ADB’s Loan to Cambodia Should Enable the Growth of Its Gross National Income
The Asian Development Bank will grant almost $1.5 million in loans to Cambodia over the next five years. Cambodia intends to become a country with upper-middle-income. With this loaned money, it should be able to achieve that goal by 2030.
ADB and Cambodia have signed a contract about the strategy that will be implemented between 2019 and 2023, and the money will be used for improvements in many areas.
The part of the money will go to the development of farming and natural deposits and should also provide better living conditions in both urban and rural areas. Cambodia plans to invest a portion of the funds into building infrastructure for renewable energy, too.
The ADB launched this supporting program as an endorsement measure for the Cambodian government that aims to implement corrections in the public sector and enhance the quality of living. Cambodia made significant improvements recently.
The economy made 8% growth in the past two decades, which makes them one of the fastest expanding countries in the world. For example, GNI per capita in 1999 used to be $290, and it rose up to $1,380 last year.
Still, this country faces other challenges, such as poverty in the households run by women. Also, this country lacks decent health care systems, social protection, and adequate education. Most of these subjects are below standard, even for lower-middle-income societies.