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Poverty rate increases in Cambodia due to Covid-19

The poverty rate of the Cambodian population has increased from 13.5 percent in 2014 to 17.8 percent in 2019 and 2020, according to a senior official at the Ministry of Planning.

At the opening ceremony of the Workshop on Promoting the Implementation of the National Population Policy 2016-2030 at Siem Reap Provincial Hall yesterday, Toun Thavrak, Secretary of State of the Ministry of Planning, said that Cambodia’s poverty rate dropped significantly from 47 percent in 2007 to 22.9 percent in 2009 and fell to 13.5 percent in 2014, pushing the Kingdom to become a low-middle-income country in 2015.

“However, according to the Socio-Economic Survey data from 2019-2020, the poverty rate increased to 17.8 percent, which was largely due to the global Covid-19 pandemic. The Government has promoted the implementation of the National Population Policy 2016/2030 within the framework of the Sustainable Development Goals to be more effective by spreading awareness to all stakeholders about national policy plans and sustainable development goals,” he said.

Thavrak said, “The development of human capital is the most important factor in expanding the economic base and sectors that can help Cambodia increase its global competitiveness by focusing on investing in education and health. In addition, the education sector is a priority for the  Government  to develop human resources to respond to the restructuring of the economy with major sectors: agriculture, industry and services.”

Theng Pagnathun, Delegate of the Royal Government of Cambodia in charge of Director General of Planning, told Khmer Times, “Every 15 years, the poverty line procedure is revised once. The change in procedure is due to the improved economic growth in Cambodia. Previously, we set the procedure by limiting the energy to 2,200 calories and the other utility costs were low. But now, we set new procedures, keeping the 2,200-calorie limit, but spending on food and non-food (clothing, household consumption, etc). We increased the criteria and that is the main reason for an increase in the poverty rate.

He explained that in the Phnom Penh area, many people do not earn 10,000 riels per day, which means that they are below the poverty line.

“The Covid-19 had an impact leading to poverty. We considered all aspects based on technical considerations. First, we have data from social surveys on the number of poor families. Secondly, it is determined through poverty identification. Pre-Covid, our research found that there were only 500,000 households below the poverty line, but after the Covid-19 crisis, there was an increase of another 200,000 families.”

Source: https://www.khmertimeskh.com/501060205/poverty-rate-increases-in-cambodia-due-to-covid-19/