Regional Economic Development Programme, Cambodia

Project completed

The Regional Economic Development (RED) programme, implemented by GIZ in Siem Reap Province since 2007, aims at strengthening local economic growth and democratic governance for poverty reduction at local level. SDC joins forces with the German BMZ to scaling up this programme in two new provinces. By focusing on local governance structures, it will support rural poor, in particular women to increase their income and actively participate in local development.

Country/region Topic Period Budget
Cambodia
Governance
Agriculture & food security
Education
nothemedefined
Decentralisation
Agricultural services & market
Basic life skills
01.07.2014 - 31.03.2018
CHF  4’900’000
Background

Development of rural areas and of the agricultural sector is important for poverty reduction in Cambodia, as 56% of the working population is employed in rural areas; two-thirds of these people work in the agricultural sector. The rural economy is plagued by low productivity and limited diversification as a result of limited access to technical know-how, innovations, marketing opportunities and information. A functioning sub-national government is essential for local economic development in rural areas, for poverty reduction and more resilient livelihoods. In Cambodia, local government bodies, including district and commune councils lack the capacity to manage and coordinate local development efforts.

Objectives

The rural population, especially vulnerable groups, has improved their economic and social living conditions

Target groups

The programme targets economically active poor (very poor households and households just above the poverty line, small-scale farmers and small-scale producers, small (informal) businesses, landless poor, or those without regular employment) in rural areas of Siem Reap (SR), Banteay Meanchey (BM) and Oddar Meanchey (OM) (approx. 1.2 million people). The proportion of female-headed households is high (10-15%) and women are often targets of specific measures of the programme. Local government bodies (25 district and 188 commune councils) in the three target provinces are major beneficiaries of the programme through capacity building measures and institutional strengthening.

Medium-term outcomes

The poor, rural population - especially women - uses new, sustainable business and employment opportunities to increase their income and reduce poverty. 

Results

Expected results:  

  1. Local government action for inclusive growth: commune and district councils and administrative bodies implement measures for inclusive economic development.
  2. Stakeholder cooperation for local economic development: Public, private and civil society stakeholders, including poor and vulnerable households, develop and implement joint economic development initiatives.
  3. Sustainable services and business links for increased competitiveness of local products: Access for male and female smallholders and small business men and women to sustainable economic promotion services is improved and the range of job opportunities for job seekers is increased.
  4. Knowledge partnerships with national level stakeholders: Mechanisms to ensure exchange of knowledge and experience on policies and reforms, and up-scaling of RED lessons learned and best practices between national and sub-national levels are in place and functioning.

 


Results from previous phases:  

Cooperation between the public and the private sector and civil society improved significantly, with six districts elaborating plans for regional economic development. Commune and district councils better understand their roles and tasks in economic development and have been enabled to better respond to citizens’ needs and to support economic development and poverty reduction. Eighty-five commune councils (98% of all rural commune councils in Siem Reap Province) defined regulations to improve local framework conditions for econo­mic development.

Competitiveness of local products clearly increased through value chain development and business development services. More than 15,000 rural households (14% of which were formerly classified as very poor households) increased their annual incomes by an average of US$185 or 22%. More than 8,000 farmers improved their rice yields by an average of 220%, the market share of vegetables and fruit produced by smallholder farmers increased by 17%, and the annual turnover of locally produced handicrafts increased by 29%.

 


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
International or foreign NGO
Foreign state institution
  • National State Institute North
  • Other international or foreign NGO North


Other partners

Co-funding with German Government (BMZ), custodianship of Council for the Development of Cambodia (CDC), and coordination with Ministry of Interior (MoI), Ministry of Agriculture, Fisheries and Forestry (MAFF), Ministry of Commerce (MoC), Council of Ministers (for Siem Reap), provincial and district sub-national administrations, commune and district councils, NGOs, private companies.

Coordination with other projects and actors

KfW “Rural Infrastructure Programme”

GIZ "Decentralization and Administrative Reform" programme

IFAD programme ASPIRE

ILO programme in the province of Siem Reap (social insurance schemes)

SDC supported SNDD Reform, CHAIN

 

Budget Current phase Swiss budget CHF    4’900’000 Swiss disbursement to date CHF    4’362’570
Project phases Phase 2 01.01.2019 - 31.03.2022   (Completed)

Phase 1 01.07.2014 - 31.03.2018   (Completed)