Sustaining Rapid Growth in a Challenging Environment
According to World Bank
3rd Cambodia Economic Forum the World Bank
launched a new study “Sustaining Rapid Growth in a Challenging Environment“.
Cambodia has not only generated high economic growth, it has managed to sustain rapid growth for an extended period. It has more than doubled its income per capita over the past decade, bringing about a profound structural transformation: integration into the global economy; a shift of jobs from agriculture to manufacturing; a demographic transition; and migration from rural to urban areas. Translating into jobs and better services, these outcomes have led to a significant reduction in poverty, as well as improvements in health and education.
However, the achievements of the past decade remains fragile. The base for this economic growth appears narrow and the winds that once served Cambodia well—global trade and investment flows—have lost their strength, at least temporarily.
What will it take for Cambodia to continue on this trajectory, to become a middle income country in a decade or so, and lift more of its people out of poverty?
The analysis has three main messages:
* The economic growth of the past decade is a remarkable achievement, but it is unlikely to be sustainable in its current form. That said, the experience has established that growth in some sectors can be stimulated by good policies and governance arrangements.
* Cambodia has a potential to sustain growth if it increases competitiveness and diversifies. This requires a focused growth strategy.
* Cambodia has three important opportunities:
1-harnessing regional integration;
2-managing natural resources in a sustainable way; and
3-investing in its future (through agriculture, infrastructure, education, and higher savings).
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Comments
It is because of the global financial crisis, Cambodia’s garment industries are really affected strongly by the world economic slowdown because the increase in the purchasing power from Unite State and Europe. In addition, there are many competitors that export clothing into USA and Europe as well such as China and Vietnam.
some of Cambodian factory are suspend, impacting from global financial crisis…..