Fair Finance Cambodia (FFC) has published a study focusing on the Asian Development Bank’s (ADB) financing of COVID-19 post-pandemic economic recovery in Cambodia on October 27. OXFAM
Fair Finance Cambodia (FFC) – a coalition established in 2019 to engage with key financial actors to foster the social and environmental well-being of vulnerable groups – recently released a research study on the Asian Development Bank’s (ADB) financing of the Kingdom’s post-pandemic economic recovery.
The aim of their study is to identify policy gaps in the country’s green and sustainable economies and assess the alignment of policies and practices within relevant institutions, with a specific focus on the ADB-funded infrastructure project, Road #23/312.
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In their report published on October 27, FFC – whose partners include the NGO Forum on Cambodia, the Cooperation Committee for Cambodia (CCC), OXFAM Cambodia, Transparency International (TI) Cambodia, SILAKA and ActionAid – presents several recommendations for both ADB and the government. These include conducting the Involuntary Resettlement Policy at the project’s early stages, fostering women’s economic empowerment and improving women’s access to financial assistance.
The remaining recommendations concentrate on forging a consensus on common legal and technical terms related to green economy and sustainable finance, enhancing institutional capacity by integrating long-term expertise, crafting suitable tools for environmental and social impact assessment, and addressing the knowledge and skills gap among policymakers and practitioners in the domains of green economy and sustainable finance.
“The communities support road improvement projects, stressing three key points: Acceptance of impact assessment results; recognition of the necessity for road upgrades, given the current state of community infrastructure; and identification of various benefits stemming from these improvements,” the report outlined.
It added that the improved access to schools, markets, hospitals and farms is crucial for daily activities and economic endeavours. However, communities also have voiced their concerns about the compensation schemes.
“Despite adhering to legal and policy frameworks to ensure environmental, social and economic considerations in road improvement projects, it is imperative that we introduce the resettlement plan early, providing affected households and communities with an accepted compensation scheme and a clear timeframe,” said OXFAM country director Phean Sophoan.
She also urged the implementation of the ADB’s Safeguards Policy Statement on Involuntary Resettlement, incorporating tailored procedures and giving special attention to the needs of women and children.
“It is crucial that we prioritise the well-being of vulnerable groups in our development projects,” she said.
Sin Putheary, executive director of the CCC, said the criteria of the emerging twin concepts of environmental, social and corporate governance (ESG) and sustainable finance are socially and economically constructed and have the potential to promote equitable, inclusive and sustainable development in Cambodia.
ESG criteria are often used to gauge ethical and sustainability performance, and they are increasingly important for policy makers looking to support socially responsible and environmentally sustainable initiatives.
“This is the expected outcome of project implementation – enhanced knowledge sharing and increased collaboration among all stakeholders, as suggested by the findings,” said Putheary.
She added that the study’s recommendations propose the utilisation of these findings in multiple policies and legal frameworks to foster green growth and sustainable development across the nation.
