Phnom Penh, February 18, 2008 — Cambodia’s government has announced it will use a biannual index by The Asia Foundation as an indicator to measure the countryâ€™s business-friendliness.
The Cambodian Ministry of Commerce announced on February 11, 2008, that the Provincial Business Environment Scorecard (PBES) will, going forward, be used as a reform and monitoring tool in assessing Cambodiaâ€™s economic growth.
“The PBES is a good indicator of where efforts should be concentrated to improve specific areas of the business environment,” said H.E Cham Prasidh, Senior Minister, Ministry of Commerce. “It can also indicate over time where reforms have been successful and where tangible improvements have been achieved.”
A partnership of The Asia Foundation and the International Finance Corporation’s Mekong Private Sector Development Facility, the PBES draws on the perceptions of the business community to rank provinces according to how business-friendly their policies are. Tracking the progress of provincial economic governance over time creates incentives for local officials to undertake reforms that will improve the overall competitiveness of their respective provinces.
First released in 2006 as a study of 10 provinces, the next PBES will be published in late 2008 and cover all 24 of Cambodia’s provinces.