T HE government has produced five position papers on issues to be discussed at
the third International Committee on the Rehabilitation and Reconstruction of
Cambodia (ICORC) meeting to be held in Paris next month.
The papers cover
external budget support; administrative reform; armed forces demobilization;
management of market economy principles; and demining.
The papers have
won support from a major foreign aid donor, Australia, according to the Council
for the Development of Cambodia (CDC).
Minister of Finance and CDC
vice-president Keat Chhon led a Cambodian delegation to Australia early this
month to discuss cooperation between the two countries and also the ICORC
Meanwhile, Keat Chhon has told representatives of Cambodia's
biggest donor-Japan-that the government is working to improve the quality of
state spending this year.
At a Cambodia-Japan annual consultation meeting
on Feb 13 in Phnom Penh, he said reforms were being made on economic management,
public administration, the judiciary, police and Royal Cambodian Armed
The primary objective was to adapt the government's
administration to be more effective, efficient and conducive to private sector
He pledged that moves were afoot to ensure all state income went into the
treasury and to make all government spending more transparent.
restraint and discipline are keys of our policy," he said.
health and rural development were the top priorities for 1995.
immediate concern are food relief, the use of labor intensive technologies for
employment creation, and the improvement of administrative functions and
services," he said.
On the economic front, Keat Chhon believed the
ground had been laid for Cambodia's development.
Inflation had fallen
from 31 per cent in 1993 to 18 per cent last year and the riel had been
stabilized against the US dollar.
He hoped for a 6.7 per cent GDP growth
rate this year and to keep the annual inflation rate at around 10 per
The GDP growth rate last year was estimated at 5.25 per cent, below
the target of 7.5 per cent because of a drop-off in agricultural output caused
by floods and drought.