1 Social Policy Support for Poverty Reduction in Cambodia Prom Tola

2 Background -Agriculture based -Cambodia is recently enjoyed economic growth ( from 1993 to 2004) and poverty reduce~1%/annum -Basis of Economic growth: Garment, Tourist and Agriculture -Meeting CMDGs (Cambodian Millennium Development Goals), reduced poverty by 2015?  may need ~1.5% of poverty reduction/annum -Other source of growth  Agriculture?

3 Challenge: Grow, Inequality and Poverty in Cambodia Poverty reduction Povery rate has substantially reduced from 1994 to 2004, from 47% down to 35%, but in case of natural calamities or other risk associated so that 10% above poverty line will become poor Gaps between rich and poor is widening -Gini Coefficient rose from 0.35 in 1994 to 0.40 in Standard of living of the poorest 20% has risen 8% over the last decade, while the richest 20% of Cambodian has risen by 45% (WB, 2006) The urban-rural disparity is growing -Economic activity is mainly concentrated in urban areas -Development is unlikely to take place everywhere in Cambodia -Not every sector is grown at the same rate

4 Rectangular Strategy for Poverty Reduction Program priority support to Commune Development Plan across country: -Health -Education -Infrastructure development ( roads, bridge,..) -Agriculture and rural development, and food security

5 Definition SP in Cambodia Context “formal and informal safety nets available to Cambodians to cope with shocks and threatening to push them into extreme poverty”. social protection is also conceptual in that it builds institutions that protect the poorest and the most vulnerable sectors in society, to enable them not only to survive in critical periods but also to move toward socio-economic progress.

6 Main program for Social Protection in Cambodia 28 Programs/projects: - Labour Market Program:4 - PEN: 6 - Health Insurance: 4 - Social Assistance: 9 - Children Specific Needs:5

7 Microfinance for the productive poor(???) -Several MFIs in Cambodia -Group loan, solidarity group and saving group is available for the poor -It loan disbursement for the poor ~50% of SP expenditure -The highest no. of beneficiaries ~2 millions

8 School Feeding Program Benefits to almost 550,000 children The second biggest program in SP in term of target beneficiaries

9 Garment Factory (HI) About 250 Garment factories and employ almost 300,000 workers Better Factory in Cambodia---ILO US$1 million per annum for health cost

10 Comparative SPSI Value SPSICambodia East AsiaLow HDI All Asia SPEXP 0.09* (0.014) 0.18 (2.8%)0.19 (0.030)0.30 (0.048) SPCOV SPDIST SPEXP SPI

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12 Transparency Annual financial report printed—printing Financial aid supported from donors and other development agencies (UN, ADB, WB, and etc.)---website

13 Accountability Standard evaluation of public officials at local level may somewhat need a clearer process.. Participatory evaluation from donors, NGOs and government, in case of programming support to government.

14 Participation Most of project/program design at local level are usually from CBO, NGOs, and donor agencies Decentralisation and Decencentration Program ( organic law) have provided a a space for participatory program design for rural development: Commune Development Plan, District Integration Workshop, and etc…

15 Monitoring Household survey Participatory Poverty Assessment Commune database

16 Conclusion Remarks Cambodia has enjoyed economic growth but a matter of rising inequality Cambodia SPI is one of lowest value in Asia More than 80% of Social Protection Expenditure is derived from donor supports. 40% of the poor receive some SP, and MFI is the highest coverage in Asia 60% of SP expenditure go to the poor of 35% of population 1 out of 4 poor have received some social protection program. Priorities for strengthening SP and integrated into national program The level of accountability, transparency, and participation is taken place more in the donor program support in collaboration with government.