Cambodia: Fiscal Policies Can Further Boost Sustainable Development

Cambodia: Fiscal Policies Can Further Boost Sustainable Development

Cambodia continues to rank among the fastest growing economies in Southeast Asia and has made significant progress toward meeting its development goals. To underpin further progress, the country would need to channel additional spending into priority sectors like education, health, and physical infrastructure in the context of a sustainable financing plan.

Efforts would need to continue to improve spending efficiency, public investment management practices, and coordination across government units. Support from development partners and involvement of the private sector are also essential.

Cambodia’s economic growth remains strong at 7 percent and the country continues to advance its development agenda, according to the IMF’s latest economic assessment.

Public investment and private sector involvement resulted in improved access to and quality of physical infrastructure, such as electricity and roads. Public spending on health and education also increased, which led to improved quality and access. As a result, for example, the enrollment rate in primary education has reached almost 100 percent.

Cambodia continues to prioritize the Sustainable Development Goals (SDGs) by mapping them (along with one additional goal related to de-mining) into the country’s national policy priorities. The new government’s strategy reflects Cambodia’s SDG framework and is the basis for the National Strategic Development Plan .

Still, the country’s ambitious development plans will require further policy efforts on many fronts. Despite recent progress, Cambodia lags behind its regional peers in terms of access to and quality of social services and physical infrastructure.