Cambodia and ADB
In the Spotlight
Cambodia has long stretches of pristine beaches. However, tourism is highly concentrated in the area around the temples of Angkor. To spread the economic benefits of tourism, ADB is helping the Ministry of Tourism promote coastal tourism by improving infrastructure and environmental management.
ADB has approved a $60 million loan to boost the skills and competitiveness of Cambodia’s growing labor force, as the Government of Cambodia seeks to transition its economy from a low-skilled, labor-intensive growth model to a high skills-driven one.
A transition to clean energy such as solar can help Cambodia address some of its development challenges.
The Asian Development Bank is a key enabler of this transformation. It is mobilizing financing from the public and private sectors to help Cambodia adopt solar energy.
As Cambodia’s largest multilateral development partner, ADB’s completed projects between 2011 and 2017 have provided better education, improved water supply, and delivered new or improved sanitation to thousands of rural households, and constructed or upgraded more than 1,400 kilometers of roads.
In recent years, Cambodia has moved closer to lower-middle-income status through resounding economic growth. This has been driven by solid performances in garment manufacture, tourism, paddy and milled rice, and construction. While this growth is expected to continue in 2016, the economy remains vulnerable to external shocks and natural disasters. Although the poverty rate fell between 2007 and 2012, from about 50% to below 20%, more than 70% of Cambodians still live on less than $3 a day, which means that many of them remain vulnerable to falling back into poverty.
Under the country partnership strategy for 2014–2018, ADB will continue to support the government’s economic reform priorities and help promote inclusive growth.
Cambodia is a member of the Greater Mekong Subregion (GMS).