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Cambodia
National Poverty Reduction Strategy

December 20, 2002

Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document is being made available on the IMF website by agreement with the member country as a service to users of the IMF website.

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Contents

Foreword

Executive Summary

Table of Contents

List of Tables

List of Figures

Acronyms

Chapter 1: Vision for Poverty Reduction

Chapter 2: Process of Participation

    2.1 Introduction
    2.2 Lessons Learned from SEDPII and IPRSP
    2.3 The Structure for Participation: The Council for Social Development and Its Secretariat, and Consultation Mechanisms
    2.3.1 Engaging the Stakeholders: The Participation Process

      National Workshops
      The Consultative Group Meeting, June 2002
      Sector and Line Ministries
      Provincial Consultations
      Consultations with the Poor
      Forum on NPRS Monitoring

    2.3.2 Civil Society Stakeholders: NGOs, the Private Sector and Donor Participation in the NPRS

      NGOs Forum
      The Private Sector
      Donor Involvement
      Parliamentarians
      Trade Unions
      MEDIA
      The NPRS Trust Fund Grant

    2.4 Conclusion

Chapter 3: Dimensions of Poverty

    3.1 Multiple Dimensions of Poverty
    3.1.1 Lack of Opportunities
    3.1.2 Lack of Capabilities

      Ill Health
      Mortality and Malnutrition
      Lack of Education and Skills
      Lack of Access to Basic Infrastructure

    3.1.3 Social Exclusion
    3.1.4 Lack of Good Governance
    3.1.5 Vulnerability

      Food Insecurity
      Street Children
      HIV/AIDS
      Natural Disasters
      Landmines and UXOs
      Optimisation of Development Benefit
      Lack of Social Capital
      Spatial Concentration of Poverty

    3.2 Definition of Income/Expenditure Poverty
    3.2.1 Poverty Lines
    3.2.2 Poverty Indices
    3.3 Income/Expenditure Poverty Estimates
    3.4 Gender Disparities

Chapter 4: Priority Poverty Reduction Actions

    4.1 Promoting Opportunities
    4.1.1 Maintaining Macroeconomic Stability

      Economic Growth
      Monetary, Fiscal And External Policy

    4.1.2 Improving Rural Livelihoods

      Improved Access to Land
      Promoting Agricultural Development
      The Promotion of One Village One Product Movement
      Water Resource Management and Irrigation and Drainage Development
      Roads and Transport

    4.2 Expanding Job Opportunities
    4.2.1 Private Sector Development
    4.2.2 Trade Development
    4.2.3 Tourism Development
    4.2.4 Post and Telecommunications
    4.2.5 Micro-Finance
    4.2.6 Labour and Vocational Training
    4.2.7 Industrial Development

      Energy Development

    4.2.8 Urban Development

      Number of Households/People Targeted in 2003-2005 Period

    4.3 Improving Capabilities
    4.3.1 Health
    4.3.2 Nutrition
    4.3.3 Education
    4.3.4 Safe Water and Sanitation
    4.4 Strengthening Institutions and Improving Governance
    4.4.1 Reforming the Justice Sector
    4.4.2 Reforming the Administration and the Civil Service

      Pay Reform
      The Approach

    4.4.3 Decentralization and Local Governance
    4.4.4 Anti-Corruption
    4.5 Reducing Vulnerability and Strengthening Social Inclusion
    4.5.1 Food Security
    4.5.2 Social Protection and the Fight Against Human Trafficking
    4.5.3 HIV/AIDS
    4.5.4 Disasters Management
    4.5.5 Mine Action: Action Against Land Mines & Unexploded Ordnance
    4.5.6 Sustainable Management and Use of Natural Resources and the Environment
    4.5.7 Ethnic Minorities
    4.6 Promoting Gender Equity

Chapter 5: Public Resource Requirement and Management

    5.1 Revenue mobilisation
    5.2 Estimated needs and proposed expenditure allocations
    5.3 Measures to Improve Budget Management (Including Execution/Disbursement)

      From PAP to Broad-Based Budget Reform

    5.4 Links of the NPRS to the Annual Budget and the Medium Term Expenditure Framework

      Medium Term Budget Framework
      Financing Decentralisation
      General Administration and Local Development Components

Chapter 6: Monitoring and Evaluation

    6.1 Institutional Arrangements for Monitoring and Evaluation
    6.1.1 Ministry of Planning
    6.1.2 Council for Social Development
    6.1.3 General Secretariat of Council for Social Development
    6.1.4 Poverty Monitoring and Analysis Technical Unit
    6.1.5 Ministry of Economy and Finance
    6.1.6 Line Ministries
    6.1.7 Key Line Ministries
    6.1.8 Parliament/Senate
    6.1.9 Commune Councils and Civil Society
    6.1.10 Non-Governmental Organizations
    6.1.11 Private Sector
    6.1.12 The Media
    6.2 NPRS Monitoring
    6.2.1 NPRS Indicators
    6.2.2 NPRS Targets
    6.3 Poverty Impact Evaluation
    6.4 Annual Progress Reports on Implementation
    6.5 Challenges for NPRS Monitoring and Evaluation

Chapter 7: Conclusion and Next Steps

Annex 1:

Poverty Map of Cambodia (2002)

Annex 2:

Provincial Level Estimate of Poverty Measures

Annex 3:

Action Plan Matrix

Annex 4:

Millennium Development Goals
   

List of Tables
   

Table 1.1:

Targets for Poverty Reduction (in % unless otherwise indicated)

Table 3.1:

Employment by Economic Sector

Table 3.2:

Comparisons of Key Human Development Indicators in Cambodia and the Western Pacific Region, 1998

Table 3.3:

Reasons for Dropping Out from School

Table 3.4:

Monetary Value of Poverty Lines

Table 3.5:

Headcount Indices

Table 3.6:

The average value and budget shares of selected commodities in household consumption

Table 3.7:

Selected Poverty Indicators

Table 4.1:

Summary Approach to Cambodia's National Poverty Reduction Strategy, 2002-2005

Table 4.2:

Cambodia: Key Macroeconomic Indicators, 2000-2007

Table 4.3:

Cambodia: Medium Term Fiscal Plan, 2003-2005

Table 4.4:

Proposed Intergovernmental Transfers to Communes, 2001-2005

Table 5.1:

Rising Share of Priority Ministries, Falling Share of Defence and Security

Table 5.2:

Budget Expenditure by Ministry 1999-2003

Table 5.3:

The Cost of NPRS Action Plans for 2003-2005

Table 5.4:

Total Expenditure and Allocable Ceiling

Table 5.5:

Allocation by Sector and Priority Ministries

Table 5.6:

Government Funding for the Education Sector 2001-2005

Table 5.7:

Selected Performance Indicators and Targets 2003-2005

Table 5.8:

Government Recurrent Budget for FY 2003-2005 (Health)

Table 6.1:

Indicators to Be Used for NPRS Monitoring and Evaluation
   

List of Figures
   

Figure 1:

Benefits Incidence Consumption Group (RGC spending)

Figure 2:

Channel of Commune/Sangkat Fund

Figure 3:

Schematic Chart for Institutional Arrangement for Poverty Monitoring and Evaluation
   

List of Boxes
   

Box 1:

Children of the Poor and Opportunities for Education

Box 2:

When was Coorup0tion known to emerge in contemporary Cambodia?

Box 3:

How much does corruption costs to Cambodia?

Box 4:

The Poor and Natural Disasters

Box 5:

Which Poverty HCI should be used?

Box 6:

Population challenges

Box 7:

Debt sustainability Analysis

Box 8:

Village Development Committees and Empowerment at Grassroots levels

Box 9:

Linking sector Strategies to the budget and MTEF: The Case of Education

Box 10:

ADD and PAP

Box 11:

The Selection of Indicator and Targets in the Case of Education