Samdech Akka Moha Sena Padei Techo HUN SEN

Prime Minister of the Kingdom of Cambodia

FOREWORD

In the first two years and a half of implementing the National Strategic Development Plan, 2006-2010 (NSDP), Cambodia has witnessed impressive progress in most areas of socio-economic development in order to build human resources, develop institutional capacity, strengthen infrastructure and create enabling environment to attract both local and foreign investment aiming at ensuring high economic growth and poverty alleviation.

Cambodia has integrated itself into the region and the world and played active role in the dynamic process in the capacity of equal footing and equal rights in various sub-regional, regional, intraregional and global organizations. Along with that, based on the foundation of the careful and consistent implementation of the public financial policy and monetary policy and the free market economy, the Royal Government has ensured stable macroeconomic management and favourable condition for development. High economic growth of two-digit during the last four years created jobs, increased revenues and improved the production and productivity both quantity and quality as well as reducing the poverty rate from around 35% in the year 2004 to around 30% in late 2007, meaning more than 1% per year. The governance in the country has been improved and the extensiveness and quality of the public services have been continuously enlarged and strengthened in order to responding to the insisting needs of Cambodian people.

In fact, progress has been further promoted to be more extensive and competitive in many sectors and the existing challenges have to be tackled by joint efforts. Many governance reforms have to be further accelerated, that include the declaration and the promulgation of the basic law, the increase of efficiency and effectiveness in implementing policy to provide and manage public goods and services, promotion of the skilled ability, improvement of the coordination amongst various ministries/institutions of the Royal Government as well as the improvement of rural infrastructure. In actuality, further focus on rural areas is a necessity, which will transform this area into a more developed centre for economic growth and will also help decrease the high poverty levels prevalent in such areas. Another issue of concern is to ensure the improvement of important indicators in socio-economic sector, especially in the fields of education, health and gender equity, which needs to be further paid attention.

Generally, the world has recently witnessed many sudden tumultuous changes such as the volatility in the prices of oil and a number of necessity commodities, food shortage and the outbreak of the financial crisis. These developments have had negative impact on millions of people in Asia and have put the hard-earned development and poverty reduction into the risk of sliding backward. In fact, the poor has been first adversely affected by high inflation. This can actually push back the people to slide below the poverty line.

Due to the increasing regional and global integration, Cambodia has also been affected by these events and its economic growth will not be as high as in the recent past. The aforesaid developments are not only big challenges to be overcome, but also provide invaluable opportunities for reshaping Cambodian economic basis to be more sustainable and not to be dependent only on a few sectors quite vulnerable to external shocks. The Royal Government, therefore, places more emphasis on agricultural growth, which has highly untapped potential for rural development, in order to broaden the economic base and make it sustainable in the long run, as well as to rapidly reduce poverty which is high in the rural areas. Results will be achieved through improving agricultural productivity and increasing rural incomes.

The result of the general elections held on 27 July 2008, which was recognized by the local and international public opinions as free, fair, just and transparent has clearly reflected the full and firm support from the majority of people from all walks of lives over the necessity to continue rebuilding the country on the path of development and reforms in all sectors leading to the progress and prosperity. Therefore, the Royal Government of the 4th Legislature is obliged to pursue the historical and noble mission with strong and energetic commitment to speed up the process of development and promote the deep and comprehensive reforms. In this sense, the Royal Government has laid out and determined to successfully implement the “Rectangular Strategy” for Growth, Employment, Equity and Efficiency -- Phase II which is the “Socio-economic Policy Agenda” of the “Political Platform of the Royal Government of the fourth legislature of the National Assembly”.

I am pleased to note that the report of the Mid-Term Review of the National Strategic Development Plan, 2006-2010, captures in a holistic, balanced and objective manner of all developments since January 2006. This document demonstrates a full overview of the Cambodian situation in all aspects and provides guide for future implementation. It stressed on rapid poverty reduction through pro-poor policies and actions. In this regard, it calls for strong and extensive macroeconomic growth, which is more competitive and diversified in the rural areas by depending on the increase of agricultural productivity along with improved land management and accelerated rural development.

The Royal Government has decided that the National Strategic Development Plan, 2006-2010 will be extended to 2013 to make it consistent with “Political Platform of the Royal Government of the fourth legislature of the National Assembly”, in which “Rectangular Strategy--Phase II”, is the socioeconomic agenda. More details of this extension will be reflected in the next review of the NSDP.

This Mid-Term Review (MTR-NSDP) is a critical, action-oriented agenda heading for the immediate action. Success of programmes and political platforms will mainly depend on the optimal use of all resources, external cooperation financing and national budget allocations, in a well-coordinated manner in order to make the use of integrated forces achieve result.

In this regard, I would like to ask all our development partners to fully cooperate by providing all information related to their work and financial outlays to the respective counterpart ministries, including the ongoing Joint Technical Working Groups (TWGs) in order to ensure that the coordinated action for results can be done under Cambodian leadership and ownership.

Phnom Penh, 14 November 2008

Download National Strategic Development Plan English | Khmer