Development Policy Initiative

Purpose of Project

The Development Policy Initiative (DPI) aims to assist the Royal Government of Cambodia to generate and implement innovative policy options that promote good economic governance for a more equitable, sustainable, diversified and inclusive economy. DPI builds on the successes of the Insights for Action Initiative (2005-2010). DPI’s work priorities and outputs are determined through regular close consultations with the Government and other partners and stakeholders. Development Policy Initiative has two main objectives: 

• Strengthened economic governance for a more equitable, sustainable, diversified and inclusive economy, and for gender equity and human development.
• Capacity development for economic policy analysis and dialogue, and implementation of policy decisions.

Main Activities

DPI in 2010 focuses on three areas:

• Economic Governance: Develop and promote evidence-based economic reform options and policies, contributing to participatory, equitable, and diversified economic growth and improved social protection.
• Extractive Industries: Provide knowledge and capacity development tools for extractive industries, emphasizing effective stakeholder engagement, transparency and responsible development.
• Human Development: Develop the Cambodia Human Development Report 2010, focusing on climate change and providing a comprehensive, non-technical reference and communication tool for a wide audience.

DPI is underpinned by communications aimed at generating, sharing and implementing policy options:

• Knowledge Generation: Conduct research to generate ideas, creative approaches and practical knowledge for the rapid implementation of the Government’s poverty reduction strategy and development plan.
• Knowledge Sharing: Conduct strategic dissemination of research results, supporting policy dialogue aimed at developing common understandings and broad support among stakeholders on priority issues.
• Knowledge Management: Conduct systematic follow-up to facilitate implementation of policy recommendations, focusing on building support and developing capacity to ensure national counterparts and development partners use results for policy and programming.

Key Results

Economic Governance

• DPI has supported the Supreme National Economic Council in organizing the Cambodia Economic Forum since 2006.
• A SWOT Analysis of the Cambodian Economy (2006) found that the oil and gas sector was Cambodia’s biggest opportunity and its biggest potential threat.
• Cambodia Country Competitiveness: Driving Economic Growth and Poverty Reduction (2009) analysed the challenges facing Cambodia’s economic competitiveness, particularly in relation to other ASEAN countries.
• Dialogues on research have been held with the National Assembly, Technical Working Groups, civil society, the private sector and students.
• A quarterly snapshot of economic governance issues, published since March 2009, contributed to debate on the international financial and economic crises.
• Global Economic Downturn: Opportunity or Crisis? (2009), published in collaboration with other UN agencies, was disseminated at national and provincial levels.

Extractive Industries

• Meeting the Challenge of the ‘Resource Curse’: International Experiences in Managing the Risks and Realising the Opportunities of Non-Renewable Resource Revenues (2006) and Review of Development Prospects for the Cambodian Oil and Gas Sectors (2006) focused on ways that revenues from an oil and gas industry could be used to contribute to economic growth and poverty reduction.
• A2008 international conference, Fuelling Poverty Reduction with Oil and Gas Revenues: Comparative Country Experiences focused on technical knowledge and economic, social and environmental implications of petroleum exploitation for developing countries.
• Senior officials involved in developing oil and gas policy joined a study tour to Norway, focusing on competence-building on petroleum funds and including discussion of the Extractive Industries Transparency Initiative.
• Members of the National Assembly and Senate were briefed twice on international oil and gas developments and their implications for Cambodia.
• Ensuring a Resource Blessing, edited by Macartan Humphreys, Jeffrey D. Sachs and Nobel Prize-winning economist Joseph E. Stiglitz, was published in Khmer in 2008.
• An extractive industries web page facilitates sharing of information, innovative ideas and practical knowledge. www.un.org.kh/undp/Extractive-industries
• Solution Exchange for Extractive Industries, an email-based community of practice, links Cambodians with international knowledge and experience.
• An international mining conference, Staking a Claim for Cambodia, was held in partnership with the Ministry of Industry, Mines and Energy in May 2010, with H. E. Prime Minister Hun Sen presiding. The conference opened doors for new private sector investors to bring international best practices to Cambodia.

Human Development

• Raising Rural Incomes in Cambodia (2007) and Land and Human Development in Cambodia (2007) focused on improving family farm incomes and fighting rural poverty.
• The Cambodia Human Development Report 2007: Expanding Choices for Rural People, focusing on agricultural livelihoods, was published in Khmer in 2008 and disseminated by the Ministry of Planning.
• The Cambodia Human Development Report 2010 will address climate change from economic and human development angles to promote awareness, develop national capacity and support coordination.

Background

Insights for Action (IFA) was created and launched in 2005 to undertake critical and timely policy research to catalyze and facilitate policy dialogue on key development issues between the Government, Cambodian society and Cambodia’s development partners. Research focused on providing policy options to accelerate progress toward the Cambodia Millennium Development Goals (CMDGs) and human development in Cambodia. IFA produced a significant amount of high-quality research, including the UNDP Discussion Paper Series, Policy Briefs and the National Human Development Report 2007, all of which helped to increase public awareness and positively influenced Cambodia’s policy dialogue. IFA opened the doors to the type of socio-economic analyses that are needed to meet Cambodia’s 21st century policy challenges. However, the IFA experience also demonstrated that a more focused effort is now required, using best available policy and knowledge management tools and employing more sophisticated collaborations with policy and research partners. As a result, the immediate objective of the Development Policy Initiative is to assist the Government in formulating evidence-based policy options, and developing Cambodia’s economic policy capacity to help advance human development and progress towards achieving the CMDGs within the framework of the country’s National Strategic Development Plan. A second objective is to help develop Cambodia’s capacity for effective policy formulation and implementation.