PHNOM PENH: As part of the Royal Government’s preparedness efforts for Cambodia’s graduation from the Least Developed Country (LDC) status, the Ministry of Planning and the United Nations Development Programme (UNDP) organized a Policy Dialogue titled ‘Towards Cambodia’s LDC Graduation: A Multi-Stakeholder Outlook for a Smooth and Durable Transition’ in Phnom Penh. The event aimed to gather insights from senior government officials, development experts, private sector representatives, and civil society on the socioeconomic implications and necessary steps for a smooth and durable transition.

According to Agence Kampuchea Presse, the policy dialogue also marked the launch of a policy brief titled ‘Cambodia’s Graduation from Least Developed Country (LDC) Status: Preparedness and Potential Economic and Social Impacts.’ The brief assesses potential challenges such as the loss of international support measures, including TRIPS waivers under WTO rules, preferential market access, and concessional financing. These
changes could impact public health, key trade exports like garments, milled rice, and bicycles, and potentially slow GDP growth by 0.5 to 1.5 percent. Additionally, the brief warns of possible job losses affecting 165,000 individuals, particularly women in the garment sector, and puts 432,000 people at risk of falling into poverty.

Ms. Alissar Chaker, Resident Representative of UNDP Cambodia, emphasized the importance of collective effort in navigating the transition. She noted that while LDC graduation presents challenges, it also offers opportunities for strong and resilient growth. UNDP is committed to supporting Cambodia by accelerating human development, enhancing competitiveness and economic diversification, promoting a green economy, and transitioning from funding to financing as outlined in their Country Programme Document for 2024-2028.

H.E. Bin Troachhey, Minister of Planning, highlighted the importance of ensuring that Cambodia’s graduation does not hinder socio-economic and environmental progres
s. The Ministry of Planning will collaborate with relevant stakeholders to develop a Smooth Transition Strategy (STS) aligned with the Royal Government’s Pentagonal Strategy – Phase I and Vision. This strategy will focus on six key priorities: enhancing human capital, economic diversification, expanding trade markets, attracting foreign investment, advancing science, technology, and innovation, and strengthening social support mechanisms.

UNDP expressed its commitment to supporting the Ministry of Planning in coordinating a smooth and sustainable transition from LDC status, in collaboration with national and international partners. The Least Developed Countries category, established by the United Nations General Assembly in 1971, currently includes forty-five nations, with some set to graduate soon, based on criteria such as per capita income, the Human Assets Index, and the Economic and Environmental Vulnerability Index.