Cambodia — a least developed country with a per capita GDP of 2083.59 USD — has huge development potentials. The country has recently shown rapid economic growth and progress in various areas, including poverty reduction. Consequently, the quality of life has improved in Cambodia. Cambodia has also potentials for human capital development, economic diversification and private sector growth. Its youthful population and strategic location will be helpful and promote its development on various grounds with further improvement in quality of life. Amongst the others, tourism in Cambodia, which is still one of the world’s poorest countries, is expanding and it has the potential to tap into offshore oil and gas reserves and draw in overseas investment to replace aid.
But there are various challenges to development in Cambodia, which became independent in 1953 and is graduating from its status as a least developed country. There is a narrow economic base, weak business environment, low human development, infrastructure gaps and poverty (17.8 percent of the population lived below the national poverty line) and inequalities. Though poverty has decreased recently, a large portion of the population still live on very little income and inequality persists across different segments of society, particularly between urban and rural areas, leading to concerns. The Southeast Asian country also struggles with other issues like corruption, weak rule of law and the violations of human rights including restrictions on freedoms, hindering its development. But unplanned urbanization and a history of conflict further exacerbated these problems. Amongst the others, there are landmine issues and vulnerability to climate change.
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Hopefully saying, policy based and other steps of the government have helped address various development challenges. The government of Cambodia has taken various plans and policies including the Pentagon Strategy — the strategy which outlines five key objectives for development such as human capital development, economic diversification and competitiveness, private sector and employment development, resilient, sustainable and inclusive development and digital economy and society development — and the Development Cooperation and Partnerships Strategy (2024-2028) aiming to move Cambodia towards becoming an upper-middle-income economy and addressing various development challenges that have been contributing to its development. Among others, Cambodia also encourages entrepreneurship through funding programs, incubation spaces and tax advantages that help reduce its poverty.
But there are various flaws in the efforts, leading to the limited outcomes of the development initiatives in the Kingdom of Cambodia, which has endured civil war and the murderous rule of the Khmer Rouge in the 1970s. Development plans and policies are not implemented as desired. Moreover, there is a lack of robust anti-corruption measures, insufficient coordination between development partners and non-state actors, restrictive compliance requirements for civil society organizations and inadequate emphasis on the country’s urbanization process which is often unplanned and unregulated. Amongst the others, government efforts are also less in Cambodia to address the violation of human rights and environmental degradation like deforestation.
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It is desired that steps be taken to address the challenges to development in Cambodia so that they can foster human development. A multi-faceted approach focusing on improving infrastructure, enhancing economic competitiveness and investing in human capital is vital for the development of Cambodia. The emphasis on creating a supportive business environment, including access to finance, is vital and can boost private sector growth and job creation. Providing increased opportunities for entrepreneurship is also crucial. International collaboration will also help address many such challenges in Cambodia. But steps are vital to promote good governance and reduce corruption — along with addressing social inequalities.
But steps are also vital for the government to address other concerns and promote development in Cambodia, a constitutional monarchy and multiparty state. Promoting freedom of association and addressing arbitrary arrests and detention are vital and will help improve Cambodia’s civil rights. For this, the role of different organizations will also be helpful. But amongst the others, promoting the freedom of expression and media freedom also needs to be ensured by the government in Cambodia.
