Poverty reduction strategy in Cambodia needs improvement - ADB

from The FX Street

MUMBAI (Thomson Financial) - The Asian Development Bank (ADB) said its five-year strategy to help reduce poverty in Cambodia remains relevant but needs improvements to enhance its effectiveness, according to a midterm program review.

"Persistent high levels of rural poverty have implications for the program's strategic thrust," Arjun Goswami, country director of ADB's Cambodia Resident Mission said in a special report.

ADB's assistance for the remainder of the plan period should increasingly have an agricultural and rural focus, including rural development projects, fostering rural infrastructure, enhancing access to credit, and decentralized registration of businesses in rural areas, he explained.

The initiative also needs to place emphasis on private sector-led growth, and in accordance with this, ADB's participation in the private sector will be intensified to translate public policy advances into sustainable investment in the economy, the report said.

The ADB's overall portfolio performance in Cambodia has been below expectations during the review period, as the number of projects at risk has increased and the disbursement level remains below projections.

To address the overall decline in portfolio performance, intensive project administration follow-up will be undertaken through a joint country portfolio performance review, sector policy reforms and recommendations on cost sharing of eligible expenditures, the ADB said.