Situational Analysis and Strategy
Whilst there has not (as yet) been a substantial outbreak of Covid-19 in Cambodia, as critical, has been the impact of the global pandemic on Cambodia’s economy. The country is facing a steep economic downturn, and severe social dislocations, as livelihoods fall, and poverty rises. Key socio-economic drivers are the external demand shocks faced by Cambodia’s leading sectors, that have faced substantial declines, particularly in the textile, tourism and construction sectors.
Cambodia’s vulnerability is accentuated by its narrowly based and highly open economy; its skewed income distribution, where a large proportion of households subsist just above the poverty line; and the minimal level of social safety net coverage. There are also wider challenges – health risks to the population given the fragility of the healthcare system, as well as social tensions on account of misinformation and stigmatization arising from the outbreak of Covid-19 in-country.
In addition to the health response, national priorities on the economic front focus on stimulus measures as well as supporting affected and vulnerable groups (women-headed households, persons with disability, those living with HIV/AIDS, informal workers, etc.). These priorities have been informed by UNDP’s macro-economic modelling. UNDP is delivering an iterative and multi-dimensional package of support in response to the evolving situation, whilst contributing to laying a foundation for mid- to long-term recovery that helps build back better.
Areas of Interventions