Cambodia’s Governance Risk Assessment and Management Plan Under GACAP II Raises Concerns about Phasing Out GGFs
The Asian Development Bank (ADB) has released a country-level governance risk assessment and management plan for Cambodia, which raises concerns about the need to phase out the Good Governance Framework (GGF) approach in favor of the GACAP II framework.
Assessing Risks at Multiple Levels
The report assesses risks at the country, sector, and program/project levels. While the GGF focuses mainly on governance risks at the project level, the two approaches share similarities at the program and project levels. As a result, experts recommend that the GGF be gradually phased out and replaced by GACAP II risk assessments and management plans.
Key Governance Issues in Cambodia
The assessment identifies key governance issues in Cambodia, including:
- Public financial management
- Procurement
- Combating corruption
These issues highlight the need for a risk-based approach to governance assessment, focusing on risks that may lead to reduced development effectiveness due to leakage or suboptimal use of resources.
Country-Level Assessment and Sector-Specific Risks
The report notes that Cambodia’s first GACAP II assessment is a country-level document, which will guide the preparation of sector-specific assessments and management plans. Preliminary sector-specific risks have been assessed for priority sectors under the 2011-2013 Country Partnership Strategy (CPS).
Transition from GGFs to GACAP II
Experts caution that unless resources are devoted to preparing risk assessments and management plans for both ongoing and new programs/projects, a gradual transition from GGFs to GACAP II will be necessary. This means that both approaches will coexist until the GGFs are fully phased out.
Recommendations and Next Steps
The report’s recommendations highlight the importance of:
- Monitoring governance risks
- Developing risk management plans at all levels, from country and sector assessments to program and project assessments
- Using related assessments where available and relevant, such as public expenditure financial accountability assessments (PEFAs)
Cascading Approach to Governance Assessments
The ADB’s GACAP II framework provides a cascading approach to governance assessments, with country-level GRARMPs guiding the preparation of sector risk and program/project assessments and management plans. The Cambodia report is the first country-level assessment under this framework.
Conclusion
Overall, the report underscores the need for a comprehensive approach to governance risk assessment and management in Cambodia, highlighting areas where reforms are needed to improve development effectiveness.