Cambodia - Sharing growth : Equity and Development in Cambodia, Equity Report 2007

Abstract

Cambodia's changing distribution of income-related outcomes is consistent with the process of transition from a planned to an open market economy, and the accompanying growth of incomes. This transformation has promoted better resource reallocation, expanded the spectrum of gainful activities, and widened the distribution of earnings. Aided by robust economic growth and improved capacity for implementing public policies, Cambodia has seen most other welfare outcomes (notably health and education indicators) become more equal over time. While a radical shift of development strategy is not necessary, improvements in public spending and selected interventions can further promote equality of opportunity, and public policies can promote an expansion of private investment opportunities. The findings of the report point to the following sets of government actions: (i) continuing economic reform to promote investments and sustain growth; (ii) protecting land tenure through systemic titling, and addressing landlessness related poverty through various measures (e.g., social land concessions; non-farm employment); (iii) building upon progress to date with further improvements in the quantity, quality and affordability of schooling and healthcare; and underpinning service delivery reforms with stronger and more responsive state institutions through continued reforms of public financial management and merit-based civil service pay.