1

Cambodia

Common Country Assessment (CCA)

Overview

Background: The Common Country Analysis (CCA) is the first step in the process of

developing the United Nations system’s new programme cycle of support to the Royal

Government of Cambodia (RGC), known as the United Nations Development Assistance

Framework (UNDAF). As such, it is anchored in the UN General Assembly’s 2016

resolution on the Quadrennial Comprehensive Policy Review (QCPR) of operational

activities for development of the United Nations system (A/C. 2/71/L.63), in which

Member States reaffirmed the use of the UNDAF as the main instrument to position the

UN operational activities for development to support countries in implementing the 2030

Agenda for Sustainable Development.

The CCA draws on latest available evidence and research and reflects the views of over

100 participants from Government, civil society and the United Nations system in

Cambodia. It shall inform the preparation of the UNDAF 2019-2023 by providing an

evidence base and causality analysis of key development challenges and trends to be

considered for UN system support.

The conceptual framework: The CCA has adopted the conceptual framework imbedded

in the 2030 Agenda for Sustainable Development (2030 Agenda) and its Sustainable

Development Goals

(SDGs) clustered around

the 5Ps: People (the

social dimension),

Planet (the

environmental

dimension), Prosperity

(the economic

dimension), Peace (the

ethical dimension

emphasizing ideals and

values of equality,

freedom, human dignity

and justice) and

Partnership

(underscoring the

importance of

collaboration). (see

Figure 1).

The 2030 Agenda is a

pledge to free the human

race from the tyranny of

poverty and want and to heal and secure our planet by taking bold and transformative

steps to shift the world onto a sustainable and resilient path. The 17 Sustainable

Figure 1 Agenda 2030 and the 5Ps

2

Development Goals (SDGs) build on the Millennium Development Goals and go beyond

these in an ambitious agenda that integrates the economic, social and environmental

dimensions of sustainable development with the aspiration of inclusive and peaceful

societies. The SDGs seek to realize the human rights of all and to achieve gender equality

and the empowerment of all women and girls, with no one left behind.

The 2030 Agenda is universal, integrated, transformative and people-centred, strongly

grounded in human rights. Accordingly, the causal analysis of the CCA has been

informed by the principles and approached for integrated programming of the latest

UNDAF guidance.1 Additionally, the CCA draws on an in-depth human vulnerability

analysis undertaken for Cambodia. The two strategies for reducing human vulnerability -

empowering people and providing protection from downside risks – are in keeping with

the United Nations’ 2030 Agenda principle of ‘leave no one behind.’

Cambodia’s achievements: Cambodia has recorded impressive progress along many

dimensions of human development. The country’s macroeconomic performance has

been impressive.2 The country has emerged as the sixth fastest growing country in the

world over two decades (see Figure 2).

1 The four principles for integrated programming are: 1) Leave no one behind; 2) Human Rights, Gender

Equality and Women’s Empowerment; 3) Sustainability and Resilience: and 4) Accountability. The key

approaches for integrated programming are: 1) Results focused programming; 2) Capacity development; 3)

Risk-informed programming; 4) Development, humanitarian and peacebuilding linkages: 5) Coherent

policy support: and 6) Partnerships. (UNDAF Guidance, UNDG, 2017) 2 Source: Ministry of Economy and Finance and Asian Development Bank, “Cambodia’s Macroeconomic

Progress: A Journey of 25 Years” Power Point Presentation, October 5, 2016 accessed at

https://www.mef.gov.kh/documents/shares/Macroeconomic_Progress_at_ADB.pdf

Source: Cambodia Human Development Report 2018 (forthcoming)

-4

-2

0

2

4

6

8

10

12

14

Figure 2: High GDP growth in Cambodia

GNI per capita growth (annual %) GDP growth (annual %)

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Sustained GDP growth rate of 7.6 per cent between 1994-2015, has catapulted Cambodia

to becoming a lower middle-income country in 2015. Nominal GDP increased eight

between 1993-2016, and GDP per capita increased 5.6 times between 1993-2016.

Inflation has remained low at less than five per cent due to the low level of oil and

commodity price. The overall balance of payments has been stable due to compression

of trade and current account deficits. Foreign Direct Investments (FDIs) remain high and

surpassed Official Development Assistance (ODA) in 2010.

By 2014, Cambodia’s poverty rate was 13.5 per cent - down from 47.8 per cent in 2007

(see Figure 3)

Income inequality has come down (see Figure 4) and there is increasing improvement

and convergence along indicators of health and school education.

Figure 3: Significant reductions in income poverty

Source: Cambodia Human Development Report 2018 (forthcoming)

0

20

40

60

80

2002 2004 2006 2008 2010 2012 2014 2016

National Poverty Headcount

WDI WB PA Re-statement Paper Other sources

Figure 4: Decline in income inequality

Source: Cambodia Human Development Report 2018 (forthcoming)

25

30

35

40

45

1990 1995 2000 2005 2010 2015

Gini Coefficient

4

These achievements have contributed to Cambodia’s Human Development Index (HDI)

rising from 0.357 in 1990 to 0.563 in 2015 (see Figure 5).

Cambodia is also undergoing significant physical and social transformation triggered by

the rapid expansion of social media and digital technology.

Key challenges: Despite the overall improvements, Cambodia continues to face four key

challenges.

• Narrow economic base: The narrow growth base of four sectors (garments and

footwear, tourism, construction, and agriculture), falling and fluctuating agricultural

commodity prices, and the increasing exposure to manmade as well as natural

disasters such as floods, heavy monsoons, and tropical storms makes the economy

extremely fragile.

• Persistent deprivations: More than a third of Cambodia’s population is

multidimensionally poor. Among the major deprivations are low and irregular

incomes, poor health and a high burden of rapidly increasing non-communicable

diseases, gaps in fulfillment of reproductive health and sexual rights, food and

nutritional insecurity, unequal access to quality education, poor housing and

sanitation, low rural incomes, urban distress, deforestation and climate change.

Though income inequality has been coming down, large gaps remain – between rich

and poor – and the absolute differences are getting bigger. The distribution of income

is fairly flat but rises sharply towards the top end (see Figure 5). Even after

recognizing that the top quintile might be understating its consumption, the levels of

consumption of the top quintile are almost five times that of the bottom quintile (see

Figure 6).

Source: Human Development Report 2016

0.357

0.5630.516

0.720

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

1985 1990 1995 2000 2005 2010 2015 2020

Figure 5:

Steady improvement in Cambodia's Human Development Index

Cambodia East Asia and the Pacific

5

Figure 7 Fivefold differential in per capita consumption by quintiles

Source: Cambodia Human Development Report 2018 (forthcoming)

Figure 6: Income distribution shows large disparities between the top and rest of the quintiles

Source: Cambodia Human Development Report 2018 (forthcoming)

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• Challenge of inclusive governance and assurance of human rights3: The Mid-Term

Review of the National Strategic Development Plan (NSDP)4 points to several areas

where governance reforms are needed to strengthen institutions and their

independence including sub-national administration (SNA), defining the role of

public and private sectors, strengthening education to prevent corruption and reduce

crime. More needs to be done in terms of responsiveness, and accountability to all

citizens. Civil society organizations continue to face significant obstacles. At the

same time, greater efforts are needed to assure the civil and political rights of

individuals, the press and civil society actors, and remove the constraints on freedoms

of assembly and association as well as opinion and expression.

• High vulnerability: Even though there has been a near five-fold increase in the per

capita income in the last decade or so, many people in Cambodia lead insecure lives.

They include the following:

The poor and near-poor: Poverty levels have declined sharply from 47.8 per cent in

2007 to 21.1 percent in 2010 to 13.5 percent in 2015. This far exceeds the CMDG

goal of 19.5 percent, and the NSDP target of 13.8 percent for 2018 based on the

nationally defined poverty line5. However, a vast majority of families who escaped

poverty were able to do so by only a small margin. Close to 4.5 million – 28 per cent

of the population – remain near-poor – vulnerable to falling back into poverty6.

The multi-dimensionally poor7: In 2015, 33 per cent of the Camodian population was

classified as being multidimensionally poor. Close to 22 per cent of the population

was estimated to be ‘vulnerable to poverty’ and another 11 per cent as being in

‘severe poverty.’ Ten per cent of the population was categorised as being ‘destitute’,

that is, being deprived in at least one third of more extreme indicators.

The urban poor: According to the 2015 ID Poor assessment for Phnom Penh8, the

city-wide poverty rate was 9.5 per cent, with poor households clustered in the north,

south and eastern periphery of the city. People living in urban poor communities face

a number of challenges including low and fluctuating incomes, poor quality housing,

inadequate access to public infrastructure and services.

3 RGC’s National Strategic Development Plan 2014-2018 recognizes the centrality of good governance,

establishing rule of law, and assuring human rights for ensuring social, economic, and human development

and sustainable management of natural resources. See Royal Government of Cambodia, National Strategic

Development Plan 2014-2018, Phnom Penh, Cambodia 4 Royal Government of Cambodia, Draft Mid-Term Review 2016 of the National Strategic Development

Plan 2014-2018, Phnom Penh, Cambodia 5 Royal Government of Cambodia, Draft of Mid-term Review 2016 On National Strategic Development

Plan 2014-2018, Cambodia 6 Need to add source 7 Oxford Poverty and Human Development Initiative (OPHI) www.ophi.org.uk accessed at

http://www.dataforall.org/dashboard/ophi/index.php/mpi/country_briefings on November 1, 2017 8 Need correct reference

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Disadvantaged groups: Among the most disadvantaged groups facing high

insecurities in their daily lives are the following:

• Informal sector and migrant workers: A large proportion of Cambodian workers

(typically migrants, employed in the unorganized sector, particularly workers in

the construction industry, domestic workers, migrant workers especially women

who migrate overseas, street venders, women working in entertainment places,

and tuk-tuk drivers) face high insecurity in their employment. With low skills and

unstable employment guarantees, such workers are exposed to high work-related

hazards and yet are not properly protected by laws and any social protection

measures.9 Migration adversely impacts children’s upbringing, family unity and

cohesion. It makes women and children more vulnerable to gender-based and

interpersonal violence and exacerbates social and health related vulnerabilities

(such as prostitution, human trafficking, HIV, alcohol and drug abuse).

• Indigenous communities and other ethnic minorities. Economic land

concessions, mining concessions and hydropower dams, land grabbing,

deforestation, illegal logging, and in-migration by people from other parts of the

country to the highlands are reported to have severely impacted the livelihoods

and land rights of indigenous groups.10 While the Land Law offers protection to

indigenous communities, limited implementation and enforcement is reported

to have left indigenous peoples vulnerable. Similarly, a few minority

communities such as the Cham, the Khmer Loeu (translated as ‘highlanders’ or

‘hill tribes’), the Chinese ethnic community and the ethnic Vietnamese are

reportedly facing difficulties in establishing their identities and accessing public

services and other benefits to which Cambodians are entitled.

• The disabled. Estimates of the number of Cambodians with disability vary from

193,000 to 624,000 people. About 86 per cent of them lived in rural areas.

Persons with disabilities experience a higher rate of poverty, illness, injuries than

persons without disabilities. Children and women with disabilities face significant

discrimination in the community, ranging from childish to extremely violent.11

Consequently, their opportunities and security are further limited.

• The LGBT Community. Sexual minorities are another vulnerable group that

suffers extensive social exclusion and human rights abuse. Dropout rates among

LGBT youth are higher than the overall school-going population, due to bullying

by peers and economic hardship from family rejection. LGBT Cambodians do

not feel comfortable being open about their sexual orientation, gender identity and

expression in the workplace, and experience limited job opportunities due to

9 ILO (2017) Enhancing Occupational Safety and Health Standards in Construction Sector in Cambodia;

Phnom Penh Post (2017) Construction labor lament pay gap, labor laws; UN Women. (2015). Out from

Behind Closed Doors, Study on Domestic Workers in Cambodia. 10 Open Development Cambodia website accessed at https://opendevelopmentcambodia.net/topics/ethnic-

minorities-and-indigenous-people/ 11 Jennifer Carter, “Preparing for the Journey: A Cooperative Approach to Service Provision for Children

with Intellectual Disabilities in Cambodia

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discrimination and exclusion. Transgender persons in particular are frequently

harassed because of their appearance and their livelihood as entertainment or sex

workers.

Entire populations: There are also entire sets of populations that continue to face

insecurities in their lives. Among them are:

• Children: In 2015, Cambodia’s children under the age of 18 – 5.8 million of

them - accounted for almost 37 per cent of the country’s population. Close to

72 per cent of Cambodia’s children age 0-17 years suffer from multiple

deprivations, and nearly half – 49 per cent - suffer from at last three

deprivations.12 About one in every ten children aged 5 to 17 years is in child

labour.13 Close to 19 per cent of girls in Cambodia are married before their 18th

birthday, while two per cent are married before their 15th birthday.14 Children

remain particularly vulnerable to interpersonal violence. One in two children

have experienced severe beating, one in four children have experienced

emotional abuse, and one in 20 girls and boys have been sexually assaulted.15

Children living outside of family care, including in orphanages and on the

streets, face particularly high insecurities.

• Women: Cambodian women have made significant progress along many

dimensions of human development. They are progressively enjoying greater

freedoms and claiming their rights especially through increased employment

opportunities reflected in the high rates of work participation rate (81 per cent

in 2017)16, as well as in the prominent role they play within the family in

handling finances, trade and market activities. At the same time, however,

patriarchal values have denied women equal opportunities. This is reflected,

for instance, in their high dependence on men, the limited access to resources,

constraints in exercise of reproductive and sexual rights, the high prevalence of

interpersonal violence, and the negative stereotyping in a society. Women are

expected to adhere to social norms which ‘gender privilege’ men while under-

valuing the capacity and potential of women. Invisible social norms continue

to confine women to household and childcare duties, while at the same time

the family’s economic status pressures women to engage in income-generating

activities.17

12 Julia Karpati, Liên Boon & Chris de Neubourg (2017), Child Poverty in Cambodia, Social Policy

Research Institute, Economic Policy Research Institute, Cambodia 13 ILO, “Press Release - New Cambodia Labour Force and Child Labour Survey” 28 November 2013 14 Source: UNICEF, The State of the World’s Children 2017 accessed at

https://www.unicef.org/publications/files/SOWC_2017_ENG_WEB.pdf 15 UNICEF, “Where do we place child protection in in the next UNDAF (2019-2023)?” (Draft), A UNICEF

Cambodia discussion paper, Cambodia 16 International Labour Organization, ILOSTAT database. Data retrieved in March 2017accessed at

https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?locations=KH 17 Ministry of Women’s Affairs of Cambodia, Policy Brief 2, ATTITUDES – Gender relations and

attitudes, Cambodia Gender Assessment 2014 accessed at

http://www.kh.undp.org/content/dam/cambodia/docs/DemoGov/NearyRattanak4/Neary%20Rattanak%204

%20-%20PB%20Gender%20Relations%20and%20Attitudes%20Eng.pdf

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• Youth: One in five Cambodians is between the age of 15 and 24, and almost

two-thirds of the population is below the age of 30 years.18 Many face high

insecurities in their lives. Not finding decent jobs is the biggest concern for

young people in Cambodia. Most of them earn low and insufficient wages.

Those engaged in the low-productivity rural agricultural sector have been

migrating to cities in search of better jobs. Higher education does not

necessarily get better jobs for young people. The dropout rate for lower

secondary school, close to 20 per cent, has remained unchanged since 2010.

Sexual and reproductive health is a particular concern for adolescent girls and

young women. Alcohol consumption, abuse of tobacco and illicit drugs

amongst teenagers, particularly boys, is on the rise, contributing, among other

problems, to road traffic accidents.

• The elderly. Declining fertility and the increase in life expectancy at birth to 70.8

years for women and 66.7 years for men, have contributed to the increase in the

population aged 60 and above in Cambodia to 1.11 million in 2015 – 7.2 per cent

of the population up from 5.2 per cent in 1998.19 Cambodia has one of the lowest

coverage rates in the region, with only 3.2 per cent of the population above

pensionable age receiving old-age benefits.20 In the absence of a pension

programme or any other form of old age assistance provided by the State, natural

deterioration of in physical capabilities and health imposes a high burden of care

on family members and caregivers (particularly women). The ageing population

also becomes vulnerable to abuse and exploitation. Compounding these factors

are social isolation and limited community support.

Vulnerability to what? A majority of Cambodians is extremely vulnerable to economic

shocks, nutritional neglect, health shocks, deforestation and climate change, and the

adverse impacts of uncoordinated urbanization.

• Economic shocks: The heavy dependence on foreign investments and preferential

access to markets makes Cambodia extremely vulnerable to economic shocks.

Cambodia also faces risks arising from unfavourable global competitiveness.

Cambodia ranks 94th out of 137 countries on the Global Competitiveness Index for

2017-18 – down from 89th in 2016-17.21 Contributing to the competitiveness are

fragile institutions, inadequate infrastructure, and limited human capital. Cambodia

ranks 124 out of 130 countries for its performance in higher education and training,

18 UNFPA, Cambodia Youth Data Sheet 2015 accessed at http://cambodia.unfpa.org/sites/default/files/pub-

pdf/Flyer_Cambodia_Youth_Factsheet_final_draft_%28approved%29.pdf 19 See Royal Government of Cambodia, “National Ageing Policy 2017-2030” approved by the Council of

Ministers in the Plenary Cabinet Meeting on the 25th of August 2017. 20 ILO, “World Social Protection Report 2017-2019: Universal social protection to achieve the Sustainable

Development Goals” accessed at http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---

publ/documents/publication/wcms_604882.pdf 21 World Economic Forum, The Global Competitiveness Index 2017-2018 edition, accessed at

http://www3.weforum.org/docs/GCR2017-

2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf

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and 101 out of 130 countries for its performance in health and primary education.

Also, frequently damaging the economy and driving families into debt is the

unbalanced exploitation of natural resources.

• Nutritional neglect: Cambodia faces a double burden of both under-nutrition as well as

obesity. Close to 32 per cent of Cambodia’s children under the age of five are stunted,

28 per cent are underweight, and 9 per cent are wasted.22 Contributing to under-

nutrition are poor infant feeding practices, high disease burden, limited access to

nutritious foods, and lack of safe sanitation. Some 21 per cent of all households

cannot afford a nutritious diet peaking in the North East region at 66 per cent.23 And

only 30 per cent of children 6-23 months enjoy minimum acceptable diets.24 One in

five women are considered too thin and four in five women are considered too

short.25

• Health shocks: The burden of non-communicable diseases is the highest in

Cambodia, followed by maternal, newborn and child health. Accidents are the third

major cause of deaths in Cambodia. The country achieved the MDG targets of

halving TB prevalence and mortality rates. However, multidrug resistance continues

to rise. based on figures from routine surveillance. Despite success in reducing HIV

prevalence among the adult general population, HIV case detection among high-risk

populations remains a challenge. Nearly one third of adult men use tobacco. One in

every two working adults is exposed to second hand tobacco smoke in their

workplace, and two in three are exposed to second-hand smoke at home. Data from

the Cambodia Socioeconomic Surveys in 2004, 2007 and 2009 show a trend of

increasing alcohol consumption. Nearly one in every five road accidents in Cambodia

is related to drink–driving.26 Unfortunately, the high private out-of-pocket

expenditures on health (63.2 per cent in 2014) makes large segments of the

population extremely vulnerable to ill health requiring medical treatment.27

• Deforestation and climate change: The Royal Government of Cambodia recognizes

that the poor and rural populations of Cambodia, the majority of whom are women,

are most vulnerable to climate change impacts because of their high dependence on

agriculture and natural resources.28 Particularly vulnerable are those living in areas

prone to flooding from rivers and streams face the risk of floods cutting of their

movement and transportation of goods. Cambodia is witnessing more frequent and

intense extreme weather, floods, droughts, and increased storm surges that make 22 UNICEF, State of the World’s Children 2016 23 WFP, “Fill the Nutrient Gap: Cambodia - Summary Report” November 2017 24 UNICEF, State of the World’s Children 2016 25 UNICEF, “Cambodia: Health and Nutrition” accessed at

https://www.unicef.org/cambodia/12963_19125.htm 26 World Health Organization (Western Pacific Region), “Cambodia–WHO Country Cooperation Strategy

2016–2020”, accessed at

http://apps.who.int/iris/bitstream/10665/246102/1/WPRO_2016_DPM_004_eng.pdf 27 Health Policy Project, “Health Financing Profile: Cambodia: accessed at

https://www.healthpolicyproject.com/pubs/7887/Cambodia_HFP.pdf 28 See Cambodia Climate Change Strategic Plan 2014 – 2023 2013 National Climate Change Committee, Royal Government of Cambodia,

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people’s livelihoods extremely vulnerable. The 435 km Cambodia coastline is

vulnerable to sea-level rises and the severe impacts of more frequent typhoons under

future climate projections. This could have effect on tourism potential and cause

coastal erosion, and strong winds would damage settlements in the coastal areas.

• Uncoordinated urbanization: In 2014, about 21 per cent of the population was living

in cities which is still small relative to other countries in the region such as Indonesia

(53 per cent), Thailand (49 per cent) and Vietnam (33 per cent). Limited job

opportunities and low farm incomes have led to the migration of large segments of the

rural population to Phnom Penh and other cities. A recent WFP survey29 indicates that

the rural-urban and cross-border migration has intensified especially since 2013. Rural-

rural migration accounts for 13 per cent, rural-urban 57 per cent and cross border for

31 per cent. Phnom Penh is the most preferred option for both permanent and long-

term migrants, while Thailand has become increasingly more popular destination not

only for long term but also seasonal and even permanent migrants. Migration is

beginning to put enormous strains on the cities especially in terms of creating decent

jobs, providing basic social services including affordable housing, safe drinking water

and sanitation, public schools, and health care facilities, ensuring adequate garbage

disposal and sewerage systems, creating urban public transport infrastructure and

services, and guaranteeing safety and security of women and children.

The why of vulnerability: Identified below are some of the key factors contributing to

the vulnerabilities of people in Cambodia:

• Unequal access to opportunities. The expansion of opportunities has not been

equitable across Cambodia. The more vulnerable are those who have not benefited

equally from the country’s development. Largely responsible for this has been the

inadequate reach of and access to quality public services. Health outcomes still

exhibit an urban-rural and rich-poor differential. Maternal and child health outcomes

vary according to socioeconomic status and geographic location: the fertility rate for

women in the poorest quintile is twice that for the richest quintile; children in the

poorest quintile have a more-than-threefold risk of death before their fifth birthday

than those in the richest quintile; stunting is more than twice as common among

children in the poorest quintile than those in the richest.30

• Life cycle vulnerability. Life capabilities at one stage in life are affected by

investments (or lack of it) made in the preceding stages of life. In Cambodia, for

instance, vulnerability of children on account of multiple deprivations is not uniform

across the age groups.31 Among children age 0-4 years, deprivations in nutrition,

child development, and housing overlap. Among children age 5-14 years,

29 World Food Program “Migration in Cambodia: Trends, Drivers and Impacts”(forthcoming 2018) 30 World Health Organization 2016 (on behalf of the Asia Pacific Observatory on Health Systems and Policies), “Cambodia Health Systems in Transition - Increasing equity in health service access and financing: Health strategy, policy achievements and new challenges”, Policy Note #5, accessed at http://apps.who.int/iris/bitstream/10665/249514/1/WPR-2016-DHS-009.pdf?ua=1 31 Julia Karpati, Liên Boon & Chris de Neubourg (2017), Child Poverty in Cambodia, Social Policy

Research Institute, Economic Policy Research Institute, Cambodia

12

deprivations in education, safe drinking water, and housing become significant. And

among children age 15-17 years, deprivations in education, sanitation and housing

overlap the most. In other words, early childhood development interventions alone

are not sufficient. Later complementary investments in lifetime learning during

adolescence, adulthood and old age are necessary to ensure that individual

capabilities can develop to their full potential. It is particularly important to pay

special attention to women in the reproductive age with unmet needs of health

services and the elderly with limited access to health care. However, absence of

specialized data to assess prevalence of different forms of life cycle vulnerabilities.

• Structural vulnerability. Structural vulnerabilities are manifested through deep

inequalities and widespread poverty that are perpetuated by exclusion and limited

human development which reduces their ability to cope with downside risks and

shocks. Structural vulnerability is rooted in people’s position in society - their gender,

sexual orientation, job type, or social status - and persists over long periods. Indigenous

communities and ethnic minorities have been historically exposed to risks of

expropriation and exploitation given their position in society. The defencelessness that

characterizes their lives can be traced to social marginalization, political discrimination

and a host of other structural factors. Similarly, the vulnerability of women arises from

their subordinate position to men in society.

• Institutional shortcomings: State Institutions in Cambodia have not been able to

effectively and sufficiently enhance choices and expand opportunities for people.

Reflecting institutional shortcomings is also the high levels of corruption. Cambodia

ranks 156th out of 177 countries on the Corruption Perception Index 2016.32 Though

many policies, plans and strategies are in place, implementation and enforcement of

regulations is limited and uneven. For instance, Cambodia ranks low at 135th out of

190 countries on the World Bank’s ease of Doing Business Index.33 Among the most

problematic factors for doing business in Cambodia are corruption, inadequately

educated workforce, policy uncertainty, and inadequate supply of infrastructure.

There are shortcomings in the provision of public services as well. The health care

system, for instance, is faced with insufficient public spending on health, limited

human resources, shortage of facilities, limited management, and limited community

participation. Institutional capacities – financial as well as human resources - remain

constrained. For example, the limited provision of quality of health services can be

traced, among other factors, to insufficient investments in infrastructure, building the

health workforce, and regulating health care in both the public and private sectors to

ensure quality and consumer protection. Though the tax-to-GDP ratio has been

increasing steadily from around eight per cent in 2005 to 15.2 per cent in 201634,

levels of public spending on health remain low with Government Health Expenditure

32 Transparency International accessed at https://www.transparency.org/country/KHM 33 The World Bank (2017), “Doing Business 2018 Reforming to Create Jobs” accessed at

http://www.doingbusiness.org/rankings?region=east-asia-and-pacific 34 https://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS?locations=KH

13

(GHE) as proportion of GDP at 1.3 per cent and general government expenditure at

6.1 per cent.35

The State’s response: Several policies and plans reflect the commitment of the Royal

Government of Cambodia to reducing vulnerabilities. The National Strategic

Development Plan 2014-2018, for instance, seeks to promote growth, employment,

equity, and efficiency in order for Cambodia to become an Upper-Middle Income

Country.

The Royal Government of Cambodia has also announced several policies and developed

strategies to reach the goals. Notable among these are, for instance, the formulation of

the Agriculture Sector Strategic Development Plan 2014-2018, the Cambodia Trade

Integration Strategy 2014-2018, the Industrial Development Policy 2015-2025, the

Medium Term for implementation of Cambodia’s Trade Swap (2016-2020), the National

Population Policy, 2016-2030, the National Youth Policy, 2011, the Strategic Planning

Framework for Livestock Development (2016-2025), the National Aging Policy (2017-

2030), the National Climate Change Strategic Plan (2014-2028), the National

Employment Policy (2015-2025), the Health Strategic Plan 2016-2020, the National

Policy on Green Growth Development and National Strategic Plan on Green Growth

Development 2013-2030, the National Strategic Development Plan 2014-2018, the Social

Protection Policy Framework for 2016-2025, and the National Strategy for Food Security

and Nutrition 2014-2018. The Mid-Term Review36 of the National Strategic Development Plan has further

identified the following seven overarching and inter-related themes to achieve sustainable

poverty reduction, inclusive growth, and attain an upper middle-income country status by

2030: 1) Poverty Reduction and Inclusive Growth; 2) Revitalizing Agriculture; 3)

Competitiveness; 4) Migration and Urbanization; 5) Climate Change and Deforestation;

6) Governance; and 7) Human Resource Development.

Priority areas for UN actions: In line with Agenda 2030 and the SDGs, Cambodia

should pursue the goals of widening choices, enhancing people’s capabilities, expanding

freedoms, and assuring citizens of their human rights. The focus therefore should be on

accelerating and sustaining economic growth, reducing vulnerabilities, and promoting

human development.

Consistent with the Royal Government of Cambodia’s ‘Rectangular Strategy’ of

promoting growth, employment, equity and efficiency, the UN support shall respond to

anticipated changes in the economy, assess risks, and leverage on its comparative

advantages and target the most vulnerable and focus on areas where the United Nations

can make the most difference in support of national development priorities and the 2030

Agenda.

35 Health Policy Project, “Health Financing Profile: Cambodia: accessed at

https://www.healthpolicyproject.com/pubs/7887/Cambodia_HFP.pdf 36 Royal Government of Cambodia, Draft Mid-Term Review 2016 of the National Strategic Development

Plan 2014-2018, Phnom Penh, Cambodia

14

Informing the identification of priorities are also the following lessons learned from the

UNDAF Evaluations of 2011-2015 and 2016-2018.

➢ Relevance: UNDAF adequately reflects Cambodia’s national priorities, but not

always added value for agencies

➢ Coherence: The overall design of the UNDAF’s outputs and outcomes is mixed.

There is lack of internal logic and coherence in the UNDAF programmes

➢ Effectiveness: There are some areas where the UN has achieved real success. There

are also other areas where success has been elusive. This points to the need for (i)

more innovative approaches; (ii) greater flexibility and experimental approach to

design and delivery; and (iii) improvements in programme relevant data (UNDAF

results matrices, performance indicators, targets, data collection procedures)

➢ Resources : There is need to ensure adequacy of resources to influence performance.

➢ Partnerships: Partnerships between UN agencies (such as joint UN programming)

have shown limited success. There is need for realistic reporting - acknowledge

divergence in government vs UN ownership and analysis of results)

Over the years, the United Nations in Cambodia has developed a good reputation as a

trusted, responsive, and flexible partner of government and civil society organizations.

The UN has also enabled Cambodia to access global technical expertise as well as

regional and global networks by leveraging south-south cooperation especially in the

field of promoting human development. It has also built well-established coordination

mechanisms with government at different levels of public administration.

Many demographic, economic, and social changes are expected in Cambodia by 2030.

According to projections based on the Census 2008, the total population is projected to

increase from 15.3 million in 2015 to 18.1 million in 2030. This is likely to be

accompanied by further reductions in fertility rate and improvements in child survival

and life expectancy.37 By 2050, Cambodia’s life expectancy at birth is expected to

increase to 74+ years (from 67 years today; the under-five mortality rate to 6 deaths per

1000 live births)38; by 2030, the TFR will fall to 2.1 – the replacement rate.39

The proportion of the ageing population is projected to increase, the proportion of children

below 14 years is projected to fall, and the proportion of population 15-64 years is likely

to fall from around 13 per cent in 2013 to 9.3 per cent in 2030.40 On the economic front,

economic growth rates will have to rise from around 7 to 9.5 per cent every year until 2030

– for Cambodia to qualify as an upper middle-income country. This in turn is likely to

result in a fourfold increase in per capita incomes by 2030. Significant social

transformations can also be expected given the shifts in youth aspirations – away from

agriculture to well-paid urban jobs. As migration increases, family structures and intra-

37 Royal Government of Cambodia, National Ageing Policy 2017-2030, Phnom Penh 38 United Nations, World Population Prospects Volume 1 and II 2017 Revision. Department of Economics

and Social Affairs, Population Division, United Nations 39 Royal Government of Cambodia, National Ageing Policy 2017-2030, Phnom Penh 40 Royal Government of Cambodia, National Ageing Policy 2017-2030, Phnom Penh

15

household equations are expected to change. Technology and other factors would have

transformed communications, improved public management and deepened democracy.

The shortlisting of UN priorities has also been informed by risks identified in and by: (i)

the Sendai Framework for Disaster Risk Reduction 2015-2030 (natural and manmade);

(ii) food and health security; (iii) implementation of international health regulations; and

(iv) the need for Cambodia to gear up with a decrease in ODA.

Recognizing the comparative advantages, the CCA has identified four inter-connected

priority areas for the United Nations system in Cambodia, aligned to the seven

overarching and inter-related themes listed in the NSDP Mid-Term review, to support the

efforts of the Royal Government of Cambodia at promoting sustainable growth and

reducing vulnerabilities:

Priority Area 1: Expand economic and social opportunities: Macroeconomic policies

are needed to rapidly expand opportunities for decent work, increase global

competitiveness, and ensure economic diversification. Those facing multiple

deprivations living below or near the poverty line, women, children and youth, the

elderly, people with disabilities, migrant and child workers, the LGBT community,

indigenous communities and other ethnic minorities, and people living with HIV and

suffering from chronic illnesses will require priority attention. Strategies ought to

address the drivers of vulnerability, namely lack of education and awareness, poor health,

under-nutrition, unemployment and under-employment, financial illiteracy and

indebtedness, and unequal access to basic social services and public infrastructure.

16

Effective use should be made of new technology, growing internet access and

connectivity, and the private

sector as well as regional

and global platforms to

improve access to credit and

expand markets. In order to

gain and maintain access to

international trade and

benefit from global markets,

it is important that local

products continued to

enhance productivity, and

comply with standards and

quality requirements. Public

service delivery systems

should be appropriately

resourced, decentralized,

and implemented to ensure

quality, equitable access,

and efficiency. Policies

should be backed by

political commitment as

well as effective legal and

regulatory frameworks that

assure citizens of rights

enshrined in the

Constitution. Public action

should be mobilized to

address structural factors

such as gender and ethnicity

and adverse social norms that deny people equal access to opportunities.

Priority Area 2: Promote Sustainable Living: Cambodia ranks 146th out of 180

countries on the Environmental Performance Index (EPI) – a global index that

measures a country’s environmental performance.41 Cambodia scores well in handling

nitrogen balance, especially in agricultural industry. However, the country is

underperforming in the areas of air quality, water resource management, health

41 Hsu, A. et al. (2016). 2016 Environmental Performance Index. New Haven, CT: Yale University. Available: www.epi.yale.edu.

Box- 1

Key actions

For expanding economic opportunities:

• build human assets to facilitate economic mobility, industrial

diversification, sustainable development, and shared prosperity

• improve quality of basic education, enhance skills, improve the

quality, especially of, higher, as well as Technical and

Vocational Education and Training

• invest appropriately in natural capital, climate resilience and

urban development

• strengthen productivity capacity and competitiveness of small

and medium enterprises through improved access to technology,

credit, know-how, raw materials, to serve domestic markets, and

integrate into regional and global value chains.

• promote agricultural productivity, food quality, safety and

security to serve domestic markets and support export-ready

entrepreneurs to access regional and global markets.

• improve agricultural productivity,

• enhance business enabling environment, human and institutional

capacity to promote industrial diversification.

• strengthen capacity to improve, assess and ensure quality and

safety at the institutional and enterprises level

For expanding social opportunities:

• improve access to health services for ensuring universal health

coverage and promoting health security

• promote nutritional security

• make social protection universal

17

impacts of environmental issues, sanitation, environmental impacts of fisheries and

forest management.

There has been a more than fourfold increase in consumption increased more than

fourfold increase in electricity consumption between 2002-2011 and is estimated to

rise by 9.4 per cent at the end of 2020. Electricity prices are among the highest in the

ASEAN region.

If issues of

sustainable living are

left unattended, both

urban and rural

residents are likely to

face increasing

threats and

uncertainty in the

future. In rural areas,

those dependent for

their livelihoods on

natural resources are

likely to adversely

impacted by

increasing frequency

of floods and natural

disasters, unchecked

deforestation, fish-

stock depletion, and

declining farm

productivity.

Economic Land

Concessions (ELCs) and Social Land Concessions (SLCs), the construction of

hydropower dams, and other infrastructure, including mining, roads have had negative

impacts on the environment. Deforestation driven by legal and illegal logging

threatens the livelihoods of 80 per cent of the rural population. Indigenous

communities and ethnic minorities face significant uncertainties due to uncertain and

insecure tenure of land rights as well as land disputes.

Urban areas have their own set of insecurities. Lack of open spaces, pollution, traffic

accidents and congestion, the spread of urban slums, poor sanitation and urban

infrastructure magnify public health problems of cities. Increased cost of living,

unhealthy lifestyles and faulty diets make urban residents highly susceptible to

problems of poor health, infertility, and depression. Limited physical activity, no time

for exercise, eating junk foods, working long hours, and leading sedentary lives are

leading causes of health problems such as diabetes, hypertension, blood pressure, high

cholesterol, obesity, and arthritis. Flooding also tends to cause greater damage to

Box – 2

Key Actions

Promote eco-friendly green living, production, innovation and

reduce carbon footprint by appropriate methods of transportation,

energy consumption, healthy lifestyles, and proper diet

• use a green lens to address issues of production and

resourcing, consumption and use, technology, clean energies

and infrastructure

• pay special attention to material and energy, water and air,

flora and fauna, habitat and food, constructions and

settlements, emission and wastes

• develop human and institutional capacity to fulfil obligations

under international conventions

• engage with communities to transform existing practices

relating to recreation and creativity, enquiry and learning,

health and well-being

• revisit structures of organization and governance, law and

justice, representation and negotiation, dialogue,

reconciliation, and conflict resolution.

Strengthen national capacity to meet requirements of key

international conventions and treaties especially those concerning

waste management, pollution and hazardous wastes.

18

property in urban areas. Misuse of antibiotics in humans and animals, by increasing

bacterial resistance, poses one of the biggest threats to global health and food security.

Priority Area 3: Manage Urbanization: Creating decent jobs, keeping the

environment clean and ensuring adequate provision of basic services and

infrastructure including affordable housing, public transportation, affordable health

services, quality education,

water and public sanitation, and

internet and digital connectivity

are much needed to reduce the

vulnerabilities of both residents

and migrants into Phnom Penh

and other cities. Equally

important will be to ensure the

safety especially of women and

children, and keep cities free of

drugs and crime. Particularly

vulnerable are families living

in the outer zones where public

infrastructure and services are

poor, garment workers, mostly

migrants, other informal sector

workers including domestic

workers, entertainment

workers, motor-taxi/tuk-tuk drivers, street vendors and those working on construction

sites. Among the most vulnerable are also people and children living on the streets,

and many others not living in households on whom data are not available. The stress

on urban environments is likely to increase due to the large inflow of low skilled

migrants, triggered by lack of livelihood opportunities in rural areas, and the growth of

unskilled jobs especially in the construction and real estate fuelled by increasing

foreign direct investments, notably from China. The urban pull is also being generated

by poor public services especially in rural areas and the outer zones.

Priority Area 4: Strengthen Accountability and Participation: Many segments of

Cambodia’s population do not have sufficient voice and representation in public

decision making. Among them are clients of poorly delivered public services, less

connected and economically constrained rural families and youth, and young migrants

including women who lack legal rights and protection in places of destination.

Adversely affected are also people with disability, members of the LBGT community,

and families belonging to indigenous groups and minorities who constitute too small a

group to be heard. Women remain under-represented in most political forums.

Corruption and limited justice sector reform threaten to undermine public confidence

in the rule of law. At the same time, many migrants who are economically vulnerable

prefer not to complain given the enormous shortage of employment opportunities in

rural areas.

Box- 3

Key actions

• create decent jobs in urban areas

• preserve urban heritage

• ensure adequate provision of basic services and

infrastructure

• ensure safety especially of women and children

• streamline policies for regulating rural-urban as

well as cross-border migration

• extend legal and social protection for informal

sector and migrant workers

• find ways of mobilizing additional financial

resources to provide adequate public infrastructure

and services

• improve urban governance

• strengthen evidence and data base data on

urbanization and informal settlements

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It is important to factor in the socioeconomic impact of corruption and low accountability

of public institutions and, at

the same time, safeguard

independence of institutions

for better performance and

results. The extent of people’s

participation is not so much

constrained by limited

information, but by limited

awareness and knowledge

about many schemes and

programmes that benefit the

vulnerable. This is further

exacerbated by the limited use

of ICT and slow

decentralization that constrain

local governments from being

more responsive to the needs

of local communities and

accountable to people.

Realizing the SDGs: The four UN priority areas are intended to contribute towards

Cambodia’s commitments towards the realization of the SDGs (see Figure 4).

Box – 4

Key actions

Strengthen Accountability

• Implement Public Administration reforms

• Promote inclusive governance by introducing

measures such as

• right to information

• public service guarantee measures

• grievance redress measures

• Improve the poor’s access to justice

• Introduce private sector regulation

Strengthen Participation

• Decentralisation and de-concentration

• Mandate community participation and monitoring of

public programmes

• Ensure more equal representation of disadvantaged

groups

• Maintain and expand political and CSOs space for

public action

• Amplify voice of young people by tapping new

technology and social media

Figure 4:

The four inter-connected priority areas for UN action are closely linked to the attainment of

the SDGs.

•Critical for the realization of SDGs 1, 2, 3, 4, 5, 6, 7, 8, 10, 11

•Critical for the realization of SDGs 5, 10, 16 and 17

•Critical for the realization of SDGs 1, 6, 7, 11-14

•Critical for the realization of SDGs 1, 2, 3, 4, 5, 7, 8, 9 and 10

Expand social and economic opportunities

Promote sustainable

living

Manage urbanization

Strengthen accountability

and participation

20

The process of the localization of the SDG indicators is well underway in Cambodia.

Strategic integration of SDG targets in the national development plan is forthcoming. A

unique feature of the Cambodia SDGs is the inclusion of an additional Goal 18:

“Demining/Removing Explosive Remnants of War and Victim Assistance”.42 In addition

to accelerating economic growth, it is important for Cambodia to focus on improving the

quality of growth and reduce vulnerability systematically if the country’s progress is to

be equitable and sustainable. The multiplier and accelerator effects of expanding

economic opportunities, increasing prosperity, and reducing people’s vulnerability are

key to the attainment of the SDGs.

42 As confirmed in the RGC statement to the Second ECOSOC Forum for Development Follow-Up,

available at: http://www.un.org/esa/ffd/wp-

content/uploads/sites/3/2017/05/2017FFDF_GeneralDebate_Cambodia.pdf