Asia Development Bank’s (ADB) Financing COVID-19 Post-Pandemic Economic Recovery

Asia Development Bank’s (ADB) Financing COVID-19 Post-Pandemic Economic Recovery

The Asian Development Bank (ADB) provided financial support of US$332 million to strengthen the Royal Government of Cambodia’s (RGC) COVID-19 response, develop the financial industry, build urban infrastructure, and improve the road network. However, some projects implemented between 2021 and 2022 have yielded mixed outcomes that could affect vulnerable populations, lead to the deterioration of indigenous peoples’ living conditions, or exacerbate local social conflicts. As a result, social safeguard policies and action plans are necessary to prevent these and other unintended consequences. This study specifically focuses on the Road Network Improvement Project, which aims to rehabilitate 48.8km of
national and provincial roads in Prey Veng and Kandal provinces, to boost economic development along the Greater Mekong Sub-Region (GMS) Southern Economic Corridor.

To understand these problems, the Cooperation Committee for Cambodia (CCC), a Fair Finance Cambodia coalition member, in collaboration with Fair Finance Asia (FFA), conducted an analysis of green economy policies and international experience with national strategies in Cambodia. The study focuses on the case of “ADB’s Financing of the COVID-19 Post-Pandemic Economic Recovery.” The research objectives were:

  • To assess the positive and negative impacts on communities from the ADB’s financing of COVID-19 post-pandemic economic recovery in Cambodia;
  • To understand the feedback mechanism in place to gather input from communities within ADB;
  • To assess the policy gaps in green and sustainable economy and related policies between the ADB, Ministry of Economic and Finance (MEF), and National Bank of Cambodia (NBC) and
  • To provide policy recommendations to key stakeholders to promote inclusivity and maximize the positive impact on beneficiaries of the green economy policy.

Read the full report here.

Disclaimer: The content of this publication is the sole responsibility of Fair Finance Cambodia and can in no way be taken to reflect the views of the Fair Finance Asia/ Fair Finance International network.

About Fair Finance Cambodia

The Fair Finance Cambodia (FFC) coalition aims to reduce the negative impacts of cross-border investments on human rights, the environment and climate change, particularly those made by multinational financial institutions, banks and insurers while increasing inclusive economic development. FFC is operational in Cambodia – wherein the Fair Finance Cambodia Civil Society Organization (CSO) coalition leads research and engagement with key stakeholders, including financial regulatory and policymaking institutions, banking and investment associations, multilateral development banks and academia. FFC is a member of Fair Finance Asia, a regional network of CSOs committed to ensuring that financial institutions’ funding decisions in the region respect local communities’ social and environmental well-being.

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