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World Bank Document 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 Public Disclosure Authorized World Bank Group, as he concluded his visit to Cambodia this week. He congratu- lated 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 Cam- bodia, met with a number of key stakehold- ers here to learn more about the issues im- portant to the Cambodian people. He met World Bank president, James D. Wolfensohn (left) received a warm welcome by Public Disclosure Authorized with His Majesty the King, Norodom Sihamoni; with Prime Minister, Samdech H.E Keat Chhon, Sr. Minister of Economy and Finance, upon his arrival Hun Sen; and senior government officials members of the private sector, and do- portunities at the international summit: – and with civil society; students and nors. He also participated in a high-level Cambodia: Seizing the Global Opportu- youth organizations; garment workers, panel discussion on Cambodia’s trade op- nity – a Growth Strategy in an Era of Free Trade. Mr. Wolfensohn visited a garment fac- tory 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 Inter- national Labor Organization’s (ILO) ef- Public Disclosure Authorized forts, through its factory monitoring pro- gram, 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 in- creased and quality of products boosted, he noted. He said, “The increasing com- Mr. Wolfensohn, H.E Sok Siphana, Secretary of State of the Ministry of petition faced by Cambodia as the MFA Commerce, Sally Paxton, Executive Director ILO are shown around the New (Multi Fiber Arrangement) expires Island Clothing Cambodia Ltd. by General Manager Andrian Ross means that continued reform to improve 2 The World Bank Newsletter February 2005 productivity and competitiveness by re- ducing 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 re- lied on the garment sector and if the gov- ernment 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 ad- dressing competitiveness issues and im- pediments to private sector led growth. Another highlight of the visit was a ceremony for land certificates, where Mr. Wolfensohn handed out new land certifi- cates to residents. He noted that having Mr. Wolfensohn presents a land title certificate to a Cambodian villager at a rights to land marks a new opportunity ceremony in Phnom Penh for the Cambodian people to invest in their farms, small businesses, and houses, to female-headed households. “There are tinued Bank support in helping the Gov- improve their financial security and their more challenging issues to face, as we ernment move forward on this and noted lives – and is key in the fight against pov- move forward on this reform agenda, par- the good work that many other donors – erty. With support from the World Bank- ticularly those involving state lands and such as Canada, Finland, Japan, Germany, financed Land Management and Admin- the rights of communities living on or and the Asian Development Bank – and istration project, the Government is issu- near those lands,” he said. “Progress NGOs are doing in this area. ing 20,000 titles a month, mostly in rural won’t be easy, but we’ve seen in too many areas, in a transparent and participatory countries that avoiding the difficult is- process, with 80% of the these titles reg- sues allows underlying problems to Tackling another key issue – aid har- istered jointly by wife and husband or by worsen.” Mr. Wolfensohn pledged con- monization – Mr. Wolfensohn met with Government and a number of donors to discuss how to build upon the Government’s efforts to increase the ef- fectiveness of how aid money is used in Cambodia – in particular addressing is- sues such as the quantity and quality of Technical Assistance. Mr. Wolfensohn congratulated H.E. Keat Chhon, Minister of Economy and Finance, for his leader- ship in harmonizing aid – with donors in- creasingly cooperating with each other and aligning their programs with the Government’s priorities, and Government in turn taking on ownership of the devel- opment 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. Partner- ship, better alignment, and strengthened From left: Ambassador of Japan H.E. Fumiaki Takahashi, H.E Im Chun Lim, Sr. country systems are absolutely crucial to minister of Land Management, Urban Planning and Construction, Mr. making sure that the aid intended to help Wolfensohn, Dr. Ing Kantha Phavi, Minister of Women’s Affairs, Nisha Agrawal, Cambodian people reaches them. 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 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 gram modeled on successful pilots in other ing to incorporate the views and needs of 800 students at Pannasastra University, country offices around the globe to in- the youth in the design and implementa- where he announced the “Youth in World volve a group of youth in analyzing the tion. Bank Cambodia Program” – a special pro- Bank’s projects and programs and help- He noted that Cambodia needs a para- digm shift from a society that accepts cor- ruption 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 cru- cial role to play in making this shift, pro- vided they refuse to play any part in cor- rupt 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.” He said that although Cambodians have suffered from a terrible past, the country has a great deal of unrealized po- tential and youth are an important part of that – they must willing and confident in taking a leadership role in reforming Cam- Mr. Wolfensohn speaks to students and youth leaders at Pannasastra University bodian society. in Phnom Penh 4 The World Bank Newsletter February 2005 Mr. Wolfensohn also joined in the high-level conference: Cambodia – Seiz- ing the Global Opportunity: A Growth Strategy in an Era of Free Trade and par- ticipated in a discussion about how Cam- bodia can create a domestic environment that supports sustainable growth in in- vestment 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 de- velopment linkages and urged, that Cam- bodia, 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 function- Prime Minister, Samdech Hun Sen, opening the Seizing the Global Opportunity conference, accompanied by Mr. Wolfensohn and H.E. Cham Prasidh, Sr. ing legal system; and strong anti-corrup- Minister of Commerce tion measures. He also assisted H.E. Min- ister 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 Wolfensohn noted the important role that Bank’s commitment to continued dialogue society, and discussed with them key is- civil society have played and continue to on areas of possible collaboration. sues such as governance, including hu- play in Cambodia and expressed the World man rights, legal and judicial reform and corruption; use of natural resources in- cluding forestry, land, and water; and gen- der, human and social development. He commented, “No society can move for- ward without respect for women and equal opportunity.” He urged strength- ened 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 eco- nomic justice, and poverty reduction – and said that they need to continue to openly discuss areas where they may dis- agree and work towards identifying way to collaborate so that together they can reach their shared goals of a more pros- Mr.
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