Estimation of Rates of Return of Social Protection Instruments in Cambodia: A Case for Non-Contributory Social Transfers

The Royal Government of Cambodia launched in 2011 the National Social Protection Strategy for the Poor and Vulnerable (NSPS) in order to contribute to the rehabilitation and stability of the economy, but also to enhance human capital. This study provides empirical evidence for the implementation of the NSPS making the case for a basic package of non-contributory social protection provisions targeted at poor persons in rural areas covering various life-cycle risks. The instruments include cash transfers for children, social pensions, scholarships for lower secondary education, and public works programmes. A microsimulation model is designed using data from the Cambodian Socio Economic Survey 2004 and 2009. The model estimates the potential effects, benefits and returns of the implementation of social protection in Cambodia.