Uplands Irrigation and Water Resources Management Sector Project (RRP CAM 44328) POVERTY AND SOCIOECONOMIC CONDITION A. Introduction 1. This report presents the socioeconomic and poverty situation in the project areas of the Uplands Irrigation and Water Resources Management Sector Project in Cambodia. The project areas are located in the provinces of Battambang and Kampong Thom. The proposed project is planned to enhance agricultural and rural economic productivity through increased efficiency of irrigation systems and improved management of water resources. It will be implemented in two irrigation schemes, namely, Prek Chik Irrigation Scheme located in Battambang Province and Taing Krasaing Irrigation Scheme located in Kampong Thom Province. The social and poverty assessment of the project examines the socioeconomic conditions in the project areas and identifies the population that will be impacted. It identifies the existing irrigation and agriculture situation in relation to poverty condition of the existing population within the proposed irrigation schemes. It presents the poverty situation in terms of the poverty rate and identifies the vulnerable population which may be impacted by the project. B. Development Scenario and Socioeconomic Development Policies and Plans 2. Over the last decade, Cambodia has been experiencing economic development with a growth rate of 10.2% for the period of 2004–2008. Though the gross domestic product (GDP) decreased to 0.1 in 2009, it recovered in 2010 and 2011 with a growth rate of 6.0%. Agriculture, fisheries and forestry have shown tremendous growth in 2005 with 15.7% compared to other sectors such as industry with 12.7% and services with 13.1%. It had however decreased to 4.0% in 2010 compared to the high increase in industry of 13.6% and services of 3.3%.1 3. The Government of Cambodia outlined its long-term vision for development in the national program to rehabilitate and develop Cambodia in 1994. This initiated the process of rebuilding and rehabilitating the social, physical, and institutional infrastructure. Based on this vision, the first 5-year Socioeconomic Development Plan (SEDP I, 1996–2000) was formulated focusing on the establishment of macroeconomic fundamentals, social development contours, and poverty alleviation strategies. In the second SEDP (2001–2005), the focus was on economic growth and poverty reduction. 4. Towards the end of 2000, countries around the world agreed on a set of common goals known as the Millennium Development Goals (MDG). On the basis of which, the Cambodian Millennium Development Goals (CMDG) was formulated focusing on poverty alleviation and human development. The National Poverty Reduction Strategy (NPRS) was adopted in December 2002 to define the country’s strategy in achieving the CMDGs. 5. The CMDG focused on tackling extreme poverty and these are focused on eight Goals: (i) MDG 1 is the eradication of extreme hunger and poverty. (ii) MDG 2 is to achieve universal primary education for all people of school age. (iii) MDG 3 is the promotion of gender equality. (iv) MDG 4 is the reduction of child mortality. (v) MDG 5 is the improvement of maternal health. (vi) MDG 6 is to combat HIV/AIDs, malaria and other diseases. 1 Asian Development Bank. 2011. Key Indicators for Asia and the Pacific 2011. Manila. 2 (vii) MDG 7 is on environmental sustainability. (viii) MDG 8 is to develop global partnership for development. 6. In 2012, an assessment was made by the Ministry of Planning on the achievements made in relation to the progress of the 194 districts and 24 provinces in achieving the MDG. Presented in Table 1 is the rating and ranking of the districts and provinces where the Prek Chik and Taing Krasaing irrigation schemes are located. The Prek Chik irrigation scheme which is located in Battambang province has land in the districts of Moung Ruissei and Rukk Kiri covering four communes, while Taing Krasaing, located in Kampong Thom has land located in Santuk District covering four communes. The assessment shows that Battambang Province has a rating of 582 and ranks number 10 out of 24 provinces. It has higher achievement and ranking compared to Kampong Thom, which is ranked number 15 among 24 provinces. Among the three districts covered by the project, Moung Ruessei has the highest achievement rating of 69 with a ranking of 104 out of 194 districts. Santuk District has the lowest rating of 61 and with a ranking of 156. It shows that the MDG 1 on complete eradication of extreme hunger and poverty indicates low rating in the three districts and two provinces. MDG 3 on gender equality and MDG 5 on improve maternal health show high rating in the three districts. Table 1: Assessment of Achievements in the Millennium Development Goals Taing Krasaing Irrigation Prek Chik Irrigation Scheme Scheme Millennium Kampong Development Goal Battambang Moung Santuk Rukh Kiri Thom Province Ruessei District Province MDG 1 42 55 42 35 41 MDG 2 64 71 62 47 62 MDG 3 67 72 68 58 64 MDG 4 76 87 86 58 72 MDG 5 79 76 77 49 70 MDG 6 52 75 86 56 85 MDG 7 34 33 30 35 44 MDG 8 43 85 85 46 47 Total Rating (100 highest 58 69 66 48 61 score) Ranking 10 104 124 15 156 (out of 24 (out of 194 (out of 194 (out of 24 (out of 194 provinces) districts) districts) provinces) districts) Source: PPTA Consultant. 7. The Rectangular Strategy3 selects the key elements from the MDGs, the NPRS 2003– 2005 and the various policies, plans and reform program. It provides a 5-year development framework. It is envisaged that the program will be implemented and managed within the existing organizational and management structures of the Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of Water Resources and Meteorology (MOWRAM). One of the key pillars of the Rectangular Strategy is the agriculture policy, which addresses the improvement of agricultural productivity and diversification. This is intended to enable the agriculture sector to serve as the dynamic driving force for economic growth and poverty 2 Rating is made on a 100% scale. 3 Government of Cambodia. 2008. “Rectangular Strategy” for Growth, Employment, Equity and Efficiency Phase II, First Cabinet Meeting of the Fourth Legislature of the National Assembly. Phnom Penh. 3 reduction. In the rural areas, land and water are the two fundamental natural resources that serve as the basis for socioeconomic development and poverty reduction. Through the agriculture policy, the government will develop and expand irrigated lands and effective water resources management by improving the efficiency of the existing irrigation system, further developing and enhancing the effectiveness of water communities and reducing the vulnerability of the population to natural disasters and its total dependence on natural conditions. 8. The National Strategic Development Plan (2013–2018) carries forward the agenda laid out in Rectangular Strategy Phase III, which was unfolded in September 2013 and in achieving the MDGs. C. Socioeconomic Condition 1. Land Area and Agriculture Situation 9. Cambodia has a total land area of 181,035 km2 with a total estimated population of 15 million people of which 48.9% is male and 51.1% is female. There are 2.6 million households, out of which 1.876 million households are engaged in agriculture. The percentage of people living below the poverty line was 35.1% in 2004, decreasing to 29.3% in 2008, and further decreased to 22.9% in 2012. The total land area for arable and permanent crops is estimated at 4.5 million ha in 2013, of which 3.99 million ha are arable land and 0.51 million ha are planted with permanent crops such as fruit trees.4 The country is divided into four regions with the following number of land holdings as indicated in Table 2. Table 2: Regions and Number of Agricultural Landholdings Number of Agricultural Regions 2 Proportion (%) Holdings (km ) Cambodia 1,876,712 100% Plain 869,305 46.35 Tonle Sap Lake 614,369 32.75 Coastal 139,433 7.43 Plateau and Mountainous 252,605 13.47 Source: PPTA Consultant. 10. The project area is located in two provinces, namely Battambang and Kampong Thom, which belong to the Tonle Sap Lake Region. Battambang has 26% of the total agricultural landholdings in the Tonle Sap Lake Region with an average of 3.118 ha per landholding. Kampong Thom has 13% of the agricultural landholding with an average of 1.75 ha per landholding. Tonle Sap Lake Region has 47% of the total agricultural landholding in Cambodia with an average landholding of 2.35 ha. Table 3: Agricultural Landholdings in Project Areas Total Agricultural Average Area per Region/Province Landholding Area (Ha) Holding (Ha) Cambodia 3,071,383.83 1.637 Tonle Sap Lake Region 1,447,620.55 (47%) 2.356 Battambang Province 374,558.50 (26%) 3.118 Kampong Thom 195,057.65 (13%) 1.754 Source: PPTA Consultant. 4 Government of Cambodia, National Institute of Statistics, Ministry of Planning in collaboration with Ministry of Agriculture, Forestry and Fisheries. 2013. Census of Agriculture in Cambodia. Phnom Penh. 4 11. Land tenure arrangement shows that majority of the land are owned with 94.57% in Battambang and 98.55% in Kampong Thom. Table 4: Land Tenure Arrangement % of Parcels by Land Tenure Rented with Other Total No. of Region / Province Rented Owned payment Land Parcels Free (Money or Harvest) Tenure Cambodia 97.91 1.53 0.36 0.21 3,731,551 Tonle Sap Lake 97.58 1.77 0.50 0.15 1,148 Region Battambang Province 94.57 4.41 0.83 0.19 191,176 Kampong Thom 98.55 1.18 0.18 0.10 230,841 Source: PPTA Consultant.