Cambodia’s poverty rate dropping rapidly

Phom Penh_Arno Maierbrugger
Traffic in Phom Penh © Arno Maierbrugger

The United Nations hailed Cambodia for its accomplishments in meeting its Millennium Development Goal targets in 2015. In a recent report, the UN calls Cambodia an “early achiever” performing “particularly well” on poverty alleviation.

As the Cambodian economy grew on average 7.8 per cent annually from 2004 to 2014, achieving one of the fastest growth rates in the world during this period, some five million people were lifted out of poverty in the period. Cambodia’s poverty rate had been reduced to 14 per cent, down from 53.2 per cent in 2004. At the same time, an increasing number of Cambodians are entering the middle class. In 2016, Cambodia’s economic status will be elevated to the level of a lower-middle income country and the nation will be leaving the league of developing countries.

It is the government’s ambition to transform Cambodia into a middle-income country by 2030 and a high-income country by 2050.

Cambodia is expected to sustain its growth into 2016 thanks to low oil prices and increased exports, in particular to the members of the ASEAN Economic Community (AEC). However, for Cambodia to benefit from opportunities offered by the AEC, sustained efforts are needed to put a halt to economic crime, government corruption and commercial tax evasion. Currently the country is losing billions to illicit financial outflows and money laundering across international borders.

Since 1990, Cambodia has been a major benefactor of global aid, with annual receipts increasing from $300 million in 1993 to more than $800 million dollars by 2012. While two decades of aid significantly contributed to the country’s development, the constant inflow of aid money also fuels Cambodia’s persistent problems, including corruption, weak institutions, poor governance, a donor-dependent aid industry absorbing a skilled workforce and a mindset of aid entitlement. Thus, the UN strongly recommends that the flow of aid has to be reduced and the respective mindset has to be changed if Cambodia wants to stand on its own feet in the future.

Cambodia Tonle Sap_Arno Maierbrugger
Boats on the Tonle Sap river © Arno Maierbrugger

 

 



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[caption id="attachment_27648" align="alignleft" width="230"] Traffic in Phom Penh © Arno Maierbrugger[/caption] The United Nations hailed Cambodia for its accomplishments in meeting its Millennium Development Goal targets in 2015. In a recent report, the UN calls Cambodia an "early achiever" performing "particularly well" on poverty alleviation. As the Cambodian economy grew on average 7.8 per cent annually from 2004 to 2014, achieving one of the fastest growth rates in the world during this period, some five million people were lifted out of poverty in the period. Cambodia’s poverty rate had been reduced to 14 per cent, down from 53.2 per cent...

Phom Penh_Arno Maierbrugger
Traffic in Phom Penh © Arno Maierbrugger

The United Nations hailed Cambodia for its accomplishments in meeting its Millennium Development Goal targets in 2015. In a recent report, the UN calls Cambodia an “early achiever” performing “particularly well” on poverty alleviation.

As the Cambodian economy grew on average 7.8 per cent annually from 2004 to 2014, achieving one of the fastest growth rates in the world during this period, some five million people were lifted out of poverty in the period. Cambodia’s poverty rate had been reduced to 14 per cent, down from 53.2 per cent in 2004. At the same time, an increasing number of Cambodians are entering the middle class. In 2016, Cambodia’s economic status will be elevated to the level of a lower-middle income country and the nation will be leaving the league of developing countries.

It is the government’s ambition to transform Cambodia into a middle-income country by 2030 and a high-income country by 2050.

Cambodia is expected to sustain its growth into 2016 thanks to low oil prices and increased exports, in particular to the members of the ASEAN Economic Community (AEC). However, for Cambodia to benefit from opportunities offered by the AEC, sustained efforts are needed to put a halt to economic crime, government corruption and commercial tax evasion. Currently the country is losing billions to illicit financial outflows and money laundering across international borders.

Since 1990, Cambodia has been a major benefactor of global aid, with annual receipts increasing from $300 million in 1993 to more than $800 million dollars by 2012. While two decades of aid significantly contributed to the country’s development, the constant inflow of aid money also fuels Cambodia’s persistent problems, including corruption, weak institutions, poor governance, a donor-dependent aid industry absorbing a skilled workforce and a mindset of aid entitlement. Thus, the UN strongly recommends that the flow of aid has to be reduced and the respective mindset has to be changed if Cambodia wants to stand on its own feet in the future.

Cambodia Tonle Sap_Arno Maierbrugger
Boats on the Tonle Sap river © Arno Maierbrugger

 

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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