarantees the state's obligation not to interfere with NEC.

II. Electoral System: Right of Independent Groups to Contest as Candidates to Improve Accountability

The proportional system of the 1998 National Assembly election, which states that candidates must be appointed solely by political parties, does not encourage leaders to be accountable to their constituencies. This system allows political party leaders to have political power to decide the nomination of the candidates.

Some elected representatives were threatened to be expelled from their position as representatives of the political parties if they did not work towards the parties' interests. If they were accused of committing misconduct against political party lines they would likewise be dismissed.

Therefore, the first step for the upcoming 2003 National Assembly elections is to establish a system which has acceptable principles to increase the political rights to stand in the elections and to increase the accountability of elected representatives to the citizens. An amendment to the law for National Elections should stipulate a provision for extending opportunities for non-partisan independent candidates as per the following recommendations: 

-          Electoral system: Proportional system with independent group

-          Political party and non-political party candidates can contest for the election in all constituencies.

-          For the constituencies that have more than 9 seats, the seats reserved for non-political party candidates list is one third of all seats in these constituencies.

-          Non-political party candidates cannot form the government if they are elected.

III. Equitable Gender in Election Presentation (Participation of Women as Representatives)

As a result of the commune elections, there are more than 8% of female commune councilors. However, this low percentage still falls short of our expectations and does not represent the proportion of women in Cambodia (51%).

We urge the Royal Government and all political parties that are committed to improving the situation of women in Cambodia to encourage women to stand as female candidates and to approve the following proposal.

The proposal is based on a quota of at least 30% of female candidates on both political party and non-political party candidates' lists. Female candidate’s names should alternate with male candidate’s names starting from the top of the candidate list. This quota should also be stated in the electoral legal framework or the policy in order to provide women a more effective opportunity to take part in social and political affairs.

IV.  The Enforcement of Electoral Infraction Hearing Process

To make the elections more just and fair the mechanisms to punish electoral law violators, for example in relation to the cases of vote buying and intimidation, must be addressed efficiently and coherently. So far, NEC has failed to carry out serious investigations and verdicts against perpetrators of such cases of intimidation.  Furthermore, the electoral infraction procedure was not clarified between the NEC and the court, so the two groups interpreted the law to suit their interests. For instance, the NEC issued a directive guideline to its lower staff to organize a hearing body for electoral infractions; but, in reality, this was under jurisdiction of the courts. The police forces had a serious lack of understanding regarding the electoral infraction procedure and penalties. The following recommendations are aimed at improving the mechanism:

-          Disseminate information and train court officials, policemen, and the general public on the electoral infractions.

-          Establish hearing bodies within the existing judicial institution to sentence electoral infractions.

-          Investigation: Police structures at all levels should coordinate with polling staff of the sub-committee or department of investigation of the NEC.  

V. Broadcasting Media Access and Debates

There were no improvements regarding electronic media access to allow the effective election campaigns of the political parties. Radio and television is where most of the population acquires its news and statements of political development.  Yet, confirming the trend observed during the election process, the ruling party was still the main political actor covered in the electronic media channels monitored, leaving very limited time for the political parties competing for elections.

The broadcasting media did not provide equal access to the political parties. Yet, article 132 of the election campaign chapter encourages NEC to organize comprehensive programs whereby state-run radios, newspapers, and televisions broadcast, free of charge, all news requested by NEC in order to disseminate the progress of the election and the election education. In addition, chapter 8 of NEC's regulation for election campaign affirms that political parties may use private radios and TVs. The chapter also suggests NEC to meet the managing directors of media to discuss and take measures to use its media.

The political party campaigns seemed to be more like advertisements than election campaigns. The campaigns were not very helpful to the general public. The election campaign should be a process to inform the voters about the content of each political party's goals and commitments. Unfortunately, broadcasting political party debates via television and radio was not permitted by the NEC regulations. Therefore, the right of the people to be aware of the political party debates through television and radio was not fulfilled.

During the electoral campaign, the citizens could only hear the voices of each political party from the streets. They were not aware of the political parties' promises or platforms.  According to a COMFREL survey, 88% of the participants in 1998 election campaigns did not remember the promises of the political parties.

The electoral campaign is not meaningful for the citizens, most of them do not understand what (why or how) the political parties would do if they won the election.

To improve the election campaign, recommendations for improving the election laws and NEC regulations should stipulate the clear role of NEC to ensure the equal access of political parties to electronic media.  The government should expand airtime of TV and radio for the NEC and NGOs to run voter education and political party campaigns. The NEC should take proactive measures to ensure the candidates debate on their political platforms and to broadcast their debates.
 

(i)         Introduction

The fishery sector of Cambodia is exceptionally productive and has great potential to contribute to food security and poverty alleviation. In Cambodia’s “pro-poor” Trade Strategy, fisheries have been envisaged as one of the sectors whose export potential should be enhanced.  Fish and access to fisheries are vital to the Cambodian poor. The fair and equitable distribution of these resources, and their effective long-term conservation, are vital to the food security and livelihoods of rural Cambodians.

The government is reforming the fisheries sector, with the intention of improving access of the poor to fisheries in order to combat poverty and of improving the governance of the fisheries sector. The release of 56% of freshwater fishing ground for communities to establish community fisheries has been supported by local communities and international donors and has partly reduced the escalating level of conflicts and illegal fishing in many fishing areas. The Subdecree on Community Fisheries was drafted in the early stages of the fisheries reform to support the establishment of community fisheries, but is still not complete.  The same applies for the new draft of the Fisheries Law.  Recently, the Asian Development Bank (ADB) has proposed providing a major loan to the government for community fisheries development.

Non-Governmental Organizations (NGOs) working in Cambodia applaud and fully support the action taken by the Royal Government of Cambodia. NGOs have been providing support to the establishment of community fisheries and have advocated to donors and government the involvement of local community representatives in the policy discussions.

However, there have been some unforeseen problems that are still occurring, undermining the goal of poverty alleviation and equitable sharing of benefits.

(ii)        Key Issues

1. Governance Issues

The current fisheries management suffers from a number of problems that are clearly related to governance issues. These include corruption, low financial or other direct economic return, no clear new laws, poor communication and cooperation between government agencies, no clear penalties or mechanism for enforcement and lack of community involvement.

Corruption has been widespread throughout the fisheries sector, which is a result of low salaries for government employees, poor management and a weak legal system. The process by which people bid for fishing lots is not transparent. It involves many transactions that raise the cost for the fishing lots without also raising the real benefit that reaches the national government.

Failure to engage communities in conserving resources stems at least in part from the grossly inequitable distribution of the economic and social benefits of the fisheries. There is no incentive for the poorest to desist from damaging actions, as they have few alternatives and no stake in the resource protection.

2.  Fisheries Legislations

Following the distribution of an initial draft of the Community Fisheries Sub-decree, some consultation was undertaken with local fishing communities.  Following that there have been substantial and fundamental changes made to the draft sub-decree without public consultation. As result, local communities continue to feel excluded from any meaningful process of consultation regarding the community fisheries sub-decree. Without any sense of involvement and stake in decision-making, it is believed that conflicts and unsustainable and illegal fishing practices will continue and that the gap between laws and their implementation will remain.

The current Fishery Law is considered inadequate and unenforceable.  The World Bank helped the Department of Fisheries produce a draft Fisheries Law in 1999.  This draft is currently being reviewed and revised within the Department of Fisheries. The donor community and concerned stakeholders have not yet had a chance to see or comment on the draft law and are awaiting the opportunity.

3. The release of fishing lots to local communities

The government has released 56% of the commercial fishing lots to local communities. While this is welcome, there was no public consultation nor government review to determine which areas should be released in order to reap the greatest benefit for the poorest rural communities. The areas were released not on the basis of local need but on the basis of their value, as determined by the auction system.  It was largely the lots valued at less than 30 million Riels that were handed back to communities. By definition, these are some of the least productive areas and include areas that are land – rather than water – for much of the year. More specifically, efforts by local communities to conserve fish stocks in these areas are undermined, as during the dry season fish migrate to the deeper areas within the boundaries of the remaining commercial lots, thus creating a sense in some areas that communities are working, at least in part, for the benefit of lot owners rather than for their own welfare.  Some communities also have responsibility for managing areas that are distant from the local community.  This sometimes entails them having to cross guarded fishing lots in order to reach the community areas.

The very fast pace in which the release of the fishing lots happened last year made it impossible to implement community fisheries effectively in the new community areas, as the necessary information and technical knowledge simply did not exist.  We should learn from this experience and ensure that there is the necessary support and capacity for effective community participation in the future.  This will require action now; leaving it until the sub-decree or other laws are in place will create further confusion and conflicts.

Poor cooperation between the Department of Fisheries and local authorities has turned out to be a barrier for establishing community fisheries. Some community fisheries have not been recognized by local authorities after they were established, presumably because the local authorities fear loss of income from the fisheries and are therefore actively working against community fisheries initiatives. Military and police elements are often involved in the protection of illegal fishing operations.

Over a short period of time, a large number of community fisheries have been established regardless of the quality. To some extent, these communities lack power over the community areas. Illegal fishing activities still happen in these areas and communities have no legal right to stop or arrest them.

4. Continuing Conflicts and Illegal Fishing

The current fisheries policy reforms were made partly in response to the increase of conflicts in the fisheries sector. Despite the release of the fishing grounds for community use, these conflicts are not over.  Illegal fishing is still a major issue, is widespread, and is depriving poor fishers of an essential resource. In fact, illegal fishing activities increased right after the reforms began and especially during the temporary removal of fisheries officials from the fishing grounds.

(iii)       Recommendations

·         We are requesting all interested parties to encourage the Royal Government of Cambodia to publish a clear, time-bound process for full consultation on the fisheries legislation with local communities and civil society, with the input and support of donors.

·         Conduct an urgent review of the impact of recent reforms on rural livelihoods and the sustainability of the fisheries.

·         Donors should support projects to assist local communities to participate effectively in community fisheries, highlighting both rights and responsibilities.

·         As needed, efforts should be made to provide support to build the capacity of the Department of Fisheries to facilitate the organization of community fisheries.

(i)         Introduction

Cambodia's forests continue to disappear at an alarming rate, with serious impacts on livelihoods of local communities. Anarchic logging continues to prevail, concessionaires continue to ignore guidelines for sustainable forest management, and forest areas continue to be converted permanently to plantations.

This is despite strong leadership and commitment to forestry reform at the highest level. During the past year, the Prime Minister has, in televised speeches, 1) called for stopping the cutting of trees which villagers are tapping for the resin, 2) called for restrictions on transporting of logs, 3) called for cancellation of concessions which don't follow the rules, 4) called for the organization of community forests and greater restrictions on concessionaires, 5) recognized the tragedy in terms of forest loss in the recent past and committed the government to protecting Cambodia's forests and making forestry reform a centerpiece of the government, 6) announced a ban on logging and the need to increase the area of protected areas, 7) announced that cancelled concessions would be put under the jurisdiction of the Ministry of Environment, 8) announced that any concessionaire who logged after the ban took effect would be cancelled, 9) called for areas to be excised from concessions for community use, and 10) warned government officials not to get involved in illegal logging.

We commend the government for banning sales of wildlife in Phnom Penh restaurants, requiring all concessionaires to complete Environmental and Social Impact Assessments (ESIAs) and sustainable forest management plans before being authorized to cut again, and taking steps to develop a national forest policy.

The importance of forests in Cambodia are increasingly recognized. For example, the floods in 2001 were estimated to have cost the country significantly more than what was earned from all logging concessions. The importance of forests to communities has been given increased attention, not least in the development of the Sub-Decree on Community Forestry and involvement of communities in its drafting. There is a greater recognition of the critical role of forests in poverty reduction.

We appreciate the Department of Forestry and Wildlife's welcoming of NGOs to become more involved in forestry issues, particularly through the development of Community Forests.

(ii)        Key Issues

1.  Forest concessions: Significant policy changes have been made in the past year with regards to logging concessions. These include: the ban on transporting logs on which royalties have not yet been paid; the ban on logging until ESIAs and management plans have been approved (starting 1 January 2002), the recognition that some concessions will have to be cancelled and that if they are those areas will become protected areas under the jurisdiction of the Ministry of Environment; and the decision to cut parts out of concessions for the development of community forests.

However, there is a growing recognition that the concession system will not work in Cambodia, just as it has not worked in other countries. Many forest areas given to concessionaires are not suitable for this kind of commercial timber extraction and should never have been allowed. Despite numerous documented illegal activities on the part of concessionaires during the past year, concessionaires have not faced the consequences of their actions. Over the past year, concessionaires have continued to cut many more trees than they are allowed to cut in a given area, have allowed anarchic logging in their concessions, and have cut trees tapped by villagers for resin.  This has happened despite the prohibition by the 1988 Forestry Law which is in force and an order by the Prime Minister dated 18 April 2001 prohibiting the felling of resin trees. When Global Witness reported on illegal felling of resin trees, forestry officials attempted to sue them and no one was ever held accountable despite clear evidence of wrong-doing. A number of concessionaires are extremely well-connected, the most so being Pheapimex which does not bother to follow even the most basic guidelines for concession management and whose operations are more like organized anarchic logging.

Extreme negative impacts by concessionaires on communities continued in the past year, in addition to the cutting of resin trees mentioned above. Checkpoints have continued to restrict access by outsiders to villages within some concessions, and concessionaires have continued to control community access to roads which they built over existing community roads. Paramilitary units, Royal Cambodian Armed Forces, and Military Police units continue to provide protection for concessions and harass villagers. The cutting of parts of concessions to give back to communities, planned for the end of 2001, has not yet been implemented.

Despite extremely strong words by the Prime Minister, there is evidence of concessionaires continuing to cut trees after the January 1 ban, as yet with no obvious consequences.

2.  Land concessions: Though the Government has made strong statements against logging concessions, disturbingly it has promoted the conversion of forest lands to agricultural plantations. The most notable was the official opening of the Tumring Rubber Plantation in Kompong Thom, with 4356 Ha (including large areas of nearly pristine forest) to be planted as an industrial rubber plantation. The logging companies from whose concessions the area was excised have been invited back in to harvest the timber in the area, and the devastation of the forest has been horrendous. Large areas of primary forest have been reduced to bare soil. Within weeks hundreds of resin trees were cut, despite the current forestry law and the Prime Minister's prohibition. The impact on the livelihoods of local villagers, who in the past have depended largely on forest products, has been severe. The government has announced a plan to increase the area of rubber plantations from the current 70,000 Ha to 350,000 Ha, a feat which can no doubt be achieved only by clear-cutting other areas of intact forest. At the same time, the rubber industry in general is suffering from extremely low rubber prices.

A solution to the Pheapimex land concession covering 300,000 Ha in Pursat and Kompong Chhnang, including large areas of forest, has yet to be announced despite strong community protestations about the negative impacts the concession will have on their livelihoods.

In Stung Treng, the Flour Company has begun clearing dense forest in a 7,000 Ha land concession. Another land concession, the Green Sea concession in Stung Treng, began getting underway this year. The area of the proposed concession is located on former forest concession land; and according to the Sub-Decree on the Management of Forest Concessions, it must be preserved as natural forest and should not be granted as a concession to any other company. At 110,128 Ha, the concession is also much larger than the 10,000 Ha allowed by the newly approved Land Law.

It is our understanding that the new Land Law authorizes land concessions only on state private land, which forest land would not constitute. If the granting of land concessions in areas taken out of concession or other forest land continues, Cambodia's forests will disappear permanently at a rate never before seen in the country. The impacts on livelihoods will also be irreversible.

3.  Anarchic logging: In 1999, the extent of anarchic logging was drastically reduced. Regular reports of crackdowns on illegal logging indicate that the government continues to tackle this problem. However, efforts are nowhere up to the task, and in many areas where illegal activities are stopped, they soon start up again.

Anarchic logging continues in most forested areas of the country, including within concessions and protected areas, and appear to have increased in comparison to the previous year. The National Assembly has raised questions about extensive anarchic logging in the Phnom Kulen National Park. Royal Cambodian Armed Forces and Military Police units are the driving force behind most medium-scale anarchic logging activities in the country's forests.

4.  Clearing of land: Along with the granting of land concessions, extensive clearing of land for private ownership is a worrisome trend which leads to the permanent loss of forest cover. It is of particular concern that the Government has called for setting aside of more forest lands for clearing by people who need the land. We fear that areas excised from concessions will be announced as areas for conversion to farmland. Illegal clearing of forest land takes place in almost all protected areas, in many instances with approval of the local and provincial authorities. During 2001, cases of land-grabbing, often organized by RCAF elements, increased sharply.

5.  Marketing of Non-Timber Forest Products (NTFPs): We congratulate the government for successfully abolishing monopolies on the transport of resin in some provinces, leading to higher prices for local communities which depend on resin-tapping for a large fraction of their household incomes. However, obstacles to the transport and sale of non-timber forest products continue to pose a significant problem for forest-dependent communities. The transport of resin (a product whose production does not harm the forest) continues to be subject to a range of controls and fees which work to keep the price low for producers.  Despite strong international demand for it, export continues to be informal and secretive.  The Department of Forestry and Wildlife recently reported that they have confiscated 45 tonnes of liquid resin (chor teuk) so far this year.

6.  Forestry Law and Community Forestry (CF) sub-Decree: The Forestry Law remains where it was a year ago, at the National Assembly. The latest draft still contains a number of controversial sections, mostly related to the overly dominating role given to the Ministry of Agriculture, Forestry, and Fisheries and its centralized approach. Significant progress has been made on the Sub-Decree on Community Forestry, and the government is to be commended for allowing a high level of participation by forest-dependent communities and other stakeholders across the country in its drafting, culminating in a face-to-face meeting between community representatives and the Department of Forestry. In many ways the Sub-Decree is a strong piece of legislation that can help protect communities' rights and livelihoods.

Though generally good, the sub-decree has a number of weaknesses which community representatives pointed out during the consultation. A number of these relate to constraints imposed by the draft Forestry Law, such as a 15 year term for community forest agreements, the requirement for management plans for all community forests, the requirement of licenses and fees for products coming from community forests, inadequate protection of rights to carry out traditional swidden agriculture, and the need for the Minister of Agriculture to authorize any area to be designated as community forest.

7.  Land Use Planning: The absence of clear demarcation of permanent forest estate, and the lack of coordinated land use planning by different governmental and non-governmental stakeholders, increases the pace of deforestation in the country. New road building projects that commenced in 2001 in Koh Kong, Pursat, Mondulkiri, and Preah Vihear provinces will pose a great risk to protected forest areas if not carefully integrated into a regional land management system.  

(iii)       Recommendations

·       The Royal Government should recognize that the concession system is not working and that the Government does not have the capacity to ensure that concessionaires follow the rules. Instead of continuing to fund efforts to reform the concession system, donors should help the Government find a way out of it, in particular to fund efforts to increase communities' role in managing forests and to support the management of new protected areas.

·       To the extent that the current concession system continues, the development of sustainable management plans, including ESIAs, has to be made transparent and stakeholder participation needs to be increased to fulfill the legal requirements.

·       The Royal Government should finalize the official declaration of the Central Cardamom Mountains as a protected area by Royal Decree and pursue World Natural Heritage Site listing. Donors should provide support to management of the protected area.

·       The Government should impose a ban on land concessions in forest areas, and existing contracts should be cancelled.

·       A greater effort should be made to stop anarchic logging and communities should be empowered to play a greater role in helping with this.

·       An appeal from the highest level should be made to stop all clearing of land (with the exception of traditional swidden) and a rational policy for granting social concessions for non-forested lands should be developed.

·       The system of fees and permits on NTFPs should be revised within the context of the existing law, and efforts made to help market those NTFPs (such as resin) which can be harvested without negatively impacting on the forest.

·       Constraints in the draft Forestry Law which hamper the development of the Sub-Decree on Community Forestry should be removed. The internal review of the Sub-Decree within the Department of Forestry and Wildlife and the Ministry of Agriculture, Forestry, and Fisheries, should continue in the spirit of transparency and consultation in which the sub-decree was drafted, recognizing that the draft of 8 February, 2002 reflects the interests of a wide range of stakeholders. At the same time, outstanding weaknesses in the Sub-Decree mentioned above should addressed. Both pieces of legislation should be passed as soon as possible.

·       The international donor community should provide greater support to efforts to increase transparency within the forestry sector.
 

(i)         Introduction

People are the real wealth of a nation, thus men, women and children must be the center of attention.  In Cambodia, women comprise more than fifty percent of the total population and are commonly recognized as suffering many disadvantages compared to men. If development is to be by people and for people, it must satisfy everyone’s needs and provide opportunities for all.  It should include access to income and employment opportunities, education and health and a clean and safe physical environment. It should involve all aspects of life, so that people can express themselves freely and creatively.

Although Cambodia’s Interim Poverty Reduction Strategy Paper (I-PRSP) contains many references to gender equality and closing the gender gap, it does not have a clear policy articulation on how women can be integrated into development efforts and can contribute to poverty reduction.  Moreover, although problems such as violence against women and trafficking are recognized in the I-PRSP, it does not provide concrete solutions in terms of legislation or relevant policy measures to address these problems.  Further policy development is needed in these areas.

Many NGOs and others civil society groups in Cambodia have been raising awareness on gender inequality, discrimination and domestic violence against women in the society, so as to enable women to help themselves to obtain their rights.  Below are some of the concerns raised by NGOs working on these issues.

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(ii)        Key Issues

Health

Maternal and infant mortality rates in Cambodia remain among the highest in the world.  Lack of access to safe family planning makes abortion a significant cause of maternal mortality. Other major causes are hemorrhage infection, toxemia and obstructed labor. All these problems could be dealt with if only better medical and prenatal care was available.  A national survey reported that most Cambodian women, 84% of them, delivered their children at their home, with the assistance of traditional birth attendants.  Harmful practices are carried out throughout the country. Only 38% of pregnant women have received some form of hospital care before giving birth. Poverty forces poor Cambodian women to work hard in agriculture fields immediately after delivery their babies, sometimes leading to sickness and death. The cost of health care and education is too high for many women, often causing families to sell their land.

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Education

In the academic year 2000-2001, the net enrolment ratio for girls in primary school was 80.7%, falling to 13.7% in lower secondary school, and further to 5.4% in upper secondary school.  The removal of school enrolment fees has encouraged parents to send their children to school.  However, there is still a high dropout rate for girls.  This is most often caused by poverty and the traditional responsibilities of girls within the family.  See the Education section of the NGO Statement for more information on education and gender.

Violence against Women

The stress of poverty on families is experienced most powerfully by women through factors such as domestic violence, husband or father’s drunkenness and desertion. A national survey in 2000 showed that one-quarter of ever-married women had suffered physical and sexual abuses from their husbands.

The passage of the draft law on Domestic Violence is so far too slow, while the rate of domestic violence appears to be increasing. Perpetrators of sexual exploitation, trafficking and rape on women and children, continue to escape from punishment of the law, due to corruption, lack of legal protection, and ignorance of rights.

Economy

Any examination of the issue of women’s rights in Cambodia needs to look at women in the context of current macroeconomic policies.  Rapid liberalisation is driving people from their land and from subsistence agriculture.  Young women bare the brunt of these policies, and are forced to migrate to become garment factory workers, commercial sex workers or beggars.

Much of the work that women do is invisible, despite its obvious productive and social worth. The reason is that women are heavily involved in small-scale agriculture, the informal sector and household activities. Women’s work, especially their household work, often is unpaid. In Cambodia, the majority of women are farmers working in rice fields, but they cannot survive on this livelihood alone.  Families are dependent on access to natural resources, but fishing lots and forestry concessions limit access to these resources.

The aid industry’s proscribed solution to poverty is credit, but credit schemes are rarely able to help the very poor and can sometimes drag families into debt.  It is the women who are left with the impossible task of managing the family’s finances.

About 180,000 young women are serving in 200 factories where there are severe working and living conditions. Most employers do not respect the labour laws. There are no health-care clinics or child-care centres in such the factories, as required by the labour laws. Pregnant women do not have any chance to work in the factories. Disabled women who are skilled have few opportunities to be employed. There is only one out of the 200 factories offering jobs to disabled women.

Leadership           

The small number of women working in the civil service and in decision-making positions is directly related to lower educational attainment, low self-confidence and lack of support from the family and society. There are only about 15,000 (8%) women among 169,000 public servants. There is some evidence that women with capacity are usually not allowed to use their skills, but are only appointed to administrative or non-decision making positions within their ministry. Only 10% of National Assembly seats and 13% of Senate seats are held by women.  This year, for the first time, 8% of elected commune council members are women. However, this number is still low compared to their representation in the total population (51%). The electoral procedures and proportional systems do not offer women the opportunity to participate as independent candidates. The experience of recent elections shows that although each political party expressed their attention on women's participation, few women's names were listed from the first to the third places within the candidate lists.

(iii)             Recommendations

·       The draft law on domestic violence should be submitted to the National Assembly and ratified as soon as possible.  The Law on Marriage and Family should be reviewed for its relevance to present needs.

·       Increase political wills to implement the law on trafficking and improve transparency within the legal and police systems and also reduce opportunities for bribery and corruption.

·       Implementation of the Labor Law needs constant monitoring in order to ensure fair and equitable conditions of work and proper payment of wages in all sectors of the economy.

·       The government should encourage the preparation of Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) report on time to show its willingness to eliminate discrimination against women.  The CEDAW encourages full implementation of measures to ensure that the rights to employment, rights to politics and public life, equal rights before the law, and rights to social economics are truly protected.

·       Ensure that the increase of the national budget allocation for education and health leads to further development of these sectors, with special attention to the needs of women. The education development should be focused on dormitories and scholarships for female students from secondary schools in order to encourage female students not to drop out of school.

·       Increase the availability of reproductive health services. The Ministry of Health is urged to expand quality reproductive health services with good counseling throughout the country as soon as possible and include basic emergency obstetric care.

·       The low value attached to women’s work requires a fundamental remedy: if women’s work were more fully accounted for, it would become clear how many women contribute to development. To do that requires much more gender specific data on development. There is a need to redesign national census and data collection, particularly regarding agricultural surveys.

(i)         Introduction

The concept of good governance is broadly characterized by transparency, responsibility, public participation, adherence to the rule of law and cooperation between government and civil society.  The Royal Government of Cambodia (RGC) views good governance as an essential prerequisite to sustainable socio-economic development and social justice. Corruption is a key symptom of weak governance and studies show that corruption is widespread in Cambodian society with the judiciary, customs, tax authorities, health sector, education, road services and police the worst affected areas.

The problems of good governance and corruption were addressed in the Governance Action Plan, April 2001, prepared by the Council for Administrative Reform.  The RGC recognized that corruption in the public sector was a major constraint for sustainable development and listed important steps to address the issue and a plan for future measures.  The RGC’s draft ‘Second Five Year Socioeconomic Development Plan, 2001-2005’, and the Interim Poverty Reduction Strategy Paper (IPRSP) states that an improvement in the governance environment can be realized through effective implementation of the Governance Action Plan.

For several years, a major priority of the NGOs has been to push for anti-corruption legislation to be adopted and for the existing provisions relating to corruption and bribery to be applied.  Other NGO contributions have been to initiate and co-organize a National Conference and successive workshops to build a National Coalition for Transparency and in conjunction with the Ministry of Education, Youth and Sports, to develop a school curriculum material on transparency and accountability.

(ii)        Key Issues

The foundation for the development of Cambodia’s new governance system was laid with the promulgation of a new Constitution in 1993.  The RGC has since then made great efforts to adjust and reform the governance structure towards liberal democracy and market economy; new laws have been enacted, and a large number of administrative orders were issued to implement these laws and new institutions and organizations were created to carry out important responsibilities in the public sector.  Notwithstanding these efforts, there are still many obstacles to the efficient implementation of the principle of good governance and transparency. 

·         Rule of Law

A credible, predictable and transparent legal framework and an independent and capable judiciary are the foundations of the rule of law and underpin the development of democracy, market economy and social justice.  The legal framework remains incomplete according to the Governance Action Plan and studies reveal major gaps in legislation, weakness in dissemination and a lack of efficient stakeholder participation.  The Council on Judicial Reform was established in April 2000 to coordinate and formulate reform options and actions but has till date only met on a few occasions.  Before the Consultative Group meeting (CG meeting) in June 2001 the RGC presented a Strategy Statement on Legal and Judicial Reform.  A related Master Action Plan on Judicial and Legal Reform has been drafted. 

There has been little progress in the area of Legal and Judicial Reform in recent years.  Still, achievements related to Judicial Reform that should be mentioned are the recent appointment of approximately 30 judges and the creation a sub-decree for a Royal School of Judges and one for a School of Lawyers.  A major achievement in Legal Reform has been the adoption of the new Land Law but important legislation like the civil and civil procedure codes and criminal and criminal procedures codes are still only drafts.  Efforts must be made to support effective mechanisms and structures for the application and enforcement of laws and regulations.

·         Transparency and Corruption

The present Government has on several occasions and in different ways made pledges to fight corruption.  Before being appointed Government officials have in accordance with annexes to the Cambodian Constitution sworn to fight corruption.  The RGC, on taking office in November 1998, committed itself to act against corruption and measures to be taken included the enactment of an anti-corruption law, the creation of an anti-corruption body and pay raise for civil servants.  In the Governance Action Plan again pledges were made to fight corruption but the progress report shows little results in this area and the short-term action, one year, to prepare and submit to the National Assembly an anti-corruption legislation has not been fulfilled. 

At the same time demands have been made by the civil society and international community for actions to be taken in the anti-corruption program.  NGOs have for several years pushed for an anti-corruption legislation to be adopted and organized working groups and workshops on anti-corruption, transparency and good governance.  Donors expressed concern about the slow progress on the anti-corruption program at the CG meeting 2001 and agreed that speedy and concrete actions are needed in this area, including the appointment of an Auditor-General, enacting the anti-corruption legislation and enforcing the sub-decree on public procurement.  NGOs and part of the international community made recommendations at the Conference on Building a Coalition for Transparency in August 2001 and requested that:

In subsequent workshops this year the work has continued to create the “Coalition for Transparency Cambodia”.

As corruption continues unabated in Cambodia the measures taken by the RGC have, as mentioned above, so far not been sufficient.  The mismanagement of national assets counteracts the RGC’s efforts for a sustainable development and poverty reduction and areas with well-documented problems are land, forestry and fisheries.  According to a Cambodian survey households perceive corruption to have become worse in the last few years. The same survey shows that low-income households bear the larger burden of corruption as measured by the bribe/income ratio, although the absolute amounts paid are smaller than what high-income households pay.  There are indications that this is due to the fact that large parts of the burden of corruption on low-income households are bribes for basic public goods, such as health and education.  With a broadening definition of poverty to also include poor education and health, it is evident that the RGC has to successfully fight corruption in order to reduce poverty.

The draft anti-corruption legislation has been bouncing back and forth between the Ministry of Parliamentary Relations and Inspection and the Council of Ministers, but it has not yet been submitted to the National Assembly for debate and there is little reason to believe that it will be soon.  Even though the adoption of anti-corruption legislation would be important in the fight against corruption, it should be remembered that under existing Cambodian law, ‘Provisions Relating to the Judiciary and Criminal Law and Procedure Applicable in Cambodia During the Transitional Period’, it is already possible to prosecute culprits for the crimes ‘Embezzlement by Public Officials’, ‘Corruption’ and ‘Bribery’.  These provisions are not enforced today and it is not realistic to think that an anti-corruption law would be treated any differently if the RGC does not solve the problems of the persisting culture of impunity and rid the courts of corruption.  While waiting for the legislation to be adopted it is important that the existing provisions are used in the way they were intended, as a tool to fight corruption. 

An anti-corruption unit has been established at the Council of Ministers but this unit is not designed to fight corruption nor to investigate allegations of corruption.

Article 51 of the Law on Civil Servants has been amended, but again, it is enforcement of the law and holding public officials accountable for wrongdoing that will end corruption and the culture of impunity.

The National Assembly and the Senate have so far played a limited role in legislative drafting.  The role of the National Assembly has been to review and enact bills drafted by the government.  Because of late submission of laws and the annual national budget to the National Assembly, there is not enough time for discussion and dissemination.

(iii)       Recommendations

Due to lack of progress in this area the recommendations are partly the same as the ones put forward last year.

·         Legal and Judicial Reform

In order to come to terms with well-documented shortcomings in the law making process, the judicial institutions and law enforcement, the RGC should make a strong commitment to implement its proposed Legal and Judicial reforms in the Governance Action Plan.

·         Civil Service Reform

Programs to increase transparency in the hiring and promotion of civil servants must be implemented.  Salaries of all civil servants must be raised to a level at which graft and corruption will be minimized and pride in public service fostered.

·         Impunity

The RGC needs to effectively put an end to the persisting culture of impunity and ensure that current provisions in force under Cambodian law are used to fight bribery and corruption.  The RGC’s willingness to enforce its laws can be measured by the reforms it undertakes.  Donors should therefore precondition further assistance to concrete results in fighting impunity and corruption.

·         Anti-corruption Legislation

Efforts to pass effective anti-corruption legislation should be expedited.  Key to the success of any legislative scheme will be a truly independent anti-corruption body with effective investigatory powers, and an independent judiciary before which to bring its charges.  In addition, a law on declaration of assets by government employees must be passed.  It can truly be said that progress, or the lack of it, on this legislation will be the true measure of the political will to fight corruption in Cambodia.  

·         Education

To break down the system of corruption in Cambodia it is imperative that Cambodians come to learn that the only proper role of those in positions of political and governmental power is that of public servant.  This concept must be inculcated at all levels of education in Cambodia, and should be made part of the required training of all government officials.  The holding of public office in Cambodia must come to be seen as a privilege that carries with it the highest levels of ethical and moral responsibilities.

·         Access to Information

Ensure the public access to information on governance and transparency in both public and private media.

(i)                 Introduction

The average annual income of Cambodian people is as low as US$258 per capita. However, household expenditure for health care is as high as US$29 per person, most of which comes from savings and borrowed money. Health care remains a serious factor of impoverishment in Cambodia (where 36% of the people live below the poverty line of $0.5 per day). Yet, less costly household expenditures for health care would boost investment and consumption, two factors that contribute to economic development. Healthy workers are physically and mentally more productive and have a higher income. Also, a healthy workforce creates incentives for foreign companies to make long-term investments in the country.

Still, the OECD recently noted that “while health is widely understood to be an important outcome of development, the role of good health in promoting economic development and poverty reduction has been much less appreciated.” In Cambodia, the Ministry of Health has made consistent efforts to develop the public health sector, but structural obstacles have prevented it from reaching health-related poverty reduction goals established in the first Socio Economic Development Plan. As a matter of fact, the population health status remains very low and most health care consumers do not perceive changes from policy reforms. Medicam, representing 110 health organisations, urges the Royal Government of Cambodia, Donors and Development Banks to show their commitment in addressing these structural issues. At the same time, Medicam would like to recommend that the Ministry of Health prioritise intermediary measures, which will increase access to affordable and high quality health services thus contributing to poverty alleviation.

Consistent Achievements in the Health Sector

Drug supplies: In year 2001, as a result of the Ministry of Health's efforts, drug supplies have greatly improved.

Community participation: More feedback committees and health centre management committees have been established, which provide an opportunity to both health centre staff and local communities to better link with each other and improve the quality of existing health services.

Outreach activities: A guideline for outreach activities, as well as an allowance of 8,000 Riels has been established to encourage health centre staff to implement outreach activities.

Construction and renovation: Construction and renovation of health facilities have allowed the 1996 revised health coverage plan to be implemented at 81%, although new facilities are not always operational.

Priority Action Program (PAP): Though chaotic for a first year, the PAP, implemented in seven provinces, is also a positive step toward modernising the health financing system. However, reserves from the Ministry of Economy and Finance to expand this post-audit system to additional provinces and to possibly modify its scope have created uncertainties for the future.

Planning exercises: Planning exercises have also been better coordinated and implemented both at provincial and national levels, which is a crucial step in improving health service delivery. In particular, the on-going development of the Health Sector Strategic Plan, which should be finalised by the end of August 2002, has the potential of being a significant tool for management of the health sector if strategies and activities are prioritised in a realistic way.

(ii)        Key Issues and Structural Obstacles

Low wages:

All these positive developments, which show the willingness of the Ministry of Health to develop the public health sector, are however jeopardised by a number of structural obstacles, which are beyond the Ministry of Health's authority but need to be addressed at a higher level. Thus, the problem of low salaries, which discourages public health workers, jeopardises the quality and availability of public health services. Senior consultants who are supporting the Ministry of Health in building the national Health Sector Strategic Plan noted that the issue was not selected during the national workshop organised to establish the health sector priorities for 2003-2007. When participants were questioned informally about this, the response usually was that this issue " has come up time and time again and no one seems to be able to address it so we have given up…" Medicam joins other partners who strongly recommend an increase in salaries to the level of a living wage. The recently established "Position allowance" and the "Priority Mission Group" strategy adopted by the Council for Administrative Reform are two positive steps forward, but the salary increase they generate is so meagre for field health workers that they still do not address the low wage problem. Still, access to affordable quality health services in the public sector is a crucial factor of poverty reduction, and this can only happen if health workers are able to perform without the recurrent worry about insufficient income.

So far, the government has argued that it does not have the financial capacity to increase salaries. Medicam joins other partners who recommend that the government assess strategies that will better balance its budget between running costs and public staff compensations. A much higher budget should be provided to the Ministry of Health to allow the latter to provide public health workers with specific significant allowances, in particular 1) to encourage health workers who are ready to work in remote areas, and 2) to motivate health workers to provide quality services. It has to be noted here that only experiences of bonus provision that have linked bonus payment to performance have been successful. As such, local independent monitoring and evaluation bodies need to be established to monitor performance and encourage public health workers to perform well.

Budget Release and Access to Budget:

Current cash flow procedures are another structural obstacle that prevents the public health system developing as they dramatically delay budget release and access to budget. As a result, only 3% of the health section of the PAP budget (against 25% after three months in 2001) and close to 0% of the health section of Chapter 11 were released during the first four months of 2002. This deep structural macro-economic problem worsens year after year and paralyses the whole public health sector. The NGO community would appreciate being briefed on plans and progress being made at that level to address this crucial issue.

(iii)       Recommendations for Intermediary Measures

Equity Funds

In this difficult structural context, some intermediary priority measures can be taken to improve the health status of the population and contribute to poverty alleviation. Exemption status for the poor has already been established, which is a positive step towards improving access to public health care for the poor. It is recommended that the financial burden of the exemption for the poor be not borne completely by the health facilities and the health workers. Thus, equity funds could be established in all Operational Districts where quality of care and management are present to support them. To avoid conflict of interest, it is highly recommended that a third party, with a good understanding of the local communities, manages these equity funds.

Nutrition, Outreach Activities and Behaviour Change

Improvement of the nutrition status and prevention of disease, particularly for poor people, would help them cut their expenditures for curative health services. Thus, outreach activities could be promoted and monitored. Also, promotion of behavioural change at consumer level, as well as at practitioner level, could be undertaken on a large scale. Firstly, at consumer level, this would require studies in health behaviours, particularly health behaviours relating to the poor. Medicam congratulates the Ministry of Health for considering the inclusion of behaviour change in the coming five-year Health Sector Strategic Plan, and would stress that the ministry give this a high priority in its annual plans.

conclusion

Improving the population’s health status is a necessary pre-requisite to other poverty reduction and human development objectives. The booming private sector presents itself as an alternative to the public health sector affected by the structural weaknesses and financial difficulties. However, in an environment notorious for its reluctance to accept regulation, commercial health care provision with its high prices, will not lead to improved access to the poor. Moreover, a recent study revealed that 49% of private practitioner's prescriptions are hazardous.

Strengthening the public health sector and regulating the private sector will remove threats to the health status of the people and obstacles to economic development.

(i)         Introduction

HIV was first detected in Cambodia in 1991 and the first cases of AIDS were diagnosed in 1993. Despite the recent decline in national HIV infection rates, Cambodia’s national HIV infection rates remain the highest in Asia.

Concerted efforts in behavioral intervention among high-risk and bridging populations, improved Sexually Transmitted Infection (STI) case management, and national condom social marketing have contributed to the decline of both HIV and other STIs in the country. The year 2000 was the second year where surveillance records showed a decline in HIV prevalence across all key high-risk groups, with estimated national prevalence at 2.8% for the general population, and 31% among direct commercial sex workers (HSS 2000, NCHADS).

However, the epidemic has reached the general population. The 2000 national HIV sentinel surveillance estimates:

·         169,000 Cambodian aged 15-49 years are infected with HIV. Many HIV positive persons are unaware of their HIV status;

·         The ratio of male to female infection is estimated at 1.5: 1. The gap is now narrowing as more women become infected. Without strong interventions in the prevention of parent to child transmission, new infections among infants in Cambodia will continue to increase.

The country has seen a considerable number of deaths in the past few years and symptomatic AIDS cases are rising sharply, while the country’s health systems need much strengthening.  Increasing numbers of children are being orphaned by AIDS. UNAIDS estimated that at the end of 1999, 13,000 Cambodian children had become orphans due to AIDS.

Although Cambodia has achieved some success in HIV prevention efforts reducing risk behaviors, vigorous efforts, including continued funding assistance and scaling-up of existing intervention programs nationwide, are needed to sustain and accelerate the decline in HIV infections.

(ii)        Key Issues

The government has responded to the HIV/AIDS epidemic with the establishment of National AIDS program, the creation of important structures at national and provincial levels, the adoption of a multi-sectoral approach, and the promulgation of laws and policies related to HIV/AIDS.  Many local, national and international NGOs are engaged in HIV/AIDS work, and these are coordinated through the HIV/AIDS Coordinating Committee since 1993. There is close cooperation between government and non-government responses. Nonetheless, issues and priorities for 2002 include:

·         Weak/poor implementation of law and policy – Laws relating to sex work and trafficking exist but are not very effective. Current efforts to improve the legal framework need to be supported, and implementation improved.  In particular, the legal status of sex workers is unclear, leaving them vulnerable to exploitation and trafficking, and at greater risk of contracting HIV. Some efforts to suppress the sex industry drive sex work underground, further from the education and services that reduce the spread of HIV. Many minors are victims of debt-bonded prostitution and trafficking, and are particularly vulnerable to contracting HIV.

·         Responding to increasing demand for care, treatment and support for People Living with HIV/AIDS (PLHA) and families. HIV positive people are in need of knowledge about self-care and services in prevention and treatment of opportunistic diseases that develop as their immune systems weaken. Medical services need to be strengthened and made accessible at provincial and district levels and in the communities for patients too weak to travel. Psychosocial and economic support are critical as many Cambodian families with chronic illnesses have depleted their resources and assets in order to find a cure or to take care of their loved ones.  A number of local and international NGOs have worked closely with the government in responding to the situation but significantly greater efforts and resources are needed.

·         Increase understanding, reducing stigma and discrimination - Despite past education and information campaigns, misconceptions about HIV/AIDS persist among government health personnel and many Cambodians at large. Reform and improvements to existing health care services continue, but the number of PLHA able to access medical services remains a key issue.  In particular, the UN Charter on Rights of PLHA though adopted, is yet to be fully implemented.

·         Attention and resources for orphans and vulnerable children including those affected by AIDS. Reducing stigma and segregation of children orphaned due to AIDS in school and communities continues to be a challenge. This has been carried out successfully in some communities with strong partnerships involving government, NGOs and religious sectors. Again scaling up efforts, improving the quality of care, and reaching more children with services remain the key issues.

·         Involvement and roles of PLHA in policy and planning – After a period of formation of local PLHA groups, a national network of PLHA has been formed - the Cambodian Network of PLHA (CNP+). The network is young, and requires much support and capacity building in order to have an active role in voicing the needs of PLHA, influencing policies, and having a stronger role in peer support. The network is looking into expanding to the provinces.

·         Developing a multi-sectoral response- Multisectoral activities can be both sectoral and intersectoral. The sectoral activities consist of those undertaken within each sector to address HIV/AIDS issues relevant to that sector. For example the education sector can include life skills and HIV/AIDS education into school curricula, exemption of fees for orphans, promote integration and encourage peer support among children. The initiative has started but needs much further development.

(iii)       Recommendations

Progress is being made on key aspects of HIV/AIDS programming. However, given the continued spread of the virus and increasing numbers of people affected by HIV/AIDS, NGOs impress upon the RGC and donors, the continuing and urgent need for expanding and upgrading HIV/AIDS interventions. When formulating and undertaking programs in the future, consideration should include the need:

·         For scaling up prevention and care responses that address the needs of the most vulnerable populations including sex workers, other high-risk populations, PLHA, and women and children affected by HIV/AIDS

·         For strengthening the government health care services to provide HIV/AIDS care with improved accessibility for vulnerable and poor people

·         For scaling up responses that extend coverage in rural areas

·         For increased involvement of PLHA in advocacy, policy formulation and programming

·         For building on lessons learned about mobilizing community responses to HIV/AIDS

·         For intensive education and information campaigns to reduce stigma and discrimination

·         To continue the balance and integration of HIV/AIDS care services with other chronic diseases, given the limited resources available for health and the need to place the HIV/AIDS work in the overall context of efforts to promote access and  quality of health care for the poor

·         To continue to focus on effective monitoring systems to ensure that resources are used efficiently and effectively to reduce the spread of HIV/AIDS and mitigate the impact of the epidemic.

(i)         Introduction

Cambodia is one of the 122 States parties to the Ottawa Mine Ban Treaty, and desires a mine free ASEAN. “Mine clearance activities are considered by the Royal Government of Cambodia as a top priority in the rehabilitation and development of the country, in particular in light of achieving poverty reduction in Cambodia. Mine clearance is not merely a matter of social security, but it is also relevant to economic issues and development in general, especially in terms of providing land and safety of livelihoods to poor farming households in remote areas.” NGOs working in mine affected communities endorse these comments of the Prime Minister of Cambodia.

In 2002, 46% of Cambodia’s villages are affected by mines or UXOs. The recently completed Impact Level 1 Survey shows the negative socio-economic impact of this:

In 2001, the number of people injured or killed by landmines or UXOs was 809. In the first three months of 2002, 279 have been involved in mine accidents. Areas needed for roads, cables, village activities, housing and farming continue to be cleared by CMAC, MAG, HALO Trust, the military and villagers. NGOs are involved in development activities in mine affected communities, in victim assistance, in monitoring the Mine Ban Treaty as well as in clearance. They contribute actively in co-ordination meetings. Coordination and regulation of mine action is entrusted to Cambodian Mine Action Authority. Other co-ordination mechanisms which collaborate with CMAA are the Disability Action Council and Land Use Planning Units.

(ii)               Key Issues & Recommendations

1.       Priority clearance of mine affected areas with greatest impact on poverty alleviation.

Recommendation:

·Fund clearance of mines,

·Prioritize mine clearance according to the maximum impact for poverty alleviation

2.       Access to safe land with right of ownership

Recommendations:

·         Continue to monitor use of demined land.

·         Implement good land legislation that alleviates poverty in mine-affected Cambodia.

3.       Communities and individuals disabled by mines have a right to development assistance.

Recommendations:

·         Fund assistance for rehabilitation and socio-economic reintegration of disabled,

·         Fund development activities in mine affected communities.

(i)         Introduction

After three years of intensive consultations the new Land Law was passed 30 August 2001.  The Ministry of Land Management, Urban Planning and Construction (MLMUPC) deserves much credit for the consultative process which it facilitated in order to support the drafting of this law.  The result is a law that is far more pro-poor and of a far higher technical quality than the early drafts that circulated in 1998.

Much work remains to be done.  Sixteen sub-decrees need to be written in order to enable the law to be implemented.  This work is proceeding under the guidance of the Council for Land Policy.  Once more, both policy-makers and the technical assistants who are drafting the law deserve credit for keeping the process open to consultation, both before drafting begins and then after each piece of legislation is redrafted. 

The Cadastral Commission sub-decree drafting process has been quite controversial, as different stakeholders have advocated different approaches.  The Cadastral Commissions will have the key role in settling land disputes under the new land administration regime.  Most land disputes pit groups of poor people against powerful businessmen or officials.  It is therefore both very difficult and very important to develop an approach that will generate confidence that the rights of the poor will be protected.

A key development since the 2001 CG meeting has been the approval of a Land Management and Administration Project funded by a $3.5m grant from the German government, a $3.5m grant from the Finnish government and a $24.3m concessionary loan from the World Bank.

(ii)        Key Issues

We support the broad policy approach described in the Royal Government's Land Policy paper.  Our recommendations to the 2001 CG meeting can be considered a statement of support to the government's programme.

Similarly, we endorse the consultative approach initiated by the Ministry for Land Management, Urban Planing and Construction (MLMUPC) and now continuing under the auspices of the Council for Land Policy.  We also recognize that even though the process has been good it could be improved.  On the NGO side we could be more systematic in involving poor stakeholders in consultations.  On the government side more advanced notice of consultation schedules could be given, and slightly longer windows for comment could be granted.

Our major concern at this stage, however, is regarding prioritization of activities within the reform programme.  Over the past four years great efforts have been made by the Royal Government and civil society actors to ensure pro-poor policies and legislation within the land sector.  After these achievements, it is now imperative that decisions about implementation of policies and programmes are made such that a real poverty reduction impact is delivered.  

International experience shows that the large organizations that finance land reform programmes often prefer to concentrate on land administration (rather than land management and land redistribution).  Furthermore, within land administration, they prefer to concentrate on titling land in areas where there are no conflicts. 

We believe that if Land Reform is going to be tailored to fit the Cambodian situation, then the emphasis must be quite different from this.  In Cambodia, the rural population is rising rapidly and neither the urban nor the rural private sector will be able to absorb the increased demand for employment.  Dramatic increases in poverty and severe political and social unrest are real dangers. 

Rural Cambodians rely on a combination of access to agricultural land, forestry resources and fisheries in order to have a diversified and sustainable livelihood.  Safeguarding and broadening access to common property resources (forestry and fisheries) and distributing land to rural landless families are the largest opportunities for direct poverty reduction within the land reform programme in Cambodia.  The implication of this is that land distribution (through a nationwide programme of Social Concessions) and land management (especially demarcation and registration of State Land) should be the highest implementation priorities.

Land administration does contain important potentials for poverty alleviation, but here too the international hat must be tailored to the Cambodian head.  The 2001 Land Law provides possession rights to people who were peaceful occupants of land at the time the law was passed.  Most rural farmers have occupied their land for many years and despite the lack of formal title are secure in their occupancy.  For these people, insecurity of tenure is not a constraint to investment in their land, nor is it difficult for them to obtain credit by using their land as security.  In other words, the most important direct poverty alleviation opportunities lie elsewhere.  Priorities for land administration should be titling in areas where poor people are most vulnerable to being dispossessed.  Surveys suggest that these are particularly: areas that were fought over during the 1990s; areas where the local economy is booming; areas with high land values and potential for commercial exploitation (e.g. as plantation land); national borders and along national roads.

We hope that when we write our 2003 submission that we will be able to report that many poor people have been able to access agricultural and housing land through social concessions, and that the demarcation of State land will have begun, and will be safeguarding poor people’s access to the resources upon which they depend for their livelihoods.

We would also acknowledge that achieving poverty reduction through land reform is difficult.  This is a new journey for Cambodia.  We would therefore encourage the Royal Government, and all those who support it in the national and international community, to explore a diverse range of solutions.  If we only try one way, then it may well be the wrong one.  If we test three or four different ways, we are more likely to find the one that works best in Cambodia.  We would therefore encourage an approach to reform implementation that encourages diversity in the early stages.  It will be dangerous for Cambodia if anyone pretends that they know all the right solutions before the implementation begins.

(iii)       Recommendations

1.        Land Distribution before Land Administration.  We would like to see a programme of distribution that extends to every commune in the country.  This should either be at the same time as systematic land titling or in advance of it.

2.        Land Management before Land Administration.  Public land should be demarcated at the same time as private land under the systematic titling regime.  This means developing criteria for demarcation in advance of the systematic land titling programme.

3.        Land Administration to assist the vulnerable.  Once systematic land titling pilots have been completed the priority must be to carry out titling where people are most vulnerable to losing their land, i.e. where conflicts are most prevalent.

4.        Pilot several ways, not just one way.  For key processes (e.g. demarcation of different sorts of State land, implementation of Social Concessions) the Council for Land Policy should elicit a number of trials (action research projects) so that implementation decisions can be take on the basis of a range of available choices.
 

(i)         Introduction

As a country with a history of genocide, prolonged armed conflict and years of dislocation and insecurity, Cambodia has a population with a legacy of serious social and mental problems that have a debilitating impact on its reconstruction and development.  Worldwide, even in countries with advanced development, mental disorders are the second highest cause of reduced life span.

(ii)        Key Issues

In spite of the wide knowledge and acknowledgment of the mental health impact of armed conflict and genocide on a population, donor countries and the government have not yet made a coordinated, national effort to create capacity and services to help people to recover from their mental and emotional problems.  The NGOs active in the mental health sector (5) have proven effective models to assist people, but they are under- funded, and are located in less than half the provinces in Cambodia.  The Ministry of Health, which has the official responsibility for the management of mental health care, lacks sufficient information and resources to deal with this issue, and has a limited view of the services needed to help people.  The problems of children’s mental health are particularly acute, as there is only one NGO actually providing treatment for children with mental illness.  The emerging problem of drug abuse among youth is of particular concern, in a post-genocide nation with 41% of the population under the age of 15. 

There is currently a WHO-funded consultant leading the process of developing a national mental health plan, in consultation with other relevant ministries and NGOs.  But that effort is hampered by the limited human resources assigned to it by the Ministry of Health, where only one part-time staff, a trained psychiatrist with many other responsibilities, is charged with all the liaison work. 

(iii)             Recommendations to Donors

1.     Consider that the resources given for mental health services, rather than taking away from the process of development, may enhance it by increasing people’s ability to make use of other development initiatives.

2.     Encourage the Ministry of Health to pay more attention to the impact of mental health on general health, and to provide sufficient and appropriate human resources to develop and manage the program.

3.     Consider integrating mental health components in other development or assistance programs, such as community development, human rights, HIV/AIDS programs, disability/land mine programs, education programs, and others.

4.     When supporting mental health programs, remember that mental health is mainly not a medical issue, but affects all parts of a person’s life, and therefore requires human resources in addition to medical personnel, such as social workers, psychologists, occupational therapists, community workers, and others.

5.     Become familiar with the literature on the mental health impact of armed conflict and genocide on a population.

(i)         Introduction

Reliable access to micro-credit and savings services by the poor is one crucial component for alleviating poverty and accelerating economic growth in Cambodia. The vast majority of Cambodian people have very limited or no access to credit and savings services. To respond to this need, the NGO micro-credit sector has been in the forefront of providing loan capital for income generating activities of the poor.  These NGO programs employing varying methodologies have expanded rapidly since 1992. 

The Rural Development Bank (RDB) reports that as of February 2002 approximately 55 credit programs were operating in Cambodia with total outreach of about 449,100 families and loans valued at 38 million US dollars.  Despite these efforts, only about 30% of the country’s total capital requirement for microfinance are being met.  Cambodia Development Resource Institute (CDRI) research shows that in order to reduce poverty nationwide, the rural poor would need between $70 and 100 million dollars in loan capital.

Regulatory Environment:

The National Bank of Cambodia (NBC) with advice from the Asian Development Bank (ADB) has been issuing new laws to monitor and gain more control of the microfinance sector.  All organizations giving credit must register with the government and all organizations over a certain size must become licensed.  As of this date, one organization has become a specialized bank, two organizations have been granted Micro-finance Institution (MFI) licenses and another 8 are in the process of becoming formal MFIs.

(ii)        Key Issues

·         Limited access to financial services.

The vast majority of Cambodian people still have limited access to financial services in the formal sector.  With limited access to financial services other than family and friends, people have relied on moneylenders and traders for investment capital to finance essential inputs for agricultural production or micro enterprises.  The lack of capital results in low productivity and hampers economic growth, particularly in the rural areas where the majority of the population lives.  This is a major hindrance to Cambodia’s goal of reducing poverty and attaining full economic development.

·         Allowing for and maintaining a favorable micro-finance environment.

To effectively reach the great numbers of poor Cambodians with no access to financial services, there must be a conducive policy and regulatory environment, which allows microfinance and microenterprise to thrive.  Experience has shown that a free market approach allowing for different methodologies with a minimum of government intervention is the most effective means to achieve this.

(iii)       Recommendations

Royal Government of Cambodia

·         Ensuring that every Cambodian, particularly the poor, has access to credit should be a primary concern.  To do this, the government must ensure the development of a strong micro-financial sector that provides reliable access to credit to the poor, particularly the rural poor.

·         There should be constant dialogue between the government and implementers, both in the formation of laws but also in formulating methods of improving the sector.  

·         Maintain a stable political and economic environment.  Adopt economic and legal policies that encourage private investment, lower inflation and maintain a stable exchange rate in order to promote rural economic growth.

·         Avoid interest rate controls as they undermine the development of the micro-financial system.  Allow for the free market to promote positive real interest rates on both deposits and loans.

·         Amend the influential shareholder liability requirement from the law and review the licensing period of three years, which are disincentives for serious investors interested in the microfinance sector.

·         Strengthen the legal system that allows for fair enforcement of contractual obligation and fosters conflict resolution.

·         Avoid talks of debt moratorium or politicians talking of paying debts of borrowers as this undermines the successful implementation of credit and savings programs and can harm the medium term goal of developing a strong rural financial market.

·         Waive taxation on interest earnings of small savings depositors to encourage local savings  (e.g. Thailand does not tax savings interest if interest on savings does not exceed 1,000 baht).

·         Waive taxation on gross receipts of MFI for a limited period of time (three to five years, similar to tax holidays given to private investors) to allow MFI to improve their services and strengthen their financial and operational capacity. For this limited time period, MFI will be exempt from gross receipt tax but will have to pay taxes on net profit.

·         Consider waiving taxes on organizations with strong social objectives.

·         Formulate a policy, legal and regulatory framework that allows for diversity in institutional structures and credit delivery schemes for both the formal and non-formal financial institutions concentrating on regulation and supervision which creates a conducive environment for micro-credit to thrive. 

·         Organizations undergoing formalization should be given sufficient time and adequate support and training to become licensed MFI. 

·         Proactively pursue establishment of deposit guarantee institution (be it government or privately owned) to promote client confidence in the financial sector and strengthen deposit mobilization, a necessary component of a strong rural finance sector.
 

Donors

·         Allow for diversity of implementation strategies. 

·         Introduce complementary development programs to address the constraints to micro-enterprise development and rural economic growth.

·         Provide substantial support for training and technical assistance to develop Cambodia’s human resource and institutional capacity at all levels. 

·         Provide funding assistance for organizations involved in transformation. 

·         Enhance donor coordination to ensure that donor funded programs complement the development of the micro-finance system.

·         Avoid supporting programs that are neither transparent nor accountable to external controls. 

·         Promote the formation of an Association of MFIs to avoid bad practices, over-indebtedness of households and sharing of information.
 

(i)         Introduction

Since the first term of the coalition government, from 1993-1998, Cambodia has been moving beyond the ravages of war to reconstruction and rehabilitation.  The country has been able to obtain from many governments, multi-lateral development banks and other agencies assistance in the form of grants or loans.  Some donor-funded projects can lead to negative impacts on poor people, in either urban or rural areas, who have to temporarily or permanently resettle from one place to other.  For example, the ADB loan project to reconstruct Highway N^o1 from Phnom Penh to the Vietnam border has affected many thousands of families along this road.  In addition, many projects currently being planned, including hydroelectric dams, city improvement and others, are likely to affect poor people.

A recent survey of the Urban Poor Development Fund (UPDF) shows that in Phnom Penh there are 10 areas facing resettlement associated with 7,137 families requiring 248 hectares of land.  A Technical Assistance Survey carried out by Legal Aid of Cambodia (LAC) asserts that along Highway N^o1 there are approximately 5,920 project-affected-people living in 1,184 dwellings, requiring the acquisition of approximately 201 hectares of land.  According to the ADB's Summary Resettlement Action Plan for Highways N^o 5, 6 and 7, there are about 11,474 people living in about 2,270 households that will be affected by the rehabilitation of these roads.  COMFREL has reported that there are 500 families affected by road enlargements in two districts of Phnom Penh, namely Russey Keo and Deukor.  The affected people face relocation of their homes, reduced income, loss of jobs, and loss of many opportunities for trade and employment. 

(ii)        Key Issues

·       No Comprehensive National Resettlement Policy

A National Resettlement Policy has been drafted, but this document has not yet been adopted as a sub-decree.  Thus, projects involving resettlement are implemented with inconsistent procedures.  The affected people are often forced or intimidated to move from their houses by local authorities without appropriate compensation or assistance.

·       No Permanent Institutional Structure for all Levels

A permanent institutional structure at central, municipal and provincial levels dealing with resettlement should be established to ensure efficient implementation because previous experiences show that the ad-hoc Inter-Ministerial Resettlement Committee (IRC) structure was only in place for specific but not all projects.

·       Inadequate Human Resources

The current lack of human resources can be remedied by training relevant government staff and officials to review, approve, monitor, and evaluate the resettlement process.  Staff of NGOs can also be trained in general resettlement practices, with particular emphasis on monitoring and evaluation. The training should take place in the short and long term, as required. 

·       Lack of Access to and Dissemination of Information

There is not enough access to or dissemination of information to affected people and other stakeholders.  Affected people should be given the right to be consulted on resettlement options. All implementing agencies should issue clear guidelines on procedures for public participation and the involvement of affected people from project design to completion.  These guidelines should be publicly announced.  Procedures should be put into place through which affected people are fully informed of the compensatory packages due to them.   

(iii)       Recommendations

Royal Government of Cambodia

·       The Royal Government of Cambodia should accelerate promulgation of the National Resettlement Policy, enacted as a sub-decree, and then enable its implementation by passing legal regulations covering all applicable projects.

·       The RGC should develop and implement a Resettlement Plan (RP).  The RP in Cambodia should include the actual number of affected people and extent of losses, the applicable policy and legal framework, the processes needed for asset valuation, compensation, relocation, rehabilitation and environment protection, responsibilities in delivering and monitoring entitlements, cost, time frame for land acquisition and resettlement measures, and consultation with grievance mechanisms for the affected people.

Donors, NGOs and Civil Society

·       Donors should insist on transparency and accountability from the RGC on resettlement issues.  The donors should play an important role as external monitors and watchdogs on all resettlement activities involved in their projects.

·       NGOs and civil society should also monitor and evaluate resettlement activities in Cambodia.  NGOs based in affected communities should be directly involved in resettlement issues at the local level.  They should report to stakeholders, relevant NGOs and civil society and others about the actual situation of resettlement in Cambodia.
 

(i)         Introduction

The Khmer Rouge regime destroyed the three institutions responsible for providing care and support for the older people sector namely family, community and religion. The civil war also had a negative impact on the population structure. The 1998 demographic census showed that 5.3 percent of Cambodia’s population was over 60 years old. The age group (35 – 50) currently responsible for supporting older people however has suffered the highest casualties from two decades of war leaving their surviving parents to live alone in their old age. A decade after the signing of the peace agreement, the already vulnerable older people sector continues to struggle on how to adapt to a rapidly changing market economy and a flood of foreign technology and culture.

Despite all the dynamic changes affecting the lives of older people, relatively little attention has been given to the situation of Cambodia’s older people. Older people are generally perceived as helpless and unproductive members of Cambodian society. At the moment, most older people cannot rely on any form of state support. Government agencies responsible for providing basic services and protection to the elderly lacked the necessary manpower, facilities and materials resources to effectively respond to the needs and problems of older people. The findings of the 1998 study on the situation of older people in Cambodia revealed that many development programs implemented by government and non-government organizations have excluded older people in their activities due to their old age. Many elderly lacked access to services of credit organizations due to their old age perceived as a big risk for the feasibility of credit programs.

One of the most devastating consequences of Cambodia’s long war has been the loss of culture, traditions and awareness of what Cambodian society was like before. Older people have the experience and skills that can help restore what has been lost, but not if they are ignored by the Cambodian society in the rush for modernization and development. It is therefore essential that government development policies and services focus on the situation, needs and contributions of older people not only for the sake of the older people themselves but also for the sake of the country as well.

(ii)        Key Issues and Progress

The real threat to the survival and development of older people are not from the past but from the present and future. Due to ignorance on older people issues and lack of human and material resources, development policies and program plans of both government and non-government organizations failed to effectively address the needs and tap the potentials of the older people sector in Cambodia. The government had proclaimed the celebration of October 1 as the International Day for Older Persons and had appointed an Inter-Ministerial Committee to develop a national policy for the social welfare of older people. The Inter-Ministerial Committee is mandated to draft the National Policy on Older People to be submitted to the Council of Ministers who will recommend to the National Assembly for approval. The draft policy is at the final stage of finalization by the Inter-Ministerial Committee. The policy however can only be effective if adequate resources are available to implement it. The government’s strategic five year plan has included the elderly sector but failed to develop concrete plans and adequate budget to implement it.  

For the first time in the recent history of Cambodia, HelpAge International in collaboration with the Ministry of Social affairs, Labor and Veterans Affairs (MOSALVY) organized a  “National Forum on Older People” in September 2001 attended by over 80 elderly representatives from nine provinces with equally diverse and economic backgrounds. The forum was also attended by representatives from 12 national and international NGOs and members of the Inter-Ministerial Committee representing 12 government ministries. The objective of the forum was to bring policy makers and the NGO sector face-to-face with the older people, create a better awareness on the issues of the elderly and provide older people with opportunity to express their own collective voice. The conclusion and recommendations from the national forum were presented to the International Forum on Older People in Madrid, Spain in April 2002.

The National Forum on Older People strongly called on the government to ensure active participation of older people and the NGO sectors in drafting the national older people policy. One of the highlights of the draft policy is the government’s support to the formation of Older People’s Associations (OPAs) in all provinces in Cambodia.  The older people through joint studies and consultations facilitated by HelpAge and MOSALVY have identified the following needs and problems. These issues need urgent attention and intervention by government and non-government organizations in Cambodia.

Poverty

The older people sector in Cambodia is living in conditions of poverty, hardship and fear of the future. The declining physical strength of older people implies declining income and quality of life. A number of older people lost their children during two decades of war and therefore have no one to support them, as they grow older. Many surviving children are too poor to support themselves to be able to give adequate support to their parents.

Lack of affordable health care services
The huge expense of medical care very often push older people to prioritize the food and livelihood security of their families in favor of their health and medical needs.

Food Security

Landholdings sufficient to support a family in the 1980’s are no longer sufficient to support the children and their families two decades later. This situation implies decreasing standard of living and food security for older people and their families.

Migration

Rural poverty and lack of income opportunity forces young people to abandon their parents and children to migrate inside (Phnom Penh and other cities and towns) and outside (Thailand and Vietnam) Cambodia. While some children come back and send money, others disappear, leaving ageing parents to care for small children.

HIV/AIDS

Cambodia is suffering from a serious AIDS epidemic. In the near future, a large number of young people will become sick and die from HIV/AIDS.  It is the ageing parents who usually take care of their sick children as well as their orphaned grandchildren. HIV/AIDS will also deprive many older people of children to support them in their old age.

Gender

Gender issues do not diminish with age. Gender roles and expectations affect older women as much as younger women in terms of respect and access and control of resources and services. Many older women especially suffer from physical and psychological violence inflicted by members of their own immediate families.

(iii)       Recommendations

Policy Formulation

The government should facilitate the drafting, approval and implementation of the National Policy on Older People.  The government should create adequate budget to support effective policy implementation. The national policy should incorporate the issue of ageing and appropriate support mechanism to bring older people sector back into the mainstream of the government’s social and economic planning. Policies for employment, health, transport and social services should take into account the needs of the elderly. The older people, their families, communities and non-government organizations should be actively involved in research, planning and policy implementation on issues affecting the elderly. Bilateral and multilateral donors should take into account the needs and contributions of older people as a critical element in poverty reduction.

Specifically, the policy should include support towards the formation of Older People’s Associations (OPAs) in all provinces of Cambodia, provision of basic health care services for the elderly, prevention and protection of older people against violence and trafficking, the establishment of adequate pension fund for retired civil workers, tax exemptions and subsidized transportation services for the elderly in Cambodia.

Participation

Older people are a valuable resource, which government and non-government organizations should encourage, and empower to work together as partners in research, planning, management and evaluation of development programs.

Rural Development

Government and NGOs should pursue programs and policies that will reduce rural poverty, foster equitable and geographically dispersed economic development, and increase employment opportunities in the countryside. A successful implementation of an integrated development program in the countryside will increase the capacity of immediate families and communities to care and support for the elderly sector.

Health Care

Health care reform, with the goal of ensuring competent, accessible and affordable health care are important steps towards improving the lives of older people in Cambodia. Government assistance should focus on community-based care rather than institutional care wherever possible. Community health programs should consider working with older people to spread information and provide follow-up care. Older people’s access to eye care, dental care and prosthesis should be improved. 

HIV/AIDS

The government should encourage research on the impact if HIV/AIDS on the elderly sector in Cambodia, particularly in their role as principal carers of orphans and of adults with HIV/AIDS. The government should prepare the elderly sector towards their important role in responding to the HIV/AIDS epidemic through education of older people about the nature of HIV/AIDS and how to care for people with HIV/AIDS. The government should consider training traditional healers to become community educators on HIV/AIDS and other public health programs.

Gender

The government should develop policies that address the particular needs and vulnerabilities of men and women in their old age. The government should address issues resulting from women’s life-long disadvantages in health and nutrition and the prevention and protection of older people, especially women from physical and psychological violence. The government and non-government organizations should take positive steps to ensure that older women are not excluded in development programs.

I hereby sign this Code of Ethics as a statement of my principles and intentions in my own personal work with NGOs and people’s organizations:

 (This Code of Ethics was presented at the 1997 NGO Fair 24-25 January 1997.  It was first prepared by the Cooperation Committee for Cambodia (CCC) and then finalized by Federation of Ponleu Khmer (FPK).  It was signed by more than 150 staff and representatives of NGOs at the NGO Fair in January 1997.)

GRAPH 1:      Summary of NGOs Contributions (US $ millions)

Sources:   NGO Statement to the CG Meeting on Cambodia 1997-2002; Non-Governmental

                           Organizations in Cambodia 1998 by CDC; 1998-2000 Development Cooperation Reports

              for Cambodia by CDC;  1999 Cambodian NGO Resource Directories by Ponlok;

                                  CCC Directories 2000-2002 (Note: 2002 figures are projected estimated budget figures only)

                     (NGO figures inclusive of bilateral, multi-lateral and core/own resources)

GRAPH 2:      Number of NGOs in Cambodia

Sources:            Source: CCC International Humanitarian/Development Assistance and Cambodian NGO Directories

                            (1992-2002); Non-Governmental NGOs in Cambodia by CDC (1998, 2000)

                     
GRAPH  3:     NGO Projects in Cambodia by Sector

Sourc        Source: CCC International Humanitarian/Development Assistance and Cambodian NGO Directories

                          (1999-2001; 2001-2002)

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Pan Sodavy, Mom Sitha, Robert Nugent and Helen Murphy (2000), Farmers’ Awareness and Perceptions of the Effect of Pesticide on their Health, FAO Community IPM Programme, Field Document April 2000.

Rady, K.M. ; Horng, L.S and Sreng, H. Flood receding rice in Cambodia: field document, 2001, photo-copied. Phnom Penh: CEDAC (in Khmer)

Royal Government of Cambodia (2000) Interim Poverty Reduction Strategy of Cambodia, Phnom Penh.

Royal Government of Cambodia (2001) Governance Action Plan.

Royal Government of Cambodia (2001) Strategy Statement Legal and Judicial Reform,

Royal Government of Cambodia, (2001) Draft ‘Second Five Year Socioeconomic Development Plan 2001-2005’,

Simmonds, Stephanie and Penelope Key (2002) Report on Cambodia Health Strategy Consultancy, 10-31 January 2002. Institute for Health Sector Development, for DFID.

Vickery, Chris, Greg Rose, Steve Dixon, Lo Veasna Kiry, Sharon Wilkinson (2001) Private Practitioner in Phnom Penh, a Mystery Client Survey. November 2001

WHO, World Bank, Harvard University  Study on impact of different diseases and physical conditions on Years of Active Life.  

Working Group on Weapons Reduction (WGWR) (2002) NGO Report on The 2001 Cambodian Demobilization Program: Observations and Recommendations.  Phnom Penh

World Bank (2001) Cambodia Governance and Corruption Diagnostic: Evidence from Citizen, Enterprise and Public Official Surveys.

World Bank, (2002) Legal and Judicial Reform Mission – November 2001, Aide-mémoire,

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NGO STATEMENT TO THE 2002 CONSULTATIVE GROUP MEETING ON CAMBODIA
Phnom Penh, 19-21, June, 2002

MEDiCAM is the membership organization for NGOs active in the health sector in Cambodia.  It is a non-profit, non-partisan and non-sectarian organization created in 1989.  MEDiCAM was formally recognized by the Ministry of Health in 1991 as the official representative of NGOs involved in the health sector in Cambodia.  The current membership comprises 111 agencies both international and local.  MEDiCAM’s main objectives are to facilitate communication, and diffusion of health related information between the NGOs, the Royal Cambodian Government, and all other health actors in Cambodia.  MEDiCAM House # 140, Street 51 Boueng Keng Kang 1, Chamcarmon P.O Box 1164, Phnom Penh, Cambodia Tel:  (855-23) 211 486/214-540 Fax: (855-23) 214-540 E-mail: medicam@bigpond.com.kh   Website:   http://www.bigpond.com.kh/users/medicam