Today, it is my great honor and pleasure to participate in this “20th Anniversary Celebration of the Cambodia-Asian Development Bank Partnership’’ with all Excellencies, ladies and gentlemen as well as national and international guests.
Today’s event is another new historic moment to be held in Peace
Building, which is the pride of our nation. On this auspicious occasion,
on behalf of the Royal Government and People of Cambodia, I would like
to join Deputy Prime Minister Keat Chhon in extending our warm welcome
to H.E. Haruhiko Kuroda, President of the Asian Development Bank. His
presence today clearly reflects the ADB’s high attention to firm
friendship and close cooperation between the ADB and the Royal
Government of Cambodia.
Taking this opportunity, I also would like to express our deep
gratitude to the Management, Board of Directors, and staff of the ADB
for providing twenty years of unwavering support to Cambodia in many
sectors and all aspects. Allow me to recall some of the ADB’s colleagues
with whom we have had excellent working relationships such as H.E.
Mitsuo Sato, H.E. Tadao Chino, H.E. Haruhiko Kuroda, H.E. Stephen Groff,
H.E. Lawrence Greenwood, H.E. Jin Liqun, H.E. Rajat M. Nag, H.E.
Noritada Morita, H.E. Arjun Tappan, H.E. Kunio Senga, H.E. Suos Someth,
H.E. Urooj Malik, H.E. Shyam Bajpai, H.E. Arjun Goswami, H.E. Putu M.
Kamayana, and H.E. Eric Sidgwick.
Today’s event is being held at a time when Cambodia prepares for the
successful completion of its responsibilities as the Chair of ASEAN.
Such important gathering comes at an opportune time when Cambodia
continues to enjoy the full peace, stability, security and cooperation.
On the other hand, this event is convened in the aftermath of the global
economic and financial crisis; the difficult situation that required
the protection of its sovereignty and territory; the worst flood
disaster in the recent past, and it is also taking place while Cambodia
steps into the track of inclusive and robust economic growth with
equitable development.
Indeed, Cambodia has become an equal member in other organizations in
the sub-region, region, intra-region and globe over the past twenty
years. Currently, Cambodia is moving on its right track towards
inclusive and sustained economic growth which is for the maximum benefit
of all Cambodians. In addition, with unflinching commitment and great
efforts of the Royal Government and people of Cambodia as well as
valuable contributions of development partners, Cambodia has experienced
significant developments in all political, economic, social and
cultural spheres.
Taking this opportunity, allow me to highlight a number of momentous
achievements made by the Royal Government so far during the last two
decades:
i) Peace, political stability, security and social order which
lay the foundation for the pluralist democracy have been built. The free
and fair commune elections were held 3 times in 2002, 2007 and 2012.
The General Elections were held 4 times in 1993, 1998, 2003 and 2008.
ii) Respect for human rights and dignity, including political,
economic and social rights, has been enhanced. Decentralization and
de-concentration reform, aimed at strengthening democracy and efficiency
of local public services, have been initiated and implemented.
iii) Good governance through state reforms, especially civil
service reform, public financial management reform, decentralization and
de-concentration reform, legal and judicial reform and other relevant
reforms, have been strengthened to ensure that all government activities
are increasingly more transparent, accountable, predictable, effective
and efficient.
iv) Steady macroeconomic stability and considerable economic growth
of 9% per year have been achieved for nearly a decade before the very
difficult global financial crisis. In some years, Cambodia was
experiencing double digit economic growth while keeping in check low
inflation and a stable exchange rate. The Royal Government also achieved
the poverty reduction rate of over 1% per year. Competitiveness of the
national economy has been strengthened by improving agricultural
productivity, building a rural economic base, and expanding the
industrial sector, especially furthering the garment sector’s dynamics,
and diversifying the industrial sector. At the same time, the service
sector has also been expanded rapidly. Consequently, these have created
jobs and skills training for hundreds of thousands of youth.
v) Through the “Public Financial Management Reform Program”,
budget credibility has been enhanced as reflected on substantial growth
in government revenues and the rationalization of expenditures,
especially the increases in the current budget surplus. This contributes
to expanding investment in the economic and social infrastructures
aimed at enhancing public service and poverty reduction.
vi) The rehabilitation and construction of the major national road
networks have almost been completed and the attention is now being paid
to accelerate improvement of provincial and rural roads. The transport
services including shipping services, commodity deliveries, multi-modal
transport services, and good supplies and logistics have played an
active and effective role in sustainable economic growth. The
infrastructure, namely road, irrigation, energy and telecommunication
has been significantly improved.
vii) The institutional and human resource capacity has been
strengthened by focusing on the development of the education and health
sector. The considerable progress has also been made in social sector.
In the education sector, school enrolment rates have increased, and
drop-out and repetition rates have declined. In the health sector,
infant and child mortality rates, and HIV/AIDS infection rates have also
fallen.
viii) The Private sector, as the “true engine of economic growth”,
has made a very impressive contribution to socio-economic development
in both the economic and financial sector. To enhance the involvement of
private sector, Financial Sector Development Strategy (FSDS 2006-2015) and FSDS 2011-2020
have been formulated and implemented. Meanwhile, the progress of
preparation and implementation of other principles and legal frameworks,
which are required from WTO, is at a remarkable level.
ix) Partnership with all relevant stakeholders, particularly
official development partners including ADB, private sector and civil
society has been strengthened by putting in place a range of effective
mechanisms, allowing for gathering of both financial resources and
knowledge and for coordination of financial assistance and investment.
Based on the steady macro-economic stability and high average
economic growth, the Gross Domestic Product (GDP) per capita has
increased to over 4 times from approximately 200 USD in 1992 to nearly
1,000 USD in 2012. With this current growth trend, Cambodia expects that
the GDP per capita will increase to over 1,000 in 2013. The poverty
rate has declined from 50% in 1992 to be at around 20% in 2012, and this
rate is approximately expected to be at 19% in 2013. Consequently,
Cambodia is assessed as the 15th country that achieves high economic growth in the world in the last 10 years; the 5th
country among the world’s developing countries that has significant
achievements towards meeting its Millennium Development Goals (MDG); and
the 1st country in Asia-Pacific that makes substantial progress in improving social indicators.
Above major achievements are resulted from:
i) The successful implementation of “Win-Win Policy”,
that dismantled the political and military organizations of the Khmer
Rouge, has begot the integration of former Khmer Rouge soldiers into the
mainstream of the Cambodian society in 1999. Since then, the peace,
political stability, security and social order have been strengthened
and this establishes the prerequisites for any socio-economic
development.
ii) “Triangle Strategy” was formulated and
implemented by focusing on (1) building peace, restoring stability and
maintaining security for the nation and the people; (2) integration of
Cambodia into the region and normalization of relationships with the
international community; and (3) promoting economic and social
development. Through the success in implementing “Triangle Strategy”,
ever since 1999, Cambodian people have experienced full peace,
political stability, legal and social order, democracy, respect for
human rights, and economic stability.
iii) Socio-Economic Development Plan (SEDP-I, 1996-2000) and (SEDP-II, 2001-2005) was
formulated and implemented by aiming at sustained economic growth and
poverty reduction. Under this development plan framework, two
significant policy development initiatives have been formulated and put
into practice by the Royal Government namely: (1) the “Cambodian Millennium Development Goals” with the aim of poverty reduction and human development, (2) “National Poverty Reduction Strategy”.
iv) “Rectangular Strategy, Phase I” for Growth, Employment, Equity and Efficiency following the “Triangle Strategy” is
a strategy of the Royal Government in the Second Legislature of the
National Assembly. Following the directions in the conceptual framework
of “Rectangular Strategy, Phase I”, the third five-year national development plan, “National Strategic Development Plan 2006-2010” has been formulated and implemented.
v) “Rectangular Strategy, Phase II”, as the fundamentals of the socio-economic policy agenda of the Royal Government’s policy in the fourth Legislature of the National Assembly (2008-2013), was formulated and implemented. The “Rectangular Strategy, Phase II” was formulated and adopted based on practical experiences in the implementation in the Third Legislature of the Royal Government; people’s aspirations and willingness; national and international context; and prioritization of the Royal Government’s key sectors. Under this strategic framework, the “National Strategic Development Plan Update 2009-2013” has been prepared and implemented.
v) “Rectangular Strategy, Phase II”, as the fundamentals of the socio-economic policy agenda of the Royal Government’s policy in the fourth Legislature of the National Assembly (2008-2013), was formulated and implemented. The “Rectangular Strategy, Phase II” was formulated and adopted based on practical experiences in the implementation in the Third Legislature of the Royal Government; people’s aspirations and willingness; national and international context; and prioritization of the Royal Government’s key sectors. Under this strategic framework, the “National Strategic Development Plan Update 2009-2013” has been prepared and implemented.
As Deputy Prime Minister Keat Chhon, Minister of
Economy and Finance mentioned earlier on the notable achievements of the
20-year cooperation between the Royal Government of Cambodia and ADB,
Cambodia has received a huge amount of ADB’s financial assistance with a
total of nearly USD 2 billion for the development of the Government’s
priority sectors. On behalf of the Royal Government of Cambodia, I
gratefully acknowledge that our progress since 1992 has been made
possible largely by active support from ADB and our other development
partners. Through our past cooperation experience, we value ADB as a
competent, experienced and successful development partner at the stage
of Cambodia’s peace-building, restoration, and reconstruction. I have
noticed that there are a few key factors that characterize the
successful and well-grounded Cambodia-ADB partnership:
1) ADB respects Cambodia’s full ownership and responsibility to
develop and implement its own priorities and reform programs responsive
to long-term interests of Cambodian people. ADB successfully aligned its
own strategies and financial assistance programs to be consistent with
the priorities and country development strategy of the Royal Government.
Indeed, sustainable economic development requires joint efforts between
the Government and the development partners, but the Government must be
the owner of all reform sites. I wish to confirm that ADB financial
assistance provided to date has been in line with the priorities set out
in the Royal Government’s Triangle Strategy, Rectangular Strategy and
National Strategic Development Plan. In this spirit, I am optimistic
that ADB will further strengthen the spirit of ownership and
responsibility of the Royal Government in preparing and implementing
Cambodia’s strategic development in the next 20 years.
2) ADB is always able to timely and effectively respond to
Cambodia’s recent challenges with quality outcome by providing enormous
concessional loans, grants and technical assistances timely with no
intricate. Obviously, the success of urgently addressing the severe
flood disaster in 2000 and 2011 was stemmed from the firm support of the
ADB through providing highly concessional loans timely for the
rehabilitation of the flood-damaged infrastructure. ADB provided loan
funds of nearly USD 56 million for the “Flood Emergency Rehabilitation
Project in 2000” and about USD 55 million for the “Flood Damage
Emergency Reconstruction Project in 2011”. Meanwhile, ADB’s timely
response during the severe stage maintained Cambodia’s economic
stability, and especially the normalcy of livelihoods of the people.
Therefore, this indicates the ADB’s strong cooperation in maintaining
Cambodia’s economic situation and charitable affairs, and it also
demonstrates that ADB is one of our good partners during challenging
periods. On behalf of the Royal Government, People of Cambodia, and
myself, I would like to convey my deep gratitude to ADB for providing
its technical and financial development assistance and humanitarian aid
to help restoration and development after the flood. I am calling up to
further this kind of activity in the future.
3) ADB, as a regional multi-financed institution, always displays
common understanding of challenges and development needs of the region
as well as regional member countries, and accordingly strives to be
responsive to them. The development gap among regional countries still
continues to pose significant challenges to ensuring competitiveness and
to achieving regional integration. To address these constraints, ADB
has provided its vision, set strategies, and initiated long-term
programs to ensure sustainable development for regional countries. ADB
has initiated the Greater Mekong Subregion (GMS) Cooperation Program for
six Mekong countries, including Cambodia. In addition, ADB has
supported the implementation of this program through further investing
in both hard and soft infrastructure. In this sense, I highly appreciate
a prominent role and assistance provided by the ADB, our trusted
partner, in supporting a number of flagship projects aimed at promoting
Cambodia’s internal integration and connectivity to neighboring
countries in the region. This is a key success for enhancing the
investment, socio-economic development, and poverty reduction.
The important occasion to celebrate the 20th anniversary
today reminds me of my vivid memories of the past relations with the
ADB’s management. First, the ADB’s sixth president is H.E. Mitsuo Sato who
died in 2002 at the age of 69. I still remember that, in 1997, while
Cambodia’s political situation was still in turbulence, H.E. Mitsuo Sato’s courageous
visit here was for opening the Bank’s Cambodia Resident Mission. His
visit was clearly evident that the ADB’s management was highly committed
to find ways to assist Cambodia while it was in high demand of
maintaining political stability as well as country’s restoration,
construction and development.
Then, the ADB’s seventh president is H.E. Tadao Chino, who
died in 2008 at the age of 74. He also visited Cambodia in 2000 while
the country was facing with the flood disaster. During his visit, ADB
also provided the Royal Government with concessional loans totaling of
about USD 56 million. Thereafter he facilitated the financing agreement
for the “Flood Emergency Rehabilitation Project in 2000” to be effective
just 1 hour after having the agreement got signed. Cambodian people are
indebted to ADB, a very close partner who stands ready when Cambodia
needs its support, for this charitable deed. In 2002, H.E. Tadao Chino also attended the first “GMS Summit” which was initiated by Cambodia to be held in Phnom Penh. At that time he expressed
his willingness and strong commitment to support the development of
Cambodia. Taking this opportunity, I would like to convey my condolence
for the passing of both H.E. Mitsuo Sato and H.E. Tadao Chino, and I also would like to gratefully and sincerely thank for their contributions to Cambodia.
During the mandate of H.E. Haruhiko Kuroda, since
2004, it can be seen clearly that the collaboration between the Royal
Government of Cambodia and ADB has considerably improved. I am delighted
to have closely worked with H.E. Haruhiko Kuroda during his many visits to Cambodia. I also remember that in February 2008, I and H.E. Haruhiko Kuroda were
on the same helicopter to preside over the Grounding Construction
Ceremony of rehabilitation of the railway under the GMS Rehabilitation
of the Railway in Cambodia Project. This project is financed by ADB in
the amount of about USD 84 million along with the co-financing from other development partners. May I take this opportunity to request H.E. Haruhiko Kuroda
to enhance the project progress and its completion so that Cambodian
people will be sooner beneficial from this project. In late March and
early April of this year, H.E. Haruhiko Kuroda joined the “16th Meeting of ASEAN Finance Ministers” and
other important regional meetings in Cambodia, and also provided
Cambodia with a concessional loan of USD 55 million to finance the
“Flood Damage Emergency Reconstruction Project in 2011”.
On this occasion, I would like to inform the gathering that with the ADB’s support, the Royal Government of Cambodia, assisted by the Supreme National Economic Council (SNEC), a leading institution, is now preparing the strategic document namely “Cambodia Vision 2030” with the aim at propelling our nation from a “Low Income Status” to a “Lower Middle Income Country” in the next few years and a “Upper Middle Income Country” in 2030. Thereafter, Cambodia is aiming to be a “Developed Country” in 2050 without being trapped in “Middle Income Countries” classification. To achieve both objectives, Cambodia needs to accomplish sustained robust economic growth in an average of over 7% per year in the long run with equitable distribution.
On this occasion, I would like to inform the gathering that with the ADB’s support, the Royal Government of Cambodia, assisted by the Supreme National Economic Council (SNEC), a leading institution, is now preparing the strategic document namely “Cambodia Vision 2030” with the aim at propelling our nation from a “Low Income Status” to a “Lower Middle Income Country” in the next few years and a “Upper Middle Income Country” in 2030. Thereafter, Cambodia is aiming to be a “Developed Country” in 2050 without being trapped in “Middle Income Countries” classification. To achieve both objectives, Cambodia needs to accomplish sustained robust economic growth in an average of over 7% per year in the long run with equitable distribution.
In this regard, I would like to express my profound thanks to the ADB
for providing support in the preparation of the strategic document
“Cambodia Vision 2030”. I would like to further request the Bank to
gather any resources including finance and knowledge from internal ADB
and other external sources to absolutely achieve the Royal Government’s
ambitious goals in 2030 and 2050.
I feel confident that the ADB, with H.E. Haruhiko Kuroda as
current president, will continue its support to Cambodia through
strengthening cooperation on priority sectors for Cambodia’s
socio-economic development. In this spirit, I very much appreciate the
willingness and full commitment of ADB to align future activities in
Cambodia with the country’s planning cycle, and I strongly believe
Cambodia will Cambodia and the ADB will achieve another twenty years of
strong relation, and close collaboration.
In conclusion, I would like to wish H.E. Haruhiko Kuroda
good health and happiness to lead the Bank more successfully and
victoriously, and I wish the future Cambodia-ADB cooperation be crowned
with bright success. I also would like to wish all Excellencies, ladies,
and gentlemen good health and success in all of your endeavors.
