Cambodia: Progress and Challenges since 1991

19. Changing the Course of Cambodia through the Business of Empowering People

Changing the Course of Cambodia through the Business of Empowering People 281 281 19 CHANGING THE COURSE OF CAMBODIA THROUGH THE BUSINESS OF EMPOWERING PEOPLE1 Ing Kantha Phavi and Winta Ghebreab INTRODUCTION Human resource development is globally considered a key business process to enhance performance. Women’s empowerment is not always a crosscutting element of human resource development and this is a missed opportunity for government and business. Research shows that closing the gender gap in education and unleashing women’s economic potential, may well be the highest return investment available in the rich and developing world.2 As Cambodia is introducing new economic policies to boost sustainable growth, vast investment opportunities are becoming available to businesses. With an eye on both economic progress and development, this article discusses ways of doing business that are not only profitable but also bring equality and equity. POST- CONFLICT CAMBODIA Cambodia experienced almost three decades of conflict and instability between 1970 and 1998. During this period, Cambodia’s physical, human and social 19 Cambodia_Progress 3/6/12, 10:39 AM 281 282 Ing Kantha Phavi and Winta Ghebreab capital was devastated. Its infrastructure, including roads, electricity and irrigation systems, was destroyed. Cambodians suffered from poor health due to malnutrition and lack of health services, especially during the Khmer Rouge regime. The country’s intellectual class and educated people were either killed or forced to flee, while young Cambodians were unable to benefit from education. Gender inequality and gender based violence were prevalent in pre-war Cambodia; but the three decades of civil war seem to have increased violence.3 Cambodia has come a long way since the 1991 Paris Peace Agreement. The country has become politically stable and has initiated political, social and economic transformation. Since 1992 it has held four national and local multi-party elections. It is currently implementing its third five-year National Strategic Development Plan (NSDP). The NSDP is aligned with the United Nations Millennium Development Goals (MDGs) and the principles of good governance, pro-poor poverty reduction and gender equality. The government has initiated major reforms in order to deliver on these commitments, including public administration reforms, financial reforms, and a decentralisation and de-concentration process to enhance service delivery structures at all levels. Furthermore, the government introduced a free market economy and has integrated Cambodia into the world economy. For more than a decade, the government has generated high economic growth sustained over an extended period of time. Moreover, the income per capita has more than doubled over the period of 1997 to 2007, while low inflation and a stable exchange rate have been maintained.4 Key to economic growth has been foreign investment. Cambodia continues its successes in attracting investment for business as well as in mobilizing resources for development assistance. New investments coming from emerging markets and donors, such as Kuwait, China and South Korea, demonstrate this.5 The drivers of the economic growth have been construction; the export-oriented garment industry as well as the tourism industry. These sectors were seriously hit by the economic crises but have shown recovery since late 2009. The agricultural sector was more resilient to the crises and has shown steady increase in output. Years of high economic growth, development assistance and the Royal Government of Cambodia’s (RGC) commitment to improvement have combined to yield success. There is a significant reduction in overall poverty levels from 47 per cent in 1993, 30 per cent in 2007 and 26 per cent in 2010, showing a poverty reduction of 1 per cent per annum. Life expectancy rates for women and men6 have increased substantially and major improvements in health and education indicators have taken place.7 Positive changes are also visible in gender equality. There is greater awareness of women’s rights and 19 Cambodia_Progress 3/6/12, 10:39 AM 282 Changing the Course of Cambodia through the Business of Empowering People 283 the concept of gender equality. Since the early 1990s, the Ministry of Women’s Affairs has promoted gender mainstreaming of government policies and programs which have contributed to a wider awareness among the public and the incorporation of gender equality commitments in the government’s development plans and policies. Positive results are seen throughout Cambodian society, an example of which is the changing perceptions about violence against women. Compared to a 2005 baseline study, fewer respondents perceived violent acts as acceptable in 2009.8...