Cambodia | World Bank

ECO2 Cities: Q & A with Abha Joshi Ghani, Manager of Urban Development

Fri, 26 Jun 2009 18:21:20 GMT

The lifestyle associated with cities is a key driver of global warming yet cities also offer the best means for slowing it, according to the Little Green Data Book 2009 (pdf), released last month at the 17th Session of the United Nations Commission on Sustainable Development. The World Bank’s Manager of Urban Development, Abha Joshi Ghani, looks at some of the challenges facing our rapidly urbanizing world, and offers a vision for the model city of the future.

Abha Joshi-Ghani, Manager
of Urban Development, WB

How big a problem is the pollution caused by cities?

Cities use 70 percent of the world’s energy and related resources, such as coal, oil and natural gas, the main causes of greenhouse gas emissions. They also consume more than 80 percent of the agricultural products and timber harvested in rural areas. But it’s the consumption oriented lifestyle of residents, not cities themselves, that leads to pollution. Interestingly, people who live in city centers tend to use fewer resources and generate less waste than their suburban neighbors. A resident of New York, for example, produces about a third the greenhouse gas emissions of a resident of a more spread-out city like Denver.

Is discouraging the growth of cities an option?

No. With more than half of their GDP coming from cities , the economic future of most developing countries will be determined by the productivity of these burgeoning urban populations. There is also an increasing recognition of the benefits of urbanization on poverty reduction. Moreover, cities can help provide a lifestyle that combines a high quality of life with the least amount of resource consumption. Cities, with their compact form, are much more efficient in delivering services such as water, sanitation, and shelter. It’s also not really possible to discourage the growth of cities. People want to move to cities. Countries that have tried to slow this movement are rarely successful.

What is wrong with the way cities currently operate?

The current design and planning practices for cities are rooted in the 19th century. Hugely successful in their time, these 19th century models are no longer the best solution, and in fact have become part of the problem. The world is now a lot more crowded and complex and requires more efficient, longer-term solutions for servicing urban areas.

What is the ideal city for the future?

The ideal city of the future offers a very compact, concise lifestyle. It’s a city that optimizes its growth potential by creating jobs. At the same time, it offers a good quality of life, good living standards, and services such as water, sanitation, and sewerage and transport. It’s also a city which is less consumption oriented, well managed, financially sound, and a city which is ecologically friendly, inclusive , and well managed. In short it is a sustainable city.

How can cities become more ecological and sustainable, while also playing a vital role as an engine of economic growth and driving force of poverty reduction?

A lot depends on what sort of public transportation systems has been installed, what energy efficiency actions have been taken, what policies are in place and are enforced,what kind of housing is available for its citizens, especially the poor. Is it pedestrian friendly? Do people actually have to travel long distances to get to their jobs?

Some cities are now putting in their main infrastructure arteries. A major transport system is like a skeletal system for a city and can last more than 100 years. If you’re not conscious about what kind of public transport system you’re putting in, the larger the city grows, the more congestion there will be on its roads. The richer the people are, the more they will want to drive. Then, it would be difficult for a city to grow into a more environmentally sustainable city.

That said, there are many things cities can do. Most of them are city-specific, but one thing all cities can do is prepare for the future. The future will bring many changes, and cities that are resilient will be able to respond better to future challenges. Part of that involves fostering robust and respectful communications between city officials and the community. Building in redundancy for key infrastructure is also important. Levels of pollution need to be low enough and managed well enough to ensure that the local and global ecosystem can accommodate them. Sustainability is usually predicated on providing a healthy environment for all residents, particularly the most vulnerable.

Are some cities too well established to change?

I think it’s difficult for a city to suddenly reinvent itself, because a certain amount of the DNA of a city—how it has grown for the last 60, 70 years—will always remain there. But they can definitely determine how they plan to grow as more people move in, and also how they want to rehabilitate areas that need regeneration. Also, cities are organic, they are constantly changing and renewing themselves.

What is the World Bank's Eco² program and how will it help?

“Eco² Cities: Ecological Cities as Economic Cities” is a new program to help cities in developing countries achieve greater ecological and economic sustainability. The program will provide practical and scalable, analytical and operational support to cities. The program also aims to build a global partnership among forward-looking cities in developing countries, global best-practice cities, academia, and international development communities.

Are there any success stories out there?

Some of the cities we look to are Yokohama, Japan, Curitaba, Brazil, Barcelona, Spain, Bogota, Colombia, and the old city in Stockholm called Hammarby.

These cities have introduced more efficient public transport—metro and bus rapid transit--and green spaces. They have consciously brought down their energy use through more efficient street lighting and buildings and being energy efficient in the utilities they run. They’ve introduced bicycle paths and encouraged people to cycle. There are also almost always a few neighbourhoods within big cities that are a little farther advanced than the rest of the city. Good examples are really almost everywhere. More importantly, some cities are just beginning to grow – and they have all the potential to grow in a sustainable way carefully managing their resources.

Sustainable Urbanization – Economically and Ecologically - Is Focus of New Program

Fri, 26 Jun 2009 17:51:22 GMT

Urbanization in developing countries is a defining feature of the 21st century
While urbanization has enabled economic growth, it has contributed to climate change, pollution, congestion, and the growth of slums
The World Bank’s new Eco² Cities Program aims to alter the way cities develop by avoiding growth that fosters inefficient use of energy and resources
Successful cities create opportunities for citizens in an inclusive, sustainable, and resource-efficient way, while protecting the local ecology and global public goods

June 26, 2009—It took the world hundreds of years to build today’s urban space of 400,000 square kilometers of cities.

It will take only about another 30 years to build that same amount of urban space in cities of developing countries, according to projections for urbanization in developing countries.

This rapid urbanization may be the “single greatest development challenge and opportunity in our century,” says a report outlining a new World Bank program called Eco² Cities: Ecological Cities as Economic Cities, launched today in Singapore.

The report notes that while urbanization has enabled economic growth, it has also contributed to environmental and socio-economic challenges, including climate change, pollution, congestion, and the rapid growth of slums.

The Eco² Cities Program is, in effect, a call to alter the way cities develop—to avoid the kind of growth that fosters heavy and inefficient use of energy and resources, while helping cities become climate-friendly economic centers. And to do so quickly.

“We have a once in a lifetime opportunity to plan, develop, build and manage cities that are simultaneously more ecologically and economically sustainable,” says Katherine Sierra, World Bank Vice President of Sustainable Development.

“The Eco² Cities Program is complementary to the ongoing efforts the World Bank and its development partners are making in sustainable development and climate change.”

Eco² Cities Offers Urban Development Framework

Jim Adams, vice president for the World Bank’s East Asia and Pacific region, adds that the pace of urbanization in Asia alone points to the urgency for an integrated economic and ecological approach to city development.

“Eco² is being launched at a critical historic juncture – urbanization in developing countries is a defining feature of the 21st century,” he said. “There is only a short space of time in which to make an impact on how this development takes place.”

Stockholm, Sweden

The Eco² Cities Program has just completed its first phase—a comprehensive three-part book presenting the overall analytical and operational framework of the program.

The program’s next step is to apply this framework in several cities, and eventually be mainstreamed through national-level urban development strategies.

Representatives from Vietnam, the Philippines, and Indonesia will hear about the program first-hand this week at a presentation in Singapore.

Eco² Cities team leader Hiroaki Suzuki and co-team leader Arish Dastur say the program recognizes that successful cities create economic opportunities for their citizens in an inclusive, sustainable, and resource-efficient way, while also protecting and nurturing the local ecology and global public goods, such as the environment, for future generations.

Urban Sustainability Will Pay Compounding Dividends

Cities like Curitiba, Brazil, Stockholm, Sweden, and Yokohama, Japan, have demonstrated that they can greatly enhance their resource efficiency while decreasing harmful pollution and unnecessary waste.

“By doing so, they have improved the quality of life of their citizens, enhanced their economic competitiveness and resilience, strengthened their fiscal capacity, and created an enduring ‘culture’ of sustainability,” says Suzuki.

“What is encouraging is that most of the imaginative and practical solutions used by these cities are affordable and they generate economic returns, including direct and indirect benefits for the poor.”

Adds Dastur: “Sustainable urban planning is in fact an investment in the future of a city’s economy and welfare. An organized approach that consolidates and transfers these lessons to rapidly urbanizing countries can lock in systemic benefits for current and future generations.”

Cities Develop Their Own Eco² Pathway

The Eco² framework is designed to be adapted to local conditions. Each city taking part in the program should use it to develop its own “Eco² pathway” taking into account its own unique set of challenges and constraints, says Suzuki.

Yokohama, Japan

The World Bank plans to provide technical assistance through diagnostics studies that look at how efficiently the city is using resources and identify where improvements could be made.

The diagnostics would also look at the city’s infrastructure systems, urban form, policies and regulations for opportunities to realize greater synergies through integration and coordination of these elements, says Dastur.

The Bank’s technical assistance will also promote the use of life cycle costing—a method that looks at total costs, including resource depletion and environmental impact.

“A fundamental ingredient in the process is the political will to truly make a change – a genuine desire by city leadership and stakeholders to invest in the future of the city and the well-being of the citizens,” says Suzuki. “If we start with that, the knowledge exists, the methods exist, and growing support is now in place.”

Ideal City of the Future Offers ‘Concise Lifestyle’

The Eco² program is an integral part of the World Bank’s new urban strategy, scheduled for formal approval in September. The strategy looks at how to help cities harness their economic growth to improve the quality of life of their citizens.

Abha Joshi-Ghani, sector manager for the World Bank’s global urban unit , says that cities, “if managed and planned in a sustainable way, have the potential to offer a high quality of life with the least amount of resource consumption. They are also more enjoyable places to live.”

“It’s the consumption-oriented lifestyle of residents—not cities themselves—that leads to pollution. Compact, well-managed cities reduce the need for car ownership and long commutes, and are potentially much more efficient in delivering services such as water, sanitation and shelter to large numbers of people,” she says.

“The ideal city of the future is economically and ecologically sustainable,” she adds. “It’s a city which is optimizing its growth potential, creating jobs and attracting people, but at the same time offering a good quality of life, good living standards, services such as water, sanitation, sewerage. It’s also a city which is less consumption-oriented, well managed, financially sound, and which is green and ecologically friendly.”

“Really, it’s a city which offers a very compact, concise lifestyle.”

With 90 percent of urban growth in the next three decades expected to take place in developing countries, Suzuki and Dastur argue what’s needed is a “paradigm shift.”

“We’re building, for all intents and purposes, a whole new world at 10 times the speed, in countries with serious capacity constraints. At the same time, we now know what it takes for cities to be more ecologically sustainable, economically dynamic and socially viable. It would be a tremendous loss if we do not act on this opportunity. The stakes are very high.”

Eco² Builds on Real Cases

Curitiba, Brazil, sustainably absorbed a population increase from 361,000 (in 1960) to 1,797,000 (in 2007), through innovative urban planning, city management and transport planning. The city has the highest rate of public transport ridership in Brazil (45%), the lowest congestion-related economic losses, and also enjoys the lowest rates of urban air pollution. While preserving urban density and vibrancy, Curitiba invested in large parks as ecological assets for flood prevention and recreation. Its waste collection and recycling program allows the poor to exchange collected waste for transport coupons and food.
Stockholm, Sweden, has demonstrated how integrated and collaborative planning and management can transform an old inner city industrial area into an attractive and ecologically sustainable district. Core environmental and infrastructure plans were jointly developed by three city agencies overseeing water, energy and waste. The goal was to create a cyclical system that optimizes use of resources and minimizes waste. For instance, biogas is produced in the wastewater plant from digestion of organic waste and sludge and used as fuel in eco-friendly cars and buses. Some of the initial results have been a 30% reduction in non-renewable energy use, a 41% reduction in water use, and a 29% reduction in global warming potential.
Yokohama, Japan’s second largest city, has demonstrated how an integrated approach to waste management, combined with cooperation from stakeholders, particularly citizens, could reduce solid waste by 38.7% during a period when the population actually grew by 170,000. The city conducted environmental education and promotional activities to enhance public awareness and call for collaborative action. The resulting waste reduction allowed Yokohama to shut down two incinerators, saving the city $1.1 billion, as well as $6 million in annual operation and maintenance costs.

Cambodia - Education Sector Support Project : procurement plan

Wed, 03 Jun 2009 04:00:00 GMT

ASEAN-UN-World Bank Set to Collaborate to Reduce Disaster Risk

Mon, 18 May 2009 20:45:00 GMT

Contacts:

Public Outreach and Civil Society Division, ASEAN Secretariat
public@asean.org, +6221 7262991

East Asia Region Disaster Management Unit, World Bank
Zeeshan Suhail – ZSuhail@worldbank.org
+62-852-3759-0464

BALI, Indonesia, May 18, 2009 – The Association of Southeast Asian Nations (ASEAN) Secretariat, the United Nations International Strategy for Disaster Reduction (UNISDR) and the World Bank announced today a cooperation program to strengthen disaster risk reduction and disaster management in Southeast Asia.

This program aims to help ASEAN reduce its vulnerability to natural hazards, thus protecting its citizens from the impact of extreme weather events in the future. The program is the focus of the Memorandum of Cooperation (MoC) on Disaster Risk Reduction, a tripartite agreement between the ASEAN Secretariat, the UNISDR and the World Bank.

The program lays a framework for technical support from the UN and the World Bank to help ASEAN formulate and implement strategies and action plans for disaster risk reduction and management. The objectives of this program include (i) building ASEAN’s capacity in the areas of disaster risk reduction and climate change adaptation; (ii) mobilizing resources for the implementation of disaster risk reduction initiatives in ASEAN; and (iii) helping ASEAN policy-makers gain knowledge of effective and practical ways to reduce disaster risks.

“ASEAN has been addressing disasters, natural or otherwise, as and when it happens. The region where ASEAN is located geographically is one that is prone to disasters. It sits between several tectonic plates causing earthquakes, volcanic eruptions and tsunamis. The region is also located in between huge oceans namely the Pacific and the Indian oceans causing seasonal typhoons and in some areas, tsunamis”, said Dr. Surin Pitsuwan, the Secretary-General of ASEAN. “With 570 million people in the region, it is time for us to be better prepared for future disasters by empowering ourselves with better techniques and coordinating mechanisms involving the governments and civil societies of ASEAN. Our tripartite program with the UN and the World Bank is innovative as we would capitalize the expertise and strengths of the three organisations to help achieve our common vision of a disaster-resilient and safer community”.

Recent natural disasters in Asia – including the Indian Ocean tsunami in 2004, the Yogyakarta earthquake in 2006 and the cyclone Nargis in Myanmar in 2008 – highlight the region’s vulnerability. As more and more ASEAN citizens move into cities in search of better opportunities, they also face greater risks from natural hazards. Most major ASEAN cities are located near rivers or the ocean, which heightens their vulnerability to unusual weather events induced by climate change. In addition, many ASEAN countries have a long history of annual floods, droughts, and cyclones – each of which could cause catastrophic loss of life and property.

Following the 2004 Indian Ocean tsunami, ASEAN countries signed the ASEAN Agreement on Disaster Management and Emergency Response, reaffirming the countries’ commitment to reducing disaster losses and improving response to disaster emergencies. It is expected that the agreement will enter into force soon following ratifications by two remaining countries. “When entered into force, the agreement will put in place the coordinating measures and mechanisms required to help ASEAN achieve a disaster-resilient and safer community. Therefore, our tripartite programme with the UN and the World Bank is timely as ASEAN is gearing up to better prepare for future disasters”, said Dr. Surin.

“Natural disasters tend to have more profound effects on the lives and livelihoods of the poorest and most vulnerable people,” said the World Bank Vice President for the East Asia and Pacific Region, James Adams. “As we’re focusing on surviving the global economic downturn, we must not lose sight of that. ASEAN’s experience shows how vulnerable its members are to natural hazards. The impacts of climate change and the effects of rapid urbanization only increase that vulnerability.”

The ASEAN Secretariat-UNISDR-World Bank cooperation program builds on the experience of multi-donor partnership support following the Indian Ocean tsunami of 2004, the Yogyakarta earthquake of 2006 and Cyclone Nargis in Myanmar of 2008.

Concerted efforts in the aftermath of these events helped the affected countries assess the extent of loss and damage and brought much-needed relief and recovery assistance to the victims. The three partners have now agreed to set up a joint consultative mechanism at the working level to strengthen coordination in disaster relief, culminating in the Memorandum of Cooperation.

“Disaster reduction is a critical challenge for Asia. I have followed closely how several Asian countries have made good progress in building their resilience to natural hazards. Much more needs to be done, and I am confident that Asia has the experience, resources and technical knowledge to achieve fast results”, says Margareta Wahlström, the UN’s Assistant Secretary-General for Disaster Risk Reduction. “We need a radical shift in development practices and planning and, as a priority, merging disaster risk reduction, poverty reduction and climate change adaptation into a single, coherent and innovative approach.”

The DRM Knowledge Notes Series was also launched by the Governor of Bali. The Director of the East Asia Region's Sustainable Development Department, John Roome, presented the Governor with a set of the first notes published in the series. The East Asia Region's Disaster Management Team will publish these knowledge notes on a regular basis.

The joint cooperation program was launched today at the Bali Disaster Risk Reduction Forum, the first tripartite forum and training workshop. The Forum featured sessions on climate change adaptation and strengthening early warning systems as well as risk assessments. With over 100 participants from all ten Member States of ASEAN, UN and other partner agencies, International Financial Institutions and the civil society, the Forum provided a platform for ASEAN policy makers to interact with global and regional experts as well as each other on disaster risk reduction and management.

For more information about ASEAN, visit: www.asean.org

For more information about the United Nations ISDR, visit: www.unisdr.org

For more information about the World Bank, visit: www.worldbank.org

World Bank & ASEAN Announce Partnership for Regional Infrastructure Finance Network

Thu, 09 Apr 2009 13:39:48 GMT

Contact:

In Bangkok : Pichaya Fitts, mobile 084-752-1783
(from abroad 66-84-752-1783)

pfitts@worldbank.org

In Washington: Lester Dally

(202) 352-0363

ldally@worldbank.org

Pattaya, Thailand– April 9, 2009: The World Bank and the Association of South East Asian Nations (ASEAN) announced a new strategic partnership today to facilitate innovative financing of much needed infrastructure.

World Bank Vice President for the East Asia & Pacific region, James Adams welcomed the announcement of the partnership by the ASEAN Finance Ministers which was included in their meeting’s Joint Ministerial Statement.

“This is a partnership with the potential for major development impact in south-east Asia,” Mr Adams said. “The goal is to bring together ASEAN’s regional cooperation platform with the World Bank’s operational experience so that policymakers can access innovative approaches to financing their infrastructure needs.”

The World Bank – ASEAN Infrastructure Finance Network (IFN) is a platform for knowledge exchange between the public and private sectors which will support the flow of private capital for infrastructure development in the region.

IFN aims to provide global knowledge and training to national and sub-national governments. The focus will be on new approaches to financing infrastructure projects and on establishing credit culture in public sector infrastructure operations. It also aims to share models of excellence in infrastructure finance from around the globe with practitioners and policy makers.

Mr. Adams said the World Bank’s partnership with ASEAN is aligned with the Bank Group’s broader emphasis on collaborating with key regional and global development institutions.

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Cambodia - Smallholder Agriculture and Social Protection Support Operation Project

Thu, 09 Apr 2009 04:00:00 GMT

Chance of a Bottoming Out in China Provides Ray of Hope on an Otherwise Gloomy Horizon, Says World Bank’s Review Of East Asian And Pacific Economies

Wed, 08 Apr 2009 02:40:26 GMT

MEDIA CONTACTS:
In Cambodia:
Bou Saroeun
sbou@worldbank.org

In Washington, DC:
Lester Dally (202) 458-4475
Ldally@worldbank.org

In Tokyo:
Tomoko Hirai (81-3) 3597-6650
Thirai@worldbank.org
Mohamad Al-Arief (202) 352-4745
Malarief@worldbank.org

Cambodia, April 7, 2009 – As countries in the East Asia and Pacific region prepare themselves for an expected surge in joblessness resulting from the global slowdown, a ray of hope may be emerging with signs of China’s economy bottoming out by mid-2009, says the World Bank's latest half-yearly assessment of the region's economic health.

The latest East Asia and Pacific Update, titled Battling the Forces of Global Recession, says a recovery in China – fueled largely by the country’s huge economic stimulus package – is likely to begin this year and take full hold in 2010, potentially contributing to the region’s stabilization, and perhaps recovery. But with China still heavily reliant on exports to world markets that continue to contract, the Update warns that a truly sustainable recovery in the East Asia and Pacific region ultimately depends on developments in the advanced economies.

In the face of much weaker exports and a slowing down in domestic demand, the World Bank is forecasting that real GDP growth in developing East Asia will reach only 5.3 percent in 2009, down from 8 percent in 2008 and 11.4 percent in 2007. (Last month, in its China Quarterly Update, the Bank downgraded its forecast for China’s growth to 6.5 percent this year from 13 percent in 2007.)

The region’s low income countries are expected to be among the worst affected by the slowdown and the limited room for government intervention to help those in need. Cambodia is likely to experience the strongest decline in growth because of declines in the garment and tourism sectors, while Lao, Mongolia, Papua New Guinea and Timor-Leste will be especially hard hit due to lower commodity prices.

On departing for the 13th ASEAN Finance Ministers’ Meeting in, Pattaya, Thailand later this week, the World Bank’s Vice President for the East Asia and Pacific region, Jim Adams, applauded the region’s governments for responding quickly to the financial crisis with multi-pronged policy efforts – from fiscal stimulus packages to monetary policy interventions to social safety net programs.

“The measures the authorities have taken to counteract the crisis across the region are helping to cushion the impacts on the most vulnerable people,” Adams said. “With unemployment likely to increase – especially as jobs in manufacturing and construction disappear - social protection efforts will have to expand to meet very real human needs.”

Weaker growth is expected to slow the pace of poverty reduction in the region, with over 10 million more people likely to stay below the poverty line this year compared to estimates of a year ago, the Update says. Cambodia, Malaysia, Thailand are projected to see absolute increases in poverty this year.

The report says the region is stepping-up efforts to support the region’s poor and vulnerable people, especially in the middle-income countries. In late 2008, China provided a one-time cash transfer to 74 million people, including to millions of rural householders, and introduced tax cuts as well as a major health reform package to increase access to healthcare for the poor. Indonesia has reached out to 19 million poor households by reviving a targeted cash assistance program and the Philippines is boosting the number of poor people covered by its recently introduced conditional cash transfer program.

“There is no doubt that the East Asia and Pacific region is confronting very difficult times,” said Vikram Nehru, the World Bank's Chief Economist for the region. “The countries that are able to tackle short-term challenges while staying focused on longer-term priorities will likely emerge better placed after the crisis to resume growth.”

As the world economy slowly recovers, East Asian and Pacific countries can achieve high rates of growth if they boost their competitiveness, penetrate new markets and support their companies to innovate rather than imitate, Nehru said.

CAMBODIA

Reflecting its exposure to the global financial turmoil, Cambodia’s economy is expected to contract by 1 percent in 2009 after slowing to 5.5 percent in 2008 following a period of sustained high growth. The forecasts for 2010 are highly uncertain, but growth could be in the 0-4 percent range if external demand is supportive.

“The remarkable achievements of the past decade and the economy’s resilience are being tested by the global recession,” said World Bank Senior Country Economist Stephané Guimbert. “The ray of hope for Cambodia lies in its strong growth potential in the medium term.”

Growth could resume in 2010, although uncertainties remain quite high, Mr. Guimbert added.

The World Bank is supporting East Asia and Pacific countries as they face the impacts of the financial crisis through increased financing and stepped-up policy advice on ways to protect the poor and vulnerable.

For the full report, please visit www.worldbank.org/eapupdate

For more information about the World Bank’s work in Cambodia, please visit www.worldbank.org/kh

Chance Of A Bottoming Out In China Provides Ray Of Hope On An Otherwise Gloomy Horizon, Says World Bank’s Review Of East Asian And Pacific Economies

Tue, 07 Apr 2009 03:30:00 GMT

Contacts:

In Washington, DC:

Lester Dally (202) 458-4475

Ldally@worldbank.org

In Tokyo:

Tomoko Hirai (81-3) 3597-6650

Thirai@worldbank.org

Mohamad Al-Arief (202) 352-4745

Malarief@worldbank.org

Tokyo, April 7, 2009 – As countries in the East Asia and Pacific region prepare themselves for an expected surge in joblessness resulting from the global slowdown, a ray of hope may be emerging with signs of China’s economy bottoming out by mid-2009, says the World Bank's latest half-yearly assessment of the region's economic health.

The latest East Asia and Pacific Update, titled Battling the Forces of Global Recession, says a recovery in China – fueled largely by the country’s huge economic stimulus package – is likely to begin this year and take full hold in 2010, potentially contributing to the region’s stabilization, and perhaps recovery. But with China still heavily reliant on exports to world markets that continue to contract, the Update warns that a truly sustainable recovery in the East Asia and Pacific region ultimately depends on developments in the advanced economies.

In the face of much weaker exports and a slowing down in domestic demand, the World Bank is forecasting that real GDP growth in developing East Asia[1] will reach only 5.3 percent in 2009, down from 8 percent in 2008 and 11.4 percent in 2007. (Last month, in its China Quarterly Update, the Bank downgraded its forecast for China’s growth to 6.5 percent this year from 13 percent in 2007.)

Growth is projected to slow further

(Percent change y-y unless indicated otherwise)

	2007	2009f	Difference, 2009-2007


Developing East Asia	11.4	5.3	-6.1
Indonesia	6.3	3.4	-2.9
Malaysia	6.3	-1.0	-7.3
Philippines	7.2	1.9	-5.3
Thailand	4.9	-2.7	-7.6
China	13.0	6.5	-6.5
Vietnam	8.5	5.5	-3.0
Cambodia	10.2	-1.0	-11.2
Lao PDR	7.5	5.0	-2.5
Mongolia	9.9	2.7	-7.2
Papua New Guinea	6.2	4.7	-1.5

Source: The World Bank; f=forecast

“The measures the authorities have taken to counteract the crisis across the region are helping to cushion the impacts on the most vulnerable people,” Adams said. “With unemployment likely to increase – especially as jobs in manufacturing and construction disappear - social protection efforts will have to expand to meet very real human needs.”

Weaker growth is expected to slow the pace of poverty reduction in the region, with over 10 million more people likely to stay below the poverty line this year compared to estimates of a year ago, the Update says. Cambodia, Malaysia and Thailand are projected to see absolute increases in poverty this year.

“There is no doubt that the East Asia and Pacific region is confronting very difficult times,” said Vikram Nehru, the World Bank's Chief Economist for the region. “The countries that are able to tackle short-term challenges while staying focused on longer-term priorities will likely emerge better placed after the crisis to resume growth.”

For the full report, please visit www.worldbank.org/eapupdate

[1]Developing East Asia includes China, Indonesia, the Philippines, Thailand, Vietnam, Cambodia, Lao PDR, Mongolia, Papua New Guinea and the island economies of the Pacific.

Cambodia newsletter Vol. 7 (No. 4)

Wed, 01 Apr 2009 04:00:00 GMT

In this issue: best wishes for a happy Khmer new year 2009 - trade development support program launched; making trade easier to attract investors; Merit Based Performance Initiative (MBPI) for improved service delivery; and small grantees share lessons learned.

Trade Development Support Program Launched

Mon, 23 Mar 2009 04:48:20 GMT

Contacts:
Bou Saroeun (855) 12-217-301

sbou@worldbank.org

Stephane Guimbert

sguimbert@worldbank.org

Julian Clarke

jclarke1@worldbank.org

PHNOM PENH, March 23, 2009 – The Cambodian Ministry of Commerce, together with four of its development partners, today launched a $12.6 million Trade Development Support Program (TDSP) aimed at assisting Cambodia to expand its international trade. The program is financed by the European Commission, the Danish International Aid Agency (Danida) and the United Nations Industrial Development Organization (UNIDO), and it will be administered by the World Bank.

The program focuses on legal reforms, trade facilitation and product standards, and is designed to empower the Royal Government of Cambodia (RGC) to facilitate trade by improving regulations and internal processes. TDSP is part of the trade sector-wide approach (known as the Trade SWAp), which unites all activities funded by development partners to assist the RGC to enhance its trade potential. The Trade SWAp covers activities in different areas—from fisheries to rubber and tourism—through addressing legal reform, product and service development for exports and capacity development for trade, and takes on board many of the RGC’s ongoing reforms in such areas as decentralization and public finance management.

H.E. Dr. Cham Prasidh, Senior Minister, Minister of Commerce, said in his speech that, with support from development partners, the RGC believes the Trade SWAp will strengthen partnerships with the private sector.

“It is a strong commitment of the RGC to translate Aid for Trade into concrete actions that will contribute to a more robust private sector and overall income generation,” said H.E. Dr. Prasidh. “Since Cambodia is the first nation to apply a sector-wide approach in the trade sector, it is a proud moment for the Minister of Commerce and Development Partners to say that ‘The Trade SWAp is established officially today”. This workshop is a key initiative in providing sources of inspiration and is a stepping stone for enhancing trade development, which is an essential element in sustaining economic growth in Cambodia.”

“With global trade expected to shrink in 2009 for the first time in 27 years and Cambodia’s economy under real pressure, we need to find wider export markets and bigger investors for Cambodia,” said Qimiao Fan, World Bank Country Manager. “We aim to help Government agencies make business easy for local and foreign business people who want to contribute to Cambodia’s growth.”

“For us, it is important to help Cambodia benefit to the maximum extent from the duty-free access that it enjoys to the vast market of the European Union,” said Rafael Dochao Moreno, Chargé d'Affaires a.i. of the Delegation of the European Commission. "Our $9 million contribution will go a long way to increasing Cambodia's trade."

Tom Barthel Hansen, Head of Representation, of Danida said: "Danida is proud to be a partner in this program - which has even more relevance now as we face a major global economic crisis. We want to support the strengthening of Cambodia's economic base and ensure that investors and local businesses are able to benefit from global trade. This will be critical to sustaining growth into the future, and improving the livelihoods of many millions of Cambodians.”

Ayumi Fujino, Head of Regional UNIDO office said: “As the UN agency responsible for industrial development, UNIDO is committed to contribute to the enhancement of trade capacity in order for Cambodian business and industry sectors to fully participate in and benefit from the opportunities in the global market. It is our great pleasure, therefore, to be a part of this profound initiative made possible through a strategic alliance with the Government and development partners and to witness its commencement.”

xxx

To get more information on the World Bank’s work on trade, please visit: www.worldbank.org/trade

To know more about the World Bank's projects and programs in Cambodia,
visit www.worldbank.org/kh

World Bank Cambodia oil and gas special supplement : country experience with petroleum revenue funds - part 2

Sun, 01 Mar 2009 05:00:00 GMT

A number of developing countries have established petroleum revenue funds. A recent study constructed a scoreboard comparing sovereign wealth funds from around the world, most of them deriving income from petroleum revenues. Among developing countries, Timor-Leste and Azerbaijan run two highest ranking petroleum revenue funds. This note describes and contrasts the funds in these countries.

Cambodia newsletter Vol. 7 (No. 3)

Sun, 01 Mar 2009 05:00:00 GMT

In this issue: Cambodia needs to address constraints to future growth, new World Bank report says; and world downturn gives new focus to report on Cambodia's growth.

Cambodia - Education Sector Support Scale Up Action Program Project : procurement plan for June 2008 to December 2009

Sun, 01 Mar 2009 05:00:00 GMT

Cambodia - Road Asset Management Project : procurement plan

Tue, 24 Feb 2009 05:00:00 GMT

Cambodia - Land Management and Administration Project : procurement plan for 2008-2009

Wed, 18 Feb 2009 05:00:00 GMT

Cambodia Needs to Address Constraints to Future Growth, New World Bank Report Says

Thu, 05 Feb 2009 05:00:00 GMT

Contacts:
Stephane Guimbert
Tel. (855-23) 217-301
Email: sguimbert@worldbank.org
Saroeun Bou
Tel. (855-23) 217-304
Email: sbou@worldbank.org

PHNOM PENH, February 5, 2009 – As Cambodia copes with the immediate effects of the current global crisis, the country also needs to address domestic factors that could hold back future economic growth, said the new World Bank report on Cambodia released Thursday.

“This report is our latest contribution to the debate on growth in Cambodia,” said World Bank Cambodia Country Manager, Qimiao Fan, of the report. Titled Sustaining Rapid Growth in a Challenging Environment, the report builds on the analyses of a dozen existing studies and new background materials. It identifies the main potential sources of growth as well as important constraints, and outlines policy options to address the challenges.

Over the past decade, Cambodia has made a remarkable progress in several areas. Peace and stability have enabled ordinary Cambodian citizens to go about their normal lives, and the government to deliver basic services to the people. With better access to healthcare and clean water, the average Cambodian now enjoys a longer life than in the past. More Cambodian children are also now going to schools.

Throughout the past decade, the Cambodian economy grew rapidly. GDP growth averaged 9.8 percent annually, and was above 10 percent for four consecutive years ending 2007. Such impressive growth created plenty of employment opportunities outside the farm sector, helping to lift millions of Cambodians out of poverty. Recent data showed that the number of people living under the poverty line in Cambodia has fallen to 30 percent in 2007, compared with 45-50 percent during 1993/1994.

The new World Bank report, however, points out that growth has been driven mainly by four sectors: garments, tourism, construction, and agriculture. By its dependence on these few sectors, and on the influx of foreign direct investment, Cambodia is just as vulnerable to the global recession as any of its Southeast Asian neighbors. This despite the fact that its commercial banks have not been directly impacted by the financial crisis.

In addition, some of the factors that have contributed to growth in the past are one-off opportunities or are not expected to continue improvement in the near future, said Stephane Guimbert, the Bank’s Senior Economist in Phnom Penh, who led the team that prepared the report. Unsustainable use of natural resources also threatens to deplete the national assets upon which a good portion of growth is based. Furthermore, complex and poorly implemented regulations, combined with a lack of reliable public services such as commercial courts, will continue to constrain businesses - which bodes poorly for future growth.

“The next episode in Cambodia’s story remains highly uncertain,” Mr. Guimbert said.
“The achievements of the past decade are very fragile; the base of Cambodia’s economic growth appears narrow; and development has left some of the poor Cambodians with few assets. And the winds that once served Cambodia well – global trade and investment flows – seem to have lost its strengths, at least temporarily.”

Despite the challenges, Cambodia has a strong potential to continue high growth in the future, the report suggested. The country is endowed with relatively abundant land and other natural resources. Sustainable use and fair allocation of these resources could provide more growth opportunities going forward. Cambodia’s labor costs, meanwhile, remain low compared with other countries in the region.

Though exports are relatively concentrated into a few products to a few destinations, this leaves ample room for diversification and growth. Improving governance would also be conducive to long-term growth; as an improved business environment tends to encourage more business enterprises, creating more jobs for the people.

To achieve all of the above potential, resolute action will be required, the report suggests.

A more focused growth strategy and better coordination among the various players and stakeholders in Cambodia’s development.
Accelerating Cambodia’s integration into the regional economy.
More sustainable and transparent management of natural resources.
Improving the business environment and modernizing industrial policy.
Larger public investments in agriculture, infrastructure, and education.

Successful government interventions could keep Cambodia’s GDP growth at 6 or 7 percent annually, once the external environment becomes more favorable, the report concludes.

Sustaining Rapid Growth was initiated at the request of, and guided by, the Supreme National Economic Council (SNEC), the policy research and planning body of the Royal Government of Cambodia. It was distributed during the Third Cambodia Economic Forum, a conference hosted by the SNEC and supported by the Asian Development Bank, the United Nations Development Programmed, and the World Bank.

The report is available for download at www.worldbank.org/kh/growth.

Sustaining rapid growth in a challenging environment : Cambodia country economic memorandum

Sun, 01 Feb 2009 05:00:00 GMT

Many countries succeed in generating high economic growth at some point in their history. But only a very few manage to sustain rapid growth for an extended period. Only such a prolonged period of rapid growth can have a significant impact on income per capita, and such an impact often brings with it many other important changes to people's lives. It has more than doubled its income per capita over the past decade, from US$285 in 1997 to US$593 in 2007. This doubling has been accompanied by the trappings of a profound structural transformation: integration into the global economy; a shift of jobs from agriculture to manufacturing; a demographic transition; and migration from rural to urban areas. Translating into jobs and better services, these outcomes have led to a significant reduction in poverty, as well as improvements in health and education. This report aims to contribute to policymakers'and citizens'thinking about growth in Cambodia in three ways: (i) it reviews the experience of the past decade and draws the Cambodia-specific lessons of this period; (ii) it sketches the major potential sources of growth with the aim of assessing the barriers to growth; and (iii) it outlines policy options for addressing these barriers.

Linking citizens and the state : an assessment of civil society contributions to good governance in Cambodia

Sun, 01 Feb 2009 05:00:00 GMT

Governance is recognized as the most critical challenge for development in Cambodia. Good governance requires not just government commitment but active demand from citizens and civil society. Social accountability refers to the broad range of actions and mechanisms (beyond voting) that citizens can use to help the government be more effective and accountable, as well as actions on the part of government, civil society, media, and other societal actors that promote or facilitate these efforts. This study proposes a range of recommendations, targeting government, civil society and development partner stakeholders. These are aimed at creating a more enabling environment for social accountability in Cambodia; developing necessary capacities and skills (within both civil society and government), and; expanding and institutionalizing spaces and mechanisms for citizen-state dialogue and negotiation, especially at the local level. The report also emphasizes the timeliness of fostering a culture of'downwards accountability'at all levels and attitudinal and behavioral changes on the part of all key stakeholders.

Cambodia newsletter Vol. 7 (No. 2)

Sun, 01 Feb 2009 05:00:00 GMT

In this issue: new World Bank country director visits Cambodia; and global crisis heightens Cambodia's need for agriculture reform and social safety net, says new World Bank country director.

ABC International : RNK environment management plan

Wed, 21 Jan 2009 05:00:00 GMT

The report includes environmental assessment and action plans for the Demand for Good Governance (DFGG) Project, in Cambodia. Negative environmental impact includes: potential health and safety issues associated with the repair and operation of the transmitter and the transmitter tower. These impacts will be alleviated by relocation of the transmitter and relocation of the residents exposed to excessive levels of electromagnetic radiation (EMR). An Environmental Management Plan (EMP) will need to be carried out to address the impacts of construction and operation of the tower and antennas at the new location and of decommissioning the existing tower, in accordance with the Bank. The EMP will be implemented, monitored and evaluated during the DFGG project implementation period in a manner satisfactory to the Bank; and this requires preparation of a Resettlement Plan satisfactory to the Bank, including consultations with the displaced and host populations.