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There are a number of websites that contain statistical information Cambodia's current development situation. Look here for links to these sites. To read about NGOs and Development Assistance to Cambodia, click here.

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Country Context

Cambodia is one of the poorer nations in the world.  Cambodia ranks 130th out of 175 nations on the United Nations Development Programs Human Development Index (2003). Poverty in Cambodia has largely resulted from high population growth, inadequate opportunities, low capabilities, insecurity, exclusion and vulnerability (NPRS 2003, CSD/RGC, 20 Dec 2002).

The majority of rural Cambodians remain desperately poor. Approximately 36 percent (4.9 million) of the population lives below the poverty line (2003). Ninety percent (90%) of the poor live in rural areas and 71% are engaged in agricultural activities.

Social

Cambodia's social indicators are amongst the lowest in Asia. Life expectancy at birth is 57 years (United Nations Human Development Report 2003). Seventy percent of the rural population does not have access to safe water and 83% does not have access to sanitation.  The adult illiteracy rate is over 68%. The population of Cambodia is estimated at 13.8million in 2003, the last census having been completed in 1998 (population 11.5 million). The population is growing at an average rate of 2.5 percent, the second highest growth rate in ASEAN (Association of Southeast Asian Nations) countries. 

Prolonged civil war, internal displacement and other social and economic factors have resulted in almost 20% of households headed by women.  Women are generally in a disadvantaged position in both family and society. The poverty rate for female-headed households is 48%.

Cambodia's most vulnerable groups include internally displaced persons, returned refugees, war widows, orphans, street children, squatters, ethnic minorities and people with disabilities. Poor health is a major cause of impoverishment and other forms of social deprivation.

Political

Cambodia is at peace today after decades of warfare and civil strife.  The third national assembly elections, since the 1991 Paris Peace Accords, were held in July 2003.  Commune Council elections were held in February 2002 in 1,621 communes and represent the Royal Government of Cambodia's (RGC) efforts at encouraging new political developments towards improved local governance and increased grassroots participation in the nation's development processes.

The lack of significant progress in the area of legal and judicial reform however, continues to constrain further advancements in democratic processes and undermines the progress achieved in key social sector reform areas. In addition, lack of access to information and decision making of government policies has prevented the poor from participating in community activities.

Economic

Economic growth rates over the past decade have averaged approximately 5%, with low inflation and a stable exchange rate. These growth rates are insufficient to make a dent in the incidence of poverty. Gross Domestic Product is expected to grow by 6.1% for the period 2001-2005, mainly fueled by exports in the garment sector and growth in the tourism industry.

Agriculture accounts for 33.4% of GDP and employs 68.4% of the labour force (2002). The average growth in agriculture employment has been less than 2% and is not keeping pace with the increase in the population. Low agricultural productivity and limited employment opportunities in rural areas are spurring migration from rural to urban areas.

Cambodia has a gross domestic product (GDP) per capita of around USD297 (2002). The estimated per capita income (2000) was USD271 with an average monthly income for wage earners of USD31 (2001). The standard of living for Cambodians is one of the lowest in Asia.

The Royal Government is a member of ASEAN, has joined the AFTA (the ASEAN Free Trade Agreement) and more recently acceded to the WTO (World Trade Organisation). Numerous legal reforms are underway to support Cambodia's WTO membership, yet some concerns remain that poor Cambodians may in fact be adversely affected by the implementation of the various trade policies.

National Development Priorities of RGC

The development vision of the Royal Government of Cambodia is to have a socially cohesive, educationally advanced and culturally vibrant Cambodia without poverty, illiteracy and disease. Realizing the vision will require continued adherence to the principles of the market economy, the values of democracy and social justice, human rights and welfare, and the formulation and implementation of policies to reduce poverty by promoting sustainable economic growth and social development (improved governance.)

The development strategies of the Royal Government of Cambodia are: (1) to foster broad based sustainable economic growth with equity, with the private sector leading the role;  (2) to promote social and cultural development by improving access of the poor to education, health, water and sanitation, power, credit markets and information and appropriate technology; (3) to promote sustainable management and use of natural resources and the environment; and (4) to improve the governance environment through effective implementation of the Governance Action Plan.

Key priorities for implementation of the Governance Action Plan (GAP) include: civil service reform, decentralization, military demobilization, legal and judicial reform, gender equity, public financial management, anti-corruption and natural resource management. The Government's key strategic message is that economic growth is a prerequisite for poverty reduction and that the key to economic growth is private sector development.

The Royal Government of Cambodia, through a highly consultative process with government agencies, donors, NGOs, civil society organisations and key institutions  produced and approved a National Poverty Reduction Strategy (NPRS) in late 2002. The NPRS outlines pro-poor actions to improve rural livelihoods, promote job opportunities, ensure better health, nutrition and education outcomes and to reduce vulnerability.

To read about NGOs and Development Assistance to Cambodia, click here.

 

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