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p. 57 of 95 BACK | NEXT Message from the Chairman of the Board of Directors Members, Capital Stock and Voting Power The Record Abbreviations 2004 in Review: Board of Directors' Report Special Theme: The Changing Face of the Microfinance Industry: Building Financial Systems for the Poor Part 1: Institutional Effectiveness Part 2: Poverty Reduction Strategic Priorities Thematic Priorities Regional Perspectives East and Central Asia Mekong Cambodia Lao People’s Democratic Republic Myanmar Thailand Viet Nam The Pacific South Asia Southeast Asia Part 3: Financial Statements: Management's Discussion and Analysis

Annual Report 2004 : Part 2: Poverty Reduction : Mekong

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Cambodia

Strategy and Policy Dialogue. ADB prepared a new CSP 2005–2009 to support implementation of the government's rectangular strategy for growth, employment, equity, and efficiency. In line with the priorities and strategies identified in the strategy, the CSP will focus on (i) broad-based economic growth through investments in physical infrastructure, development of the financial sector, support for greater regional integration, sustainable development of SMEs, and investments in agriculture and irrigation; (ii) inclusive social development focusing on education, gender mainstreaming, controlling communicable diseases, the provision of rural water supply and sanitation facilities, and community-based, sustainable management and conservation of natural resources in the Tonle Sap Basin; and (iii) good governance supporting improvements in public financial management and decentralization to strengthen public service delivery, improve accountability, and reduce corruption.

Support will continue for legal, regulatory, and institutional reforms to improve corporate governance and efficiency in the sectors in which ADB operates. A geographic (Tonle Sap Basin) and subregional focus (GMS) supported one of the poorest and environmentally sensitive regions of Cambodia and provided benefits from the opportunities provided by regional cooperation. The CSP was based on wide-ranging consultations with the government, donors, civil society, and the private sector. ADB, the World Bank, and the United Kingdom's Department for International Development and later the UN System closely cooperated and coordinated on country strategies and policy dialogue to reduce transaction costs to the government.

Loans and Technical Assistance. ADB approved three loans totaling $65 million for two projects. A program loan and a project loan will increase educational opportunities for the poor through policy reforms, institutional capacity building, developing facilities, decentralized technical and vocational education and training, and targeting education incentives to the poor. The other project will create an enabling environment for SMEs by establishing a development framework, enhancing governance and business regulations, improving access to finance, and assisting in the development of business services and public-private partnerships. Twelve technical assistance activities totaling $4.6 million and two grants from the Japan Fund for Poverty Reduction totaling $4.0 million were also approved.

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