1. 1 2007 Annual Ministerial Review of the High Level Segment of ECOSOC Geneva, 2-5 July, 2007 Ministry of Planning Royal Government of Cambodia ACHIEVING CAMBODIA MILLENNIUM DEVELOPMENT GOALS: CHALLENGES AND OPPORTUNITIES

2. 2  Socio-economic Situation  Progress in Achieving CMDGs  Achievement & Gaps in realizing CMDGs  National Strategic Development Plan (NSDP) 2006- 2010.  Development Challenges  Way forward OUTLINE OF PRESENTATION

3. 3 Total Population (2006):14.08 million Total Population (2006):14.08 million Annual population growth (2004): 1.81% Annual population growth (2004): 1.81% Population in age group (15-64): 57% Population in age group (15-64): 57% Children under 15 years: 39% Children under 15 years: 39% Population over 65 year: 5% Population over 65 year: 5% GDP per capita (2006): US$ 513 GDP per capita (2006): US$ 513 Annual GDP growth (2006): 10.80 % Annual GDP growth (2006): 10.80 % Inflation rate (2006): 4.7% Inflation rate (2006): 4.7% Exchange rate stable US$=Riel: 4,103 Exchange rate stable US$=Riel: 4,103 CAMBODIA SOCIO-ECONOMIC SITUATION CAMBODIA SOCIO-ECONOMIC SITUATION

4. 4 Global MDGs Vs Cambodia MDGs Global MDGs Timeframe: 1990 to 2015 “8 Goals, 18 Targets (T) and 48 Indicators (Is)” Goal 1: 2 T & 5 Is Goal 2: 1 T & 3 Is Goal 3: 1 T & 4 Is Goal 4: 1 T & 3 Is Goal 5: 1 T & 2 Is Goal 6: 2 T & 7 Is Goal 7: 3 T & 8 Is Goal 8: 7 T & 16 Is Cambodia MDGs 1993 to 2015 “9 Goals, 25 overall targets (OT) and 106 indicators” Goal 1: 2 OT & 8 Is Goal 1: 2 OT & 8 Is Goal 2: 2 OT &10 Is Goal 2: 2 OT &10 Is Goal 3: 4 OT & 20 Is Goal 3: 4 OT & 20 Is Goal 4: 1 OT & 7 Is Goal 4: 1 OT & 7 Is Goal 5: 1 OT & 9 Is Goal 5: 1 OT & 9 Is Goal 6: 2 OT & 17 Is Goal 6: 2 OT & 17 Is Goal 7: 3 OT & 14 Is Goal 7: 3 OT & 14 Is Goal 8: Not yet localize Goal 8: Not yet localize Goal 9: 2 OT & 4 Ts Goal 9: 2 OT & 4 Ts

5. 5 PROGRESS IN ACHIEVING CMDG Indicators Target 2005 2005 2005 Target 2010 Population under poverty line 3134.70(2004)25 Prevalence of underweight 36 45 (2000) 3629 Prevalence of stunted 35 45 (2000) 3728 Prevalence of wasted 1315(2000)710 Household using iodized salt 80 14 (2000) 7390

6. 6 PROGRESS IN ACHIEVING CMDG (cont’d) Indicators Target 2005 2006 2006 Target 2010 1-Net enrolment in primary educ. 9591.3100 - Boy - Girl 96949389.7100100 2- Net enrolment in second. Educ. 5031.350 -Boy-Girl514932.130.45050 3- Literacy rate male/female 9584.795

7. 7 PROGRESS IN ACHIEVING CMDG (cont’d) Indicators Target 2005 2005 2005 Target 2010 Female commune councilor 8.7(2002) 14.64 (2007) IMR /1,000 live births 95 (2000) 6660 U5 MR/1,000 live births 124 (2000) 8375 MMR/100,000 births 343472243 Birth attended by skilled health 32 (2000) 4470

8. 8 PROGRESS IN ACHIEVING CMDG (cont’d) Indicators Target 2005 2005 2005 Target 2010 HIV/AIDS prevalence 15-49 years old 2.30.60.5 Urban Access to Drinking water 6875.885 Urban Access to sanitation 595567 Rural Access to Drinking water 3042.6(2006)45 Rural Access to sanitation 1215.8(2006)25

9. 9 PROGRESS IN ACHIEVING CMDG (cont’d) ODA:  ODA is of critical importance in Cambodia as it represents a very large proportion of public financial resources.  Cambodia remains highly aid-dependent at its present level of development.  Cambodia’s urgent need is to rapidly move to a new & expanded era of partnership with the international community which has provided extremely financial & technical support in its fighting against poverty

10. 10 PROGRESS IN ACHIEVING CMDG (cont’d) Partnership for Sustainable Development:  To implement Rome Declaration: the RGC Action Plan on Harmonization & Alignment 2004-2008 was endorsed in November 2004.  An important element of this Action Plan is the RGC’s commitment to prepare a single NSDP 2006-2010 that will serve as a framework for the alignment of all ODA supported activities.  The RGC stands strongly committed to achieve CMDGs by adopting these as the key pillars of Cambodia’s National Development Policy & Strategy.

11. 11 PROGRESS IN ACHIEVING CMDG (cont’d) Partnership for Sustainable development:  NSDP 2006-2010 is a combination of early SEDP, NPRS, NPP and other sectoral policies & strategies to implement Rectangular Strategy which is the platform of the RGC in the 3rd legislature of the National assembly 2003-2008, for reducing poverty & achieving CMDGs.  The NSDP was a CMDGs-based plan aiming to ensure Cambodia ‘s rapid progress towards achieving the CMDGs & other socio-economic goals.

12. 12 PROGRESS IN ACHIEVING CMDG (cont’d) Partnership for Sustainable development:  For preparing a CMDGs-based plan, the NSDP had three important features: (i) NSDP shall adopt CMDG-consistent targets, where applicable, as its targets in 2010; (ii) Strategies/policies/programs/financial allocations & sectoral priorities of NSDP will be geared towards achieving these targets; (iii) M & E framework of NSDP shall include appropriate indicators to regularly monitor progress towards achieving the CMDGs.

13. 13 PROGRESS IN ACHIEVING CMDG (cont’d) Partnership for Sustainable development:  To support the development of NSDP, 18 Technical Working Groups (TWGs) have been set up: one Technical Working Group on Planning & Poverty Reduction(TWG-PPR) and 17 TWGs at sectoral and thematic level.  These joint TWGs provide a useful forum for strengthening partnerships across all stakeholders, including Government & EDPs.

14. 14 PROGRESS IN ACHIEVING CMDG (cont’d) Partnership for Sustainable development:  To ensure coordination among the TWGs, a Gvt- Donor Coordination Committee (GDCC) has been established to provide policy guidance, to set priorities & to propose measures to resolve issues raised by the TWGs.  The RGC has decided to assume full ownership & leadership of the annual aid mobilization consultation by transforming the Consultative Group (CG) process to a Cambodia Development Cooperation Forum (CDCF) from 2007.

15. 15 PROGRESS IN ACHIEVING CMDG (cont’d) Partnership for Sustainable development:  The cooperation between Government & civil society for reducing poverty & achieving CMDGs is also a priority area for Government.  It is a rapid growing & there is a danger that debt will absorb more & more the limited public budget, thereby crowing out resources to invest in development.  There is a need to increase the grant share in ODA & to use loans for investment which higher expected economic returns

16. 16 ACHIEVEMENT & GAPS IN REALIZING CMDG  Cambodia is on track to achieve at 23 of 59 CMDG targets for which information is available.  It is not track in case of many critical areas relating to poverty reduction, food security, education, health, maternal mortality, environment degradation & sustainable socio- economic development.  There are significant discrepancies among provinces in term of progress toward CMDG and the situation varies from one CMDG to another.

17. 17 NATIONAL STRATEGIC DEVELOPMENT PLAN (NSDP)2006-2010  The NSDP is a single, overarching document containing RGC’s priority goals & strategies to reduce poverty rapidly, and to achieve other CMDGs & other socio-economic development goals for the benefit of all Cambodians.  The RGC’s long term vision is to achieve a socially cohesive, educationally advanced, & culturally vibrant Cambodia without poverty, illeteracy & ill health where Cambodians live in harmony free of hunger, inequality, exclusion & vulnerability.

18. 18 NATIONAL STRATEGIC DEVELOPMENT PLAN (NSDP)2006-2010 (cont’d)  The RGC is fully committed to some basic principles for taken the country forward, such as: - strict adherence to democracy in governance; - ensure political stability, rule of law, equity & social order; - ensure macro-economic stability - create & maintain key infrastructure as well as - a conducive climate for private sector to flourish;and - provide essential social services for human capital formation & enhancement.

19. 19 NATIONAL STRATEGIC DEVELOPMENT PLAN (NSDP)2006-2010 (cont’d)  During the next five years 2006-2010, demands prioritization of clear goals & measurable targets.  Highest priority is poverty reduction & progress towards achieving CMDG targets by 2015  Sub-goals & disaggregated & detailed targets & plans to achieve them will be spelt out in greater precision in sectoral & sub-national plans.  Progress of NSDP will be annually reviewed & monitored.There are 15 macro-goals (7 MDG macro-goals) & 43 critical indicators (28 MDG critical indicators) to be monitor annually.

20. 20 DEVELOPMENT CHALLENGES  The First Development Challenge is to maintain a high growth rate to generate productive employment & income earning opportunity for an ever-growing population  The First Development Challenge is to pursue a growth strategy, which will benefit all Cambodian - Pro-poor growth policies through investment in sectors where the poor are concentrated & can find decent work & sustainable employment; - growth should translate into increased Government revenue and ;

21. 21 DEVELOPMENT CHALLENGES (cont’d) - Growth Should be allocated to social protection programs for those unable to seize economic opportunities.  Cambodia ‘s progress toward CMDG is constrained by a number of impediments.  An important one is the chronic shortage of investment funds to meet its priority requirements.  There is a danger of debt service that will absorb more and more the limited of national budget.

22. 22 WAY FORWARD  If Cambodia is to achieve CMDG, greater financial flows through aid, reduced debt servicing and increased current account inflows, as outlined in MDG 8 are critical to bridge the resource gaps & foster the country’s required growth.  Such assistance needs to ensure that donors support is aligned to Cambodia national priorities, that it is managed for results & that there is mutual accountability between RGC & EDPs.  Better access to international market, especially in developed countries.

23. 23 WAY FORWARD (cont’d)  Enhance market access for its overseas workers.  The granting of quota-free & duty-free schemes for all dutiable Cambodian products that will contribute to higher export earning & make trade for development & CMDG.  Complement from EDPs and global community to its pro-CMDG national strategy will require financial, technical & other supports and by creating win-win partnerships.  A collective effort is the key to achieving CMDG & ensuring sustained growth & stability in Cambodia.

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