Measuring Monetary and Multidimensional Poverty During COVID-19 in Cambodia: Empirical Evidence and Policy Implication

This paper utilizes the 2019/2020 and 2021/2022 rounds of the Cambodia Socio-Economic Survey to analyze both monetary-based and multidimensional poverty in Cambodia before and during the COVID-19 pandemic. While the methodology for measuring monetary-based poverty is based on the Foster, Greer, and Thorbecke (FGT) index formula complemented by the regression analysis and temporal and spatial price adjustments, the Alkire-Foster (AF) measure is employed to construct an adjusted multidimensional poverty for Cambodia. The key findings show that although spatial disparities of daily per capita consumption reduced in 2021/2022, urban areas continued to exhibit significantly higher aggregate consumption. The change in the overall consumption aggregate indicates that Cambodia’s monetary-based poverty rate was estimated to be around 18% in 2019, closely aligning with the official poverty rate of 17.8%. However, this figure was estimated to increase considerably in 2021, during which COVID-19 lockdowns and restrictions were strictly imposed. In contrast, multidimensional poverty decreased from 14% to 10%, with a reduction observed across all 10 deprivation indicators, suggesting an overall improvement in living conditions despite the economic challenges presented by the pandemic. The paper concludes by recommending enhanced poverty analysis in Cambodia, including more frequent updates, and better integration of monetary and multidimensional approaches. Such improvements are essential for developing effective policy responses to alleviate poverty and address the Cambodian population’s diverse needs.