This UNCDF-supported project Innovations for Decentralization and Local Development (IDLD) is conceived as complementary to the larger UNDP/DFID/SIDA-supported PSDD. The Goal, Purpose and strategic objectives of this project are the same as those of the PSDD.

The IDLD project goal is to reduce poverty in Cambodia. Its purpose is pro-poor local development (including an improvement in coverage and quality of local infrastructure and services, better local-level natural resources management and accelerated and broad-based local economic development). Its outputs fall into three major categories, each corresponding to a strategic objective: (i) Strengthening sub-national government institutions, (ii) Increasing investments in local development; and (iii) developing a more effective policy, legal, and regulatory framework (prior to, and following, the enactment of the organic law on D&D).

As much of development financing for LD activities is provided by other donors both within and outside the PSDD, the IDLD focuses essentially on institutional and policy development outputs, with only minor elements of capital financing, as they may be needed, for testing the proposed policy and institutional innovations.