UN DESA | DPAD | Development Policy Analysis Division
Macroeconomic Advisory Capacity (MAC)
Phnom Penh, Cambodia
30 April- 4 May 2012
The mission (along with ESCAP) met several key ministers and governor of the central bank. The meeting with H.E. Ly Thuch, Senior Minister, was particularly useful given his strong interest in collaborating with the UN. The Cambodian Government expressed strong interests in receiving technical assistance from UN-DESA and ESCAP in overcoming the problem of dollarization, which is impeding access to credit and full economic potential of Cambodia. The mission was able to demonstrate that the high degree of dollarization and a fully liberalized capital market made Cambodia very vulnerable to external economic shocks. It is not at all surprising that Cambodia was the worst affected economy in South East Asia during the recent global economic crisis. The Government showed strong interest in receiving policy advisory support to make the Cambodian economy more resilient against shocks. There was also considerable interest as to how Cambodia could develop its capital market, learning from the successes and mistakes of other developing economies. Finally, the Government showed strong interest in partnering with UN-DESA and UN-ESCAP to develop its development strategy, which will allow Cambodia to graduate from the LDC group before the end of the current decade.