PHNOM PENH, Aug. 31 (Xinhua) -- Cambodia can make a bold step towards ending extreme poverty if about 1.5 percent of the kingdom's gross domestic product (GDP) is spent for a social protection floor, said a United Nations Development Program (UNDP) report released on Monday.
Cambodia has achieved impressive rates of economic growth over the past 15 years, the report said, adding that as a result, poverty rate has fallen dramatically from a half of the population in 2007 to below 10 percent by 2016.
The public budget surplus in 2018 is equivalent to approximately 150 million U.S. dollars, which can nearly close the poverty gap if it is used for social safety nets, it said, adding that it represents more than double the amount needed to bring the share of Cambodians living in poverty below 3 percent.
"This report shows that a system of support based on a social protection floor is effective for reducing poverty to below 3 percent of the population, and in normal times is entirely affordable for Cambodia," Nick Beresford, UNDP Cambodia's resident representative, said in a press release.
The report said if annual spending for a social protection scheme was to be raised to reach 1.5 percent of the GDP, more than 800,000 Cambodians would be lifted above the national poverty threshold, while an additional 600,000 would see a significant improvement in their welfare.
The report also praised Cambodia for its emergency cash transfer program in response to the COVID-19, saying that it could lift over one million Cambodians out of poverty and improve the livelihoods of many more.
"This represents an unprecedented political stance and institutional progress towards more permanent and ambitious programs, including towards the establishment of a social protection floor," it said. Enditem
