Cambodia is ranked as one of the poorest developing nations in the world in terms of income and human poverty. Poverty has multiple dimensions and is predominantly a rural phenomenon in Cambodia. According to the World Bank (2006), poverty in Cambodia was reduced from 47% in 1993 to 35% in 2005.
Over more than a decade, Cambodia has consolidated peace. Its GDP is expected to grow with 10.8% in 2008, compared to 9.6% in 2007. Non-income indicators such as ownership of consumer durables, housing quality and schooling indicate that living standards of the population, including the poor, have improved. The HDI rank is 130 and Cambodia is considered as a medium income country with a GDP of US$ 1,860 per capita.
Although all segments of society benefited over the last decade, the rise in living standards has been more pronounced in urban areas while social and gender inequality became more articulated. Poverty rates are highest in remote rural areas with limited access to roads, markets and basic services. Access to land and land management is one of the most crucial factors hindering poverty reduction in the rural areas followed by lack of transparency and good governance.
Poverty alleviation in Cambodia is addressed through three leading documents: the National Strategic Development Plan (NSDP) 2006-2010, the National Poverty Reduction Strategy and the National Program for Household Food Security and Poverty Reduction 2007-2011. The NSDP has six key policy commitments within which SNV operates:
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Good governance
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Environment for the implementation of the Rectangular Strategy
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Enhancement of the agriculture sector
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Continued rehabilitation and construction of physical infrastructure
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Private sector growth and employment
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Capacity building and human resource development.