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This paper is confrontational and challenges many deep assumptions in mainstream development. It argues that from the early 1990s in many ways Cambodia became a ‘donor playground’, a term that some may find troubling, if not actually offensive. It supports this argument by reference to various arguments in development studies, to a specific case study of intervention in Cambodia, and to an examination of important parts of the relevant donor ‘knowledge production’. For us, these show that this term is, indeed, suitable and we will make various practical recommendations as to how things may progress in the future.

A significant amount of new information about poverty in Cambodia has become available since the last ADB country poverty analysis was published in 2011, at which time the most recent official figures dated to 2007. In 2013, Cambodia’s Ministry of Planning introduced new poverty lines and published revised poverty estimates for the years 2004 and 2007 and new figures for 2008–2011. Poverty rates for 2012 were released in 2014. The new figures show some surprising results, including a dramatic decline in poverty during the peak years of the food, fuel, and financial crises of 2007–2009. Cambodia now counts among countries with the most rapid poverty reduction in the world. Inequality also appears to have fallen since 2007.

This paper examines Cambodia’s socioeconomic development since the early 1990s peace settlement. The country’s economic growth has arguably been the fastest among post-conflict societies, driven by the credible restoration of peace and security, large public and private capital inflows, economic openness, reasonably prudent macroeconomic management, and a dynamic, integrating neighborhood. A legacy of history and small size is that the government has limited policy space, although this has not necessarily retarded economic development. We also highlight some key challenges, including rising inequality, uneven spatial development, weak institutions, and high levels of corruption. Looking forward, we highlight the importance of strengthening supply side capabilities, broadening the benefits of growth, and developing stronger institutions and property rights.

The DTIS (Diagnostic Trade Integration Study) 2007 involved an in-depth analysis of export performance, demands from world markets, domestic supply conditions and human development implications, as well as trade- related legal and institutional action plans for 19 potential exports intended to strengthen the business and investment environment for exports. However, it did not touch upon other important aspects such as comparative production costs of selected agricultural goods, marketing chains, challenges and opportunities for agricultural production and marketing and regional market flows. Since no study has focused on these issues with a view to enhancing agricultural trade in the GMS, this study is designed to fill this gap. The overall objective is to examine how agricultural trade in the region can be promoted in a manner that will optimise the benefits and minimise the negative impacts. The study selected cassava and rubber for in-depth analysis for two reasons: (1) they have not been significantly studied in the past, and (2) their potential importance for employment creation and poverty reduction.