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Overview Approximately 80 percent of Cambodia’s population lives in rural areas and 71 percent depend primarily on agriculture (largely rice) and livestock for their livelihoods.  Poverty in Cambodia is overwhelmingly rural, with poverty headcounts ranging from a low of 10-15 percent in Phnom Penh to 40-45 percent in the rural areas, reaching 70-80 percent in some areas around the Tonle Basin.The poorest are particularly dependent on access to common property resources - fisheries and forestry - for example, eating and selling fish, eating mushrooms, and selling logs.Â
Agricultural growth had shown steady improvement (although highly variable) averaging 2 percent annually over the decade prior to 2005, when the sector had unusually high growth of 16 percent. With workers in the sector also growing, sector value added on a per worker level was lower, achieving 19 percent growth over this same period. However, agricultural production and general rural economic growth remain far below their potential because of low productivity, high vulnerability to weather, constrained access to land, forests, fisheries and markets, and lack of adequate infrastructure (such as roads, water supply, electricity and communications networks). Given the large rural population and high potential for improvement, the government has highlighted promotion of agricultural development as the primary strategy for achieving higher growth and poverty reduction. Back to top Progress Cambodia has, from a regional perspective, a very good natural resource endowment and is well positioned to participate in regional growth, with rapidly growing neighbors, and wider trade relations facilitated by Cambodia recently becoming a member of the World Trade Organization.  There is a growing trend towards diversification of crops, to reduce the dependence on rice, as demonstrated by several commercial agreements with neighboring countries. There have also been impressive achievements in rural development over the past 25 years, in building up technical skills and re-establishing road, water, electricity and communications networks.
Back to top Key Issues Although there have been impressive achievements, many challenges remain to be addressed such as (1)declining access to land, forests and fisheries due to appropriation by other interests (landlessness is estimated to be close to 20 percent in rural areas); (2) a technology gap in relation to neighboring countries in most aspects of production, transport, storage, processing and marketing of products, which in view of relatively open borders and easy trade, affects competitiveness; and (3) limited, long-term agribusiness investment due to a week investment climate. There is a need for better business and taxation regulation to facilitate trade and improvements in the legal system governing contractual and property rights; (4) weakness of public services focused on agriculture such as research, extension, market information and phytosanitary services; and (5) limited development of production and marketing organizations. Back to top World Bank Program  As a response to some of these challenges, in alignment with the Cambodian government's development plan, and after consultation with other donors to ensure the greatest impact, the World Bank has developed a strategic plan with the following objectives:
Improving the climate for private sector investment – particularly trade facilitation. Strengthening public service delivery – particularly through public financial management and seeking opportunities to support public administration reform. Increasing the access of local communities to natural resources and their participation in management – particularly for land and forest resources. Supporting greater social accountability – particularly through support to strengthened local government and civil society activity
The Bank is providing funding for projects which are aligned with these objectives as follows: Land Allocation for Social and Economic Development (US$13 million) aims to improve the process for identification and use of state lands transferred to eligible, poor and formerly landless or land-poor recipients selected through a transparent and well-targeted process. Avian and Human Influenza Control and Preparedness Emergency Project (US$11 million) will support the implementation of the Cambodia Comprehensive AHI National Plan, which is designed to minimize the threat posed to humans and the poultry sector by AHI infection in Cambodiam and prepare for, control, and respond if necessary to a human influenza pandemic. Land Management and Administration Project (US$24.3 million) which works with Germany, Finland and Canada to support land titling, dispute resolution and policy development for land administration and management. Rural Investment and Local Governance Project (US$58.24 million) which supports local government (communes) to carry out demand-driven investments including rural roads, water supply, and small scale irrigation. Additional financing was recently approved as a supplement to the original grant to support the government's decentralization efforts and local governance reforms. Biodiversity and Protected Areas Management Project (US$1.91 million IDA; US$2.75 million GEF Grant) to develop a management framework for the internationally significant Virachay Protected Area as a model for strengthening the overall protected areas system in Cambodia.
 In addition to implementing projects with the above objectives, the Agriculture and Rural Development Unit at the World Bank is working to create a better understanding of rural development issues in Cambodia. To that end, multiyear partnerships with researchers, Government, donors and NGOs are being developed to build capacity and generate information in the following areas:
Natural Resource Management Framework Agrarian Structure Land Market Analysis Biodiversity Conservation Review of Options in the post-concession era, and Mekong Basin Water Management.
The World Bank also participates in technical working groups with other donors and stakeholders on land, forestry, agriculture and water, and decentralization and deconcentration, to develop coordinated programs of support and policy development, and to facilitate knowledge sharing. Avian Flu in Cambodia The Avian and Human Influenza (AHI) Control and Preparedness Emergency Project is currently in the pipeline and is expected to cost a total of US$11 million. The project’s overall development objective is to minimize the threat posed to humans and the poultry sector by AHI infection in Cambodia, and to prepare for, control, and respond if necessary to a human influenza pandemic. More specifically, the project will seek to: reduce losses of livelihoods of commercial and backyard poultry growers, as well as damages to the poultry industry, by containing the spread of the disease in animals, prevent or limit human morbidity and mortality by diminishing the viral load in the environment and stemming opportunities for human infection; and prevent or curtail macroeconomic disruption and losses by reducing the probability of a human pandemic.
More Information:
  CambodiaRuralDevelpmentStrategy.pdf (157kb pdf) Back to top |
 
 
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