Cambodia is known as one of the world poorest countries. According to the UNDP, Human Development Index Report in 2009; Cambodia ranks 137th out of 182 countries over the world. Annual per capita income is 256$ in 1999. It is estimated to be around 300$ today. An approximately 36% of the population lives below the basic needs poverty line. In addition, poverty rate in the rural areas is 40%, four times as high as Phnom Penh, which is only 10%.
Among other factors prolonged civil conflict during three past decades, internal displacement and discriminatory development processes are the main causes of poverty in Cambodia. It is now widely recognized that poverty is a multidimensional problem and should be viewed in a broader context than merely in terms of low levels of consumption and income. Lack of food, uncertainties about access to natural resources, powerlessness and hopelessness, social exclusion, lack of education, etc. are all dimensions of poverty. Within Cambodia these were encapsulated in the Cambodia Participatory Poverty Assessment published by the Asian Development Bank in 2001
Poverty in Cambodia is widespread with some 36 percent of the Cambodian population living below the poverty line of US$0.46-0.63 at the current exchange rate. Generally, people move in and out of poverty, which makes definition of poverty lines and better knowledge about cyclical, seasonal and unexpected shocks important. Current level of poverty largely results from high population growth, inadequate opportunities, low capabilities, insecurity, exclusion, and vulnerability. Therefore, before we technically measure poverty we should first and foremost understand the multidimensional nature of poverty. For the moment we focus in turn on lack of opportunities, lack of capabilities, social exclusion, and vulnerability in the sections that follow.