young sokphea thesi proposal local governance in decentralized local government in cambodia- case...

8/14/2019 Young Sokphea Thesi Proposal Local Governance in Decentralized Local Government in Cambodia- Case Studies of Commune Councils

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LOCAL GOVERNANCE IN DECENTRALIZED LOCAL

GOVERNMENT IN CAMBODIA: CASE STUDIES OF COMMUNECOUNCILS

by

Young Sokphea

A thesis proposal submitted in partial fulfillment of the requirements for theDegree of Master of Science in Regional and Rural Development Planning

Examination Committee: Dr. Soparth Pongquan (Chairperson)Dr. Mokbul M. AhmadDr. Kyoko Kusakabe

Nationality: CambodianPrevious Degree: Bachelor of Science in Agricultural Economics and Rural


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Table of Contents

CHAPTER TITLE ......................................................................................................... PAGE

List of Tables.......................................................................................................iiList of Figures .....................................................................................................iiList of Map ..........................................................................................................iiAbbreviations .................................................................................................. iiiii

I INTRODUCTION................................................................................................11.1 Background ...............................................................................................11.2 Statement of the Problem..........................................................................21.3 Research Questions ...................................................................................51.4 Research Objectives..................................................................................51.5 Rationale of the Research .........................................................................51.6 Conceptual Framework.............................................................................71.7 Scope and Limitations of the Research...................................................10

II LITERATURE REVIEW ..................................................................................122.1 Concept of Governance...........................................................................122.2 Principles of Good Governance ..............................................................142.3 Actors in Governance .............................................................................152.4 Impacts of Governance in Development.................................................172.5 Concept of Decentralization ...................................................................192.6 Decentralized Local Government ...........................................................202.7 Decentralization and Local Governance in Asia ....................................212.8 Governance Policy in Cambodia ............................................................232.9 Public Administrative Reform in Cambodia...........................................242.10 Local Governance Performance of Decentralized Local Government in

Cambodia ................................................................................................252.11 Decentralized Planning and Local Development in Cambodia ..............26

III RESEARCH DESIGN.......................................................................................313.1 Type of Research and Research Design..................................................313.2 Selection of the Study Area ....................................................................313.3 Selection of CCs Members and Sampled Households............................333.4 Data Sources and Data Collection Methods ...........................................353.5 Data Analysis and Technique .................................................................37


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List of Tables

Table 2.1 Various Definitions of Good Governance 13Table 2.2Key Components of Good Governance 14

Table 2.3Roles of Actor in Governance 15

Table 2.4 Levels of Local Government in Asia 20

Table 2. 5: Commune Development Planning Process Applied in Research 27

Table 2. 6: NCDD's Development Program and Resources 2009 30

List of Figures

Figure1.1 Conceptual Framework of the Research 9

Figure 2.1: Main Actor in Governance and their Relationship 17

Figure 2.2: Decentralization towards Local Good Governance and Services Delivery 21

Figure 2.3: Dimension of Citizen-Centre Local Governance 22

Figure 2. 4: Local Good Governance Principles 23

Figure 2. 5:Governance Reform in Cambodia 24

Figure 2. 6: Public Administrative Reform and Good Governance in Cambodia 25

Figure 2. 7: Commune Development Planning Cycle Applied in Research 29

Figure 3. 1: Structure of Selected Communes and its Population to be interviewed 33

Figure 3.2: Sampling Procedures and Methods 34

Figure 3.3: Research Design 40

List of Map

Map 3.1: Map Showing the Study Area of Khnach Romeas and Prey Khpos Communes 32

List of Annexes

Annex I: Research Coordination Schema 47

Annex II: Checklist for Secondary Data Collection 55

Annex III: A Checklist for Key Informants Interview 56

Annex IV: Questionnaires 58

Annex V: A Checklist for Group Discussion of CCs 74


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Abbreviations

ADB Asian Development BankAFDB African Development BankAusaid Australian Agency for International DevelopmentCAR Councils for Administrative ReformCARERE Cambodia Resettlement and ReintegrationCBOs Community Based OrganizationsCCF Commune Councils FundCCs Commune CouncilsCDC Councils of Development of CambodiaCDP Commune Development PlansCIDA Canadian International Development AgencyCIP Commune Investment PlanCMDG Cambodian Millennium Development GoalsCOMFREL Committee for Free and Fair Elections in CambodiaCSOs Civil Society Organizations

DANIDA Denish International Development AgencyDDLG Democratic Development and Local GovernanceDFID Department for International Development of United KingdomEC European CommissionGAP Governance Action PlanGDP Gross Domestic ProductsGG Good GovernanceGRET Research and Technological Exchange GroupICT Information and Communication TechnologyIDLD Innovation for Decentralization DevelopmentIFAD International Fund for Agricultural DevelopmentIMF International Monetary FundIOs International OrganizationsLAMC Law on Administrative and Management of CommuneLGG Local Good Governance

LNGOs Local Non-governmental OrganizationsM and E Monitoring and EvaluationMoI Ministry of InteriorNCDD National Committee for Sub-nation Deconcentration and DecentralizationNCSC National Committee for Support to Commune/SangkatNGOs Non-Governmental Organizations


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RGC Royal Government of CambodiaRILG Rural Investment and Local Governance

RLIP Rural Livelihood Improvement ProjectRPRP Rural Poverty Reduction ProjectSeila Seila ProgramSeth Koma Childrens RightUK United KingdomUNCDF United Nations Capital for Development FundUNDP United Nations Development ProgramUNESCAP United Nations Economics and Social Commission for Asia and the PacificUNFPA United Nations Population FundUNICEF The United Nations Children's FundUNOHRC United Nations Office for Human Right CommissionUNTAC United Nations Authority to CambodiaUSAID United State Agency for International DevelopmentVDC Village Development CommitteeWB World Bank


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CHAPTER I

INTRODUCTION

This chapter consists of seven sections. The background of the study is given in the firstsection, while the second section mainly focuses on the research problem. Research questionsand its objectives are discussed in the third, and the forth sections, respectively. The fifth andsixth sections present the rationale of the research and the conceptual framework, while thelast section defines the scope and limitations of the research.

1.1BackgroundSituated in Southeast Asia, Cambodia has total area of 181 035 square km with totalpopulation of 14 444 thousand in 2007 and Gross Domestic Product (GDP) per capita wasUS$ 358 in 2007 (UNESCAP, 2008) and real GDP growth rate was 7.0 per cent in 2008. In2004, there was 35 per cent of total population were living under national poverty line(UNESCAP, 2009).

The political system in deferent regimes defined deferent types of governance models inCambodia (Te, 2007:58). After the election which arranged United Nations Authority toCambodia (UNTAC), which is known as UN peacekeeper, held in 1993, Cambodia is knownas The Kingdom of Cambodia and its political system is known as multiparty democracyconstitutional monarchy (Kato et al, 2000:7). In other means the establishment of constitutionis identified as the foundation for the development of Cambodias governance system (Royal

Government of Cambodia, 2000).

In 2004, Royal Government of Cambodia adopted new plan called Rectangular Strategy.Good governance lies at the cornerstone of this strategy. Royal Government of Cambodia(2004:6) perceived that Good governance is the most important pre-condition to economic

development with sustainability, equity and social justice. Good governance requires wide

participation, enhanced sharing of information, accountability, transparency, equality,

inclusiveness and the rule of law. To achieve good governance, separately, Royal

Government of Cambodia developed the Governance Action Plan (GAP). Among otherelements of this action plan, administrative reforms, decentralization and deconcentration areimperative elements to achieve the good governance. Under this pillar, decentralization andlocal governance is a target of it and it is perceived that local governance is as mean to furtherdemocratize the nation and to improve service delivery at local level (RGC, 2004:9,11).


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provinces which funded by numerous donors through co-funding. The expansion occurredafter the official decentralization and deconcentration reform started in February 2002 and

based on the commune administrative management law and commune councils election law,then 1621 new local governments have initiated throughout Cambodia through election sincethat time (COMFREL, 2007:6).

As in Seila (2000:37) decentralized planning system, it has been working to support anddevelop the adoption of participatory planning institution including organization andprocedures and technical for the preparation of medium term development plan and yearlybudget investment program at commune and provincial level. The key identities of Seiladecentralized planning system are institutions of peoples participation in public decisionmaking and consultative mechanism between commune and provincial investment program.

As decentralization promotes local development and local governance through decentralizedcommune development planning, two guidelines for Commune Development Planning (CDP)and Commune Investment Plan (CIP) have been endorsed by Inter-ministerial Praks(proclamation) (Ministries of Interior and Planning) for commune councils (decentralized

local government). First Prakas along with the guideline was released in 2001, which thecommune development planning consists of 11 steps and the second Prakas with guidelineendorsed in 2007, which commune development plan has been narrow to 5 steps, during thesecond mandate of commune councils election in 2007. Based on the second Inter-ministerial Prakas (declaration) (Article 25, 2007), previous guidelines and Prakas(declarations) in 2001 have been annulled. The guideline and Prakas present how local peopleget involve in each step of commune development planning, implementation, monitoring andevaluation (Inter-ministerial Prakas on CDP and CIP, 2007).

By 2005 the National Committee for Support to Commune/Sangkat (NCSC) of RoyalGovernment of Cambodia (2005:1-2) developed good governance for commune/sangkatcouncils hip pocket to guide commune councils to apply good governance at local level andto enhance governance at this level. Thus, commune councils are required to apply goodgovernance principles. The hip pocket explains how the eight elements (participation, rule oflaw, transparency, consensus oriented, equity, effectiveness and efficiency, accountability

and responsiveness) can be applied in development and administration of commune councilsaffairs. Good governance has been integrated into decentralization process through new localgovernment institutional structure and commune development planning, budgeting andimplements process which has been seen at the commune level and it built the credibility ofdecentralized local government (Commune Councils) by improving accountability,transparency, efficiency and effectiveness in its service delivery (World Bank, 20003:2). In


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(2002), commune is defined as a legal entity, and a system of local governance shall becarried out at this level. However, it has been facing several impediments in this regard.

According to ADB (2000:71-73) there were fragmentation in local governance andincomplete legal framework for local governance in Cambodia as decision making whichmade by top officials in planning which is considered as the serious constraint indecentralization reform. Moreover, NCSC (2005:96) and Pellini and Ayres (2007:404)respectively found lack of truth in participatory local governance for the participatory anddemocratic decision-making is yet well understood and internalized within the committee ofcommune councils and as the result of low capacity of commune councils officials and localpeople and lack of social mobilization and capital formation; and discouragement inparticipatory local governance as local people accepted the decisions of their leaders withoutany question. To some extent, commune councils have limitation of good governanceapplication because they tend to follow traditional and hierarchical decision making althoughthey understand the principles of good governance (NCSC, 2005:9). Lack of goodgovernance has been demonstrated to have adversely affected on the development process indeveloping countries (Hop, 2009:79).

Pellini and Ayres (2007:405) claimed that spaces for civil society participation are not clearlydefined in the regulations. Besides, if there is participation, the people understand that it is

just to attend only (Sedara and Ojendal, 2007:41), thus participation planning was not soeffective. Decentralization law allows several spaces for village level representation andparticipation in commune development planning process; particularly as the members ofPlanning and Budgeting Committee (PBC). Nonetheless, the selection of the villagerepresentatives in commune development planning process remains unclear. If there is

participation, it is inadequate as there is no incentive for those who are member of PBC. Ingeneral, participation in commune development plan and commune investment plan (CDPand CIP) is low as a few needs of local people are addressed (Vuthy and Craig, 2008:80). Notonly in during commune development process, Sotheary (2006:113) also asserted thatcommune councils projects lack of participatory monitoring and evaluation. In addition,World Bank (2004:58-9) demonstrates that the guideline and Prakas (declaration) onCommune Development Planning (CDP) process does not indicate the scope for participation

in every step in the planning process of commune councils, and the meeting of PBC is notsuggested to open to neither public nor posting notice to motivate broader participation. TheInter-Ministerial Prakas for broader public participation in the planning process is not knownby villagers, civil society organizations, generally, and or even commune councilsthemselves. Thus, the inclusiveness and transparency of commune development planningprocess is still matter. Not only the aspect from guideline of planning, officials who facilitate


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process and commune councils fund allocation rendered less significant overallaccountability to the electorate (Vuthy and Craig, 2008:93). In additional to Vuthy and Craig

assertion, Ayres (2001:61) claimed that commune councils are likely upward accountabilityto their respectively political party rather than downward accountability (accountability tocitizens). The weaknesses of commune councils accountability are seen in the system ofabove and below commune councils itself. The below itself is insufficient capacity to demandfor accountability from CCs by civil society, and the above itself is the support fromministries were not offered to CCs on what they need, while the democratic decentralizationreform has been operated by CCs since 2002, the district and provincial authorities have notyet organized their formal mandates (Sedara and Ojendal, 2007:46).

Transparency and accountability systems are inefficient in the area of public administrativereform in Cambodia (Sokha, 2005:114). Commune council lacks of financial transparency asmany reasons including the collected fees are not accounted, the project costs are overestimated; especially infrastructure project. Moreover, it is seen as well that the communecouncils lack of transparency regarding the selection of contractors for infrastructure projectimplementation and how much amount of budget which received and how it has been spent

was not reported to and accessed by citizens (NCSC, 2005). Vuthy and CRAIG (2008:79)argued that there are many cases are reported that commune chiefs have collusion withcontractors regarding the chosen type of project, contractors who award the contracts and thecost of project and degree of quality control. This collusion was even supported by politicaland other networking of elites at provincial level. Sotheary (2006:113) argued that limitedbudget for commune development fund and the delay of commune councils fund transferfrom the central level of government and complicated financial management at communelevel leads to lack of transparency. Romeo and Pyckerelle, (2003:iv) add more that the cost of

commune councils project is lower than the reference price which calculated based onaverage market cost and other cost incurred by other agencies, thus the communes projectfailed to reflect the true cost of the work, which resulted in cut corners and low qualityoutputs. Moreover, commune chiefs are still unclear about their powers and theirresponsibilities to stop payments when they found that contractors performance wasunsatisfactory. Hence, the endeavors of commune councils were not transparent as mentionedin above causes. These problems are seen in the processes of commune development

planning; particularly during project cost estimation, procurement and monitoring andevaluation process. As the case in Thailand, local government so called TambonAdministrative Organization (TAOs) can be easily corrupted as the lack of transparency andparticipation of local people; evidently, the relatives and friends of TAOs awarded the TAOscontracts and the conflict of corruption was found in many places, and sometimes among theTAO members (Sopchokchai, 2001:9)


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1.3Research QuestionsBased on the above issues and problems which are encountered by various stakeholders whoplay as an important role in local development and local good governance, research questionshave been developed as follows.

How local good governance concepts are applied in commune development planningof decentralized local government in Cambodia?

What are the impacts of local good governance in decentralized communedevelopment planning? How?

What are the factors explaining performance of decentralized commune developmentplan in local good governance?

1.4Research ObjectivesThe general objective of this research is to analyze the impacts of local good governance onthe performance of commune development planning of decentralized local government whichenhanced by NGOs and government in Cambodia.

The specific objectives are:

To examine the applications of local good governance in commune developmentplanning;

To assess the impacts of local good governance on the implementation of a communedevelopment plan;

To gain the perception of local government and local people on the application of localgood governance in commune development planning; To explore factors explaining the applications of local good governance in commune

development planning;

To suggest recommendations to strengthen local governance for effective communedevelopment planning in Cambodia and provide policy implications.

1.5Rationale of the ResearchGood governance has been perceived by the Royal Government of Cambodia as the pre-condition to sustainable socio-economic development of the countries (RGC, 2004:6). Goodgovernance provides huge benefit to either local or national level. Think-tanks and policymakers have notion that good governance is important for economic development. They


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Ear (2007) found that aid has impact on only voice and accountability and political stability;while another principles of governance were not impacted by aid.

Another findings related to participation for local governance of Penili and Ayres (2007)which found out the community participation in local governance in Cambodia throughvillage networks. They found that village networks (small groups within the commune) tookimperative role to promote local governance, as the voice of villagers are heard by communecouncils through village networks and group representatives at the commune meeting,planning and etc,. However, it can be done unless the village networks at grass root levelreceived trainings from external agents related to decentralization, roles of village networksand good governance, which are the catalysts to motivate people to participate.

Holloway et al (2004:28), applied components of good governance of World Bank, foundaround 80 per cent of respondents (include commune councils) understood what is goodgovernance and its important and benefits. Other than this finding, they found that 77 per centof correspondents believe that good management in development means more consultation indevelopment decision making between villagers and commune/sangkat official, and 84 per

cent of respondents think that good planning in development means planning that embodiesviews, decisions and voluntary participation of the community effected by the planning,while another 80 per cent viewed that planning that is clear and can be implemented. Thus, itmeans that they understand the meaning of good governance, yet how it contributes tocommune development planning.

Finding from Sotheary (2006) showed that there was many conflicts in project prioritizationdue to incompatible of local peoples ideas and interest, low participation of local people in

contribution, resource mobilization is limited due to the low well being to local people, CCsand PBCs lack of commitment as uncertainty role in the implementation of decentralizationtask, low salary and local government motivation. These lead to ineffectiveness andinefficient commune development planning and implementation

Seneh (2000) found that the capacity building provided benefit to commune developmentcommittee (CDC) and the capacity building of Seila Program was very effective and

successful. The CDC had high level of understanding and their performance andresponsibilities in decentralized planning. Capacity building of commune developmentcommittee was influenced by education, income and gender factor. However, she foundseveral constraints related to capacity building of commune development committeeincluding low incentive, inappropriate schedule of training, insufficient resource person andlevel of education CDC. In this regard, when the capacity building didnt deliver effectively,


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The results from this empirical research could be utilized by many stakeholders; in particular,INGOs and LNGOs, and local government (commune councils), district and provincial

councils; and in general, it will be used by the government; especially its developmentprograms that is related to local good governance strengthening, and decentralized communeplanning implementation; and other aid agencies and finance institutions. Ministries ofInterior and Planning can use key findings of this research for improving communedevelopment planning, as each commune is required to evaluate the effectiveness ofcommune development planning in its mandatory. Governance quality can be used by bothgovernment and aid agencies to measure the progress of development and as condition toallocate fund to the commune. From this perception, it will contribute to the long termdevelopment of Cambodia, as good governance lies on the heart of Royal Government ofCambodias development strategy.

1.6Conceptual FrameworkThe research will be focused on the study of the application of local good governance and itsimpacts on the commune development planning.

The principles of local good governance are extracted from various sources; includingUNESCAP (2004), NCSC (2005b), which developed by the Royal Government of Cambodia,and King Prajadhipoks Institute (2005). Six principles of local good governance will be usedin this study; those are rules of law, participation, accountability, transparency,responsiveness, and effectiveness and efficiency. As there are many definitions are given toeach principle, some of those, which reflect to the local good governance context inCambodia, are using in this research as follows.

Rule of law: Rule of law in local good governance is meant the ratification of legislation andpredominance of regular and just law and which the freedom, equity and right of all peoplemust be regulated and protected under the law (King Prajadhipoks Institute, 2005:10). Underthis principle, legal framework means legal framework related to commune developmentplanning and implementation including law on commune administrative and management,sub decree on commune fund, proclamation on commune development plan, commune

financial management guideline, decision on promulgation of the commune fund projectimplement manual (NCSC, 2005b:8).

Participation: It meant in local good governance that the creation of opportunities for publicparticipation in politics and governance that entails decision making in various affairs,including community resource allocations, what will mostly likely have impact on the


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Accountability at commune level is for all stakeholders. Accountability is seen in two ways.Upward accountability which commune councils are accountable to their leaders and donors.

Downward accountability which commune councils are accountable for the electorate andpublic (NCSC, 2005b). Under this principle, commune councils accountable to local peoplemeans the commune councils keeps reporting to citizen and evaluation on work performanceplanning and implementation mean commune councils are responsible on the outcomes of theproject implementation and their performance in CDP, while role of PBC means that they areaccountable in their responsibilities in CDP and implementation.

Transparency: Transparency means that decisions taken and their enforcement are done in amanner that follows rules and regulations. It also means that information is freely availableand directly accessible to those who will be affected by such decisions and their enforcement.It also means that enough information is provided and that it is provided in easilyunderstandable forms and media (UNESCAP, 2004). Legal framework means the communecouncils make decision related to commune development in accordance to legal frameworksuch as procurement guideline, commune financial management manual, financial auditing ineach project, transparent in awarding the contract and contract payment and liquidation;

internal regulation which set by commune councils, information dissemination meansinformation as easily and open to access by public and must be simple and accurate whicheasily to understand, and resources allocation means commune councils allocate resources forCDP implementation in a transparency manner.

Responsiveness of CDP: In local good governance is meant that the effort of communecouncils institution and processes seek to serve all stakeholders equally regardlessdiscrimination within reasonable timeframe (UNESCAP, 2004, NCSC, 2005b:23). It consists

of three sub points; (i) time frame means the commune development plan implements toaddress the need or problem and planning must be conducted within the time frame; (ii)discrimination in planning means CDP of commune councils do not discriminate or is equityamong group of people or individuals within the commune; and (iii) local needs meanplanning matches and addresses the needs and problems of local people.

Efficiency and effectiveness of CCs and CDPs: In local good governance it is meant the

process and institutional management system in best use of resources at their disposal withsaving manner to produce high quality and quantity of outputs and able to provide optimumbenefits and to meet real needs of the community. It also covers the sustainable use of naturalresources and the protection of the environment (UNESCAP, 2004). Under this principle,resource (finance) utilization and optimization in related to how commune fund is used in itsplan implementation and optimized outputs of the project and matching resource with local


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Figure1.1 Conceptual Framework of the Research

Effectiveness and Efficiency

Resource utilization andoptimization

Matching resource withlocal problems and needs

Transparency

Related legal framework (CCsfinance manual, Auditing, ContractPayment)

Openly disseminated information Resource allocation

Rule of Law Related legal framework (CDP,

Commune Fund, Project ImplementManual, Commune FinancialManagement Guideline, M&Emanual).

Participation

In decision making In implement In Monitoring & Evaluation

Responsiveness

Plans match with local needs Time frame (scheduling) Equity and avoid

discrimination in selectionof beneficiaries

Accountability

Evaluation of workperformance Accountable to electorate

(local people) (downward)

Role of PBC

Local Good Governance

in Decentralized

Commune Development

Planning

Apply in the whole

process of CDPs

Apply in the whole

process of CDPs

Apply in stage 2, 6 and 7

of CDPs

Apply in all stages of

CDPs

Apply in stage 3, 4, 5, 6

and 7 of CDPs

Apply in stage 1, 2, 3and

6 of CDPs


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1.7Scope and Limitations of the ResearchDecentralized local government in this research is referred to commune or commune councilswho elected by their respective citizens. Hence, local good governance in this research isdefined as an institutional system which is a set of organization and procedural measures, formanaging local public affairs (Romeo, 2002:2) and development.

Principles of local good governance in this research are extracted from various sources, ofwhich are mostly extracted from the local governance framework designed for communecouncils which was developed by NCSC (2005b) of the Royal Government of Cambodiaincluding effectiveness and efficiency, transparency, accountability, participation,responsiveness and rule of law. Under each principle of local good governance in communedevelopment planning, there are many sub-elements, and the research will be covering on thefollowing. Participation covers on the participation in jointing decision making,implementation and monitoring and evaluation the plan and project of commune councils.Accountability focuses on the planning that accountable to the local people, decision inplanning and implementation of the plan. Responsiveness includes the planning addresses the

needs of local people, responses to needs within the time frame and avoiding discriminationin planning. Transparency covers legal framework, opened and disseminated information,information is easy and accurate to access. Effectiveness and efficiency relates to resourceutilization, plan addresses the right priorities, and project cost estimation will be covering onthis research. Rules of law focuses on existing legal framework of commune developmentplanning, commune project procurement, commune fund, commune fund project implementmanual and commune project monitoring and evaluation.

The decentralized commune development planning in this research will be developed in acombination between Commune Development Planning (CDP), which consists of five steps,and Commune Investment Planning (CIP), comprising of five steps. Both CDP and CIPguidelines was endorsed by Inter-ministerial (Ministries of Interior and Planning)proclamation in 2007 which are contemporary being used by commune councils throughoutCambodia. The combination of commune development plan consists of seven stagesincluding plan formulation, problems and needs identification and review; identify and select

priority development project, district integration, approve on commune development plan,project implementation, and monitoring and evaluation. Each stage comprises of steps to beundertaken which are explained in detail in chapter 2. The period of planning in this researchwill be covering from 2007 to 2009, and all projects under this study are funded by onlycommune councils fund (CCF), while other projects which funded by NGOs anddevelopment agencies are not considered. In 2007, it was the second mandate of commune


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The perception on local good governance will gain based on satisfaction of communecouncils, local people and concerned government agencies and NGOs on various aspects of

local good governance components applied in the commune development planning process.

The research will be undertaken at commune level, where two communes are selected;namely, Khnash Romeas and Prey Khpos commune in Bovel district, Battambang province.The communes will be purposively selected from in order to make comparison of local goodgovernance in CDPs which they have been experiencing. Khnash Romeas commune in Boveldistrict, Battambang province is the commune that has been obtaining financial support forlocal development and local governance application from the Royal Government of

Cambodia through various previous programs of CARERE I and II, Seila Program andNCDD since 1996, while Prey Khpos commune has just experienced with the localdevelopment and local governance fund from Royal Government of Cambodias programsthrough Seila Program and NCDD since 2002 after the formal election of commune councils.Thus these communes will be investigated for the comparison of local good governanceapplication in CDPs.


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CHAPTER II

LITERATURE REVIEW

Eleventh sections are organized in this chapter. Concept of governance, principle of goodgovernance and actors in governance are given in the first, the second and the third sectionsrespectively. The impacts of governance in development are illustrated in the fourth sections.Literature about decentralization and local governance, the concept of decentralization,decentralized local government, decentralization and local governance in Asia arerespectively reviewed in the fifth, sixth and seventh sections. To bring broad concept into the

reality within the study area, governance policy, public administrative reform, localgovernance performance of local government and decentralized planning and localdevelopment in Cambodia are brought respectively into review of related literatures in theeighth, ninth, tenth and eleventh sections, accordingly.

2.1Concept of GovernanceGovernance jargon is being popular in development literature and development discoursealthough it is not the new term in development as it has emerged in development issues sincelate 1980s (CIDA, 1997:3). It has been used and debated in the different contexts and fields,including corporate governance, international governance, national governance and localgovernance (UNESCAP, 2004); field of development economic and urban study,international institution, corporate studies, new political economy, political science andeconomic studies (Barilettie and Zoli, 2004:316). Thus, governance has been defined basedon the contexts that they are referring to.

According to UNESCAP (2004), governance has been defined as the process of makingdecision and the process by which the decisions are implemented or not implemented. Whileanother definition which is given by United Nations Development Program (UNDP) as theexercise of economic, political and administrative authority to manage a nations affairs. It is

the complex mechanisms, processes, relationships and institutions through which citizens and

groups articulate their interests, exercise their rights and obligations and mediate their

differences. Governance embraces all of the methods-good and bad-that societies use to

distribute power and manage public resource and problems wherein public resources and

problems are managed effectively, efficiently and in response to critical needs of society

(UNDP, 1997:9). These are the definitions which defined by the United Nations body.The followings are some contributions from financial institutes.


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According to the above definitions, mostly, governance has been seen as the process of

exercising for the management of a countrys affairs in terms of economic and socialresources for the development and it has also been attached another meaning of decisionmaking over economic and resources for development purposes.

2.1.1 Definitions of Good GovernanceSince 1978, World Bank emerged the term called good governance due to un-internationalstandardized of management (Te, 2007:648). Governance embodies of good and bad

(governance) (UNDP, 1997:09) and the concept of good governance become popular in1990s as it has been mainstreamed in the policy of international development agencies(Parnini, 2006:189).

Good governance is perhaps the single most important factor in eradicating poverty and

promoting development. By good governance is meant creating well functioning and

accountable institution-political, judicial and administrative (UN Secretary-General, Kofi

Annanm, 1998, cited in Te, 2007:648). Good governance has therefore been identified as acornerstone of development strategy. But what does it mean by good governance? Manydefinitions are defined by many development agencies, individual scholars and financeinstitutions. The table below summarizes some definitions which defined by those.

Table 2.1 Various Definitions of Good Governance

Year Institution Definitions of Good Governance

1995 ADBADBs notion on good governance is focusing on the principles ofeffective management. Those principles are accountability,participation, predictability and transparency (P.04).

1997 CIDAGood governance is the exercise of power by various levels ofgovernment that is effective, honest, equitable, transparent andaccountable. P03

1997 UNDP

Characterized as transparent, participatory accountable effectiveand equitable promotes the rule of law ensures that political,social and economic priorities are based on broad consensus in societyand that the voices of the poorest and the most vulnerable are heard indecision-making over the allocation of development resources (p. 12)

Seven key governance capabilities: to operate political systems whichprovide opportunities for all people to influence government policy


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Year Institution Definitions of Good Governance

particularly on five areas: legislative strengthening, decentralisation and

democratic local governance, anti-corruption, civil-military relations,and improving policy implementation (p. 1)

2005 IMFensuring the rule of law, improving the efficiency and accountability ofthe public sector, and tackling corruption (p. 1)

(und

ated)

WorldBank

Inclusiveness and accountability established in three key areas:selection, accountability and replacement of authorities (voice andaccountability; stability and lack of violence); efficiency of institutions,regulations, resource management (regulatory framework; governmenteffectiveness); respect for institutions, laws and interactions amongplayers in civil society, business, and politics (control of corruption;rule of law) (pp. 3, 7)

Source: Adapted Grindle (2007:556-7) and from various sources.

2.2Principles of Good GovernanceMany scholars, donor and development agencies, financial institutions and think-tanksdeveloped different indicators and elements of good governance to measure the quality ofgovernance based on their purposes and notions. From this perception, they believed thatgood governance provides huge dividend, high quality of governance increases the incomeper capita and encourage growth throughout the world in long run (World Bank, 2007). Keyindicators of governance which have been developed were used for the purpose of aidallocation such as the study of Epstein and Gang, (2009), measuring democracy, servicesdelivery and its effectiveness and efficiency and corruption. Table 2 below illustrates the key

elements of good governance which are extracted from various organizations for acomparative perspective.

Table 2.2Key Components of Good Governance

Key Components

UNESCAP

(2004)

ADB(1995)

UN-O

HCH

R

(2004)

AFDB(2004)

NSSD(2001)

Dines

h(1998)

CIDA

(1997)

Accountability


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Key Components

UNESCAP(2004)

ADB(1995)

UN-O

HCHR(

2004)

AFDB(2004)

NSSD(2001)

Dines

h(1998)

CIDA

(1997)

Equity and inclusiveness

Combating corruption

Consensus oriented Decentralized management

Human resource development

Local government Management innovation Networking Public-private partnership

Strategic vision

Honest Source: Author extracted from various sources.

Besides the above most common used key component of good governance, UNDP (1997:19)determined the following characteristics of good governance.

Service orientated Able to deal with temporal issues Regulatory rather than controlling, enabling and facilitative Able to define and take ownership of national solutions Accountable and transparent and efficient and effective in the use of resources Engenders and commands respect and trust Operates by rule of law Strengthens indigenous mechanism Able to mobilize resources for social purposes Tolerates and accepts diverse perspectives Able to develop resources and method of governances Promote equity, equality, sustainability and participatory Legitimate and acceptable to the people


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Actors Roles in Governance

strengthening the financial and administrative capacities local government

Empowering people by providing equal opportunities and assertion of theinclusion of social, economic and political

Protecting environment by ensuring social harmony, stabilizing macro-economic, generate revenue to finance public services, infrastructure, health andsafety and regulating monopolies economic activities.

PrivateSector

Create job and expand employment according to economic development Improve livelihood by providing sufficient income according to productive

employment Provide incentive and support the state privatization enterprises, improve small

and medium sized enterprise Expand their operation beyond the national boundaries that government can not

CivilSocietyOrganiz

ation

Checks and balances on the power of government and on private sector, but alsocontribute to strengthen both sectors

Coordinate political and social interaction by mobilizing a numerous actors insociety to take part in social, economic and political

Create society Monitor on natural resource and environment depletion, pollution, social

exploitation, which contribute to economic growth with equity within thesociety

Mitigate adverse impact of economic fluctuation Represent and providing a voice for poor or vulnerable groups in decision

making and political Strengthening and protecting religious, culture, beliefs and values Help to solve market failures and weakness Strengthening marginalized household a greater purchasing power and abolish

middlemen transaction

Source: UNDP, 1997:15-18.

The challenge of governance is to balance between government, private sector and civilsociety (Romeo, 2000:263, Miller, 2004:9) within national environment and within the global

communities and the consensuses appear as the crucial point for balancing in governance(Miller, 2004:9). Miller (2004:10) mentioned that to establish consensus parliament centreemerged ecology of governance in order to address the consensus, which diagramming theinterrelation between government sector, private sector and civil society and constitute activecitizen. This concept has given the balance between three sectors, while the unbalancebetween three sectors is that the civil society and private sector are isolated from the


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Sources: Adapted from Parnini (2006:194), Miller (2004) and Institute on Governance inOttawa (1997).

Figure 2.1: Main Actor in Governance and their Relationship

2.4Impacts of Governance in DevelopmentWorld Bank (1992:v) pays more attention on governance issue as it is considered as a matterfor sustainable and equitable development, and good governance has been identified as asynonym of the development management by this institution. Enhancing quality ofgovernance is necessary for economic development (Sharma, 2007:29). Moreover,

development policy contemporary determined good governance as pre condition to achievedevelopment goal (Epstein and Gang, 2009:12). From this perception, the implications ofgovernance on economic, poverty and political aspects are discussed below

2.4.1Economic


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The good governance provides huge benefit to either local or national level. Think-tanks andpolicy makers identified it as an imperative for economic development. They explored that

high-quality institutions, in long run, increase the per capita incomes and promote growth.When the governance improved by a level, income increased about three times in long run(World Bank, 2007:1).

Meisel and Aoudia (2008:4,12) conducted their verification by using the data from WorldBank Institute that the work of Kaufmann et al., 1999 mentioning that the good governancehas significant correlation with development of a nation. Findings concluded that there iscorrelation between governance and level of development; however, there is no correlation

between it and the pace of development; especially from medium to a long term growth, asthere are changes behind the social, economic, institutional and politics.

Another notion believed that good governance facilitated the growth and enabling businessenvironment which leads to economic development. Governance impacts on the businessactivities through taxation, rule of policy decisions, and economic. Policy implement relieson the performance of public institutions; especially the bureaucracy manner. However, good

accountability structure may lead to good institutional endeavor. Hence, when other thingsare performed well, it renders good business environment and attracts more investment whichleads to better growth (World Bank, 2003:77). Therefore, good governance is the mainattribution to economic growth.

2.4.2PovertyEmpowerment of citizens by raising awareness to access to opportunity, social investment

and sustainable livelihoods are the attributions to poverty alleviation. Inequality and povertyare matter of power, and it worsened poor governance which resulted from the marginalizedthe poor from social, economic and political and unable to voice their voice to government.Poverty can be broken by empowerment, social education and awareness of citizens rightsand responsibilities, access to justice as they can redress through grievances. Greater accessto education can eradicate poverty and inequality and empower poor in public decisionmaking (UNDP, 1997:77). Justice, participation, empowerment and social inclusion areelements of governance, if these are enhanced it contributed to poverty alleviation.

ADB (1999:12) stated that quality of governance is essential for poverty alleviation. Goodgovernance rendered participation and pro poor policies and maintains transparency andeffectiveness public fund utilization and public service delivery and formulate rule of law.Poor governance adversely affected poor people as they affected from the efficiency and


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2.4.3PoliticalPolitical governance has been referred by UNDP as the decision making and policyperformance of a state. The State consists of independent legislative, judicial and executivebody. Developing countries are reforming the political institution by seeking the updatedgovernance modalities and strengthen the capacity of political to guide social and economicactivities to achieve sustainable human development (UNDP, 1997:10). Thus, governanceand political are interlink together.

As political stability and absence of violence is a dimension of governance indicators, which

defined by Kaufmann, Kraay, and Mastruzzi (2004), as perceptions of the likelihood that thegovernment will be destabilized or overthrown by unconstitutional or violent means,

including political violence and terrorism (Kaufmann, Kraay, and Mastruzzi, 2006:4). Fromthis perception, Worldwide Governance Indicators used it to evaluate the quality ofgovernance of individual country and compare with other countries; hence it increased thecompetitiveness to improve governance. The outcome of governance of individual countryhas been used by donor agencies, international financial institutions and other bilateral donor

agencies to make decision on their policies formulation and explicitly tie aid allocation. Inthis regards, governance influence political endeavor of individual country; especiallypolitical stability of Algeria, Angola, Libya, Rwanda and Sierra Leone has significantimprovement during 1998-2006 as a result of governance indication measurement (WorldBank, 2007:2).

2.5Concept of DecentralizationIn 1981, Rondinelii differentiated four types of decentralization forms, that is,deconcentration, delegation, devolution, and divestment or privatization. Deconcentration ismeant the transfer power from central government to specific lower tier of government.Delegation is meant the transfer power to sub national government. Devolution is meant thetransfer of authorities and power to elected sub-national government entities. Divestment ismeant the transfer or delegate power to business sector (Rondinelii, 1981, cited in Rondineliiet al, 1984:10-26, Parker, A.N, 1995:19).

Decentralization has been seen in three dimensions, that is, political, fiscal and institutional oradministrative dimensions (Parker, 1995:23). Administrative/Institutional decentralization,which consists of deconcentration, devolution and delegation, aims to redistribute authority,responsibility, financial resources for public service delivery to different tiers of government.Political decentralization aims to provide citizens to elect their local leaders, and those who


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field organizations, local administrative units, semi-autonomous and parastatal

organizations, local government or non-governmental organization, while the most

imperative objective of decentralization is to reduce overwork and complication, enhanceefficiency and effectiveness of governments service delivery to fulfill the needs of citizen forthe purpose of development (Rondinelli, 1981, cited in Rondinelli and Cheema, 1983:18).

Based on the meaning and forms of decentralization, decentralization seems to create otherentities of government which are accountable to national government. By this mean, lowergovernment take responsibilities in lower tires governance.

2.6Decentralized Local GovernmentLocal government has been referred to a particular entities or institutions formulated by anational constitutions, which is seen in Brazil, France, India, Japan, Italy, and Sweden); by astate constitutions which applied in Australia and the United States; ordinary legislation ofthe higher level of central government such as New Zealand, the United Kingdom (mostcountries); by provincial or state legislation such as Canada and Pakistan; or by executive

order like China in order to deliver a range of particular services to a small area (World Bank,2006:1). Based on this assertion, local government is rendered when the state applied thedecentralization policy. Within the decentralization concept, it derives sub nationalgovernment which varies from one country to another based on their decentralization anddeconcentration policy. Table 4 below illustrates sub national government tires in Asia.

Table 2.4 Levels of Local Government in Asia

Country Sub-national level of government

Cambodia

Two levels:- Provincial administrative and municipalities which divided into districts and

Khans- Elected commune and sangkat (urban) which divided into villages

China

Four levels:- Provincial, autonomous regions and large cities- Prefectures and cities- Counties

- Township

Indonesia

Three levels:- Provinces, special regions and capital city- Local governments: kotamadya (cities) and kabupaten (district)- Desa (village)Four levels:

P i


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2.7Decentralization and Local Governance in Asia2.7.1

Decentralization in Asia

Decentralization has emerged in the debate since 1970s when the development paradigmchanged from growth pole to redistribution with growth to fulfill the basic minimum needs tothe grass root. On the other hand, decentralized planning started in India since 1951s(Sundaram, 1997:23). Before 1990s most East Asian countries were highly centralized andadopted decentralization later than the countries in some parts of the world. Governmentsadopted decentralization process is matter as it impacts on other interrelated fields, including

economy, governance, and service delivery (White and Smoke, 2005:2). Moreover, therewere two factors that drove decentralization in East Asia; those include structural factors andpolitical factors. Structural factors; East Asia countries economic growth and urbanizationwere the reason behind decentralization process. It was seen that there was rapid urbanizationin Philippine, Thailand, China and Indonesia, although Cambodia and Viet Nam urbanizedslower, as the increasing of population. Linking between economic growth and demographiccreates conducive decentralization reform in East Asia. Political factors; democratization

triggered the decentralization reform, such as Philippine and Indonesia took ondecentralization reform after the failure of dictatorship power. But it was not happened inViet Nam and China. However, grass root demands for good government and participationderived decentralization reform (Ibid: 4).

2.7.2Decentralized Local Governance in AsiaIn last two decades, financial support on local governance and decentralization has been

turned into the international development agencies and co-operation interest (OECD, 2004:9).There are many literatures discourse about the relationship between decentralization and localgovernance. It is revealed that decentralization makes possible to foster development throughlocal self governance (Omiya, 2000:197), while another scholars mentioned thatdecentralization eases local governance (Wanyande, 2004:7). Moreover, Parker and Serrano,(2000:3), and Nikolov (2006:05) asserted that decentralization has widely asserted asimperative tool and factor to constitute good local governance and encourages developmentat local level. As decentralization is the process of transferring authorities, responsibilities,decision making on resources, for the purpose of services delivery to grass root people, fromnational government to lower government (local government), thus local governancerendered when governance has been applied in local government. In the period of 1990s,decentralization was a mean to open governance to motivate public involvement, from thisregards, governance emerged in the concept of decentralization (Cheema and Rondinelli,


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of democratic governance. Process of transferring powers, responsibilities, resources andfunctions from national government to local government has been commonly identified as

decentralized governance. From the view of organizational, decentralized governance ismeant as a process of reorganizing the authority to enhance the effectiveness and overallquality of governance system, and to build the capacity of sub national authority.Restructuring authority can be seen in terms of co-responsibility between and among tiers ofgovernance, central, regional and local. From the top level of authority to local level,decentralized governance supports regulation (legal), financial and administrative for thepurpose to empower citizen and organizational aspect at local level. Besides, UNDP definesdecentralized governance as the interaction of balancing responsibilities and authorities

between national government and other tiers of government, civil society organizations andthe local entities ability to implement the responsibilities which have been transferred byusing participatory approach. Decentralized governance is used to build up governance atlocal level for better public service delivery, and as an instrument for promotion democraticand poverty reduction; especially, in developing countries in Central Asia (Nikolov, 2006:3-4).

Another important aspects of decentralized governance in enhanced and efficient servicedelivery are have been seen as follows: decentralized governance rendered the participatory

management of development, decentralized finance for local service delivery, cooperationamong local government, monitoring and evaluation of service delivery in decentralizedgovernance, human resources development and building the capacity in local governanceperformance, and also building public trust (Nikolov, 2006:3).

Another term which similar to decentralized governance is local governance derives from theconcept of decentralization process, as mentioned elsewhere in this section thatdecentralization creates local governance. World Bank (2006:1) defines local governance thecollective action which formulated and executed at local tier; therefore, it conserves self-governing communities. UNDP (2004:4) argued that procedure, process and institution are aset of local governance. These can be seen when grass root people and collective grouparticulate their needs and interests and their right was exercised. Reorganizing localgovernance institution needs the consensus on the following principles to achieve citizen-centre local governance which presents in Figure 2.3 below.


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2.7.3Local Good Governance in AsiaMany literatures shared that decentralization is the pre condition to achieve good governance,as good governance involves the sharing power between national and sub nationalgovernment (Oyugi, 2000:v). Local good governance is therefore defined as a set ofmechanisms/ procedures and a set of organizations intended to manage local public affairs(Reomeo, 2002:2, Bongfiglioli, 2003:18). The very concept of good governance at locallevels indicate the quality, effectiveness and efficiency of local administration and publicservice delivery; the quality of local public policy and decision-making procedures, theirinclusiveness, their transparency, and their accountability; and the manner in which power

and authority are exercised at the local level (Bonfiglioli, 2003:18). This is illustrated inFigure 2.4 below.

Sources: Reomeo, 2002:2 and Bongfiglioli, 2003:18.

Figure 2. 4: Local Good Governance Principles

Local good governance is not providing local services but also preserving liberty and qualityof residents, creating space for participation and civic dialogue, enabling environment forlocal sustainable development and supporting market-led and facilitating outcomes thatimprove the quality of life of residents (World Bank, 2006:02).

2.8Governance Policy in CambodiaThe Royal Government of Cambodia (2004:6) perceived good governance as the main issuefor sustainable economic development, equity and social inclusion. Over the recent years,good governance in Cambodia is enquired by many external and internal actors indevelopment politically and administratively; however, governance in Cambodia has not yet

Local Good Governance

Transparency

Participation

Performance

Quality

Inclusiveness Accountability

Partnership

Effectiveness and EfficiencyExercising Power and Authority


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the effectiveness of government and its employees in undertaking the public program; (iv)anticorruption which is regarded as a cross-cutting area of actions that establish the

framework of behavioral rules that set standards of probity in economic, social and politicallife; (v) gender equity which is regarded as the serious area to achieve poverty eradicationand social justice of government. They are summarized in Figures 2.5 below.

Source: RGC, 2004.

Figure 2. 5:Governance Reform in Cambodia

2.9Public Administrative Reform in CambodiaPublic administrative reform or administrative reform is lying as one of the among otherimportance elements of governance reform and governance action plan of the RGC and in itsrectangular strategy. The RGC developed National Public Administrative Reform (NPAR) in1999 in other to address the issue and to continue building the capacity of civil service andmaximize the functioning of public administrative. NPAR emphasizes mainly on civil serviceand public services by building and enhancing service delivery, enhancing of administrativepayment including salaries reform and employment, building the capacity of institution andpeople and Information and Communication Technology (ICT) promotion. Apart from these,decentralization and deconcentration which is known as local democracy and critical

Governance Reform

Legal Reform Public Administrativeand Decentralization

Reform

Decentralization andLocal Governance

Reform

CustomsAdministration

Tax andadministrative

BudgetManagement

Legal andJudicial Reform

Public AdministrativeReform

Public FinanceReform

Anti-corruption


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Source: Natacha, 2006:4.

Figure 2. 6: Public Administrative Reform and Good Governance in Cambodia

2.10 Local Governance Performance of Decentralized Local Government in CambodiaLocal governance performance can be measured based on its components which mentioned inthe section 2.7 in this chapter, some of those are brought into discussion in the context oflocal government in Cambodia.

Partnership, it has been found that positive cooperation with NGOs occurred at all tires ofgovernment (NCSC, 2005:32). CC development plans have been financed by provincial linedepartments and INGOs and LNGOs. NGOs provided capacity building on the topic relatedto planning, human right, advocacy, gender awareness and domestic violence, and they alsocooperated with CCs during planning process. In some provinces meeting conducted amongNGO (NCSC 2007 82) I l l d l t t t il t d ith


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implementation coordination between line department and the CCs. CCs are unable toexpress their satisfaction and dissatisfaction to those provincial authorities. Consequently, it

has hindered the services accountability to local people (COMFREL, 2007:17).

Participation, citizen participation at commune level is increasing, especially numbers ofcitizens to poll because they aware of and satisfy with the performance of CCs. NGO is afactor to improve participation of local people in CCs affairs (COMFREL, 2007:24).However, the participation in commune development planning is low and the effectiveness ofparticipation is still in question mark as the citizen just only to present and participate (Sedaraand Ojendal, 2007).

Quality, effectiveness and efficiency of services delivery by CCs, variety of public servicesare delivered including voter registration, civic registration and social and local developmentservices, especially infrastructure (COMFREL, 2007). Allocative efficiency and productiveefficiency was used to measure the quality of service delivery by Romeo and Luc (2003).Generally, citizens were satisfied the output of the planning resource allocation and theanticipate advantages from commune projects (roads, irrigation and schools) reflect the needsof those. Yet, from the allocative efficiency terms, there was inadequate attention onmaintenance and sustainability of those projects. From the productive efficiency, the cost ofcommunes project was lower than the reference prices based on market average cots andcost incurred by other agencies. Thus, it did not reflect the actual cost of the project, andresulted in low quality outputs.

Exercising power and authority; in the past commune authority decision was influenced byupper government tires, recently decision making of CCs was taken by discussion and

majority vote. However, the commune chiefs have had influence over the decision makingamong the CCs. Rather than this, councilors from minority parties were not able to expresstheir ideas and views, and their decisions opposed the majority party (NCSC, 2005: 109,COMFREL, 2007:18).

As governance of decentralized local government in Cambodia has been promoted since2002, when formal decentralization reform started, there have been many positive changes ifcompared to former commune authorities before 2002, as mentioned above, on the other

hand, there were some remain limitations to be improved. The improvement is beingconducted through capacity building, new regulations formulation and enforcement such asorganic law.

2.11 Decentralized Planning and Local Development in Cambodia


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proclamation of Inter-ministerial (2007), CDP consists of 5 steps and CIP consists of 5 stepsas well, which ease commune councils to develop its own CDP and CIP respectively (see

annex 7 and 8).

A CDP is a 5 year strategic development plan of CCs in each mandates, while the CIP is theannual action plan of CCs. Thus, at the beginning of its mandate, each commune is requiredto set a development strategic planning framework which to be achieved within 5 years. Ineach CDP and CIP, CCs; especially, budgeting and planning committee should consider anyissue to achieve Cambodia Millennium Development Goal (CMDG), comprising offollowing (Inter-ministerial proclamation on CDP and CIP for 2007, these are:

Eradicate extreme poverty and hunger; Achieve universal primary education; Promote gender equality and empower women; Reduce child mortality; Improve maternal health; Combat HIV/AIDS, malaria and other diseases; Ensure environmental sustainability; Develop a global partnership for development; and Move towards zero victims and a country without mines;

Certain modifications between the CDP and CIP (see details in Annex 1) have been made toset a framework for this research, the newly developed CDP for this research consists ofseven key stages. Each planning stage consists of certain steps which are presented in Table2.5 and Figure 2.7 respectively.

Table 2. 5: Commune Development Planning Process Applied in Research

CDP Stages Steps

1. Plan formulation PBCs draft development framework and budget2. Identification/Review problem

and needs2.1 PBC hold a meeting at commune level to reviewlocal problems, needs, constraints and solutions2.1 PBC hold a meeting at village level wherevillagers are invited to participate

3. Identify/select prioritydevelopment project

3.1 Based on the results from step 2, select projectsto be implemented in the current year3.2. Select project in priority to present at a districtintegration workshop


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CDP Stages Steps

6. Development projectimplementation

Non- infrastructure

6.1. Identify implementation partners and makeagreement6.2. Implementation

Infrastructure6.1. Site study6.2. Design and cost estimation6.3. Procurement6.4. Contracting

6.5. Implementation. Monitoring and Evaluation

(M&E)Monitoring7.1. Formulate M&E committee7.2. M&E focal person assists CCs for monitoring7.3. Site monitoring and reporting7.4. Follow-up

Evaluation

7.5.Existing M&E committee select projects to beevaluated7.6. Field evaluation7.7. Reporting and dissemination

Source: Modification and Compiled from Prakas (Declaration) on Commune DevelopmentPlanning

S 1 Pl f l i


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29

Source: Adapted from CDP and CIP (2007)

Figure 2. 7: Commune Development Planning Cycle Applied in Research

Stage 1: Plan formulation

-PBC draft developmentframework and budget

Stage 4: District integration

Step 4.1: Commune chief presents the current year projectsand previous year outputs

Step 4.2: Get comments from participations

Step 3.1: Selected the project to be implemented in thecurrent year based on results from stage 2

Step 3.2: Select project in priority to present at district

Stage 3: Identification/Selectpriorit development pro ect

Stage 2: Identification/Review

Step 2.1: PBC hold a meeting at commune level toreview problems, needs, constraints and solutions

Step 2.2: PBC hold a meeting at village level where villagers

Step 5.1: List the plan to be funded by commune fund andothers

Step 5.2: Meeting to give comments among participantsStep 5.3: Approve CDP and dissemination the approval result

Stage 5: Approve on

Stage 6: Development

Non-infrastructureStep 6.1: Identify implementation partners and make

agreementStep 6.2: ImplementationInfrastructureStep 6.1: Site studyStep 6.2: Design and cost estimationStep 6.3: ProcurementStep 6.4: ContractingSte 6.5: Im lementation

Stage 7: Monitoring

MonitoringStep 7.1: Formulate M&E committeeStep 7.2: M&E focal person assists CCs for monitoringStep 7.3: Site monitoring and reportingStep 7.4: Follow-upEvaluationStep 7.5: Existing M&E committee select projects to be

EvaluatedStep 7.6: Field evaluation


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2.11.2 Local DevelopmentTo align with the development strategy of RGC, many local and international NGOs aredeveloping and implementing various projects to support decentralization and deconcentratonreform, and enhancing local governance through local development or local developmentfund, apart from nation programs of Royal Government of Cambodia. To promote localdevelopment and general responsibilities for local administrative, commune has its own fund,so called commune fund (CF), which disburses from central government (Article 2, Subdecree on Commune Fund, 2002:2). The fund is used based on commune developmentplanning in each year.

Recently, decentralization and deconcentration reform is coordinated by the NationalCommittee for Sub-national Democratic Development (NCDD) that is the inter-ministerialbody which consists of 10-12 Ministries/Institution. NCDD is currently implementing manyprojects related to local development and enhance local governance which funded by variousaid agencies and finance institutes (co-fund). Under technical support from the Project toSupport Democratic Development through Decentralization and Deconcentration (PSDD),NCDD is working to support local governance and local development in 24 provinces andsupport for planning and implementation of the commune/Sangkat 1,621 commune/Sangkatcouncils. NCDD is running various projects to meet its objectives with amount of fund asfollows (PSDD, 2009:18).The NCDD development program and resources 2009 are presented in the Table 2.6 below.

Table 2. 6: NCDD's Development Program and Resources 2009

Fund/Project Title Province Budget 2009 ($) %

Royal Government of Cambodia 24 26,143,902 31.53

World Bank-Rural Investment and Local Governance 23 19,500,000 23.51

World Bank- Land Allocation for Social and EconomicDevelopment (LASED)

3 3,222,167 3.88

World Bank, Demand for Good Governance, One Window OneService

9 727,303 0.87

International Fund for Agricultural Development-Rural Poverty

Reduction Project (IFAD-RPRP)

2 1,840,101 2.21

International Fund for Agricultural Development-RuralLivelihood Improvement Project (IFAD-RLIP)

3 1,226,384 1.47

DANIDA/UK/NRML (Natural Resources Management andLivelihood)

10 7,073,000 8.53

EC-UNDP-DDLG (Democratic Development and Local10 3 458 332 4 17


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CHAPTER III

RESEARCH DESIGN

This chapter composes of five sections. First describes the type of research and design whilethe second focuses on the selection of the study area. Section of CCs members and villagersare explained in the third sections. Data collection sources and methods and data analysis andtechnique are explained in the fourth and the fifth sections of this chapter respectively.

3.1Type of Research and Research DesignThis research is an exploratory type aiming to explore the applications of local goodgovernance principles in CDPs, to find out the relationship between the applications of localgovernance principles and its impacts. This research will be conducted based on acombination of a case study and a survey design applying both quantitative and qualitativeapproaches.

Case studies will be conducted in order to examine specific aspects of local governance from

CDPs in the two communes. Case studies will be conducted at two levels, that is, at theapplications of commune level on local governance in CDPs and other type of case studieswill be focused on the selected development projects of CDPs both infrastructure and non-infrastructure projects in order to analysis plan implementation, management and quality asresult of the application of local good governance

A survey design will be applied to gather information related to the perceptions on local good

governance in CDPs, views on the impacts of local good governance in CDPs in terms ofinstitutional, economic and social aspects, and feedback of respondents on applications andimprovements of local good governance for the effectiveness of CDPs.

3.2Selection of the Study AreaDecentralized local development planning and local governance at commune level have beenseen two phases in Cambodia. First phase has started since 1996 when local development

planning has been emerged at commune level initiated by local development fund project ofthe UNCDF and implemented its pilot project in Banteay Meanchey and Battambangprovinces in association with CARERE (Cambodia Rehabilitation and Regeneration) in orderto assist returnees from the border camps (CARERE, 1995 cited in Demaine and Pongquan etal, 1997). In the later years the project expanded to other provinces which named CARERE


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good governance more effectively in the CDPs than the commune with relatively shorterexperience. Therefore, the commune will be selected based on following criteria:

A commune that has been obtained financial support from government program throughcommune fund or local development fund since 1996.

Another commune that has been obtained financial support from government programthrough commune fund or local development fund after 2002.

Based on the above criteria, Prey Khpos and Khnash Romeas communes of Bavel district,Battambang province will be purposively selected as these communes fit the first and second

criteria of this research respectively (Map 3.1).

Based on Demaine and Pongquan et al report in 1997, Khnach Romeas commune was theonly commune that implemented local development planning and has obtained the financialsupport since 1996. Prey Khpos commune has just implemented commune development planand obtained financial support after formal election in 2002.

Prey Khpos commune consists of 10 villages and Khnach Romeas commune consists of 8villages of Bovel district in Battmbang province located in the northwestern part ofCambodia, near the border of Thailand. These communes are about 40 km from the centralprovince of Battambang and approximately 330 km from the capital of Phnom Penh. Themajority of residents within these communes are engaging in seasonal farming and ricecultivation and other small business with Thai people.


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(2) Commune

Second DeputyCommune Chief (2)

First DeputyCommune Chief (2)

12 Councilors (6 Khnach Romeas and 6 Prey Khpos)

47 PBC (22 KhnachRomea and 25 Prey

Khpos)

11 M and Ecommittee

(6 Khnach Romeasand 5 Prey Khpos)

9 ProcurementCommittees

(5 Khnach Romeasand 4 Prey Khpos)

Other Committees

2 Clerks

Elected members Appointedmembers

3.3Selection of CCs Members and Sampled HouseholdsSelection of CCs members, PBC members, M&E committee members, procurementcommittee and villagers will be elaborated in this section which composes of two subsections.

3.3.1Selection of CCs MembersAll CC members will be all selected as the whole populations, Planning and BudgetingCommittees (PBCs), Monitoring and Evaluation committee, procurement committee and

other committees will be purposively selected. Therefore, 18 CCs including commune chief,first and second deputy commune chief, 47 PBCs members, 11 M and E committee members9 procurement committee and 2 clerks will be interviewed. Figure 3.1 illustrates the selectionof commune councils members based on commune administrative structure.

All related commune councils members and commune clerks will be interviewed on issuesrelated to local good governance applied in CDPs. PBC members will be partially collectedinformation related to planning and budgeting at commune level while procurement

committee and M and E committee will be asked information related to procurement andbidding process, and outcome of infrastructure project, respectively.

Source: Adapted from Pellini (2007) and Mansfield, C. et al (2004)


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10 villages of Khach Romeas commune will be purposively selected, and 50 sampledhouseholds from these villages will be randomly selected and interviewed. Thus, totally 93sampled households will be selected for interview in this study. Figure 3.2 illustrates thesampling procedures and methods applied in this research

}}}}}

Figure 3.2: Sampling Procedures and Methods

The number of sampled households were calculated based on Yamene (1967) formula. Thesample size in each village is presented in table 3.1 below.

Where n = Sampled householdsN = Total household of six villages (1394)e = Standard of deviation (0.10)

Table 3 2: Sampled Households

Village 2B. Mean Chey(8 sampled HHs)

Purposive

sampling

District

(Bavel)

Commune 2(Khnach Romeas)

Commune 1(Prey Khpos)

Total SampledHouseholds 93

Province(Battambang)

Simple RandomSampling

Village 3Balung Leu(15 sampled HHs)

Village 1Prey Sangha(27 sampled HHs)

Village 2Dangko Pen(19 sampled HHs)

Village 3Chan Neang(10 sampled HHs)

Village 1Ta Man(14 sampled HHs)


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3.4Data Sources and Data Collection MethodsThe research will be undertaken based on both secondary and primary data sources. Tools tobe used for gathering information from both sources are elaborated as below:

3.4.1Secondary DataThe secondary data will be collected from various sources which are reliable and validincluding journals, existing CDP and CIP document, commune database, commune profile,procurement documents of CCs, NCDD program reports, PDRC reports, district and

provincial development plans, research papers and evaluation reports which conducted bydomestic and international consultants, researchers, research institutes and theses. Rather thanthese, decentralization and deconcentration and local governance policy documents, lawsrelated to CCs, Prakas (declaration) and guidelines will be collected from NSCS, NCDD andMinistry of Interior. Details on secondary data collection are presented in Annex 2.

3.4.2Primary DataPrimary data is an imperative for this research, thus it will be collected from severalinformants including primary beneficiaries (households), village development committee(VDC) as member of PBC, village headperson, CCs, commune clerks and other committeeswithin the communes administrative, district facilitators, district councils, NGOs, PRDCofficers, and NCDD staff. Several methods will be applied in this research consisting offollowings.

a)

Reconnaissance Survey

A reconnaissance survey will be conducted to get a sampling framework on key villages sothat a sampling design can be play practically and to finalize a framework and details ofsampling design to identify key informants and villagers to be interviewed. This survey willexplore types of projects under CDPs to be investigated in a depth study of each commune.

b) Field ObservationObservation will be conducted during the field survey, a few infrastructure and noninfrastructure projects will be observed in depth. CCs, PBCs, meetings, field monitoring andevaluation of M & E committee will be observed on their on-going activities in order tofigure out the following aspects:


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c) Key Informants InterviewBy using a checklist of questions, key informants who tentatively identified below will beinterviewed to get their views in local good governance practices. The government officersincluding 1 PRDC Officer, 1 district council and 1 district facilitator, and 2 NCDD staff whoare mostly known as an advisor to decentralization and deconcentration, will be interviewedregarding the applications of local good governance in CDPs, and its impacts on institutionaland economic aspects, strengths and limitation of local good governance applications andpolicies related to local governance issue in CDPs. 1 LNGOs and 1 INGOs staff will be askedon their involvement in local good governance applications and practices in CDPs in terms of

transparency, effectiveness and efficiency, impa

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