As the Kingdom prepares to graduate from Least Developed Country (LDC) status, the government is taking steps to ensure that the transition is seamless.
To this end, a November 11 policy dialogue titled “Towards Cambodia’s LDC Graduation: A Multi-Stakeholder Outlook for a Smooth and Durable Transition” was organised by the Ministry of Planning and the UNDP.
“The policy dialogue brought together senior government officials, development experts, private sector representatives and civil society to discuss from a multi-stakeholder perspective the socioeconomic implications of LDC graduation and the main requirements for a smooth and durable transition,” explained a joint statement by the planning ministry and the UNDP.
The release added that during the event, the two partners also launched the “Cambodia’s Graduation from Least Developed Country (LDC) Status: Preparedness and Potential Economic and Social Impacts” policy brief.
It noted that the brief assesses potential loss of international support measures, such as Trade-Related Aspects of Intellectual Property Rights (TRIPS) waivers under WTO rules, preferential market access and concessional financing, among others.
The brief warned that these losses could “affect public health, key trade exports (ex. garments, milled rice, and bicycles), and reduce the overall economic growth”, while adding that GDP growth may slow down between 0.5% to 1.5% with 165,000 potential job losses, particularly among women working in the garment sector.
As a result, it added 432,000 people are at risk of falling into poverty if the right foundations are not laid as early as possible.
“LDC graduation marks a significant achievement of the Kingdom's development journey, bringing not only challenges but also opportunities. This transitionwill also open new avenues for strong and resilient growth,” said Alissar Chaker, resident representative of UNDP Cambodia.
“LDC graduation is a collective effort that extends beyond trade, and that requires the engagement of all development partners and social actors to fully harness its opportunities and re-brand the country. The UNDP is committed to accompanying Cambodia during its transition through supporting the acceleration of human development, enhancing competitiveness and economic diversification, promoting green economy for resilient growth and transitioning from funding to financing, as outlined in the UNDP’s Country Programme Document (2024-2028),” she added.
Minister of Planning Bin Troachhey was also quoted in the joint release.
“To ensure that Cambodia's graduation from LDC status does not hinder socio-economic and environmental progress, the planning ministry, as the arm and secretariat of the Royal Government of Cambodia (RGC) responsible for coordinating and preparing Cambodia’s LDC graduation, will collaborate with all relevant ministries, institutions, the private sector, development partners and civil society to develop the Smooth Transition Strategy (STS) for implementation during post-graduation,” he said.
“This strategy will be aligned with the government's Pentagonal Strategy – Phase I and Vision which will focus on six key priorities: 1). Enhancing Human Capital; 2). Economic Diversification; 3). Expanding Trade Markets; 4). Attracting Foreign Investment; 5). Advancing Science, Technology, and Innovation; and 6). Strengthening Social Support Mechanisms,” added the minister.
Via the release, the UNDP reiterated its pride in supporting the ministry, which is working hand in hand with national and international partners to develop and implement a comprehensive smooth transition strategy.
Cambodia first met the requirements for LDC graduation in 2021 and again exceeded all three criteria (per capita income, the Human Assets Index, and the Economic and Environmental Vulnerability Index) during the 2024 triennial review.