Our strategy in Cambodia targets improvement to the country’s business and investment climates, support for diversified and export-led growth, and greater participation from the emerging private sector. By improving services to enterprises, including the development of ethical businesses and standards, we will help the country’s economy withstand the repercussions of the recent global economic downturn, and underscore the ability to increase productivity by improving labor and management relations.
At the same time, we will continue to support improvement of the business regulatory environment at both the national and provincial levels, and to build capacity in new and strategic sectors. Our recent efforts include helping to develop agribusiness supply chains for fruits and vegetables, expanding mobile phone banking services directly targeting poorer people and underserved, rural markets, and developing alternative mechanisms to the courts for quicker and less costly solutions to commercial disputes. Our projects also contributed to the country’s significant improvement in the WB 2009 Doing Business report rankings, with important reforms in access to finance, trade, and bankruptcy legislation.
Our core products take into account changing market demand and Cambodia’s development progress. They are:
Improving the investment climate (IC): Current projects include measuring key business indicators across provinces in order to identify areas for business reform, advising the government on the feasibility of installing a National Arbitration Center, promoting standardized Special Economic Zones, and supporting the drafting of a new tourism law.
Increasing private sector access to financial services (ATF): Our efforts include supporting the Ministry of Commerce in preparing a training program to banks, MFIs, and lawyers on the Secured Transactions Law, developing new financial services, such as electronic banking, supporting the Ministry of Commerce in preparing a training program to banks, MFIs, and advising on the development of a more comprehensive credit bureau.
Improving competitiveness and productivity of firms (Corporate Advice): We seek to enhance capacities in agri-industry associations to help members increase crop yield, efficiency, and productivity. We are also promoting standards and certification for improved crop quality and access to markets, and continue to investigate cleaner technologies and management systems for waste reduction and energy efficiency among agri-processors.
Improving environmental and social sustainability in private firms (ESS): Our projects support the garment industry by helping establish Better Factories Cambodia as an independent institution providing labor standards monitoring and training services, improving dialogue with international garment buyers through the establishment of an international buyers’ forum, providing training on improving working conditions and employee-management relations, and researching the potential of rice husk for electricity generation or other energy purposes.
Increasing private sector access to infrastructure (ATI): As part of the World Bank Group’s support for the government’s Rural Electrification program, we are looking to assist the government in its collaboration with private investors for supplying electricity to rural areas. We are also working with financial institutions to facilitate financing of rural electrification.
