Cambodian Economy: Charting the Course of a Brighter Future - A Survey of Progress, Problems and Prospects

9. Agriculture Modernization Policy

207 Chapter 9 Agriculture Modernization Policy The vision of the RGC in the area of agricultural and rural development during the next decade is to be the primary catalyst for launching a sustainable transformation of rural economies, by supporting technological, institutional, and policy changes that will, equip rural communities to improve their productivity and real income in a fair and ecologically viable way. “Development with a Human Face” is the central theme of the Government’s policy. Increased agricultural production and enhancement of its productivity are means of improving the well-being of all Cambodians. Achieving improvement in the well-being of rural households requires a holistic, complex approach, including: (i) a policy and regulatory framework that aims to broaden access to and improve the management of key resources such as land, forest, fisheries, and water; (ii) a coherent strategy regarding agriculture and rural development; and (iii) creating opportunities for employment outside the agricultural sector. The SEDP 1996-2000 has outlined the directions for rural development. The key initiatives include (i) improving the functioning of markets to be more pro poor; (ii) redirecting resources to improve access of the poor to education, training, research, and extension; (iii) creating a framework conducive to the development of financing systems in rural communities; (iv) ensuring land security; (v) improving the management of forest and fishing resources; (vi) building capacity for the management of water both at the technical level (development of networks) and the management levels (promotion of users associations); and (vii) financing basic infrastructure in rural communities. In line with these directions the Technical Working Group on Agriculture and Water has drafted an Agriculture and Water Strategy, aiming at poverty reduction, food security, and promotion of economic growth through increased productivity and agricultural diversification, along with improved water resources development and management. This strategy is based on SWOT analysis summarized below: 208 Strengths Land is available. Water resources are available; Abundant, low-cost labor, is available in rural areas. The Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of Water Resources and Meteorology (MOWRAM) have a high human resources potential. Policy and strategic frameworks have been developed for the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Water Resources and Meteorology. All stakeholders are committed and recognize the importance of the sector (government, donors, NGOs and farmers). Diverse agriculture ecosystems are available, offering several soil types. Community empowerment and commitment through local authorities as the Commune Councils is under way. Agro-industry activities are being developed. Weaknesses Institutional capacities, project management, and implementation by the MAFF and MOWRAM are weak. Water resources vary considerably in time and space, and water management technology is underdeveloped. Little investment capacity or interest in investing in the agriculture sector. Technology transfer, know-how, access to technology , and expertise by farmers and extension officers, are weak. Soil fertility is poor in many locations. Socio-cultural deficiency, including lack of solidarity at the community level, vulnerability of farmers to problems afflicting the landless, and the culturally ingrained character of subsistence agriculture. Information asymmetry of the stakeholders. Low productivity of agricultural labor, of land and water (inefficient use of resources). Limited access to markets. Inadequate legal framework for agriculture and water resources. Opportunities Improve governance, including the commitment made by the government and political stability. Development of the market and integration into the regional and global market; Firm support from development partners for investment in agriculture and water. Science and new technology. Full utilization of natural resources (land and water) that remain under-developed or that are not yet being developed. Investment funds are available, including incentives, private funds and microcredit. Decentralization and deconcentration policy. Threats The changes taking place in the market, including highly competitive international markets are fraught with uncertainty. High costs of oil and gas. Political circumstances, including demand for government funds for other sectors. Legal circumstances, including failure to enforce the land law, water law, forestry law, etc. Natural disasters. Environmental degradation. Inability to implement governance reforms, legal, and other reforms. Social and political changes, including social conflict for access to water and land; labor migration . Drop off in support from development partners in the agriculture and water sectors. 209 Source: RGC. Agriculture and Water Strategy, 2006-2010,” January 9, 2007, p. 6. To arrive at a genuine transformation of the agriculture sector, Cambodia must move from subsistence-level agriculture, generally marked by the difficulty of access to markets...