Cambodia’s decentralization is relatively unique. Following the UN-brokered elections in 1993, the center reclaimed power from provincial governors – who had previously ruled with a free hand – in order to create a more cohesive system of government. Further decentralization was also prompted by a UN development program in the early 1990s, which evolved into the Seila program, which helped build a system of local planning for development projects.

Reforms adopted in 2001 led to the election of commune councils, which focused on meeting immediate community needs and developing trust between citizens and the government as a first step in decentralization.

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Provincial reforms have been limited, except for the adaptation of parts of the Seila program which helped provide provincial support to communes. A program to build capacity is under way, and the country is planning further reforms. But it is unclear how the system will evolve.

About 20 percent of government spending happens at the provincial and local levels, with communes responsible for only about 2 percent of total public spending. Attention to the way different levels of government interact is a key issue in Cambodia where grant disbursements to provinces are consistently late and so divergent from initial budget amounts that budgets have become virtually meaningless.