CDC - CBP - 4.4. MONETARY INCENTIVES

4.4.1 RESULTS OF THE SURVEY

76. To implement the 147 multilateral and bilateral donors supported programs/projects and the activities of the 77 NGOs, a total of nearly 20,000 persons were paid some form of monetary incentive in 2002. The expenditure on these monetary incentives totaled around 6.7 million US dollars - representing 2.5 percent of the total expenditure in 2002 on these programs/projects.

77. As discussed earlier, the total expenditure on programs/projects for which data have been provided in response to the CBP Survey represents just over half (53.1 percent) of the total expenditures/disbursements in 2002 that have been reported by the external partners to the Council for the Development of Cambodia. There is, however, a wide variation in the response rate of various donor categories from a high of 96.3 percent in the case of UN agencies to a low of 26.3 percent in the case of bilateral donors (Table 11).

TABLE 11: EXPENDITURE ON AND NUMBER OF PERSONS PAID MONETARY INCENTIVES IN 2002

MONETARY INCENTIVE	MULTILATERAL		BILATERAL	NGOs	TOTAL
MONETARY INCENTIVE	UN Agencies	IFIs, ADB and EC	BILATERAL	NGOs	TOTAL
Number of persons receiving some type of monetary incentives	6,137	864	608	12,207	19,816
Total expenditure on monetary incentives in 2002 (in US $ ‘000)	$2,498	$1,777	$985	$1,394	$6,654
Average payment per person in 2002 (in US dollars)	$407	$2,057	$1620	$114	$336
Total expenditure on programs/projects reported in CBP Survey (in US $ ‘000)	$78,527	$50,731	$69,327	$67,155	$265,740
Total expenditure on programs/projects reported in the CBP Survey as percent of total disbursements in 2002	96.3%	33.4%	26.3%	75.0%	53.1%

Figure 15: Amount of Expenditure and Number of Persons paid Monetary Incentives

78. There is also a wide variation in the amount that is paid by various categories of donors as monetary incentives. The average amount per person paid as monetary incentives in 2002 was:

US $ 114 on programs/projects delivered by NGOs;
US $ 407 on programs/projects delivered by UN agencies;
US $ 1,620 on programs/projects supported by bilateral donors; and
US $ 2,057 on programs/projects supported by IFIs, ADB, and EC.

79. NGOs have reported providing monetary incentives of some kind to more than 12,000 persons, of which 9,000 are associated with Village Development Committees and Commune Council staff or are Village Volunteers. Over 2,900 government staff were supported at the field level, inter alia health workers and teachers. The remaining recipients, some 200 persons or 2 per cent of the total were either National Directors, Program Managers or Technical Officers (see table 12). The majority of NGOs, fifty-two percent, supported more than 20 persons in their programs while fourteen percent supported between 10-20 persons, seven percent supported 6-10 persons and another nineteen percent supported 1-5 persons.

TABLE 12: NUMBER OF PERSONS PAID MONETARY INCENTIVES BY FUNCTION
PERFORMED IN THE IMPLEMENTATION OF THE PROGRAM/PROJECT

FUNCTION IN THE PROGRAM/PROJECT	NUMBER OF PERSONS PAID SALARY SUPPLEMENT
	MULTILATERAL		BILATERAL No. %	NGOs No. %	TOTAL No. %
	UN Agencies No. %	IFIs, ADB and EC No. %	BILATERAL No. %	NGOs No. %	TOTAL No. %
Program Director/Manager/ Coordinator	154 2.5%	41 4.7%	29 4.8%	54 0.4%	278 1.4%
Technical Advisor/Supervisor	161 2.6%	28 3.2%	17 2.8%		206 1.0%
Project Officer/Technical Officer	400 6.5%	68 7.9%	26 4.3%	165 1.4%	659 3.3%
Counterpart Staff	204 3.3%	145 16.8%	50 8.2%		399 2.0%
National Counterpart Staff	661 10.8%	20 2.3%	80 13.2%		761 3.8%
Provincial/District Counterpart Staff	48 0.9%	0	230 37.8%		278 1.4%
Field /Operations Staff	2,340 38.1%	0	61 10.0%	2,710 22.2%	5,111 25.8%
VDC/Commune and District Level Personnel/village volunteers	1,114 18.2%	0	0	9,027 73.9%	10,141 51.2%
Support Staff	32 0.5%	518 60.0%	73 12.0%	251 2.1%	874 4.4%
Driver/cleaner/Guard	2 …	36 4.2%	42 6.9%		80 0.4%
Other	1,021 16.6%	8 0.9%	0		1029 5.2%
TOTAL	6,137 100%	864 100%	608 100%	12,207 100%	19,816 100%

80. As regards multilateral and bilateral donors the total number of recipients of monetary incentives reported was some 7,600 persons , of which:

6,137 staff in the collaborating institutions of programs/projects delivered by the UN agencies.
864 staff in the collaborating institutions of programs/projects supported by IFIs, ADB, and EC.
608 staff in the collaborating institutions of programs/projects supported by bilateral donors.

81. In the case of the UN agencies the majority of recipients of monetary incentives (nearly 60 per cent) were recorded as working at the district or local level or as field/operations staff. Also bilateral donors had nearly half of the recipients working at these levels. Only for the IFIs, AsDB and the EC were there no staff recorded at these levels. This does not exclude that for example project officers or support staff receiving monetary incentives could be working at the provincial, district or local level. It should also be noted the high proportion of staff (60 per cent) reported by the IFIs, AsDB and the EC as being support staff (see table 12).

82. Of the 224 respondents to the survey, 135 or some 60 percent have reported providing some form of monetary incentives. Of those who provided monetary incentives, some 40 per cent spent less than 10,000 US dollars, nearly 40 per cent spent between 10,000 and 50,000 US dollars, some 10 percent spent 50,001 and100,000 US dollars; and another 10 percent spent more than 100,000 US dollars (see table 13).

TABLE 13: RANGE OF EXPENDITURE ON MONETARY INCENTIVES

Range of Expenditure on Monetary incentives	Number and Percent of Donor Projects Providing Monetary Incentives
Range of Expenditure on Monetary incentives	UN Agencies No. of projects %	IFIs, ADB, EC No. of projects %	Bilateral Donors No. of projects %	NGOs No. of NGOs %	TOTAL No. of projects or NGOs %
Less than 10,000 USD 10,000 – 50,000 USD 50,001-100,000 USD More than 100,000 USD	18 26.9% 17 25.4% 4 6.0% 6 9.0%	1 5.3% 11 57.9% 1 5.3% 4 21.1%	11 18.0% 9 14.8% 2 3.3% 2 3.3%	26 53.0% 14 28.6% 7 14.3% 2 4.1%	56 41.5% 51 37.8% 14 10.4% 14 10.4%
Total	45 100,0%	17 100,0 %	24 100,0%	49 100,0%	135 100.0%
Number of Projects Or NGOs That Provided Monetary Incentives Support	45 67.2%	17 89.5%	24 39.3%	49 63.6%	135 60.3%
Number of Projects or NGOs That Did Not Provide Monetary Incentives	22 32.8%	2 10.5%	37 60.7%	28 36.4%	89 39.7%
Total Number of Responses to CBP Survey	67 100.0%	19 100.0%	61 100.0%	77 100.0%	224 100.0%

Figure 16: Percent of Programs that Provided Monetary Incentives

83. In terms of the incidence of providing monetary incentives there were significant differences between the various categories of donors. A much higher proportion of programs/projects supported by the IFIs, AsDB and EC (about 90 per cent) reported providing monetary incentives in 2002 compared to bilateral donors who reported providing such incentives in only 40 per cent of their programs/projects. In the case of the UN agencies and the NGOs the proportion of programs/projects supported by monetary incentives was approximately 2/3 (Table 13).

84. Of those who reported providing monetary incentives practically all consider the payment of monetary incentives to be either critical or important to facilitate the implementation of their program/projects (Table 14).

TABLE 14: SIGNIFANCE OF PROVIDING MONETARY INCENTIVES

Importance of Providing Monetary Incentives	Number and % of Donor Projects Providing Monetary Incentives
Importance of Providing Monetary Incentives	UN Agencies No. of projects %	IFIs, ADB, EC No. of projects %	Bilateral Donors No. of projects %	NGOs No. of NGOs %	TOTAL No. of projects or NGOs %
Critical Important Not very important Not Reported	22 48.9% 19 42.2% 0 … 4 8.9%	5 29.4% 8 47.1% 1 5.9% 3 17.6%	15 62.5% 7 29.2% 1 4.2% 1 4.2%	23 41.1% 32 57.1% 1 1.8% 0 …	65 45.8% 66 46.5% 3 2.1% 8 5.6%
No. of Projects Or NGOs That Provided Monetary Incentives Support	45 100.0%	17 100.0%	24 100.0%	56^a 100.0%	142 100.0%

^a Even though only 52 NGOs have provided data on their expenditures on monetary incentives, 56 NGOs have reported on the significance of these incentives to facilitate the implementation of their program activities.

85. Many modalities are used for providing monetary incentives to the staff of collaborating institutions. In addition to straight salary supplements, these include: payments for special tasks, daily subsistence allowances (DSA) and per diems, overtime payments, allowance for attending workshops and seminars, and other forms of unspecified monetary incentives. It should be noted that on a given program/project, the monetary incentives paid can and often do, as the survey data indicate, include a mix of different modalities.

86. Overall, among the 135 multilateral and bilateral programs/projects and NGOs (out of a total of 224 respondents) who reported that they were paying monetary incentives (see table 15):

On average some 60 percent provided salary supplements to staff of collaborating institutions. However, the IFIs, ADB and EC provided straight salary supplements in 95 per cent of the cases while the UN agencies, bilateral donors and NGOs only reported doing it in 50 to 60 per cent of the cases.
On average 35 per cent provided payments for special tasks to staff of collaborating institutions. Bilateral donors reported this in about 50 per cent of the cases while the use of this modality was practically not used by the IFIs, ADB and the EC. UN agencies reported this modality in about 30 per cent and NGOs in about 40 per cent of the cases. It is interesting to note that the frequency of salary supplements is inversely correlated to the use of payments for special tasks. If you combine these two incentives you find that practically all projects used one or the other, sometimes both.
Practically all programs/projects and NGOs reported providing DSA or per diem payments to staff of collaborating institutions.
Overtime payment to staff of collaborating institutions was a seldom reported modality.
On average some 50 per cent of those providing monetary incentives provided allowances for attending workshops and seminars. This was most frequent in the case of NGOs (70 per cent) and least frequent for the IFIs, AsDB and EC (30 per cent).
Approximately 10 per cent of respondents provided other forms of incentives to staff of collaborating institutions.

TABLE 15: TYPE OF MONETARY INCENTIVE PROVIDED¹

TYPE OF MONETARY INCENTIVE	Number of Program/Projects or NGOs That Provided the Specified Type of Monetary Incentive
	MULTILATERAL DONORS		BILATERAL DONORS No. of Programs %	NGOs No. of NGOs %	TOTAL No. %
	UN Agencies No. of Programs %	IFIs, ADB and EC No. of Programs %
1. Salary Supplement 2. Payment for Special Tasks 3. DSA 4. Overtime payments 5. Per diem 6. Allowances for Attending Workshops/Seminars 7. Other Forms of Incentives 8. Type not reported	25 55.6% 13 28.9% 24 53.3% 2 4.4% 18 40.0% 19 42.2% 4 8.9% 1 2.2%	16 94.1% 1 5.9% 5 29.4% 1 5.9% 14 82.4% 5 29.4% 3 17.6% 0 …	14 58.3% 12 50.0% 11 45.8% 1 4.2% 8 33.3% 13 54.2% 2 8.3% 0 ….	25 51.0% 21 42.9% 4 8.2% 2 4.1% 39 79.6% 35 71.4% 5 10.2% 0 …	80 59.3% 47 34.8% 44 32.6% 6 4.4% 79 58.5% 72 53.3% 14 10.4% 1 0.7%
Number of Projects Or NGOs That Provided Monetary Incentives Support	45 100.0%	17 100.0%	24 100.0%	49 100.0%	135 100.0%

¹ The percentage do not add up to 100 percent, because in many cases on a program/project more than one modality is being used for payment of monetary incentives.

Figure 17: Percent of Programs that Paid Salary Supplements

87. The data collected through the CBP Survey on monetary incentives indicate that in many instances a staff member may be receiving more than one type of monetary incentives, for example, a mix of salary supplement and DSA, or salary supplement and per diem. It is therefore not possible to tabulate directly from the survey data a breakdown of the total expenditure on monetary incentives for each of the seven modalities. However, these data do provide information on the number of persons who were paid salary supplements and information on either the amount of supplement or the range of supplement payments that was made in 2002. Based on these data a rough estimate of the costs of salary supplements can be made by multiplying the reported monthly payments (the monthly rate or by using the mid point of the range of monthly payments reported) by the number of persons receiving the salary supplement. An application of this methodology yields a rough estimate of total expenditure on salary supplements by the 147 multilateral and bilateral programs/projects of around 4.5 million US dollars - out of a total expenditure of around 5.3 million US dollars on all different types of monetary incentives. In the case of NGOs, the total expenditure on providing salary supplements is estimated be around 925,000 US dollars.

TABLE 16: ESTIMATED EXPENDITURE ON SALARY SUPPLEMENTS ON MULTILATERAL
AND BILATERAL DONORS SUPPORTED PROGRAMS/PROJECTS

DONORS CATEGORY

ESTIMATED EXPENDITURE ON SALARY SUPPLEMENTS REPORTED IN THE CBP SURVEY
(in US$ ‘000)

TOTAL REPORTED EXPENDITURE ON MONETARY INCENTIVES
(IN us$ ‘000)

RESPONSE RATE TO THE CBP SURVEY (in terms of reported total expenditure)

MULTILATERAL DONORS

UN Agencies
IFIs, ADB, and EC

3,663

2,040
1,623