During the CDP Annual Consultation with Cambodia, the Government reaffirmed its strong commitment to graduating from the LDC category in December 2029 and highlighted substantial progress in preparing its Smooth Transition Strategy (STS). Cambodia has submitted its STS report on time and developed supporting analytical documents, including an STS roadmap, policy mapping, impact and vulnerability synthesis, and identification of priority areas and mitigating actions. Full drafting of the STS is scheduled to begin in January 2026, with adoption expected by the end of the year, aligned with the Pentagon Strategy Phase I and the National Strategic Development Plan. The Government requested targeted technical assistance to address emerging risks and structural challenges that could affect the smoothness of the transition. Priority areas of requested support include:
• Enhanced Monitoring Mechanism (EMM) and crisis monitoring: Technical guidance to integrate crisis response and early-warning indicators into the national graduation monitoring framework, including development of an EMM dashboard with quarterly and monthly indicators to track global shocks, price volatility, and trade impacts.
• Financing and domestic resource mobilization: Advisory support on innovative financing instruments (sovereign, green, and thematic bonds) and strengthening domestic revenue mobilization to offset declining ODA in the graduation context.
• Human capital development: Guidance on identifying and prioritizing investments in human capital as a key enabler of structural transformation and smooth transition.