A downside to economic success
Experts warn that Cambodia’s imminent move up to lower-middle income status could lead to a drop in foreign aid and economic assistance. …
While the status upgrade would affirm Cambodia’s economic openness, higher wages and increasing foreign investment, it could also lead developed countries to scale back their foreign aid and economic assistance, economists warn.
As per the World Bank’s criteria, a least developed country has a gross national income (GNI) per capita of less than $1,045, middle-income countries are in the range of $1,045 to $12,746, and high-income countries are above that level.
Cambodia’s draft national budget for 2016, passed by the Council of Ministers this week, projects GDP per capita to reach $1,325 next year – more than double what it was 10 years earlier. …
Ananth Baliga
http://www.phnompenhpost.com/business/downside-economic-success
