Study points to returns on investments in human resources

Monday, 01 June 2009

PHNOM PENH, 25 MAY 2009: In the midst of the still unfolding global economic crisis, countries worldwide, including Cambodia, are facing unprecedented pressures. Cambodia remains particularly vulnerable given both its level of development and its reliance on a very narrow economic base. Women, who make up the majority of the garment factory workers who have recently been laid off, are among those most severely affected by this crisis. Turbulent times may lie ahead for Cambodia and other countries with similar characteristics in terms of economic growth, social stability, and the livelihoods of their citizens.

Improved competitiveness promotes economic growth and human development, which in turn enhances sustainable livelihoods and fosters more rapid and in¬clusive growth. Economic growth also has spill-over effects beyond poverty reduction. Sustainable economic growth enhances human development by creating better job opportunities and an environment in which businesses can grow, supporting greater accountability at all levels of decision making, and improving workers’ knowledge and skills. Similarly, greater human capital, an improved business environment and an equitable society generate more growth.

UNDP Cambodia’s Insights for Action Initiative (IFA), in cooperation with the Supreme National Economic Council and the Overseas Development Institute, today published a report, Cambodia Country Competitiveness: Driving Economic Growth and Poverty Reduction, which identifies sectors where Cambodia has the potential to gain a competitive advantage. The report also describes medium- and long-term policy options to improve Cambodia’s competitiveness and sustain its economic growth and poverty reduction achievements. Looking at the main sources of growth – agriculture, garments, tourism, construction, and Internet and telecommunications – the study identified the main factors constraining growth, as well as strategies to alleviate those constraints.

The current economic climate provides an unprecedented opportunity to re-evaluate and build upon Cambodia’s recent achievements, and to strengthen its economic foundation for sustained development, and poverty reduction. The challenge now is to identify reforms and incentives that will keep the country’s growth on track and ensure continued improvements in human development, especially for Cambodia’s poorest and most vulnerable.

“With the publication of this report, and through ongoing consultations with Government, development partners, private sector and civil society, these ideas will continue to be shared and will contribute to discussion on how to continue to reduce poverty, and respond to the global financial and economic crisis,” said UNDP Cambodia Country Director Jo Scheuer. “By building a modern and prosperous nation that can compete in a highly competitive world, prosperity can extend to all Cambodians.”

IFA was created in 2005 to undertake critical and timely policy research and to facilitate policy dialogue among the Cambodian Government, Cambodian society and Cambodia’s de¬velopment partners. IFA generates innovative ideas and practical knowledge for the effective implementation of the Government’s Rectangular Strategy. Special focus is given to those aspects of the Rectangular Strategy with greatest scope for rapidly advancing progress towards Cambodia’s Millennium Development Goals.

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For further information, please contact:

Margaret Lamb, (855) 023 216 167, ext. 277, mobile 012 707 457, Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Ker Munthit, (855) 023 216 167, ext. 130, mobile 011 905 261, Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it