Launch of the Cambodia’s Development Finance Assessment Report

Welcome Remarks By Ms. Kristin Parco, Resident Coordinator, ad interim, UN Cambodia

• H.E. Ros Seilava, Secretary of State, Ministry of Economy and Finance;
• Excellencies ambassadors;
• Representatives from Ministries, Development Partners, UN Agencies, International and Local NGOs;
• Representatives from Research Institutions, Private Sectors and Associations;
• Excellencies, ladies and gentlemen,
• Colleagues and friends!

Good afternoon!

I am pleased to welcome to the launch of Cambodia Development Finance Assessment (DFA) Report!

On behalf of UN Cambodia, it is my honour to deliver the opening remarks in the launch of this report. I would like to thank the Joint SDG Fund for investing in the Integrated National Financing Framework (INFF) Joint Programmes, which enabled us to produce the DFA report as an output assessing the current development finance landscape and identify opportunities for elaborating the financing of sustainable development in Cambodia.

I would also like to convey my deepest appreciation to the Ministry of Economy and Finance, and especially  H.E. Ros Seilava for his leadership as a Co-Chair of the Steering Committee in the implementation of UN SDG Financing portfolio of joint programmes to join us today. I am also grateful for H.E. Chea Serey, Dr. Chheang Vannarith and Dr. Radhika Lal who will be contributing their insights in the panel discussion as part of the launch event.

Excellencies, Ladies and Gentlemen!

In the course of this launch event, we will hear more about the report from the presentation and the panel discussion. Prior to do so, let me emphasize that the overarching objective of the DFA study is to provide the Royal Government of Cambodia (RGC) with an overview of development finance flows available to support investment climate in the country.

The report provides general policy recommendations to support national development priorities of the Royal Government of Cambodia (RGC), and specifically a few key recommendations outlined to the Ministry of Economy and Finance (MEF),  to maximize the level of financial flows, and their quality and allocation, in order to deliver on long-run development objectives as well as on advancing the Cambodia Sustainable Development Goals.

The COVID-19 pandemic has hit many developing countries hard, including Cambodia. The current emergency situation and the serious financial implications might potentially create debt burden and financial losses, which require us to act swiftly and anticipate near-term and future policy implications to protect the economy and the most marginalized.

Today’s event provides an opportunity for continuing discussion among the government agencies, development partners, and key relevant stakeholders including private sectors who join us today in order to further support the RGC’s efforts in building forward better from the pandemic crisis and accelerating the achievement of Cambodia’s SDGs.

The pandemic has triggered setbacks to social and economic outcomes of Cambodia and countries around the world. The Cambodian economy contracted by 3.4% in 2020. Poverty rate is estimated to have increased significantly. Thanks to the Royal Government’s swift social protection measures, including the cash transfer program, millions of people were prevented from falling into deeper poverty and the economy was protected from dropping into a larger contraction.

Amidst these disruptions, for all of us here, we believe the pandemic crisis is an opportunity for transformation. Since the past year, we are stepping into a new era of challenges and transformations. This crisis gives us an opportunity to create transformative policies in social protection and universal health care. It also reminds us that we might not be able to go back to ‘business as usual but create a new futures for the next generation. To truly implement the 2030 Agenda for Sustainable Development, economic, social, and environmental priorities must be aligned with sustainable financial flows and policies. Thus, it is critical to broaden the development financing landscape through innovative financing tools and mechanisms in order to unlock the transformations required to move forward better, towards a more inclusive and greener future. These innovative financing tools, including Impact investment, Public-private partnerships, Enterprise challenge fund, Biodiversity Finance (BIOFIN), green and blue bonds and Corporate social responsibility law, are explored and detailed in the DFA report.

In the medium to long run, there is a need for an integrated approach to financing. UN along with the Royal Government of Cambodia are reassessing our medium-term priorities with a focus on interconnected investment areas that can deliver multiple long-term benefits for greener, gender-equitable, more inclusive, and more resilient development. Thematic priorities such as climate and environmental issues, equality, gender equality and inclusivity, job creation, health and social protection, among others, are emerging in many national contexts. Implementing the new generation of national plans that can advance these priorities and build forward better will require robust financing strategies.

In order to support robust financing strategies as well as to diversify, innovate, and sustain financing for national development objectives and the Cambodia’s SDGs, the UN commits to working closely with the Royal Government and other partners. Among our support, the Integrated National Financing Framework (INFF) will allow the government to build a demand-driven financing framework, enable the expansion of development resources, and implement a sound financing strategy. And the DFA is an analytical tool to help us shape the inception phase in the process of operationalizing an INFF. I believe that with a proper use of financing, we will be able to help improve the lives of the Cambodian, achieve the SDGs, and develop sustainably so that all Cambodians can enjoy peace and prosperity.

Finally, I'd like to reiterate the UN's call for international cooperation in combating the COVID-19 pandemic. No one person or organization can achieve the ambitious goals of the 2030 Agenda for Sustainable Development on their own. Especially now, when the stakes are so high. As a result, your participation in this launch demonstrates your commitment for further enhancing collaboration. We need swift, agile and collective action to resource and finance the recovery from the pandemic while also accelerating Cambodia's progress toward the SDGs. This is one of the opportunities to work together to support the Royal Government's transformative policies.

I trust that the event will make a useful contribution as it shares the results and policy recommendations and serves as a discussion platform, and I look forward to the panel discussion and Q&A session.

Many thanks.