Social and environmental impact of ADB development projects on the livelihoods of Cambodian people Mak Sithirith

Summary of Presentation at Conference on Accounting for Development, June 23-24, 2000, University of Sydney

Cambodia is endowed with an exceptional natural environment. There is a close relation between the people of Cambodia and their environment. The dependency of rural people on these resources for their subsistence living has existed since time immemorial. At present, about 84% of the Cambodian population lives in rural areas1 . Apart from farming activities, they supplement their incomes by fishing and forest extraction. Moreover, the average rice yield per hectare is estimated at 1.2 ton, the lowest among the countries in Southeast Asia. Regarding fishery and forestry, about 5% of the total area is under fishing concessions 2 and 26% under the forest concession companies3. In addition, based on the Oxfam study report, less than 15% of the Cambodian population are landless4. So far, peoples access to fishery and forestry resources has been denied and this has a negative effect on their livelihoods. Any effort to fight poverty in Cambodia should stem from addressing the access to these resources and their future protection, so that food security and income of local people can be improved. It is recognized that other components also contribute to poverty reduction but is primarily important to prioritize the forestry, fishery and land resources as significant for rural Cambodia. However, the country operational strategy of the ADB for poverty reduction in Cambodia focuses on rural infrastructure development, rural finance, basic education, transportation and energy which, in fact, does not reflect the urgent needs of the poor. The poor might not need electricity, infrastructure and education while they lack foods. Road and other infrastructure cannot improve the living conditions of the poor who just walk on roads to the market and elsewhere, while not having land and access to natural resources. In contrast, those who are rich and
1

Kingdom of Cambodia, Ministry of Planning, National Institute of Statistics, General Population Census of Cambodia 1998, Final Result, July 1999. 2 MRC/Department of Fishery/DANIDA, Project for Management of Freshwater Capture Fisheries of Cambodia, 1998. 3 Global Witness. The Untouchables: A Briefing Document by Global Witness, December 1999. 4 Shaun Williams, Oxfam Land Study Report.

powerful can use most of these infrastructures to open up rapid destruction of the natural environment due to weak law enforcement and implementation. 1. Forestry The illegal logging crackdown by the government recently has impacts on the local people who exploit the forest for subsistence. This really contributes to increase of poverty. The ADB is mainly concerned about national revenue collection from the forestry sector rather than social problems happening with local communities. The ADB has been involved with the RGC to draft the law and policy on forestry issues but this seems to be stalled with no information regarding their status and expected adoption. Although the ADB initially involved NGOs in a participatory process, there has been limited access to subsequent revised drafts and a little attention given to the support of the affected communities5. The Forest Concession Review report by the ADB falls short of recommending cancellation of concessions on the basis of concession performance and legal conduct. The review gives inadequate consideration and weight to social and environmental concerns/issues. More than that the review focuses too much on technical issues. During the study the consultants did not consult the affected communities. They mainly followed what the Department of Forestry officials arranged for them. The ADB focuses on departmental and government control of concessionaires and makes recommendations for the local communities and NGOs involvement in concession monitoring 6. Recommendations: The forest policy formulation process should be public, broadly participatory and involve a range of stakeholders so that it generates and informs a national constituency. There should be greater consideration of local communities in the development of policies and laws that impact on their lives. Without this public participation and transparency, these legal and policy initiatives may have little value to people in Cambodia. Allow communities to set up community forestry wherever communities have a cultural or livelihood dependency on local forests. The ADB should not fund the Royal Government of Cambodia until they cancel the worst concessionaires and call for a moratorium on others.

2. Fisheries Fishing conflicts have been alarming recently throughout the country, especially around the Great Lake Tonle Sap where peoples access to fishing for
5 6

NGO statement on forestry for a Consultative Group Meeting in Paris, 2000. Brown, G. Comments on the ADB Concession Review, April 2000.

subsistence living has been denied by fishing concessionaires. The states mechanisms for avoiding these impacts on local people are inadequate. The commercial fishing lot system has failed to prevent illegal fishing. The illegal fishing is mainly committed by fishing concessionaires. It is a major cause of the destruction and the decline of fishery resources. Despite the recent crackdown on illegal fishing, the activities of the concessionaires remain unchanged as they seek to maximize their income in order to pay operational costs, government auction fees and numerous informal payments. The current Fishery Law was promulgated in 1987 under the then socialist government. Since then privatization of fishery resources has developed, and enforcement and implementation of the law has been inadequate. The effort to draft a new Fishery Law, with support from the World Bank, has shown the desire of the government to reform the fishery sector. However, the NGOs are concerned that unless there is adequate consultation, laws drafted by foreign consultants often do not sufficiently reflect the needs of local people who are affected by the law7 . Recommendations: The ADB should also focus its assistance on affected communities if its policy is aimed at poverty reduction. The ADB should also focus on the fishery sector as the impacts of dams in the upstream on fisheries in Cambodia is severe. The assistance to the fisheries sector by the ADB should focus on improving the welfare of the local communities affected by development in the fisheries sector. A narrow emphasis on increasing government revenues from fisheries should be avoided, as this may lead to unsustainable resource extraction.

3. Lands About 80% of the land belongs to the state. Less than 15% of the total population are landless. So far, land conflict has been widespread. About 3% of the population is involved in land conflicts. Only about 10% of the population has land ownership certificates. Land speculation has increased and that leads to increases in the price of the land. In some cases, some of the state lands were sold off by corrupt officials for their own benefits. The ADB has been involved in drafting the land law. The land law was prepared with support from the ADB. In the early phase, NGOs faced difficulty in convincing the government about the need of a good land law to resolve the land problems that occur throughout the country. The contribution of NGOs to the land law has been recognized as a fruitful means of improving the land law. The ADB
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NGO Statement on Fisheries for Consultative Group Meeting in Paris, May 2000.

should create similar opportunities that allow NGOs to contribute positive inputs from their fields to other laws under the ADB support line. 4. Dams The ADB has promoted dam building in the upstream countries along the Mekong and Mekong tributaries. Building dams causes serious impact downstream. Flood and drought resulting from dam building have emerged every year in Cambodia. While promoting dam building in the upper Mekong countries, the ADB suggests investment in flood control and irrigation systems in Cambodia. Similarly, the ADB pushes for protecting the Great Lake Tonle Sap, especially the fishery and wetland resources, while the impacts of the dams in the upstream countries on the Great Lake have been serious already8. The ADB is now pushing for the Stung Chinit water diversion project. The two major environmental concerns associated with the project are the impacts of the restored weir on fisheries and the impact of the use of pesticide and fertilizer on peoples health. The bank did not take into account the fisherfolks opinions with their assumption that the diversion weir improves the fisheries. The fish pass structure design proposed by the bank will not ensure its effectiveness, and experience at Pak Mun dam in Thailand has shown a failure of promises and disappointment for the affected communities. The project will submerge the agricultural lands of the people. The compensation for affected people will need to be fairly done. Land speculation in the area may increase and it will be difficult to get land for the land compensation option9 . Recommendations: The ADB should stop funding dam building. An EIA study should be conducted for any possible dam project. Affected communities should have fair compensation in order for them to continue their normal lives.

5. Road Construction The road construction project, with a loan from the ADB, linking Phnom Penh and Ho Chi Minh City has had some impacts on both people and the environment. People living along the highway will be displaced and their rice fields will be affected by the road construction. The compensation for the affected people is still a major concern. The ADB policy on compensation and resettlement issues seems to be poorly followed by
8 9

ADB, January 2000. Country Operational Strategy Study for the Kingdom of Cambodia. ADB, March 2000. Aide Memoire Asian Development Bank Loan Fact Finding Mission for the Stung Chinit Water Resources Development Project.

the government implementing agencies. The affected people have never been consulted and compensation has never been discussed. The people were poorly informed about the project and some people were forced to remove their houses. The resettlement plan has never been shown to the public. The environmental and social impact assessment were done without the knowledge of the local people. The study did not consult the communities, particularly those affected by the road construction. The result of findings has never been communicated to affected communities for their opinions. There are still concerns of how government can ensure transparency and avoid corruption. As ordinary people will also pay the loan, they should be involved in discussion, and have the right to question the government and punish corrupt officials in order to ensure repayment viability10 .

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Report of NGO Forum Survey on the affected people by road construction from Neak Loeung to Bavet Highway 1.