Develop Sustainable Finance
While middle income countries status opens up opportunities to finance development requirements, the transition needs to be managed. Official development assistance (ODA) which finances up to 20 per cent of the budget will shift from grants to mainly loans. MIC status could affect Cambodia’s preferential access to key markets, Foreign Direct Investment (FDI) and hence employment. Climate change financing will be a significant source of non-traditional development assistance.
UNDP focuses on the policy and capacity development assistance needed to maximize available ODA grants, while building national capacity to increasingly finance the development requirements from domestic sources, FDIs and non-traditional development assistance.