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Cambodia

How do we achieve sustained growth? Through human capital, and East Asia and the Pacific proves it

Michael Crawford's picture
Students at Beijing Bayi High School in China. Photo: World Bank


In 1950, the average working-age person in the world had  almost three years of education, but in East Asia and Pacific (EAP), the  average person had less than half that amount. Around this time, countries in  the EAP  region put themselves on a path that focused on growth  driven by human capital. They made significant and steady investments in  schooling to close the educational attainment gap with the rest of the world. While  improving their school systems, they also put their human capital to work in  labor markets. As a result, economic growth has been stellar: for four decades  EAP has grown at roughly twice the pace of the global average. What is more, no  slowdown is in sight for rising prosperity.

High economic growth and strong human capital accumulation  are deeply intertwined. In a recent paper, Daron Acemoglu and David Autor explore  the way skills and labor markets interact: Human capital is the central  determinant of economic growth and is the main—and very likely the only—means  to achieve shared growth when technology is changing quickly and raising the  demand for skills. Skills promote productivity and growth, but if there are not  enough skilled workers, growth soon chokes off. If, by contrast, skills are abundant and  average skill-levels keep rising, technological change can drive productivity  and growth without stoking inequality.

The Future is Here: Technology trends currently shaping the world of Logistics

Karuna Ramakrishnan's picture
Also available in: Spanish

Emerging technologies are transforming global logistics. The evidence is everywhere: Logistics companies are exploring autonomous fleets and “lights-out” warehousing, and are looking to Big Data for transport management and predictive analytics. Crowdsourcing start-ups are using a high-tech/asset-light business model. And e-brokerage platforms are providing real-time information from pickup to delivery.
 

Trade has been a global force for less poverty and higher incomes

Ana Revenga's picture

In the ongoing debate about the benefits of trade, we must not lose sight of a vital fact. Trade and global integration have raised incomes across the world, while dramatically cutting poverty and global inequality. 

Within some countries, trade has contributed to rising inequality, but that unfortunate result ultimately reflects the need for stronger safety nets and better social and labor programs, not trade protection.

2016: A unique opportunity to get it right on forests and climate change

Ellysar Baroudy's picture
Moniz Phu Khao Khouay, Vientiane Province
Forest monitoring efforts in Phu Khao Khouay, Vientiane Province, Laos PDR. Photo credit: Hannah McDonald

If ever there was a year to make significant progress on forest conservation and climate change, it was 2016. Coming on the heels of the historic COP21 Paris Agreement, 2016 was a year to demonstrate the commitment the World Bank Group has to support countries as they take forward their nationally determined contributions to address our global climate change challenge. It’s gratifying to look back on 2016 and feel that we contributed to harnessing this momentum and sense of urgency; especially in showing how sustainable land use, including sustainable forest management, is critical to achieving the ambitious targets set out in the Paris Agreement.

Universal Health Coverage day: Celebrating 15 years of health partnerships and innovations in Cambodia

Somil Nagpal's picture



For many of us who work in the health sector in Cambodia, the Universal Health Coverage Day in 2016 celebrates the beginning of a new journey. The recent launch of the Health Equity and Quality Improvement Project marked the beginning of a new phase in our journey to make Cambodia healthier and happier.

Poverty is no barrier to one girl’s dream of becoming a doctor

Saroeun Bou's picture
Liza (center) with her classmate

Recently I met an inspiring student: 12-year-old Song Liza, who told me about her goal of becoming a doctor.

Her reasoning is simple: one, because the shortage of doctors in Cambodia means she would be able to get a good job; and two, because she wants to help people in her poor, remote community in this part of northeastern Cambodia.

Medical school is a long way off for Liza, but despite facing more challenges than many her age, she has laid out a series of goals that she knows she must achieve before she can put on that white coat.
 

The logical next step toward gender equality: Generating evidence on what works

Sudhir Shetty's picture
© World Bank
College students in Vietnam. © World Bank


As in much of the rest of the developing world, developing countries in East Asia and the Pacific (EAP) have made progress in closing many gender disparities, particularly in areas such as education and health outcomes. Even on the gender gaps that still remain significant, more is now known about why these have remained “sticky” despite rapid economic progress. 

Ensuring that women and girls are on a level playing field with men and boys is both the right thing to do and the smart thing to do. It is right because gender equality is a core objective of development. And it is smart because gender equality can spur development. It has been estimated, for instance, that labor productivity in developing East Asia and Pacific could be 7-18% higher if women had equal access to productive resources and worked in the same sectors and types of jobs as men.

How can cities reduce water-energy nexus pressures?

Robert C. Brears's picture
Credit: Water & Sanitation Program 

Cities over the past century have become the driving force of the global economy. Accounting for over half the world’s population and generating around 80% of global GDP, cities provide numerous opportunities for development and growth. Cities however bring about risks and challenges to people and the environment. By 2050, demand for water is projected to increase by 55% mainly due to increased demand from urban populations. At the same time demand for energy in providing water and wastewater treatment services will increase.

How do you make aid programmes truly adaptive? New lessons from Bangladesh and Cambodia

Duncan Green's picture
Lisa DenneyDaniel HarrisLeni Wild

Following on from yesterday’s post on adaptive aid, a guest piece from Lisa Denney (far left), Daniel Harris (middle) and Leni Wild (near left), all of ODI.

A swelling chorus of the development community has been advocating for more flexible and adaptive programming that can respond to the twists and turns of political reform processes. They argue that in order to achieve better aid outcomes, we need to do development differently. As part of this agenda, ODI and The Asia Foundation, with the assistance of the Australian Department of Foreign Affairs and Trade, tracked and analysed three programmes in Bangladesh, Cambodia, and Mongolia. These programmes explicitly sought to work politically in practice, using a relatively small amount of money, a relatively short timeframe, and a focus on tangible changes. We followed attempts to achieve environmental compliance and increase exports in the leather sector in Bangladesh, and to improve solid waste management in Cambodia and Mongolia; issues identified for their potential to make important contributions (economic, health, environmental, etc.) to the wellbeing of citizens. Two of our case studies were released this month, telling the story of how the reforms unfolded and shifted strategy to better leverage the incentives of influential stakeholders, as well as the mechanics of how the Foundation supported adaptive ways of working.
 

How adaptation worked in practice

In each case, the programme teams (led by staff in the Foundation’s local office, and supported by a variety of contracted partners and a wider uncontracted reform network reaching both inside and outside of government) made significant changes to strategy during the implementation phase that helped to address difficult, multidimensional problems. In Cambodia, the team faced a complex and often opaque challenge in which waste collection is characterized by a single company with a long-term confidential contract that is difficult to monitor, a fee structure that does not encourage improved household waste collection, garbage collectors whose conditions do not incentivize performance, and communities that are difficult to access and do not always understand the importance of sanitary waste disposal. With a small Foundation team and limited funding, the approach relied on working with individuals selected as much for personal connections, disposition, and political know-how in working politically and flexibly, as for technical knowledge. The team began by cultivating relations between City Hall and the single contractor providing solid waste management services, then moved to work with the sole provider to improve their delivery, and finally, resolved to end the single contractor model in favour of competition.

Cambodia is now a lower-middle income economy: What does this mean?

Sodeth Ly's picture
Two decades of economic growth have helped make Cambodia a global leader in reducing poverty.
The success story means the Southeast Asian nation that overcame a vicious civil war now is classified as a lower-middle income economy by the World Bank Group (WBG).
 
The new classification this year is based on thresholds set by the WBG in a system with roots in a 1989 paper that outlined the methodology. The table below shows the different levels of classification based on Gross National Income (GNI): 
 
Threshold GNI in July 2016
Low-income <$1,025
Lower-middle income $1,026 - $4,035
Upper-middle income $4,036 - $12,475
High-income > $12,476
 

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