Cambodia's economy has withstood domestic pressures and managed to sustain its high growth driven by its usual engines of growth. The external sector improved as a result of slower imports due to dampened domestic demand.
... See More + The post-election adverse effects slowed down the demand for imports, while export growth advanced. Inflation rose to 4.7 percent year-on-year at the end of 2013, up from 2.5 percent at the end of 2012. Inflation is projected to remain in mid-single-digits over the short term. Financial deepening continues but the gap between credit and deposit growth rates has widened, reducing bank liquidity. Government revenue growth has moderated, resulting in an increase in the fiscal deficit. The latest joint World Bank and International Monetary Fund (IMF) debt-sustainability analysis (DSA) conducted in 2013 shows that Cambodia's debt-distress rating remains low, with all debt-burden indicators projected to be below respective thresholds. The prospects for sustaining high growth appear favorable, and real growth for 2014 is projected to reach 7.2 percent, given expectations of renewed confidence and political stability, underpinned by the strengthening of the economic recovery in developed economies. Appropriately managing domestic pressures in order to gain from the improved global economic environment will help maintain macroeconomic stability. Enhancing regional integration will also enable Cambodia to benefit more from the growth dynamics throughout the Association of Southeast Asian Nations (ASEAN) region. While Cambodia does have some fiscal space to increase wages, a cautious and careful approach to pay raise may work best.
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Cambodia's economy has withstood domestic pressures and managed to sustain its high growth driven by its usual engines of growth. The external sector improved as a result of slower imports due to dampened domestic demand.
... See More + The post-election adverse effects slowed down the demand for imports, while export growth advanced. Inflation rose to 4.7 percent year-on-year at the end of 2013, up from 2.5 percent at the end of 2012. Inflation is projected to remain in mid-single-digits over the short term. Financial deepening continues but the gap between credit and deposit growth rates has widened, reducing bank liquidity. Government revenue growth has moderated, resulting in an increase in the fiscal deficit. The latest joint World Bank and International Monetary Fund (IMF) debt-sustainability analysis (DSA) conducted in 2013 shows that Cambodia's debt-distress rating remains low, with all debt-burden indicators projected to be below respective thresholds. The prospects for sustaining high growth appear favorable, and real growth for 2014 is projected to reach 7.2 percent, given expectations of renewed confidence and political stability, underpinned by the strengthening of the economic recovery in developed economies. Appropriately managing domestic pressures in order to gain from the improved global economic environment will help maintain macroeconomic stability. Enhancing regional integration will also enable Cambodia to benefit more from the growth dynamics throughout the Association of Southeast Asian Nations (ASEAN) region. While Cambodia does have some fiscal space to increase wages, a cautious and careful approach to pay raise may work best.
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The development objective of the Demand for Good Governance Project for Cambodia is to enhance the Demand for Good Governance (DFGG) in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons.
... See More + The six month closing date extension will be the second extension of the project, and bring the total cumulative extension of the original closing date (March 31, 2013) to 18 months. This extension of the project closing date is required for two of the four implementing agencies, the Ministry of Interior Project Coordinating Office (PCO) and the Arbitration Council (AC). An extension will facilitate transition and sustainability, and support two qualitative results (policy and practice triggers and sustainable capacity).
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Social accountability (SA) refers to the extent and capability of citizens to hold the state accountable and make it responsive to their needs.
... See More + Although its importance for better governance and reducing corruption is being increasingly recognized, many non-state actors (NSAs) do not have sufficient capacity to effectively engage in SA activities. Consequently, capacity building of NSAs is essential for strengthening SA, and in many countries, demand for programs to build such capacity is growing. The program to enhance capacity in social accountability (PECSA) in Cambodia is an example of this type of program. Launched in May 2007, and completed in June 2010, PECSA was a United States (U.S.) 2 million dollars grant program managed by the World Bank on behalf of the Royal Government of Cambodia (RGC). It was comprised of a range of capacity-building activities, including formal training, mentoring and coaching, exposure visits, and networking as well as grants for implementation of pilots to apply SA tools on the ground. Over its three-year implementation, PECSA trained a total of 218 civil society organizations (CSOs), CSO leaders, and government officials; awarded 31 grants to 29 CSOs for pilot projects; and convened three large national networking events that brought approximately 1,600 SA practitioners together. The independent end-term evaluation of PECSA revealed a high degree of satisfaction with the program from beneficiaries and PECSA graduates. Fifty-six percent of end-term survey respondents planned to continue working on SA after the close of the program. As a successful capacity-building program on SA implemented in an otherwise difficult governance context, PECSA can offer several insights and lessons that may be helpful to teams designing similar SA programs in the future. Summarizing these lessons is the purpose of this note.
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