Guimbert, Stephane2012-03-192012-03-192010-04-01https://hdl.handle.net/10986/3758Cambodia's growth over 1998-2008 has been remarkable (almost 10 percent per annum for a decade). This paper applies a "growth diagnostic" approach to understand how this happened and how it can be sustained. Past growth has been driven by the coincidence of a set of historical and geographic factors (including opportunistic policy responses), together with the use of natural assets (although in a non sustainable way) and the elaboration of productive sector-specific governance arrangements. Several of these factors are unfortunately not self-sustaining and the global economic crisis of 2008-09 is exposing these vulnerabilities. A growth diagnostic flags a number of short-term priorities to ensure the competitiveness of existing industries, as well as more medium-term priorities for the country to continue attracting foreign investment and start mobilizing more domestic savings. A key economic policy objective is the diversification of the economy, which requires a reduction in unproductive risks and costs as well as creative solutions to coordination failures.CC BY 3.0 IGOACCOUNTINGACCOUNTING FRAMEWORKAGRICULTUREAMOUNT OF CAPITALARABLE LANDASSET PRICESASSETSBANKING SECTORBARRIERBARRIER TO ENTRYBENCHMARKINGBINDING CONSTRAINTBINDING CONSTRAINTSBROAD MONEYBUSINESS ENVIRONMENTCAPACITY CONSTRAINTSCAPITAL ACCUMULATIONCAPITAL GAINSCAPITAL INFLOWSCAPITAL INVESTMENTSCENTRALIZATIONCHILD LABORCOLLATERALCOLLECTIVE ACTIONCOLLECTIVE ACTION PROBLEMSCOMMERCIAL FISHINGCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVENESSCOMPLIANCE COSTSCOORDINATION FAILURESCORRUPTIONCOST OF FINANCECOST STRUCTURECREDIBILITYCREDIT RATIONINGCREDIT RISKSCREDIT SYSTEMCURRENCYCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDECISION TREEDEMAND CURVEDEMOGRAPHICDEMOGRAPHIC GROWTHDEMOGRAPHIC TRANSITIONDEPOSITSDEVELOPED COUNTRIESDISPUTE RESOLUTIONDIVERSIFICATIONDIVIDENDDURABLEDURABLE EQUIPMENTECONOMIC ACTIVITYECONOMIC ANALYSISECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC GEOGRAPHYECONOMIC HISTORYECONOMIC SITUATIONECONOMIC STRUCTUREENABLING ENVIRONMENTENFORCEMENT OF CONTRACTSEQUIPMENTEXCHANGE RATEEXPENDITURESEXPLOITATIONEXPORT SECTOREXPORTEREXPORTERSEXPORTSEXTERNAL FINANCEEXTERNALITIESFERTILITY RATESFINANCE CORPORATIONFINANCIAL ASSETSFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL SECTORFINANCIAL SECTOR POLICIESFINANCIAL SYSTEMFISCAL POLICYFISHFISHERIESFISHERY MANAGEMENTFOOD POLICY RESEARCHFOOD PRICEFOOD PRICESFOREIGN ASSETSFOREIGN BANKSFOREIGN CAPITALFOREIGN INVESTMENTFOREIGN INVESTORSFORESTRYFORMAL BANKINGFUTURE CASH FLOWSFUTURE GROWTHGDPGDP PER CAPITAGLOBAL MARKETSGOVERNANCE INDICATORSGOVERNANCE ISSUESGOVERNMENT REGULATIONGROWTH POTENTIALGROWTH RATEHUMAN CAPITALINCOMEINFLATIONINFLOWS OF CAPITALINSURANCEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL FLOWSINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL MARKETSINTERNATIONAL TRADEINVENTORIESINVENTORYINVESTINGINVESTMENT CLIMATEINVESTMENT FUNDSINVESTMENT POLICIESINVESTMENT PROJECTSINVESTMENT RATESINVESTMENT REGIMEJOINT VENTURELABOR COSTSLABOR FORCELABOR MARKETLABOR PRODUCTIVITYLABOR STANDARDLABOR STANDARDSLACK OF COMPETITIONLACK OF CREDITLAND TITLESLAND TITLINGLEGAL ENVIRONMENTLEGAL REFORMSLIBERALIZATIONLIQUIDITYLOANLOAN PORTFOLIOLOAN REPAYMENTLOCAL CURRENCYLOGGINGLOW-INCOME COUNTRYMACROECONOMIC CONDITIONSMACROECONOMIC ENVIRONMENTMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC UNCERTAINTYMARKET CONDITIONSMARKET FAILUREMARKET FAILURESMONOPOLYNATIONAL BANKNATURAL RESOURCESNET EXPORTSOPEN ECONOMYOPPORTUNITY COSTOUTPUTOVERVALUATIONPOLICY DECISIONSPOLICY INSTRUMENTSPOLICY RESPONSESPOLITICAL ECONOMYPOLITICAL STABILITYPOLITICAL SYSTEMPORTFOLIOPOWER OUTAGESPRICE INCREASESPRIVATE INVESTMENTPRODUCERSPRODUCTION COSTSPROFIT MARGINSPROPERTY RIGHTSPUBLIC GOODSPUBLIC INVESTMENTPUBLIC SAVINGSQUOTASRAPID GROWTHRATE OF GROWTHRATES OF RETURNSREAL ESTATEREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESRED TAPEREFORM PROGRAMREGIONAL TRADEREGISTRATION PROCESSESREGRESSION ANALYSISREGULATORY POLICYREGULATORY REQUIREMENTSRETAINED EARNINGSRETURNRETURNSRULE OF LAWRURAL INFRASTRUCTURESALES AGREEMENTSAVINGSSOCIAL CAPITALSTOCKSSUPPLY OF CREDITTAXTAX EXEMPTIONSTAX RATESTAXATIONTELECOMMUNICATIONSTRACK RECORDTRADE REGIMETRANSPARENCYTURNOVERUNDERVALUATIONVALUE ADDEDWAGESWAREHOUSEWAREHOUSE RECEIPTSWORKING CAPITALWTOWorld Bank10.1596/1813-9450-5271