Growth Without Development
Growth Without Development
The Garment, Rice, and Livestock Sectors in Cambodia
This chapter examines recent economic growth in Cambodia by focusing on the governance consequences of aid dependence in three economic sectors: garment, rice, and livestock. It begins with an overview of prevailing and prospective growth patterns and their associated governance patterns in these three sectors in order to understand the dynamics of governance and growth. Findings suggest that Cambodia’s recent growth is not a product of good governance and that poor governance—as distorted by the effects of foreign aid—is stifling the potential for growth in the agricultural sector of the economy. The “ideal” is growth that is equitable, inclusive, and environmentally sustainable. This requires a government committed to providing appropriate laws, institutions, and enforcement of rule of law (a “service delivery model”). Cambodia’s case shows the opposite problem of government not encouraging—and sometimes actively discouraging—growth through corruption and bad policies.
Keywords: economic growth, Cambodia, governance, aid dependence, garment, rice, livestock, foreign aid, agricultural sector, corruption
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