External Assistance to Cambodia
ASSISTANCE PRIOR TO 1989
Following the collapse of the Pol Pot
regime, the PRK signed working agrements
with UNICEF, ICRC, O)dam, and
other agencies for emergency programmes.
At the same time a large-scale relief effort was
set in motion to meet the needs of the hundreds
of thousands of Cambodians who had
fled into Thailand.
Faced with the extent of the destruction,
donors however gave generously during this
period to a broad range of emergency programmes
which included essential rehabilitation
components. The ICRC, UNICEF, WFP,
FAO and the major NGO consortia provided
a wide range of supplies from basic agricultural
inputs to tractors, spare parts for industry
to transport equipment, basic medical
supplies to hospital equipment, pens and
school notebooks to Khmer typewriters.
Rarely has the world community been called
upon to support nationwide rehabilitation on
this scale in the name of meeting 'emergency
needs.' From 1979 to 1981 official bilateral
and multilateral emergency programmes provided
USD 370 million in assistance to
Cambodia. The Soviet Union alone provided
another USD 300 million. NGO programmes
contributed more than USD 100 million.
From 1981 on until 1989, aid policies reflected
the prevailing political stalemate, with the
Soviet bloc providing substantial reconstruction
assistance, military aid, and concessional
loans in budget support to the PRK. This
assistance ranged from the equivalent of USD
85 million in 1983 to USD 120 million by the
end of the decade. The assistance from UN
agencies shrank dramatically, with programmes
in the mid-1980's totalling about
USD 7 million. NGO's were the principal
vehicle for bilateral support from Western
countries in the reconstruction phase that was
commencing. A UN report estimates NGO
expenditure by a dozen agencies at USD 2
million in 1984. By the end of the decade
approximately 25 NGO's were programming
about USD 15 million annually in Cambodia.
Western donors, Japan, China, and the
ASEAN countries complemented their policy
of isolating Cambodia by offering to resettle
Cambodian refugees in third countries and,
once resettlement was closed as an option, by
meeting the basic needs of 375,000
Cambodians in camps along the Thai-
Cambodian border.
NEEDS ASSESSMENT WORK: 1989-1992
The prospect of the Cambodian factions
reaching agreement to end their fighting
and the military withdrawal of
Vietnam cleared the way for several countries
and international organizations to establish
an official presence in Phnom Penh. Thus, for
instance, UNDP opened a liaison office in
1989, and bilateral agencies progressively
entered the scene with varying forms of representation
falling short of diplomatic recognation.
As little detailed knowledge of pre-
vailing conditions in the country existed
within most of the agencies concerned, there
was an immediate need for undertaking a
more systematic assessment of requirements.
Over the next two years a plethora of techni-
Over the next two years a plethora of techni-
cal and programming missions visited
Cambodia. Bilateral missions were fielded by
Australia, Japan, as well as by other countries.
UNDP alone sent seven technical missions
to Cambodia during this period, three
of which were devoted to the country's failing
infrastructure. The UN agencies that had
been designated to play a role in implementing
the future peace agreement, led by the
Office of the Special Repre5entative of the
Secretary-General for Cambodia, and other
multilateral institutions wishing to get in on
the act, moved in with deliberate speed. The
number of NGO's seeking to establish them-
selves kept swelling.
UNHCR focussed on preparations for receiving
refugees from across the border, UNDP
on the state of the infrastructure and on how
refugee reintegration could be accelerated
and linked to more lasting development concerns;
WFP studied the predicament of the
internally displaced; and the ADB came in to
lay the groundwork for an emergency rehabilitation
loan. The list of missions fielded by
various bodies reviewing Cambodia's needs
from their own particular vantage points is
indeed extensive: about 50 programming missions,
if individual consultant visits are
included, flew in and out of Phnom Penh in
the space of two years. It was an influx with
which the de facto State of Cambodia (SOC)
government was hardly able to cope let alone
advise on any regime of priorities, for action.
NGO's staked out positions in different parts
of the country without much consideration
being given to the need for ensuring that
their presence in the rural areas was evenly
spread. With a government whose authority
was on the wane, it was left to the United
Nations - after the peace agreement had been
signed - to take on a coordinating role within
the UNTAC framework.
IMPACT OF EXTERNAL AID ON PEACE PROCESS
The signatories to the Paris agreement recognized
the importance Of external aid to
achieve peace and reconciliation. The
Declaration on the Rehabilitation and Reconstruction
of Cambodia' formed an integral part of the
Agreements on a Comprehensive Political Settlement
of the Cambodian Conflict. It defined the parameters
and the principles for humanitarian action after the
peace agreement, and mandated the following key sectors
for immediate attention: food security, health,
housing, training, education, the transport
network and the restoration of basic
infrastructure and public utilities.
As important are the principles which were to under-
lie the international to rebuild Cambodia:
SOVEREIGNTY: the Declaration states explicitly that
the Cambodian people and 'the government formed
after free and fair elections should be primarily
responsible for determining reconstruction needs.
RESPECT FOR LOCAL CAPACITY : assistance to Cambodia
should "complement and supplement local resources".
BALANCE: assistance to Cambodia should benefit all
areas, "especially the more disadvantaged".
The accords thus laid a sound foundation for emergency
and rehabilitation assistance to give impetus to
the peace process. The actual implementation of the
aid effort contributed to this in a number of ways.
First, the survival needs of the returnees and internally
displaced were met, primarily through the provision
of food rations by WFP and the Cambodian Red Cross.
Second, some essential infrastructure was restored,
especially in areas expected to receive the majority of
the returning refugees, with the upgrading of secondary
and tertiary roads, and the construction of village
schools, clinics, and wells. The latter were partially
intended to make local populations feel well disposed
towards the returnees in offering them homes,
land, and other resources. Third, the large-scale inter-
national aid presence contributed to the sense, especially
in the initial period, that a new era was dawning
in Cambodia when it might be possible to collaborate-
in peace for the reconstruction of the country.
THE UNITED NATIONS APPEAL AND ICORC
In April 1992 the UN Secretary-
General issued a consolidated
appeal for funds to cover
Cambodia's immediate needs and national
rehabilitation. It requested the international
community to provide
resources to the tune of USD
595 million, through bilateral or
multilateral channels, for a
coordinated set of measures
designed to strengthen the
peace process and launch
Cambodia on the path of economic recovery.
In part the appeal was based on
the findings of a UNDP mission
in early 1992 which attempted
to structure the full inventory
of neds that had merged in the
course of the earlier special
missions and to draw together
their diverse recommendations.
A second important input was
the review being carried out by
the so-called UN Mission on Economics and
Finance, on which the World Bank was
strongly represented.
The Secretary-General's request included a
provision of USD 116 million to repatriate all
refugees. Their resettlement and reintegration
at home, together with the requirements of
internally displaced persons and demobilized
soldiers, was estimated to cost another USD
82.7 million. This, coupled
with the need to maintain and
restore essential services in
the rural areas, principally in
the fields of health, education,
water supply and agriculture,
costed at USD 119 million,
were over-arching requirements,
amounting to 35 percent of stated needs. USD 150
million were devoted to major
infrastructural works, and
capacity building absorbed
USD 14.5 million. A further
USD 111.8 million was sought
in commodity aid and balance
of payments support to avert
a total breakdown of the civil
service and to put a break on
run-away inflation.
1. The primary objective of the reconstruction of
Cambodia should be the advancement of the
Cambodian nation and people, without discrimination
or prejudice, and with full respect for
human rights and fundamental freedom for all.
The achievement of this objective requires the full
implementation of the comprehensive political settlement.
2. The main responsibility for deciding Cambodia's
reconstruction needs and plans should rest with
the Cambodian people and the government formed
after free and fair elections. No attempt should be
made to impose a development strategy on
Cambodia from any outside source or deter potential
donors from contributing to the reconstruction
of Cambodia.
3. International, regional and bilateral assistance to
Cambodia should be coordinated as much as possible,
complement and supplement local resources
and be made available impartially with full regard
for Cambodia's sovereignty, priorities, institutional
means and absorptive capacity.
4. In the context of the reconstruction effort, economic
aid should benefit all areas of Cambodia, especially
the more disadvantaged, and reach all levels of
society.
5. The implementation of an international aid effort
would have to be phased in over a period that realistically
acknowledges both political and technical
imperatives. It would also necessitate a significant
degree of cooperation between the future
Cambodian Government and bilateral, regional
and international contributors.
6. An important role will be played in rehabilitation
and reconstruction by the United Nations system.
The launching of an international reconstruction
plan and an appeal for contributions should take
place at an appropriate time, so as to ensure its success.
7. No effective programme of national reconstruction
can be initiated without detailed assessments of
Cambodia's human, natural and other economic
assets. It will be necessary for a census to be con-
ducted, developmental priorities identified, and
the availability of resources, internal and external,
determined.
To this end there will be scope for sending to
Cambodia fact finding missions from the United
Nations system, international financial institutions
and other agencies, with the consent of the future
Cambodian Government.
8. With the achievement
of the comprehensive
political settlement, it
is now possible and
desirable to initiate a
process of rehabilitation,
addressing immediate needs, and to lay
the groundwork for the
preparation of medium
and long-term reconstruction plans.
9. For this period of rehabilitation, the
United Nations Secretary-
General is requested to ,
help coordinate the
programme guided by
a person appointed for
this purpose.
10. In this rehabilitation phase, particular attention
will need to be given to food security, health, housing,
training, education, the transport network and
the restoration of Cambodia's existing basic infra-
structure and public utilities.
11. The implementation of a longer-term international
development plan for reconstruction should await
the formation of a government following the elections
and the determination and adoption of its
own policies and priorities.
12. This reconstruction phase should promote
Cambodian entrepreneurship and make use of the
private sector, among other sectors, to help
advance self-sustaining economic growth. It would
also benefit from regional approaches, involving,
inter alia, institutions such as the Economic and
Social Commission for Asia and the Pacific
(ESCAP) and the Mekong Committee, and
Governments within the region; and from participation
by non-governmental organizations
13. In order to harmonize and. monitor the contributions
that will be made by the international community to
the reconstruction of Cambodia after the
formation of a government following the elections,
a 'consultative body, to be called the International
Committee on the Reconstruction of Cambodia
(ICORC), should be set up at an appropriate time
and be open to potential donors and other relevant
parties. The United Nations Secretary-General is
requested to make special arrangements for the
United Nations system to support ICORC in its
work, notably in ensuring a smooth transition from
the rehabilitation to reconstruction phases.
To give political expression to the commitment
of the international community, a ministerial
conference on rehabilitation and reconstruction
of Cambodia was convened in
Tokyo in mid-1992 by the Government of
Japan, providing the occasion to raise
resources for the effort in Cambodia. In terms
of ongoing contributions and new pledges of
support, the meeting tallied up resources
exceeding the stated needs by about $200 mil-
lion, a most successful outcome. Despite this,
some items in the UN appeal were not adequately
covered, while others were over-sub-
scribed. For the two-year period 1992/93,
pledges totalling $880 million were
announced.
As called for in the Peace accords, the Tokyo
meeting also decided to establish a more permanent
coordinating mechanism, named the
International Committee for the
Reconstruction of Cambodia (ICORC),
which was to provide continuity beyond the end of
the UNTAC mandate. ICORC has
held three meetings, the first in
September 1993 in Paris, when further
contributions were recorded raising
total pledges to the level of $1 billion. In
March 1994 members of the aid consortium met again to
consider the in Tokyo, 1994. National Programme
to Rehabilitate and Develop Cambodia presented by the new
government, and a further amount of $780
million was pledged by the donor community.
The third ICORC meeting took place in
March 1995 in Paris in which a further
amount of USD --- was pledged. Given the
nature of its current functions, it is anticipated
that ICORC will evolve into a regular
Consultative Group on Cambodia, similar to
the others serviced by the World Bank-
According to data assembled by UNDP, total
disbursements in 1992 amounted to $255 mil-
lion for 1992 and reached $323 million in
1993, or 65 percent of the Tokyo pledges. In
terms of the use of funds, it is interesting to
note that the social sectors, including relief
(food aid alone represented over $63 million)
and the restoration of services in rural areas,.
absorbed about 57 percent of disbursements.
This result is very consistent with the
Secretary-General's appeal which had sought
53 per cent of all funds for the corresponding
sectors two years earlier.
Analysing disbursements by type of support,
it is worth noting that a full 20 percent of
expenditures represent technical assistance,
with 17 percent going into investment projects.
Programme aid and balance of payments
support accounted for 16 percent of
disbursements, including the settling of
Cambodia's arrears to the IMF.
THE COORDINATION OF EXTERNAL AISSTANCE
In the past, the Government's capaci-
ty to coordinate external assistance
was poor. However, with the creation
of the Council for the Development of
Cambodia (CDC), and of one of its operating
arms - the Rehabilitation and Development
Board - the Royal Government has made
headway in the better coordination of external
assistance. Interministerial networks are
being strengthened with the establishment of
the Interministerial Committee to
Rehabilitate and Develop Cambodia: a one-
stop service. Furthermore, mechanisms were
put in place to coordinate the work of institutional
and bilateral contributors among them-
selves and accelerate required reform with
that of the NGOs more effectively The NGOs
have provided a major pillar for the rehabilitation
of Cambodia, and the Royal
Government wishes to integrate their work
into the mainstream of government policy
more actively.
On June 1995, a Sub-Decree on the
Organization and Functioning of the Council
for the Development of Cambodia (CDC) was
adopted. The CDC's roles and responsibilities
in the rehabilitation and development process
are as follows:
1. to cooperate with the relevant ministries
and institutions in preparing the conceptual
frameworks of the National
Rehabilitation and Development and in
setting the priority needs of the country
for the immediate term, the short-term,
the medium-term and the long-term in
order to prepare rolling plans of action.
These plans of action are to be coherent,
inter-related and mutually reinforcing.
2. to cooperate with the relevant ministries
and institutions in preparing socio-
economic, and sectoral planning to develop
Cambodia.
3. to manage public sector investments in
cooperation with the relevant ministries
and institutions. This process shall mainly
be related to the coordination and direction
of the allocation and utilization of the
national resources and external aid with
the aim of rehabilitating and developing
Cambodia.
4 to serve as the 'Focal Point' and the
"one-stop service" of the Royal
Government and the donor countries,
international organizations and NGOS, as
well as being the "Focal Point' and 'one-
stop service' between the ministries and
other governmental institutions in the
coordination of external aid allocation
and utilization.
5. to sign pursuant to the delegation of
authority of the Co-Prime Ministers and
on behalf of the Royal Government, any-
legal agreements with bilateral and/or
multilateral donors and international
organizations pertaining the acceptance -
and the allocation aids.
6. to lead preparatory works, in cooperation
with the relevant ministries and institutions
for the international conferences for
rehabilitating Cambodia such as the
"Consultative Group for Cambodia', and
so on.
7. to prepare for domestic and international
distribution relevant documentation and
regulations pertaining to public sector
investments.
In the management of the public sector
investments, the roles and responsibilities of
CDC are the - following:
1. CDC shall be the coordinator for setting
-the strategic conceptual frameworks and
the public investment policies as well as
setting up the priorities for public investment
projects for the medium-term and
for one year.
2. The Ministry of Foreign Affairs and
International Cooperation shall be the
coordinator for diplomatic relations.
3. The Ministry of Planning shall prepare
the 5 Years Plan and the public investment
program, in cooperation with the
relevant ministries and institutions.
4. The Ministry of Economy and Finance
shall prepare the macroeconomics frame-
work for the medium-term and the bud-
get for implementing the annual public
investment programs and control the allocation
of financings.
5. The line ministries shall prepare the sectoral
public investment projects and programs in
cooperation with the Ministry of
Planning and CDC, and is responsible
respectively for the implementation of
their relevant projects and programs.
The organizational structure of one of CDC's
operational arm, the Cambodian
Rehabilitation and Development Board
(CRDB) is comprised of the following departments
in charge of.
1. aid coordination and public relations
2. documentation and information
3. the management of bilateral aids:
(a) Japan and Asia
(b) France and Europe
(c) Australia and Oceania
(d) The United States of America
4. the management of multilateral aids:
(a) Asian Development Bank
(b) World Bank and International Monetary Fund.
(c) European Union
5. the management of aids of the United
Nations Development Programmes and
other UN specialized Agencies.
6. coordinating NGOs
7. projects evaluation
8. administration
In addition, the Royal Government has initiated
a process of umbrella agreements with
major contributors in order to strengthen the
domestic capability to plan longer term, such
as with Australia, World Bank, UNDP and
UNICEF, for example. The Royal Government
is now looking forward to concluding similar
agreements with other contributors over the
coming months.
THE UNITED NATIONS DEVELOPMENT PROGRAMMES'
CONTRIBUTION TOWARD THE REBUILDING OF
CAMBODIA
Following the UNTAC-facilitated transition,
UNDP cooperation has greatly expanded. As
the needs of Cambodia have changed over
the last two and a half years, so has the focus
of the cooperation, shifting from relief support
to development-oriented technical cooperation
eration activities. Increasingly, UN technical
assistance is oriented towards institutional
capacity building, with various national,
provincial and community structures becoming
full partners.
UNDP's mission is to promote Sustainable
Human Development (SHD), and, in so
doing, to strengthen international cooperation,
to facilitate unification of the UN
family and to assist programme
countries in their endeavors to
achieve estain key dimensions of
SHD. As regards Cambodia,
UNDP re-established a represen-
tation in the country in October
1990, having earlier contributed
to emergency relief operations
along the border between
Thailand and Cambodia. During
the subsequent transitional period,
UNDP cooperation has been
wide-ranging, at a time when
most donors had yet to initiate
in-country assistance. From the
subsequent transitional period,
when most donors had yet to initiate
in-country assistance, up till
today, UNDP cooperation has
been wide ranging. UNDP has
thus provided assistance to, fore-
most resettlement and reintegration
; rehabilitation of essential
infrastructure; sectoral surveys
and the formulation of policy options; advisory
services and training. In addition UNDP
has been at the forefront of aid coordination,
including the provision of technical inputs for
the consolidated appeal by the Secretary-
General for the immediate rehabilitation
needs of Cambodia; secretariat services to-the
Ministerial Conference on the Rehabilitation
and Reconstruction of Cambodia, and active
support to the Special Representative of the
Secretary-General for Cambodia and to
UNTAC in executing their mandate for aid
coordination. Furthermore, the initiation of
programme activities by other United
Nations agencies and donors in Cambodia
was directly supported by UNDP.
Following the formation of the Royal
Government in 1993, UNDP has assisted in
the preparation of the National Programme to
Rehabilitate and Develop
Cambodia (NPRD). It was- also
agreed that a UNDP-supported
Country Programme for
Cambodia be prepared in order
to better focus UNDP cooperation
in support of the priorities of
the NPRD, taking into account
the increasing volume and coverage
of donor assistance. The first
UNDP Country Programme
(1994-96) was prepared in a highly
participatory manner and
approved by UNDP's Executive
Board in October 1994. UNDP's
cooperation has thus come to
concentrate on two, mutually
supportive areas, namely poverty
alleviation and capacity building
for management of the national
development and reform
processes in pursuing equitable
and sustainable growth.
------------------------------------------------------------------------------------------------
SUSTAIN HUMAN DEVELOPMENT
IS DEVELOP THAT NOT ONLY GENERATES ECONOMIC
GROWTH BUT DISTRIBUTES ITS BENEFITS EQUITABLY;
THAT REGENERATES THE ENVIRONMENT RATHER THAN DESTROYS IT;
THAT EMPOWSS PEOPLE RATHER THAN MARGINALIZES THEN. IT GIVES
PRIORITY TO THE POOR ENLARGING THEIR CHOICES AND OPPORTUNITIES,
AND PROVIDES FOR THEIR PARTICIPATION IN DECISIONS AFFECTING THEM.
------------------------------------------------------------------------------------------------