What Are the Challenges and Opportunities in to Improve Human Capital and Value Added in Cambodia's Garment Industry for the Purpose of Poverty Reduction?

In pursuit of a comprehensive poverty reduction strategy for Cambodia, this paper begins with an analysis of the value ladder of Cambodia's garment industry. This paper argues for a shift from the bottom of the ladder, a labor-intensive economy, to more advanced sectors involving technology, design, and skilled labor as a potential catalyst for poverty reduction progress. Furthermore, this paper emphasizes that Cambodia's opportunity to lift its position from the value ladder hinges on the augmentation of human capital, primarily through strategic investments in education. Subsequently, the paper delves into the challenges confronting the Cambodian government in its efforts to address poverty. Drawing inspiration from the successful Conditional Cash Transfer (CCT) programs implemented in Mexico (Oportunidades) and Brazil (Bolsa Famlia) to tackle similar poverty-related challenges, this paper examines their outcomes. It evaluates their practicality within the Cambodian context as a policy recommendation.