Why has Cambodia Remained So Poor Essay - 570 Words

Introduction Cambodia is located in the South East Asia region, bordered by Thailand, Laos, Vietnam and the Gulf of Thailand. Currently it ranks 138 on the UNDP data set, in terms of Human Development, with a Human Development Index (HDI) of 0.543 as of 2012. According to World Bank data, around 20.5% of Cambodians live below the national poverty line, implying that at least one in five Cambodians live in destitution. The majority of the poor hail from the rural regions lacking the necessary resources to meet even their daily needs. Cambodia’s prolonged history of violence is one of the chief factors contributing to the current situation, notably, the Khmer Rouge regime, and the period of Vietnamese Communist occupation from 1980-1989.†¦show more content†¦Collier points out a variety of factors that cause this dilemma (Collier 2007, p. 38). Natural resources generate revenue, which means that governments do not have to tax its citizens, consequently reducing their financial accou ntability or fiscal responsibility. The preponderance of valuable natural resources can lead to over exploitation and result in the ‘Dutch disease’ (Collier 2007, p. 39), where a countrys other industries become less competitive as a result of currency valuation due to the revenue raised from the resource. The rush of investment in one sector sucks attention, capital, and skills from all other parts of the economy, causing the economy to become heavily one-sided. As revenues often end up in the foreign bank accounts of the elite, it is rare profits from natural resources to reach the people. The Landlocked with Bad Neighbours Trap, as Collier explains, surrounds the fact that countries with coastlines trade with the world, while landlocked countries trade mainly with their neighbours. Thus, landlocked countries are constrained by their infrastructural connection to their neighbour, and have a limited market for their goods (Collier 2007, p. 55). Bad Governance in a Small Country is the last of the developmental traps identified by Collier, characterized by bad policies and endemic corruption. Collier believes that poor governance and corruption persist because there is noShow MoreRelatedThe Consequences Of The Vietnam War And The Pol Plot Genocide2659 Words   |  11 PagesOver last few decades Cambodia has faced the consequences of the Vietnam War and the Pol Plot genocide, which left the country economically despaired and nearly half of the population under twenty years old. Cambodia however attracts many visitors from across the world for its rich culture, fascinating temples and picturesque beaches. Unfortunately, Cambodia is also known for sexual tourism and in particular child sex tourism. 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