Productivity Summary and Analysis

 

To understand the low levels of depleted human capital and physical you must first understand that the country of Cambodia has been in conflict for many decades. The country's past has had a direct effect on the countries low productivity currently. The people of Cambodia have very little human capital; they have very little education and lack skills of production. The country’s economy lacks an overall infrastructure and the only real human capital the citizens have is the knowledge of farming ("The Cambodian Economy: Ready For Take-Off").

 

 If the country wants to become more productive in the future they most become proactive and diversify the knowledge of citizens into many different sectors of their economy. They could do this by creating policies, which help citizens acquire an education in sectors other than farming. Until then, the economy is still every man for himself and all still depend on the land for farming. Due to a weak infrastructure, physical capital is also astonishingly low. Their economy is fully dependent on crop production meaning their physical capital is made up of mostly farming tools and supplies for harvesting. Families typically hand down the same tools from generation to generation so the tools are outdated although they are plentiful and very effective. Cambodia does in fact have one strong suite, natural resources. They have an impressive amount of oil, gas, timber, gemstones, iron ore and hydropower potential. The country of Cambodia, since 1995, has become much more productive for the simple fact that they have learned how to effectively use these resources ("Cambodia Economy").

 

 A huge part of the recent economic growth lies within the fact that they are now exporting these resources; their main exports are clothing and rice. The technological knowledge in Cambodia is also very weak; the Internet is still a very rare commodity in the country of Cambodia. Since they have evolved as country only knowing how to farm by instruction form their government, everyone is convinced that agriculture is the best way to make a living and they have no real alternative options. The fact remains; little has been done to boost the country in its technological knowledge.

 

 In conclusion, it is clear why Cambodia has such lackluster productivity. The nation’s conflicting past has laid a terrible foundation for the progress of economy ("Cambodia Economy”). People are not well educated and have very few skills outside of farming. The tools they posses are typically those used in farming and harvesting. The country's well-being is at risk but is increasing quite well; this is directly related to the new emergence of effectively using their natural resources. If the country continues to successfully export these abundant resources, I believe they will be on track for planting a solid foundation for the future economy. 

 

Works Cited

 

"Cambodia Economy." Expedited Visas, Visa Applications, Rush Passport, Passports, Travel. Web. 30 Nov. 2009. .

"Cambodian Economy." AsianInfo.org. Web. 30 Nov. 2009. .

"The Cambodian Economy: Ready For Take-Off?" IDEAS: Economics and Finance Research. Web. 30 Nov. 2009. .

"Economy - Cambodia." Encyclopedia of the Nations - Information about countries of the world, United Nations, and World Leaders. Web. 30 Nov. 2009. .

Infoplease: Encyclopedia, Almanac, Atlas, Biographies, Dictionary, Thesaurus. Free online reference, research & homework help. Infoplease.com. Web. 30 Nov. 2009. .

 

(Cambodian Information Center (CIC) Homepage. Web. 10 Dec. 2009. .