RESPONDING TO THE IMPACT OF THE ECONOMIC CRISIS, LAND, AND LEGAL AND JUDICIAL REFORM HIGH ON THE AGENDA FOR GOVERNMENT-DEVELOPMENT PARTNER MEETING

The British Ambassador participated in the twelfth Government-Development Partner Cooperation Committee on 29 September 2009 and joined other ambassadors and heads of development agencies in issuing the following statement on the outcome of the meeting.

The Government-Development Partner Coordination Committee (GDCC) - 29 September 2009

Statement by development partners

Senior ministers and officials from line ministries and Cambodia's development partner community, along with representatives of civil society, came together this morning for the fifteenth Government-Development Partner Coordination Committee (GDCC) meeting.

The high-level forum, which is chaired by HE Keat Chhon, Deputy Prime Minister and Minister of Economy and Finance and convened by the Council for the Development of Cambodia (CDC), provided an important opportunity for Government and development partners to review progress on development goals and the response to the impact of the economic crisis, and to discuss other issues of priority concern including land and governance and accountability with a focus on legal and judicial reform.

"This meeting of the GDCC is taking place at a particularly critical juncture as we are seeing more clearly the impacts from the global economic downturn and the slowdown in Cambodia's economic growth. The impact of the global economic crisis makes dealing with a number of key challenges such as land and governance much more urgent. It is an important moment to take stock jointly of development achievements and progress on priority reforms to date and the challenges that remain, and to discuss with the Royal Government how the development partners can support the Government to overcome these challenges," said World Bank Country Manager Qimiao Fan.

Following the Government's overview of the National Strategic Development Plan Update 2009-2013, development partners welcomed the news that social safety nets will be integrated into the NSDP as a cross-cutting sectoral policy issue and that an inter-Ministerial structure led by Ministry of Planning will be established to harmonize planning, public investment and official development assistance.

"Better integration is particularly critical in the context of the current global crisis and its impact on Cambodia, when it is essential that all available resources are allocated and managed with maximum efficiency and effectiveness. The extension of the National Strategic Development Plan for the period 2009-2013 provides a specific opportunity to focus attention on practical steps towards integration and to relate this to the achievement of national goals," expressed Douglas Broderick, UN Resident Coordinator, on behalf of all development partners.

The Government Chairs of all 19 Technical Working Groups and their development partner co-facilitators contributed to a joint progress report, which gave particular emphasis to programmes and projects critical to Cambodia's response to the global economic crisis. In responding to the impacts of the economic crisis, development partners agreed with the Royal Government on the need to rationalize non-priority spending and protect and increase budget allocation to priority social sectors such as Health and Education. The important work being done to develop a social safety net strategy was highlighted.

Noting the many opportunities to improve conditions for sustained growth available to Cambodia, the development partners emphasized the opportunity for Cambodia to improve its investment climate.

"Development partners agree with the Royal Government that the prospect for Cambodia is a modest recovery perhaps in the order of three to five percent annual growth for 2010 - well below the 10 percent of the past decade. It is vital for Cambodia to address the deeper roots of this year's slowdown, by increasing export diversification, increasing competitiveness, realizing the potential of agri-business, strengthening the tourism sector and improving the business environment," HE Ambassador Jean-François Desmazières, Ambassador of France said in his statement on behalf of all development partners.

With the impact of the economic crisis, a number of key challenges such as land and governance have become more urgent. Recalling the joint development partner statement issued in July that called for a halt to forced evictions until a fair and transparent mechanism for resolving land disputes is in place and a comprehensive resettlement policy is developed, HE Ambassador Frank Mann, Ambassador of Germany recognized that the land sector presents a complex challenge for both the Royal Government and development partners and reiterated development partners' commitment to work with the Government to help address land issues in a just and equitable manner and to ensure that the rights of poor people are promoted and protected. He highlighted, on behalf of all development partners, the need for a coordinated inter-ministerial approach building on transparent processes for consultation with civil society and development partners when revising policy and legal framework.

"Opportunities for ordinary Cambodians to benefit from sustainable and inclusive economic growth to a large degree rest on the land sector. In the spirit of partnership and mutual accountability the development partners [are committed] to support the Royal Government of Cambodia to move forward with the drafting and implementation of an effective legal and policy framework on evictions, expropriations and resettlements," Ambassador Mann said during his presentation to the forum.

The Government updated the meeting that all stakeholders, including civil society, will be invited to consultations on the Housing Policy, the Spatial Planning Policy, and the Policy Directives on Urban Squatters Settlement that are being developed by the Ministry of Land Management, Urban Planning and Construction.

In the area of governance and accountability, HE Ambassador Margaret Adamson, Ambassador of Australia, commended the Royal Government for its progress on two laws regularly discussed by Government and development partners; development partners look forward to the passage of the Penal Code by the National Assembly and the submission of the Anti-Corruption Law to the Assembly in the coming weeks. Ambassador Adamson voiced support for a strong and effective democracy in Cambodia and highlighted, on behalf of all development partners, the need for all Cambodians to be given full protection before the law, according to their Constitutional rights.

"Development partners strongly endorse the Prime Minister's statement that effective, functioning courts led by an independent judiciary are a cornerstone of democracy, critical to economic development and improving the lives of the poor. Development partners stand ready to continue our support to implement key reforms in this area including to finalize the three basic laws that support the independence of the judiciary as enshrined in Cambodia's Constitution," said Ambassador Adamson.

Overall, Government and development partners enjoyed an open and constructive exchange of views on the challenges faced in meeting Cambodia's development goals. A key outcome is the joint commitment by Government and development partners to continue this dialogue in the Technical Working Groups. Development partners supported the Government's call for Technical Working Groups to examine carefully the constraints in implementation of programmes and projects critical in responding to the impact of the economic crisis.

Development partners are committed to continue engagement on the critical issues discussed today, including national strategic development planning, land and governance and accountability, supporting the Government to position Cambodia on a competitive, equitable and sustainable development path that benefits all Cambodians.

Read more about:

• Statement on Land
• Statement on Governance and Accountability with a Focus on Legal and Judicial Reform
• Statement on Macroeconomic Developments and Their Socio-Economic Impacts

on the World Bank website.

Background:

The Government-Development Partner Coordination Committee (GDCC) meeting happens two or three times per year and is chaired by the Royal Government of Cambodia and coordinated by the Cambodia Rehabilitation and Development Board with facilitation support from the World Bank. The GDCC is a high-level forum for Government-Development Partner coordination, dialogue and information sharing on policies related to socio-economic development of Cambodia.

Technical Working Groups (TWGs) are technical and operational forums chaired by Government and co-facilitated by development partners to discuss, agree upon and pursue clearly defined and measurable targets at the sector level, which contribute to the overall implementation of the National Strategic Development Plan.

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