Page 4 - Sustainability and entrepreneurship for CSO's and CSO networks Cambodia 1 November 2018

INTRODUCTION
After the 1993 elections millions of dollars flooded into Cambodia to support health, education, governance, income generation and other sectors. Funding was partly distributed through the government institutions and channeled through local Civil Society Organisations (CSOs). The number of CSOs grew to over 4.000 in 2016 employing 63.000 trained staff to channel international funding that amounted to 600 million US $ on average.
Today this situation is changing: international donors decide to leave the country, to channel the funds through the government, their own offices or to seek collaboration with a few strategic partners, leaving most of the locally operating CSOs in the country with no or little budget. The contribution of the Official Development Aid (ODA) in Cambodia declined from 11% GDP in 2010 to 5% GDP in 2016.
Cambodia has approximately 4.000 registered CSOs of which 1.350 are operational, half are doing reasonably well, while 80% of the received funds is spent in Phnom Penh.
The decrease in international funding channeled through local CSOs is expected to continue, meaning that more local CSOs will find themselves in a situation where they are unable to run a stiff competition and will lose their business. This means that besides the loss of jobs, precious knowledge and information about the situation of people in the provinces and how they were supported, will evaporate together with the space for people who want their voices heard and to become part of an open and inclusive society. This, you may say, is part of the job. Cambodia enjoyed almost 20 years of high tide of foreign aid, now it is time for low tide. Other sectors in society, such as the private sector, Foreign Direct Investment (FDI) and government will continue to flourish and will continue to gain influence and power in the Cambodian society.
Cambodian CSOs over the years have not been very innovative or pro-active towards changes in the funding market. Instead CSOs have become inward looking, spending their capacity on bureaucracy, project applications and competition. CSOs in many cases are implementing agencies, rather than leaders and pioneers on CSO issues.
The CSO sector in Cambodia is at risk to nearing the end of it's life cycle. This book provides CSOs with practical suggestions to find alternative ways to stay in business and to (again) become relevant, requested and respected. This is not an easy task. It takes time and courage to develop new insights and practices. But it is worthwhile. The CSO sector in Cambodia is too important to just let it fade away.
This book can be used as a manual. You can do the exercises, respond to questions and watch some of the videos.
Chapters 1 - 3 contain introductory information on the Cambodian CSO sector, including CSO networks. Chapters 4 - 7 will lead you through exercises to help you with your restructuring process. Chapters 8 - 12 contain information and tips about social entrepreneurship, resource mobilisation, marketing and business planning.
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