Support to the National Response to contain the impact of COVID-19

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

BUDGET

 

UNDP has dedicated its core resources of USD 1.15 million in support of the Royal Government of Cambodia’s and UN system’s response. The World Bank has provided USD 8,876,000 for procurements in support of the health system.  

 

Output

Available Budget USD

Gap USD

Total USD

Economic stimulus

100,000

423,775

523,775

Emergency social protection

550,000

1,283,237

1,833,237

E-commerce

330,000

1,324,328

1,654,328

Circular economy

100,000

100,000

200,000

Countering misinformation

70,000

-

70,000

Health system support

8,876,754

TBC

8,876,754

TOTAL

10,026,754

3,131,340

13,158,094

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