Rural Development For Cambodia

Cambodia's economic performance over the past decade has been impressive, and poverty reduction has made significant progress. In the 2000s, the contribution of agriculture and agro-industry to overall economic growth has come largely through the accumulation of factors of production---land and labor---as part of an extensive growth of activity, with productivity modestly improving from very low levels. Despite these generally positive signs, there is justifiable concern about Cambodia's ability to seize the opportunities presented. The concern is that the existing set of structural and institutional constraints, unless addressed by appropriate interventions and policies, will slow down economic growth and poverty reduction. These constraints include (i) an insecurity in land tenure, which inhibits investment in productive activities; (ii) low productivity in land and human capital; (iii) a business-enabling environment that is not conducive to formalized investment; (iv) underdeveloped rural roads and irrigation infrastructure; (v) a finance sector that is unable to mobilize significant funds for agricultural and rural development; and (vi) the critical need to strengthen public expenditure management to optimize scarce resources for effective delivery of rural services.

This publication presents an assessment of Cambodia’s agriculture, natural resources, and rural development (ANRRD) sector and provides a strategy and road map for its future development. It identifies the strategic investment priorities of the Government of Cambodia where the Asian Development Bank (ADB) can contribute to ANRRD productivity, value addition, and resource efficiency. ADB support will focus on three key areas: (i) enhancing agricultural productivity through a whole-of-system water resources management approach, (ii) strengthening agricultural value chains, and (iii) improving natural resources management and disaster resilience.

The case study explores which skills and training opportunities young people need in order to gain access to decent employment in rural areas. The research was undertaken in order to develop recommendations to support the Ministry of Agriculture, Forestry and Fisheries (MAFF) and FAO Cambodia in developing appropriate recommendations to support rural young people, especially those of the 15 to 17 age cohort. The study highlights the limited decent employment opportunities that currently exist along various agricultural value chains in rural Cambodia. Poverty and the structural problems of the agricultural sector are the main barriers for youth in accessing decent rural employment. A substantial enhancement of the education system, as well as the provision of appropriate training services to ensure successful schoolto-work transition is seen as necessary to tackle these challenges. A well-balanced policy mix reflecting national and local circumstances can encourage employment opportunities and create an environment that enables rural youth. Building on previous research on agriculture in Cambodia, agricultural transformation requires promotion of agribusiness enterprises, support to community-managed organizations of farmers, promotion of agropreneurs, and investments in agricultural and rural development, particularly in infrastructure, energy, water, education and health. Moreover, most youth entering agriculture are self-employed and work as smallscale farmers. Therefore, the provision of skills and training in rural areas should focus on the skills required to be self-employed.