Document Abstract
Published:
2013
Cambodia: rapid growth with institutional constraints
Cambodia will shortly depart the LDCs group, yet supply side challenges must be tackled
The features of Cambodia’s development record are of particular importance .This paper examines Cambodia’s socioeconomic development since the early 1990s peace settlement.
The paper notes that the country’s economic growth has seemingly been the fastest among post-conflict societies, and the growth has been driven by a number of factors. These include the credible restoration of security, large public and private capital inflows, economic openness, prudent macroeconomic management, and an integrating neighborhood.
Findings contain:
However, the paper highlights some key challenges, including rising inequality, uneven spatial development, weak institutions, and high levels of corruption. In addition, Key supply side challenges remain, particularly education at all levels and rural infrastructure. Furthermore, Cambodia has limited space in its trade and commercial policies, and it does not have monetary policy independence.
Looking forward, the author emphasises the importance of strengthening supply side capabilities, broadening the benefits of growth, and developing stronger institutions and property rights. Additionally, the document underscores that the priority of growth at all costs will need to give way to greater attention to distributional considerations, between households, regions, and particularly the capital and the rest of the country.
The paper notes that the country’s economic growth has seemingly been the fastest among post-conflict societies, and the growth has been driven by a number of factors. These include the credible restoration of security, large public and private capital inflows, economic openness, prudent macroeconomic management, and an integrating neighborhood.
Findings contain:
- Cambodia has achieved much more rapid economic development over the past 2 decades than even the most optimistic forecasts could have projected
- the Cambodian people are now better educated and fed, and they have greater social and occupational choice than ever before
- at this rate of progress, the country will very shortly graduate from the ‘least developed’ group of countries, and within a decade or so, it would enter the middle-income developing group
However, the paper highlights some key challenges, including rising inequality, uneven spatial development, weak institutions, and high levels of corruption. In addition, Key supply side challenges remain, particularly education at all levels and rural infrastructure. Furthermore, Cambodia has limited space in its trade and commercial policies, and it does not have monetary policy independence.
Looking forward, the author emphasises the importance of strengthening supply side capabilities, broadening the benefits of growth, and developing stronger institutions and property rights. Additionally, the document underscores that the priority of growth at all costs will need to give way to greater attention to distributional considerations, between households, regions, and particularly the capital and the rest of the country.
