Cover -- Contents -- List of Tables, Figures, and Boxes -- Abbreviations -- Foreword -- Executive Summary -- 1 Introduction -- 1.1 Purpose and Background -- 1.2 Methodology and Outline of Report -- 2 Overview of the Emerging Legal and Regulatory Framework -- 2.1 Introduction -- 2.2 The Constitution (as Amended 1999) -- 2.3 Law on Provincial and Municipal Budgets and Asset Management Regime (1998) -- 2.4 Law on Commune and Sangkat Administrative Management (2001) -- 2.5 Organic Law on Administrative Management of Capital, Provinces, Municipalities, Districts and Khans (2008) -- 2.6 Law on Public Finance Systems (2008) -- 2.7 Draft Law on Financial Regime and State Property Management for Subnational Administrations -- 2.8 Law on Audit (2000) -- 2.9 Law on Taxation (1997 as Amended) -- 2.10 Overview and Assessment -- 3 The Institutional Setting for Deconcentration and Decentralization Reforms -- 3.1 Introduction -- 3.2 Ministry of Interior -- 3.3 National Committee for Democratic Development of Subnational Administrations -- 3.4 Ministry of Economy and Finance -- 3.5 National Audit Authority -- 3.6 Selected Line Ministries -- 3.7 Subnational Administration -- 3.8 Development Partner Activities -- 3.9 Related Reform Programs -- 3.10 Institutional Assessment -- 4 Intergovernmental Financing and Recent Fiscal Trends -- 4.1 Introduction -- 4.2 Financial Arrangements of Communes and Sangkats -- 4.3 Financial Arrangements of Provinces and Municipalities -- 4.4 Deconcentrated Expenditures of Central Ministries -- 4.5 Assessment - Likely Directions for Reform -- 5 Policy and Planning Framework for Implementing Reforms -- 5.1 2005 Strategic Framework for Decentralization and Deconcentration Reforms -- 5.2 Ten-Year National Program -- 6 Critical Issues for Reform -- 6.1 Introduction -- 6.2 Need for a Clearer Policy Framework.

6.3 Systems of Public Administration Are Largely Dysfunctional -- 6.4 Better Coordination of Government and Development Partner Efforts -- 6.5 Strengthening the Legal and Regulatory Framework -- 6.6 Clarifying Assignment of Expenditure Functions -- 6.7 Finalizing Assignment of Tax and Nontax Revenues -- 6.8 Designing a System of Intergovernmental Transfers -- 6.9 Designing the Public Financial Management System at Subnational Levels -- 6.10 Stronger Governance and Audit Systems -- 6.11 Building Capacity -- 7 Strategic Issues for ADB -- 7.1 Introduction -- 7.2 ADB's Indicative Assistance Pipeline for Cambodia -- 7.3 Case Reviews -- 7.4 Issues for ADB to Consider -- 8 Medium- to Longer-Term Programming Considerations -- 8.1 Direct Support for Reform -- 8.2 Indirect (Sector-Focused) Support -- Appendixes -- 1 Law on Provincial and Municipal Budgets and Asset Management Regime (1998) -- 2 Law on Commune and Sangkat Administrative Management (2001) -- 3 Organic Law on Administrative Management of Capital, Provinces, Municipalities, Districts and Khans (2008) -- 4 (Draft) Law on Financial Regime and State Property Management for Subnational Administrations -- 5 Schedule of Persons Met -- References -- Tables -- 4.1 Commune and Sangkat Aggregated Fiscal Data, 2002-2007 -- 4.2 Total Provincial Government Revenues, 2002-2008 -- 4.3 Expenditures of Provinces and Municipalities, 2002-2008 -- 4.4 Civil Service Staff at Central and Decentralized Locations, 2007 -- 4.5 Vertical Allocation of Resources, Government Budget -- 4.6 Horizontal Allocation of Resources, Government Budget, 2007 -- 5.1 Summary of Program Funding Needs, 2010-2012 -- 7.1 ADB Indicative Assistance Coded by Functional Characteristics -- Figures -- 4.1 Breakdown of Commune Revenues, 2002-2007 -- 4.2 Breakdown of Commune Expenditure, 2002-2007.

4.3 Components of Provincial and Municipal Revenue, 1999-2008 -- 4.4 Components of Provincial and Municipal Expenditure, 2002-2008 -- Boxes -- 3.1 (Draft) Principles for Harmonizing Future Development Partner Support -- 7.1 ADB Commune Council Development Project, Phases 1 and 2 -- 7.2 ADB Tonle Sap Sustainable Livelihoods Project -- 7.3 Tonle Sap Poverty Reduction and Smallholder Development Project -- 7.4 Public Financial Management for Rural Development Program, Grant for Subprogram 1 and Grant Assistance -- 7.5 Agriculture Sector Development Program.