Communications in Humanities Research ISSN: 2753-7072
Home> Volumes> Volume CHR Vol.31> Article
Research Article

What Are the Challenges and Opportunities in to Improve Human Capital and Value Added in Cambodia's Garment Industry for the Purpose of Poverty Reduction?

Jiayi DingUnited World College of South East Asia*

* Corresponding author: [email protected]

Abstract

In pursuit of a comprehensive poverty reduction strategy for Cambodia, this paper begins with an analysis of the value ladder of Cambodia's garment industry. This paper argues for a shift from the bottom of the ladder, a labor-intensive economy, to more advanced sectors involving technology, design, and skilled labor as a potential catalyst for poverty reduction progress. Furthermore, this paper emphasizes that Cambodia's opportunity to lift its position from the value ladder hinges on the augmentation of human capital, primarily through strategic investments in education. Subsequently, the paper delves into the challenges confronting the Cambodian government in its efforts to address poverty. Drawing inspiration from the successful Conditional Cash Transfer (CCT) programs implemented in Mexico (Oportunidades) and Brazil (Bolsa Família) to tackle similar poverty-related challenges, this paper examines their outcomes. It evaluates their practicality within the Cambodian context as a policy recommendation.

Keywords: Poverty reduction; Cambodia; Garment industry; Education; Conditional Cash
Published: May 17, 2024
DOI: 10.54254/2753-7064/31/20232099
Volume: CHR Vol.31
pp. 187-192
Download PDF

References

  1. World Bank Group. “GDP per Capita (Current US$).” World Bank Open Data, data.worldbank.org/indicator/NY.GDP.PCAP.CD.
  2. World Bank Group. “The World Bank In Cambodia.” World Bank, 12 Aug. 2023, www.worldbank.org/en/country/cambodia/overview.
  3. Royal Government of Cambodia of the Sixth Legislature of the National Assembly. Rectangular Strategy Phase IV, Sept. 2018, www.khmersme.gov.kh/wp-content/uploads/2022/09/Rectangular-Strategy-Phase-IV.pdf.
  4. Council for Social DevelopmentCouncil for Social Development. “NATIONAL POVERTY REDUCTION STRATEGY 2003-2005.” International Monetary Fund, 20 Dec. 2002, www.imf.org/external/np/prsp/prsp.aspx.
  5. Supreme National Economic Council Ministry of Economy and Finance Council for Social Development. Cambodia: Poverty Reduction Strategy Paper Progress Report - IMF, Oct. 2004, www.imf.org/external/pubs/ft/scr/2004/cr04333.pdf.
  6. Pou Sothirak, etc" Cambodia's National Experience in Poverty Reduction." China-ASEAN Studies .04(2020):3-19. doi:CNKI:SUN:ZDME.0.2020-04-001.
  7. Royal Government of Cambodia of the Sixth Legislature of the National Assembly. “PENTAGONAL STRATEGY - PHASE I.” Ministry of Foreign Affairs and International Cooperation, Aug. 2023, mfaic.gov.kh/files/uploads/1XK1LW4MCTK9/EN%20PENTAGONAL%20STRATEGY%20-%20PHASE%20I.pdf.
  8. Report on the Cambodia Labour Force Survey 2019. [Phonm Penh]: National Institute of Statistics, 2021, Available: https://nis.gov.kh/nis/CLFS/CLFS19_Final_Full Report_EN.pdf.
  9. Shih, Stan. Rebuilding Acer: Creating Growth and Challenges. Commonwealth Publishing Group, 2004
  10. Stöllinger, Roman. “Testing the Smile Curve: Functional Specialisation and Value Creation in Gvcs - Structural Change and Economic Dynamics (Publication).” Wiiw.Ac.At, Feb. 2019, wiiw.ac.at/testing-the-smile-curve-functional-specialisation-and-value-creation-in-gvcs-structural-change-and-economic-dynamics-p-5019.html.
  11. Zheng Guofu . Current Situation, Opportunities and Challenges of Garment Export Trade Development in Cambodia [J]. Southeast Asian Studies ,2016(4):59-63
  12. You Hongxia." Investment Environment Analysis of Cambodia Garment Industry." Foreign Economic and Trade .09(2020):31-33.
  13. Acemoglu, Daron, and Simon Johnson. Power and Progress: Our Thousand-Year Struggle over Technology and Prosperity. PublicAffairs, 2023.
  14. Cambodia Socio-Economic Survey 2017, National Institute of Statistics of Cambodia, 2018, nis.gov.kh/nis/CSES/Final%20Report%20CSES%202017.pdf.
  15. Is Child Labor Inefficient?, Jean‐Marie Baland and James A. Robinson, Journal of Political Economy 2000 108:4, 663-679
  16. Andersen, Henny. "Multidimensional poverty analysis Cambodia." Consultancy report for the Swedish International Development Cooperation Agency (SIDA). SIDA, Phnom Penh (2019).
  17. World Bank Group. “How Should We Design Cash Transfer Programs?” World Bank Blogs, 6 Feb. 2020, blogs.worldbank.org/developmenttalk/how-should-we-design-cash-transfer-programs.
  18. Paul Glewwe, Ana Lucia Kassouf, The impact of the Bolsa Escola/Familia conditional cash transfer program on enrollment, dropout rates and grade promotion in Brazil, Journal of Development Economics, Volume 97, Issue 2, 2012, Pages 505-517, ISSN 0304-3878, https://doi.org/10.1016/j.jdeveco.2011.05.008.)
  19. Jere R. Behrman, Susan W. Parker and Petra E. Todd, Journal of Human Resources, January 2011, 46 (1) 93-122; DOI: https://doi.org/10.3368/jhr.46.1.93
  20. Soares, Fábio Veras, et al. “Evaluating the Impact of Brazil's Bolsa Família: Cash Transfer Programs in Comparative Perspective.” Latin American Research Review, vol. 45, no. 2, 2010, pp. 173–190., doi:10.1017/S0023879100009390.
  21. Paying for Better Parenting.” The New York Times, 17 Oct. 2006, www.nytimes.com/2006/10/17/opinion/paying-for-better-parenting.html.
  22. Schaffland, E. Conditional cash transfers in Brazil: Treatment evaluation of the “Bolsa Família” program on education. Courant Research Centre, 2012, discussion paper 84. Georg-August-Universität Göttingen.
  23. “Karamba, Wendy; Tong, Kimsun; Salcher, Isabelle. 2022. Cambodia Poverty Assessment: Toward a More Inclusive and Resilient Cambodia. © World Bank, Washington, DC. http://hdl.handle.net/10986/38344 License: CC BY 3.0 IGO.”