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Assessing development efforts in Cambodia:

Report on the Parliamentary Field Visit to

the Royal Kingdom of Cambodia

November 11 16, 2007

World Bank Cambodia Country Office


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Report on the Parliamentary Field Visit to the Royal Kingdom of Cambodia

Table of Contents

1. Introduction: Parliamentary Field Visit to Cambodia 1-2

1.1 Participants of the Field Visit: Advocates for agriculture & development 2

2. Current economic & political developments in Cambodia 2-53. The Role of the World Bank 5-7

4. The Role of the Consultative Group on International Agricultural Research (CGIAR) 7-9

5. The Asian Development Bank in Cambodia 9-10

6. The Field Visits Part I: Focus on Agriculture 10-15

6.1 IRRI PROVIDE Site 10-14

6.2 Rice mill visit 11-12

6.3 OTang Irrigation System 12-13

6.4 CelAgrid, CIAT Activities 13-15

7. The Field Visits Part II: Poverty Reduction Projects supported by the World Bank 15-19

7.1 Health Sector: Rokar Koh Kampong Health Centre 15-167.2 Decentralisation & Deconcentration: Commune Council & Local Governance Project 17

7.3 Gender, Youth & Education: Hun Sen Kampong Phnom Secondary School & KYSD 18

7.4 Water Sector: Visit to Phnom Penh Water Utility Project 19

8. Consultations with key stakeholders 20-23

8.1 Civil society 20

8.2 Royal Government of Cambodia 20-22

8.3 Leaders of the opposition 22

8.4 Donors & the private sector 23

9. Main Findings and Recommendations 23-25

9.1 On agriculture and development 23-249.2 On corruption, democracy & the effective use of natural resources for development 24-25

10. Impact of the visit: Changing debates, sharing experiences and building new networks 26-27

10.1 In the spotlight: MP John Deasy, Ireland 26

10.2 In the spotlight: MP Ruqia Nayel, Afghanistan 27

10.3 In the spotlight: MP Gbenga Makanjuola, Nigeria 27

Annexes

I. List of Participants

II. Programme of the Field Visit

III. Parliamentarians in the Field program

IV The World Bank and Parliaments

V PNoWB background


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Report on the Parliamentary Field Visit to the Royal Kingdom of Cambodia 1

Parliamentary Field Visit to Cambodia: Assessing Innovative Agricultural Research &

Development and Poverty Reduction Strategy

From 11-16 November, a high level delegation of 13 parliamentarians from countries in Asia, Africa,

Europe and Latin America visited Cambodia to witness and assess on the ground Cambodias

development efforts through the field visit program of the Parliamentary Network on the World Bank

(PNoWB).

The first two days of the visit focused on recent innovative development and research in the field of

agriculture and included visits to agricultural projects in the field. Day three to five of the visit were

dedicated to discussions and consultations with all major stakeholders in the Poverty Reduction

Strategy (PRS) in Cambodia. Parliamentarians held consultations with high level government officials,

including the Presidents of the National Assembly and the Senate, the donor community, civil society

and youth, the private sector and field visits to poverty reduction projects that receive support by the

World Bank in agriculture, public health, education and infrastructure. The visit was hosted by the

National Assembly of Cambodia and co-organized by the Parliamentary Network on the World Bank

(PNoWB), the Consultative Group on International Agricultural Research (CGIAR) and the World Bank.

The PnOWB was founded by parliamentarians and the World Bank in 2000. Its goal is to strengthen

transparency and accountability in international financial institutions by introducing new checks and

balances by involving parliamentarians across the world. The Network is now an independent

association of over 1000 parliamentarians from over 110 countries and has as of January 2006

functioned completely independent from the World Bank. The field visit program is one of the PNoWBs

key activities, organised jointly with the World Bank and supported by a grant of the Ministry of ForeignAffairs of Finland. Its purpose is to foster better understanding among Parliamentarians of development

activities and the role of the World Bank and donor coordination in recipient countries.

This is the first time as anMP that I have theopportunity of monitoringthe World Banks projectsat the grass roots at the

rural areas because beforenow, we just read it in thenewspapers Hon. GbengaMakanjuola, MP fromNigeria. Left: Hon. MP FinnMartin Vallersnes fromNorway next to Hon. JolleGarriaud-Maylam, Memberof the French Senate.

For parliamentarians from donor countries, the visit aimed to build awareness and capacity to make

decisions on the allocation of development aid budgets in their national assemblies. For

parliamentarians from recipient countries, the visit provided an opportunity to observe and scan the

World Banks work in another country and to learn about new innovative approaches to development,


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while sharing best practices and experience from their home countries with key government officials

and all other major stakeholders in Cambodia.

Participants of the field visit: Advocates for agriculture and development

The field visit to Cambodia brought together a unique group of thirteen parliamentarians from Africa,

Asia, Europe and Latin America with a strong record of engagement and interest indevelopmentalissues and agriculture. The delegation was led by Hon. Quentin Davies, Member of Parliament and

member of the International Development Committee of the House of Commons in the United Kingdom

and included:

From Afghanistan, Hon. Ruqia Nayel, Member of the Afghan Parliament and Member of the

Agricultural Commission joined the delegation. From Thailand, Hon. MP Tuan Untachai

participated.

African delegates brought a unique perspective stemming from experiences in their homecountries to the visit. African delegates were Hon. MP Serge Amuri from the Democratic

Republic of Congo, Hon. MP Gbenga Makanjuola, Member of Parliament and Chairman of the

House Committee on Agriculture and sub-committee chairman on natural resources

appropriation committee from Nigeria and Hon. MPAnastase Nzirasanabo from Rwanda, who is

a member of the Senate Committee of Economics and Finance.

From Europe, Hon. MP Jolle Garriaud-Maylam (France), member of the French Senate and

Member of the Foreign Affairs and the Defence and the Force Armys Committee, as well as the

secretary of the delegation for womens rights and equality opportunity among women and men.

Also from France, Hon. MP Jean Luc Reitzer, Member of Parliament and member of the

Foreign Affairs Committee and member of the France-Cambodia group. From Ireland, Hon. MP

John Deasy, recently appointed Deputy Spokesperson on Foreign Affairs with Special

Responsibility for Overseas Development Aid and Chairman of the Development Aid

Subcommittee participated. Norwaywas represented by Hon. Finn Martin Vallersnes, Member

of Parliament and since 2001 Member of the Standing Committee on Foreign Affairs and the

Enlarged Foreign Affairs Committee and also a member of the Inter-parliamentary Union. From

Portugal, Hon. Miguel Ginestal, MP and Chairman of the Committee on Economic Affairs,

Innovation and Regional Development, sub Commission for Agriculture, Rural Development and

Fishing. From Switzerland, Hon. Simon Epiney, MEP and member of the Finance Committeeand Committee on Environment and Energy.

From Latin America: Sharing experiences from agricultural development in Mexico Hon. Ramon

Salas, Member of Parliament and Secretary of the Agrarian Reform Committee and member of

the commission on water resources and viticulture participated in the visit.

Current economic and political developments and context in Cambodia

Cambodia has achieved impressive economic growth figures in recent years. However, there remain a

number of persistent and serious developmental challenges to the countrys economy that will have to

be addressed in the coming years in order to sustain current growth rates and consolidate economic

progress.


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Achieving Impressive Economic Growth

Cambodias economic performance continues to be solid. After three continues years of double digit

growth, the economy is expected to grow at 9.5 percent in 2007. This performance is underpinned by

continued strong exports (with a growth estimated at 27% in 2006 and projected at 14% in 2007),

private investment and consumption. Growth continues to rely on apparel exports, tourism, agriculture,

and construction. In 2007, garments exports continue to expand (17% expected growth) and tourist

arrival is estimated to increase by 25%.

Increasing trade volume, foreign direct investment and a growing financial sector

Large foreign direct investment (at 6% of GDP or more over the last 3 years) and the possible

exploitation of underground resources (oil, gas and mining) reinforce Cambodias medium-term growth

potential. Nevertheless, its narrow export base remains vulnerable to external developments. In

particular, the lifting of safeguard measures in China by the end of 2008 will further challenge

Cambodias garment sector. In addition, the exploitation of underground resources demands careful

management in terms of transparency, fiscal and macroeconomic aspects if Cambodia is to fully benefitfrom their potential. The garment sector has sustained growth rates despite the lifting of quotas, the

tourism industry continues to boom and there has been a significant increase in Foreign Direct

Investment, although largely in the natural resource sector, connected with the discovery of possibly

significant volumes of off-shore oil and gas reserves.

In 2007, international trade continued to grow rapidly and foreign reserves could reach US$ 1.4 billion

by the end of the year. Despite pressure from world oil prices, the current account deficit (excluding

transfers) decreased to -7.2 % in 2006 and is expected to stabilize at -7.5% in 2007. Inflation has

increased from 2.8% in 2006 to a projected 6.5% in 2007. The size of the financial sector is growing: 23

commercial banks are operating with total lending-to-deposit ratio of 68%, and 16 micro-finance entities

are providing an estimated US$ 50 million of credits to micro and small businesses. Structurally,

important laws were passed in 2007, including the law on combating money laundering and terrorist

financing, and on the issuance and trading of non-government securities.

For the first time, in 2007, Cambodia obtained a sovereign debt rating from Moodys and Standard &

Poors (a B-plus). Despite growing financial institutions, however, entrepreneurs are still facing

challenges to access credit (the average interest rate for one year term loans remains above

15%/annum). In addition, the IMF Article IV has flagged a number of risks in the rapid development of

the financial sector and has urged the central bank to step up its supervision.In addition, there are possibly significant mineral resources to be discovered and exploited. Peaceful

commune elections were held in 2007 and the Khmer Rouge Tribunal became operational in 2007.

Finally, China has emerged as a major donor to Cambodia.

Significant Challenges Remain

With a per capita income of US$ 490 in 2006, Cambodia still remains one of the poorest countries in

the world. Recent studies show that poverty declined from 47% to 35% during the last decade and that

the rise in inequality during the earlier part of the decade has stabilized in recent years. New data on

education and health shows that most indicators are improving, with the exception of the maternal

mortality rate. However, significant challenges remain to Cambodia and economic growth and social

development need yet to be consolidated. Despite the high growth, the base of economic growth


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remains narrow and needs to be diversified, as the garment industry is accounting for 80% of exports

and is increasingly facing tougher competition from Vietnam. While revenues have increased, the

revenue to GDP ratio remains at 11.5% inadequate and well below the average of low income

countries, which is 16%. In education, despite rapid gains in primary school enrolment, only half of the

children entering primary school complete it, as dropout rates remain extremely high. In the Human

Development Index, Cambodia ranks 131 behind LAO PDR and before Myanmar. Life expectancy at

birth is 58 years, there is a 73.7 literacy rate, GDP per is capita 2,727 USD and there is a 60 %

combined gross enrolment ratio for primary, secondary and tertiary education. The HDI classifies it as a

country with medium human development.

Illegal logging

According to the Human Development Report 2007/2008 illegal logging of hardwood timbers for export

was responsible for much of the 30% reduction in primary rainforest cover since 2000- one of the most

rapid losses recorded by the FAO worldwide. Cambodia estimates that US$ 10 million of investment

will be required to construct water gates and culverts for newly rehabilitated road networks developedwithout factoring in increased risks of flooding.1

Governance issues

Cambodia ranks 152 out of 163 in the corruption perception index of transparency international.

According to Transparency International, in contrast to Asias middle to high income countries, the

commitments of Cambodia to ensuring adequate support for

courts and their personal has weakened, inviting corruption

and undermining the rule of law. Judicial officers are among

the least trusted government actors and provincial courts

are among the least trusted institutions.2 Low salaries and

the courts financial structure are significant causes of

corruption. The government allocated 55.2 billion riel (US$

13.1 million) to the judiciary in 2006, with each lower court allotted an annual budget of US$ 23,100.

There are 225 judges, or 17 per million people in Cambodia, and fewer than 300 practising lawyers.

Judges received a 10-fold pay raise in 2002 in a bid to curb corruption. With a base rate of only 1.4

million riel (US$ 360) a month, this had little impact on corruption because it was granted universally

with no reference to performance. Standard civil service salary is 130,00 riel (US$ 33.35) per month.

Even complicated trials routinely last less than 10 minutes, and an estimated 50 percent of cases go

forward without an attorney. Judicial opinions are not documented transparently, and judges rarelyexplain their reasoning or note it in the court record, although this is required by law.

Economic freedom and property rights

According to the 2007 Index of Economic Freedom developed by the Wall Street Journal and the

Heritage Foundation, Cambodia ranks 102 out of 157- before India and behind the Philippines.

Cambodia must foster a more transparent, rules-based economic system to encourage business

development and expansion beyond the current base of textiles, tourism and agriculture. Starting a

1See: Human Development Report 2007/2008. Fighting Climate Change: Human Solidarity in a Divided World. Also: Royal Government of

Cambodia. 2006. National Adaptation Programme of Action to Climate Change (NAPA). Ministry of Environment, Phnom Penh.2

See: Public Opinion Surveys on Judicial Independence and Accountability. Country Report Cambodia. Asian Development Bank, September2004.

While Cambodia receives large

volumes of aid, the delivery of aid

remains highly projectized and

fragmented. Most notably,governance remains weak, as a

number of global indicators confirm.


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business takes on average 86 days, compared to the world average of 48 days. The overall freedom to

start, operate, and close a business is significantly limited by the national regulatory environment.

Cambodias legal system does not protect property effectively and contains many gaps in company

law, bankruptcy, and arbitration. The land titling system is not fully functional; most property owners do

not have documentation to prove ownership.

The Role of the World Bank in Cambodia

The World Bank in Cambodia currently finances thirteen projects that are under implementation for a

total of US$ 263 million in loan and grants. In addition to financial assistance, the World Bank provides

knowledge and ideas and technical assistance to the country, e.g. through the Equity Report and

Poverty Assessment. During the visit, delegates received a detailed and comprehensive briefing on the

World Banks activity and strategy in Cambodia from World Bank Country Manager Nisha Agrawal, as

well as from sectoral experts from the World Bank country office.

Delegates received a detailed briefing on World Bank activity by World Bank Country ManagerNisha Agrawal and World Bank sector experts.

A Vision for a Cambodia free of poverty

The World Bank promotes a vision of a Cambodia that is free of poverty, enabling it to reach the

Millennium Development Goals by eradicating poverty and hunger, achieving universal primary

education, reaching gender equality and empowering women, reducing child mortality, improving

maternal health, combating HIV/AIDS, malaria and other diseases, ensuring environmental

sustainability and providing de-mining and victim assistance.

Focus on Governance: The World Bank Country Assistance Strategy (CAS)

In order to attain these goals, it has designed the so-called Country Assistance Strategy (CAS) which

lays out the World Banks program of assistance to the country and is designed to support the

implementation of the governments own Poverty Reduction Strategy. The CAS was developed after

extensive consultations with all key stakeholders (Government, private sector, civil society, and other

development partners) and was endorsed by the Board of Directors in May 2005 for the period of 2005-


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2008.3 In Cambodia, the CAS was designed with a focus on governance, as many institutions of

governance were destroyed during the last three decades of conflict and need to be rebuilt. Analytical

work pointed to governance as the main constraint to poverty reduction in the country. For instance, the

Investment Climate Assessment (ICA) documented the high costs of doing business in Cambodia

(2004-2005), the Integrated Fiduciary Assessment and Public Expenditure Review (IFAPER) identified

the need for critical public financial management reforms (2003) and the study Cambodia at the

Crossroads found that accountability mechanisms were weak and needed to be strengthened (2004).

Figure 1: Country Policy and Institutional Assessment (CPIA) 2005 Ratings, demonstrating Cambodialagged its peers on governance indicators.

Accordingly, the World Bank has designed the CAS for Cambodia to tackle governance at two levels:

Firstly at the country level to build back the institutions of governance that were destroyed by three

decades of conflict and secondly at the project level to protect funds delivered through World Bank

projects. The overall CAS rests three pillars. The goal of the first pillar is to remove the governance

constraints to high poverty growth and poverty reduction by focusing on four themes at the country

level:

1. The promotion of private sector development by reducing the costs of doing business.

2. Strengthening public financial management (including management of oil revenues in the

future).

3. Improving natural resource management (securing property rights to land and access to

forests).


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4. Supporting decentralization and strengthening local governance and promoting a stronger

demand for good governance by increasing citizens voice and participation in the policy making

process.

On the project level, the first pillar strives to reduce fiduciary risks in order to protect World Bank project

fund in the short term. In collaboration with the Cambodian government, The World Bank has

undertaken a study to understand the weaknesses in the underlying fiduciary systems that were

leading to leakages in World Bank projects.

Pillar two focuses on the support of Cambodia to reach the MDGs by aiding with the formulation and

implementation of a Government-led strategy (the National Strategic Development Plan) to achieve the

MDGs and help with analytical and investment services under-funded sectors and sub-sectors critical to

reaching the MDGs. Finally, the third pillar promotes partnerships with other stakeholders.

Since the World Bank is a relatively small financial player in Cambodia, providing about US$ 50 millionper annum of a total of about US$ 600 million in 2005 and has recognized that it cannot tackle

governance and corruption challenges or attain the MDGs alone, it has decided to do a joint CAS with

the Asian Development Bank (ADB), the UK-Department for International Development (DFID) and the

UN system, putting governance at the heart of the CAS. In addition, the World Bank has conducted a

joint CAS with the World Bank Group, namely the International Finance Cooperation (IFC) Mekong

Private Sector Development Facility (MPDF), which provides advisory services at national and

provincial levels and to institutions supporting enterprises. Currently, the World Bank is evaluating the

implementation of the CAS during the last two years and preparing a progress report to be presented in

early 2008.

Current Portfolio under Implementation

Trade Facilitation and Competitiveness (FY05- FY10), IDA Grant of USD 10 m.

Education Sector Support (FY05- FY11), IDA Credit USD 20 m.

Rural Electrification and Transmission (FY04- FY09), IDA Credit USD 40m.

Provincial and Rural Infrastructure (FY04-FY10), IDA Credit USD 20 m.

Provincial and Peri-Urban Water Supply (FY03- FY08), IDA Credit USD 19.9 m.

Health Sector Support (FY03-FY09), IDA Credit USD 27 m.

Economic and Public Sector Capacity Building (FY02- FY08), IDA Credit USD 5 m.Land Management and Administration (FY02- FY08), IDA Credit USD 26.6 m.

Biodiversity and Protected Areas Management (FY00-FY08), IDA-GEF USD 4.6 m.

The Role of the Consultative Group on International Agricultural Research (CGIAR) in Cambodia

The CGIAR is a strategic alliance of members, partners and international agricultural centres that

mobilizes science to benefit the poor. It works to achieve sustainable food security and reduce poverty

in developing countries through scientific research and research related activities in the fields of

agriculture, forestry, fisheries, policy, and environment. Cambodia and the CGIAR have worked

together as partners since the 1980s, when Cambodias Ministry of Agriculture, Forestry and Fisheries(MAFF) invited the International Rice Research Institute (IRRI) to help the country restore its rice

capability after many years of civil war. With funding from the Australian government, the Cambodia-


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IRRI-Australia project (CIAP) was launched in 1987 to increase rice production to improve food security

and develop Cambodias agricultural research capacity. Within a decade, Cambodia achieved rice self-

sufficiency, with 34 varieties released, researchers and technicians trained, infrastructure rebuilt,

national genetic resources restored, and an extensive network of government and nongovernmental

collaborators established. In 1999, those efforts culminated in the creation of the Cambodian

Agricultural Research and Development Institute (CARDI). Presently, the Cambodia-CGIAR partnership

involves several CGIAR supported Centres that are contributing to Cambodias agricultural

development together with local institutions.

A collaborative initiative between Cambodias Ministry of Water Resources and Meteorology

(MOWRAM) and the International Water Management Institute (IWMI) is supporting Cambodias

adoption of so called Participatory Irrigation Management and Development (PIMD) policies.

PIMD, now part of national policy in Cambodia, enables farmers to take over the management

of their irrigation systems, with the aim of improving productivity, incomes and living conditions.

IWMI has been working with MOWRAM in developing a PIMD program for Cambodia thatprovides assistance in three stages: initial policy formulation, preparation of implementation

guidelines and training modules, and program implementation.4

In Cambodia, 85 percent of the population are rice farmers, and rice provides three-fourths of

daily calorie intake. There is an urgent need to increase rice production in the poorest regions of

the country. Plan International is setting up schools and training teachers for remote villages,

but poor rice yields due to droughts are forcing villagers to send their children to work to earn

money for rice. In response, Project PROVIDE (Poverty Reduction Options Validated in Drought

Environments) was developed by IRRI, Plan International and CARDI together with theprovincial agricultural extension service to solve the problem in six villages in Siem Reap and

Kampong Cham Provinces to help poor rice farmers to increase yields, improve food security,

and thereby enable them to send their children to school.

CIAT, the International Centre for Tropical Agriculture is engaged in a program to develop

cassava a raw material for animal feed and starch production, which could become an important

source of cash income for poor farmers. Currently, several companies are planning new

factories for the production of dry chips, starch and bio ethanol, with the potential to boost

market demand for cassava. In 2004, at the start of the programme, nine Thai cassava varieties

bred in collaboration with CIAT were introduced in Cambodia together with CARDI and showed

higher yields. Additional varieties were introduced from Vietnam and China, which are now

being multiplied for widespread testing. In addition, CIAT is working with CelAgrid to conduct pig

feeding trials. Findings indicate that cross-bred pigs fed a diet of rice bran, cassava root meal

and either wilted or ensiled cassava leaves result in weight gain of about 200-300 grams a day.

In the long term, these efficient and effective integrated cassava-based cropping and livestock

production systems will enhance total farming productivity and livelihoods. CIAT is also starting

new activities related to the use of improved forages as feed to improve livestock production.

Shortage of animal feed is a major limitation to livestock production, especially at certain times

of the year. By planting small areas of high-quality productive forages, farmers are able to

4For further information on the project see: www.iwmi.cgiar.org


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greatly reduce feed shortages. A range of forage species and varieties have been evaluated

widely in the region and used successfully by smallholder farmers. At the same time, the

capacity of extension staff has been increased, so they can work in partnership with farmers to

improve livestock production systems and rural livelihoods. A third area of work has involved

training NGO staff to improve smallholders links to markets.

The Mekong River and Tonle Sap Lake create a vast freshwater system covering 1.8 million

hectares. Sixty-five million people in this region live mostly along rivers and water courses, and

depend heavily on shared resources- water, fish, land and forests. Increasing population, over-

exploitation of resources and degradation of the environment are threatening livelihoods,

especially those of the poor. In response, the WorldFish Centre has developed a program on

aquatic resources for poverty eradication and food security in the Mekong Region. Research

aimed at increasing the productivity of small-scale farmers has resulted in methods for

integrating aquaculture with rice farming in floodplain ecosystems. Farmers are now able to

obtain 500-1500 kilograms of fish per hectare from flooded ecosystems, compared to anaverage of 50 kilos before. Resulting from genetics research, farmers have now access to

improved fish breeds, resulting in increased production and lower costs.

The Asian Development Bank in Cambodia

Arjun Goswami, Country Director of the Asian Development Bank in Cambodia identified Cambodias

current challenges at the crossroad of economic development.

Political stability juxtaposed with demographically driven demands for concrete development

results and employment

Impressive economic growth and improving debt sustainability juxtaposed with future potential

resource curse and volatility risks

Progress on certain social indicators juxtaposed with persistent poverty, especially in rural areas

where the most poor people and growing labour force live

Economic growth despite poor governance but with governance constraints becoming more

acute as the economy moves beyond security and subsistence

Challenge of being a dynamic region.

As a response to these challenges, the ADB has focused its Country Strategy and Program 2005-2009on intensifying agricultural and rural development, supporting good governance for sector reform, risk

mitigation and institutional reforms for anticorruption.

ADB Programming 2007-2009

ADBs lending indicative 3-year pipeline of a total of 204.3 million (up to 50% grant) is composed of

USD 60 million for agriculture and natural resources, USD 44.5 million for education, USD 17 million for

industry and trade, USD 33 million for transport and communication, USD 11.8 million for law,

economic management and public policy, USD 23 million for finance and USD 15 million for water

supply and sanitation. In addition, the non-lending indicative pipeline amounts to USD 13.9 million.


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The Field Visits: Focus on Agriculture

The first two days of the visit were devoted to recent innovative developments and research in the field

of agriculture. Delegates visited agricultural projects supported by the Consultative Group on

International Agricultural Research.

1. IRRI PROVIDE (Poverty-Reduction Options Validated Drought Environments) Site, Daun Pengcommune, Angkor Chum, Siem Reap Province.

Local farmers gave

delegates a warmwelcome on their ricefields at the IRRIPROVIDE site in theDaun Peng commune.

Poor rice yields due to droughts are forcing villagers to send their children to work, instead of to school,

to earn money for rice and pose a threat to food security in rural Cambodia. In response, the

International Rice Research Institute (IRRI), CARDI and Plan International have developed Project

PROVIDE (Poverty Reduction Option Validated in Drought Environments) in six villages in Siem Reap

and Kampong Cham provinces to help poor rice farmers to increase yields, improve food security, and

therefore enable them to send their children to school and improve food security. Delegates visited

experimental rice fields and consulted with local rice farmers and the district leader of Daun PengCommune, were 120 families are cultivating rice on plots of about 1.2 hectares per family. Daun Peng

Commune frequently suffers severe droughts that destroy harvests. Through a combination of

improved rice varieties and farming techniques such as the leveling of fields and the application of

mineral fertilizers, farmers were able to improve yields by 30% with less than 50% of the amount of

seed they previously used, as local farmer Iean Im reported to delegates. Dr. Gary Jahn, IRRI

Representative and Coordinator for the Greater Mekong Subregion explained that the improved rice

varieties which allow for later sowing (August instead of June), enabling farmers to avoid drought. The

district leader asked delegates support for the building of an irrigation dam for this village, as this wouldenable farmers to more than double yields. Farmers also noted the dramatically increasing prices for


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real estate. Delegates raised concern about the impact of such of a possible irrigation dam on

neighbouring villages and stressed the importance of an effective system of land titles for local farmers.

MP Quentin Davis fromthe United Kingdom,leader of the delegation,questions Siem Reapfarmer Iean Im and herfellow farmers about herexperience, problemsand their assessment ofthe future potential of theIRRI PROVIDE project.Left: MP Miguel Ginestal

from Portugal and MPJean Luc Reitzer fromFrance.

2. Rice Mill Visit, Siem Reap City

Following the visit with local farmers, delegates were able to gain insight into the post harvest phase of

rice production at a local rice mill in Seam Reap City. Without proper milling of rice, rice easily spoils

and can only be kept for a short time. Milled white rice can be stored indefinitely as long as the grain is

kept dry and in airtight containers. IRRI postharvest projects have introduced milling and storage to thevillage level in Cambodia and other countries. At the site, the mills owner explained production

techniques and marketing principles to delegates. At the mill, farmers receive 22 cent per kilo for

unmilled rice, which is then milled and resold at US$ 333 per tonne (33 cents per kg) on the local

market. Dr. Gary Jahn of IRRI explained the great importance of rice as a source of complex

carbohydrates and protein in Cambodia, where malnutrition remains a serious problem with 35%

children affected in villages. Both vitamin A and iron deficiency remain common, especially in rural

areas.

The owner of the rice mill explainstechnical procedures and marketing principles of rice milling in Cambodia todelegates. Left: Dr. Gary Jahn of IRRI.


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Delegates raised concern over the fact that farmers do not organize locally to collectively sell their

produce to local markets, enabling them to achieve higher profits for their rice. Blake Ratner, the World

Fish representative in Cambodia, said agriculture and agricultural research remain of paramount

importance to the Cambodian economy: We need policymakers to strengthen the vital role agriculture

plays in poverty reduction.

3. OTang Irrigation System, Kampong Speu Province

On the following day, delegates visited a participatory irrigation project in Kampong Speu Province

which is implemented by the Cambodian government with technical assistance from the International

Water Management Institute (IWMI).

Rehabilitated reservoirand dam of OTangIrragation System,Kampong Speu Province

At a station close to the

reservoir, Ella Pereira, who

has been a consultant with

the project since 2004, together with the chairman and five members of the local Farmer Water User

Community Committee explained to delegates the functioning of the irrigation scheme for local villages.

The site visited has been among the best performing among eleven pilot schemes based on an

innovative, participatory system of irrigation. Part of the irrigation scheme, such as the bridge, the dam

and the reservoir, were built in 1976 by the government. In 1998, the scheme was rehabilitated. Water

is allocated after individual farmers submit requests to the committee. Through the project, local

farmers were able to increase yields by 1,5-

1,8t/hectar, as well as increase income by growing

water melon in the dry season. According to

Perreira, the water from the reservoir serves as

supplemental supply to farmers, who pay 20-50 US$

per hectare for irrigation. Prices vary depending on

the need to pump the water to the fields. Delegates

raised serious concerns regarding this form of pricing mechanism, among them MP Quentin Davis, who

criticized it as inefficient and lacking economic incentives for prudent water usage.

Charging per hectare does not provide aneconomic incentive to take less than youneed under the current charging scheme. Ifthis is replicated throughout Cambodia, wewill create a very inefficient system. Priceincentives for water are needed Hon. MPQuentin Davies, United Kingdom.


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Ella Perreira,consultant with the project since 2004explains the irrigationscheme to delegates

After the visit, delegates met with local farmers in one of the beneficiary villages of the irrigation

scheme. Farmers explained the strengths and weaknesses of the scheme, the possibility of two

seasons of cultivation for crops and marked an increased need for culverts to decrease cost for water

usage which are generated from the need to pump the water over longer distances.

4. CelAgrid, CIAT Activities: Use of cassava for pig feeding, Prah Theat Village, Kandal SteungDistrict, Kandal Province

The following visit led delegates to CelAgrid Station, a research center that works on research on

cassava leaves for livestock feeding. CelAgrid was founded in 2003, together with the University of

Tropical Agriculture. The research centers director delivered a presentation to delegates on current

research activities. Cassava leaves, which farmers grow in the backyards and which are not consumed

by humans in Cambodia, contain high levels of protein and can provide a suitable feeding source for

livestock, especially pigs. Through its research program, the centre has developed recipes for cassava

silages and a mix with other additives which allows for maximum weight gain in pigs. In addition, the

production of silage allows farmers to store fermented cassava leaves for months. In the pilot project,

each farmer receives two piglets to test the newly developed feeding techniques. In addition to

research on cassava leaves, the center has developed a biogas plant prototype which can be used as

to produce energy for local farmers. The prototype involves capital costs of US$ 45 for materials. It can

run on the manure produced by four pigs to produce enough energy for one family. In addition, it

provides an effective sanitary system to manage the manure. Further, the center is currently developing

fish breeding techniques for cod to be used in local villages.


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Pig feeding on cassava silage produced as part of innovativeagricultural research at CelAgridstation.

5. Outline of CIAT activities at CARDI and in other provinces

Delegates visited a number of experimental fields in the CARDI compound, where Dr. Reinhart Howeler

of the International Centre for Tropical Agriculture (CIAT) explained CIATs activities in Cambodia and

in the region. Accordingly, CIAT is engaged in a program to develop cassava as a raw material for

animal feed and starch production, which could become an important source of cash income for poor

farmers in Cambodia. Currently, several companies are planning new factories for the production of dry

chips, starch and bio-ethanol, with the potential to boost market demand for cassava. In 2004, at thestart of the programme, nine Thai cassava varieties bred in collaboration with CIAT were introduced in

Cambodia together with CARDI and showed higher yields. Additional varieties were introduced from

Vietnam and China, which are now being multiplied for widespread testing. In addition, CIAT is working

with CelAgrid to conduct pig feeding trials. Findings indicate that cross-bred pigs fed a diet of rice bran,

cassava root meal and either wilted or ensiled cassava leaves result in weight gain of about 200-300

grams a day. In the long term, these efficient and effective integrated cassava-based cropping and

livestock production systems will enhance total farming productivity and livelihoods.

Dr. Reinhard Howeler of CIATexplaining cassava research and usein Cambodia. Left: MP Jean-LucReitzer from France.


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Dr. Reinhardt Howelerexplaining demonstration plants (cassava) to MP Serge Amuri from the DemocraticRepublic of Congo.

On the same day, parliamentarians visited the Cambodia Agricultural Research and Development

Institute (CARDI). At the institute, the team was greeted by CARDIs director Dr. Men Sarom and

discussed activities that CARDI, World Fish and IRRI are undertaking in Cambodia. In the ensuing

debate, delegates, among them Portuguese MP Miguel Ginestal, raised the following critical points:

Farmers need to be linked more efficiently to markets.

Farmers need to be encouraged to create cooperatives in order to be able to access markets

more efficiently and negotiate collectively in order to receive higher profit margins. In addition,

they need to form coalitions and interest groups in order to lobby their interests at the political

level.

Donors need to support vocational training and technology transfer for rural farmers in

Cambodia in the field of agriculture.

Field Visits to Poverty Reduction Projects supported by the World Bank1. Health Sector: Visit to Rokar Koh Kampong Health Center, Kampong Speu

The following part of the field visit was hosted by the World Bank, starting with a visit to the Rokar Koh

Health Center, one of the public health centers supported by the World Bank and other development

partners through the Health Sector Support Project. At the health center, delegates met with Health

Minister H.E. Nuth Sokhom, provincial health department officers and health center staff, as well as

with patients who had come to use the centers services. Through the visit, delegates were able to gain

insight into the everyday functioning and challenges of public health services in rural Cambodia.

According to World Bank Senior Health Specialist Toomas Palu, health centers of this type are central

to the governments effort to improve access to primary health care. Typically, each health center

provides care to 10,000- 12,000 people in surrounding communities, with a total of 967 centers

throughout Cambodia. Primary health care provided includes vaccination of children, antenatal care,

professional assistance to childbirth, and first level treatment to common diseases, outreach to

communities with public health messages, and other measures. Health centers interact with Village

Health Support Groups and also have a community participation mechanism via the Health Center


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Management Committees. The center visited represents World Bank support to improving infrastructure

based on a new health center design. In addition, the World Bank provides financial support for the

training of health staff. H.E. Nuth Sokhum, Minister of Health welcomed the delegation at the site and

thanked for their support, stating that a new strategic plan is under development to tackle health issues

with a focus on the fight against maternal mortality and bird flu. In order to address the issue of bird flu,

the ministry has launched awareness campaigns. As part of the campaign, two volunteers per village

teach local farmers about the dangers of avian influenza.

The local health center was inaugurated in early 2007 and employs a total of 7 health workers, who

offer general consultations, treatment of child illnesses, general delivery, small surgeries, natal and

postnatal care, immunization services, detection of tuberculosis, de-worming, vitamin supplementation

and home based treatment for HIV/AIDS. The local head nurse reported the centers achievements in

2007 in these areas. Parliamentarians were generally impressed with Cambodias record of fighting

HIV/AIDS, which has led to a significant reduction of new cases, as well as the governments effective

campaign against avian influenza. MP Fin-Martin Vallersners from Norway showed special interest inan innovative financing mechanism in the health care sector. Through the establishment of an equity

fund that pays for primary health care for the rural poor and free vaccinations, health care becomes

accessible to those who would not be able to afford it otherwise. The discussion was followed by a tour

of the center. Delegates were impressed with the governments program against HIV/AIDS.

MP Fin Martin Vallersnes from Norway at Rokar Koh KampongHealth Center showed special interest in Cambodias innovativefinancing mechanism through the establishment of an equity fundthat pays for primary health care of the rural poor.

Avian influenza remains a danger to Cambodianfarmers. Through a nationwide awareness campaignthat specifically targets rural farmers and that uses posters such as these, Cambodia has achievedremarkable success. This achievement is important notonly for Cambodia, but for farmers around the world, asMP Miguel Ginestal from Portugal noted: Avianinfluenza is a global problem that affects us all and I amimpressed by the efforts undertaken by the Cambodian

government in preventing a pandemic


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2. Decentralization & Deconcentration: Commune Council and Rural Investment and LocalGovernance Project financed by the World Bank

Following the visit to the health center, delegates met seven commune council members at the Rokar

Koh commune office, representing the Cambodian Peoples Party, the Sam Rainsy Party, and the

Norodom Ranariddh Party. The parliamentarians were briefed by the commune chief about its

development, especially about the decentralization process. Through a program funded from thenational budget, and supported by the World Bank and other development partners, around US$

10,000 is granted to each of Cambodias 1621 communes every year. Improving the framework for

public and private investment in rural areas in Cambodia requires effective local governance.

Resources available to communes are still quite limited and their capacity, while steadily improving,

remains weak. Rokar Koh Commune does not have its own-source revenue and therefore relies solely

on the inter-governmental transfer of funds through the Commune/Sangat fund, which is financed in

part by the Rural Investment and Local Governance Projects by the World Bank.

Delegates were able to meet with provincial officials and project advisors and the Commune Council,which was elected for a five year term in February 2002 in Cambodias first local government election.

Commune Councils have the responsibility for a modest range of local development and administration

functions with their current, fairly limited capabilities. They include maintaining order and security,

managing commune development planning, including citizens involvement, and budgeting, designing

and implementing small-scale local development projects initially focused on the provision of small-

scale public infrastructure such as village roads. Given the low education and literacy rates in rural

areas, coupled with limited experiences with decentralized development, the capacity of commune

councils remains limited. On site, the head of the commune presented infrastructure as a priority need,

with a number of rural roads undergoing repair works. Other areas of focus were women and children

and environmental issues. In the Commune Councils, participation of women as councilors has

doubled since 2002 as one council representative noted. NGOs are training local women to participate

in the councils, as a female councilor reported.

Ms. Thun Sokleng, the sole female member of the Council,responsible for womens and childrens affairs, received

messages of encouragement and exchanged experiences ofwomen in politics with parliamentarians.


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3. Gender, Youth and Education: Visit to Hun Sen Kampong Phnom Secondary School, followedby visit to Khmer Youth and Social Development Organization (KYSD), Neak Loeung, KandalProvince

The education sector in Cambodia is facing several challenges in providing equitable access to

education services. Many primary schools are still under construction. Despite an increase primary net

enrolment rate of 92%, completion rates remain low, at 47%. A system for standardized learningassessment has yet to be established to guarantee quality and efficiency of education services. The

World Banks on-going portfolio for education in Cambodia is USD 28 million for 2005-2010. Delegates

visited the Hun Sen Kampong Phnom secondary school and were welcomed by students and H.E. Mak

Van, Secretary of State of the Ministry of Education, Youth and Sport, and education department

officers of Kandal province. Officials reported that enrolment figures are increasing in Cambodia,

educational facilities are improving and a scholarship program through the Education Sector Support

Project which is supported by the World Bank has been established. Following the official discussion,

delegates were able to visit classrooms and talk to individual students and teachers.

MP Anastase Nzirasanabo from Rwandaquestions local 9th grader about hiseducational experience.

Delegates delivered messages of encouragement and motivation and engaged in a lively discussion

with pupils in their classrooms. Next, parliamentarians visited a project supported by the World Bank

Small Grants Program. The Khmer Youth and Social Development Organization (KYSD) is a non-profit

organization that received a US$ 12,000 by the World Bank to promote women as partners in

promoting gender and good governance in the community in Kandal and Kampong Cham provinces,

targeting young people, particularly students. Parliamentarians were deeply impressed by KYSDs work

and the vitality, intelligence and eagerness to learn among the students.

MP Jolle Garriaud-Maylam from Francediscussing with participants at KYSD.


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5. Water Sector: Visit to Phnom Penh Water Utility Project

The final field visit took delegates to the Water Treatment Plant (WTP) in Chruoy Changwar, were

delegates met with H.E. Ek Sun Chan, General Director of the Phnom Penh Water Supply Authority

(PPWSA). Cambodia has made remarkable progress in rebuilding its urban water supply sector since

the early 1990s. The Phnom Penh Water Supply Authority (PPWSA) is serving the capital and its

suburbs and has gone through a major transformation, achieved with significant donor support over the

past decade, including funding from the World Bank, UNDP, Japan and France, with Japan being the

biggest donor (USD 60 million since 1993). The WTP, which was financed by the World Bank and

completed in 2003, provides 235,000 cubic meters of clean water per day. Delegates were greeted at

the site by H.E. Ek Sun Chan, Director General of the PPWSA and toured the facilities.

MP Ruqia Nayel, member of the Afghan parliamentinspecting the site.

Dr. Ek Sun Chan, General Director of the PhnomPenh Water Supply Authority (PPWSA)

discusses the development of the water sectorin Cambodia with delegates.


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Consultations with key stakeholders

1. Consultations with representatives from civil society

Parliamentarians met with representatives from civil society during a visit of HAGAR Restaurant, an

NGO that provides employment, training and rehabilitation to people who have suffered from sustained

human rights abuse, severe trauma, and or disability. HAGAR runs two restaurants, a beverage tetrapack processing factory and a garment factory for handbags in Phnom Penh. The IFC participates as

an equity partner. In a lively discussion with representatives from civil society, parliamentarians listened

to the concerns and thoughts and learned about the views of civil society members on the development

efforts in Cambodia undertaken by the government and supported by international donors and

development agencies. Most importantly, discussants from NGOs raised the following points and

concerns:

On the issue of natural resources and land grabbing:

Next to the need to enforce existing policies and laws, there is a need to provide environmental

impact assessments throughout the country.

Indigenous people should receive land titles as soon as possible.

There are strong concerns regarding the proper management of existing resources and their

use for the public good.

On agriculture

Both donors and the government are not paying enough attention to the development of the

agricultural sector. The government has failed to develop a comprehensive policy to support

farmers.

Farmers are left to themselves with unsustainable crops and are facing strong competition from

imported agricultural products.

Farmers are seeking new and innovative techniques, and the agricultural research sector is

facing a large human resource gap.

Donors are unable to reach farmers while the government and the World Bank are suffering a

knowledge gap in agriculture.

On corruption:

Corruption remains a major problem in Cambodia, with ineffective legal measures in place to

curb power and survival corruption.

Consultations with the Royal Government of Cambodia

During their stay in Cambodia, parliamentarians engaged in an intensive dialogue with high level

members of the Royal Government of Cambodia on a number of issues of utmost importance to

Cambodias development efforts. Consultations were held during a courtesy meeting with H.E. Heng

Samrin, President of the National Assembly, a meeting with H.E. Chea Sim, President of the Senate

and a dinner with high level representatives from government.

During a meeting with the heads of the nine Special Commissions to the National Assembly,

parliamentarians started a thorough and lively debate. Items to be discussed in the meeting had been

drawn up during a lunch briefing session with World Bank staff at the World Bank Country office, in

which experts from the World Bank country team around Country Manager Nisha Agrawal delivered


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detailed briefings on Cambodias development efforts by sector. Accordingly, items that were discussed

focused on:

1. Health & education (public services)

2. Economic issues, including aid

3. Environment

4. Governance, transparency, human rights

H.E. Mrs. Ho Naun, Chairwoman on Public Health, Social Work, Veteran, Youth Rehabilitation, Labor,

Vocational Training and Womens Affairs explained government policy in the fight against HIV/AIDS.

Together with UNAIDS, the government established a government authority to tackle the problem.

Raising awareness through the media, university and school, non-discrimination against people living

with HIV/AIDS and educational program throughout the whole spectrum of society are central elements

of the policy. The government budget for HIV/AIDS reduction programs is large. MP Miguel Ginestal of

Portugal raised the importance of having effective measures in place to fight against avian influenzaoutbreaks in the future, before it spreads to neighboring countries and eventually becomes a global

pandemic. H.E. Mrs. Khoun Sodary, Chairwoman on Protection of Human Rights and Reception of

Complaints and H.E. Mrs. Ho Naun of Public Health explained that the government has installed local

test centers in the country side and has set up awareness campaigns but is facing budgetary restrains.

H.E. MP Jolle Garriaud-Maylam asked questions concerning education and the representation of

women in parliament. Commissioners explained that after the end of the Red Khmer regime, 60% of

the population were women, who often get married after the age of 14 and do have a mindset that they

cannot generate income for their families. Enrolment of females in primary school is equal to that of

males, but completion rates remain low.

H. E. MP Miguel Ginestal noted that there is a need to prepare children from age 1-5 to go to primary

school at the age of six. Commissioners pointed out that the government has adopted a policy of

building schools closer to home in order to give all access to education. Further, the government with

assistance from the International Labor Organization (ILO) tries to discourage from using their children

for labor and provides housing and education for children, for instance in Kampung Chang salt

production.

Parliamentariansengaged in alively discussionwith the heads ofthe nine reformcommissions.


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Several Commissioners identified receiving international aid, investments in the garment sector, a

government law on investment in Cambodia which increased foreign direct investments in the country,

most favored nation status in the world trade regime and 1,110 temples and other historical sites as key

factors for economic growth. Further, Cambodia wants to develop mutual investment protection

agreements with countries like China and expand economic activity to mining, while enabling

Cambodia to escape the resource curse. H.E. MP Quentin Davis of the United Kingdom raised the

issue of Cambodias lack of an anti-corruption law and questioned the commissioners directly on

whether or not they will create such law and sign on to the Extractive Industries Transparency Initiative.

H.E. Than Sina, Chairman on Economy, Planning, Investment, Agriculture, Rural Development,

Environment and Water Resources responded that the government has developed civil and criminal

procedure codes with the help of France and Japan and are working towards a law on corruption. After

the discovery of significant oil resources and the prospect of extracting first oil in 2009, there has been

a workshop on EITI and three laws were established on the management of oil, the taxation of oil

companies and the management of proceeds from the oil business, respectively. H.E. Than Sina

assured delegates that the government will have an anti-corruption law in the future and reported thatthe government has established the Cambodian Petroleum Authority and is preparing 200 hectares of

land for companies that want to explore oil. In addition, there have been significant gold resources

found. In addition, H.E. Than Sina said Cambodian development will be based on a clean and good

society based on good governance. 28,8% of the government budget went to agriculture in 2008, while

the IMF wrote off USD 82 million in debt. The government is determined to dedicate significant

resources to agriculture, the diversification of crops and the building of irrigation systems. Furthermore,

the government is dedicated to keep impenetrable forests in Cambodia and has signed on the

convention on biodiversity. A law on biofuels has yet to be developed.

Consultations with leaders of the opposition

During the visit, parliamentarians met several times with leaders of the opposition and listened to their

views and concerns regarding economic and political development in Cambodia. Opposition leaders

stressed the following:

Urban and rural areas are facing great difficulties. Most importantly, prices for energy and

fertilizer have been rising rapidly and are higher in neighboring countries. As a result, especially

Cambodian agricultural products are not competitive with those of neighboring countries.

Corruption has led to an increase in prices and remains a key issue, as low salaries for public

servants and teachers (USD 30 a month) prevent an effective fight against corruptionWhile the King and opposition leaders have disclosed their private assets, other government

officials refuse to do so. A law on corruption will not pass.

Most of the proceeds from tourism in Angkor Wat are going to foreign companies in Thailand

and Vietnam.

Cambodia urgently needs a law against corruption and needs to implement the rule of law in

order to attract investments.

The government urgently needs to take steps to stop illegal logging and address the issue of

land grabbing.

Consultations with donors and the private sector

Delegates discussed Cambodias development issues with a large number of donors and

representatives from UN agencies, such as UNDP and the FAO and met with a group of


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representatives from the private sector and the International Finance Cooperation to discuss economic

and political issues. Development partners in Cambodia reported that Cambodia has made progress in

donor coordination and the Paris Declaration agenda of harmonization and alignment.

Main findings & recommendations

Through the field visit program to Cambodia, parliamentarians were able to get an in depth look into thethe state of development in Cambodia and the work of the World Bank and the CGIAR in the fields of

innovative agricultural research and development, education, public health, governance and the water

sector. Through a series of extensive consultations and discussions including senior government

officials, donors, civil society, leaders of the opposition and the private sector, delegates had the unique

opportunity to discuss the development process in Cambodia and raise all important issues of concern

with all key stakeholders. As a result of the field visit, delegates made the following comments and

recommendations:

On agricultural and development

Recommendation # 1: Strengthen knowledge and technology transfer from agriculturalresearch to local farmers.

MPs were generally impressed by the projects in innovative agricultural research, such as the

development of cassava for pig feeding. However, several MPs pointed to an apparent gap

between the results of research and the dissemination and application of findings among localfarmers.

Parliamentarians, among them Hon. MP Fin-Martin Vallersnes of Norway, noted that it is often

unclear how many of the innovative developments in the field of agriculture are transferred to

local farmers to have a direct and visible positive impact on their livelihoods.

Recommendation # 2: Create economic incentives through a pricing mechanism thatpromotes effective water usage in irrigation projects.

Delegates, first and foremost Hon. MP Quentin Davis from the United Kingdom noted the need

to create economic incentives for farmers to use the scarce water resources more effectively in

irrigation projects by local farmers, helping them to increase yields.

Charging water in irrigation schemes per hectar of irrigated land will not promote efficient use of

water resource.

Recommendation # 3: Assist farmers in adopting a strategic approach to products andmarkets.


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Parliamentarians noted the apparent lack of collective organisation among rural farmers. As a

result, effective lobbying for the interests of farmers at the political level does not occur. In

addition, farmers are missing out on the chance to organise collectively to achieve higher prices

for their products on local as well as international markets. Therefore, farmers should be

supported in organising collectively in order to represent their interests effectively at the local

and national level. MP Miguel Ginestal of Portugal remarked: We did not see enough efforts to

transform producers. Farmers need to adopt a strategic approach to their products to market

them at a better price. Producers should be organised in order to be better prepared for

competition in the market.

In addition, rural farmers should be enabled to diversify their crops, as Ramon Salas, Member of

the Mexican Parliament and Secretary of the Agrarian Reform Committee.

On corruption, democracy, and the effective use of natural resources and other issues:

Recommendation # 4: Establish a federal law that makes corruption a criminal offence.

Parliamentarians repeatedly stressed the need for Cambodia to tackle its massive corruption

problems. An important step should be the establishment of a federal law that makes corruption

a criminal offence- an international legal standard, to which the Cambodian penal code yet has

to catch up to.

MPs pointed to the potentially negative economic impact that widespread corruption can have

on the future economic development of Cambodia. As MP Quentin Davies pointed out: It is anabsolute anomaly that corruption is not a criminal offence in Cambodia. This can only become

an increasing obstacle to foreign direct investment, domestic capital formation and the

emergence of an entrepreneurial economy.

Recommendation # 5: Sign up to the Extractive Industries Transparency Initiative as soon aspossible

Cambodia has made potentially significant discoveries of hydrocarbons, but also of other natural

resources in the mining sector. Currently, international companies are engaged in the bidding

process and the negotiation of production sharing agreements.

In order to ensure transparent and efficient use of Cambodias natural resources, MPs felt that it

seems essential that Cambodia should sign up to the EITI before rather than after significant

investments in the sector are made.

The international community, many MPs underscored, should encourage Cambodia to use its

natural resources for development.


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Recommendation # 6: Effectively address the issue of land grabbing and step up the issuingof land titles.

The land titling system in Cambodia is not fully functional and most property owners do not have

documentation to prove ownership. Especially among rural peasants and investors wishing to

develop the land, this becomes an increasing source of conflict. During the visit, this concern

was voiced repeatedly by members of Cambodian civil society, rural peasants and opposition

leaders.

MPs stressed that it is essential for Cambodia to increase its efforts in making the land titling

system fully operational to effectively protect individual property and ownership rights.

Recommendation # 7: Increase efforts in fighting deforestation and illegal logging.

Illegal logging remains a massive problem in Cambodia. The Human Development Report

2007/2008 documents that illegal logging of hardwood timbers for export in Cambodia was

responsible for much of the 30% reduction in primary rainforest cover since 2000.

MPs stressed the need to increase efforts in fighting deforestation and illegal logging in order to

avoid dangers of increased flooding, the destruction of Cambodias natural habitat and the

negative effects on the global effort to fight climate change.

Recommendation # 8: Build up a genuine climate of democracy

MPs noted the positive steps Cambodia has taken towards more democracy, but also pointed to

a lack of political organisation among several interest groups, most importantly rural peasants.

MPs encouraged the government to continue its path towards more democracy. MP Simon

Epiney stated: Cambodia needs more democracy and should not be afraid of it.

Recommendation # 9: Address the growing gap between the rich and the poor

The gap between the rich and the poor in Cambodia is widening rapidly. MPs pointed out the

need for the government and the international donor community to address these issues.


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Impact of the visit: Changing debates, sharing experiences and building new networks

MPs reported that the field visit program provided them with an extraordinary opportunity to witness on

the ground the development efforts in Cambodia and to discuss major issues of concern with all key

stakeholders of the development process. Furthermore, MPs said it was specifically important for them

to get an insight into the work of the World Bank and the CGIAR. Delegates reported that their

experiences and findings will have a significant impact on the debate on development issues and the

allocation of budgets in their national parliaments. In addition, many were able to share experiences

and best practices from their home countries with key development partners in Cambodia, build new

networks and develop new ideas for their home countries.

Focus on: MP John Deasy, recently appointed Deputy Spokesperson on Foreign Affairs withSpecial Responsibility for Overseas Development Aid and Chairman of the Development AidSubcommittee.

We have begun to fund Cambodia over the last year. We have a growing aid budget. We concentrate

most of our work in Sub-Saharan Africa. Over the last year, we have gotten involved with the World

Bank funding in the Mekong Private Sector Development Facility. There are a lot of Irish NGOs in

Cambodia in de-mining, labour issues and womens rights. My job effectively is to see if we can add

any value to Cambodia by means of extra funding or whether other expertise could be used in that

area. I have gone on delegations before where you spent four days in office blocs where you just met

government officials, effectively talking to people about things that seem quite abstract, when you are

sitting in a chair in an air-conditioned office. So from the standpoint of going out and meeting rice

farmers and seeing irrigation projects, it has been worthwhile. I think the value of this is considerable

because it gives you in a short space in time a very good feel for what is occurring in the country. I

would not have any hesitation of increasing the cooperation that exists between Ireland and the World

Bank.

MP John Deasyfrom Irelandengaged in alively discussionwith local youthat the KYSDproject.


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Focus on: MP Ruqia Nayel, Member of the Afghan Parliament and Member of the AgriculturalCommission

It is very useful and beneficial for me. With the experience I have gained in this country, I will go back

to parliament and also report to the agricultural committee about agricultural innovation and

development in this country, the work of the World Bank and the CGIAR. I will report about my

experiences in Cambodia when the committee invites our minister of agriculture and also pass on my

experience from this country to the minister to change our lives in agriculture in Afghanistan.

Focus on: MP Gbenga Makanjuola, Member of Parliament and Chairman of the House Committeeon Agriculture and sub-committee chairman on natural resources appropriation committee fromNigeria

With the impressions, the information and knowledge that I have acquired in the last five days here in

Cambodia, especially affecting the relationship with rural dwellers, when I get back to Nigeria, I want to

see how I can intensify efforts so that there is a stronger relationship between rural dwellers and

parliamentarians. I can share my experiences with Cambodian government officials on anti-corruption

legislation. Where there is corruption there can never be progress in development. This is the first time

as an MP that I have the opportunity of monitoring the World Banks projects at the grass roots at the

rural areas because before now, we just read it in the newspapers

MP Gbenga Makanjuolainquiring aboutgovernment programs tofight HIV/AIDS at RokarKoh Health Center inKampong Speu.

Report written by Daniel J. Kroos


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Report on the Parliamentary Field Visit to the Royal Kingdom of Cambodia

ANNEXE I.- LIST OF PARTICIPANTS

November 11-16, 2007

Members of Parliament_(14)

AfghanistanHon. Rugia Nayel,Member of Parliament, Member of the Gender Committee

DRC CongoHon. Serge Amuri,Member of Parliament

FranceHon. Jolle Garriaud-Maylam,Member of Parliament, Member of the Senates Foreign Affairs Committee

Hon. Jean Luc Reitzer,Member of Parliament, Member of the Foreign Affairs Committee

IrelandHon.John Deasy,Member of Parliament, Member of the Foreign Affairs Committee

MexicoHon. Ramon Salas,Member of Parliament, Secretary of the Agrarian Reform Committee

Nigeria

Hon. Gbenga Makanjuola,Member of Parliament, Chairman of the House Committee on Agriculture

NorwayHon. Finn Martin Villarsnes,Member of Parliament, member of the Foreign Affairs Committee

PortugalHon. Miguel Ginestal,Member of Parliament, Chairman of the Committee on Economic Affairs, Innovation and Regional Development,sub Commission for Agriculture, Rural Development and Fishing

Rwanda

Hon. Anastase Nzirasanabo,Member of Parliament, Member of the Senate Committee of Economics and Finance

SwitzerlandHon. Simon Epiney,Member of Parliament, Member of the Finance Committee and Committee on Environment and Energy


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ThailandHon.Tuan Untachai,Member of Parliament

United KingdomHon Quentin Davies, Member of Parliament, Member of the International Development Committee of the Houseof Commons

Other participants

Nisha Agrawal, Country Manager for Cambodia, World BankJean-Christophe Bas, Manager, Parliamentary Relations, World BankNay Bathily, Parliamentary Relations, World BankSaroeun Bou, Communication, World Bank, CambodiaMia Hyun, Poverty Specialist, World Bank, CambodiaAmara Kiev, World Bank, CambodiaFlorencia Tateossian, Communication, CGIARTeemour Diop, Film DirectorDaniel Kroos, Rapporteur for the visit


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ANNEXE II.- PROGRAM FOR THE FIELD VISITNovember 11 -16, 2007

Time Activity Venue CGIAR5

& WB participation

Sunday November 11, 2007 (in Siem Reap Province)

-- Check into Victoria Angkor Resort Hotel Victoria AngkorResort and Spa Hotel

4:30 _7:00p.m.

Opening session- General BriefingDuring this session delegates will getacquainted with the goal of the visit as well asits expected results and achievements.

Welcome and Overview of PNoWB, World

Bank Program, CARDI, CGIAR work inCambodia (CIAT6, IRRI7, IWMI8, WorldFish).

Victoria AngkorResort and Spa Hotel

Dr. Sarom CARDI,Blake Ratner, (WorldFish-IWMI)Tin Maun Aye (CIAT)Arjun Goswami (ADB)Nisha Agrawal (WB)Jean-Christophe Bas (WB)

Quentin Davies (Delegationleader)

7:00-9:00p.m.

Opening dinner w, co-hosted by the CGIAR,PNoWB9 and World Bank.

Grand Hotel dAngkor(Apsara Terrace)

Dr Sarom CARDIBlake Ratner, (WorldFish-IWMI)Tin Maun Aye (CIAT)Nisha Agrawal, WB Team.

Monday November 12, 2007

7:30 9:00a.m.

Travel from Victoria Hotel to Daun PengCommune by a bus with microphone (30-seatbus)

1. Preap Visarto, CARDI2. Mr. Teav Pochun, Dir. Srp.PDA Authority Official (Head ofDistrict)3. Ms. Lam Sony, CD Facilitator(Plan International) in SRP

9:00 11:00a.m.

Visit IRRI PROVIDE (Poverty-ReductionOptions Validated In Drought Environments)site.

Daun PengCommune, AngkorChum District,Siem Reap Province.

1. Dr. Preap Visarto2. Mr. Teav Pochum3. Ms. Lam Sony

11:00 _11:30a.m.

Travel to SRP City for lunch Dr. Preap Visarto, CARDIMr. Teav Pochum, Dir Srp PDAAuthority Official (Head of District)

12:00 _1:00p.m.

Lunch Srah SrongRestaurant nearAngkor Thom

Arranged by Mr. Preap Visartoand Mr. Teav Pochum

1:00 _1:30p.m.

Return/Travel to Siem Reap City

1:30 -2:30p.m.

Rice Mill visit Siemp Reap city Mr. Teav Pochum, Dir Srp PDAAuthority Official (Head of District)

5

CGIAR - Consultative Group on International Agriculture Research6CIAT - International Center for Tropical Agriculture

7IRRI - International Rice Research Institute

8IWMI - International Water Management Institute

9PNoWB- Parliamentary Network on the World Bank


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2:30 3:30p.m.

Collect luggage from Victoria Hotel and departfor Siem Reap Airport

3:30 4:00p.m.

Travel to Siem Reap Airport and depart for PPby flight: FT995, 4:35 - 5:25 p.m.

5:25p.m.-

Arrive in PP by flight: FT995. The NA Officialswill receive the delegation at the VIP ArrivalExit.

6:30p.m.

Check into Raffles Hotel Le Royal. Phnom Penh

Tuesday November 13, 2007

7:00 8:30a.m.

Travel from Raffles Hotel Le Royal toKampong Speu

8:30a.m-11:00a.m.

IWMI site in Kampong Speu: OTrangirrigation system

Kampong Speu L.R. Perera (IWMI)

12:00 _1:30p.m.

Lunch

1:30 2:45p.m.

Visit CelAgrid to see some of CIATs activities- use of cassava for pig feeding

Prah Theat Village,Kandal SteungDistrict, KandalProvince

Reinhardt Howeler (CIAT)Dr. Kyieu Borin is the Director ofCelAgrid.

3:00 4:00p.m.

Outline of CIAT activities at CARDI and inother provinces. Presentation (45min) duringcoffee and then 20 to 30 min field visit

CARDI StationN. Road 3, PP.

Reinhardt Howeler (CIAT)Ung Sopheap (CARDI)

4:00 _5:00p.m.

Visit Research facilities and Wrap-updiscussion on CGIAR sites visited and otherprojects in Cambodia

CARDI facilities Dr. Sarom, CARDIReinhardt Howeler (CIAT)L.R. Perera (IWMI)Blake Ratner, (WorldFish-IWMI)Dr. Preap Visarto, CARDI

5:00 _5:30p.m.

Travel from CARDI Station to Raffles Hotel LeRoyal

6:40

p.m.

Pick up from Raffles Hotel Le Royal to

Himawari Hotel by Bus.

7:00 _9:00p.m.

Dinner with Ambassadors and 20 Donors Himawari Hotel(Open Terrace)

Wednesday November 14, 2007

7:00 _8:30a.m.

- Pick up from Raffles Hotel Le Royal andTravel to Kampong Speu Province bybus.

- Briefing by Nisha Agrawal, World BankCountry Manager, Cambodia and Staff ofWorld Bank-financed project during thebus ride.

Nisha, Saroeun, Simeth, Toomas,Nareth, Mudita


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8:30 9:30a.m.

Field Visit to Kampong Speu Province:

Health (Health Center)

Rokar KohCommune,Kong Pisei District,Kampong Speu.

WB team: Nisha, Saroeun,Toomas, Nareth,

9:30 10:30a.m.

Decentralization & Deconcentration(Communce Councils and RILGP10)

Rokar KohCommune,Kong Pisei District,Kampong Speu

WB team: Nisha, Saroeun, Mudita

10:30 12:00noon

Travel from Kampong Speu to Phnom Penhby bus.

12:00 1:45p.m.

Working lunch with World Bank staff WB office (MR1) All WB staff & few IFC staff.

1:45

2:00p.m.

Travel from the WB office to the National

Assembly (NA) by vans/mini-buses.

2:00 2:30p.m.

Courtesy meeting with Samdech Akkak MahaPonheachakrey Heng Samrin, President ofNational Assembly.

NA

2:30 4:30p.m.

Meeting with Heads of the 9 SpecialCommissions to the NA

NA

4:30 5:30p.m.

Visit Tuol Sleng Genocidal Museum Tuol Sleng Saroeun

7:00 8:30p.m.

Dinner with Royal Government of Cambodia -hosted by the World Bank.Participants: H.E. Keat Chhon, H.E. Dr. AunPorn Moniroth, and other RGC Officials

Raffles Hotel LeRoyal at MainDinning Room (5round table of 8 pts).

Thursday November 15, 2007

7:45 _8:00a.m.

Travel from the hotel to the Senate byvans/minibuses.

8:00 8:45a.m.

Courtesy meeting with Samdech Akkak MahaDhampothisal Chea Sim, Head of the Senate

Senate

9:00 10:45a.m.

Palace Visit Royal Palace

12:15 2:00p.m.

Working lunch with NGOs/Youth StarVolunteers. Please find attached the list ofinvitees.

Hagar Restaurant

2:00 _

3:00p.m.

Travel from Hagar Restaurant to Prek Tauch

Secondary School, Neak Loeung, KandalProvince

10RILGP - Rural Investment and Local Governance Project-financed by the World Bank.


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3:00 4:00p.m.

Visit Prek Tauch Secondary school supportedby Education project.

Neak Loeung, KandalProvince

4:00 _4:15p.m.

Travel from school to Hun Sen Kg. PhnomSecondary School, Neak Loeung, KandalProvince.


4:15 5:00p.m.

Visit the school supported by KYSD --KhmerYouth and Social Development Organization(Gender, Youth and Education), which hasbeen financed by Small Grant.


5:00 5:45p.m.

Travel from Neak Loeung to Raffles Hotel LeRoyal

6:45 7:00p.m.

Travel from the hotel to Malis Restaurant

7:00

8:30p.m.

Dinner with Private Sector Group Malis Restaurant Nisha, Stephane, Huot and

James, tbc.

Friday November 16, 2007

7:30 8:30a.m.

Pick up from the hotel and travel to ChroyChangvar, Phnom Penh by bus.

8:30 9:30a.m.

Visit Phnom Penh Water Utility Project inChroy Changvar, Phnom Penh

Phnom Penh

9:30

11:00a.m.

Travel from Chroy Changvar to Samaki

Community by bus and visit beneficiaries(poor community) of PP Water Utility Projectin Russeikeo District

Phnom Penh

11:00 12:30noon.

Visit Digital Divide Data (DDD) GrassrootsProjectThis is IFC investment in a social enterprise.

Phnom Penh

12:30 2:00p.m.

Working lunch with PNoWB Cambodiamembers

WB Office (MR1)

2:00 3:30p.m.

Debriefing of the delegation WB Office (MR1)

5:00 6:00p.m.

Press Conference Raffles Hotel LeRoyal (EmpressRoom)

6:40p.m.

Depart from Raffles Hotel Le Royal to PPairport(some of the delegation members)

Saturday November 17, 2007

Depart from Raffles Hotel Le Royal to PP

airport(some of the delegation members) anddeparting from the airport by different flights.


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ANNEX III.- PARLIAMENTARIANS IN THE FIELD

VISIT PROGRAM FOCUSES ON THE PRSP (*)

Since 2001, the Parliamentary Network on the World Bank and the Banks

External Affairs Vice-Presidency has organized field visits for MPs to

visit development projects in more than 15 different countries. Over 150

parliamentarians from 100 countries have participated in the visits. The

Parliamentarians in the Field program is made possible by funding from

the Finnish government. A key objective of the field visit program is to

offer participating MPs an up-close look at the Poverty Reduction Strategy

process.

During the field visits, visiting parliamentarians meet with members of

government, local MPs, staff from the World Bank and other donoragencies, as well as civil society representatives to review the

participatory process that led t

cambodia field visit report final2

Documents