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Intervention by: H.E. NUTH CHANSOKHA, Under Secretary of State and Alternative National Focal Point Ministry of Planning, Kingdom of Cambodia at Workshop of National Focal Points for LDCs on Implementation the Istanbul Program of Action 15 October 2012, UN Headquarter, New York, USA Mr. Chairman/ Madam Chairperson Excellencies, Ladies and Gentlemen, 1. At the outset, on behalf of Cambodian delegation, I would like to congratulate you, Mr. Chairman on your election as Chairman of the Workshop of NFPs for LDCs . May I also express my sincere thanks to the United Nations for organizing this workshop and the invitation extended to the Cambodian delegation to participate at the time. 2. The Royal Government of Cambodia (RGC) fully recognizes and embraces the Istanbul Program of Action 2011-2020 adopted at the Fourth United Nations Conference on the LDCs. 3. In response to this Program of Action, the RGC formulated the National Strategic Development Plan Update 2009-2013 to synchronize development planning with the term of the electoral mandate. The RGC has evolved a “Rectangular Strategy”, which has been the hallmark of development in the recent years. The core elements of the Rectangular Strategy Phase II (RS II) are key reforms in public administration, legal and judicial systems, armed forces reforms, focusing on peace and political stability, partnerships in development, a favourable macroeconomic environment, and the country’s integration with the region and the world. Along with the central elements, agriculture and its allied activities, infrastructure, investments into human-capital, civil society engagement and private sector development are sectoral priorities of RS II. Mr. Chairman 4. It is my privilege to present to this Workshop about the brief progress report in the context of implementation of the Istanbul Program of Action, as follow: 5. Cambodia’s GDP per capita is estimated about $ 901 in 2011. During 2004-2007, the annul economic growth rate exceeded 10%. Growth rate slightly declined to 6.7% in 2008, and with a sharp downturn in 2009 (0.1%) due to the global financial crisis. In 2010 and 2011, growth bounced back to 6%-7% per annum. The inflation increase to two-digit figure in 2008, but at present it has decreased to between 5%-6%; and the exchange rate of Riel to dollar has not fluctuated more than 5%. In 2009, the preliminary forecast showed that the proportion of people living below the poverty line is about 20%. 6. The RGC promulgated a comprehensive Anti-corruption Law in 2010 and it gives the jurisdiction to the RG to enforce this law. Various legislative and public administrative reform programs are taking place. The important point that should be noted is the role of district-commune councils in implementing development programs in the framework of deconcentration and decentralization that are worth between USD 70 million to USD 90 Page 1 of 3 million per annum. For more detail progresses of the macroeconomic and social developments have been shown in Cambodia brief report. Key Challenges 7. As the external factors have keep on evolving, there are many challenges Cambodia will be facing. Among them, readiness for Cambodia’s economic integration into the ASEAN, to achieve CMDGs and Cambodia must also be ready for moving Cambodia out of the LDC status, i.e. live with fewer grants/concessional loans and no easy access to preferential markets for export. Finally, global recession and the European sovereign debt crisis will continue taking their own toll, impacting small developing countries like Cambodia. 8. The internal challenges, Cambodia has had to deal with: - paucity of physical and human resources - the need to improve the coordination between different ministries/agencies in the government- the need to further the deconcentration and decentralization (D&D) reforms - the need to minimise reliance on ‘ project based’ approaches and graduate to ‘ program/sectoral-based ’ approaches - and the need to strengthen Monitoring and Evaluation. Way Forward 9. The RGC recognizes that NSDP plays a central role as the main policy tool in implementing national development visions pronounced in political platform and national development strategies of the RG. At the same time, through NSDP the RGC aims to sustain the fruits of efforts achieved until so far. The RGC will prepare two important policy documents: - First the new NSDP 2014-2018, which will be prepared next year. This policy document will review progress, identify the main lessons to be learned and will guide us on where resources are to be allocated and – the second is the Development Cooperation and Partnership Strategy, which constitutes the rules of the games for our development partnership and serves as a tool for mobilization of the external development resources. In both cases, the principle of transparency will be an important guide in how we will work together in the future and how we must embrace partnerships with other important development actors. 10. Cambodia continues to expand policy cooperation with development partners, and donor communities to strengthen governance, broaden and deepen reform programs in all sectors. These tasks must be consolidated into a single system, interconnected and mutually complimentary for the realization of socio-economic development goals, the management of development work, and the protection of natural resources and environment. 11. Cambodia had initially set 2015 has the target year to graduate out of the leastdeveloped country status. This will probably now be extended to 2018, or 2020 the latest. The implications of this would be at least two: a. The country will not automatically qualify for obtaining grants or highly concessional loans from donor-partner countries and multi/bi-lateral agencies. b. The economy’s exports, typically garments, might not have easy access to many international markets, including non-tariff barriers. Conclusion 12. The achievement of the overall peace, political stability and successful implementation of the Rectangular Strategic Policy, Cambodia has experienced high rate of socio-economic development and growth with GDP growth averaging 10% per year in a decade 1998-2008, and 6%-7% of GDP growth in 2010-2011, thereby achieving the Page 2 of 3 Government’s poverty reduction is excess of 1% per year. In this regard, the country has ensured food security, through a priority water policy and management adaptive to flood and drought, and a variety of rice seed adapting to climate change. Note that Cambodia recently exported ½ million ton of rice and plans to export 1 million tons of rice in 2015. At the same time, Cambodia has fully integrated itself into region and the world and is actively engaging in various international cooperation based on the principle of equal status and equal rights. 13. The Royal Government of Cambodia recognizes that the achievements were accomplished because of the generous contribution from all of Cambodia’s cooperation partners. It also reflects the gradual improvement in the efficient and effective utilization of all kinds of cooperation financing that Cambodia has received from its external cooperation partners. 14. On this auspicious occasion, on behalf of the Cambodian delegation I would like to express our heart-felt gratitude to all development partners for their invaluable and ongoing efforts to the sustainable development, poverty reduction and the development initiatives in Cambodia. Mr. Chairman 15. Finally, the RGC remains highly committed to accelerate the achievements of CMDGs, while addressing climate change and gender considerations by balancing ecological conservation and safety with sustained socio-economic development of the country. 16. Also, Cambodia is convinced that all the LDCs will be able to overcome the existing constraints and challenges to sustainable development when the Istanbul Program of Action on LDCs for the period from 2011-2020 is fully and effectively implemented with sound financial and strong technical assistance from the international community, thus helping the LDCs achieve their 2020 objectives. Thank you very much Mr. Chairman for your kind attention. 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