This document is different from the Position Papers that the Royal Government has presented to development partners at previous Consultative Group meetings for Cambodia. The purpose of this document is to present to our national and international development partners a succinct summary of the issues that will need to be addressed to effectively implement the National Strategic Development Plan (NSDP) for 2006-2010 period and to improve aid effectiveness. It provides an update on macroeconomic performance, monetary and fiscal performance, and Government’s policy performance. It presents a summary of the development priorities outlined in the National Strategic Development Plan for 2006-2010. It also provides an update on progress that has been made over the last year in building partnerships with all development partners -- the multilateral and international development cooperation partners, private sector and the civil society – to enhance aid effectiveness. It outlines the challenges that both the Royal Government and the development partners face to enhance aid effectiveness and has identified priority areas to which the development partners urgently need to give a high priority. Finally, it presents information on development cooperation support that will be required, in addition to national resources, to support the development programs and projects outlined in the three year rolling Public Investment Program (PIP) for 2006-2008 to implement the NSDP 2006-2010, both were approved by the Royal Government on 27 January 2006.

To achieve its development goals, the Royal government of Cambodia is fully and firmly committed to the principles of good governance and to fully implementing the Rectangular Strategy, in particular to maintain sound macro‑economic policies and fiscal discipline.  The RGC will do its utmost to raise national savings and capital resources to provide as much funds as possible for its development programs. I am confident that this document will help our development cooperation partners to harmonize among themselves and to align their support to Royal Government's priorities that have been laid out in the PIP 2006-2008 and the NSDP 2006-2010.

  Phnom Penh, 15 February 2006


Senior Minister, Minister of Economy and Finance
First Vice Chairman, Council for the Development of Cambodia

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