Keynote Remarks
By
Samdech Akka Moha Sena Padei Techo Hun Sen
Prime Minister of the Kingdom of Cambodia
At the
20th Anniversary Celebration of the Cambodia-ADB Partnership
Peace Building, Phnom Penh, 21st November 2012

1. Today, it is my great honor and pleasure to participate in this “20th
Anniversary Celebration of the Cambodia-Asian Development
Bank Partnership’’ with all Excellencies, ladies and gentlemen as well as
national and international guests. Today’s event is another new historic
moment to be held in Peace Building, which is the pride of our nation. On
this auspicious occasion, on behalf of the Royal Government and People
of Cambodia, I would like to join Deputy Prime Minister Keat Chhon in
extending our warm welcome to H.E. Haruhiko Kuroda, President of the
Asian Development Bank. His presence today clearly reflects the ADB’s
high attention to firm friendship and close cooperation between the ADB
and the Royal Government of Cambodia.
2. Taking this opportunity, I also would like to express our deep gratitude
to the Management, Board of Directors, and staff of the ADB for providing
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twenty years of unwavering support to Cambodia in many sectors and all
aspects. Allow me to recall some of the ADB’s colleagues with whom we
have had excellent working relationships such as H.E. Mitsuo Sato, H.E.
Tadao Chino, H.E. Haruhiko Kuroda, H.E. Stephen Groff, H.E. Lawrence
Greenwood, H.E. Jin Liqun, H.E. Rajat M. Nag, H.E. Noritada Morita, H.E.
Arjun Tappan, H.E. Kunio Senga, H.E. Suos Someth, H.E. Urooj Malik,
H.E. Shyam Bajpai, H.E. Arjun Goswami, H.E. Putu M. Kamayana, and
H.E. Eric Sidgwick.
3. Today’s event is being held at a time when Cambodia prepares for the
successful completion of its responsibilities as the Chair of ASEAN. Such
important gathering comes at an opportune time when Cambodia
continues to enjoy the full peace, stability, security and cooperation. On
the other hand, this event is convened in the aftermath of the global
economic and financial crisis; the difficult situation that required the
protection of its sovereignty and territory; the worst flood disaster in the
recent past, and it is also taking place while Cambodia steps into the track
of inclusive and robust economic growth with equitable development.
4. Indeed, Cambodia has become an equal member in other organizations
in the sub-region, region, intra-region and globe over the past twenty
years. Currently, Cambodia is moving on its right track towards inclusive
and sustained economic growth which is for the maximum benefit of all
Cambodians. In addition, with unflinching commitment and great efforts of
the Royal Government and people of Cambodia as well as valuable
contributions of development partners, Cambodia has experienced significant
developments in all political, economic, social and cultural spheres.
5. Taking this opportunity, allow me to highlight a number of momentous
achievements made by the Royal Government so far during the last two
decades:
i) Peace, political stability, security and social order which lay the
foundation for the pluralist democracy have been built. The free and
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fair commune elections were held 3 times in 2002, 2007 and 2012. The
General Elections were held 4 times in 1993, 1998, 2003 and 2008.
ii) Respect for human rights and dignity, including political, economic and
social rights, has been enhanced. Decentralization and de-concentration
reform, aimed at strengthening democracy and efficiency of local
public services, have been initiated and implemented.
iii) Good governance through state reforms, especially civil service
reform, public financial management reform, decentralization and deconcentration reform, legal and judicial reform and other relevant
reforms, have been strengthened to ensure that all government
activities are increasingly more transparent, accountable, predictable,
effective and efficient.
iv) Steady macroeconomic stability and considerable economic growth of
9% per year have been achieved for nearly a decade before the very
difficult global financial crisis. In some years, Cambodia was
experiencing double digit economic growth while keeping in check
low inflation and a stable exchange rate. The Royal Government also
achieved the poverty reduction rate of over 1% per year.
Competitiveness of the national economy has been strengthened by
improving agricultural productivity, building a rural economic base,
and expanding the industrial sector, especially furthering the garment
sector’s dynamics, and diversifying the industrial sector. At the same
time, the service sector has also been expanded rapidly.
Consequently, these have created jobs and skills training for
hundreds of thousands of youth.
v) Through the “Public Financial Management Reform Program”,
budget credibility has been enhanced as reflected on substantial
growth in government revenues and the rationalization of
expenditures, especially the increases in the current budget surplus.
This contributes to expanding investment in the economic and social
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infrastructures aimed at enhancing public service and poverty
reduction.
vi) The rehabilitation and construction of the major national road
networks have almost been completed and the attention is now
being paid to accelerate improvement of provincial and rural roads.
The transport services including shipping services, commodity
deliveries, multi-modal transport services, and good supplies and
logistics have played an active and effective role in sustainable
economic growth. The infrastructure, namely road, irrigation, energy
and telecommunication has been significantly improved.
vii) The institutional and human resource capacity has been
strengthened by focusing on the development of the education and
health sector. The considerable progress has also been made in
social sector. In the education sector, school enrolment rates have
increased, and drop-out and repetition rates have declined. In the
health sector, infant and child mortality rates, and HIV/AIDS infection
rates have also fallen.
viii)The Private sector, as the “true engine of economic growth”,
has made a very impressive contribution to socio-economic
development in both the economic and financial sector. To enhance
the involvement of private sector, Financial Sector Development
Strategy (FSDS 2006-2015) and FSDS 2011-2020 have been
formulated and implemented. Meanwhile, the progress of preparation
and implementation of other principles and legal frameworks, which
are required from WTO, is at a remarkable level.
ix) Partnership with all relevant stakeholders, particularly official
development partners including ADB, private sector and civil society
has been strengthened by putting in place a range of effective
mechanisms, allowing for gathering of both financial resources and
knowledge and for coordination of financial assistance and investment.
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6. Based on the steady macro-economic stability and high average economic
growth, the Gross Domestic Product (GDP) per capita has increased to
over 4 times from approximately 200 USD in 1992 to nearly 1,000 USD in
2012. With this current growth trend, Cambodia expects that the GDP per
capita will increase to over 1,000 in 2013. The poverty rate has declined
from 50% in 1992 to be at around 20% in 2012, and this rate is
approximately expected to be at 19% in 2013. Consequently, Cambodia is
assessed as the 15th country that achieves high economic growth in the
world in the last 10 years; the 5th country among the world’s developing
countries that has significant achievements towards meeting its
Millennium Development Goals (MDG); and the 1st country in Asia-Pacific
that makes substantial progress in improving social indicators.
7. Above major achievements are resulted from:
i) The successful implementation of “Win-Win Policy”, that
dismantled the political and military organizations of the Khmer
Rouge, has begot the integration of former Khmer Rouge soldiers
into the mainstream of the Cambodian society in 1998. Since then,
the peace, political stability, security and social order have been
strengthened and this establishes the prerequisites for any socioeconomic development.
ii) “Triangle Strategy” was formulated and implemented by focusing
on (1) building peace, restoring stability and maintaining security for
the nation and the people; (2) integration of Cambodia into the
region and normalization of relationships with the international
community; and (3) promoting economic and social development.
Through the success in implementing “Triangle Strategy”, ever
since 1999, Cambodian people have experienced full peace, political
stability, legal and social order, democracy, respect for human
rights, and economic stability.
iii) Socio-Economic Development Plan (SEDP-I, 1996-2000) and
(SEDP-II, 2001-2005) was formulated and implemented by
aiming at sustained economic growth and poverty reduction. Under
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this development plan framework, two significant policy development
initiatives have been formulated and put into practice by the Royal
Government namely: (1) the “Cambodian Millennium Development
Goals” with the aim of poverty reduction and human development,
(2) “National Poverty Reduction Strategy”.
iv) “Rectangular Strategy, Phase I” for Growth, Employment,
Equity and Efficiency following the “Triangle Strategy” is a
strategy of the Royal Government in the Second Legislature of the
National Assembly. Following the directions in the conceptual
framework of “Rectangular Strategy, Phase I”, the third fiveyear national development plan, “National Strategic Development
Plan 2006-2010” has been formulated and implemented.
v) “Rectangular Strategy, Phase II”, as the fundamentals of the
socio-economic policy agenda of the Royal Government’s policy in
the fourth Legislature of the National Assembly (2008-2013), was
formulated and implemented. The “Rectangular Strategy, Phase
II” was formulated and adopted based on practical experiences in
the implementation in the Third Legislature of the Royal Government;
people’s aspirations and willingness; national and international
context; and prioritization of the Royal Government’s key sectors.
Under this strategic framework, the “National Strategic
Development Plan Update 2009-2013” has been prepared and
implemented.
8- As Deputy Prime Minister Keat Chhon, Minister of Economy and
Finance mentioned earlier on the notable achievements of the 20-year
cooperation between the Royal Government of Cambodia and ADB,
Cambodia has received a huge amount of ADB’s financial assistance with
a total of nearly USD 2 billion for the development of the Government’s
priority sectors. On behalf of the Royal Government of Cambodia, I
gratefully acknowledge that our progress since 1992 has been made
possible largely by active support from ADB and our other development
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partners. Through our past cooperation experience, we value ADB as a
competent, experienced and successful development partner at the stage
of Cambodia’s peace-building, restoration, and reconstruction. I have
noticed that there are a few key factors that characterize the successful and
well-grounded Cambodia-ADB partnership:
1- ADB respects Cambodia’s full ownership and responsibility to
develop and implement its own priorities and reform programs
responsive to long-term interests of Cambodian people. ADB
successfully aligned its own strategies and financial assistance
programs to be consistent with the priorities and country
development strategy of the Royal Government. Indeed, sustainable
economic development requires joint efforts between the
Government and the development partners, but the Government
must be the owner of all reform sites. I wish to confirm that ADB
financial assistance provided to date has been in line with the
priorities set out in the Royal Government’s Triangle Strategy,
Rectangular Strategy and National Strategic Development Plan. In
this spirit, I am optimistic that ADB will further strengthen the spirit
of ownership and responsibility of the Royal Government in
preparing and implementing Cambodia’s strategic development in
the next 20 years.
2- ADB is always able to timely and effectively respond to Cambodia’s
recent challenges with quality outcome by providing enormous
concessional loans, grants and technical assistances timely with no
intricate. Obviously, the success of urgently addressing the severe
flood disaster in 2000 and 2011 was stemmed from the firm support
of the ADB through providing highly concessional loans timely for the
rehabilitation of the flood-damaged infrastructure. ADB provided loan
funds of nearly USD 56 million for the “Flood Emergency Rehabilitation
Project in 2000” and about USD 55 million for the “Flood Damage
Emergency Reconstruction Project in 2011”. Meanwhile, ADB’s timely
response during the severe stage maintained Cambodia’s economic
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stability, and especially the normalcy of livelihoods of the people.
Therefore, this indicates the ADB’s strong cooperation in maintaining
Cambodia’s economic situation and charitable affairs, and it also
demonstrates that ADB is one of our good partners during challenging
periods. On behalf of the Royal Government, People of Cambodia, and
myself, I would like to convey my deep gratitude to ADB for providing
its technical and financial development assistance and humanitarian
aid to help restoration and development after the flood. I am calling
up to further this kind of activity in the future.
3- ADB, as a regional multi-financed institution, always displays common
understanding of challenges and development needs of the region
as well as regional member countries, and accordingly strives to be
responsive to them. The development gap among regional countries
still continues to pose significant challenges to ensuring competitiveness
and to achieving regional integration. To address these constraints,
ADB has provided its vision, set strategies, and initiated long-term
programs to ensure sustainable development for regional countries.
ADB has initiated the Greater Mekong Subregion (GMS) Cooperation
Program for six Mekong countries, including Cambodia. In addition,
ADB has supported the implementation of this program through
further investing in both hard and soft infrastructure. In this sense, I
highly appreciate a prominent role and assistance provided by the
ADB, our trusted partner, in supporting a number of flagship
projects aimed at promoting Cambodia’s internal integration and
connectivity to neighboring countries in the region. This is a key
success for enhancing the investment, socio-economic development,
and poverty reduction.
9. The important occasion to celebrate the 20th anniversary today reminds
me of my vivid memories of the past relations with the ADB’s management.
First, the ADB’s sixth president is H.E. Mitsuo Sato who died in 2002 at the
age of 69. I still remember that, in 1997, while Cambodia’s political
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situation was still in turbulence, H.E. Mitsuo Sato’s courageous visit
here was for opening the Bank’s Cambodia Resident Mission. His visit was
clearly evident that the ADB’s management was highly committed to find
ways to assist Cambodia while it was in high demand of maintaining political
stability as well as country’s restoration, construction and development.
10. Then, the ADB’s seventh president is H.E. Tadao Chino, who died in
2008 at the age of 74. He also visited Cambodia in 2000 while the country
was facing with the flood disaster. During his visit, ADB also provided the
Royal Government with concessional loans totaling of about USD 56
million. Thereafter he facilitated the financing agreement for the “Flood
Emergency Rehabilitation Project in 2000” to be effective just 1 hour after
having the agreement got signed. Cambodian people are indebted to
ADB, a very close partner who stands ready when Cambodia needs its
support, for this charitable deed. In 2002, H.E. Tadao Chino also
attended the first “GMS Summit” which was initiated by Cambodia to be
held in Phnom Penh. At that time he expressed his willingness and strong
commitment to support the development of Cambodia. Taking this
opportunity, I would like to convey my condolence for the passing of both
H.E. Mitsuo Sato and H.E. Tadao Chino, and I also would like to
gratefully and sincerely thank for their contributions to Cambodia.
11. During the mandate of H.E. Haruhiko Kuroda, since 2004, it can be
seen clearly that the collaboration between the Royal Government of
Cambodia and ADB has considerably improved. I am delighted to have
closely worked with H.E. Haruhiko Kuroda during his many visits to
Cambodia. I also remember that in February 2008, I and H.E. Haruhiko
Kuroda were on the same helicopter to preside over the Grounding
Construction Ceremony of rehabilitation of the railway under the GMS
Rehabilitation of the Railway in Cambodia Project. This project is financed
by ADB in the amount of about USD 84 million along with the co-financing
from other development partners. May I take this opportunity to request
H.E. Haruhiko Kuroda to enhance the project progress and its
completion so that Cambodian people will be sooner beneficial from this
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project. In late March and early April of this year, H.E. Haruhiko Kuroda
joined the “16th Meeting of ASEAN Finance Ministers” and other important
regional meetings in Cambodia, and also provided Cambodia with a
concessional loan of USD 55 million to finance the “Flood Damage
Emergency Reconstruction Project in 2011”.
12. On this occasion, I would like to inform the gathering that with the
ADB’s support, the Royal Government of Cambodia, assisted by the
Supreme National Economic Council (SNEC), a leading institution, is now
preparing the strategic document namely “Cambodia Vision 2030” with
the aim at propelling our nation from a “Low Income Status” to a “Lower
Middle Income Country” in the next few years and a “Upper Middle
Income Country” in 2030. Thereafter, Cambodia is aiming to be a
“Developed Country” in 2050 without being trapped in “Middle Income
Countries” classification. To achieve both objectives, Cambodia needs to
accomplish sustained robust economic growth in an average of over 7%
per year in the long run with equitable distribution.
13. In this regard, I would like to express my profound thanks to the ADB
for providing support in the preparation of the strategic document
“Cambodia Vision 2030”. I would like to further request the Bank to
gather any resources including finance and knowledge from internal ADB
and other external sources to absolutely achieve the Royal Government’s
ambitious goals in 2030 and 2050.
14. I feel confident that the ADB, with H.E. Haruhiko Kuroda as current
president, will continue its support to Cambodia through strengthening
cooperation on priority sectors for Cambodia’s socio-economic development.
In this spirit, I very much appreciate the willingness and full commitment
of ADB to align future activities in Cambodia with the country’s planning
cycle, and I strongly believe Cambodia will Cambodia and the ADB will
achieve another twenty years of strong relation, and close collaboration.
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15. In conclusion, I would like to wish H.E. Haruhiko Kuroda good
health and happiness to lead the Bank more successfully and victoriously,
and I wish the future Cambodia-ADB cooperation be crowned with bright
success. I also would like to wish all Excellencies, ladies, and gentlemen
good health and success in all of your endeavors.
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