Follow Up - Progress to date: Cambodia

Cambodia was one of the first three pilot countries under the revamped Integrated Framework for Trade-related Technical Assistance. Led by the World Bank, a team of national and international consultants prepared a Diagnostic Trade Integration Study (DTIS) during the fall of 2001. The Terms of Reference for this study was developed under the guidance of the government. The DTIS identified obstacles and institutional development needs necessary to promote Cambodia’s integration into the global economy. The study was discussed at a national workshop (report - PDF 82k) held in Phnom Penh in November 2001. Based on the discussions at the workshop, in which the major public and private stakeholders participated, a program of technical assistance was formulated. The Cambodia government assumed a very active role during the IF process.

The main areas in which Cambodia requested technical assistance included:

• Macroeconomic policy

• Trade policy (WTO accession, institutional capacity, customs and transport)

• Sectoral activities (agriculture, handicrafts, fisheries, garments, tourism and labor services.

The Integrated Framework exercise catalyzed donor support for trade related technical assistance in response to the requests of the Cambodian government.

In April 2003, the IF focal point presented a list of recently completed and ongoing Trade Related Capacity Building activities. Twelve bilateral donors provided Trade Related Technical Assistance, for example:

• Australia (SPS Capacity Building),

• European Commission (Trade Sector Development and WTO Accession),

• Canada (Judicial Reform),

• Switzerland (Sub-regional Trade Promotion)

• Seven multilateral agencies were involved in the trade area. The IMF focused on Trade Facilitation and ITC assisted in the creation of a Trade Support Network and the development of the Essential Oils and Spice Industry.

The World Bank is active in a number of areas, for example:

• Private Sector Support

• Development of the Legal Framework

• Support for WTO Accession

• The Mekong Project Development Facility

• Finance for small and medium size enterprises

• Private Sector Development Investment Credit

Cambodia’s National Poverty Reduction Strategy (2002) squarely addresses the need to increase firm-level productivity to enhance Cambodia’s competitiveness and highlights the role of trade in accelerating economic growth, drawing to a large extent on the findings of the DTIS. The basic premise of the strategy was the notion that an expansion and diversification of trade in Cambodia will help the country meet its poverty reduction objectives.

Although the function of IF facilitator was not yet formally established during the Cambodia IF process, Japan took de facto this role through its support for the IF process.

Page Last Updated On July 12, 2005