Cambodia has used two key sources of financing for the development of Cambodia including the public (national) budget and official development assistance (ODA). The performance trend of the domestic revenue and expenditures including the current expenditure and capital expenditure for the investment shows a gradual increase from 2004 to 2017 as shown in Figure 1 below.
According to budget law, current expenditure absorbed in average around 62% of the total public expenditure from 2004-2017. This result in the shortage of capital expenditure for investing in the development. In this sense, ODA plays critical role in contributing to gaps of the capital expenditure for the development investment. Budget law showed that RGC required ODA for development for around 66.25% in average from 2004-2017 as shown in Figure 2 below.
In this sense, better effective management of ODA is needed to achieve the goals in National Strategic Development Plan (NSDP) 2014-2018, which was operationalized from the Rectangular Strategy Phase III.
Council for the Development of Cambodia/Cambodian Rehabilitation and Development Board (CDC/CRDB), designated as a national aid focal point of Cambodia, developed aid coordination mechanism including Cambodia-Development Partners Forum (CDCF), Government-Donor Coordination Committee (GDCC), and Technical Working Groups (TWGs) to ensure the effective and efficient utilization of development aid (ODA) for contributing to the poverty reduction and economic growth. TWGs are the third layer of aid coordination mechanism to promote the coordination, and dialogue between government and DPs to achieve the sectoral goals as stated in the sectoral plans and NSDP at the sectoral level.
More importantly, CDC/CRDB has developed some tools and frameworks (e.g. result framework, JMIs, PBAs, Cambodia ODA Database, and other aid effectiveness related tools) to support the implementation and to promote better performance management of TWGs. These mechanism and tools were established based on the global commitment in the sequent forums from Monterrey Consensus in 2002, Busan High Level Forum in 2011, and Addis Ababa Action Agenda in 2015. Moreover, the mechanism and tools were compiled and mentioned in the 5-year Development Cooperation and Partnership Strategy (DCPS) 2014-2018 as a benchmark for the monitoring of the development effectiveness including the unfinished agenda of aid effectiveness.
Based on this spirit, TWG-AW was also established for promoting the coordination and dialogue between both parties to ensure that aid is used in a more effective and efficient manner at the sectoral level through the application of the tools and approached established by CDC/CRDB. You can go to the CDC/CRDB website for more information and documents.
TWG-AW related documents including tools, principles, and guideline can be downloaded below.