Cambodia

Cambodia has had numerous scholarship programs funded by the government and outside donors. A government program supported by the World Bank's Cambodia Education Sector... Show More + Support Project was launched to test the optimal scholarship amount and measure the effect on both boys and girls. The program targeted 100 lower secondary (middle) schools that were not participating in other scholarship programs, focusing on those in poor areas and where non-enrollment was high. The scholarships had a substantial effect on student enrollment and attendance in 7th and 8th grades. More girls than boys received grants because they ranked higher for the risk of dropping out. The Cambodia study shows that scholarships can be an effective tool for encouraging students to stay in school after completing primary school-even in a low income setting. Boys and girls can benefit equally and that encouraging greater school attendance does not mean that the student's siblings will be expected by their families to make up the lost household or outside work time. Success depends on finding the optimal way to support children who might otherwise drop-out, both in terms of encouraging enrollment and ensuring that once in school, they can learn. Show Less -

Firms have various ways to cope with external risks. This paper analyzes the risk coping behavior that entails the smoothing of inputs (labor, raw materials, or capital).... Show More + The theoretical framework shows that, if they face adjustment costs, firms prefer to smooth their inputs, especially if they expect a demand shock to be temporary. However, credit constrained firms will be adversely affected by the presence of liquidity constraints, and this will create a welfare loss due to incomplete smoothing. The authors estimate this behavior using a panel of Cambodian firms at the time of the 2008 global economic crisis. The survey shows that these firms were hard hit by the economic crisis between 2008 and 2009, with an average fall in demand (sales) of 30 percent. Based on the theoretical framework, the analysis can estimate the responsiveness of labor, capital, and raw materials input demand to demand shocks. It finds that firms try to smooth in particular if they believe the shock is temporary; in fact non-credit constrained firms reduce their inputs much less than firms that were credit constrained when the demand shock is expected to be temporary. The paper estimates that the welfare loss from incomplete smoothing due to credit constraints is many multiples of the adjustment costs of the firms that were not credit constrained. This has important policy implications about the role of financial sector development and regulations beyond the capital market. This micro analysis also has macro implications: if all firms expect a shock to be permanent, their combined limited smoothing of inputs will indeed make the shock more likely to be permanent. Show Less -

In 2000 the PPIAF provided support to the Government of Cambodia to prepare a Country Framework Report (CFR) to fill the vacuum of information available on infrastructure... Show More + and assist the country-including government and civil society-to reach a consensus on the role for private participation in infrastructure. The objective of the CFR was to facilitate private sector involvement in Cambodia's infrastructure by providing: 1) a comprehensive survey of Cambodia's infrastructure endowment, performance, and investment plans; 2) a review of Cambodia's policy, regulatory, and institutional environment relevant to private sector involvement in infrastructure, and identifying measures to improve the regulatory framework; and 3) a vehicle for the government to articulate a comprehensive action program for expanding private sector involvement in infrastructure, developed in consultation with relevant stakeholders and potential investors in infrastructure. The PPIAF-funded study analyzed eight water facilities (four public and four private) by comparing consumer satisfaction and technical performance of the utilities using quantitative and qualitative data from a range of surveys and technical assessments. The study concluded that the commercial incentive for improved performance would be stronger if the privatization option used a lease or concession arrangement rather than a service or a management contract, as the operator would have access to the revenue stream over a number of years. Show Less -

The end of the Multi-fiber Arrangement/Agreement on Textiles and Clothing in 2005 was a major policy change that affected the allocation of global apparel productions... Show More + well as the lives of workers involved in this sector. Since the apparel industry is often the major female employer in developing countries, this policy change was expected to have major implications for women. This paper analyzes the wages and working conditions of women in the apparel sector in Cambodia and Sri Lanka following the phase-out the Multi-fibre Arrangement. In both countries, apparel is a major source of exports, and women constitute 70 to 80 percent of the workers employed in the apparel industry. The paper finds that after the removal of the Multi-fibre Arrangement, apparel prices declined as a result of the increased competition. The theoretical model suggests that a decrease in prices would lead to a decrease in apparel wage premiums relative to other industries in the short run and the widening of the male-female wage gap in the long run. The empirical findings support these theoretical predictions. Wage premiums in the apparel sector relative to other industries went down post-Multi-fibre Arrangement in Cambodia and Sri Lanka and the male-female wage gap increased. The paper finds mixed results in terms of working conditions in Cambodia and Sri Lanka. Show Less -

This document presents the findings of a study on sanitation finance in Cambodia conducted for the Water and Sanitation Program (WSP) with support from the Asian Development... Show More + Bank (ADB). The overall objective of the assignment was to consider sustainable sanitation financing options with a focus on promoting access for the poorest. This guidance note contains an introduction on sanitation financing and subsidies, stating the cases for subsidies as well as some of their practical pitfalls. The study used data (as of late 2009) from two case studies of rural sanitation finance in Cambodia to illustrate the practical issues, sup-plemented by preliminary data from two sanitation marketing projects. The study also examined the potential use and effectiveness of (hardware) subsidies, conditional cash transfers (CCTs), and other financing approaches relevant for sanitation improvement. The document ends with recommendations for improved sanitation finance, including practical suggestions for sanitation programs in Cambodia. These recommendations bear particular relevance for the ADB's Second Rural Water Supply and Sanitation Sector Project, which commenced in 2010. Show Less -

This report describes the pilot trial introduction of efficient cookstoves into rural Cambodia, and the strategy for a National Efficient Cookstove Program for rural... Show More + Cambodia. The Neang Konrey Stove (NKS) saves fuel, and is durable, but there were some size, cost, and quality problems. To address the problems found during the pilot dissemination, the Bank provided technical assistance to develop a model production facility for the efficient NKS. The facility includes mechanized clay mixing, improved moulding techniques, and kiln firing. The aim is to increase the production capacity of the NKS, and produce a high quality stove, pay fair wages for stove producers who are mainly women, and to keep the cost of the stove low to ensure it is accessible to all households including the poor. The report provides detailed renderings of the stove, and the manufacturing process. A plan is under preparation to meet the production required for the estimated market demand for broad scale introduction of the NKS Stove in rural areas. Show Less -

Cambodia has made substantial progress in economic reconstruction since the 1993 elections helped return peace to the war ravaged country. The report is organized as:... Show More + the remainder of chapter one presents the strategic background, including macroeconomic and fiscal developments. The chapter concludes with options for restoring and expanding the government's fiscal space. Chapter two discusses the level and composition of public spending. Chapters three, four and five discuss the level, composition and effectiveness of government spending on agriculture, health, and education, respectively. The analysis suggests that government spending in these areas is lower relative to Gross Domestic Product (GDP) than in countries with similar levels of income per capita. Chapter six discusses Cambodia's progress and challenges in reforming public expenditure policy and public finances. The chapter underscores the key areas where additional attention is needed to help advance the reform agenda. Show Less -

This paper discusses the progress made by Cambodia from the early 90s to 2007, in reduction of poverty incidence. Reduced poverty occurred in both urban and rural areas,... Show More + and was experienced by rich and poor, and by men and women. Households, including those in the poorest groups, have improved their housing quality, increased ownership of motorbikes, televisions, and mobile phones, and are better able to access and afford schools and healthcare. However, the study warns about complacency, because poverty is still pervasive in the rural areas, and a multi-dimensional approach is needed to tackle it. The gap in income and opportunities remains wide between the rich and the poor, the urban and rural regions and more importantly, within the rural areas themselves. The report concludes that it is clear that Cambodia has made substantial improvements in the information systems available to guide public policy. The next step is to improve coordination among the information sources and develop a national information system that allows for the combined use of information and the setting of priorities based on an assessment of needs and existing gaps in the country. To address these problems, an evaluation of the quality, relevance and use of information produced in Cambodia is necessary in order to establish standards and identify areas of improvement. Show Less -

In this issue: irrigating Sla: commune investment makes a mark; decentralization process has feet firmly on ground; World Bank supports rural investment and local governance;... Show More + and H.E. Leng Vy: Rural Investment and Local Governance Project (RILGP) benefits both citizens and local administrations. Show Less -

The global food prices have risen sharply since July 2010 to a level that already slightly surpassed the 2008 peak. The new peak has been primarily driven by sharp rises... Show More + in prices of wheat and maize. Prices of rice have had a modest increase. Despite on-going concerns over soaring in global food prices, food prices in Cambodia have remained largely stable thanks in part to good harvest of rice and moderate demands from neighboring Vietnam and Thailand. Moreover, the situation for this year is different from that of 2008. The author saw domestic overheating is a factor that adds to raising prices of oil and food in 2008, but, at the moment this is not the case. In the medium term, one of the key issues for Cambodia competes for a share in international market is strengthen the capacity of rice millers and traders to be able to deliver large contracts. As a new entrant to global rice market, Cambodia has not been able to reach any Government-to-Government contracts, largely due to logistical difficulties and inability to deliver a required quantity and quality of milled rice. But, like nature of any business, importing countries always look for an alternative source of supply who can give a better deal. By then, local rice millers and traders must be ready for delivery. Show Less -