47030 Volume 6, Number 11/12 November/December 2008 New Country Manager Gets Down to the Grass Roots T he World Bank's new Country Manager for Cambodia, Qimiao Fan, spent his first month of work in Cambodia visiting many provinces to meet with villagers, students, commune councils, district and provincial authori- ties, civil society groups, and the private sector to learn and understand better how things are working in Cambodia, particu- larly in the rural areas, the challenges people face, and the opportunities they have. I n Kampong Cham province, Sdeung Chey commune, Mr. Fan met with com- mune council members and learnt about development processes at the commune level, the progress the commune has made in rural infrastructure with financial sup- New World Bank Country Manager Qimiao Fan talks with forestry community see NEW page 2 members in Kampong Thom province on October 31. World Bank Executive Director Hagan Visits Cambodia W orldBankExecutiveDirectorJim Mr Hagan is the Bank's Executive Di- The visit, from November 13 to 16, Hagan visited Cambodia in No- rector representingAustralia, Cambodia, 2008, was Mr Hagan's second to Cambo- vemberandmetwithseniorgov- Kiribati, the Republic of Korea, the dia. He met with Deputy Prime Minister ernmentofficials,communecouncillorsand Marshall Islands, the Federated States and Minister of Economy and Finance others to get a better understanding of the of Micronesia, Mongolia, New Zealand, Keat Chhon, who is a governor of the country, which he represents at the World Palau, Papua New Guinea, Samoa, the World Bank, and with Senior Minister and Bank's Board. Solomon Islands and Vanuatu. Minister of Land Management, Urban Planning and Construction Im Chhun Lim, to learn about the new Government's de- velopment priorities. Mr. Hagan said, "Having a good un- derstanding of the Government's priori- ties and development challenges faced by the people of Cambodia is crucial to my role in representing Cambodia effectively at the World Bank." Mr Hagan, accompanied by World Bank Country Manager Qimiao Fan and project officers, also visited some of the project sites in Cambodia supported by the World Bank. At Takmao town in Kandal province, Mr Hagan and the World Bank team vis- World Bank Executive Director Jim Hagan, left, discusses the Takmao water tower ited a water tower being built as part of progress with Samrith Sovithea of the Phnom Penh Water Supply Authority, right. see WORLD page 8 2 The World Bank Newsletter Noveember/December 2008 New Country Manager Gets Down to the Grass Roots Continued from page 1 port from the World Bank's Rural Invest- ment and Local Governance Project (RILGP). He also visited project sites and met beneficiaries. In a ramshackle, termite-infested com- mune office with leaking roof and disinte- grating walls, Commune Chief Prak Sokhon briefed the World Bank team about commune achievements since 2003. With funding from the World Bank's RILGP project through the Commune/ Sangkat Fund, the commune has built 7 km of rural roads and more than 2 km of small irrigation channels, and a new con- tract has been signed for a reservoir which will irrigate more than 400 hectares of Villagers at O'Angkub and O'Som share their concern about forest community paddy rice fields for four villages during issue with Mr. Fan on October 31, 2008. the dry season. "It is clear that even a small amount of The Executive Director of Partners for to share their thoughts on the opportuni- financing can go a long way to help build Health and Development (PFHAD), Dr. ties, concerns, challenges and frustration the much needed rural infrastructure Phong Choun, said, "Cambodia's health on community forestry issues. which in turn will have a significant im- service has improved significantly in re- "The forest is so important for us: for pact on agriculture productivity and rural cent years, but access and quality of ser- centuries, we have been getting a lot of poverty", Mr. Fan said. "What is even vices remain a challenge, particularly in things for our living from this forest, such more encouraging is to see how our remote areas where there is no health cen- as resin, mushrooms, fruit, vines, rattan, project is helping to enhance local gover- ter and it is difficult to access health ser- and bamboo," said one of the villagers. nance by encouraging open consultation vices." Consistent with the regulations and laws, and full participation of villagers in the the community has asked the Government prioritization of and decision on commune The next day, Mr. Fan experienced a for a certain ha.of forest land that is sup- infrastructure projects." bumpy, hour-long ride up National Road posed to be part of the land concession I 62 towards PreahVihear province to meet for their community forestry, but has yet n Kampong Thom province, Mr. Fan with forestry communities around 30 km to receive the final approval. "It is critical met with several NGOs working on from Kampong Thom town. These two that the community continues to have ac- health, education, community for- communities are next to a significant land cess to the forestry as our livelihoods de- estry, agriculture and animal health, mi- concession that has been granted to a pend on it", said another villager. cro finance, clean water and sanitation, private investor. At a community pavil- At the meeting with villagers Mr. Fan as well as supporting orphans and vul- ion he met 20 ethnic minority people from shared his thoughts on the land and for- nerable children. the two forestry communities who wanted estry issue: "The land issue is very com- plex,"hesaid."Someofthedifficultiesarise from the inconsistencies in the existing le- gal and regulatory framework and the lack of coordination among government agen- cies involved. Cambodia needs a compre- hensive legal framework and transparent and participatory processes to protect all parties concerned ­ the communities that depend on the forestry for their livelihood and the investors who invest in the con- cessions." "As the country develops and improves the legal framework, which will takesometime,itiscriticallyimportantthat interim measures are put in place to pro- tect the rights of the indigenous commu- nities." He encouraged all parties, the community, investors and the government, to work collaboratively to find equitable solutions that would be in the long-term interests of all stakeholders concerned. Country Manager Fan, right, discusses the rural road development project with Sdeung Chey Commune Chief Prak Sokhon, left, in Kampong Cham province . see NEW page 4 November/December 2008 The World Bank Newsletter 3 New Country Manager Gives His First Impressions Qimiao Fan, appointed as the World Bank's Country Manager for Cambodia recently, began his assign- ment in Cambodia in late October, 2008. The World Bank Newsletter interviewed him about his perspec- tives on Cambodia and how the World Bank can help to improve the lives of ordinary people. Q. Could you brief us on why you are interested in working for Cambodia? Cambodia has always been a fascinating country for me. Even though Cambodia is a post-conflict country, it has made tre- mendous progress in the past decade in terms of social stability, economic growth, and poverty reduction. However, Cambo- dia, as one of the poorest countries in the region, also continues to face tremendous challenges, and they are unique chal- lenges. Both as a development profes- sional and as someone who grew up in a poorvillageinadevelopingcountry,Ithink it is this combination of great past suc- cesses and unique future challenges that makes working on Cambodia such an ex- citing and hugely fulfilling experience. I also believe that the World Bank, as a de- velopment partner, can make a significant contribution to growth and to poverty re- duction in Cambodia. Q. You spent four days of your first week visiting the countryside. Could you share your views on what you saw there? Yes, I did spend four days of my first week Qimiao Fan: "What I see is that tremendous progress has been made in visiting some provinces around the Tonle Cambodia... But I also see enormous challenges ahead." Sap. I met with villagers, stopped on the roadside just meeting with ordinary Q. What opportunities do you see for ner that would be a potential source of people,andmetlocalgovernmentofficials, growth and development in Cambodia, growth. Third, clearly Cambodia needs NGOs, and private sector people. I wanted and in which directions should the coun- to invest further in infrastructure: it needs to get a better understanding of how try go? significant improvement in roads and things are working in Cambodia, particu- electricity; these are key issues. Better larly in the rural areas; and what kind of I do see tremendous opportunities, and I roads and electricity supply will help challenges people are facing in their daily think Cambodia's success in the past in Cambodia integrate better into the region, lives. What I see is that tremendous terms of growth and poverty reduction is and will be another source of growth. Fi- progress has been made in Cambodia. We a testimony to the enormous capacity of nally, there is clearly a need to continue all know that Cambodia has been growing the Cambodian people ­ and that is very to improve the governance structure. In at, on average, 9.7 percent per year for the critical for the future of Cambodia. To sus- this regard, I think, it is particularly im- last decade and that poverty has been re- tain growth going forward, Cambodia portant to improve the management of duced from about 47 percent over a de- needs significant diversification of the natural resources. Given the potential of cade ago to about 30 percent in 2007. economy. First, agriculture, historically one natural resources in Cambodia it is criti- Throughout my trip I saw much better of the most important sectors in Cambo- cally important that those resources are roads, especially the main national roads; dia, and remains an important sector and managed in transparent, equitable and I saw health centers, schools, and new will continue to contribute to the country's sustainable ways, so that ordinary people houses, even in poor villages. But I also growth. But a lot can be done to further can benefit from the resources. And an- saw enormous challenges ahead. Cambo- improve agricultural development, particu- other aspect of governance is the invest- dia still has a large population living be- larly in rural infrastructure. In particular, ment climate; a conducive investment cli- low the poverty line. Poverty is still very rural access roads and irrigation will be mate will be crucial for sustained private high; infrastructure is still relatively poor. critical. Second, Cambodia is a country that sector growth. More importantly, growth is very narrowly has relatively abundant land and natural based and is very vulnerable to external resources and labor. So I think that if one Q. From your previous experience with shocks. And governance remains a chal- can maintain and manage these resources thePrivateSector,whatdoyouseehere? lenging issue in Cambodia. in a more sustainable and transparent man- see NEW page 4 4 The World Bank Newsletter Noveember/December 2008 New Country Manager Gives His First Impressions continued from page 3 spection, where the government has con- gether in a more systematic way to help How does Cambodia compare with other trol and can move rapidly. In fact, I would Cambodia develop. countries? argue that given the poor infrastructure and underdeveloped financial system, Q. What would you expect to see in the The Private Sector in Cambodia faces sig- Cambodia needs to do a lot better in terms next five years? nificant constraints. Obviously, this coun- of regulatory framework than other coun- try had gone through a long period of civil tries, so that its private sector can com- I am very optimistic about Cambodia. I war and social and political instability. So pete with those in other countries. think we shall continue to see rapid the infrastructure here is not as good as growth, particularly if the government can in many other countries. But the fact, I Q. How can the World Bank help to sus- put in place some important policies that think, that the garment manufacturing sec- tain that growth? will help sustain the growth that I talked tor has been able to grow rapidly in the about earlier, such as sustainable and last few years is an indication that the pri- As the World Bank, we are a partner in transparent natural resource management, vate sector can grow and thrive as long Cambodia's development. I think we can investment in infrastructure, and contin- as the government and the private sector contributetoCambodia'sgrowthinanum- ued investment in agriculture. With that can work together to improve the invest- ber ways. First, as a global development we shall also see continued decline in ment climate. Obviously, infrastructure institution we have the global knowledge poverty. I am very hopeful that poverty improvement, as I indicated earlier, would and experience from other countries that reduction in the next few years will be have tremendous impact on the cost of we can share in terms of analysis and faster than in past years, particularly if the doing business. But the other aspect is policy formulation. Our experience, based quality of growth can be maintained and the legal and regulatory framework and on our work in many countries, can con- become more equitable. We have seen in government control. That also has an im- tribute to Cambodia's policy formulation the past few years continued improvement pact on Cambodia, particularly, given the in a way that is adapted to specific Cam- in governance, and that is important for fact that there is a relatively underdevel- bodian conditions. Second, we can pro- sustained and equitable growth. I hope oped financial system here and relatively vide limited financial support through our all these will contribute to more equitable poor infrastructure, both of which will take projects. Third, quite important, particu- growth and to sustained improvement in a long time to develop in order to support larly in the Cambodia context, is the role the lives of ordinary people. rapid private sector growth. But there are of facilitation: we can work closely with For more information contact: many other things, particularly in the ar- the government and help coordinate the Mr. Bou Saroeun eas of regulation, for example in trade fa- overall assistance of the development Communications Specialist cilitation, business registration, and in- community, so that we can all work to- Email: sbou@worldbank.org New Country Manager Gets Down to the Grass Roots O continued from page 2 O n the way to Banteay Meanchey Project (PPWSSP) to learn about the ben- n his way to Siem Reap Mr. Fan province Mr. Fan visited a small efits to users. Run by the Sar Kor Cambo- stopped on the road side and met water supply project supported dia Company, the water treatment plant people who were resettled from by the World Bank's Provincial and Peri- pipes clean water to more than 1,000 fami- their houses and land to make way for a Urban Water Supply and Sanitation see NEW page 5 by-pass bridge at Kampong Kdei in order to protect and preserve an ancient bridge that had been part of the highway for cen- turies. The by-pass bridge was part of a World Bank road project. Mr. Fan was pleased to hear from a farmer who had re- ceived compensation from the project that he was satisfied with the resettlement pro- cess and compensation and was keen to save the ancient bridge. In Siem Reap town Mr. Fan visitedAr- tisans d'Angkor, a private enterprise that provides jobs for more than 1,000 poor and disabled people in Siem Reap prov- ince, who work on Khmer arts and crafts. In the evening he met with Siem Reap Governor H.E. Sou Phirin to learn about development challenges in the province and how the World Bank could help. Mr. Fan met with Sar Kor Cambodia Water Supply company officers in Banteay meanchey province to learn about water supply and the benefit to households. November/December 2008 The World Bank Newsletter 5 New Country Manager Gets Down to the Grass Roots continued from page 4 lies in Psar Chup. Sa Kor Cambodia also supplies water to Phnom Touch and Phnom Thom community located along National Road 5 where 1,700 households are connected. "It was great to see how our project is providing clean and sustainable water to the people in the small towns and peri- urban areas," Mr. Fan said. "It is very grati- fying to see that our projects are helping address many of the challenges in the ru- ral area and having a real impact on the lives of ordinary people. We should all be very proud of these achievements." At Makak Junior High School, around 20 km from Banteay Meanchey town, Mr. Fan met with 65 scholarship students and their parents, as well as commune council members, the school director and teach- ers to learn how students are helped by the scholarship program, supported by the World Bank under the Education Sector Qimiao Fan, right, and community representatives looks at houses in the Public Support Project (ESSP). Garden of Prek Preah Sdach commune in Battambang town. An 8th grade scholarship recipient, Lim Kim Heng, said she used the money she out the scholarships. "It is clear that, the tion is one of the most effective means to got from the scholarship program to buy scholarships, while relatively small, have lift them out of poverty. a bicycle to travel to school, and school made an important difference in ensuring Mr. Fan also visited a biomass power materials.When asked by Mr. Fan on what access to education by the poorest fami- plant and rice mill along the road. Else- she would like to do when she grows up, lies in that community, particularly the where he talked to villagers who would she stood up and spoke in English: "I girls." benefit from the Rural Electrification and want to be a doctor." Mr. Fan thanked the parents who took Transmission Project (RETP) supported To get a sense of the value of the schol- education of their children, particularly by the World Bank. The RETP will help arship program, Mr. Fan enquired with the their daughters, seriously and supported provide stable and affordable electricity parents if they would have sent their chil- them going to school, despite their low to households in the rural areas. dren to school without the scholarships. income. "Girls who received an education O It is not surprising that most of the par- help not only themselves, but their chil- n the morning of his fourth day ents said they would have had great diffi- dren, families and the society." He encour- Mr. Fan visited a pilot project culty and several said they would not be aged parents to invest more in their supported by the Japan Social able to send their children to school with- children's education, saying that educa- Development Fund (JSDF), administered by the World Bank under the Land Allo- cation for Social and Economic Develop- ment (LASED) project. The pilot project is being implemented by Habitat for Hu- manity, in close collaboration with com- mune, district and provincial authorities. This project aims at allocating state land and providing land tenure security, shel- ter improvement, and livelihood support for about 400 households and the resettle- mentofotherfamiliesfromso-calledsquat- ter communities in Battambang town. Mr. Fan toured the community where cottages and houses are built on the roadsides and some right on the drains. Residents briefed him on the poor and unhealthy conditions they live in and urged a speedy start to the development of the project. Scholarship students at Makak Junior High School, Banteay Meanchey province welcome Mr. Fan and the education team during their visit. see NEW page 6 6 The World Bank Newsletter Noveember/December 2008 New Country Manager Gets Down to the Grass Roots Country Manager Fan, center, and Samaki Mean Chey district district governor Mu Samban, right, in Kampong Chhnang province, in the left photo, talk to villagers, right, about social land concessions. Continued from page 5 B but hugely important issue. A transpar- the improvement of people's living condi- efore heading back to Phnom ent and fully participatory process is criti- tions in the commune. Council members Penh, on Sunday November 2, cal to the success of the program. It is and villagers proudly talked about the 2008, Mr. Fan visited another pi- hoped that the lessons and experience small infrastructure projects and took him lot project in Preah Theat commune, gained through this pilot will further in- to the access road that they have built Samaki Mean Chey district, Kampong form the scale up of the social land allo- using financing from the Commune/ Chhnang province, implemented by the cation program under LASED. Sangkrat Fund under the World Bank- Lutheran World Federation (LWF). This I supported RILGP. pilot is also funded by JSDF under the n the third week of his first month in LASED project. Under this pilot project, Cambodia, together with Jim Hagan, For the fourth week of his first month, the Government will find available state the World Bank's Executive Director Mr. Fan visited coastal provinces to learn land and allocate it to farmers who have for Cambodia, Mr Fan visited a water about trade activities and living conditions no or little land. In the classroom of a tower being built as part of the World of fishery communities. new school building, Mr. Fan met with Bank-supported Provincial and Peri-Ur- I around 30 villagers, some of whom have ban Water Supply and Sanitation Project n Sihanoukville he visited and ob no land for farming and hope to get state in Takmau Town, Kandal province. The served the Reproductive Health As- land allocation through the project. Vil- water tower will improve water supply to sociation of Cambodia (RHAC) dis- lagers told him and the local government households in Takmau town, 7,000 of trict forum on improving health services. officials who were present how impor- which are already connected. The forum is supported by the World tant land allocation is for their liveli- Bank through the Small Grants Program, hoods. Through the hour-long discus- AtPrekSdeicommuneinKandalprov- which provided a small grant of $9,000. sion, it is clear land allocation for social ince Mr. Fan met with commune council The grant is aimed at strengthening the and economic development is a complex members and villagers who briefed him on capacity of community-based agents (CBAs) to increase their ability to interact with and influence the commune council and the Operational District Health Equity Fund Steering Committee. Mr. Fan learned about both achievement and challenges of health services in the rural areas, and the need for further improvements. On the same day Mr. Fan visited the ASYCUDA (Automated System Customs Data) pilot at the Port of Sihanoukville, funded under the World Bank's Trade Fa- cilitationandCompetitivenessProject. The projectaimsatimprovingCambodia'scom- petitiveness by streamlining import/export formalities and reducing costs of trade-re- latedactivities. Whileithasonlybeenmade operational for a few months, it is clear that theinstallationanduseofASYCUDAhave Mr. Fan talks with Phnom Penh Water Supply officer and private contractor to learn about progress of the water tower construction in Takmao town. See NEW page 7 November/December 2008 The World Bank Newsletter 7 New Country Manager Gets Down to the Grass Roots (CEDAC).The farmer, Ros Mao, who was only able to grow one rice crop a year and nothing else in his 3000-square-meter rice field just three years ago, told Mr. Fan how he turned it into a multiple-purpose farm. Using new planting technology, cross- planting vegetables and fruits and add- ing fish farming (raising frogs, eels and fish) to his small plot, Mr. Ros Mao was able to triple his rice output and generat- ing an additional cash income of over US$1,700 a year for his family. With the additional income he has generated, he has purchased more land from his neighbours and is expanding his farming Country Manager Fan and Sihanoukville Customs staff after a demonstration of business. Because of his success, other the ASYCUDA system. farmers in the area are beginning to follow greatly improved the customs clearance Bank's Health Sector Support project and his suit and he is providing training to his process and significantly reduced the time provides free health coverage for poor fellow farmers on a regular basis. and costs of businesses. In addition, it families. Beneficiaries told Mr. Fan about hashelpedreducecorruptionasthestream- the significant improvements in the access At the end of his trip, Mr. Fan re- linedandautomatedprocesshaseliminated and use by the poor of health services as marked, "I have learned so much about many opportunities for discrete decisions a result of this community-based health Cambodia in the short few days in the and thus for rent-seeking. Mr. Fan was insurance scheme which pulls together countryside. Agriculture development is delighted to see the relatively modest the resources of the World Bank project, critical for poverty reduction in Cambo- ASYCUDA office accommodating a large the community and the families. dia and there is a lot of potential. Just number of brokers who were busy input- imagine what Cambodia's countryside tinginformationintothesystematthecom- To conclude his first month's visit to wouldlooklikeifeverysmallholderfarmer puter terminals while the customs officers the countryside, on Sunday November 23, is working like Mr. Ros Mao. For farmers examining and clearing these documents 2008, Mr. Fan visited a smallholder farmer to reach that potential, it will require sig- inrealtimerightnextdoor. Hewasinformed who has piloted multiple farming system nificant investment in rural infrastructure, bythesub-projectdirectorthatASYCUDA inTram Kok district,Takeo province, with agriculture technology and extension will soon be expanded into other ports and support from Centre d'Etude et de services, but the returns for poverty re- dryportsinthecountryandthatwillgreatly Developpement Agricole Cambodgien duction can be huge." improve trade facilitation. In the afternoon, Mr. Fan met with a group of fishermen from the Tnuot fisher- ies community in Kampot province. The fishermen told him that due to illegal fish- ing and competition from large fishing companies, they are facing rapidly declin- ing fish resources and increasing con- flicts. As a result, they are generating less and less income from fishery to support their families. To protect their livelihood, they would like to see stronger enforce- ment of laws and government regulations to reduce illegal fishing. They would also like to diversify into other agricultural ac- tivities, but the lack of land, financing and irrigation systems makes diversification extremelydifficult. In late afternoon of the same day, Mr. Fan visited a health center and met with provincial health officials and beneficia- ries of a community health insurance scheme. The scheme is supported through World Bank Country Manager Qimiao Fan learns about multiple farming from the Health Equity Fund under the World farmer Ros Mao in Tram Kok district in Takeo province. November/December 2008 The World Bank Newsletter 8 World Bank Executive Director Hagan Visits Cambodia World Bank Executive Director Jim Hagan learns about mat-weaving in Prek Sdei commune in Kandal province. continued from page 1 achievements over the past few years, thaninmanyotherpartsofCambodia.Dur- the Provincial and Peri-Urban Water Sup- such as rural roads, irrigation channels, ing2009,incooperationwithaprivatecom- ply and Sanitation Project, one of the and bridges. These improvements were pany, the commune plans to connect elec- projects the World Bank supports. Mr. accomplished under the Rural Investment tricity to 90 percent of its households. Hagan and Mr. Fan were briefed by Mr. and Local Governance project, supported "If we compare our people's lives now Samrith Sovithea, Director of Technical by the World Bank and other donors. with five years ago, there has been a great Department and Study of the Phnom Penh The Bank representatives also learned improvement," Mr. Kouy said. "You can Water Supply Authority, on the progress how the commune works to serve its see our people have more motor-bikes and of the Takmau construction and its chal- people, as well as about local businesses almost no thatched houses any more." lenges. The water tower will improve sup- in Prek Sdei commune such as weaving, At the end of his second visit to Cam- ply to households in Takmau town, 7,000 handmade truck, a plastic water-container bodia Mr. Hagan said, "I got a much bet- of which are already connected. factory,andagarmentfactorythatemploys ter understanding of how important a reli- able water supply is to the community and I was impressed by the commitment of Bank staff to working the innovative ways that low income households are assisted," and added, "It's withtheCambodianGovernmentandpeople.IfeelIhavelearned clear that the joint support of the World a lot on my second visit and look forward learning more in Bank and Government of Cambodia have future visits. enabled the commune to shape its future. Jim Hagan, World Bank Executive Director This is effective partnership. I was im- pressed by the commitment of Bank staff At Prek Sdei commune building of- around 300 workers. Mr. Kouy said most to working with the Cambodian Govern- fice in Kandal province Mr. Hagan and agricultural products, such as rice, mung ment and people. I feel I have learned a lot Mr. Fan met with commune council mem- beans and peanuts, are sold to Vietnam on my second visit and look forward learn- bers and heard about progress in the im- through middle-men. In return, villagers ing more in future visits." provement of people's living conditions buy fertilizers, pesticides, seed and fuel. For more information please contact: in the commune. PrekSdeicommuneisonly15kmfrom Mr. Bou Saroeun Prek Sdei commune chief Mr. Kouy Vietnam, so people have access to elec- Communications Specialist Kea briefed the team about his commune's tricitythatisonly650rielperkWh,cheaper Email: sbou@worldbank.org TheWorldBankOffice Cambodia 113, Norodom Blvd. Phnom Penh,Tel: (855 23) 217 301 Fax (855 23) 210 504 Khmer website: www.worldbank.org.kh and English website: www.worldbank.org/kh