Staying Committed to Reduce Poverty in Cambodia

I would like to begin my column with my thoughts about the family of asylum seekers deported to Vietnam earlier this week.  This is the latest in a rising number of reports about people seeking refugee or asylum status in Cambodia.  As these stories gain both domestic and international attention, many are watching to see how their plight will be resolved.  Hopefully, these solutions will be developed according to the best interests of the Cambodian people.

As you may know, I enjoy taking trips throughout the country to engage with others and learn more about the interests and experiences of the average Cambodian.  On a recent trip to Siem Reap, I spoke to a number of college students about a variety of topics, including recent economic improvements in Cambodia.  I also spoke about the need to stay focused on improving the level of income and reducing the amount of poverty for all citizens.  During the question and answer session after my presentation, one of the students asked, “Do you have any evidence of poverty in Cambodia?”  I admit that I was somewhat surprised by his inquiry, and it made me wonder if other Cambodians realize even with the progress in Cambodia’s economy that extreme poverty still exists.  I answered his question that day, but my desire to expand on that response serves as inspiration for my column this week.

Reflecting on his question, I thought about how people approach the complex issues of economic growth and poverty.   By many measures, there is data which shows that the Cambodian economy is improving and poverty index levels have declined in the past two decades.  Bolstered by a strengthening global economy and renewed confidence after the end of the political impasse, Cambodia’s GDP has risen to over $15 billion and the economic growth rate for 2015 is expected to reach 7.5 percent.   But these figures don’t often tell the whole story – that  economic gains for some do not equate to economic gains for all, and that income inequality remains a challenge. This is an issue President Obama has raised as concern in the United States as well, and in many other countries. The harsh realities of daily life of many citizens show that there is still much to be done.  For example, I recently traveled to a rural province and met an American teacher who told me about a substantial number of Cambodian men migrating to Thailand for jobs with a minimum wage of $10 a day.  Many of them – especially those with wives and children to care for – see migration as a better option compared to living in poverty; planting and harvesting rice for $2.50 a day or working in a roadside shop for even less money.  

While Cambodia has developed in many aspects in the past few decades, a significant amount of poverty still exists.  Evidence of poverty can be found among the approximately four million Cambodians living on less than $1.25 per day and 37 percent of Cambodian children less than five years old suffering from chronic malnutrition.  While many point to increased income levels in Cambodia, sources like the UN Human Development Report’s Multidimensional Poverty Index show that individuals living above the income poverty line still suffer from deprivations in education, health and other living conditions.  Nearly half the population barely lives above the poverty level and remains vulnerable to possible declines in the economy.      

While reading the blogs and columns of several NGOs in my first few months as U.S. Ambassador, I learned that when Cambodians first met during the day they would ask, “Have you had rice today?”  Thankfully, we hear that expression less today.  While anecdotal, I believe that this indicates that combating poverty is an area that is improving compared to the past.  Additional indicators help support this assessment.  Earlier this week, I attended the inaugural World Conference on Tourism held in Siem Reap, which among other things highlighted the valuable role that tourism has played in poverty reduction in Cambodia.  There has also been increased investment, trade, and business development in Cambodia, providing jobs and opportunity for many.  I commend the efforts of the Ministry of Tourism and the Ministry of Commerce in helping to reduce poverty in the country, but the truth is that Cambodia still has a long way to go in terms of eliminating poverty.   

Extreme poverty is a highly complex problem to solve.  It requires investing in education, creating jobs and economic opportunities, and time.  A greater amount of investment is needed in both education and job creation for all members of society – from low-skill, low pay employees to high-skill, high-pay employees.  As I have said before, by promoting and investing in education – which will create opportunity– Cambodia will have a competitive edge, particularly as economic growth in ASEAN continues at its rapid pace.  Investing in education and creating opportunity are investments for future generations of Cambodians.Also, there has been much discussion on the type of reforms for Cambodia since political resolution last year, including in the electoral process.  In addition to electoral reform, I hope that there will be more attention given to economic reform that reduces poverty and benefits all Cambodians as well.  To maximize the benefits of economic growth, the Royal Government will have to strengthen its efforts and continue working with the private sector and its partners to maintain and develop programs that effectively reduce poverty.

The international donor community has been criticized in the past for not doing enough to combat poverty. We can all do better on this front.  One of our overarching goals at the U.S. Embassy is to improve the lives of Cambodians, including programs in health and nutrition. The U.S. government has worked with the both government and civil society groups to develop and implement programs that take a comprehensive approach to reducing extreme poverty in Cambodia.  Recognizing the link between poverty and limited access to health care, we worked with the Cambodian Ministry of Health and other partners to develop the Health Equity Fund (HEF), an insurance program that currently provides 3.1 million Cambodians with free access to public health services.  We have assisted in creating a school feeding program that has provided nutritional meals to thousands of Cambodian children, helping to boost school enrollment and academic performance by giving parents an incentive to keep their children in school.  Through our partnerships, more than 32,000 Cambodian farmers and other producers have applied new technologies and management practices, earning more than $7.6 million in 2013.  There is still much more work to be done, but the United States remains committed to helping Cambodia eradicate extreme poverty and hunger to achieve its UN Millennium Development Goal targets for 2015.

Benjamin Franklin once said, “The best way of doing good for the poor is not making them easy in poverty, but leading or driving them out of it.”  I encourage Cambodia’s leaders to allocate sufficient resources to address poverty reduction and do more to invest in education, opening the path to more opportunity and prosperity for all Cambodians.  However, the complete eradication of poverty in Cambodia requires more than just government action.  The international community – including the United States – needs to give more attention and assistance in this issue.  We must all do our part to ensure that no one has to live without their basic needs being met.  Working together, we can reduce poverty and improve the quality of life by encouraging social responsibility, strengthening partnerships, and providing better economic and educational opportunities for all Cambodians.

I would like to thank you for reading my column each week.  I invite you to send me your questions in English or Khmer at AskAMBToddPP@state.gov and follow my blog at http://blogs.usembassy.gov/todd/.

William E. Todd is U.S. Ambassador to the Kingdom of Cambodia.