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Cambodia needs to embrace advance planning

Cambodia needs to embrace advance planning


Cambodia recently made the transition from a low income to a lower middle-income country, according to the World Bank’s rankings.

This is good news, but it may be time for Cambodia to rethink its model of export-driven economic growth, as preferential access for its exports to developed countries is gradually reduced or as aid flows diminish.

While Cambodia still has least developed country, or LDC, status as defined by the United Nations and will likely retain its trade privileges for a while yet, it will likely transition out of LDC status by about 2030 if it maintains current growth rates. With adequate advance planning, Cambodia can avoid being a victim of its own success when it does so.