Although country contextual differences and pre-conditions must be
\ncarefully considered when attempting to replicate economic growth and poverty
\nreduction models, Cambodia could consider experiences of some Asian countries
\nlike China, India, South Korea, Thailand and Vietnam to further improve its
\npoverty reduction strategies and implementation. Cambodia could also utilise
\nforeign assistance and international cooperation by redirecting resources to support
\nactivities which have the highest possible effects on poverty alleviation.In the case of China\u2019s development experience, Cambodia can learn
\nfrom its dual focus on poverty reduction: committed growth-oriented poverty
\nreduction policies by the government with programmes that address mechanisms to
\nensure income redistribution and pro-poor inclusive economic growth (e.g.
\nthrough geographical targeting). China\u2019s transformation from planned to
\nsocialist free market economy, and probably to free market when it enters its
\nnext cycle of reform, has provided economic leverage for the country\u2019s
\ndevelopment taking advantages of increased productivity, trade liberalisation,
\njob creation, foreign direct investment and private sector development (see,
\nfor example, Perkins 1988; Harrold 1992; Qian & Wu 2000; Lin 1994; Wang
\n& Yao 2003). The speed of China\u2019s reforms has been gradual and
\nexperimental, learning through trial and error before initiatives were
\nscaled-up (Woo 1999). China\u2019s reform started with agricultural development
\nthrough improved essential hard and soft infrastructure for rural enterprises
\nand shifted to labour-intensive light manufacturing and services. Exports and
\ntrade liberalisation have also been the main focus in China\u2019s development
\nagenda (IPRCC 2010). On the economic front, Cambodia can draw lessons in the areas of
\ntrade liberalisation; industrialisation focused on diversification, business
\ncompetitiveness and urban-rural linkages; agriculture and rural development;
\nand the role of the state in directing and coordinating the development agenda.
\nIn terms of sectoral composition of economic growth and poverty reduction and
\namong the four pillars of the economy, garments, tourism, construction and
\nagriculture, agricultural development remains crucial to poverty alleviation
\nefforts as about 80 percent of the population lives in rural areas and relies
\nmainly on agriculture-related occupations. Despite low value-added to GDP,
\nagriculture continues to play a significant role in the overall economy in
\nterms of job creation and income source for the majority of rural households.
\nEnhancement of agricultural and food exports can be beneficial to overall
\nmacro-economic growth and help reduce income inequality (Kobayashi et al. 2008;
\nRavallion & Chen 2007; Ravallion 2009; Dethier & Effenberger 2011).
\nHowever, this sector has faced serious constraints and problems: low
\nproductivity, insufficient irrigation system, poor rural infrastructure, lack
\nof research and development, difficult access to finance and limited access to
\nmarket information, especially by smallholder farmers. Thus, in the short and
\nmedium terms, removing these constraints for a more sustainable, productive,
\nand pro-poor growth oriented rural development should be the number one
\npriority for the Cambodian government, for it will not only help Cambodia diversify
\nits economy but also contribute to reduced poverty and narrowed inequality. On the poverty reduction front, the Chinese government has led its
\npoverty reduction campaign by channelling funds through government-led
\ninstitutions at all levels \u2013 provincial, district, and county \u2013 to help
\nhouseholds that are economically poor through developmentoriented programmes
\nsuch as cash-for-work, micro-credit, training, and science and technology demonstration,
\nand the extremely poor through direct relief and cash (see, for example, Wu
\n& Cheng 2010). Specific poverty reduction schemes have been piloted in
\ntargeted communities to ensure that resources are spent wisely and have the
\nmost bearing on poor households. Cambodia can learn two lessons in particular from the Chinese
\nexperience on poverty reduction: \u00b7
\nCambodia should strengthen its poverty reduction agency \u2013
\ncurrently the Council for Agriculture and Rural Development (CARD) is the
\ninter-ministry coordinator on poverty reduction programmes \u2013 and allocate more
\nresources for rural development where the majority of poor households are. CARD
\ncould be made a more specialised national poverty reduction agency and
\nprofessional capacity development of key staff should be invested in rather
\nthan largely relying on external consultants;\u00b7
\nMore resources should be allocated to building rural physical
\ninfrastructure (roads, bridges, land improvement and irrigation) to allow poor
\nhouseholds greater and easier access to markets for their income-generating
\nactivities. Cash-for-work, where a certain amount of cash is given to poor
\nhouseholds in exchange for their labour in infrastructure building, could be
\nfurther explored. Soft assistance such as training and demonstration on science
\nand technology and production should also be complemented. Implementation of the
\nproposed programmes would not be without difficulties and constraints given the
\neconomic endowments and development context of both countries. China has
\ntransformed itself from one of the world\u2019s poorest countries to the world\u2019s
\nsecond largest economy. This indicates China\u2019s greater ability to allocate
\nfunds for different development initiatives. With a strong and committed
\nadministrative system, China is also able to quickly mobilise poverty reduction
\nfunds and relief to address the needs of the poor and vulnerable and help them
\nescape the poverty trap (Wu & Cheng 2010). By contrast, even with rapid economic growth over the last decade,
\ngrowth in Cambodia has been uneven: poverty rate decreased yet remained high,
\nand inequality increased. This is largely because of lack of resources due
\npartly to corruption and insufficient revenue collection mechanism, weak
\ninstitutional arrangements and governance, limited capacity of the key poverty
\nreduction agency, heavy political interference in economic matters and aid
\ndependence in which certain donors\u2019 agenda and conditions need to be fulfilled
\n(see, for example, Guimbert 2010). The border conflict with Thailand has
\nfurther undermined resource allocation for economic and social reconstruction
\nefforts as a substantial amount of money is expected to fund the defence
\nbudget. If prolonged, the conflict could also jeopardise the livelihoods of thousands
\nof relocated households who live in or near the conflict zones. <\/p>\n
Moving forward, Cambodia\u2019s economic prospects in the short and
\nmedium term remain healthy with a projected growth of about 6.7 percent per
\nannum (ADB 2011; IMF 2011). This will translate into, at least by the
\ntrickle-down effect, higher income for average Cambodians and gradual
\nascendance up the development ladder for Cambodia, soon to join the medium
\nincome countries (MICs). Nonetheless, achieving MIC status while leaving
\nhundreds of thousands of people in poverty and widened inequality would likely
\nbe a hollow victory as these economic and social disparities make shaky
\nfoundations for long-term and sustainable growth. Thus, there is a need for the
\ngovernment together with development partners to ensure that poverty reduction
\nprogrammes are continuously integrated into the broad-based development agenda so
\nas to make the growth process inclusive. <\/p>\n","protected":false},"excerpt":{"rendered":"
Although country contextual differences and pre-conditions must be carefully considered when attempting to replicate economic growth and poverty reduction models, Cambodia could consider experiences of some Asian countries like China, India, South Korea, Thailand and Vietnam to further improve its poverty reduction strategies and implementation. Cambodia could also utilise foreign assistance and international cooperation by redirecting resources to support activities which have the highest possible effects on poverty alleviation.In the case of China\u2019s development experience, Cambodia can learn from its […]<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5],"tags":[],"class_list":["post-33097","publications","type-publications","status-publish","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n