World Bank2012-03-192012-03-192009-01-01https://hdl.handle.net/10986/3142Many countries succeed in generating high economic growth at some point in their history. But only a very few manage to sustain rapid growth for an extended period. Only such a prolonged period of rapid growth can have a significant impact on income per capita, and such an impact often brings with it many other important changes to people's lives. Cambodia has more than doubled its income per capita over the past decade, from US$285 in 1997 to US$593 in 2007. This doubling has been accompanied by the trappings of 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. This report aims to contribute to policymakers' and citizens' thinking about growth in Cambodia in three ways: (i) it reviews the experience of the past decade and draws the Cambodia-specific lessons of this period; (ii) it sketches the major potential sources of growth with the aim of assessing the barriers to growth; and (iii) it outlines policy options for addressing these barriers.CC BY 3.0 IGOADVANCED COUNTRIESADVERSE IMPACTAGRICULTUREARABLE LANDASSETSBALANCE OF PAYMENTSBANK DEPOSITSBANK ENTRYBANK LENDINGBANK LOANBANKING SUPERVISIONBANKING SYSTEMBARRIERS TO GROWTHBROAD MONEYBUSINESS ENVIRONMENTCAPITAL ACCOUNTSCAPITAL ACCUMULATIONCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL FORMATIONCAPITAL GAINCAPITAL INFLOWSCLIMATE CHANGECOLLATERALCOLLATERAL REQUIREMENTSCOLLECTIVE ACTIONCOMMERCIAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMODITIESCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVENESSCONSUMER PRICE INDEXCONSUMERSCOST OF CAPITALCOST-BENEFIT ANALYSESCREATION OF JOBSCREDIT BUREAUCREDIT FACILITYCREDIT INFORMATION SYSTEMDEBTDECISION TREEDEFLATORSDEMOGRAPHICDEMOGRAPHIC TRANSITIONDEMOGRAPHICSDEPOSITDEPOSIT RATESDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPMENT STRATEGYDISTORTED INCENTIVESDIVIDENDDIVIDENDSDOMESTIC ECONOMYDOMESTIC MARKETDURABLEDURABLE EQUIPMENTECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC SITUATIONENVIRONMENTALENVIRONMENTAL CONCERNSENVIRONMENTAL STANDARDSEQUITY FUNDSEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT SECTOREXPORTSFINANCIAL CRISISFINANCIAL PRODUCTSFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SUPPORTFINANCIAL SYSTEMFISCAL DEFICITFISCAL POLICYFISHFISHERIESFIXED CAPITALFIXED INVESTMENTFOOD POLICY RESEARCHFOOD PRICESFOREIGN ASSETSFOREIGN BANKSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN INVESTORFORESTRYGDPGDP PER CAPITAGLOBAL ECONOMYGLOBAL FINANCIAL MARKETSGLOBAL TRADEGOOD GOVERNANCEGOVERNANCE MECHANISMSGOVERNMENT INTERVENTIONSGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH POTENTIALGROWTH RATEHUMAN CAPITALINCOMEINFLATIONINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTINSTRUMENTINSURANCEINTEREST INCOMEINTEREST RATESINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL INVESTORINTERNATIONAL LABOUR ORGANIZATIONINTERNATIONAL RESERVESINTERNATIONAL TRADEINVENTORIESINVESTINGINVESTMENT CLIMATEINVESTMENT FLOWSJOB CREATIONLABOR MARKETLABOR PRODUCTIVITYLABOR STANDARDSLEGAL FRAMEWORKLIBERALIZATIONLIVING STANDARDSLOCAL CURRENCYLOGGINGMACROECONOMIC CONDITIONSMACROECONOMIC ENVIRONMENTMACROECONOMIC MANAGEMENTMACROECONOMIC PERFORMANCEMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC UNCERTAINTYMICRO-FINANCEMIDDLE INCOME COUNTRYMISMANAGEMENTMONETARY POLICYNATIONAL BANKNATURAL RESOURCESNET EXPORTSNEW MARKETSNEW PRODUCTSNON-PERFORMING LOANSOILOPEN ECONOMYOVERVALUATIONPAYMENTS SYSTEMPER CAPITA INCOMEPER CAPITA INCOMESPOLICY ENVIRONMENTPOLICY INSTRUMENTSPOLICY MAKERSPOLITICAL PLATFORMPOLITICAL STABILITYPOLLUTIONPOTENTIAL INVESTMENTSPRICE DISTORTIONPRIVATE EQUITYPRIVATE INVESTMENTPRIVATE SECTOR DEVELOPMENTPRODUCERSPRODUCTION COSTSPRODUCTIVITY GROWTHPUBLIC GOODSPUBLIC-PRIVATE PARTNERSHIPQUOTASRAPID DEVELOPMENTRAPID GROWTHRATE OF GROWTHRATE OF INVESTMENTRATES OF RETURNSREAL ESTATEREAL INTERESTREAL INTEREST RATESRED TAPEREGIONAL INTEGRATIONREGIONAL TRADEREGRESSION ANALYSISREGULATORY FRAMEWORKREPUTATIONRESERVE REQUIREMENTSRETURNRURAL INFRASTRUCTURESAFETY NETSSAVINGSSHARE OF ASSETSSMALL ECONOMIESSOCIAL PROTECTIONSOCIAL SAFETY NETSSTOCK MARKETSTOCK MARKETSSTREAMSSUSTAINABLE DEVELOPMENTSUSTAINABLE MANAGEMENTTAXTAX INCENTIVESTAXATIONTECHNOLOGY TRANSFERTERMS OF TRADETRACK RECORDTRANSPARENCYTRANSPARENCY INITIATIVEUNDERVALUATIONURBAN DEVELOPMENTURBANIZATIONWAGESWEALTHWORKING CAPITALWORLD ECONOMYWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/3142