Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Volume 3, Number 2 February 2005 World Bank President James D. Wolfensohn visits Cambodia, Urges: Seize the opportunity PHNOM PENH, February 11, 2005 Cambodia is a country of great human, cultural, and natural resources with real potential to be a thriving economy, but it needs to move urgently forward on the reform agenda it has adopted, said Mr. James D. Wolfensohn, President of the World Bank Group, as he concluded his visit to Cambodia this week. He congratulated the Cambodian people on the progress they have already made, and said, You are at a crossroads for change. Cambodia must not falter, but must move decisively forward if it wants to ensure that its vision for a stronger, healthier country and people is to be realized. Mr. Wolfensohn, in his first trip to Cambodia, met with a number of key stakeholders here to learn more about the issues important to the Cambodian people. He met with His Majesty the King, Norodom Sihamoni; with Prime Minister, Samdech Hun Sen; and senior government officials and with civil society; students and youth organizations; garment workers, World Bank president, James D. Wolfensohn (left) received a warm welcome by H.E Keat Chhon, Sr. Minister of Economy and Finance, upon his arrival Mr. Wolfensohn, H.E Sok Siphana, Secretary of State of the Ministry of Commerce, Sally Paxton, Executive Director ILO are shown around the New Island Clothing Cambodia Ltd. by General Manager Andrian Ross members of the private sector, and donors. He also participated in a high-level panel discussion on Cambodia s trade opportunities at the international summit: Cambodia: Seizing the Global Opportunity a Growth Strategy in an Era of Free Trade. Mr. Wolfensohn visited a garment factory with 380 employees, most of whom are women and support their families back home in rural communities. The garment sector is Cambodia s largest industry, worth $1.6 billion in 2003, and accounts for 80% of exports. He praised the International Labor Organization s (ILO) efforts, through its factory monitoring program, in supporting the Government s goals to make Cambodia an international leader in improving core labor standards. As part of these efforts, not only have the conditions of Cambodia s labor force improved, but the productivity has increased and quality of products boosted, he noted. He said, The increasing competition faced by Cambodia as the MFA (Multi Fiber Arrangement) expires means that continued reform to improve
2 The World Bank Newsletter February 2005 productivity and competitiveness by reducing costs many of which are caused by poor infrastructure, weak institutions, corruption, and layers of bureaucracy and improving the skills and training of the workforce is all the more urgent. He warned that a workforce of some 1.2 million people directly and indirectly relied on the garment sector and if the government failed in its reform objectives, that these people would be seriously affected, and that as much as 10% of GDP could be hurt. He urged renewed implementation on the Government s 12 Point Reform plan, announced last August, which addressing competitiveness issues and impediments to private sector led growth. Another highlight of the visit was a ceremony for land certificates, where Mr. Wolfensohn handed out new land certificates to residents. He noted that having rights to land marks a new opportunity for the Cambodian people to invest in their farms, small businesses, and houses, to improve their financial security and their lives and is key in the fight against poverty. With support from the World Bankfinanced Land Management and Administration project, the Government is issuing 20,000 titles a month, mostly in rural areas, in a transparent and participatory process, with 80% of the these titles registered jointly by wife and husband or by Mr. Wolfensohn presents a land title certificate to a Cambodian villager at a ceremony in Phnom Penh From left: Ambassador of Japan H.E. Fumiaki Takahashi, H.E Im Chun Lim, Sr. minister of Land Management, Urban Planning and Construction, Mr. Wolfensohn, Dr. Ing Kantha Phavi, Minister of Women s Affairs, Nisha Agrawal, World Bank Country Manager, Alain Rauch, 1st Counselor of French Embassy, and Bob Hagemann, IMF representative, discuss donor harmonization at a lunch held in Phnom Penh female-headed households. There are more challenging issues to face, as we move forward on this reform agenda, particularly those involving state lands and the rights of communities living on or near those lands, he said. Progress won t be easy, but we ve seen in too many countries that avoiding the difficult issues allows underlying problems to worsen. Mr. Wolfensohn pledged continued Bank support in helping the Government move forward on this and noted the good work that many other donors such as Canada, Finland, Japan, Germany, and the Asian Development Bank and NGOs are doing in this area. Tackling another key issue aid harmonization Mr. Wolfensohn met with Government and a number of donors to discuss how to build upon the Government s efforts to increase the effectiveness of how aid money is used in Cambodia in particular addressing issues such as the quantity and quality of Technical Assistance. Mr. Wolfensohn congratulated H.E. Keat Chhon, Minister of Economy and Finance, for his leadership in harmonizing aid with donors increasingly cooperating with each other and aligning their programs with the Government s priorities, and Government in turn taking on ownership of the development process and committing itself to reform of government institutions and systems in a transparent and accountable manner. By improving national systems (ie, civil service, budgeting, accounting,) the government can reduce transaction costs and increase budget support from donors, Mr. Wolfensohn said. Partnership, better alignment, and strengthened country systems are absolutely crucial to making sure that the aid intended to help Cambodian people reaches them.
February 2005 The World Bank Newsletter 3 H.E Sr. Minister Kol Pheng, Minister of Education, Youth and Sport (left) Mr. Wolfensohn, H.E Aun Porn Moniroth, Secretary of State of Ministry of Economy and Finance watch a World Bank film on Work for a World Free of Poverty at a meeting with 800 students and youth. Mr. Wolfensohn addressed more than 800 students at Pannasastra University, where he announced the Youth in World Bank Cambodia Program a special program modeled on successful pilots in other country offices around the globe to involve a group of youth in analyzing the Bank s projects and programs and helping to incorporate the views and needs of the youth in the design and implementation. He noted that Cambodia needs a paradigm shift from a society that accepts corruption as a natural way of life to one that demands the highest ethical standards, one that focuses on education, hard work and said that young people have a crucial role to play in making this shift, provided they refuse to play any part in corrupt practices. He reminded youth of the lessons he learned from speaking to other youth groups, in other countries, who told him that youth may be the future.. but we are also the now. Mr. Wolfensohn speaks to students and youth leaders at Pannasastra University in Phnom Penh He said that although Cambodians have suffered from a terrible past, the country has a great deal of unrealized potential and youth are an important part of that they must willing and confident in taking a leadership role in reforming Cambodian society.
4 The World Bank Newsletter February 2005 Mr. Wolfensohn also joined in the high-level conference: Cambodia Seizing the Global Opportunity: A Growth Strategy in an Era of Free Trade and participated in a discussion about how Cambodia can create a domestic environment that supports sustainable growth in investment and productive jobs; how the private sector can contribute to this growth agenda, and the important role of trade, good governance and corporate social responsibility in a least developed country. He spoke about trade and development linkages and urged, that Cambodia, as with all developing countries, needs to focus on three areas to reap the benefits of the global trading system good governance including institutions, training, people and systems; a functioning legal system; and strong anti-corrup- Prime Minister, Samdech Hun Sen, opening the Seizing the Global Opportunity conference, accompanied by Mr. Wolfensohn and H.E. Cham Prasidh, Sr. Minister of Commerce tion measures. He also assisted H.E. Minister Cham Prasidh, Senior Minister of Commerce in awarding four awards for the First Annual Corporate Citizenship Awards, supported by the International Finance Corporation and selected through a competitive process based on a set of international criteria. To the left: Audience listens to Prime Minister, Samdech Hun Sen, delivering the opening speech at the Seizing the Global Opportunity conference Mr. Wolfensohn met members of civil society, and discussed with them key issues such as governance, including human rights, legal and judicial reform and corruption; use of natural resources including forestry, land, and water; and gender, human and social development. He commented, No society can move forward without respect for women and equal opportunity. He urged strengthened cooperation between the Bank and NGOs in areas where the vision and goals of Bank and NGOS are aligned such as areas of good governance, social and economic justice, and poverty reduction and said that they need to continue to openly discuss areas where they may disagree and work towards identifying way to collaborate so that together they can reach their shared goals of a more prosperous and equitable Cambodia. Mr. Wolfensohn noted the important role that civil society have played and continue to play in Cambodia and expressed the World Bank s commitment to continued dialogue on areas of possible collaboration. Mr. Wolfensohn meeting with NGOs and Civil Society leaders at the World Bank office in Phnom Penh
February 2005 The World Bank Newsletter 5 Mr. Wolfensohn underscored, in each of his meetings, the need for Cambodia to promote good governance and fight corruption in order to promote broad-based growth and poverty reduction; to improve aid effectiveness and implement the principles of donor harmonization and coordinated efforts towards achieving the growth and poverty reduction objectives objectives of Cambodia s Rectangular Strategy (RS). He also made special efforts to reach out to youth in Cambodia, given their important role in the hope, inspiration, and vision of the future of this country. Mr. Wolfensohn noted that the analytical work diagnosing the problems of poor governance, weak institutions, and corruption that are holding back economic growth, investment, and poverty reduction has been done, the reform agenda has been set, and that now, the key is implementation. And he said that based on his own meetings with stakeholders in Cambodia, that the key to implementing the reform agenda and achieving Cambodia s vision for the future rested in an aggressive fight against corruption. There are many people in Cambodia who have asked why the World Bank remains involved in a country where the problems of corruption are as well-recognized as they are, by government, civil society, private sector, the media, and others, he said. We believe, however, that we have an obligation to help the Cambodian people to have the opportunity, the hope for a better life. We believe that by working with Government, increasing our partnership with the donor community, and increasingly consulting with civil society groups, including youth all who share this dream of a better future that we can do more by staying engaged than by leaving. We have reduced our lending to Cambodia as a response to the poor performance on governance indicators but we have not reduced our commitment nor our efforts to push for the kinds of reforms that are needed to bring about a better life for all Cambodians. HRH King Norodom Sihamoni greets Mr. Wolfensohn Mr. Wolfensohn concluded his visit by calling on His Majesty King Norodom Sihamoni, to brief him on what the World Bank Group is doing in Cambodia and to discuss issues related to Cambodia s development, including youth and culture. Mr. Wolfensohn was very pleased to hear from the King the emphasis on educating all of Cambodian people and he was deeply impressed by the King s commitment to the Education For All initative. Cambodia Prime Minister, Samdech Hun Sen, greets Mr. Wolfensohn Mr. Wolfensohn also met with Prime Minister Samdech Hun Sen and emphasized to him that Cambodia s future lay in the hands of Cambodians. The future is in the hands of Cambodians, Mr. Wolfensohn stressed. The World Bank is ready to support your efforts but ultimately, success or failure is in your hands. All have a role to play the Government, the Parliament, civil society, the private sector, students, youth, media in making their country a place of opportunity, of hope, and peace. Cambodia deserves this opportunity, and the World Bank is committed to being your long-term development partner and assisting you in meeting these dreams for a better, more equitable future for all Cambodians. Following Mr. Wolfensohn s visit, the World Bank is pleased to announce that we have just completed discussions for the Cambodia Education Sector Support Project which will provide $28 million ( of which $20 million will be a grant) to support basic education in Cambodia during 2005-2010. The aim of the project is to assist Cambodia to expand access to education services by addressing supply, demand, quality and efficiency constraints, with a focus on the poor and under-served communities. The project also contains a component to improve the quality of higher education in Cambodia which is necessary to enable young Cambodian women and men to get good quality education, well paying jobs, and a life of dignity and hope.
6 The World Bank Newsletter February 2005 Mr. and Mrs. Wolfensohn s visit the Angkor Monuments Mr and Mrs Wolfensohn wrapped up their Cambodia trip with a visit to Siem Reap, where they enjoyed the world famous cultural heritage and history of Cambodia. Their Siem Reap visit was hosted by HE Sim Son, the Governor of Siem Reap, and facilitated by HRH Prince Sisowath Panara Sirivuth, the Minister of Culture and Fine Arts. The group spent half a day touring the Angkor monuments including Angkor Wat, Bayon and Ta Prohm. Top: Ros Borath, a leading expert on the Angkor monuments explains the layout of the spectacular Ta Prohm Temple To the left: Mr. Wolfensohn taking a break in the corridors of Angkor Wat temple with World Bank colleagues Nisha Agrawal, Country Manager, Ian Porter, Country Director, Ros Sivannara, Sr. Program assistant, and Rob Floyd, Assistand to the President To the right: Mrs. Elaine Wolfensohn and Nisha Agrawal enjoying the magnificent Bayon Temple
February 2005 The World Bank Newsletter 7 From left: Homi Kharas, Chief Economist of the East Asia and Pacific Region, Deepak Khanna, Country Manager, International Finance Corporation, John Austin, the Executive Director for Cambodia at the World Bank Board, and H.E Vongsey Vissoth, Deputy General Director of MEF enjoy the beauty of Ta Prohm temple Mr. Wolfensohn enjoys the culture and fine arts of Cambodia The Governor of Siem Reap hosted a dinner and cultural performance featuring a traditional Khmer music recital by the NGO Cambodia Living Arts, a family style dinner under the stars and a spectacular dance performance by the Royal Ballet of Cambodia, which had been brought up from Phnom Penh specifically for this event To the right: Mr Wolfensohn playing the Kse diev, an ancient Cambodian string instrument Above: Mr. Wolfensohn plays the cello for the dinner guests To the left: HRH Prince Sisowath Parara Sirivuth, Minister of Culture and Fine Arts, introduces Mr. Wolfensohn to members of the Cambodian Royal Ballet, following the performance
February 2005 The World Bank Newsletter 8 Mr. Wolfensohn held a joint staff meeting with the World Bank and the IFC/MPDF teams where he heard testimonies from staff representative Nil Vanna, Social Development Specialist and Lili Sisombat, who spoke on behalf of staff and gave a very moving account of Cambodia s tragic history and the progress it had made so far and also an inspiring and energizing account of what the World Bank Group was doing to support Cambodia s fight against poverty and corruption To the left: Mr. Wolfensohn ended his Cambodia visit with a Sunday lunch giving him an opportunity to get to know some of the World Bank Group national staff, including Bou Saroeun, Communications Specialist, to his right, and Ros Sivannara, Sr. Program Assistant to his left To the right: Mr. and Mrs. Wolfensohn bid farewell to Cambodian colleagues and officials at Siem Reap airport after a very memorable and moving first visit to Cambodia