The Cambodia Demand for Good Governance (DFGG) Project - An Updated Storyline

Transcription

1 The Cambodia Demand for Good Governance (DFGG) Project - An Updated Storyline The proposed Demand for Good Governance (DFGG) project in Cambodia may arguably be the World Bank s first project devoted exclusively to developing demand side approaches to tackle governance issues, strengthening and linking the work of both state and non-state institutions 1. Given this novelty as well as the challenging governance environment in which it is being developed, project preparation has involved continuous learning and innovation. As can be expected, the project design is gradually evolving from the initial project concept note (PCN) that was developed in June The purpose of this note is to build on that PCN and provide an update about what the DFGG project is aiming to do, what ground realities and lessons have informed the design, and what are likely to be the project s core components. A. Genesis of the Project The Rationale for DFGG The Cambodian context today reflects a clear case of severe problems of governance. 2 Tackling these is not an easy task. There needs to be multiple strategies for engagement that go beyond traditional supply side initiatives targeting only public financial management, civil service reform and so on. Among these strategies has to be the strengthening of constituencies outside the state executive such as civil society, the media, parliament, local communities and the private sector. These constituencies, as highlighted in the recent Governance and Anti-Corruption (GAC) Strategy of the World Bank, create a demand pressure for better governance and can be critical allies and catalysts for reform in difficult governance environments. 3 The Royal Government of Cambodia (RGC) has itself put good governance at the heart of its reform strategies (such as the Rectangular Strategy , the Governance Action Plan, and the Decentralization and De-concentration policy). And it has also recognized the key role of civil society, the private sector and other development partners in its efforts to promote better governance. Against this backdrop, the DFGG project s proposed development objective is to promote good governance by building the capacities of institutions, and supporting programs and coalitions that promote, mediate, respond to or monitor demand for good governance. While the basic objective is straightforward, the challenge is of course how to achieve it. In Cambodia, knowledge and capacities of the proposed actors in undertaking a social accountability role is quite limited. Moreover, there is little history of partnerships between state and non-state actors in governance reform. 4 Outlining the operational implications of supporting the demand for good governance has therefore been the main focus of the intensive project preparation process so far. The rest of this note attempts to shed light on the emerging trajectory for the operation. B. What is DFGG Defining what we are trying to do Perhaps the starting point in developing a program to support DFGG is to be clear upfront about what the term means 5. Conceptually, DFGG refers to the extent and ability of citizens, civil society organizations, and other non-state actors to hold the state accountable and to make it responsive to their needs. And in return, this DFGG enhances the capacity of the state to become transparent, accountable, and participatory in order to respond to these demands. Given this conceptualization of DFGG, operationally, the proposed project approaches strengthening of DFGG as a process, which has four key elements (figure-1): 1

2 1. Promotion of Demand The ability of citizens, civil society, and other non-state actors to demand better governance depends on their access to information, and the degree to which they can act effectively on this information. Thus, DFGG depends on (a) disclosure of information - the level of transparency of the government (regarding budgets, expenditures, programs, etc.), (b) demystification of information - strengthening the level of awareness and understanding of citizens (on laws, rights, budgets, policies, etc.), and (c) dissemination of information spreading information (related to governance issues, processes, finances, laws, etc) to the ordinary public. In promoting demand, the three Ds should be followed by a C (collective action) mobilizing broader action and advocacy around this information. Accordingly, initiatives such as freedom of information, awareness campaigns, rights education, and media programs that promote demand are the first component of DFGG project support. 2. Mediation of Demand While mobilizing demand through advocacy and information dissemination are important, these pressures only become effective through mediation and institutionalized feedback to the state. Thus, strengthening DFGG also involves (a) creation and strengthening of avenues for feedback of citizens and civil society to public officials, (b) encouraging consultation of these actors in decision making and public actions of executive agencies, as well as (c) formal and informal mechanisms for dispute resolution through initiatives such as interface meetings between citizens and public officials, grievance redress mechanisms, and ombudsman s offices. 3. Response to Demand After mediation comes response, without which demand alone would remain powerless and non-credible. Thus, institutionalizing DFGG involves developing programs and initiatives within the executive that respond to demand either through (a) innovations in service delivery, (b) response based performance incentives, or (c) participatory action planning. 4. Monitoring to Inform Demand Finally, the last element of increasing DFGG is the process of monitoring and oversight of the public sector by non-executive actors such as the parliament, the media, and civil society. This could take the form of (a) participatory monitoring (using citizen feedback surveys of government performance, social audits, media investigations, etc.), (b) independent budget and policy analysis, and (c) formal oversight mechanisms (parliamentary committees, vigilance commissions, etc.). These generate key information for the executive, civil society, and ordinary citizens that feeds back into the process of promoting DFGG thus completing the cycle. Figure-1: Four Core Elements of DFGG MONITOR - Participatory monitoring - Indept. budget analysis - Formal oversight RESPOND - Service delivery innovations - Performance rewards - Participatory action plans DFGG MEDIATE - Feedback - Consultation - Dispute resolution PROMOTE - Disclosure, Demystification and Dissemination - Collective Action 2

3 Based on the above operational interpretation of what DFGG entails, the project aims to strengthen DFGG in Cambodia by providing support to institutions and programs that perform one (or more 6 ) of the above functions promotion, mediation, response, or monitoring for DFGG. It is important to note here that the above definition of DFGG has a key implication it means that the institutions that strengthen DFGG can be both government institutions and non-state ones. A state-run broadcasting corporation involved with disseminating information about public programs and their budgets, and providing feedback of citizens to public officials is as much a demand side actor as civil society and the private media promoting demand. Likewise, ombudsman offices and vigilance commissions, or ministries running programs for legal and rights awareness education are also demand side actors. Moreover, the response function of DFGG is something that is most often only provided through the state executive. What matters for strengthening DFGG under this project is therefore what an institution does rather than where it is situated. C. Principles behind Project Design Determining to whom and how support would be given The support for programs that promote, mediate, respond to or monitor DFGG could happen in many ways. One could, for instance, fund aggressive programs for investigating and punishing corrupt public officials. Or, multiple small initiatives for monitoring local service delivery could be financed. Alternatively, a brand new national institution dedicated to promoting transparency and curbing corruption could be established. However, the constraints of the challenging governance climate that the project faces in Cambodia means the approach for developing a project that is essentially charting new territory in the country s sociopolitical landscape should be gradual, realistic, and strategic. Moreover, the project should focus on sustainability in the long run rather than creating short term flashes that fizzle out after the project ends. In this regard promoting ownership and credibility of the proposed initiatives would be critical. Taking on board the lessons of international experience of working on governance and anti-corruption in difficult environments as captured in the Bank s Governance Strategy, and other country assistance frameworks 7 the project s design was therefore shaped by the following principles and practical considerations: The focus would be on building institutional capacity As global experience shows, governance reform is a long-term process and the sustainability of these reforms ultimately depends on credible and effective institutions. Innovative programs and sub-projects are effective for shortterm mobilization of demand, but at the end of the project cycle what survive are durable institutions. Thus, the core philosophy of the DFGG project is to offer the bulk of the support for institutional development skill building, organizational management, financial sustainability, result orientation, client focus, performance incentives, etc. 8 Both state and non-state institution would be supported Based on the logic provided above, the project would provide support to both state and non-state institutions that are providing a promotion, mediation, response, or monitoring function in a DFGG context. 9 The state actors could be in the legislature (parliament), judiciary (courts or alternative dispute resolution bodies), executive (ministries and local governments) or formal oversight bodies (audit agencies, vigilance commissions, or ombudsman offices). Non-state actors would include NGOs, CBOs, the private sector (including trade unions) and independent media working on similar themes. Again, what essentially matters is the mandate of the institution rather than where it is situated. The idea would then be to develop linkages between these state and non-state agencies that could forge partnerships lasting beyond the life of the project. The focus would be on existing institutions Experience suggests that for sustainability and ownership it is imperative to build and strengthen a country s own institutions and initiatives 3

4 rather than impose reforms from the outside. This also avoids unnecessary set-up costs. The pragmatic decision of the project is hence to identify and work only with existing Cambodian institutions both on the state and non-state side. Build on promising governance innovations A key strategic choice was made to build upon existing governance innovations that have demonstrated some success in Cambodia already. This approach has several merits. Firstly, it helps to strengthen these innovations and facilitate their success and scaling up. Secondly, it signals the Bank s commitment and support for DFGG innovations that Cambodian institutions have themselves introduced. Finally, if the strategy of betting on winners is successful, the demonstration effect of these institutions could over time create a ripple effect for further reform in other more challenging sectors, agencies and areas within the Cambodian context. Engage with committed leaderships - Further, given that good institutions are often built upon the work of good people, the institutional support of the project would be geared towards agencies whose leaders have shown keen interest and desire to work on strengthening DFGG. 10 This would enable them to build stronger coalitions of support around the institution that draw in both state and non-state actors, and build on the novel governance reforms they have introduced. Target all four elements of DFGG to have maximum effect Finally, the project would aim to build upon each functional element of the DFGG process promotion, mediation, response, and monitoring since this ensures the greatest effectiveness in strengthening DFGG. However, no single institution would be expected to simultaneously cover all four areas. The project team well recognizes that the DFGG project is only one piece in the overall agenda of governance reform that the RGC will be undertaking, and the challenges are too large to be addressed by a single project. The project is therefore adopting an opportunistic approach to strengthen a few existing good institutions and committed leaders by assisting them to become better and best. If successful, the project could pave the way for future work on strengthening DFGG in the country. D. Project Components Outlining what the project will do Working on the above principles, the project design has three core operational components 11 (i) support to state institutions, (ii) support to non-state institutions, and (iii) communication, monitoring & evaluation and learning. The motivations and basic nature of these are described below. 12 D.1 Component 1: Institution Building for State Institutions: The first core component is the institutional support to state institutions working on strengthening DFGG for a 3-5 year period. At the time of writing this note, the first short-list of 5 possible state organizations had been selected for support. The process for their selection and the nature of proposed support is outlined below. D.1.1. Selection Process and Criteria: The state institutions to be supported under the project will be preselected during project preparation. This is being done for several reasons. First, is to avoid creating tricky competition for project funds among state agencies. Second, to get a broad distribution of institutions covering different criteria, which could only be done through pre-selection. Finally, given that DFGG is a relatively new concept in Cambodia, a lot of capacity building and joint planning is needed upfront during project preparation with each of the supported institutions. This could only be done if they were chosen during the design phase. The project team therefore went through a series of consultations with government, donors, and civil society organizations over a six-month process to generate a shortlist of potential candidates for support. This search was further informed by an existing assessment of options for increasing social accountability in Cambodia done by DFID and the World Bank country team 13, and two rapid institutional assessments 14 4

5 of transparency institutions done recently by different World Bank teams. Finally, inputs were sought from the project counterpart agency the Ministry of Interior (MOI). The available spectrum of Cambodian state institutions undertaking DFGG-related functions of promotion, mediation, response, and monitoring were then narrowed down based on the following criteria in order of importance: (i) The mandate and activities of each institution (or program within it) should cover at least one element of strengthening DFGG, viz. promotion, mediation, response, or monitoring; (ii) The institutions should have demonstrated success and/or have a committed leadership willing to support DFGG activities; (iii) To the extent possible, the chosen set of institutions should cover the focus sectors for governance reform highlighted in the World Bank Country Assistance Strategy (CAS) for Cambodia 15 decentralization and de-concentration, natural resources management, private sector development, and public financial management; (iv) Finally, to the extent possible, the chosen state institutions should cover the various parts of the state machinery executive, legislature, judiciary, and independent oversight agencies. They should also cover both national and local levels of engagement. D.1.2. Selected Institutions: Based on the above criteria, the following five institutions have been chosen for support by the DFGG project: (1) Ministry of National Assembly-Senate Relations and Inspection (MONASRI) (2) The Arbitration Council (3) Radio National of Kampuchea (RNK) (4) Ministry of Interior s One Stop Window Services (OSWS) and District Ombudsman s Office (5) A National Assembly (Parliamentary) Committee A brief description of each of the above institutions is given in Annex 2 to this note. D.1.3. Nature of Expected Support: The support to be provided to each state institution will be determined through a participatory process, complemented with technical guidance from a team of expert consultants. This participatory process will begin with a workshop in which key stakeholders relevant to the operations of each state institution (such as NGOs working on legal awareness for MONASRI, or labor unions for the Arbitration Council) will share ideas for strengthening the DFGG mandate of the institution. An advisory committee or working group consisting of a sub-set of these stakeholders will then help each institution collaboratively develop a proposal for project support. This will be done through facilitated and informal mini retreats bringing government officials together with clients of state institutions and appropriate leaders in civil society, knowledgeable donors and others. This is expected to build ownership and a network of support for the implementation of the proposal. Final feedback on each proposal will come from a national level multi-stakeholder workshop towards the end of the project preparation period. All through this participatory design process, expert consultants will contribute what they know to strengthen these institutions. Although the details of the actual support to each institution will be determined by the above process, broadly speaking it is expected to involve the following core areas: (i) Capacity building The project will provide technical assistance and training on various features of organizational management (e.g. organizational structure, business processes, skills, finance, information systems, performance reward systems, ethics, etc.), (ii) Scaling up Building on the existing successful DFGG activities of each institution, the project will facilitate efforts to scale up both their scope and coverage and strengthen sustainability, 5

6 (iii) Innovation Using international experience and by creating linkages with non-state partners the project will encourage the institutions to try new innovations to strengthen their effectiveness, (iv) Partnerships Each institution will be given incentives to build partnerships with non-state actors, through say a facility for external engagement or a separate incentive fund for partnerships and coalition building, (v) Communications Each institution will be supported to develop a communications plan to generate greater awareness and promote transparency, (vi) Feedback and monitoring Finally, to generate greater accountability and ensure that citizen feedback continuously improves the performance of each of the state institution, systems for institutionalizing the process of external monitoring and stakeholder feedback will be included in their planned support program. D.2 Component 2: Support for Non-State Institutions: The core institutional support to non-state institutions working on governance planned under the project, and for linking their activities directly with existing state institutions is likely to be a unique effort for the World Bank. This support would come through two channels (one external and one internal) as described below. D.2.1. Capacity building through an expected Trust Fund program: Studies and assessments of civil society in Cambodia suggest there is great interest in the area. Yet, till now, there is little overall experience with social accountability (SA) tools and knowledge. The funding for this capacity building on social accountability for non-state actors is expected to come through a trust fund grant. The capacity building would precede DFGG project implementation by more than a year, thus laying the groundwork for the project. 16 This expected Program for Enhancing Capacity for Social Accountability (PECSA) will involve several components for non-state actors. One would be training and mentoring by leading global social accountability institutions. Another would be exchange visits to learn from other social accountability experiences in the Asia region, and scholarships for further learning. Venture governance grants for action learning would be included. It will also set up a mutual support network of Cambodian civil society organizations working on social accountability to share ideas and experiences and pursue programs collectively. The PECSA will run special programs on themes related to the DFGG project supported state institutions (such as training for journalists and labor unions). Additionally, it will support internal accountability and integrity systems of NGOs since these will be critical to the later implementation of the DFGG project. If approved, the activities under this roughly $2 million and 3 year PECSA program would be ready for implementation by April D.2.2. Project Institutional Support through a series of Development Marketplaces: The institutional support to non-state actors through the project s direct financing will take the shape of a series of 2-3 development market (DM) place competitions running over the life of the project. These will be demandled events that are expected to run around a specific theme or set of themes. Various non-state institutions (e.g. NGOs, think tanks, private media, professional associations, local community groups) will be encouraged to come up with innovative programs and activities that strengthen one or more elements of DFGG. While the specific format and focus areas of these DMs is yet to be determined, the likely themes that could be covered include: (i) Programs working around the functioning of the above DFGG project-supported state institutions This would encourage synergy and partnership between the state and non-state actors and ensure better monitoring and feedback for the state institutions. 6

7 (ii) Programs working on one or more of the theme areas of focus of the DFGG projectsupported state institutions These would include themes like local service delivery, dispute resolution, legal awareness, parliamentary oversight, and/or feedback through media. (iii) Programs centered on monitoring and oversight As independent monitoring is perhaps the function least effectively done through state institutions themselves, this would be a natural theme for a DM for non-state actors. In the end, a combination of these options is likely to be supported by the DMs. It is likely that higher priority will be given to non-state proposals partnering directly with the DFGG supported state institutions (number (i) above), so as to foster tighter links between the state and non-state institutions in the project. D.3 Component 3: Communications, Monitoring & Evaluation, and Learning: As highlighted above, the approach of the project is to provide institutional support to existing or potential good governance innovations and institutions within the country. The demonstrated success of these institutions could create a ripple effect for other state and non-state institutions to adopt better governance strategies. To facilitate this ripple effect and showcase the effectiveness of DFGG supported institutions, however, an effective communications, M&E and learning strategy is essential. Therefore, the DFGG project will have a separate component to cover this aspect. D.3.1. Communications: The role of communications will be integral to the medium and long term effects that the project aims to initiate. It will involve at least three parts. For the DFGG supported state institutions, a communication strategy will be a key element of technical support. It will aim to provide them with best practice advice on how DFGG has been promoted innovatively in other countries. It will further involve marketing, publicity and awareness building components to popularize the state institutions and showcase their results. This would be a core part of the communication component of the project. Secondly, the entire set of development marketplaces envisaged for channeling the support to non-state institutions will also require a solid publicity campaign. This would comprise the second part of the communications component. The third element will involve general information dissemination and publicity related to the concept of DFGG, and the project s activities. This could take the form of short case studies, videos, and other learning tools that can be used to create awareness of the project for both a domestic and an international audience. 18 D.3.2 M&E and Learning: As the DFGG project is the first of its kind and has the potential for leveraging further reform and operations if its effectiveness can be showcased, there is a great need to integrate a strong M&E and learning program into the project design. This will serve multiple purposes. On the one hand, it will enable the monitoring of institutional performance so continuous feedback can be made to enhance the effectiveness of the supported institutions under a learning-by-doing philosophy. On the other hand, any positive evidence that can be gathered on the impacts of DFGG project interventions on governance will become the basis for building greater support for such approaches in the future and would link back to the overall communications program for the project. This enhanced publicity would in turn help to strengthen the reputation and commitment of the DFGG supported state and non-state institutions. Conceptually, the M&E framework for this kind of project centered on institutional support and process changes will inevitably be quite complex. In simple terms, though the movement from the project s inputs 7

8 to outputs, to outcomes and impacts is meant to be as follows: the project s supported activities (i.e. the inputs) in the form of capacity building for both state and non-state institutions should strengthen their ability to promote, mediate, respond, or monitor DFGG. The enhanced capacity of these organizations will hopefully strengthen DFGG within the context in which they operate. Thus, stronger DFGG would be the project s output. Stronger DFGG is expected in turn to create better systems of governance (less corruption, better performance, more responsiveness, more accountability) in the organizations, regions, or contexts around which each of the state and non-state institutions function (e.g. in the provinces where One Stop Window Service operates, etc.). Better governance within these contexts would be the expected outcome from the project. Finally, service delivery, empowerment and welfare related effects of this enhanced governance (particularly for the poor and marginalized) would be the expected impact from the project (so more legal awareness among general public from information dissemination programs by MONASRI, or better welfare outcomes for workers and firms in the garment sector where the Arbitration Council operates). This basic causal chain is presented below in Figure-2. The arrows 1, 2, 3 are the points of entry for the M&E of results, for which different tools and indicators would have to be used. The management information system (MIS) and internal monitoring, which also forms part of the M&E framework, would be established around the project s activities (i.e. the inputs). Figure-2: A simple causality chain of the expected effects of the DFGG project IMPACT INPUTS DFGG Project OUTPUT Stronger DFGG OUTCOME Better Governance Better Development Outcomes (service delivery, poverty reduction, empowerment ) Needs monitoring and data on DFGG process indicators Needs monitoring and data on general governance indicators Involves impact evaluation (qualitative or quasiexperimental) of particular DFGG initiatives Given that the different institutions being supported will have varying functions and geographical coverage not all links will be possible to measure for each organization. And, since sustained improvements in governance are at best a medium term objective, the project must be modest in expectations on results. Nonetheless, a baseline that covers DFGG, governance, and developmental indicators will precede the implementation of the project to allow the possibility for future research. E. Summarizing The story so far and the chapters ahead In summary, the genesis of the DFGG project has come from the realization that improving governance cannot be done without working on the demand side that is with institutions that are engaged in a process of empowering citizens, civil society, and other non-state actors to make the state more accountable and responsive 19. The project has therefore taken on the task of investing in existing 8

9 Cambodian institutions already working towards this goal by promoting, mediating, responding to, or monitoring for DFGG. If successful, it can become the basis for greater reform in this area. Global lessons, strategic choices, and the existing opportunities within the governance climate that exists in Cambodia have meant that the project focus will be on institution building. Mostly those institutions will be supported that have already demonstrated some degree of success in DFGG innovation, have a clear mandate to work on one of the elements of DFGG, and/or where committed leadership exists to take on these tasks seriously. The project aims to strengthen a few existing good institutions and committed leaders by assisting them to become better and best. If successful, the project could pave the way for greater future work on strengthening DFGG in the country. But there remain several challenges ahead in terms of project design. The most pressing is the establishment of an appropriate institutional set up to disburse funds directly to non-state institutions. The ripple effects that the project aims to create will depend heavily on the coalitions and partnerships that are established between the state and non-state institutions. There is little history of strong collaboration on this front in Cambodia in the realm of governance reform. A structured approach to piloting, learning and then scaling up would need to be followed, and investments in systems, and not just people, will be important so changes in leadership in the supported institutions do not damage sustainability of the initiatives implemented. Overall, oversight and monitoring of the project will therefore be critical, as will be systematic communication, and the exact set up for these is yet to be determined. As the project preparation process moves forward there will therefore surely be new insights and practical realities that will surface and influence design. This storyline note is therefore only a first volume which is likely to have many sequels as the project design process unfolds. 9

10 Annex-1: Basic Information on Proposed DFGG Project World Bank Project ID: Borrower: Implementing Agency: Expected Funding Amount: Funding Type: Task Team Leader: P Royal Government of Cambodia Ministry of Interior (MOI) US$ 12 million International Development Association (IDA) Grant Bhuvan Bhatnagar Background: Low standards of governance and endemic corruption are widely acknowledged as fundamental constraints on the economic and social development of Cambodia. The country is emerging from conflict, and government capacity and accountability remain limited. As a result, most questions about development effectiveness tend, inevitably, to be about the quality of governance. Without good governance, efforts to sustain economic growth, reduce poverty and attain the Cambodia Millennium Development Goals can have little success. The Royal Government of Cambodia (RGC) itself acknowledges that good governance is a critical challenge. Prime Minister Samdech Hun Sen has publicly emphasized that, without substantial reform, the country has little prospect of survival. This is reflected in a number of Government policy documents, such as the Rectangular Strategy , the Governance Action Plan, and the Decentralization and De-concentration Strategic Framework. For these reforms to succeed stimulating demand from citizens for greater accountability and better quality of services is very important. Going forward, therefore, improving governance in Cambodia will require interventions to strengthen both the supply and demand for good governance (DFGG). Cambodian citizens, and the institutions that give them voice, must be engaged in the design, implementation and monitoring of RGC s reforms. This will promote greater awareness of reform processes, enhance their transparency, and make them more responsive to the needs of citizens. It will also encourage habits of constructive interaction and networking between citizens organizations and the state around the reforms. Project Development Objective: The proposed development objective of the Project is to build the capacities of institutions, and to support programs and coalitions which promote, mediate or address demand for good governance in the context of the government s reforms. This will result in more effective design, implementation and monitoring of key reforms, and more transparency, accountability and responsiveness of the state to citizens. Project Timeline: Project is currently under preparation and is expected to go to the World Bank Board for approval in March Implementation is expected to start in August/September 2008 should the project be approved. The expected lifetime of the project is expected to be between three to four years. Expected Institutional Structure: The project will create two separate funding channels to support state and nonstate institutions and programs. Funding for state institutions and programs will be managed by the MOI, while nonstate institutions and programs will be managed by a non-state entity. A multi-stakeholder oversight committee will have overall oversight responsibility for the Project. It will consist of representatives of government, civil society, business and donors, who are influential and meet the criteria of integrity and commitment to government accountability. Besides providing guidance during project preparation and oversight during implementation, the multi-stakeholder committee will help to link DFGG with supply side responses, and forge coalitions of reform champions, inside and outside of government. 10

11 Annex-2: Pre-Selected State Institutions for DFGG Project Support (as of Jan 07) Based on the selection criteria highlighted in the note, the following five institutions have been chosen for support by the DFGG project: 1) Ministry of National Assembly-Senate Relations and Inspection (MONASRI): The MoNASRI was created in 1999 and it is mandated to perform three key roles related to DFGG (a) building legal awareness on existing laws and rights, (b) inspection on all fields to combat corruption, and (c) drafting new legislation in this regard such as the draft Law on Anti-Corruption and the Law on Rights to Information. Of these three functions, it is envisaged that the DFGG project will (at least in the first instance) provide support to develop the first, i.e. legal awareness building and demystification by disseminating information about new laws (like the forthcoming Organic Law on Decentralization & De-concentration and the Anti-Corruption Law) to ordinary citizens. This would then fall in the category of a national, executive agency working on promotion of DFGG as it would enhance public access to information about the new laws. 2) The Arbitration Council (AC): The AC is a national institution mandated to resolve labor disputes. In Cambodia, workplace relations are a matter of public policy and Cambodian Labor Law provides for a mandatory dispute resolution process to be managed by the Ministry of Labor. In response to this mandate, the Ministry established the AC in 2003 with support from employer associations and union federations to ensure that structural conflict around labor is managed in a socially and economically constructive manner. Since its establishment the AC has become an effective statutory body that has provided a fast, transparent, and fair (law-based) mediation service to resolve disputes between firms and employees, mainly in the garment sector. As the Cambodian economy diversifies into other manufacturing and services, a body such as the AC can serve as an example of the state supporting transparency, accountability and neutrality in mediating DFGG by the private sector. DFGG project support is therefore expected to be provided to the AC to sustain and scale up its activities to more effectively mediate and resolve conflicts between labor unions and employers. This will both empower labor unions and make the private sector more efficient. This state institution thus falls in the category of a private sector-related, quasijudicial body involved in mediation of DFGG. 3) Radio National of Kampuchea (RNK): RNK is the national public radio broadcasting agency in Cambodia. Among its programs is a rapidly popularizing one hour talkback program called Our Life, Our Society. This radio program provides a medium for direct feedback from citizens to high level officials about their programs and performance, as well as an avenue to freely share their opinions and ideas something new to Cambodian society. As another national institution involved in both promotion and mediation (feedback) of DFGG, the talk-back program is envisaged to get support from the project to expand its coverage and scope. 4) Ministry of Interior s One Stop Window Services (OSWS) Office and Ombudsman s Office: The OSWS and Ombudsman s offices are newly-created institutions/programs currently being piloted in two provinces in the northwest of the country, viz. Siem Reap and Battambang. The OSWS is an experiment to deliver several key administrative services (such as licenses and documentation processing relating to land management, commerce, urban planning and construction, industry, tourism, etc ) under one roof to speed up their delivery to citizens and small businesses. Similarly, the district ombudsman s office, which also operates within the MOI, is designed to receive complaints from citizens, the business community and civil society on the performance and conduct of district officials. This pair of institutions therefore reflects local/decentralized bodies aiming to respond to and mediate DFGG by providing improved local services, addressing grievances and contributing to decentralization. 5) A National Assembly (Parliamentary) Committee: The final state institution that is envisaged to get support from the DFGG project is a National Assembly or Parliamentary Committee (NAC). These are the constitutional oversight bodies that monitor the work of the executive arm of the government by representing the common citizen. The NACs thus represent national, official monitoring/oversight agencies. There are several such NACs in the Cambodian parliament. However, it is envisaged that the project will support only one, or at most two, of these (such as the NAC on Decentralization or Complaints) to provide oversight and monitoring of the implementation of key RGC reforms and programs. 11

12 End Notes 1 Annex-1 to the note gives basic information on the project. 2 As several studies show, the existing systems of promoting integrity, accountability and good governance in Cambodia are at best weak, if not dysfunctional. See for instance the National Integrity Systems Country Study for Cambodia by Transparency International, Strengthening Bank Group Engagement on Governance and Anti-Corruption, The World Bank, September 8 th, For a discussion on the rationale and evidence regarding demand side approaches see Ackerman, J.: Social Accountability and the Public Sector, Social Development Paper No. 82, The World Bank, See Burke, A. and Vanna, N. Options for Increasing Social Accountability in Cambodia, DFID and World Bank Cambodia, 15 February 2005, for a description of existing Social Accountability initiatives and opportunities in the country. 5 Although most people have a basic idea of what DFGG refers to, these conceptualizations would differ from person to person, especially because the terms is intricately linked to other similar notions such as social accountability or participatory/democratic governance. 6 A given institution can actually serve more than one (even all four) of the elements of DFGG, although in practice most institutions would have a core competency in one particular area. 7 See for instance the Philippines Country Assistance Strategy, April 2005, where the strategy for governance reform was to build upon existing islands of good governance. 8 A focus on institutional support is also an important strategic move since it provides an incentive for these agencies (in particular on the state side) to take on governance innovations and try out new activities (including greater transparency and partnerships with non-state actors). 9 Support to state institutions was also mandated by political economy considerations given the fact that the client for IDA support is the government. 10 These reform champions could in fact also warrant support to institutions that otherwise may not be functioning optimally, but which have a clear mandate towards addressing one or more of the elements of DFGG. See the World Bank Governance and Anti-Corruption strategy as well as the Philippines CAS for further elaboration on the rationale for such strategic engagement. 11 The fourth component deals with project administration and implementation arrangements. Note also that the original PCN had a program support window as the second core component. Based on the reality that there is little distinction between institutions and their programs (the former are defined by the latter), particularly in the Cambodian context, these components were replaced by one component on state institution support and the other on non-state. 12 Most of the detailed modalities of each component are still under preparation. 13 Burke, A. and Vanna, N (2005) cited above. 14 Bou, S. and Salazar, L.: Cambodia Grassroots Media Assessment for the Social Accountability (Citizens Partnership for Better Governance) Framework, Mission Report, DFID and World Bank Cambodia, April Country Assistance Strategy for the Kingdom of Cambodia, The World Bank Group, April There were several reasons for seeking external assistance for this piece of support (i) flexibility external trust fund financing would allow general broad based capacity building for non-state institutions and allow the project s direct resources to focus on programs and institutions working directly with the state side counterparts, (ii) timing as DFGG project resources are not likely to flow for at least 18 months at which point it would require immediate involvement of non-state actors, one needs a critical capacity building program beforehand to prepare the ground for effective project implementation, and (iii) appropriateness an externally financed capacity-building program for non-state institutions would reinforce their independence and strengthen their ability to develop partnerships with state actors on a foundation of strong technical knowledge. 17 The decision on whether the funding of the project will come through will be available by end February These would be commissioned as necessary by the project Oversight Committee with the guidance of the Bank task team and proposed project communication consultants. 19 For examples of successful demand side innovations to improve accountability and governance see (i) Ackerman, J. (2005) cited above, (ii) Arroyo, D. and Sirker, K.: Stocktaking of Social Accountability Initiatives in the Asia and Pacific Region, The World Bank Institute CESI Learning Program, 2005, (iii) Goetz, A.M. and Gaventa, J.: Bringing Citizen Voice and Client Focus into Service Delivery, IDS Working Paper 138, Institute for Development Studies, Sussex, UK, July