Statement from Peter Stephens, Communications Manager for the East Asia and Pacific Region, August 4, 2004

to move and sell logs (some of which may have been illegally cut), warned the Government of a number of serious risks to their plan,

and also proposed measures for ensuring that the revenue from any timber sales were used in a transparent manner to benefit the poor.

"The forestry sector in Cambodia is badly affected by corruption and, unless properly managed, will not only fail to deliver adequate resources to the people of the country but could actually make the poor even worse off. It is for this reason that the World Bank remains involved in the forestry sector, though we know that there are no quick, perfect or easy solutions to the problems.

"But this should not be taken as claiming that we have all or even most of the answers, nor that we are confident of success. The problems afflicting the forestry sector in Cambodia are deep-seated, and go back to the military and civil conflict of the past 30 years. They will not be fixed without a concerted effort by the Government, including not just forestry and agriculture and conservation agencies, but also the Ministry of Finance and the military.

"Further, the search for meaningful progress, is what has been motivating the Bank to continue seeking ways to bring order, transparency and commercial discipline to the forest concession system, at the same time as we are supporting other initiatives such as community forestry. This approach has seen the number of concessionaires reduced from 25 to the single digits; and the area under concession will in the end be reduced from its original 6m hectares to less than 2.4 million hectares.

"We have emphasized disclosure and transparency of information in all our work in Cambodia, especially in forestry. We are pushing ahead to improve the amount and quality of information that the Government makes available to ordinary people, so that they can make more informed decisions on matters affecting their land and their lives. We are also looking to the Government to take a stronger hand in managing the sector in ways that reduce the incidence of corruption and increase the benefits to and protection of local people.

"We look forward to working with the Government, other donors and agencies, and non-government organizations, in pursuit of these goals."

Peter L. Stephens
World Bank Singapore Office