Cambodia’s Communes a Proving Ground for Local Poverty Reduction

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Since 1996, when the government started setting up systems aimed at decentralizing decision-making to the provincial and commune levels, people in rural areas of the country have been playing an increasingly important role in their own development.

Through a program funded by the World Bank’s International Development Association, around $US10,000 is being granted to each of more than 800 communes across Cambodia every year for projects that the people in those communities regard as key to escaping poverty and improving their lives.

On a hot and dusty day in February 2007, the commune council of Roka Koh – an hour’s drive from the capital Phnom Penh – have come together to meet the World Bank’s Vice President for East Asia and the Pacific, Jim Adams.

They have prepared their presentation carefully. On the walls of the commune council building, large sheets of white paper show the location of the village and province, their normal livelihood activities, the quota of female councilors, how many people live in the commune --male and female--, the  role and responsibility of the commune councilors, what projects have been undertaken so far, where the money is expected to be spent in the coming year, and the priorities set by the community.

Decentralization and community administration

World Bank East Asia & Pacific Vice President Jim Adams (left) inspects one of the roads that has allowed villagers to access markets, lower transportation costs and get their children to school and the health center.

With some 85 percent of its population of over 13 million living in rural areas and 90 percent of its poor rurally based, Cambodia has had to focus its development efforts on getting money directly to the people and building the capacity of commune administrators to plan, budget and finance local projects.

Through its Rural Investment and Local Governance Project, the Bank is supporting that agenda with a special focus on rural infrastructure and rural development. In partnership with the UN Development Program and the aid arms of UK and Sweden, the project is also working with national, provincial and commune-level administrators to make decentralization work on the ground.

At Roka Koh, Jim Adams asked the commune council why it has spent most of its money on building roads over the past three years.

It’s clear, they explained: “Without roads, we can’t get our produce to markets, outside traders can’t access the consumers in the area and the cost of transportation becomes very expensive. Also,  in the rainy season we can’t get our kids to school or to the health center, which is our first priority." The nearest primary and secondary schools are 3 km. and 7 km. away, respectively.

But now that most of the roads have been built, the next priority is a water reservoir to improve the fair distribution of water to all villagers.

Openness and transparency

Adams also wanted to know how the council ensures openness in contract bidding procedures and transparency in decision-making.

(Improving governance is at the center of the Bank’s engagement strategy with Cambodia – so much so that in the months before Adams’s visit, three major World Bank projects in the country were suspended after irregularities were found in procurement processes, causing an intense controversy that aired prominently in the national media.)

Council members explained that they are held to account for their decisions very rigorously, and will not get their communities' vote if they are perceived to be doing a poor job.

On a walk through the commune, council members showed Adams prominently placed signs that list how much money for recent projects has come from outside donors, how much local people have contributed, and the name of the contractor who built the new roads.

Listing the contractor’s name has proven to be a good way of encouraging quality work, the councilors explained.

Gradually, Cambodia is recovering from its long, war-ravaged past. But when peace was finally established in 1991, the economy was ruined, the infrastructure was badly damaged, social institutions were in disarray and human capacity was extremely constrained. As a further legacy of 30 years of war, a staggering 20 percent of households are headed by women and these are disproportionately poor.

Bringing decision-making and funds directly to the people in rural areas is proving a very powerful way to fight poverty.