Governance and Poverty: The Impact of Governance on Poverty Reduction Policy in Cambodia

Abstract

The objective of this research is to examine the impact of governance on poverty using the case of Cambodia, which focuses on poverty reduction policies and on the importance of governance issues in making them more effective. This will provide a general background for the presentation of some small examples taken from ongoing situation in Cambodia. This study exhibits relationship between governance and poverty elevation by using governance indicators produced by World Bank, WGI, to evaluate governance. Poverty rate trend and GDP per capita are used to compare the trend and relationship. Several characteristics of good governance can be seen in the Rectangular Strategy II such as responsive and transparent in decision making and project are concentrate on the local level and also increase equity and inclusiveness in the strategy.

Noticeably, the implementation of administrative decentralization at the communal level raises great challenges in terms of good governance. Through this explanation and exploration, the research will clarify the appearance of good governance in the efficient-policy making. This study finds that the economic development is the most important factor for reduction of poverty. It accords with the other finding of economic growth reduces poverty and that it needs at least stable governance to produce economic growth and reduce poverty.

The experience shows key factors for reducing poverty in Cambodia is by improving three important factors of economics such as garments and foot wares, service and tourism, and production of agriculture, these achievement is through the government role to produce and implement policies such as Cambodian Millennium Development Goals, National Strategic Development Plan, and the most important policy is the Rectangular Strategy that focus on people poverty reduction through economic and social development. To eliminate poverty governance is important and must goes with growth, the strong and committed leadership, policies, and institutions are needed, without strengthening governance pro-poor policy cannot be achieved, and as commit by Cambodian Prime Minister (2008) that The new Royal Government of Cambodia, created by the free will of our people, resumes its duties in the fourth legislature with renewed dynamism and commitment to building' and developing our country. I would like to propose to our first cabinet meeting, compatriots, development partners, public and private sectors, and civil society organizations, that we will continue to implement the " Rectangular Strategy for growth, employment, equity and efficiency -- Rectangular Strategy Phase II which is the "Socioeconomic Policy Agenda" of the "Political Platform of the Royal Government of the fourth legislature of the National Assembly".