Cambodia Social Protection Expenditure and Performance Review This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the author and can in no way be taken to reflect the views of the European Union. ILO/EU/Cambodia/R.4 Cambodia Social Protection Expenditure and Performance Review EU/ILO Project on “Improving Social Protection and Promoting Employment” In cooperation with the GIZ Social Health Protection Programme, Cambodia, in the context of the P4H initiative International Labour Office, Geneva Copyright © International Labour Organization 2012 First published 2012 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected] . The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. ILO Cataloguing in Publication Data Cambodia : social protection expenditure and performance review / EU/ILO Project on Improving Social Protection and Promoting Employment ; in cooperation with the GIZ Social Health Protection Programme, Cambodia, in the context of the P4H initiative ; International Labour Office. - Geneva: ILO, 2012 xx, 112 p. ISBN: 9789221264552; 9789221264569 (web pdf) International Labour Office ; EU/ILO Project on Improving Social Protection and Promoting Employment ; GIZ Social Health Protection Programme social protection / social security / scope of coverage / social expenditure / social security financing / medical care / labour market / poverty / Cambodia 02.03.1 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. 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Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] Visit our web site: www.ilo.org/publns Printed in Switzerland Contents Page Acknowledgements ........................................................................................................................... ix Executive summary ........................................................................................................................... xiii Abbreviations .................................................................................................................................... xvii Introduction ..................................................................................................................................... 1 1. Demography .......................................................................................................................... 3 1.1. Population ..................................................................................................................... 3 1.2. Fertility rates ................................................................................................................. 6 1.3. Life expectancy at birth and mortality rates ................................................................. 6 1.4. Rural versus urban population ...................................................................................... 7 1.5. Conclusions ................................................................................................................... 8 2. Labour market ...................................................................................................................... 10 2.1. Overview ....................................................................................................................... 10 2.2. Labour force .................................................................................................................. 10 2.3. Employment .................................................................................................................. 12 2.4. Labour migration .......................................................................................................... 16 2.5. Education and vocational training ................................................................................ 16 2.6. Industrial relations ........................................................................................................ 17 2.7. Conclusions ................................................................................................................... 21 3. Macroeconomic environment ............................................................................................... 23 3.1. Economic growth, factor income and inflation ............................................................. 23 3.2. Labour productivity, wages and social protection ........................................................ 27 3.3. Government finances and fiscal space .......................................................................... 29 3.4. Dollarization ................................................................................................................. 33 3.5. Conclusions ................................................................................................................... 35 4. Governance ............................................................................................................................ 37 4.1. Background ................................................................................................................... 37 4.2. Current reform .............................................................................................................. 38 4.3. Implications for social protection ................................................................................. 41 5. Poverty and vulnerability ..................................................................................................... 42 5.1. Measuring poverty ........................................................................................................ 42 5.2. Targeting the poor: The ID-Poor project ...................................................................... 44 5.3. ID-Poor data .................................................................................................................. 45 Cambodia: Social Protection Expenditure and Performance Review v 6. Health ..................................................................................................................................... 49 6.1. Overview ....................................................................................................................... 49 6.2. Public health system ..................................................................................................... 55 6.3. Health financing ............................................................................................................ 57 7. Current state of social protection ........................................................................................ 61 7.1. Introduction ................................................................................................................... 61 7.2. Statutory provisions on social protection ...................................................................... 63 7.3. National Social Security Fund for Civil Servants (NSSFC) ......................................... 65 7.4. The National Fund for Veterans (NFV) ........................................................................ 70 7.5. National Social Security Fund for private-sector employees (NSSF) .......................... 74 7.6. Social health protection ................................................................................................ 80 7.7. Social assistance programmes (government budget) .................................................... 87 7.8. Social assistance and similar programmes (donor-funded) .......................................... 90 7.9. Vocational training ....................................................................................................... 95 7.10. Summary and conclusions ............................................................................................ 97 8.