MEF agrees to have a policy paper to provide support for the informal economy in Cambodia
On 16 February, Ministry of Economy and Finance (MEF): 8 CSOs representatives met with the officials of the Ministry of Economics and Finance, H.E Chheang Narith, Director of the General Department of Policy, and his colleagues. The purpose of the meeting was to work with the Government and relevant stakeholders to enhance the protection of the informal economist at the policy level.
At the start of the meeting, H.E Chheang Narith presented that the Cambodia Labour Force Survey in 2019 shows informal economists amounted to as much as 89%1. It’s important for us to tackle these issues because it develops the society and economy of Cambodia, increases income for employees, entrepreneurs, and informal economists, and enhances social protection, national security funds, and social welfare.
H.E Chheang Narith (R) sitting nearby his colleagues, leads the meeting.
Since 2022, MEF has met with relevant stakeholders such as CSOs, development partners, informal economists, etc. As a result, the ministry has drafted a document; so-called preliminary consultation, basically used for the discussion that day, he added.
The ministry also revealed plans to enhance the informal economists through providing capacity building, reaching out to those whose businesses haven’t been permitted, and supporting them financially. The plans are split into short, medium, and long timeframes.
Mr. Son Chey, Executive Director of the Affiliated Network for Social Accountability (ANSA), and the presenter on behalf of the CSOs, raised challenges, suggestions, and actions to be taken, where the informal economists 1.) lack legal support and policy framework, and procedures on the business permits, 2.) have no proper vending spots, 3.) lack skills, 4.) have no preparatory plan to respond to disasters, and 5.) lack capital and even stay in debt of bank loan (link to the detail list of input).
The presented contents are compiled from a compendium of 5 documents, namely Challenges in accessing OWSO and Social and Economy Rights for Young Women Entrepreneurs, Assessment Report on the Impact of Covid-19 on Women Street Vendors and their Socio-Economic Rights, Analysis of the NSSF Policy Framework and its Implementation Requirements for Female Street Vendors in Cambodia, Policy Analysis Report: ASEAN Street Vending Policy Best Practices, and Snowball Survey Report on the Needs of People with Disability.
The ministry accepted those inputs and stated that they were informative. The information constituted the draft document the Ministry presented at today’s meeting. They would also have a more realistic draft in late March. We would meet again in a timely manner, H.E Narith added.
“Authority at commune/sangkat level should have had the authority to issue a business certificate, as it is faster and cost-effective. It’s beneficial for vendors to seek loans, receive national security funds, etc. It, therefore, conforms to the 3-year moving Commune Investment Plan where commune/sangkat can allocate budgets to support the formal and informal economists financially. The ministry should find ways to open discussions between the local authority and vendors on specific issues. While some issues required inter-ministerial intervention, Penh suggested having a compromised mechanism on the responsibilities of the relevant ministries.”
Mr. Son Penh (middle), Mr. Son Chey (2nd R), and surrounding CSOs Representatives
The meeting sealed a constructive discussion that CSOs representatives and the ministry could discuss more deeply on supporting the informal economists, suggestions, and proposed actions. From the policy level to specific issues, the meeting concluded that the policy should cover the informal economists more broadly and inclusively, speed up the business permits, delegation of authority to commune/sangkat administration to issue the business permits, open discussion between the authority and vendors, provide capacity building for formal and informal economists, and support the informal economists financially.
The consultation meeting was co-organized by the Coalition for Partnership in Democratic Development (CPDD), Advocacy and Policy Institute (API), Independent Democracy of Informal Economy Association (IDEA), the Affiliated Network for Social Accountability (ANSA), Coalition for Integrity and Social Accountability (CISA), Federation of Associations for SMEs of Cambodia (FASMAC), Aide et Action (AEA), and PACT Cambodia, and development partners. 11 representatives from the 8 CSOs and 10 from the Ministry’s General Department of Policy attended the meeting.
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