In many ways, Cambodia is Asia’s true miracle economy. It was only three decades ago when the Paris Peace Agreements were signed, ending the civil war that ensued following the ouster of the genocidal Khmer Rouge regime in 1979. In just over a generation, Cambodia has built up its economy and institutions almost from scratch, and transformed itself into a modern, thriving economy. Although many challenges remain, these achievements should be recognised and bode well for the future.
Despite its tragic history, Cambodia has great aspirations. It aims to become an upper-middle-income country by 2030 and a high-income country by 2050. To realise these aspirations, Cambodia has to pursue inclusive growth that is also sustainable and resilient. This type of growth should generate decent and sustainable jobs in the manufacturing and services sectors, and fair and sustainable returns for the self-employed, either in agriculture or in the micro, small and medium enterprises (MSMEs) across sectors, formal or informal. To do this, it has to address a number of constraints.
