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Since joining the ADB in 1966, Cambodia has received $2.65 billion in loans, grants,
and technical assistance for the development of social and physical infrastructure, public
sector management, private and finance sector development, and natural resource
management and conservation (ADB, 2015). Regarding rural development, ADB has helped
build and reconstruct rural infrastructure, aiming at boosting transport connectivity and rural
access. For example, the Phnom Penh to Ho Chi Minh City Highway and the Primary Roads
Restoration projects, which was completed in December 2005, rehabilitated about 665 km of
primary road network and bridges, paving the way for further economic integration by easing
the movement of trade and people within the country, as well as between Vietnam,
Cambodia, and Thailand (ADB, 2007). In addition to the reconstruction of rural infrastructure,
the ADB approved projects between 2010 and 2014, intending to supply 96,000 rural
households with access to improved water supply, sanitation, and electricity (ADB, 2015).
Through these projects, the ADB has assisted Cambodia in enhancing rural development,
which is a cornerstone of development of the economy.
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Although Cambodia has seen a lot of progress in economic development, there are
development challenges that Cambodia is still facing today. One of the major pressing
development issues in Cambodia is the agricultural sector. Although Cambodias economy is
based primarily on agriculture, the growth in agriculture rose just slightly 0.2% as a result of
drought (ADB, 2016). In addition, agriculture in Cambodia is still largely contingent on
traditional methods, especially for rice farming. Particularly, the majority of Cambodian
farmers rely on rainfall and they can only grow just one crop a year. Indeed, most farming is
very vulnerable to climate change that has adversely affected crop production (Ros, Nang, &
Chhim, 2011). With the lack of modern technology in agriculture, the lack of farmers
knowledge, the limited access to credit, and the shortage of irrigation systems in some rural
areas, farmers are unable to maximize their agricultural output, which leads Cambodia to
face a lower agricultural productivity, compared to neighboring countries. These contemporary
issues will remain a key challenge for Cambodia to maintain its competitiveness in a global
market.
A low level of the education system is still a critical issue, impeding the pace of
economic development in Cambodia. Despite the radical reform of Cambodians education
system for the past 2 years, there are only 30% of young people who can finish high school
owing to lack of funds and expectation of low economic return in education (ADB, 2016). In
higher education level, Cambodia is facing a huge challenge with respect to the quality and
skills of students. This contributes to a mismatch between the supply of labor skills and the
demand of employers in the labor market. In addition, the majority of Cambodian students
tend to overlook the study of STEM education, which is deemed very important for the future
development of Cambodian human resources.
Another pressing development issue facing Cambodia today is the lack of information
on economic integration that hinders the growth of Cambodians private enterprises. With the
arrival of AEC, there is a growing competition among ASEAN members regarding SME
sector. Nowadays, there is still a barrier for Cambodian enterprise, especially small and
medium enterprises (SMEs) to have perfect information about entering export markets. This
make many Cambodian enterprises oblivious of their products quality, price, packaging, and
design (as cited in Chaisrisawatsuk, 2008, pp.351-394). This constraint stems from the
limited support from the Cambodian government regarding market access and commodity
prices in foreign markets. Consequently, many SMEs will not be able to compete in the
international market, which is deemed to be a great loss for both SMEs and government to
seize the opportunity of export markets.
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sector. With sufficient funds and technical assistance supported by ADB, it is widely believed
that Cambodia will be able to enhance agricultural productivity and diversity of crop
production that are the key contributors to rural poverty alleviation.
Cambodias high economic growth over the last decade has proved that Cambodia is on the
right track. With ADBs assistance since 1966, Cambodia has made significant progress in
its overall socio-economic development. In spite of these achievements, Cambodia still faces
some pressing development issues which need to be solved. Improving the agricultural
sector, investing in education, and enhancing the private sector are very important for
Cambodia to promote inclusive economic growth and reduce poverty in the long run. To
reach these goals, more cooperation between the ADB and the Government of Cambodia
has to occur to strengthen Cambodias development and help Cambodia translate economic
growth into poverty reduction in the future.
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References
Asian Development Bank. 2015. Asian Development Bank Fact Sheet. Manila: ADB.
Asian Development Bank. 2016. Asian Development Outlook 2016 Asia Potential
Growth. Manila: ADB
Ministry of Education, Youth, and Sport: Enhancing Education Quality Project. (n.d.).
Retrieved August 16, 2016, from http: //www.moeys.gov.kh/en/eeqp.html
Ros, B., & Nang, P., & Chhim, C. (December, 2011). Agricultural Development and
Climate Change: The Case of Cambodia.
Retrieved August 20, 2016, from
http://khmerstudies.org/wp-content/uploads/2013/06/12.-Climate-Change-CDRI.pdf
Woods, B. (2014, September 29). ADB loans govt $30 to train women for jobs. The
Cambodia Daily.
Retrieved August 20, 2016, from
https://www.cambodiadaily.com/archives/adb-loans-govt-30m-to-train-women-for-jobs-68571/
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