Pandemics

An integrated approach to sustainable recovery is necessary to enhance the development impact of the CARES program. While the CPRO’s primary purpose was to deliver emergency assistance to support the government’s pandemic response, it also supported overall measures to keep the government on track in pursuing structural reforms that would enable a sustainable recovery from the pandemic. Such measures cohere around an integrated approach to meet Cambodia’s medium- and long-term recovery needs, including an improved investment environment and sound fiscal governance.

A government-led program with coordinated support from development partners, is effective in enabling a rapid, timely, and highly relevant emergency response to pandemics. ADB’s COVID-19 Active Response and Expenditure Support (CARES) program proved efficacious in channeling support for the Cambodian government to address the adverse social, health, and economic impacts of the COVID-19 pandemic.

It is important to target monitoring at end-state outcomes. Due to the lockdowns and mobility restrictions; early difficulty in the speed of PEN disbursements was unavoidable. Although the government recognized the need for urgent rollout; poor infrastructure raised the risk of leakage through corruption and led to a slower and more cautious approach than would otherwise have been optimal. A lesson to be drawn from the experience involves the need to target monitoring activities at end-state outcomes.

The program reinforced the need for flexible targeting in pandemic situations. The Indonesian government was quick to recognize the tension between sustaining economic activity and minimizing the spread of disease through physical distancing and quarantine. At times; the National Recovery Program (PEN) was modified to strike a better balance. For example; the government increased its support for ultra-microenterprises midway through the program; pivoting its assistance program to more than 1 million street vendors who were economically displaced by restrictions on mobility.