Poverty in Cambodia

Cambodia is one of the poorer nations in the world. The 2008 listing places Cambodia at 131 out of 177 nations on the United Nations Development Programs Human Development Index based on figures for 2005. Poverty in Cambodia has largely resulted from high population growth, inadequate opportunities, low capabilities, insecurity, exclusion and vulnerability (NPRS 2003, CSD/RGC, 20 Dec 2002). Both income and broader human development indicators shows that Cambodia is among the poorest countries in the world. According to the UNDP Human Development Report (2001), Cambodia ranks 121 of 162 countries in the world on the human development index.

Cambodia is also a post-conflict country, where many of the foundations for growth and development – physical, social, human and economic – have been shattered and need to be restored. Only recently have some parts of the country become accessible as the security situation has increased. The government lacks sufficient resources – both human and capital – to provide adequate services in health, education and infrastructure. Private sector growth is limited by weak regulations and land and property rights, poor infrastructure and little access to credit. In addition to this, allegations of corruption are widespread – Cambodia ranks 162 in the world (out of 179) and 26 in the Asia Pacific region on Transparency International’s 2007 Corruption Perception Index.

36.8 per cent of the population lives below the poverty line (2005) and while poverty has moderately declined in the last decade (in 1994 the poverty rate was 39%), the majority of growth is occurring in Phnom Penh and other larger provincial towns. 90 per cent of the poor lives in rural areas and the highest rates of poverty are found in households where agriculture is the primary source of income. In 2004, Cambodia ranked 24 out of 108 countries on the UNDP Human Poverty Index (HPI), with a score of 38.6. Chad topped the list with a HPI of 56.9.

Who are Cambodia's poor rural people?

· The country's poor people include subsistence farmers, members of poor fishing communities, landless people and rural youth, as well as internally displaced persons and mine victims. Tribal peoples and women are generally the most disadvantaged.

· Women in particular do not have equal access to education, paid employment and land ownership and other property rights. For many women, reproductive health services are inadequate or non-existent. Many women had to assume the responsibility of heading their households after male family members were killed in conflict.

Where are they?

· Poverty rates are highest in upland areas. The poorest people live in the districts close to the borders with Thailand and the Lao People's Democratic Republic in the north and north-east, and with Viet Nam in the east. Poverty is less severe in the districts around Tonle Sap Lake and those in the Mekong River basin in the south.

· Cambodia's poorest people are isolated. They live in remote villages, far from basic social services and facilities. Many have to travel more than 5 km to reach a health clinic, and still others live more than 5 km from the nearest road.

Why are they poor?

· The pressures of a fast-growing population contribute to poverty. Because of a lack of education and skills training, people have inadequate employment opportunities and low capabilities. They are insecure, excluded and vulnerable. They have limited access to natural resources. Poor health, lack of education, poor infrastructure and low productivity lead to deeper poverty. The cycle of poverty, ill health and high health care expenditure cripples poor Cambodian families economically.

· Rural poverty and lack of opportunity in rural areas have contributed to the spread of HIV AIDS, as young women migrate to urban factories and become sex workers in neighbouring countries. Although HIV prevalence rates have shown a decrease, the impact of the infection continues to be strong.

Social
Cambodia's social indicators are amongst the lowest in Asia. Life expectancy at birth is 58 years. In 2005 the infant mortality rate (per 1 000 live births) was 143 and the prevalence of HIV in the adult population was 1.6% (estimated 0.9 – 2.3%). The adult literacy rate (aged 15 and older) is 73.6%. The population of Cambodia is estimated at 14 million in 2005, the next census being conducted in 2008. The population is estimated to be growing at a rate of 1.8% at 2005, the second highest growth rate in ASEAN (Association of Southeast Asian Nations) countries. Cambodia also has a young population – in 2005 37.1% of the population was under the age of 15. (The above figures are quoted from UNDP Human Development Report 2007/2008).

Prolonged civil war, internal displacement and other social and economic factors have resulted in almost 20% of households headed by women. Women are generally in a disadvantaged position in both family and society. The poverty rate for female-headed households is 48%.

Cambodia's most vulnerable groups include internally displaced persons, returned refugees, war widows, orphans, street children, squatters, ethnic minorities and people with disabilities. Poor health is a major cause of impoverishment and other forms of social deprivation.

Rural - Urban Bias in Cambodia

Of the total number of the poor, more than 90 percent live in the rural areas. This implies that Cambodia’s poverty is rooted in its large agricultural sector, which has low productivity and low growth, but provides livelihood to the vast majority of the country’s population. As well as living in rural areas, the poor tend to have low levels of education and limited access to land and other productive assets. This results in households depending on low paying manual employment (e.g. daily labour).

In both urban and rural areas, the poor have less access to modern amenities and services. They reside in houses of inferior quality with no or limited access to basic services. The poor are more likely to reside in households with larger membership sizes, have more children, and have a household head that is less educated. They also have much less access to public services.

Rural poverty probably has declined at a much slower rate than poverty in Phnom Penh or other urban areas (UNDP, 2007). The significant fall in poverty in the bigger cities has been due to strong urban bias in growth and concentration of public investment. Cambodia’s economic success has been a largely urban phenomenon with the primary drivers – garments, tourism and construction – having few linkages with the majority of the population, who depend on agriculture as the main source of livelihood. Figure 3.9 and 3.10 compares poverty in Phnom Penh and in rural areas of Cambodia. Though poverty in Phnom Penh has decreased more than 50 percent in the period 1994 - 2004, rural poverty rates as seen no similar improvement.