The Supreme National Economic Council (SNEC) was established on September 07^th 2001 to advise the Prime Minister (PM) of the Royal Government of Cambodia (RGC) on socio-economic policy including governance. It is attached to the PM’s Cabinet and is administratively placed under the Council of Ministers. By Royal Decree, the SNEC has four principal functions: (i) coordinate policymaking for domestic and international economic issues, (ii) coordinate economic policy advice for the PM, (iii) ensure that policy decisions and government programs are consistent with the RGC's economic goals, and (iv) monitor implementation of the PM's socioeconomic policy agenda (Rectangular Strategy or RS). SNEC’s organization was strengthened and restructured in 2008. The posts of Permanent Vice Chairman, Secretary General and Deputy Secretaries General created in this initiative will be helpful to improve internal supervision and management and the inter agency coordination activities of SNEC. At present SNEC’s work is conducted by four specialist divisions – administration, governance, economic policy, and social policy each headed by a Director with the rank equivalent to Director General.

 The SNEC organization comprises more than a hundred officials (SNEC members, research assistants and secretariat staffs). The SNEC membership includes senior officials of the RGC, whose policy jurisdictions impact the nation's economy. The SNEC Chairman works in conjunction with these officials to translate strategic directions into policies so that the PM's socioeconomic development objectives are met. The Chairman is supported by a Secretariat of policy specialists in various fields including: (i) economic policy/management (macroeconomic, monetary and fiscal policy); (ii) sectoral policy (agriculture, commerce, energy, financial markets, education, healthcare, labor, and social security/protection/safety nets); and (iii) economic governance (administration, judiciary and land management). The SNEC Secretariat is headed by the Secretary General assisted by 6 Deputy Secretary General. The organization chart of SNEC is at Annex 1.

Since the policy concerns of the country change from time to time, to facilitate flexibility and efficiency of operations, SNEC Secretariat has evolved into a core set of staff comprising 10 – 15 permanent staff assigned to SNEC, 4 – 6 part time staff who work in the various ministries and agencies of the government and are regularly tapped by SNEC for performing core functions and a pool of supplementary staff who are mobilized from time to time to meet specific research requirements. The SNEC’s principal responsibilities include: 

• assisting and advising the PM through the preparation of the periodical Country Economic Report;
• gathering timely and authoritative information and, analyzing and interpreting such information in the light of the RS to determine whether such developments and trends are interfering, or are likely to interfere, with the achievement of RS’s policy agenda, and compiling and submitting to the PM studies relating to such developments and trends;
• evaluating the programs and activities of the RGC in the light of the RS for the purpose of determining the extent to which such programs and activities are contributing or not contributing, to the achievement of RS, and to make recommendations to the PM on the further course of action to be pursued;
• developing and recommending to the PM economic liberalization policies and measures to foster and promote growth, equity and poverty reduction;
• monitoring and analyzing economic trends to forecast severe disruptive economic episodes and recommending measures to ensure that adverse impacts on employment, production, and purchasing power of the riel are minimized through appropriate policy actions; and
• preparing and disseminating studies and reports when they are of public interest. 

NEC has accomplished solid ground work to establish credibility as a think-tank for the PM and the government. SNEC’s research and recommendations have contributed to significant policy changes thereby increasing its institutional relevance and credibility. But, SNEC can not afford to rest on its laurels and should upgrade its capabilities and gear itself to help Cambodia face many daunting challenges. 

During 2000 – 2008 Cambodia maintained a high growth rate and achieved considerable socioeconomic progress. However, following the onset of the global economic crisis in late 2008 Cambodia’s economic growth has been stalled due to shrinking incomes and employment from declining garment exports, tourism and construction investment. Reverting to the high growth scenario and sustaining it will require that Cambodia should effectively address the short term impacts of the crisis and put in place sound structural adjustment policies that will improve Cambodia’s capacity to manage risks and render it more resilient to future shocks. In particular SNEC needs to enhance its capacity to manage policy formulation and articulation in order to ensure timely delivery of the needed policy responses and the sustainability of structural and institutional reform. 

To address these challenges, SNEC needs to have a clear vision and adopt strategic objectives to realize that vision. These objectives must be supported by a robust operational approach and well defined work and financing plans. The institutional development plan of SNEC (IDP) described in sections IV to VIII below has been prepared in line with this framework. This document will be crucial to guide SNEC’s activities in terms of setting its strategic directions, medium term research program, policy communication and coordination, and associated capacity development and financing. 

Download Royal decree in Khmer

Download Sub decree in Khmer