Launch of SDG Financing Portfolio to Assist Royal Government of Cambodia’s Efforts to Build Forward Better

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H.E. Ros Seilava, Secretary of State, Ministry of Economy and Finance

Dr. Navid Hanif, Director of Financing for Sustainable Development, UN DESA

Ms. Lisa Kurbiel, Head of the UN Joint SDG Fund

Excellencies, Ladies and Gentlemen,

Colleagues and friends,

Welcome to the launch of the SDG Financing Portfolio! This portfolio supports the efforts of the Royal Government of Cambodia to recover from the pandemic and accelerate progress towards the achievement of the SDGs.

It's an honour to deliver the opening remarks to launch the two joint programmes in this portfolio. Both these programmes aim to address the growing challenges of financing the Cambodian sustainable development goals (CSDGs), as well as demonstrating how women’s economic participation can be catalyzed through low-cost and reliable financing to women-owned enterprises. These joint programmes are led respectively by UNDP and UNCDF.

In the course of this launch event, we will hear more about these two joint programmes. Before doing so, I would like to frame this morning’s events by asking three questions:

First, what have we learned from the COVID pandemic?

Second, why do SDGs remain relevant in recovering better from the pandemic?

Third, how can these two joint programmes contribute to innovations in financing for the SDGs?

Before I elaborate on these questions, I would like to thank the Joint SDG Fund and the MPTF COVID-19 Fund for investing in these two joint programmes: the Integrated National Financing Framework (INFF) and the Credit Guarantee Scheme for Women Entrepreneurs. I would also like to recognize and convey deepest appreciation to the Ministry of Economy and Finance, and H.E. Ros Seilava for his leadership in the implementation of these two joint programmes. We will also be working closely with participating line ministries and development partners in the coming months, so thanks are in order to our partners as well!

First, what have we learned from the COVID pandemic?

For the UN, the pandemic crisis is an opportunity for transformation.

In the past year, we have witnessed unprecedented shifts in society and in the economy. Massive numbers of jobs lost, industries destroyed at scale previously unimagined, hospitals overwhelmed and schools closed. At the same time, we also saw how governments responded in ways that were previously unthinkable. In Cambodia, we are inspired by the Royal Government’s focus on protecting the most vulnerable through the rapid rollout of emergency cash transfers to at least 700,000 households. The set of policy measures taken subsequently potentially sets the foundation for the expansion of nascent systems for social protection and universal access to health care. 

Before the pandemic, it was not even possible to consider such transformative policies in social protection and universal health care.

Building forward better from the pandemic crisis is an opportunity to achieve the aspirations of the CSDGs by 2030 and to achieve the Royal Government’s vision of becoming a high-income country by 2050.

Second, why do SDGs remain relevant in recovering better from the pandemic?

Many of you would have heard this from me in the past.

The SDGs are a roadmap for humanity.

They encompass almost every aspect of human and planetary wellbeing and, if met, will provide a stable and prosperous life for every person and ensure the health of the planet. The pandemic shows us the wisdom of what is already inherent in the SDGs; the challenges we face cannot be dealt with in isolation.

Good health, no poverty, decent work, quality education, strong and accountable institutions and a shared responsibility to protect and promote human rights are the foundations for building forward an inclusive, sustainable and equitable future.

To truly implement the 2030 Agenda for Sustainable Development, we will need to align economic, social and environmental priorities with sustainable financial flows and policies.

It is imperative to expand the development financing landscape through innovative financing tools and mechanisms, to unlock transformations required in building forward better, towards a more inclusive and greener future.

In Cambodia, while the role of ODA remains relevant, the United Nations commits to work closely with the Royal Government and other partners to diversify, innovate and sustain financing for the CSDGs. We are already working together to promote partnerships in fostering human resource capabilities and resilience, green economy and digital transformation.

While financing is a key instrument, it is not an end in itself – it is a means to improve the lives of the Cambodian population and achieve the CSDGs. Without adequate resources, we are unable to meet these goals.

The Integrated National Financing Framework (INFF), one of the two joint programmes launched today, supports the Royal Government to bring together policy and regulatory frameworks with the required financing mechanisms and options, while at the same time ensuring alignment with economic, social and environmental priorities.

Third, how can these two joint programmes contribute to innovations in financing for the SDGs?

Simply said, by shaping incentives for a better future.

The two SDG financing joint programmes address the following goals:

SDG 17 (Partnerships to achieve the Goal)

SDG 8 (Decent work and economic growth)

SDG 10 (Reduced Inequality)

SDG 5 (Gender equality), and

SDG 1 (Poverty alleviation)

These joint programmes were formulated as an integrated package to protect the needs and rights of people rendered most vulnerable by the pandemic, with particular focus on women. In turning the crisis into an opportunity, we need to address inequality and ensure that no one is left behind in the response to the pandemic. Only then can recovery be transformative and sustainable. We recognize that financing is key to do so.

The joint programmes offer support in the following areas:

• Policy, regulatory arrangements to support the Royal Government access domestic, regional and eventually international capital markets;
• Policy, analytical and technical support to boost capital flows using innovative financial mechanisms, including support to credit guarantee schemes for women-owned enterprises.
• Translation of data to policy and investment decisions.

In a nutshell, our joint efforts aim to develop a coherent and integrated SDG Financing Strategy to support the Royal Government in responding to systemic challenges in socio-economic recovery and building long-term resilience.

Adapting the principles of the Integrated National Financing Framework to the Cambodian context will allow the government to build a demand-driven financing framework, enable the expansion of development resources, and implement a sound financing strategy. The credit guarantee scheme, as part of the innovative financing system, will further provide low-cost and reliable financing to MSME businesses in Cambodia.

In closing, I would like to renew the UN’s call for solidarity in overcoming the COVID-19 pandemic.

No one can achieve the ambition of the 2030 Agenda for Sustainable Development alone.  Especially not at a time of unprecedented challenges.

I am therefore encouraged by your participation in this launch. We need collective action to resource and finance the recovery from the pandemic and accelerating progress towards the SDGs in Cambodia. This is one of the opportunities to jointly support transformative policies of the Royal Government.  

We are stronger together. Thank you.