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Economic Development Economic Development in Cambodia: Toward in Cambodia: Toward Pro-Poor? Pro-Poor? By Heng Chou Cambodian Rehabilitation and Development Board Council for Development of Cambodia “Dialogue on Emerging Asian Approaches to Development Cooperation” New Delhi, 05-07 March 2012
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Economic Development in Cambodia: Toward Pro-Poor?

Feb 22, 2016

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Economic Development in Cambodia: Toward Pro-Poor?. By Heng Chou Cambodian Rehabilitation and Development Board Council for Development of Cambodia “Dialogue on Emerging Asian Approaches to Development Cooperation” New Delhi, 05-07 March 2012. A brief history of modern Cambodia. - PowerPoint PPT Presentation
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Page 1: Economic Development in Cambodia: Toward Pro-Poor?

Economic Development in Economic Development in Cambodia: Toward Pro-Cambodia: Toward Pro-Poor?Poor?

By Heng ChouCambodian Rehabilitation and Development BoardCouncil for Development of Cambodia

“Dialogue on Emerging Asian Approaches to Development Cooperation”New Delhi, 05-07 March 2012

Page 2: Economic Development in Cambodia: Toward Pro-Poor?

A brief history of modern A brief history of modern CambodiaCambodia1991 Signing of the Paris Peace

Accord1993 First UN-supervised elections1998 Peace fully achieved and

national unity2003 Constitutional reforms

ensuring political stability

Young country, on fragile foundation, yet firmly moving forward

Page 3: Economic Development in Cambodia: Toward Pro-Poor?

Characteristics of Characteristics of Cambodia’s economic Cambodia’s economic growthgrowth

Page 4: Economic Development in Cambodia: Toward Pro-Poor?

An unusual growth An unusual growth performanceperformance

Page 5: Economic Development in Cambodia: Toward Pro-Poor?

Income doubled during past Income doubled during past decadedecade

Page 6: Economic Development in Cambodia: Toward Pro-Poor?

Yet benefits unevenly Yet benefits unevenly distributed…distributed…Living standards improved but at

different rates

Page 7: Economic Development in Cambodia: Toward Pro-Poor?

With growth, inequality With growth, inequality increasesincreases

Page 8: Economic Development in Cambodia: Toward Pro-Poor?

Inequality driven by rural Inequality driven by rural inequalityinequality

Page 9: Economic Development in Cambodia: Toward Pro-Poor?

This represents a development This represents a development and legitimacy challenge for a and legitimacy challenge for a democratic governmentdemocratic government

Page 10: Economic Development in Cambodia: Toward Pro-Poor?

Royal Government of Royal Government of Cambodia:Cambodia:Extending growth to the poor Extending growth to the poor and the vulnerableand the vulnerable

Page 11: Economic Development in Cambodia: Toward Pro-Poor?

Rectangular Strategy for Rectangular Strategy for Growth, Employment, Growth, Employment, Efficiency and Equity Phase 2 Efficiency and Equity Phase 2 launched in 2008launched in 2008“Although we have managed to reduce

poverty rate … through high economic growth and pro-poor policies … the rural poverty rate remains high. Furthermore the gap between the rich and the poor… remains a challenge.”

“RS II is a long term strategy based on the following fundamentals: ….Third—ensuring equitable distribution of opportunities and the fruits of economic growth.”

Page 12: Economic Development in Cambodia: Toward Pro-Poor?

Public Financial Management Public Financial Management Reform Program 2004-2015Reform Program 2004-2015

Pre-PFM public finance: allocative deficiency

PFM: improve budget credibility and allocative efficiency

Page 13: Economic Development in Cambodia: Toward Pro-Poor?

Priority spendingPriority spendingEducationHealthAgricultureRural development

Page 14: Economic Development in Cambodia: Toward Pro-Poor?

Spending for agriculture (% Spending for agriculture (% GDP 2007-2009)GDP 2007-2009)

Page 15: Economic Development in Cambodia: Toward Pro-Poor?

Government capital Government capital spending (% of government spending (% of government spending 2007-2009)spending 2007-2009)

Page 16: Economic Development in Cambodia: Toward Pro-Poor?

Social safety net for the Social safety net for the poor?poor?Recognition of the need for a social

safety netBuilding blocks are still emerging

and fragmented◦Health equity fund for example;

selectively implemented.◦ ID Poor (identification of the poor)

Limited coverage and finance2008 Cambodia Development

Cooperation Forum: consensus yet need for more time and work

Page 17: Economic Development in Cambodia: Toward Pro-Poor?

Development cooperation: a Development cooperation: a tool for social redistribution?tool for social redistribution?

A changing landscape for development cooperation in Cambodia

Marginalization of ODA?

Page 18: Economic Development in Cambodia: Toward Pro-Poor?
Page 19: Economic Development in Cambodia: Toward Pro-Poor?

Growth and increased Growth and increased spending capacityspending capacity

Page 20: Economic Development in Cambodia: Toward Pro-Poor?

Cambodia is an attractive FDI location

Page 21: Economic Development in Cambodia: Toward Pro-Poor?

ConclusionConclusionCoherent pro-poor growth strategy

is still emerging.The core of pro-poor growth

strategy must center around agriculture on which a majority of the population depends their livelihood.

If managed and allocated well, aid can be a useful tool in a pro-poor growth strategy.