Cambodia : Sustaining Strong Growth for the Benefit of All
Cambodia has become one of the world’s leaders in poverty reduction and shared prosperity. Cambodia sustained an average growth rate of 7.6 percent in 1994-2015, ranking sixth in the world, and has now become a lower middle-income economy. Cambodia...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/620151496155751423/Cambodia-Sustaining-strong-growth-for-the-benefit-of-all http://hdl.handle.net/10986/27149 |
| Summary: | Cambodia has become one of the world’s
leaders in poverty reduction and shared prosperity. Cambodia
sustained an average growth rate of 7.6 percent in
1994-2015, ranking sixth in the world, and has now become a
lower middle-income economy. Cambodia’s success has ridden
on employment creation, although labor productivity gains
have been lower than in other fast-growing economies, partly
due to lower capital intensity. Growth has also been driven
to a large extent by the country’s rich and diverse natural
capital which supports the livelihoods of millions of
Cambodians. Going forward, Cambodia may not be able to rely
on the same factors that drove strong growth and poverty
reduction over the past two decades. Declining external
competitiveness threatens the sustainability of garments and
tourism and poses a challenge to economic diversification
and moving up the value chain. A number of institutional,
human capital, and, to a lesser extent, infrastructure
constraints hamper competitiveness as well as the creation
of a vibrant private sector in Cambodia. In light of these
challenges and risks, areas of development for ensuring
strong, inclusive, and sustainable growth with shared
prosperity in Cambodia going forward were identified, based
on analysis and consultations with stakeholders. The areas
for development were ranked based on the impact
interventions will have on maintaining strong and
sustainable growth and achieving poverty reduction and
shared prosperity, in terms of creating and enhancing
households’ participation in better economic opportunities,
the share of the population affected, and complementarity
with other interventions. |
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