CHAPTER II

PROGRESS IN 2006 AND FUTURE STRATEGIES AND PROSPECTS

2.01     As affirmed in the NSDP, RGC attaches high priority and is firmly and fully committed to national sovereignty, peace and national reconciliation, stability and social order, democracy and protection of human rights, and sustainable development that will accelerate progress, prosperity, harmony, and enhance the living standards and dignity for Cambodians in all walks of life. In steadfastly pursuing these goals it will strictly adhere to the main objectives, principles, strategies, programmes and plans already clearly outlined in the NSDP¹ unless there is specific need.

2.02     Using the Rectangular Strategy, this chapter²:

• highlights and critically analyses policies and all major developments in 2006 in all sectors, including causes for successes and shortfalls;

• provides comparative tables of data as in Chapter IV of NSDP showing progress or shortfalls in 2006; and

• outlines challenges and strategies ahead.

2.03     This chapter provides only a macro overview of critical developments, strategies and vital actions ahead. It is intended to be a broad guide, not detailed listing of all work being done or to be done by ministries and agencies. More and clearer details could be found in Sectoral Strategic Development Plans and the progress reports on the implementation of those plans. It should be noted that many goals to be achieved are essentially quantitative. Qualitative aspects though critical cannot be easily measured but over time could be experienced and would manifest themselves through improvements in various ways.

2.04     Poverty: Keeping rapid poverty alleviation and eventual eradication in clear and central focus, accent will continue to be made on creating more opportunities to the poor to come into the mainstream of contributors and participants and in providing more and better health care, educational facilities, improved incomes through rural activities (farm and non-farm), improved rural infrastructure, and so on. More funds should devolve to these areas through the Commune and Sangkat development fund and other measures. Achievement of progress to reduce poverty, a crosscutting issue, depends on the totality of pro-poor policies and efforts in all other sectors as already stated in the NSDP³.

2.05     RGC will continue to emphasise actions that would result in significant gains at the grass roots level where it matters most to the ordinary citizen and for speedy reduction of poverty. Accordingly, RGC will pursue broad strategies and actions outlined in the NSDP⁴ and which will be central to and govern all aspects of its work in the next few years.

2.06     The Rectangular Strategy (RS) "for growth, employment, equity and efficiency", provides a clear and focused framework to move the country forward on the path to fast socio-economic development.  It contains at its core Good Governance which will be promoted and pursued in an encircling Environment for its successful implementation, for the purpose of achieving speedy socio-economic progress in various priority areas listed under four other "growth" rectangles. There are therefore six (6) aspects of the strategy⁵. The rest of this chapter is organised along the flow of RS as was done in the NSDP.

Core of the Rectangle Strategy: Good Governance

2.07     Good public governance, at the core of RS, postulates equitable and fair public participation in all matters through consultation, democratic methods of ensuring that the will and choices of the majority are adopted and implemented at the same time ensuring protection of the rights and welfare of the minority. Political stability, internal security and safety, adherence to the rule of law, and transparency, predictability and accountability of public institutions are vital for orderly economic and human progress and to safeguard the public gains from being eroded by disruptive forces. In this regard, it is noteworthy that:

• A major step in enhancing stability in governance through a landmark constitutional amendment enabling legislative work to be pursued through a absolute majority instead of needing 2/3rd votes which had acted as big stumbling block hitherto. This has now paved the way for speedy approval of legislation and forming of governments after elections which was held hostage to the earlier provisions in earlier elections; and

• The second commune elections involving all the 1,621 communes in the country, and with around 68% of the electorate casting their votes, were concluded in early April 2007 in a peaceful, free and fair manner, once again demonstrating that democracy is proactively promoted by Cambodians and has taken strong roots in the country becoming part of its political and social fabric.

2.08     To promote, ensure and sustain good governance as the most important pre-condition for achieving sustainable socio-economic development with equity, equal opportunity and social justice, four governance reform areas, viz., (a) fighting corruption, (b) legal and judicial reforms, (c) public administration reform including decentralisation and deconcentration, and (d) reform of the armed forces, especially demobilisation, continue to remain central to the RGC’s reform agenda and to the national efforts to reduce poverty levels among Cambodians. The major developments in 2006 are:

• As the Anti-Corruption Law proceeds through various stages of intense scrutiny, the already existing legal framework and institutional mechanisms are being invoked to reduce or at least prevent corruption. The RGC’s anti-corruption strategies are based on major policy measures, viz., educational activities for preventing corrupt deeds, enhancing law enforcement, and promoting advocacy. In this regard, the structure of Anti-Corruption Unit has been re-organised trough a RGC’s Sub-Decree on Anti-corruption, which was enacted on 22 August 2006. An Office for Receipt of Complaint has been established at the Council of Ministers with the aim of enhancing participation, supply and receipt of corruption-related information from the public. In addition, disciplinary actions have been taken on offending civil servants, custom officers, police officers, and conspirators in smuggling of right-steering wheel cars. However, pursuing anti-corruption policies is a long-term and challenging endeavour that requires adequate means including appropriate institutional framework, human and financial resources.

• The Action Plan (April 2005) for implementing of Legal and Judicial Reform Strategy (June 2003) has been pursued focusing on seven strategic objectives and actions articulated in the NSDP. As a result, the law on civil codes and procedures was promulgated on 06 July 2006; penal codes and procedures have been submitted to National Assembly for approval; civil codes have been endorsed by Council of Ministers; and penal codes have been already discussed in an inter-ministerial meeting. Other laws and regulations on various legal and judicial procedures, and laws and regulations on control over human trafficking and sexual exploitation and the law on anti-terrorism have also been drafted. In addition, the model of pilot court in Kandal Province has been already established; and a project for raising awareness about basic rights, improving the sustainability of publishing and disseminating the Royal Gazette, and conflict resolution outside of the court system have been vigorously pursued. Capacity development for judges and strengthening law enforcement at the court have been carried out. Strict and timely disciplinary action is being taken on delinquents in the system. Code of ethics for judges has been drafted and submitted to Supreme Council of Magistracy for approval.

• In 2006, the average monthly remuneration of civil servants increased to 45 US dollars (including the planned pay rise of 15%). In addition, the incentives for diligent and productive civil servants have been introduced through Priority Mission Group (PMG) and Merit-Based Pay Initiative (MBPI). The overall size of the Civil Service has been stabilised since 2002 (165,000 in 2002 to167,000 in 2006 excluding non-permanent staff). With only 31% of women in the civil service, increasing their representation continues to be an issue. However, as a measure to enhance the status of women, the financial support policy on social insurance to civil servants was amended to include death and maternal leave.

• The well orchestrated programme for decentralisation and deconcentration (D&D) has been proceeding according to plan. All the work in this regard have been brought under the overall direction and coordinating role of the Ministry of Interior (MOI) which has also assumed responsibility for further implementation of the D&D reform after the RGC’s SEILA Programme concluded on the 31 December 2006.  A national committee managed by MOI, National Committee for the Management of Decentralisation and Deconcentration – NCDD, was established by the Royal Decree 0806/355 dated 18 August 2006. In addition, to improve the function of commune and sangkat councils other regulations had been passed such as the guidelines on the procedures for village head selection and the guidelines on the provision of voter information sheet.

• In the first term of Commune-Sangkat Council, RGC has allocated the national budget to commune-sangkat fund (CSF) that accounted for 1.5%, 2.0%, 2.5%, 2.52%, and 2,54% of current budget revenues in 2002, 2003, 2004, 2005, and 2006 respectively (in total around 284,075 billion Riels), and has mobilised external resources (both grants and loans from EDPs) accounting for about 200 million US dollars) to support the implementation of D&D reform-related projects and programmes at all communes and sangkats .     

• By the end of 2006, the Organic Laws containing four volumes have been drafted and three volumes have been completed. Those three volumes of the draft Organic Laws have been under consideration of the Royal Government and some parts of these drafts are being revised to submit to the advisory group comprised of the public, civil society, EDPs for discussion and endorsement, and finally to the National Assembly for approval and becoming effective in 2007.

• In 2006, the budget allocation for commune and sangkat funds (CSF) accounted for 2.45% of the current expenditures of the national budget and around 30 million US dollars of external funds both grants and loans were allocated to implement D&D reform-related projects and programmes.   

• Reform and consolidation of the Armed Forces, including demobilisation and gradual establishment of more effective armed forces, is continuing according to plan. The share of Defence and Security in GDP has been stabilised around 2% (1.8% in 2005 and 2006) and is expected to be 1.7% by 2010. This share in the national budget has been steadily declining (22.93% in 2005 and 21.91% in 2006) and is expected to stabilise around 17.40% by 2010.

Environment for the Implementation of the Rectangular Strategy

2.09     Four aspects of this enveloping circle are: (a) Peace, political stability and social order; (b) Integration of Cambodia into the region and the world; (c) Partnership in development; and (d) Favourable macro-economic and financial management. In addition, some critical crosscutting aspects are also considered as part of the overall environment for progress.

2.10     Peace, political stability and social order constitute the fundamental basis on which any sustainable progress can take place. In addition to the constitutional changes referred to at para 2.07 above, the precious post-conflict reconciliation, democracy, social order and reduction in crime achieved in the past through dialogue and mutual adjustments are being enhanced; safety and security all over Cambodia have strengthened; all efforts are being made to ensure that second commune elections due in 2007 are conducted in a peaceful, inclusive, free and fair manner.

2.11     Integration of Cambodia into the region and the world:  On the regional and sub-regional levels, apart from its involvement in ASEAN, Cambodia is an active participant in various other cooperation initiatives and frameworks, such as Asia-Europe Meeting (ASEM), Asia Cooperation Dialogue (ACD), Greater Mekong Sub-Region (GMS), Ayeyawardi-Chaopraya-Mekong Economic Cooperation Strategy (ACMECS), Cambodia-Lao-Myanmar-Vietnam (CLMV) cooperation and Cambodian-Lao-Vietnam (CLV) Development Triangle.  Cambodia accords equal importance to its active participation and cooperation in all international bodies. The Cambodia’s accession to the World Trade Organisation (TWO) has revealed that Cambodia has been prepared to take part in global economic activities. The participation of Cambodia in regional and international affairs not only enhances the Cambodia’s political and economic prestige but also significantly contributes to keeping safety, security and peace in the region as well as the world.  A major goal of these efforts is to mmaximise the benefits arising from the integration of Cambodia into the region and the world with the aim of achieving RGC’s priority goals and strategies to reduce poverty rapidly in Cambodia. Much more efforts however have to be made to deepen, and benefit from, the integration process.

2.12     Partnership in development: The three (3) basic aspects of partnership between RGC and other stakeholders are relations with (1) civil society; (2) private sector; and (3) external development partners. In this regard:

• All efforts are being made to involve and associate all sections of the civil society in all appropriate aspects of RGC's planning and decision-making processes, and to make civil society an effective partner in the development efforts. Already, many NGOs, both national and international, are involved in socio-economic development as well as in promotion of democracy and human rights. NGOs are represented at and contribute to the GDCC and in many TWGs and will be associated with the future CDCF meetings. A Law on Non-Government Organizations is being formulated soon with broad consultation with all relevant institutions and organizations.

• The crucial role of the private sector as the locomotive and driving force for investments and economic growth cannot be over-emphasised. Attaching a high priority to facilitate private sector operations, several mechanisms have been put in place and efforts will continue to strengthen and deepen harmonious relations with the private sector, based on strict adherence to laws and regulations and focused on development priorities.

2.13     Relations with external development partners: RGC gratefully acknowledges that generous levels of financial and technical assistance received from EDPs since 1993 have in a large measure helped Cambodia's impressive progress. It is clear that as an LDC the country will continue to need such support for quite a length of time in the future as it moves forward towards its long-term vision. During 2006, important developments were:

• Adoption of a Strategic Framework for Development Cooperation to govern all RGC-EDP partnership efforts.

• Further strengthening and harmonisation of the TWG and GDCC mechanisms through an intense review involving full consultations with all stakeholders.

• The decision for RGC to assume full ownership and leadership of the annual aid-mobilisation consultations by transforming the CG process till now to a Cambodia Development Cooperation Forum (CDCF) from 2007.

• Streamlining the process of collection of data on EDP contribution on a timely basis to synchronise with the schedule for preparation of NSDP APR, PIPs, MTEF and annual budget.

2.14     Macro-Economic and Financial Environment:  The macro-economic data assumed for 2005 as the base year for NSDP, 2006-2010 underwent dramatic upward changes due to more precise assessments made after finalisation of the NSDP. Among the most notable factors are:

• GDP growth registering a phenomenal 13.4% in 2005 almost doubling the earlier estimate of 7% assumed in framing the NSDP, in spite of volatility imposed by external factors like continuing high oil prices.

• Very high growth in agriculture (crops) of 28.0⁶in 2005 against 8.0% assumed in NSDP, facilitated both by returns from investments in irrigation and very favourable weather conditions.

• The sudden surge in agriculture dwarfed the otherwise steady growth in other sectors and increased its share in GDP to 16.9%⁷ against 14.2% assumed in the NSDP.

• The base figures for 2005 assumed in NSDP have thus increased. Accordingly, the targets for the NSDP period have also increased, even though hey are based on the revised base figures.

• Per Capita GDP accounted for 1.86 million higher than 1.40 million Riels estimated in NSDP for 2005 and is expected to rise 2.888 million in 2010 (against the NSDP estimate of 2.243 million riels).

• The garment industry continues to lead in terms of overall contribution in the industrial and services sectors followed by tourism and construction. There is every expectation that such robust growth will continue.

• All macro-economic figures have accordingly undergone a revision and are reflected more fully in table 2.1 below and at annexes I:2 and I:3.

2.15     GDP growth is estimated at a high 10.8% during 2006 over and above the high surge in 2005. Inflation will be contained at 4.7%. Progressive, prudent and strict budgetary policies both on the revenue and expenditure sides increased government revenues to 11.5% of GDP from 10.6% in 2005 and expenditure to 13.8% from 13.3% in 2005. The exchange rate remained stable at a US$ to about 4,103 Riels. There has been a gradual progress in management of state assets including tangible and intangible properties, as well as state enterprises and joint ventures in a transparent and efficient manner both to safeguard the interests of the state and to enhance steady flow of revenues. Measures were put in place to have a strict rule and regulation in order to follow clear, transparent, public bidding procedures in disposal or lease of state property or rights, indeed in award of all state contracts. The year 2006 was observed as Year of Micro Finance and conferences and workshops on micro finance were organised with the aim of promoting better understanding and improving the efficiency of micro-finance institutions and enhancing the public knowledge of this sector.

Table 2.1: Key Macroeconomic Data⁸
(In percent of GDP unless otherwise indicated)

Sources:    Ministry of Economy and Finance

2.16     The long term goal continues to be to achieve more diverse and pro-poor economic growth. The already achieved macroeconomic stability has played a major role in providing the foundation for the very strong growth that has been achieved in Cambodia in recent years, and consequently for poverty reduction and will be sustained and strengthened in the future. With confidence and experience gained in successfully managing the economic scenario even during externally imposed economic factors such as the East Asia crisis in 1997, the massive structural and external changes that have taken place since then, and high oil prices during 2004 and 2005, every expectation that macro-economic projections outlined above will be fully reached and benefits become widespread to alleviate poverty. Among other major measures being pursued are:

• Further progress in implementing the Public Financial Management Reform Program (PFM) is which seeks to installing and ensuring much higher standards of management and accountability in the mobilization of all government current and capital resources and effectiveness and efficiency in the use of resources in their application to the operation of the Government’s NSDP and other priority programs. It is envisaged that an operational medium-term expenditure framework (MTEF) governs multi-year programming.

• Programme budgets have been introduced for 7 Priority Actions Programme (PAP) ministries (MOEYS, MOH, MWA, MAFF, MRD, MLMUPC, and MOJ) which will have impact on the poverty situation. The allocations to and timely use of funds in these ministries will be closely monitored to ensure achievement of expected results against indicators to improve result-orientation.

• Progressive increases in allocations and ensuring timely disbursements to priority pro-poor sectors -- For Agriculture - allocation was 0.7% of GDP in 2005, increasing to 0.91% in 2006; for Rural Development – allocation was 0.19% of GDP in 2005, increasing to 0.2% in 2006; for Health allocation of 0.89% in 2005 increasing to 0.96% in 2006; and for Education allocation of 1.38% in 2005 increasing to 1.65% in 2006⁹.

• Well coordinated efforts involving the concerned institutions (the National Bank of Cambodia (NBC) and the MEF) will continue to improve and consolidate gains in the Financial Sector which plays a crucial role in macro-economic stability and is vital for the pace and direction of economic growth and to enhance mobilisation of idle financial resources for productive investment. The Financial Sector Blueprint (FSB) is being updated and envisages the development of a sound, market-based financial system in next five years, to enhance resource mobilisation for sustainable economic growth.

• Financial sector reform will also focus on strengthening prudential supervision and the legal framework for financial sector regulation. The key legislative measures include the enactment of the Negotiable Instruments and Payment Transactions Law, and the proposed Secured Transaction Law already submitted to the National Assembly.

• Reforms to increase availability of and to improve access to micro-finance. Key measures include promoting the licensing and registration of microfinance institutions and facilitating the adoption of proper accounting and reporting requirements by the concerned enterprises. The need to expand this framework to other types of financial institutions such as financial service cooperatives, credit unions, and village savings banks is being explored.

2.17     RGC is well aware that, based on experiences the world over and on its own past experience, high economic growth as anticipated above would continue to be driven by market impulses, opportunities, compulsions and constraints. Growth induces changes from known and tested economic situations and calls for continuing structural adjustments in population and the economy. Skills tend to be created to meet emerging market demands sometimes skewing the higher and vocational education system which ideally should cater to creating a wide variety of skills to serve the nation in the long term. By now, the garment industry, construction and tourism constitute the growth areas. Although these bases for growth are very welcome in the sense of creating employment for a large number of people, such dependence on only a few sectors come with implications in regard to long-term economic sustainability. Policy implications need to focus on the following important issues among others:

• Growth needs to be diversified, both sectorally and geographically, to ensure long-term sustainability.

• The more advantaged sections of people – in terms of wealth, education, urban locations, etc., -- get a better access to and avail of advantages and benefits from growth.

• Fast growth also accelerates rural-urban migration in search of employment and ancillary occupations, decreasing the available labour for important agricultural activities in rural areas.

• Younger people tend to migrate leaving rural and remote areas with ageing populations with reduced productivity.

• While, as already witnessed between 1993 and 2004, growth has a significant impact on reducing poverty levels in the country as a whole, such levels continue to remain high in remote areas. This would continue and accentuate if growth is not managed properly.

• Any neglect of life-sustaining agricultural sector will have serious consequences for food security and nutrition of the people at large.

• These imbalances and distortions need to be corrected by diverting and directing growth to unserved interior areas as well.

2.18     Conscious of these and other attendant factors of changes which are necessary corollaries of economic growth, RGC will continue to keep a constant vigil as development progresses and will use pro-active policy instruments and incentives to diversify growth sectorally and geographically and will provide safety nets to ensure that already marginalized people are not further marginalized and rendered more vulnerable. The strategies envisaged for various sectors as mentioned in the following paragraphs and in Chapter III address these matters.

2.19     Religious and cultural issues are the bedrock for building, strengthening, and maintaining the very vital "social capital" that no amount of economic development can alone create or sustain. GC continues to accord high priority to preserving and enhancing the country's rich and unique cultural heritage both to preserve and develop the social fabric and also to attract "cultural tourists" to observe and admire Cambodia's past and present culture.

Rectangle 1: Enhancement of Agricultural Sector 

2.20     The four sides of this rectangle are: (a) improving and diversifying agricultural sector (including nutrition and rural development); (b) land reform and mine clearance; (c) fisheries reform; and (d) forestry reform (including environment protection).  Continued RGC’s efforts in mitigating anarchic deeds depleting natural resources and environment and in rehabilitating and enhancing irrigation potentials and favourable weather conditions have marked a significant progress in this sector in 2006.

2.21     In 2006, improved irrigation system, good weather conditions, use of improved seeds, and improved farm practices contributed to directly enhance crop production and indirectly to ensure food security, enhancing productivity and diversification. Improved rural transportation infrastructure has enabled more market access for agricultural products. The above-cited favourable conditions and increased applications of system of rice intensification (SRI) and organic farming methods have resulted in an increase in rice production, increasing by nearly 5% in farming period 2006-2007 compared to 2005-2006 (5.98 million tons in 2005 and 6.26 million tons in 2006). Other crops in particular cash crops production experienced a slight increase in 2006. Rehabilitating and enhancing irrigation potentials will continue to remain a high priority for the development of crop cultivation in Cambodia. A comprehensive Strategy for the Agricultural Sector as a whole is still to be developed. This Strategy will be finalised during the first quarter of 2007. The priority strategies in this sector for the plan period, 2006-2010, has been appropriately pursued.

2.22     Strengthening and enlarging animal production and animal husbandry and veterinary services will continue develop at a slow rate in the couples of years based on the recent development trend. This sub sector will remain crucial to the enhancement of agricultural sector as a whole.

2.23     In 2006, efforts have been actively pursued in managing fishery sector under the framework of fishery reform with considerable achievements including preparation and amendment of regulations to enforce the law on the establishment of fishery communities, development of aquaculture, researches, conservation, crackdown on illegal fishing, and extension, etc. To ensure sustainable access to fisheries resources for the poor will remain a major goal of the RGC in poverty reduction. In this regard, the five NSDP priorities articulated for this sub sector will have to be pursued in an efficient manner.

2.24     Overall food security situation has improved significantly in the last few years. The CDHS found reduction in malnutrition in children under 5 years from 45% in 2000 to 37% in 2005 but progress has been uneven among provinces. Concerted and targeted efforts in various sectors will ensure that "poor and food-insecure Cambodians, by 2010, have substantially improved physical and economic access to sufficient, safe, and nutritious food at all times to meet their dietary needs and food preferences for an active and healthy life". The progress so far made in increasing and ensuring food availability, improving food accessibility, and ensuring optimal food use and utilisation through health and nutrition education, micronutrient supplementation and fortification programmes (iron, Vitamin A), further enforcement of universal iodisation and food safety standards, etc, would be sustained for achieving the above-mentioned goal. In 2006, a “National Programme on Household Food Security and Poverty Reduction” was implemented in 180 target villages.

2.25     Efforts made in pursing forestry reform have significantly contributed to maintain the forest coverage in the last few years. The forest coverage has been estimated to be around 59% in 2006. Continued efforts in sustainable forest protection and management as well as in reforestation have also contributed to maintain the forest coverage up to 60% of the total land areas of the country in 2015 as targeted in CMDG.

2.26     Significant progress has been made in environmental protection and conservation. In 2006, three eco-tourism destinations have been established and two more destinations are being developed. In addition, more fishery communities in multi-purpose use areas and Tonlé Sap Lake and protected area communities have been set up and are contributing to drastic reduction in earth-filling of natural bodies of water and prevention illegal land encroachments and forest depletion. In addition to the land areas of 723 hectares taken back in 2005, RGC took back many illegally-occupied lands covering 2,455 hectares in protected areas in 2006. Till 2006, 77 protected area communities have been established and among those 8 communities were formed in 2006. The boundaries of 16 protected areas have been marked till 2006 and out of them 2 were done in 2006, and the official mapping of these protected areas has been conducted. However, environmental protection and the natural resource management continue to face constraints in regard to institutional and legal framework in particular the weak coordination among concerned agencies and authorities. The management of factory solid and liquid wastes has been improved contributing to reduction in their environmental impact.

2.27     Land reforms will continue to receive high priority for poverty reduction and socio-economic development. Accent will be on providing clear, incontestable, legal land ownership titles to provide security of tenure to those in actual use of the land they occupy. The challenges are to control and curb further land concentration in few hands, including review of already granted large concessions exceeding limits under the 2001 land law, where land is still lying fallow and unproductive. Major efforts in attaining this priority and in overcoming these challenges are:

• The required policy and legal framework for effective implementation of the Land Law has been developed and approved, ranging from RGC’s Sub Decree to inter-ministerial Prakas, viz. Sub Decree on State Land Management; Prakas on Identification, Mapping, Classification of State Land; Guiding Circular on Measures to Tackle Illegal Land Occupancy; and the Inter-Ministerial Prakas on (a) Strengthening of Cadastral Commission, (b) The Mechanism for Agricultural Dissemination Service Delivery for Social-Land-Concession Using Farmers; etc. Besides, the draft Policy and Sub-Decree on Registration of Indigenous People’s Communities and the draft Policy on Land Evaluation System have been developed and discussed. In addition, an Authority for Land Dispute Resolution has been established in order to promote the efforts in resolving land conflicts.

• Continued efforts have been made in improving and implementing land registration procedures for systematic titling and sporadic titling. In 2006, 280,207 systematic and 11,754 sporadic titles have been respectively issued through registration procedure for systematic and for sporadic titling. To promote equal access and control over economic assets for both spouses, issue of joint land titles is being pursued.

• The land dispute resolution mechanism through the Cadastral Commission resolved 1,246 land dispute cases involving 6,641 households and land area of 2,394 hectares.

• Through the implementation of policy on in-place development and the distribution of mine-cleared land areas including land areas re-taken from illegal occupancy, the total land areas of 4,505.22 hectares have been distributed to 29,718 landless households for their legitimate land property. Based on the policy and sub-degree No. 19 on Social Land Concession, a pilot project being implemented in Memut and Kratie Districts by the inter-ministerial working group has measured and is being proceeding with the works on explicitly mapping, classifying and registering the private state land with the total areas of 6,317 hectares. 

• Transparency and accountability in the provision of services in land and construction domain, including land valuation system, have been improved.  

2.28     Continued efforts in de-mining operations have contributed to improve social and economic conditions of poor farming households in remote areas and to promote rural development. The 2006 De-mining and UXO de-fusing or destruction operations has increased mine-free land areas from 30,263 hectares (NSDP estimated figure: 32.974 hectares) in 2005 to 35,436 hectares in 2006. The number of human casualties has decreased by 50%, i.e., from 2005 actual figure of 875 (NSDP-estimated figure: 797) to 440 in 2006. The land areas rendered mine-free have been converted for social and economic purposes such as cropping areas, residential areas, and different social and economic infrastructures.

Table 2.2: Targets set for 2010 for the Agriculture Sector

2.29     Rural Development¹⁰, as a vital ingredient for enhancement of agriculture and poverty reduction, is cross-sectoral and also a priority activity for budget allocations and disbursement. It was thus selected for 2007 as a priority sector among other 6 priority sectors of the RGC under the pilot of the Public Financial Reform. Provision and enhancement of rural infrastructure, enhancement of health and sanitation in rural areas, and development of rural economy are the main activities in this sector and will continue to remain as the priorities and challenges ahead.

2.30     Rural infrastructure: In 2006, 92 new roads with the length of 264 km were constructed; 44 roads of 707 km were repaired; and 118 roads of 822 km were maintained. 70 small bridges and 160 culverts were built. In addition, 17 new school buildings with 72 class rooms and 3 community markets (2 in Kampong Thom and 1 in Phnom Penh) were established. To provide safer drinking water, well waters from 1,840 wells were tested. 3,500 family toilets and 22 public latrines were also provided. 

2.31     Health and sanitation in rural areas: In 2006, safe drinking water was additionally supplied to 71 districts in 23 provinces/municipalities. 1344 of all types of water supply wells were constructed and 610 of all types of wells were repaired. For this purpose, rural communities in water scarce areas were also provided with 18 ponds.

2.32     Development of rural economy: Low-interest-rate micro-credits of 5,214 million riels and 2,000 US dollars were given to rural people. Small-scale-business credits of 8.2 million riels were also provided to develop small rural businesses. In addition, rice and animal banks were operational to help poor people. Small scale irrigation systems were also constructed to supply water for agriculture. A new dam of 1,680m, 21 canals of 39,510m was constructed and 4 water gates were built. 26 canals with the length of 39,510m were repaired.

Table 2.3: 2010 Targets for Rural Development

Rectangle 2: Rehabilitation and Construction of Physical Infrastructure

2.33     This RS growth rectangle covers: (a) further construction of transport infrastructure; (b) management of water resources and irrigation; (c) development of energy sector and electricity network; and (d) development of information and communications technology. The improvements achieved in these four areas have impacted positively on other social and economic sectors like education, health, tourism, trade, rural development as well as in integration into the region and the world.&nb