Cambodia | World Bank

Cambodia - Avian and Human Influenza Control and Preparedness Emergency Project : environmental management plan

The objectives of the Avian and Human Influenza (AHI) Control and Preparedness Emergency Project for Cambodia are to: (i) control outbreaks of avian influenza in poultry and thus to limit the economic costs of the disease and the potential for its expansion into humans; and (ii) minimize the risks and consequences of a pandemic by planning for such an outbreak, both in terms of human health services but also in terms of preparedness in society as a whole. Negative measures include: culling of poultry; waste management; disinfection of farm surfaces, equipment, and materials; and disinfection and disposal of used personal protection equipment (PPE). Mitigation measures include: a) select the most appropriate disinfectant based on such criteria as effects of disinfectants on human health and the environment, availability and costs of the disinfectants in Cambodia, and compatibility of the disinfectants with the disposal methods of the wastes (e.g. chlorinated disinfectants should not be used if the disposal method is cremation/incineration); and b) based on consideration for humane, safe and efficient culling and experience from the previous AHI outbreaks in Cambodia, after evaluation of alternative culling methods select the most appropriate culling methods for chickens and ducks in backyard farms with few numbers of birds, and for commercial farms with large number of birds. Based on this selection, prepare the standard operating procedures (SOPs) for culling of birds. Provide the design and operating requirements if a gassing system is selected (e.g. including specific locations and quantities of stocked carbon dioxide).

Status of Projects in Execution (SOPE) - FY09 : East Asia and Pacific region - Cambodia

The Status of Projects in Execution (SOPE) report for FY09 provides information on all International Bank and Rural Development (IBRD)/International Development Association (IDA) projects that were active on June 30, 2009. The report is intended to bridge the gap in information available to the public between the project appraisal document, disclosed after the Bank approves a project, and the implementation completion report, disclosed after the project closes. In addition to the project progress description, the FY09 SOPE report contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date for all active projects.

Cambodia - Land Management and Administration Project : request for inspection

On September 4, 2009, the inspection panel (the 'panel') received a request for inspection (the 'request') related to the Cambodia: Land Management and Administration Project (LMAP). The requesters state that members of one of the communities affected by the project have suffered serious harm from the design and implementation of the project and claim that the issues of the affected community need be urgently addressed because further, severe harm may be caused by the project in the very near future. The requesters have asked the panel to keep confidential their names, the names of the people they represent, and the name of the community. According to the development credit agreement, the project is aimed at assisting the borrower in its efforts to implement a 'program of actions, objectives and policies designed to improve land tenure security and promote the development of efficient land markets.' In this regard, the project objectives include: (i) the development of adequate national policies, a regulatory framework and institutions for land administration; (ii) the issuance and registration of titles in rural and urban areas in the project provinces; and (iii) the establishment of an efficient and transparent land administration system.

Cambodia - Public Financial Management and Accountability Project : procurement plan for goods and consultant services (2009)

Are there diminishing returns to transfer size in conditional cash transfers ?

There is increasing evidence that conditional cash transfer programs can have large impacts on school enrollment, including in very poor countries. However, little is known about which features of program design -- including the amount of the cash that is transferred, how frequently conditions are monitored, whether non-complying households are penalized, and the identity or gender of the cash recipients -- account for the observed outcomes. This paper analyzes the impact of one feature of program design -- namely, the magnitude of the transfer. The analysis uses data from a program in Cambodia that deliberately altered the transfer amounts received by otherwise comparable households. The findings show clear evidence of diminishing marginal returns to transfer size despite the fact that even the larger transfers represented on average only 3 percent of the consumption of the median recipient households. If applicable to other settings, these results have important implications for other programs that transfer cash with the explicit aim of increasing school enrollment levels in developing countries.

Cambodia - Demand For Good Governance Project : procurement plan

Cambodia newsletter Vol. 7 (No. 6 and 7)

In this issue: Ms. Sim: now I have land. It is a great asset; Koh Kong village eco-site saves mangroves; World Bank country manager learns from Cambodians; and sixth public information center-corner opens.

Own and sibling effects of conditional cash transfer programs : theory and evidence from Cambodia

Conditional cash transfers have been adopted by a large number of countries in the past decade. Although the impacts of these programs have been studied extensively, understanding of the economic mechanisms through which cash and conditions affect household decisions remains incomplete. This paper uses evidence from a program in Cambodia, where eligibility varied substantially among siblings in the same household, to illustrate these effects. A model of schooling decisions highlights three different effects of a child-specific conditional cash transfer: an income effect, a substitution effect, and a displacement effect. The model predicts that such a conditional cash transfer will increase enrollment for eligible children - due to all three effects - but have an ambiguous effect on ineligible siblings. The ambiguity arises from the interaction of a positive income effect with a negative displacement effect. These predictions are shown to be consistent with evidence from Cambodia, where the child-specific program makes modest transfers, conditional on school enrollment for children of middle-school age. Scholarship recipients were more than 20 percentage points more likely to be enrolled in school and 10 percentage points less likely to work for pay. However, the school enrollment and work of ineligible siblings was largely unaffected by the program.

School enrollment, selection and test scores

There is a strong association between schooling attained and test scores in many settings. If this association is causal, one might expect that programs that increase school enrollment and attainment would also improve test scores. However, if there is self-selection into school based on expected gains, marginal children brought into school by such programs may be drawn disproportionately from the left-hand side of the ability distribution, which could limit the extent to which additional schooling translates into more learning. To test this proposition, this paper uses data from Cambodia. The results show that a program that provides scholarships to poor students had a large effect on school enrollment and attendance, which increased by approximately 25 percentage points. However, there is no evidence that, 18 months after the scholarships were awarded, recipient children did any better on mathematics and vocabulary tests than they would have in the absence of the program. The paper discusses results that suggest that the self-selection of lower-ability students into school in response to the program is an important part of the explanation. The analysis also shows minimal program effects on other outcomes, including knowledge of health practices, expectations about the future, and adolescent mental health.

World Bank Cambodia oil & gas special supplement : getting petroleum products to market

The sharp price increases in the world oil market in 2007 and 2008 took everyone by surprise. And just as some oil analysts were forecasting US$200 a barrel or even higher, the oil price collapsed in the last four months of 2008. The speed at which the price changes on the world market were transmitted to retail prices became the subject of much debate. Consumers the world over argued that something was not right with the way their petroleum markets were functioning, benefiting oil companies and harming consumers. What determines these prices? This briefing note provides an overview of the petroleum product supply chain and factors contributing to retail prices.

Cambodia - Provincial and Peri-Urban Water Supply and Sanitation Project : procurement plan

Cambodia - Smallholder Agriculture and Social Protection Support Operation Program

The Smallholder Agriculture and Social Protection Support Operation Program complement the Royal Government of Cambodia's efforts to address weaknesses in smallholder agricultural production and social protection systems which have come to light during the food price crisis. When high food and agricultural input prices hit Cambodia in early 2008, it was clear that existing mechanisms were insufficient to support vulnerable consumers and farmers. These weaknesses garnered much greater attention by both the Government and development partners given the on-going effects of high food prices and as the impact of the global economic crisis are increasingly felt. The US$13 million Development Policy Operation (DPO) - consisting of a US$8 million grant from the Global Food Response Program and US$5 million in International Development Association (IDA) credits, is a stand-alone, single tranche operation intended to support key policy actions which strengthen the enabling environment for direct support poor households. It recognizes the actions taken by Government to stimulate a supply response amongst smallholder farmers, and to mitigate the impact on household food consumption among poor and vulnerable populations. The operation also supports medium-term efforts to improve social safety nets and agricultural production systems through better policies, strengthened institutional frameworks, and improved transparency and governance.

Cambodia - Road Asset Management Project : procurement plan

Cambodia - Education Sector Support Project : procurement plan

Cambodia - Smallholder Agriculture and Social Protection Support Operation Project

Cambodia newsletter Vol. 7 (No. 4)

In this issue: best wishes for a happy Khmer new year 2009 - trade development support program launched; making trade easier to attract investors; Merit Based Performance Initiative (MBPI) for improved service delivery; and small grantees share lessons learned.

Second investment climate assessment : a better investment climate to sustain growth in Cambodia

The objectives of this Investment Climate Assessment (ICA) are to: (i) provide an up-to-date, fact-based analysis of the business environment for policy-makers in the Royal Government of Cambodia (RGC), the private sector, civil society, and development partners; and (ii) outline priorities for improving the business environment and suggest policy options. The body of this report is comprised of three chapters. Chapter one gives a picture of the private sector in Cambodia in early 2008, including its structure, main features, and overall performance across key sectors and nationwide. The sectors featured are: garments, food packaging, telecoms, and finance. Chapter two reviews the business environment, starting with existing firms' perceptions of the business environment, and then goes into more depth on each dimension. The chapter concludes by discussing which of these challenges are truly binding constraints on growth. Chapter three, after taking stock of on-going reform efforts, concludes with some key directions for reform and a few concrete policy options for the short and medium term.

Cambodia - Education Sector Support Scale Up Action Program Project : procurement plan for June 2008 to December 2009

Cambodia newsletter Vol. 7 (No. 3)

In this issue: Cambodia needs to address constraints to future growth, new World Bank report says; and world downturn gives new focus to report on Cambodia's growth.

World Bank Cambodia oil and gas special supplement : country experience with petroleum revenue funds - part 2

A number of developing countries have established petroleum revenue funds. A recent study constructed a scoreboard comparing sovereign wealth funds from around the world, most of them deriving income from petroleum revenues. Among developing countries, Timor-Leste and Azerbaijan run two highest ranking petroleum revenue funds. This note describes and contrasts the funds in these countries.

The project Smallholder Agriculture and Social Protection Support Operation has changed to Closed

2009-11-17T05:00:00.000Z

The project Smallholder Agriculture and Social Protection Support Operation has changed to Closed. To see more information, see the project information in the World Bank project database

Domestic Demand in China Helps Fuel the Region's Resurgence but Some Countries Still Struggling, Says World Bank's East Asia and Pacific Update

2009-11-04T04:00:00.000Z

Contacts:
In Washington, DC:
Elisabeth Mealey +1 (202) 458-4475
emealey@worldbank.org
Mohamad Al-Arief +1 (202) 352-4745
malarief@worldbank.org

Washington, DC, November 3, 2009 -- The economic rebound in East Asia and the Pacific has been surprisingly swift and very welcome but take China out of the equation and the regional picture is less rosy, says the World Bank's half-yearly assessment of the economic health of the East Asia and Pacific region.

The latest East Asia and Pacific Update, titled Transforming the Rebound into Recovery, says large and timely fiscal stimulus spending in most East Asian and Pacific countries – led by China and Korea – along with a powerful process of inventory restocking now underway, have driven the rebound in the region and contributed significantly to confidence in a global pick-up.

Developments in the East Asia & Pacific region remain strongly influenced by China, where the projected increase in GDP in 2009 will offset three quarters of the decline in the GDPs of the U.S., the Eurozone and Japan. But despite Indonesia and Vietnam performing well, developing East Asia¹ excluding China is projected to grow at around 1 percent in 2009 -- more slowly than South Asia and the Middle East and North Africa, and only slightly stronger than Sub-Saharan Africa. Some countries remain especially hard hit – GDP is contracting in Cambodia, Malaysia and Thailand and is barely growing in Mongolia and some of the Pacific Islands, the report says.

As enterprises, both formal and informal, adjusted to weaker demand earlier in the year, workers across the region have been impacted in different ways. Enterprises cut workers’ hours, eliminated extra shifts, let temporary or contract workers go, or lowered wages – but some of these measures are now being reversed. Relatively few full-time employees have been laid off as companies have tried to limit recruitment and training costs when demand picks up. Workers who have been let go have typically found jobs in services and agriculture, often in the informal sector at lower pay and in more challenging working conditions. In some countries, fiscal stimulus packages have supported the creation of temporary public employment.

The report estimates that 14 million people who would have emerged from $2-a-day poverty if the region’s economies had kept growing at pre-crisis levels, will remain in poverty in 2010.

However, with projected growth of 8.4 percent in China this year and the country’s domestic demand racing ahead of global demand, countries exporting consumer durables, electronic components and raw materials to China have felt the positive flow-on effects. As a result, the World Bank is projecting growth of 6.7 percent in 2009 for developing East Asia and the Pacific and 7.8 percent next year.
As officials, ministers and heads of state from the 21 member countries of the Asia-Pacific Economic Cooperation (APEC) forum head to Singapore later this week, the World Bank’s chief economist for the East Asia & Pacific region, Vikram Nehru warned that risks to a sustainable recovery remain.

“Some governments in the region will have the fiscal space to sustain fiscal stimulus until recovery is on a firmer footing,” he said. “The time to begin removing monetary accommodation may come earlier however, especially given concerns about asset price bubbles.”

He said looking beyond 2009, countries in the region can still grow rapidly even if growth in the advanced economies is slow. To take advantage of the growth potential ahead, countries need to resist protectionism, remain open and become more, not less integrated with the regional and global economies.

“Moving up the value-added chain in global and regional production networks should lead to further productivity gains and strong growth, and allow for new technologies and innovation to spread more widely through the region’s economies,” Nehru said.

The report’s lead author Ivailo Izvorski said the crisis has helped governments realize that more growth can be extracted from domestic demand if incentives that have limited expansion in private consumption and services are tackled.

“Rebalancing growth need not be presented as a choice between relying on global markets or on domestic markets,” Izvorski said. “It can be about extracting more growth from domestic demand as a complement to increasing integration within the region and the global economy. Facilitating the development of the service sector, addressing infrastructure bottlenecks, and boosting the quality of education need to be accompanied by developing better targeted and better funded social protection systems.

“Together with education and health, improved social protection systems will help reduce precautionary saving, promote domestic cohesion at a time of rapid regional and global integration, and enable countries to reap the full benefits from agglomeration economies, all of which are key to long-term economic success.”

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¹ Developing East Asia includes China, Indonesia, the Philippines, Thailand, Vietnam, Cambodia, Lao PDR, Mongolia, Papua New Guinea and the island economies of the Pacific.

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The East Asia and Pacific Update is the World Bank’s comprehensive review of the region’s economies. It is published twice yearly and is available on our website at http://www.worldbank.org/eapupdate

Statement from Robert B. Zoellick, President of the World Bank Group, On the Recent Natural Disasters in the East Asia Pacific Region

2009-10-02T17:30:00.000Z

ISTANBUL, October 2, 2009 - World Bank President Robert B. Zoellick has expressed his deepest sympathies to the thousands of people across the East Asia and Pacific region hurt by a string of natural disasters over the past week.

Typhoon Ketsana, which brought death and destruction to the Philippines, Vietnam, Laos and Cambodia, was followed by a tsunami that swept away villages in the Pacific Island nations of American Samoa, Samoa and Tonga. Then in two consecutive days, two major earthquakes hit the Indonesian island of Sumatra, killing at least 1,000 people, destroying homes and bringing down buildings and key infrastructure like bridges and roads.

Mr Zoellick said the World Bank Group was ready to assist governments of the region in their efforts to rebuild the lives of people who have been so badly affected.

“Every natural disaster requires a massive mobilization of expertise and resources,” Mr Zoellick said. “We bring a wealth of experience in working with Governments and communities to build back better after disasters like these and so, stand ready to help.”

World Bank teams are working closely with Governments and other development partners to assess the impact of the series of disasters and to pull together the resources needed for rebuilding.

Responding to the Impact of the Economic Crisis, Land and Legal and Judicial Reform High on the Agenda for Government-Development Partner Meeting

2009-09-29T08:53:15.000Z

Contacts:
Bou Saroeun (855) 23-217-301
sbou@worldbank.org

PHNOM PENH, Palais du Gouvernement, 29 September 2009 -- Senior ministers and officials from line ministries and Cambodia’s development partner community, along with representatives of civil society, came together this morning for the fifteenth Government-Development Partner Coordination Committee (GDCC) meeting.

The high-level forum, which is chaired by HE Keat Chhon, Deputy Prime Minister and Minister of Economy and Finance and convened by the Council for the Development of Cambodia (CDC), provided an important opportunity for Government and development partners to review progress on development goals and the response to the impact of the economic crisis, and to discuss other issues of priority concern including land and governance and accountability with a focus on legal and judicial reform.

“This meeting of the GDCC is taking place at a particularly critical juncture as we are seeing more clearly the impacts from the global economic downturn and the slowdown in Cambodia’s economic growth. The impact of the global economic crisis makes dealing with a number of key challenges such as land and governance much more urgent. It is an important moment to take stock jointly of development achievements and progress on priority reforms to date and the challenges that remain, and to discuss with the Royal Government how the development partners can support the Government to overcome these challenges,” said World Bank Country Manager Qimiao Fan.

Following the Government’s overview of the National Strategic Development Plan Update 2009-2013, development partners welcomed the news that social safety nets will be integrated into the NSDP as a cross-cutting sectoral policy issue and that an inter-Ministerial structure led by Ministry of Planning will be established to harmonize planning, public investment and official development assistance.

“Better integration is particularly critical in the context of the current global crisis and its impact on Cambodia, when it is essential that all available resources are allocated and managed with maximum efficiency and effectiveness. The extension of the National Strategic Development Plan for the period 2009-2013 provides a specific opportunity to focus attention on practical steps towards integration and to relate this to the achievement of national goals,” expressed Douglas Broderick, UN Resident Coordinator, on behalf of all development partners.

The Government Chairs of all 19 Technical Working Groups and their development partner co-facilitators contributed to a joint progress report, which gave particular emphasis to programmes and projects critical to Cambodia’s response to the global economic crisis. In responding to the impacts of the economic crisis, development partners agreed with the Royal Government on the need to rationalize non-priority spending and protect and increase budget allocation to priority social sectors such as Health and Education. The important work being done to develop a social safety net strategy was highlighted.

Noting the many opportunities to improve conditions for sustained growth available to Cambodia, the development partners emphasized the opportunity for Cambodia to improve its investment climate.

“Development partners agree with the Royal Government that the prospect for Cambodia is a modest recovery perhaps in the order of three to five percent annual growth for 2010 - well below the 10 percent of the past decade. It is vital for Cambodia to address the deeper roots of this year’s slowdown, by increasing export diversification, increasing competitiveness, realizing the potential of agri-business, strengthening the tourism sector and improving the business environment,” HE Ambassador Jean-François Desmazières, Ambassador of France said in his statement on behalf of all development partners.

With the impact of the economic crisis, a number of key challenges such as land and governance have become more urgent. Recalling the joint development partner statement issued in July that called for a halt to forced evictions until a fair and transparent mechanism for resolving land disputes is in place and a comprehensive resettlement policy is developed, HE Ambassador Frank Mann, Ambassador of Germany recognized that the land sector presents a complex challenge for both the Royal Government and development partners and reiterated development partners’ commitment to work with the Government to help address land issues in a just and equitable manner and to ensure that the rights of poor people are promoted and protected. He highlighted, on behalf of all development partners, the need for a coordinated inter-ministerial approach building on transparent processes for consultation with civil society and development partners when revising policy and legal framework.

“Opportunities for ordinary Cambodians to benefit from sustainable and inclusive economic growth to a large degree rest on the land sector. In the spirit of partnership and mutual accountability the development partners [are committed] to support the Royal Government of Cambodia to move forward with the drafting and implementation of an effective legal and policy framework on evictions, expropriations and resettlements,” Ambassador Mann said during his presentation to the forum.

The Government updated the meeting that all stakeholders, including civil society, will be invited to consultations on the Housing Policy, the Spatial Planning Policy, and the Policy Directives on Urban Squatters Settlement that are being developed by the Ministry of Land Management, Urban Planning and Construction.

In the area of governance and accountability, HE Ambassador Margaret Adamson, Ambassador of Australia, commended the Royal Government for its progress on two laws regularly discussed by Government and development partners; development partners look forward to the passage of the Penal Code by the National Assembly and the submission of the Anti-Corruption Law to the Assembly in the coming weeks. Ambassador Adamson voiced support for a strong and effective democracy in Cambodia and highlighted, on behalf of all development partners, the need for all Cambodians to be given full protection before the law, according to their Constitutional rights.

“Development partners strongly endorse the Prime Minister’s statement that effective, functioning courts led by an independent judiciary are a cornerstone of democracy, critical to economic development and improving the lives of the poor. Development partners stand ready to continue our support to implement key reforms in this area including to finalize the three basic laws that support the independence of the judiciary as enshrined in Cambodia’s Constitution,” said Ambassador Adamson.

Overall, Government and development partners enjoyed an open and constructive exchange of views on the challenges faced in meeting Cambodia’s development goals. A key outcome is the joint commitment by Government and development partners to continue this dialogue in the Technical Working Groups. Development partners supported the Government’s call for Technical Working Groups to examine carefully the constraints in implementation of programmes and projects critical in responding to the impact of the economic crisis.

Development partners are committed to continue engagement on the critical issues discussed today, including national strategic development planning, land and governance and accountability, supporting the Government to position Cambodia on a competitive, equitable and sustainable development path that benefits all Cambodians.

Background:

The Government-Development Partner Coordination Committee (GDCC) meeting happens two/three times per year and is chaired by the Royal Government of Cambodia and coordinated by the Cambodia Rehabilitation and Development Board with facilitation support from the World Bank. The GDCC is a high-level forum for Government-Development Partner coordination, dialogue and information sharing on policies related to socio-economic development of Cambodia.

Technical Working Groups (TWGs) are technical and operational forums chaired by Government and co-facilitated by development partners to discuss, agree upon and pursue clearly defined and measurable targets at the sector level, which contribute to the overall implementation of the National Strategic Development Plan.

East Asia & Pacific Countries Vulnerable To Climate Change, But ‘Climate-Smart’ World Is Still In Reach

2009-09-15T14:00:00.000Z

Contacts:
Merrell Tuck, tel.(202) 473-9516
mtuckprimdahl@worldbank.org
Kavita Watsa, tel. (202) 458-8810
kwatsa@worldbank.org

WASHINGTON, September 15, 2009 — The latest World Development Report finds that although many countries in the East Asia and Pacific region are vulnerable to climate change, developing countries can shift to lower-carbon paths while promoting development and reducing poverty if they receive financial and technical assistance from high-income countries.

World Development Report 2010: Development in a Changing Climate, released in advance of the December meetings on climate change in Copenhagen, says that advanced countries, which produced most of the greenhouse gas emissions of the past, must act to shape our climate future. If developed countries act now, a 'climate-smart' world is feasible, and the costs for getting there will be high but still manageable. Ramping up funding for mitigation in developing countries where most future growth in emissions will occur is vital.

"Countries must act now, act together and act differently on climate change," said World Bank President Robert B. Zoellick. "Developing countries are disproportionately affected by climate change – a crisis that is not of their making and for which they are the least prepared. For that reason, an equitable deal in Copenhagen is vitally important."

Countries need to act now because today’s decisions determine both the climate of tomorrow and the infrastructure and built-environment choices that shape the future. Countries need to act together because no one country can take on the interconnected challenges posed by climate change, and global cooperation is needed to improve energy efficiency and develop new technologies. Countries need to act differently, because business-as-usual could put the world onto a potentially catastrophic path with unacceptable costs to development.

Developing countries will bear most of the costs of the damage from climate change. Many people in developing countries live in physically exposed locations and economically precarious conditions, and their financial and institutional capacity to adapt is limited, says the report. Over half the countries in the East Asia and Pacific region are Pacific island nations, a number of which may not exist in 50 years on the current global climate path. Already, policymakers in some developing countries note that an increasing amount of their development budget is being diverted to cope with weather-related emergencies.

In the East Asia and Pacific region, the report finds three major drivers of climate vulnerability:

The large number of people living along the coast and on low-lying islands—for example over 130 million people in China, roughly 40 million in Vietnam and around 2 million Pacific Islanders, many of whom live on low lying islands and atolls.
The continued reliance, particularly among the poorer countries, on agriculture. As pressures on land, water, and forest resources increase—as a result of population growth, urbanization, and environmental degradation caused by rapid industrialization—greater variability and extremes will complicate their management. In the Mekong River basin, for example, the rainy season will see more intense precipitation, while the dry season lengthens by two months.
The regional economies’ high dependence on marine resources. The value of well-managed coral reefs is $13 billion in Southeast Asia alone—which are already stressed by industrial pollution, coastal development, overfishing, and runoff of agricultural pesticides and nutrients.

For developing countries to achieve the shift to a lower-carbon world depends on financial and technical assistance from high-income countries, the report says. High-income countries also need to act quickly to reduce their carbon footprints and boost development of alternative energy sources to help tackle the problem of climate change.

The report cites examples of strong action to combat climate change in the region. The Chinese government has taken the most aggressive energy efficiency campaign and has the largest renewable energy capacity in the world. Its target of a 20 percent reduction in energy intensity from 2005 to 2010 would reduce annual CO2 emissions by 1.5 billion tons by 2010, five times the 300-million-ton reduction of the European Union’s Kyoto commitment. In Rizhao, a city of 3 million people in northern China, skyscrapers are built to use solar power, and 99 percent of Rizhao’s households use solar-power heaters. In total, the city has over 500,000 square meters of solar water heating panels. As a result, energy use has fallen by nearly a third and CO2 emissions by half. Meanwhile, the Philippines and Indonesia have the world’s second and third largest geothermal capacities respectively.

The remarkable high economic growth in East Asia and Pacific, accompanied by rapid urbanization, deforestation and land use changes, comes at a heavy environmental price. Coal still dominates the energy mix in the region and most countries—whose average per capita emissions remain a fraction of those of high-income countries—need massive expansions in energy, transport, urban systems, and agricultural production. Sustaining growth using high-carbon technologies will produce more greenhouse gases, hence more climate change.

"Solving the climate problem requires a transformation of the energy systems towards higher energy efficiency and more low-carbon technologies," Justin Lin, World Bank Chief Economist and Senior Vice-President, Development Economics. "It is in the interests of developing countries to act now to avoid locking into high-carbon infrastructure."

The World Bank Group’s "Strategic Framework for Development and Climate Change" emphasizes mitigation and adaptation initiatives in its lending, while recognizing that developing countries need to encourage economic growth and reduce poverty. Investments in renewable energy, energy efficiency, and climate adaptation projects are growing.

The number of World Bank-financed studies that help client countries plan and implement low-carbon growth strategies are also growing, and the Bank Group’s energy financing is increasingly turning towards renewable energies and energy efficiency. In the East Asia & Pacific region, the Bank has completed several studies on the impacts of climate change and vulnerabilities to natural disasters and is increasing its support for climate change adaptation.

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Statement from the World Bank on Termination by Royal Government of Cambodia of the Land Management and Administration Project

2009-09-06T07:29:41.000Z

Contacts: In Phnom Penh: Bou Saroeun (855) 23-217-301
sbou@worldbank.org
In Washington: Elisabeth Mealey (202) 458 4475
emealey@worldbank.org

PHNOM PENH, September 6, 2009 — Following a decision by the Council of Ministers on Friday 4 September to terminate World Bank financing of the Land Management and Administration Project (LMAP), World Bank Country Director for South-East Asia, Annette Dixon, made the following statement:

“Land security and a fair, transparent approach to resolving land disputes and resettlement are among the greatest challenges facing Cambodia today. People without land or secure title to land are much more likely to be poor and stay poor.

It’s for these reasons that the World Bank has been working intensively with Government, development partners and other stakeholders since 2002 to put in place a modern and comprehensive land administration system. This project has issued more than 1.1 million land titles, mostly to poor people in rural areas. However, recent land price increases, which have averaged over 30 percent, have been leading to land disputes, compensation issues, eviction processes and resettlement issues.

As part of our continuing dialogue with Government on these growing challenges, the World Bank undertook a review to find out whether LMAP was still achieving its intended outcomes given the rapidly changing land sector environment.

The review found that LMAP’s successes in land titling in rural areas have not been matched in urban areas where land disputes are on the rise. This was due in part to delays or lack of implementation of some project activities. While originally designed as a multi-pronged approach to addressing a range of land issues, LMAP focused on areas where it could be most successful: titling rural land and building the capacity of the land administration to register and title land and implement policy.

We have shared the findings of the review with the Government but could not come to agreement on whether LMAP’s social and environmental safeguards should apply in some of the disputed urban areas. For the World Bank, the implementation of these safeguard policies is critical. However, we are encouraged by the Government’s statement of its commitment to continuing reforms in the land sector and working towards an improved policy and legal framework for resettlement that reflects their commitment to international treaties.

We remain committed to working with Government and other development partners through the Technical Working Group on Land to support Cambodia’s efforts to secure land tenure, reduce poverty, and improve economic opportunity for all of its people.”

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WORLD BANK HOLDS DISCUSSIONS ON REFORMS

2009-08-29T06:10:56.000Z

Contacts: In Phnom Penh: Bou Saroeun (855) 12-217-301
sbou@worldbank.org
In Washington: Elisabeth Mealey (202) 458 4475
emealey@worldbank.org

PHNOM PENH, August 29, 2009—World Bank Vice President for the East Asia and Pacific Region, Mr. James W. Adams, was in Phnom Penh on Thursday, August 27 and Friday, August 28, 2009 for meetings with senior government officials, development partners, and representatives from NGOs, research institutes and the private sector.

This was part of a regional visit that takes in Cambodia, Timor-Leste and China. Mr. Adams visited Cambodia to discuss and review the status of the World Bank’s support program in Cambodia, particularly in the areas of land reform, decentralization and deconcentration, public financial management, and private sector development.

Mr. Adams discussed with senior government officials the impact of the global economic crisis on the region in general and on Cambodia in particular, and measures to mitigate the impact of the crisis, especially on Cambodia’s most vulnerable people.

A major focus of the visit was Cambodia’s urban land sector and the increasing numbers of disputes and evictions of poor people in urban settlements. This included discussion of the report from the enhanced review of the Land Management and Administration Project (LMAP), which was undertaken in response to questions raised about a possible link between the project and these disputes.

The discussions on land reform were constructive and it was agreed to continue these discussions over the coming week to agree next steps.

The project Cambodia Environment and Protected Areas Management Project has changed to Dropped

2009-08-13T04:00:00.000Z

The project Cambodia Environment and Protected Areas Management Project has changed to Dropped. To see more information, see the project information in the World Bank project database

Cambodia's poorest to be supported through a new food security and social safety net prgram

2009-08-04T07:49:58.000Z

Contacts:
World Bank, Phnom Penh:
Bou Saroeun (855) 23-217-301
sbou@worldbank.org

Australian Embassy, Phnom Penh:
Lachlan Pontifex (855) 12-900-911
lachlan.pontifex@ausaid.gov.au

Phnom Penh, August 4, 2009 – Today the Ministry of Economy and Finance and the World Bank signed a US$13 million agreement to support Cambodia’s poorest and most vulnerable people by strengthening food security and social safety nets.

The World Bank has approved the Smallholder Agriculture and Social Protection Development Policy Operation to support the efforts of the Government of Cambodia to mitigate the combined impacts of the global food price and economic crises. The program aims to boost food security for poor households and expand safety net support.

“Even though Cambodia is a rice exporter, the poor are highly vulnerable to high food prices and it was not clear that smallholder farmers had the needed support for them to take advantage of higher prices to produce more,” said Annette Dixon, World Bank Country Director. “We hope that this operation will reinforce the excellent work of other programs from Government, NGOs and donors supporting agriculture and social protection in Cambodia. It will also help the poor to improve their agricultural production and access to market, and to protect the most vulnerable group through better policies.”

In particular, the program sets out to ensure better oversight and regulation of agricultural inputs such as fertilizer and seeds to improve food productivity at the small farm level. It will also accelerate the registration of farmers’ groups so that individual farmers can better access credit and marketing opportunities for their crops. At the same time, the program will improve targeting of the country’s social protection systems to reach the country’s neediest people.

The US$13 million DPO is made up of an $8 million grant from the Global Food Crisis Response Program (GFRP) and a $5 million credit from IDA, the World Bank’s fund for low income countries. The GFRP, to which the Australian Government was a significant contributor, is managed by the World Bank and provides financial and technical support to countries affected by the global food crisis.

The Australian Government, through AusAID, is contributing $AUD2.8 million for analytical and capacity building support and the design and evaluation of pilot activities to support the program. “We support the Cambodian Government’s focus on strengthening services for farmers—to increase productivity and also to combat poverty. The supply of better seeds and fertilizer and ensuring social safety net help reaches the poorest of the poor are welcome, concrete steps by the Royal Government, along with more support for farmer associations,” said Margaret Adamson, Australian Ambassador to Cambodia.

xxx

Development Partners Call for Halt to Evictions of Cambodia's Urban Poor

2009-07-16T18:30:00.000Z

Contact: Bou Saroeun (855 23) 217 301
sbou@worldbank.org

July 16, 2009--- Development Partners are calling upon the Royal Government of Cambodia to stop forced evictions from disputed areas in Phnom Penh and elsewhere in the country until a fair and transparent mechanism for resolving land disputes is put in place and a comprehensive resettlement policy is developed.

Development Partners recognize that land issues are an ongoing challenge to development in Cambodia and urge the Government to adopt fair and transparent systems for land titling, including in urban areas, which recognize and protect the equal rights of all citizens. Development Partners stand ready to support the establishment of national policy guidelines which would ensure that evictions and resettlement follow due legal process and provide just compensation to affected individuals.

The World Bank and a number of Development Partners have been working closely with the Government on securing land titling in Cambodia. The Government is commended for issuing more than one million land titles because this offers the opportunity for improved growth and poverty reduction.

However, in an environment of escalating urban land values in Cambodia and speculative land buying and selling, urban dwellers are under threat of being moved to make way for high value property development. This has become a major problem in Phnom Penh and other fast growing cities in Cambodia – creating uncertainty for, and putting at risk the livelihoods of, thousands of poor people living in disputed urban areas. This is a result of policies and practices that do not reflect good international practice in dispute resolution and resettlement and do not make effective use of the procedures and institutions allowed for in Cambodian law.

International experience has established that secure land tenure is vital in ensuring economic growth and reducing poverty and that fair, well-implemented resettlement processes are key to an effective land tenure and titling system and protecting the rights of all people.

Development Partners reaffirm their commitment to work with the Government to help address land issues in a just and equitable manner and to ensure that the rights of poor people are promoted and protected.

signed by:
Embassy of Australia
Embassy of Bulgaria
Embassy of Denmark / Danida
Embassy of Germany
Embassy of the United Kingdom
Embassy of the United States of America
Swedish International Development Agency (Sida)
Asian Development Bank
Delegation of the European Commission
United Nations
World Bank

The project Smallholder Agriculture and Social Protection Support Operation is now in the pipeline.

2009-07-10T04:00:00.000Z

The project Smallholder Agriculture and Social Protection Support Operation is now in the pipeline. To see more information, see the project information in the World Bank project database

Cambodia: Smallholder Agriculture and Social Protection Support Operation under the Global Food Response Program

2009-07-09T22:17:38.000Z

WASHINGTON, July 9, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Cambodia: Smallholder Agriculture and Social Protection Support Operation under the Global Food Response Program

IDA Credit: US$5 million equivalent

Terms: Maturity = 40 years; Grace period = 10 years

GFRP Grant: US$8 million equivalent

Project ID: P117203

Project Description: The Smallholder Agriculture and Social Protection Support Operation for Cambodia aims to complement the Royal Government of Cambodia’s efforts to address weaknesses in smallholder agricultural production and social protection systems which have come to light during the Food Price Crisis. As an emergency operation, the proposed operation was not anticipated under the current CAS though its focus on governance elements is consistent with the central focus of the Bank’s support to Cambodia.

Media Contact

Mohamad Al-Arief

(202) 458-5964

malarief@worldbank.org

For more information about the Bank’s work in Cambodia please visit: www.worldbank.org/kh

For more information, please visit the Projects website.

Cambodia’s poorest the target of new food security and social safety net program

2009-07-09T22:05:08.000Z

Contacts: In Washington: Mohamad Al-Arief (202) 458-5964

malarief@worldbank.org

In Phnom Penh: Bou Saroeun (855) 12-217-301

sbou@worldbank.org

Washington, DC, July 9, 2009 – When high food prices hit Cambodia in 2008, the country’s poorest and most vulnerable people were hit hard – highlighting weaknesses in existing smallholder agricultural production systems and throwing an estimated 100,000 families back into poverty. Then, the financial crisis saw around 200,000 garment, construction and tourism workers lose their jobs, bringing into focus the need for stronger social protection mechanisms across Cambodia.

To complement the country’s efforts to address Cambodia’s food security and social protection needs, the World Bank today approved a US$13 million Smallholder Agriculture and Social Protection Support Development Policy Operation (DPO). The program – which builds on recent efforts by Australia, Japan, Germany, ADB, the Food and Agricultural Organization and the World Food Programme – aims to boost food security for poor households and expand safety net support.

“High food prices and the global economic crisis have threatened to undermine Cambodia’s decade-long economic growth and poverty reduction,” said Qimiao Fan, World Bank Country Manager for Cambodia. “This operation will help to improve social safety nets and agricultural production systems through better policies, strengthened institutional frameworks and improved transparency and governance.”

In particular, the program sets out to ensure better oversight and regulation of agricultural inputs such as fertilizer and seeds to improve food productivity at the small farm level. It will also accelerate the registration of farmers’ groups so that individual famers can better access credit and marketing opportunities for their crops. At the same time, the program will improve targeting of the country’s social protection systems to reach the country’s neediest people.

The US$13 million DPO is made up of an $8 million grant from the Global Food Crisis Response Program (GFRP) and a $5 million credit from IDA, the World Bank’s fund for low income countries. The Australian Government, through AusAID, is contributing $AUD2.8 million for analytical and capacity building support and the design and evaluation of pilot activities to support the program.

The GFRP, to which the Australian Government was a significant contributor, is a multi-donor financing facility administered by the World Bank that provides financial and technical support to countries affected by the food crisis.

World Bank Group Significantly Boosts Support to East Asia and Pacific

2009-07-06T18:16:25.000Z

Contacts in Washington, DC:

Elisabeth Mealey (emealey@worldbank.org)

+1-202-458-4475

WASHINGTON, 6 July, 2009 — The World Bank Group responded quickly to the impacts of the global financial crisis on the countries of the East Asia and Pacific region in fiscal year 2009 with over US$9 billion in financing for development. This represents a significant increase on the amount of financing of the previous year. The World Bank Group also ramped up its technical assistance to help governments in the region address the social and economic impacts of the crisis.

World Bank Group Commitments fiscal years 2009 and 2008 (year ends June 30)
World Bank Group	FY09*	FY08*
IBRD	US$6.9	US$2.7
IDA	US$1.2	US$1.8
IFC	US$ 1.1**	US$ 1.6
Billions of U.S. dollars * Preliminary data

“Although growth in East Asia and Pacific still compares favorably with that of other regions, the poor and the vulnerable have been deeply affected by the global economic crisis,” said World Bank Group Vice President for the East Asia and Pacific Region, James W. Adams “In this region alone, more than 10 million people who would otherwise have moved out of poverty are expected to remain below the poverty line. We have adjusted our regional strategy and increased resources for the region to help countries weather the economic crisis and ensure priority programs remain on track. This includes investments in infrastructure, education, health, agriculture, and social safety nets.”

Many countries in the region were just beginning to recover from the food and fuel crisis of 2008 when the global financial crisis hit. The World Bank Group responded by increasing its support --in loans, grants, equity investments and guarantees-- to help countries and private-sector firms deal with the devastating effects of the global financial meltdown.

Commitments from the International Bank for Reconstruction and Development (IBRD)—which provides financing, risk management products, and other financial services to middle-income countries— increased in FY09 to $6.9 billion, up from $2.7 billion the previous year. The International Development Association (IDA), which provides interest-free credits and grants to the lowest-income countries, provided $1.2 billion in support in FY09.

As the largest provider of multilateral financing for the private sector in the developing world, the Bank Group’s private sector arm –the International Finance Corporation (IFC)— also increased its support to help boost private sector-led recovery. In FY2009, preliminary results indicate that IFC generated $1.1 billion of new business in 45 projects, seven of these are located in conflict-affected countries and regions, while one in every five projects has a climate change component.

Karin Finkelston, IFC’s Director for East Asia and Pacific, said “To help the region navigate the financial crisis, we focused our efforts on the poorest and most vulnerable countries. We are pleased that we were able to increase our financial commitments to IDA countries to nearly $400 million from around $200 million in 2008.”

The Multilateral Investment Guarantee Agency (MIGA) supported infrastructure development in south-west China, where fast urbanization and industrial growth have led to severe wastewater issues. The agency issued guarantees of $75.3 million to support two water projects, which will promote improved water quality as well as better environmental practices.

“As the leading international institution promoting foreign direct investment (FDI) in emerging and transition economies, MIGA can help investors mitigate risks in these uncertain times and play an important role in helping countries attract FDI,” says MIGA’s Executive Vice President Izumi Kobayashi. “MIGA can act as a stabilizing influence in the market.”

The Bank Group’s support in FY2009 in the East Asia and Pacific region by sector is as follows:

---

*For more information about the World Bank in the East Asia Pacific region, visit: www.worldbank.org/eap

The project Renewable Energy Development Project has changed to Closed

2009-07-02T04:00:00.000Z

The project Renewable Energy Development Project has changed to Closed. To see more information, see the project information in the World Bank project database

The main development objectives of the Rural Electrification and Transmission Project are to improve power sector efficiency and reliability, while reducing electricity supply costs, improve standards of living and foster economic growth in rural areas, by expanding rural electricity supplies, and, strengthen electricity institutions, the regulatory framework, and the "enabling environment" for sector commercialization and privatization. The transmission line component comprises the construction of a double circuit 220kV line from the border with Vietnam to Phnom Penh, and two associated substations; reinforcement of the grid around Phnom Penh, which involves lines and modifications to three substations and 22kV extension; establishment of a National Control Center to optimize load dispatch operations, and increase system security; and, building the Electricite du Cambodge (EdC) capacity in project management, land acquisition, resettlement and environmental monitoring and mitigation. The rural electrification component, supports EdC's grid extension program, covering medium, and low voltage lines and electrification for rural households. The Project will support the symbiotic relationship of EdC and the rural electricity enterprises (REEs), and whenever feasible, will make use of private sector providers in the operation of rural distribution systems. EdC would identify existing REEs, and options for public-private partnership, including distribution licensing, billing and collection arrangements, management contracts, and leasing arrangements. The pilot Rural Electrification Fund (REF) component, aims at implementing an innovative mini, and off-grid electrification program, as a transparent institutional mechanism for promoting rural electrification, established by the Government with administrative, managerial, technical and financial autonomy to channel sub-grants and technical assistance (TA) to the private sector, and rural communities. The REF will assist private sector developers in providing new connections, electricity to households using solar home systems, and add as well mini-hydro, and micro hydro capacity.

The project Rural Electrification and Transmission Project has changed to Closed

2009-07-02T04:00:00.000Z

The project Rural Electrification and Transmission Project has changed to Closed. To see more information, see the project information in the World Bank project database

ECO2 Cities: Q & A with Abha Joshi Ghani, Manager of Urban Development

2009-06-26T18:21:20.000Z

The lifestyle associated with cities is a key driver of global warming yet cities also offer the best means for slowing it, according to the Little Green Data Book 2009 (pdf), released last month at the 17th Session of the United Nations Commission on Sustainable Development. The World Bank’s Manager of Urban Development, Abha Joshi Ghani, looks at some of the challenges facing our rapidly urbanizing world, and offers a vision for the model city of the future.

Abha Joshi-Ghani, Manager
of Urban Development, WB

How big a problem is the pollution caused by cities?

Cities use 70 percent of the world’s energy and related resources, such as coal, oil and natural gas, the main causes of greenhouse gas emissions. They also consume more than 80 percent of the agricultural products and timber harvested in rural areas. But it’s the consumption oriented lifestyle of residents, not cities themselves, that leads to pollution. Interestingly, people who live in city centers tend to use fewer resources and generate less waste than their suburban neighbors. A resident of New York, for example, produces about a third the greenhouse gas emissions of a resident of a more spread-out city like Denver.

Is discouraging the growth of cities an option?

No. With more than half of their GDP coming from cities , the economic future of most developing countries will be determined by the productivity of these burgeoning urban populations. There is also an increasing recognition of the benefits of urbanization on poverty reduction. Moreover, cities can help provide a lifestyle that combines a high quality of life with the least amount of resource consumption. Cities, with their compact form, are much more efficient in delivering services such as water, sanitation, and shelter. It’s also not really possible to discourage the growth of cities. People want to move to cities. Countries that have tried to slow this movement are rarely successful.

What is wrong with the way cities currently operate?

The current design and planning practices for cities are rooted in the 19th century. Hugely successful in their time, these 19th century models are no longer the best solution, and in fact have become part of the problem. The world is now a lot more crowded and complex and requires more efficient, longer-term solutions for servicing urban areas.

What is the ideal city for the future?

The ideal city of the future offers a very compact, concise lifestyle. It’s a city that optimizes its growth potential by creating jobs. At the same time, it offers a good quality of life, good living standards, and services such as water, sanitation, and sewerage and transport. It’s also a city which is less consumption oriented, well managed, financially sound, and a city which is ecologically friendly, inclusive , and well managed. In short it is a sustainable city.

How can cities become more ecological and sustainable, while also playing a vital role as an engine of economic growth and driving force of poverty reduction?

A lot depends on what sort of public transportation systems has been installed, what energy efficiency actions have been taken, what policies are in place and are enforced,what kind of housing is available for its citizens, especially the poor. Is it pedestrian friendly? Do people actually have to travel long distances to get to their jobs?

Some cities are now putting in their main infrastructure arteries. A major transport system is like a skeletal system for a city and can last more than 100 years. If you’re not conscious about what kind of public transport system you’re putting in, the larger the city grows, the more congestion there will be on its roads. The richer the people are, the more they will want to drive. Then, it would be difficult for a city to grow into a more environmentally sustainable city.

That said, there are many things cities can do. Most of them are city-specific, but one thing all cities can do is prepare for the future. The future will bring many changes, and cities that are resilient will be able to respond better to future challenges. Part of that involves fostering robust and respectful communications between city officials and the community. Building in redundancy for key infrastructure is also important. Levels of pollution need to be low enough and managed well enough to ensure that the local and global ecosystem can accommodate them. Sustainability is usually predicated on providing a healthy environment for all residents, particularly the most vulnerable.

Are some cities too well established to change?

I think it’s difficult for a city to suddenly reinvent itself, because a certain amount of the DNA of a city—how it has grown for the last 60, 70 years—will always remain there. But they can definitely determine how they plan to grow as more people move in, and also how they want to rehabilitate areas that need regeneration. Also, cities are organic, they are constantly changing and renewing themselves.

What is the World Bank's Eco² program and how will it help?

“Eco² Cities: Ecological Cities as Economic Cities” is a new program to help cities in developing countries achieve greater ecological and economic sustainability. The program will provide practical and scalable, analytical and operational support to cities. The program also aims to build a global partnership among forward-looking cities in developing countries, global best-practice cities, academia, and international development communities.

Are there any success stories out there?

Some of the cities we look to are Yokohama, Japan, Curitaba, Brazil, Barcelona, Spain, Bogota, Colombia, and the old city in Stockholm called Hammarby.

These cities have introduced more efficient public transport—metro and bus rapid transit--and green spaces. They have consciously brought down their energy use through more efficient street lighting and buildings and being energy efficient in the utilities they run. They’ve introduced bicycle paths and encouraged people to cycle. There are also almost always a few neighbourhoods within big cities that are a little farther advanced than the rest of the city. Good examples are really almost everywhere. More importantly, some cities are just beginning to grow – and they have all the potential to grow in a sustainable way carefully managing their resources.

Sustainable Urbanization – Economically and Ecologically - Is Focus of New Program

2009-06-26T17:51:22.000Z

Urbanization in developing countries is a defining feature of the 21st century
While urbanization has enabled economic growth, it has contributed to climate change, pollution, congestion, and the growth of slums
The World Bank’s new Eco² Cities Program aims to alter the way cities develop by avoiding growth that fosters inefficient use of energy and resources
Successful cities create opportunities for citizens in an inclusive, sustainable, and resource-efficient way, while protecting the local ecology and global public goods

June 26, 2009—It took the world hundreds of years to build today’s urban space of 400,000 square kilometers of cities.

It will take only about another 30 years to build that same amount of urban space in cities of developing countries, according to projections for urbanization in developing countries.

This rapid urbanization may be the “single greatest development challenge and opportunity in our century,” says a report outlining a new World Bank program called Eco² Cities: Ecological Cities as Economic Cities, launched today in Singapore.

The report notes that while urbanization has enabled economic growth, it has also contributed to environmental and socio-economic challenges, including climate change, pollution, congestion, and the rapid growth of slums.

The Eco² Cities Program is, in effect, a call to alter the way cities develop—to avoid the kind of growth that fosters heavy and inefficient use of energy and resources, while helping cities become climate-friendly economic centers. And to do so quickly.

“We have a once in a lifetime opportunity to plan, develop, build and manage cities that are simultaneously more ecologically and economically sustainable,” says Katherine Sierra, World Bank Vice President of Sustainable Development.

“The Eco² Cities Program is complementary to the ongoing efforts the World Bank and its development partners are making in sustainable development and climate change.”

Eco² Cities Offers Urban Development Framework

Jim Adams, vice president for the World Bank’s East Asia and Pacific region, adds that the pace of urbanization in Asia alone points to the urgency for an integrated economic and ecological approach to city development.

“Eco² is being launched at a critical historic juncture – urbanization in developing countries is a defining feature of the 21st century,” he said. “There is only a short space of time in which to make an impact on how this development takes place.”

Stockholm, Sweden

The Eco² Cities Program has just completed its first phase—a comprehensive three-part book presenting the overall analytical and operational framework of the program.

The program’s next step is to apply this framework in several cities, and eventually be mainstreamed through national-level urban development strategies.

Representatives from Vietnam, the Philippines, and Indonesia will hear about the program first-hand this week at a presentation in Singapore.

Eco² Cities team leader Hiroaki Suzuki and co-team leader Arish Dastur say the program recognizes that successful cities create economic opportunities for their citizens in an inclusive, sustainable, and resource-efficient way, while also protecting and nurturing the local ecology and global public goods, such as the environment, for future generations.

Urban Sustainability Will Pay Compounding Dividends

Cities like Curitiba, Brazil, Stockholm, Sweden, and Yokohama, Japan, have demonstrated that they can greatly enhance their resource efficiency while decreasing harmful pollution and unnecessary waste.

“By doing so, they have improved the quality of life of their citizens, enhanced their economic competitiveness and resilience, strengthened their fiscal capacity, and created an enduring ‘culture’ of sustainability,” says Suzuki.

“What is encouraging is that most of the imaginative and practical solutions used by these cities are affordable and they generate economic returns, including direct and indirect benefits for the poor.”

Adds Dastur: “Sustainable urban planning is in fact an investment in the future of a city’s economy and welfare. An organized approach that consolidates and transfers these lessons to rapidly urbanizing countries can lock in systemic benefits for current and future generations.”

Cities Develop Their Own Eco² Pathway

The Eco² framework is designed to be adapted to local conditions. Each city taking part in the program should use it to develop its own “Eco² pathway” taking into account its own unique set of challenges and constraints, says Suzuki.

Yokohama, Japan

The World Bank plans to provide technical assistance through diagnostics studies that look at how efficiently the city is using resources and identify where improvements could be made.

The diagnostics would also look at the city’s infrastructure systems, urban form, policies and regulations for opportunities to realize greater synergies through integration and coordination of these elements, says Dastur.

The Bank’s technical assistance will also promote the use of life cycle costing—a method that looks at total costs, including resource depletion and environmental impact.

“A fundamental ingredient in the process is the political will to truly make a change – a genuine desire by city leadership and stakeholders to invest in the future of the city and the well-being of the citizens,” says Suzuki. “If we start with that, the knowledge exists, the methods exist, and growing support is now in place.”

Ideal City of the Future Offers ‘Concise Lifestyle’

The Eco² program is an integral part of the World Bank’s new urban strategy, scheduled for formal approval in September. The strategy looks at how to help cities harness their economic growth to improve the quality of life of their citizens.

Abha Joshi-Ghani, sector manager for the World Bank’s global urban unit , says that cities, “if managed and planned in a sustainable way, have the potential to offer a high quality of life with the least amount of resource consumption. They are also more enjoyable places to live.”

“It’s the consumption-oriented lifestyle of residents—not cities themselves—that leads to pollution. Compact, well-managed cities reduce the need for car ownership and long commutes, and are potentially much more efficient in delivering services such as water, sanitation and shelter to large numbers of people,” she says.

“The ideal city of the future is economically and ecologically sustainable,” she adds. “It’s a city which is optimizing its growth potential, creating jobs and attracting people, but at the same time offering a good quality of life, good living standards, services such as water, sanitation, sewerage. It’s also a city which is less consumption-oriented, well managed, financially sound, and which is green and ecologically friendly.”

“Really, it’s a city which offers a very compact, concise lifestyle.”

With 90 percent of urban growth in the next three decades expected to take place in developing countries, Suzuki and Dastur argue what’s needed is a “paradigm shift.”

“We’re building, for all intents and purposes, a whole new world at 10 times the speed, in countries with serious capacity constraints. At the same time, we now know what it takes for cities to be more ecologically sustainable, economically dynamic and socially viable. It would be a tremendous loss if we do not act on this opportunity. The stakes are very high.”

Eco² Builds on Real Cases

Curitiba, Brazil, sustainably absorbed a population increase from 361,000 (in 1960) to 1,797,000 (in 2007), through innovative urban planning, city management and transport planning. The city has the highest rate of public transport ridership in Brazil (45%), the lowest congestion-related economic losses, and also enjoys the lowest rates of urban air pollution. While preserving urban density and vibrancy, Curitiba invested in large parks as ecological assets for flood prevention and recreation. Its waste collection and recycling program allows the poor to exchange collected waste for transport coupons and food.
Stockholm, Sweden, has demonstrated how integrated and collaborative planning and management can transform an old inner city industrial area into an attractive and ecologically sustainable district. Core environmental and infrastructure plans were jointly developed by three city agencies overseeing water, energy and waste. The goal was to create a cyclical system that optimizes use of resources and minimizes waste. For instance, biogas is produced in the wastewater plant from digestion of organic waste and sludge and used as fuel in eco-friendly cars and buses. Some of the initial results have been a 30% reduction in non-renewable energy use, a 41% reduction in water use, and a 29% reduction in global warming potential.
Yokohama, Japan’s second largest city, has demonstrated how an integrated approach to waste management, combined with cooperation from stakeholders, particularly citizens, could reduce solid waste by 38.7% during a period when the population actually grew by 170,000. The city conducted environmental education and promotional activities to enhance public awareness and call for collaborative action. The resulting waste reduction allowed Yokohama to shut down two incinerators, saving the city $1.1 billion, as well as $6 million in annual operation and maintenance costs.

The project Smallholder Agriculture and Social Protection Support has changed to Dropped

2009-05-27T04:00:00.000Z

The project Smallholder Agriculture and Social Protection Support has changed to Dropped. To see more information, see the project information in the World Bank project database

ASEAN-UN-World Bank Set to Collaborate to Reduce Disaster Risk

2009-05-18T20:45:00.000Z

Contacts:

Public Outreach and Civil Society Division, ASEAN Secretariat
public@asean.org, +6221 7262991

East Asia Region Disaster Management Unit, World Bank
Zeeshan Suhail – ZSuhail@worldbank.org
+62-852-3759-0464

BALI, Indonesia, May 18, 2009 – The Association of Southeast Asian Nations (ASEAN) Secretariat, the United Nations International Strategy for Disaster Reduction (UNISDR) and the World Bank announced today a cooperation program to strengthen disaster risk reduction and disaster management in Southeast Asia.

This program aims to help ASEAN reduce its vulnerability to natural hazards, thus protecting its citizens from the impact of extreme weather events in the future. The program is the focus of the Memorandum of Cooperation (MoC) on Disaster Risk Reduction, a tripartite agreement between the ASEAN Secretariat, the UNISDR and the World Bank.

The program lays a framework for technical support from the UN and the World Bank to help ASEAN formulate and implement strategies and action plans for disaster risk reduction and management. The objectives of this program include (i) building ASEAN’s capacity in the areas of disaster risk reduction and climate change adaptation; (ii) mobilizing resources for the implementation of disaster risk reduction initiatives in ASEAN; and (iii) helping ASEAN policy-makers gain knowledge of effective and practical ways to reduce disaster risks.

“ASEAN has been addressing disasters, natural or otherwise, as and when it happens. The region where ASEAN is located geographically is one that is prone to disasters. It sits between several tectonic plates causing earthquakes, volcanic eruptions and tsunamis. The region is also located in between huge oceans namely the Pacific and the Indian oceans causing seasonal typhoons and in some areas, tsunamis”, said Dr. Surin Pitsuwan, the Secretary-General of ASEAN. “With 570 million people in the region, it is time for us to be better prepared for future disasters by empowering ourselves with better techniques and coordinating mechanisms involving the governments and civil societies of ASEAN. Our tripartite program with the UN and the World Bank is innovative as we would capitalize the expertise and strengths of the three organisations to help achieve our common vision of a disaster-resilient and safer community”.

Recent natural disasters in Asia – including the Indian Ocean tsunami in 2004, the Yogyakarta earthquake in 2006 and the cyclone Nargis in Myanmar in 2008 – highlight the region’s vulnerability. As more and more ASEAN citizens move into cities in search of better opportunities, they also face greater risks from natural hazards. Most major ASEAN cities are located near rivers or the ocean, which heightens their vulnerability to unusual weather events induced by climate change. In addition, many ASEAN countries have a long history of annual floods, droughts, and cyclones – each of which could cause catastrophic loss of life and property.

Following the 2004 Indian Ocean tsunami, ASEAN countries signed the ASEAN Agreement on Disaster Management and Emergency Response, reaffirming the countries’ commitment to reducing disaster losses and improving response to disaster emergencies. It is expected that the agreement will enter into force soon following ratifications by two remaining countries. “When entered into force, the agreement will put in place the coordinating measures and mechanisms required to help ASEAN achieve a disaster-resilient and safer community. Therefore, our tripartite programme with the UN and the World Bank is timely as ASEAN is gearing up to better prepare for future disasters”, said Dr. Surin.

“Natural disasters tend to have more profound effects on the lives and livelihoods of the poorest and most vulnerable people,” said the World Bank Vice President for the East Asia and Pacific Region, James Adams. “As we’re focusing on surviving the global economic downturn, we must not lose sight of that. ASEAN’s experience shows how vulnerable its members are to natural hazards. The impacts of climate change and the effects of rapid urbanization only increase that vulnerability.”

The ASEAN Secretariat-UNISDR-World Bank cooperation program builds on the experience of multi-donor partnership support following the Indian Ocean tsunami of 2004, the Yogyakarta earthquake of 2006 and Cyclone Nargis in Myanmar of 2008.

Concerted efforts in the aftermath of these events helped the affected countries assess the extent of loss and damage and brought much-needed relief and recovery assistance to the victims. The three partners have now agreed to set up a joint consultative mechanism at the working level to strengthen coordination in disaster relief, culminating in the Memorandum of Cooperation.

“Disaster reduction is a critical challenge for Asia. I have followed closely how several Asian countries have made good progress in building their resilience to natural hazards. Much more needs to be done, and I am confident that Asia has the experience, resources and technical knowledge to achieve fast results”, says Margareta Wahlström, the UN’s Assistant Secretary-General for Disaster Risk Reduction. “We need a radical shift in development practices and planning and, as a priority, merging disaster risk reduction, poverty reduction and climate change adaptation into a single, coherent and innovative approach.”

The DRM Knowledge Notes Series was also launched by the Governor of Bali. The Director of the East Asia Region's Sustainable Development Department, John Roome, presented the Governor with a set of the first notes published in the series. The East Asia Region's Disaster Management Team will publish these knowledge notes on a regular basis.

The joint cooperation program was launched today at the Bali Disaster Risk Reduction Forum, the first tripartite forum and training workshop. The Forum featured sessions on climate change adaptation and strengthening early warning systems as well as risk assessments. With over 100 participants from all ten Member States of ASEAN, UN and other partner agencies, International Financial Institutions and the civil society, the Forum provided a platform for ASEAN policy makers to interact with global and regional experts as well as each other on disaster risk reduction and management.

For more information about ASEAN, visit: www.asean.org

For more information about the United Nations ISDR, visit: www.unisdr.org

For more information about the World Bank, visit: www.worldbank.org

The project Smallholder Agriculture and Social Protection Support Operation is now in the pipeline.

2009-04-23T04:00:00.000Z

The project Smallholder Agriculture and Social Protection Support Operation is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank & ASEAN Announce Partnership for Regional Infrastructure Finance Network

2009-04-09T13:39:48.000Z

Contact:

In Bangkok : Pichaya Fitts, mobile 084-752-1783
(from abroad 66-84-752-1783)

pfitts@worldbank.org

In Washington: Lester Dally

(202) 352-0363

ldally@worldbank.org

Pattaya, Thailand– April 9, 2009: The World Bank and the Association of South East Asian Nations (ASEAN) announced a new strategic partnership today to facilitate innovative financing of much needed infrastructure.

World Bank Vice President for the East Asia & Pacific region, James Adams welcomed the announcement of the partnership by the ASEAN Finance Ministers which was included in their meeting’s Joint Ministerial Statement.

“This is a partnership with the potential for major development impact in south-east Asia,” Mr Adams said. “The goal is to bring together ASEAN’s regional cooperation platform with the World Bank’s operational experience so that policymakers can access innovative approaches to financing their infrastructure needs.”

The World Bank – ASEAN Infrastructure Finance Network (IFN) is a platform for knowledge exchange between the public and private sectors which will support the flow of private capital for infrastructure development in the region.

IFN aims to provide global knowledge and training to national and sub-national governments. The focus will be on new approaches to financing infrastructure projects and on establishing credit culture in public sector infrastructure operations. It also aims to share models of excellence in infrastructure finance from around the globe with practitioners and policy makers.

Mr. Adams said the World Bank’s partnership with ASEAN is aligned with the Bank Group’s broader emphasis on collaborating with key regional and global development institutions.

####

Chance of a Bottoming Out in China Provides Ray of Hope on an Otherwise Gloomy Horizon, Says World Bank’s Review Of East Asian And Pacific Economies

2009-04-08T02:40:26.000Z

MEDIA CONTACTS:
In Cambodia:
Bou Saroeun
sbou@worldbank.org

In Washington, DC:
Lester Dally (202) 458-4475
Ldally@worldbank.org

In Tokyo:
Tomoko Hirai (81-3) 3597-6650
Thirai@worldbank.org
Mohamad Al-Arief (202) 352-4745
Malarief@worldbank.org

Cambodia, April 7, 2009 – As countries in the East Asia and Pacific region prepare themselves for an expected surge in joblessness resulting from the global slowdown, a ray of hope may be emerging with signs of China’s economy bottoming out by mid-2009, says the World Bank's latest half-yearly assessment of the region's economic health.

The latest East Asia and Pacific Update, titled Battling the Forces of Global Recession, says a recovery in China – fueled largely by the country’s huge economic stimulus package – is likely to begin this year and take full hold in 2010, potentially contributing to the region’s stabilization, and perhaps recovery. But with China still heavily reliant on exports to world markets that continue to contract, the Update warns that a truly sustainable recovery in the East Asia and Pacific region ultimately depends on developments in the advanced economies.

In the face of much weaker exports and a slowing down in domestic demand, the World Bank is forecasting that real GDP growth in developing East Asia will reach only 5.3 percent in 2009, down from 8 percent in 2008 and 11.4 percent in 2007. (Last month, in its China Quarterly Update, the Bank downgraded its forecast for China’s growth to 6.5 percent this year from 13 percent in 2007.)

The region’s low income countries are expected to be among the worst affected by the slowdown and the limited room for government intervention to help those in need. Cambodia is likely to experience the strongest decline in growth because of declines in the garment and tourism sectors, while Lao, Mongolia, Papua New Guinea and Timor-Leste will be especially hard hit due to lower commodity prices.

On departing for the 13th ASEAN Finance Ministers’ Meeting in, Pattaya, Thailand later this week, the World Bank’s Vice President for the East Asia and Pacific region, Jim Adams, applauded the region’s governments for responding quickly to the financial crisis with multi-pronged policy efforts – from fiscal stimulus packages to monetary policy interventions to social safety net programs.

“The measures the authorities have taken to counteract the crisis across the region are helping to cushion the impacts on the most vulnerable people,” Adams said. “With unemployment likely to increase – especially as jobs in manufacturing and construction disappear - social protection efforts will have to expand to meet very real human needs.”

Weaker growth is expected to slow the pace of poverty reduction in the region, with over 10 million more people likely to stay below the poverty line this year compared to estimates of a year ago, the Update says. Cambodia, Malaysia, Thailand are projected to see absolute increases in poverty this year.

The report says the region is stepping-up efforts to support the region’s poor and vulnerable people, especially in the middle-income countries. In late 2008, China provided a one-time cash transfer to 74 million people, including to millions of rural householders, and introduced tax cuts as well as a major health reform package to increase access to healthcare for the poor. Indonesia has reached out to 19 million poor households by reviving a targeted cash assistance program and the Philippines is boosting the number of poor people covered by its recently introduced conditional cash transfer program.

“There is no doubt that the East Asia and Pacific region is confronting very difficult times,” said Vikram Nehru, the World Bank's Chief Economist for the region. “The countries that are able to tackle short-term challenges while staying focused on longer-term priorities will likely emerge better placed after the crisis to resume growth.”

As the world economy slowly recovers, East Asian and Pacific countries can achieve high rates of growth if they boost their competitiveness, penetrate new markets and support their companies to innovate rather than imitate, Nehru said.

CAMBODIA

Reflecting its exposure to the global financial turmoil, Cambodia’s economy is expected to contract by 1 percent in 2009 after slowing to 5.5 percent in 2008 following a period of sustained high growth. The forecasts for 2010 are highly uncertain, but growth could be in the 0-4 percent range if external demand is supportive.

“The remarkable achievements of the past decade and the economy’s resilience are being tested by the global recession,” said World Bank Senior Country Economist Stephané Guimbert. “The ray of hope for Cambodia lies in its strong growth potential in the medium term.”

Growth could resume in 2010, although uncertainties remain quite high, Mr. Guimbert added.

The World Bank is supporting East Asia and Pacific countries as they face the impacts of the financial crisis through increased financing and stepped-up policy advice on ways to protect the poor and vulnerable.

For the full report, please visit www.worldbank.org/eapupdate

For more information about the World Bank’s work in Cambodia, please visit www.worldbank.org/kh

Chance Of A Bottoming Out In China Provides Ray Of Hope On An Otherwise Gloomy Horizon, Says World Bank’s Review Of East Asian And Pacific Economies

2009-04-07T03:30:00.000Z

Contacts:

In Washington, DC:

Lester Dally (202) 458-4475

Ldally@worldbank.org

In Tokyo:

Tomoko Hirai (81-3) 3597-6650

Thirai@worldbank.org

Mohamad Al-Arief (202) 352-4745

Malarief@worldbank.org

Tokyo, April 7, 2009 – As countries in the East Asia and Pacific region prepare themselves for an expected surge in joblessness resulting from the global slowdown, a ray of hope may be emerging with signs of China’s economy bottoming out by mid-2009, says the World Bank's latest half-yearly assessment of the region's economic health.

The latest East Asia and Pacific Update, titled Battling the Forces of Global Recession, says a recovery in China – fueled largely by the country’s huge economic stimulus package – is likely to begin this year and take full hold in 2010, potentially contributing to the region’s stabilization, and perhaps recovery. But with China still heavily reliant on exports to world markets that continue to contract, the Update warns that a truly sustainable recovery in the East Asia and Pacific region ultimately depends on developments in the advanced economies.

In the face of much weaker exports and a slowing down in domestic demand, the World Bank is forecasting that real GDP growth in developing East Asia[1] will reach only 5.3 percent in 2009, down from 8 percent in 2008 and 11.4 percent in 2007. (Last month, in its China Quarterly Update, the Bank downgraded its forecast for China’s growth to 6.5 percent this year from 13 percent in 2007.)

Growth is projected to slow further

(Percent change y-y unless indicated otherwise)

	2007	2009f	Difference, 2009-2007


Developing East Asia	11.4	5.3	-6.1
Indonesia	6.3	3.4	-2.9
Malaysia	6.3	-1.0	-7.3
Philippines	7.2	1.9	-5.3
Thailand	4.9	-2.7	-7.6
China	13.0	6.5	-6.5
Vietnam	8.5	5.5	-3.0
Cambodia	10.2	-1.0	-11.2
Lao PDR	7.5	5.0	-2.5
Mongolia	9.9	2.7	-7.2
Papua New Guinea	6.2	4.7	-1.5

Source: The World Bank; f=forecast

“The measures the authorities have taken to counteract the crisis across the region are helping to cushion the impacts on the most vulnerable people,” Adams said. “With unemployment likely to increase – especially as jobs in manufacturing and construction disappear - social protection efforts will have to expand to meet very real human needs.”

Weaker growth is expected to slow the pace of poverty reduction in the region, with over 10 million more people likely to stay below the poverty line this year compared to estimates of a year ago, the Update says. Cambodia, Malaysia and Thailand are projected to see absolute increases in poverty this year.

“There is no doubt that the East Asia and Pacific region is confronting very difficult times,” said Vikram Nehru, the World Bank's Chief Economist for the region. “The countries that are able to tackle short-term challenges while staying focused on longer-term priorities will likely emerge better placed after the crisis to resume growth.”

For the full report, please visit www.worldbank.org/eapupdate

[1]Developing East Asia includes China, Indonesia, the Philippines, Thailand, Vietnam, Cambodia, Lao PDR, Mongolia, Papua New Guinea and the island economies of the Pacific.

The project Cambodia-Land Administration Management and Distribution is now in the pipeline.

2009-03-24T04:00:00.000Z

The project Cambodia-Land Administration Management and Distribution is now in the pipeline. To see more information, see the project information in the World Bank project database

Trade Development Support Program Launched

2009-03-23T04:48:20.000Z

Contacts:
Bou Saroeun (855) 12-217-301

sbou@worldbank.org

Stephane Guimbert

sguimbert@worldbank.org

Julian Clarke

jclarke1@worldbank.org

PHNOM PENH, March 23, 2009 – The Cambodian Ministry of Commerce, together with four of its development partners, today launched a $12.6 million Trade Development Support Program (TDSP) aimed at assisting Cambodia to expand its international trade. The program is financed by the European Commission, the Danish International Aid Agency (Danida) and the United Nations Industrial Development Organization (UNIDO), and it will be administered by the World Bank.

The program focuses on legal reforms, trade facilitation and product standards, and is designed to empower the Royal Government of Cambodia (RGC) to facilitate trade by improving regulations and internal processes. TDSP is part of the trade sector-wide approach (known as the Trade SWAp), which unites all activities funded by development partners to assist the RGC to enhance its trade potential. The Trade SWAp covers activities in different areas—from fisheries to rubber and tourism—through addressing legal reform, product and service development for exports and capacity development for trade, and takes on board many of the RGC’s ongoing reforms in such areas as decentralization and public finance management.

H.E. Dr. Cham Prasidh, Senior Minister, Minister of Commerce, said in his speech that, with support from development partners, the RGC believes the Trade SWAp will strengthen partnerships with the private sector.

“It is a strong commitment of the RGC to translate Aid for Trade into concrete actions that will contribute to a more robust private sector and overall income generation,” said H.E. Dr. Prasidh. “Since Cambodia is the first nation to apply a sector-wide approach in the trade sector, it is a proud moment for the Minister of Commerce and Development Partners to say that ‘The Trade SWAp is established officially today”. This workshop is a key initiative in providing sources of inspiration and is a stepping stone for enhancing trade development, which is an essential element in sustaining economic growth in Cambodia.”

“With global trade expected to shrink in 2009 for the first time in 27 years and Cambodia’s economy under real pressure, we need to find wider export markets and bigger investors for Cambodia,” said Qimiao Fan, World Bank Country Manager. “We aim to help Government agencies make business easy for local and foreign business people who want to contribute to Cambodia’s growth.”

“For us, it is important to help Cambodia benefit to the maximum extent from the duty-free access that it enjoys to the vast market of the European Union,” said Rafael Dochao Moreno, Chargé d'Affaires a.i. of the Delegation of the European Commission. "Our $9 million contribution will go a long way to increasing Cambodia's trade."

Tom Barthel Hansen, Head of Representation, of Danida said: "Danida is proud to be a partner in this program - which has even more relevance now as we face a major global economic crisis. We want to support the strengthening of Cambodia's economic base and ensure that investors and local businesses are able to benefit from global trade. This will be critical to sustaining growth into the future, and improving the livelihoods of many millions of Cambodians.”

Ayumi Fujino, Head of Regional UNIDO office said: “As the UN agency responsible for industrial development, UNIDO is committed to contribute to the enhancement of trade capacity in order for Cambodian business and industry sectors to fully participate in and benefit from the opportunities in the global market. It is our great pleasure, therefore, to be a part of this profound initiative made possible through a strategic alliance with the Government and development partners and to witness its commencement.”

xxx

To get more information on the World Bank’s work on trade, please visit: www.worldbank.org/trade

To know more about the World Bank's projects and programs in Cambodia,
visit www.worldbank.org/kh

Cambodia Needs to Address Constraints to Future Growth, New World Bank Report Says

2009-02-05T05:00:00.000Z

Contacts:
Stephane Guimbert
Tel. (855-23) 217-301
Email: sguimbert@worldbank.org
Saroeun Bou
Tel. (855-23) 217-304
Email: sbou@worldbank.org

PHNOM PENH, February 5, 2009 – As Cambodia copes with the immediate effects of the current global crisis, the country also needs to address domestic factors that could hold back future economic growth, said the new World Bank report on Cambodia released Thursday.

“This report is our latest contribution to the debate on growth in Cambodia,” said World Bank Cambodia Country Manager, Qimiao Fan, of the report. Titled Sustaining Rapid Growth in a Challenging Environment, the report builds on the analyses of a dozen existing studies and new background materials. It identifies the main potential sources of growth as well as important constraints, and outlines policy options to address the challenges.

Over the past decade, Cambodia has made a remarkable progress in several areas. Peace and stability have enabled ordinary Cambodian citizens to go about their normal lives, and the government to deliver basic services to the people. With better access to healthcare and clean water, the average Cambodian now enjoys a longer life than in the past. More Cambodian children are also now going to schools.

Throughout the past decade, the Cambodian economy grew rapidly. GDP growth averaged 9.8 percent annually, and was above 10 percent for four consecutive years ending 2007. Such impressive growth created plenty of employment opportunities outside the farm sector, helping to lift millions of Cambodians out of poverty. Recent data showed that the number of people living under the poverty line in Cambodia has fallen to 30 percent in 2007, compared with 45-50 percent during 1993/1994.

The new World Bank report, however, points out that growth has been driven mainly by four sectors: garments, tourism, construction, and agriculture. By its dependence on these few sectors, and on the influx of foreign direct investment, Cambodia is just as vulnerable to the global recession as any of its Southeast Asian neighbors. This despite the fact that its commercial banks have not been directly impacted by the financial crisis.

In addition, some of the factors that have contributed to growth in the past are one-off opportunities or are not expected to continue improvement in the near future, said Stephane Guimbert, the Bank’s Senior Economist in Phnom Penh, who led the team that prepared the report. Unsustainable use of natural resources also threatens to deplete the national assets upon which a good portion of growth is based. Furthermore, complex and poorly implemented regulations, combined with a lack of reliable public services such as commercial courts, will continue to constrain businesses - which bodes poorly for future growth.

“The next episode in Cambodia’s story remains highly uncertain,” Mr. Guimbert said.
“The achievements of the past decade are very fragile; the base of Cambodia’s economic growth appears narrow; and development has left some of the poor Cambodians with few assets. And the winds that once served Cambodia well – global trade and investment flows – seem to have lost its strengths, at least temporarily.”

Despite the challenges, Cambodia has a strong potential to continue high growth in the future, the report suggested. The country is endowed with relatively abundant land and other natural resources. Sustainable use and fair allocation of these resources could provide more growth opportunities going forward. Cambodia’s labor costs, meanwhile, remain low compared with other countries in the region.

Though exports are relatively concentrated into a few products to a few destinations, this leaves ample room for diversification and growth. Improving governance would also be conducive to long-term growth; as an improved business environment tends to encourage more business enterprises, creating more jobs for the people.

To achieve all of the above potential, resolute action will be required, the report suggests.

A more focused growth strategy and better coordination among the various players and stakeholders in Cambodia’s development.
Accelerating Cambodia’s integration into the regional economy.
More sustainable and transparent management of natural resources.
Improving the business environment and modernizing industrial policy.
Larger public investments in agriculture, infrastructure, and education.

Successful government interventions could keep Cambodia’s GDP growth at 6 or 7 percent annually, once the external environment becomes more favorable, the report concludes.

Sustaining Rapid Growth was initiated at the request of, and guided by, the Supreme National Economic Council (SNEC), the policy research and planning body of the Royal Government of Cambodia. It was distributed during the Third Cambodia Economic Forum, a conference hosted by the SNEC and supported by the Asian Development Bank, the United Nations Development Programmed, and the World Bank.

The report is available for download at www.worldbank.org/kh/growth.

The project PECSA - The Asia Foundation is now in the pipeline.

2009-01-30T05:00:00.000Z

The project PECSA - The Asia Foundation is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank and Other Development Partners Help Cambodia to Improve Trade Facilitation

2009-01-14T15:00:00.000Z

Contacts:
In Phnom Penh: Bou Saroeun (855) 12-217-301
sbou@worldbank.org

PHNOM PENH, 14, 2009 – The Royal Government of Cambodia will receive a $12.6 million grant from three donors to support a new development program, aimed at reducing poverty by removing trade barriers and improving the standard of Cambodian exports.

The Cambodia Trade Development Support Program, or TDSP, is designed to strengthen the Government’s efficiency in formulating and implementing effective trade policies; in meeting its obligations to the World Trade Organization, including food safety standard; and in improving access by Cambodian firms to European markets, among other objectives.

“In the context of the global financial turmoil and weakening trade flows, these efforts are all the more critical,” said Annette Dixon, the new Cambodia Country Director of the World Bank, which will administer the grant.

“At the World Bank, we believe that trade plays an important role in the fight against poverty. It creates the potential for higher economic growth and employment. By helping the Government to increase trade and employment in trading sectors, all development partners contributing to this program will help Cambodians enjoy better lives.”

Funding for this program comes from the Cambodia Trade Development Trust Fund and is supported by the European Commission, the Danish International Aid Agency (Danida) and the United Nations Industrial Development Organization (UNIDO) with amount of €7.1 million, DKK33 million and €0.2 million, respectively. The World Bank will help provide technical advice, and monitor as well as evaluate the impacts of this program on behalf of all donors.

International trade, open trade policies, and being located in the very dynamic sub-region of Southeast Asia have all contributed significantly to Cambodia’s rapid growth of the last decade. Exports of garments and tourism have been key drivers of economic growth in this country.
Cambodia, admitted to the WTO in 2004, has been facing strong competition in the garment sector from a number of other countries. In addition, the lack of diversification in both exports and export markets makes the Cambodian economy vulnerable to the current global economic slowdown.
As part of its ongoing efforts to address challenges in the export sector, the Cambodian Government completed in 2007 the Diagnostic Trade Integration Strategy. The DTIS examined trade-related policies and identified measures to help Cambodia meet the WTO obligations, including legal reforms and improvement of the standard of Cambodian food exports.

At the moment, the Government is also working with development partners to develop the Trade sector-wide approach to support the implementation of policy recommendations under the DTIS. Called Trade SWAp in short, this approach will enable all development partners in Cambodia to direct funding to a variety of different activities – all working toward the goals outlined by the DTIS.
This, combined with the global economic slowdown, makes the TDSP a very timely program that fully supports Cambodia’s economic growth strategy, said H.E. Keat Chhon, the Cambodian Deputy Prime Minister and Minister of Economy and Finance.

“The objectives of the Project are to improve the developmental impact of donor advice and, significantly, to increase Government’s own ownership of the formulation and implementation of trade policy,” he said during the grant-signing ceremony in Phnom Penh.

Rafael Dochao Moreno, Chargé d'Affaires a.i. of the European Commission Delegation in Cambodia said: “More than any other region in the world, the European Union is aware of the benefits of trade for economic development.” He added: “The European Union is the largest provider of trade-related development assistance around the world. And as the biggest market for exports from developing countries, we provide duty-free access to exports from LDCs (less Development Countries) like Cambodia under the preferential trading system 'Everything But Arms' (EBA). Financing this work in Cambodia therefore falls squarely within the European Commission's support strategy for Cambodia.”

The project Cambodia Trade Development Support Program has changed to Active

2009-01-09T05:00:00.000Z

The project Cambodia Trade Development Support Program has changed to Active. To see more information, see the project information in the World Bank project database

The development objective of the Trade Development Support Program (TDSP) will contribute to increase the Royal Government of Cambodia's efficiency in formulating and implementing effective trade policies. There are four components to the project. The first component of the project is trade policy formulation and implementation. This component will support the Government's trade strategy, in particular: (i) technical barriers to trade and sanitary and photo-sanitary measures; (ii) trade facilitation; and (iii) other legal reforms and World Trade Organization obligations. The second component of the project is performance monitoring. This component will support to surveys and monitoring tools to assess progress in implementing the Government's trade strategy and provide evidenced-based feedback. The third component of the project is institutional and human capacity. This component will support to the development of strengthened institutions, stronger incentives, and improved technical ability to formulate and implement the Government's trade policy. The fourth component of the project is implementation support to TDSP. This component will support the development of the Ministry of Commerce's implementation capacity to act as a Secretariat for the trade sector wide approach (SWAp) and program manager for the TDSP. This will include support to assist it in meeting its fiduciary responsibilities. This will also support other departments' and agencies' capacity in implementing the TDSP.

The project Cambodia Telecoms is now in the pipeline.

2009-01-07T05:00:00.000Z

The project Cambodia Telecoms is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Improved Access to Communications in Rural Cambodia Project is to bring basic voice telephony services to low income families in rural areas of northern and northwestern Cambodia. A secondary objective is to demonstrate a private-public partnership through the output-based aid (OBA) subsidy approach. There are four components to the project, the first being basic voice telephony service. While the project is technology neutral, for the purposes of project costing and subsidy calculations, it will be assumed that the service provider will choose to provide a basic voice telephony service using mobile technology. This is the predominant telecommunications infrastructure available in Cambodia and the mobile segment has significantly higher penetration rates than fixed lines and internet. The use of mobile technology will maximize the benefits obtained through the subsidy due to existing economies of scale. The second component is the basic access to services. The service provider must ensure that there are public access points which are accessible to residents in the target locations. Access points should be provided to 80 percent of the villages in the target locations. The third component is the additional services to be offered by service provider. The service provider must also offer additional services such as basic data and Internet access in their bid proposals. The additional services that a service provider offers may depend on the technology chosen for the provision of basic telephony services. Finally, the fourth component is the project management and supervision support.

The project Demand for Good Governance Project has changed to Active

2008-12-07T05:00:00.000Z

The project Demand for Good Governance Project has changed to Active. To see more information, see the project information in the World Bank project database

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. The state and non-state institutions and partnerships supported will be those that promote, mediate, respond to, or monitor to inform DFGG. The four priority reform areas, where DFGG approaches will be supported are those identified in the Governance Pillar of the Country Assistance Strategy (CAS), i.e., private sector development, management of natural resources, public financial management, and decentralization and citizens partnerships for better governance. The project has three components: (i) support to state institutions; (ii) support to non-state institutions; and (iii) coordination and learning. In component one, four state institutions will improve and scale up programs that promote, mediate, respond to, or monitor for DFGG in the priority reform areas of the CAS. In component two, non-state actors will develop their own programs in the priority reform areas. Some of these programs will be in partnership with the four state institutions supported in component one (funded through partnership grants); others will be independent of them (funded through thematic grants). The third component supports overall coordination of the project and promotes learning, awareness raising and capacity building on demand-side approaches.

The project KH-Rural Investment & Local Gov. - II is now in the pipeline.

2008-11-26T05:00:00.000Z

The project KH-Rural Investment & Local Gov. - II is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Rural Electrification and Transmission Project is now in the pipeline.

2008-10-11T04:00:00.000Z

The project Rural Electrification and Transmission Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Cambodia - Higher Education Quality and Capacity Improvement Project is now in the pipeline.

2008-09-17T04:00:00.000Z

The project Cambodia - Higher Education Quality and Capacity Improvement Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Cambodia Trade Development Support Program is now in the pipeline.

2008-07-06T04:00:00.000Z

The project Cambodia Trade Development Support Program is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Cambodia Land Administration Management Distribution Program has changed to Closed

2008-07-06T04:00:00.000Z

The project Cambodia Land Administration Management Distribution Program has changed to Closed. To see more information, see the project information in the World Bank project database

The project Provincial and Peri-Urban Water and Sanitation Project has changed to Closed

2008-07-06T04:00:00.000Z

The project Provincial and Peri-Urban Water and Sanitation Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Cambodia Provincial and Peri-Urban Water and Sanitation Project aims to assist the country in moving forward to fulfill the Millennium Development Goals (MDGs) in water supply and sanitation by 2015. The project design aims at building partnerships witht the private sector anduser groups in financing, operating, and maintaining constructed facilities, after designing specific instruments that ensure inclusion of low income communities residing in the service areas. In this context, IDA grants are proposed to be blended with the Credit. There are 8 project components. Component 1 finances the costs of civil works for improving the water supply systems in provincial towns and districts. Component 2 finances physical improvements in public toilets (in schools, markets, and hospitals), household toilets, on-site sanitation facilities, including soakaway pits for septic tank effluents and disposal of wastewater flows arising from water supplies, and hygiene education in pre-identified low income households. Component 3 finances project accountants, financial audits, and institutional capacity building. Component 4 supports the Ministry of Industry, Mines and Energy (MIME) in project management and supervision. Component 5 finances MIME's incremental costs in supervising and monitoring, such as expenditures for field visits. Component 6 finances civil works and the supply of goods for water supply expansion. Component 7 continues the pilot program of connecting low income communities with house connections. Component 8 finances a Civil Works Advisor to assist during constructions of the elevated tanks.

The project Cambodia Second Health Sector Support Program has changed to Active

2008-06-24T04:00:00.000Z

The project Cambodia Second Health Sector Support Program has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Second Health Sector Support Program (HSP2) for Cambodia is to support the implementation of the government's health strategic plan 2008-2015 to improve health outcomes through strengthening institutional capacity and mechanisms by which the government and development partners can achieve more effective and efficient sector performance. The project has a health system strengthening focus, with components that are aligned to the government's HSP2. It includes: (a) Strengthening health service delivery through (i) the provision of service delivery grants and contracting for health services at provincial level and below; and (ii) strengthening health services management supervision and public health functions at provincial and district level; and (iii) investments for the improvement, replacement, and extension of the health service delivery network. (b) Improving health financing which will support (a) health protection for the poor through the consolidation of health equity funds under common management and oversight arrangements and expansion of health equity fund coverage; and (ii) supporting the development of health financing policies and institutional reforms. (c) Strengthening human resources will focus on (i) strengthening pre and in service training and supporting enrollment where shortfalls exist; (ii) strengthening human resource management in the ministry of health; and (iii) support the merit based performance incentive scheme for health managers and key technical staff participating in the implementation of the HSP2 at central and provincial level. (d) Strengthening health system stewardship functions by supporting (i) development of policy packages identified, strengthening the institutional capacity (in particular meeting the demands from decentralization and deconcentration); (ii) private sector regulation and partnerships; (iii) supporting governance and stewardship functions of the national programs and centers overseeing the three HSP2 strategic programs; and (iv) strengthening community participation.

The project KH-Civil Society Engagement & Small Gran is now in the pipeline.

2008-06-08T04:00:00.000Z

The project KH-Civil Society Engagement & Small Gran is now in the pipeline. To see more information, see the project information in the World Bank project database