The people in Cambodia are lifting themselves out of poverty! There has been a notable rise in the standard of living there for the past 15 years. According to the World Bank, between 1995-2017 Cambodia has sustained an average growth rate of 7.7%, which puts it on a list of the sixth fastest-growing world economy. The poverty rate fell to just 13.5% by 2014, compared to 47.8% in 2007.
January 2019 marks the 40th anniversary of “Victory Day” over the Khmer Rouge, which led by communist revolutionary Pol Pot had seized complete political and economic control of Cambodia. But now, Cambodia is remarkably close to eliminating the extreme poverty that still plagues roughly 10% of the population.
This has all happened with the inclusion of three necessary factors for entrepreneurship to flourish– private property, stable currency, and peace.
In only a single generation, they are seeing the accrual of genuine savings that will become capital investment for the next generation. If peace and political stability continue in Cambodia, the future is looking optimistic for the people in that country.
Cambodia is a great example of the incredible economic growth that is possible, even in economies that are starting over, when the right institutions are in place.