As Cambodia prepares for its graduation from Least Developed Country (LDC) status in 2029, opinions remain divided on the nation's readiness, with critical discussions unfolding on social media.

The UN Committee for Development Policy (CDP) evaluated Cambodia in 2021 and 2024, confirming that the country had met the requirements to graduate from LDC status by 2027. These benchmarks include gross national income (GNI) per capita, the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI).

In its March 2024 evaluation, CDP noted that the country’s GNI per capita had reached $1,590, surpassing the threshold of $1,306. The committee praised Cambodia for effectively utilising international support mechanisms to boost exports and economic growth, driving an increase in its annual GNI.

Regarding the HAI, Cambodia achieved a level of 77.8, above the necessary threshold of 66 for graduation. This index evaluates factors such as education, health, child mortality, maternal mortality and school enrolment, all of which contribute to the country's development and resilience.

Cambodia also meets the EVI requirement, with a score of 24.1, below the vulnerability threshold of 32. The CDP highlighted Cambodia's efforts in market diversification and resilience-building against environmental risks like floods and droughts, supported by investments in disaster preparedness and infrastructure.

However, the country’s graduation has been delayed from 2027 to 2029 to give the country time to address post-graduation challenges.

During a ceremony marking the 20th anniversary of Cambodia's membership in the World Trade Organization (WTO) on October 14, Prime Minister Hun Manet emphasised the importance of LDC graduation despite the loss of some preferential treatments.

“Are we to remain dependent for life? Should we continue relying on preferential treatments, or should we depend on ourselves? The answer is clear – it is the second option. We must strengthen our independence and self-reliance by graduating from LDC status to further enhance our development,” he stated.

Manet's comments were reported by some media outlets as indicating that Cambodia might exit LDC status by 2026, sparking online debates. Many social media users expressed concern that this could lead to worsening economic conditions, saying that they would become even poorer.

Hong Vanak, an economic researcher at the Royal Academy of Cambodia, explained that the country’s graduation from LDC is not arbitrary but a milestone pursued by all nations.

He emphasised that this achievement is a collective honour for Cambodia, signaling that the economy is resilient and that its people are developed enough to be recognised as more modern and respected by neighbouring nations.

He added that the graduation would elevate the country’s political standing and create more favourable conditions for investment.

"When we travel, we will no longer be looked down upon. We will be seen as a modern, civilised population with respectable income levels, like a family capable of living comfortably,” Vanak added.

He said that despite the advantages, the country’s graduation also presents challenges, including the potential loss of preferential trade agreements, reduced foreign aid and the end of concessional loans with low-interest rates.

He recommended that the government should start decreasing its dependence on loans from 2025 to mitigate the impact of these changes.

Vanak urged the public to gain a clearer understanding of what graduation means to avoid any misconceptions that could hinder the nation's progress. He pointed out that this decision was not solely made by Cambodia but was based on assessments from multiple international organisations.

“Looking ahead, we must accept this new reality and work hard. The government must focus on strengthening key sectors as the foundation for Cambodia’s development, ensuring the economy’s long-term resilience,” he said.

However, Yong Kim Eng, president of the People Center for Development and Peace (PDP-Centre), voiced doubts over the country’s ability to meet the 2029 graduation target, citing the disparity between GNI per capita figures and the actual living conditions of the population.

He argued that these evaluations are based on an average wealth calculation, which divides the nation's total wealth by the total population, while in reality, the actual wealth remains in the hands of the affluent few.

“What we see is that the wealth isn't the people's – it belongs to the tycoons, to the rich. This is what I observe,” he said.

He suggested that the government should reconsider the potential impacts of the graduation and might even consider further delaying it to give the country more time to recover from the Covid-19 pandemic and other global challenges.