Status: Although no specific Cambodian targets have been set for this MDG, the following information is available on Overseas Development Assistance (ODA), trade and information and communication technologies. ODA to Cambodia has continued to grow, reaching more than US$1 billion in 2010. If this amount is sustained over the next four years, it will meet the RGC’s requirement for external assistance for public investment to reach National Strategic Development Plan (NSDP) targets. Because of the elaborate coordination framework that has been put in place, with a few exceptions, ODA is generally well aligned and matches sector requirements, and an effective mutual accountability system is operational.

Challenges: Aid is still fragmented and harmonization is lagging. The Royal Government of Cambodia intends to take steps to ensure a much greater net transfer of ODA to poor and vulnerable in rural areas and a generalized move towards sector-wide strategies and harmonized sector-wide support programs. The enormous needs in education, health, agriculture, environmental protection, water and sanitation and demining will require continued high levels of ODA, used with more effectiveness.

Although Cambodia benefits from a regime of tariff free imports by developed economies, it has not been able, like its neighbors to take full advantage of these provisions. A vigorous trade strategy needs to be pursued, in particular by creating favorable conditions for expansion of trade at the sub-national level.

Although the use of mobile phones and the internet have recently increased exponentially (users per 100 populations is 47 for mobile phones and 2.1 for internet), they are still far below regional averages. The RGC is taking measures to ensure a continued rapid expansion in the use of these services and their potential for development.

The Way Forward:
• Additional aid assistance should be provided more to critical sectors with lagging CMDG indicators such as rural development, agriculture and education.
• A trade strategy needs to be pursued which will allow Cambodia to fully benefit from tariff free imports.

Sectoral Alignment of ODA to the NSDP (2009)

Source: CRDB/CDC