Download 3. Summary of the Action Programme

SUMMARY
Annual Action Programme part 1 covered by the programming
document Country Strategy Paper (CSP) 2007-2013 and Multiannual Indicative Programme (MIP) 2011–2013 for the
Development Cooperation Instrument in favour of Cambodia for
2012
1.
Identification
Budget heading
19.100101
Total cost
EUR 26,000,000
EU Contribution: EUR 20,000,000
Royal Government of Cambodia: EUR 6,000,000 – parallel cofinancing
Legal basis
2.
EC Regulation No. 1905/2006 of 18 December 2006
Country background
The Kingdom of Cambodia (henceforth Cambodia) is located in the southern portion
of the Indochina Peninsula in Southeast Asia. It has a population of over 14 million,
75% of which still lives in the rural areas. Although all social indicators have
improved substantially across the entire population for the last decade, 52 % of the
population still suffer from multiple deprivations (education, health and standard of
living criteria) and 30 % still live in extreme poverty, making it still one of the least
developed countries in Southeast Asia. Cambodia’s Human Development Index
(HDI) value for 2011 was 0.523 positioning the country at 139 out of 187.
Rebuilding from decades of civil war, Cambodia has seen rapid progress in the
economic and human resource areas. The country has had one of the best economic
records in Asia, with economic growth growing by 6.0% on average for the last 10
years. Long-standing challenges however remain for its narrowly-based economy
(garments and construction; tourism; agriculture) such as accelerating economic
diversification, expanding the fiscal space, addressing governance and environmental
issues, and strengthening the investment climate.
3.
Summary of the Action Programme
1) Background:
Cambodia remains a predominantly agrarian society with approximately 70% of the
population engaged in agriculture and 60% depending upon the land for its daily
subsistence.
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Agriculture accounts for 33.4% of national Gross Domestic Product (GDP). The
main agricultural product is rice. However, rice constitutes only 25% of the
agricultural GDP while livestock/fisheries constitute 40 % of this GDP and forestry
9%. Livestock and fisheries provide most of the actual income of smallholders as
well as the main source of proteins for all Cambodians.
Agriculture is thus a key driver of Cambodia’s economic growth (the sector
expanded by 4.5% on average annually over the past 12 years) and poverty
alleviation.
However, competitiveness of the sector, vis-à-vis neighbouring countries, is
constrained by a relative high-cost environment as well as by administrative
constraints and rent seeking activities. These features are overall relevant for the
agriculture sector, but particularly so for the sub-sectors of fisheries and livestock.
2) Cooperation related policy of the beneficiary country
The main features of national development policy in Cambodia are embodied in the
Rectangular Strategy (RS) 2007-2013, with its first strategic “growth rectangles”
focusing on the enhancement of the agricultural sector, and in the National Strategic
Development Plans (NSDP).
The Ministry of Agriculture, Forestry and Fisheries (MAFF) has drafted Agricultural
Sector Strategic Development Plans (ASSDP) aligned on the NSDP. These plans
cover all sub-sectors - inter alia rice and other crops' production; animal health and
production; rubber and commercial crops production; fisheries; and forestry - and
include detailed budgets and general output/outcome indicators. A 20-year ASSDP
(2014-2034) is currently at initial stages of development.
The fisheries sub-sector development is guided by a 10-year Strategic Planning
Framework for Fisheries (SPF) 2010-2019 endorsed by the Ministry and supported
by most Development Partners. It lays out the strategic vision of the fishery sector,
aligned to the NSDP and the RS.
The livestock sub-sector however does not presently have a clear strategy in place
but one is being developed to be approved by the end of 2012.
3) Coherence with the programming documents:
The overarching objective of the Country Strategy Paper (CSP) 2007-2013 for
Cambodia is the sustainable reduction of poverty. The strategy defines two focal
areas: Support to the National Strategic Development Plan (NSDP) and Support to
Basic Education. The Multiannual Indicative Plan (MIP) 2011-2013 is confirming
this focus, including the introduction of a sector programme-based approach in
agriculture under the support to the NSDP at the request of the Cambodian
Government.
4) Identified actions
The action covered by this Annual Action Programme part 1 will be implemented as
a Sector Policy Support Programme (SPSP).
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The overall objective of this proposed SPSP will be to contribute significantly to the
achievement of the NSDP strategic goal for the agriculture sector, while ensuring
that the growth in this sector is achieved in an equitable, inclusive, environmentally
responsible and sustainable way for the benefit of the entire rural population of
Cambodia.
The specific objective is to trigger sustainable and inclusive socio-economic growth
in the fisheries and livestock sub-sectors, through adequate support by Government,
civil society and development partners in line with Programme-Based Approach
principles.
5) Expected results:
The present sector programme will be articulated around three main result areas:
1. Ministry of Agriculture sector policy and systems development
2. Support to sustainable fisheries development
3. Support to sustainable livestock development
It will support the national strategies (RS/NSDP) sectoral goal for agriculture "to
ensure food security, increase income, create employment and improve nutrition
status for all people by improving the productivity and diversification and
commercialisation of agriculture with environmentally sound protection and food
safety".
The programme thus adheres to the fundamental Development Cooperation
Instrument and Agenda for Change objectives of eradicating poverty, inclusive
sustainable growth and achievement of Millennium Development Goals in
Cambodia.
6) Past EU assistance and lessons learnt.
The mid-term review of the EU Cambodia MIP 2007-2010 concluded that the next
MIP 2011-2013 should continue to focus on supporting the NSDP and basic
education with the objective of contributing to poverty alleviation in Cambodia, with
a renewed priority for coordination with other donors, promotion of use of country
systems, government leadership and ownership as well as an effective policy
dialogue.
7) Complementary actions/donor coordination.
Coordination and synergies with Government and other Development Partners will
be ensured through existing country mechanisms: joint sector planning/monitoring
and coordination between partners and Government takes place through Technical
Working Groups, which feed into the Government-Donor Coordinating Committee
and Cambodia Development Cooperation Forum, the highest policy dialogue forum.
This programme will also be complementary to the EU thematic programs currently
implemented in the country and in the region, as well as the Chemical, Biological,
Radiological and Nuclear CBRN Centre of Excellence initiative to, which Cambodia
participates.
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4.
Communication and visibility
Communication and visibility will be mainstreamed in the programme activities in
line with the EU Communication and Visibility guidelines.
In addition, a separate budget envelope has been kept for ad-hoc EU visibility
actions, such as support for national events in the sector (National Fish Day or
similar).
5.
Cost and financing
Promotion of inclusive and sustainable growth in the
Agricultural Sector: Fisheries and Livestock (EU contribution)
EUR 20 million
Total amount of the action programme part 1
EUR 20 million
Cumulated changes of the allocations to the specific actions not exceeding 20% of
the maximum contribution of the European Union are not considered to be
substantial provided that they do not significantly affect the nature and objectives of
the Annual Action Programme. This may include an increase of the maximum
contribution of the European Union up to 20%.
The Committee is invited to give its opinion on the attached Annual Action
Programme part 1 for Cambodia.
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