Since the end of the civil war in the late 1990s, the Cambodian People’s Party (CPP) government has shifted its narrative from the ‘1979 Liberation’ to ‘economic growth’ to justify its legitimacy. This transition, managed by former Prime Minister Hun Sen and continued by Hun Manet, aims to demonstrate that the CPP has the right to lead because it maintained an average GDP growth of 7% per year (between 1994 and the pre-COVID era). However, this development is not purely economic; it is a political tool used to consolidate power, silence the opposition, dismantle independent media, and weaken civil society, effectively destroying the checks and balances essential to a democratic society.
In 2024-2025, Cambodia stands at a critical juncture as it prepares to exit the Least Developed Country (LDC) status by 2029. While the economy appears strong—with non-garment exports increasing fivefold since 2016—analysts like Seng Vanly argue that “Cambodian society remains weak.” Institutional reforms are often designed to benefit the ruling elite rather than create transparency for citizens. While Hun Manet’s government aims for Upper-Middle Income status by 2030, it has instead reverted to a leadership system that concentrates power within a small inner circle.
The Erosion of Democracy and Human Rights
The dissolution of the Cambodia National Rescue Party (CNRP) in 2017 marked the end of pluralistic democracy in Cambodia. By weaponizing the judiciary to eliminate rivals and banning over 100 opposition members, the ruling party now governs without oversight. This one-party system has fostered systemic corruption, social injustice, and a rise in transnational crime that threatens national stability.
According to Human Rights Watch’s 2026 report, Cambodia has become a de facto one-party state with total control over the government, military, and judiciary. Since Hun Manet took office, the human rights situation has deteriorated further through the arrest of critics on charges of ‘incitement’ or ‘conspiracy.’
The courts have become tools to suppress dissent while protecting corrupt ruling elites. Opposition leader Kem Sokha remains under a 27-year house arrest for treason—a charge the UN deems politically motivated. Furthermore, the government has pursued critics abroad, exemplified by the 2025 murder of Lim Kimya in Thailand and the deportation of activists from Malaysia, signaling a global crackdown on dissent.
Legislative Restrictions and Media Suppression
National laws have also been tightened. In 2025, the National Assembly passed a law to revoke the citizenship of those accused of ‘treason,’ a strategy targeting the Cambodian diaspora to stifle human rights criticism. The arbitrary use of law has left civil society organizations, such as Equitable Cambodia (EC) and CENTRAL, facing constant legal threats.
Press freedom has been decimated. Reporters Without Borders ranked Cambodia 161st in 2025, categorizing the situation as ‘very serious.’ The 2023 closure of VOD and the arrests of prominent journalists like Mech Dara and Hem Vanna for reporting on scam centers have left independent journalists in peril. The government’s sensitivity toward border issues led to the 2025 arrest of two more journalists on treason charges.
A lack of oversight and a weak rule of law have allowed online scam centers to flourish in Sihanoukville, Phnom Penh, and Poipet. These criminal enterprises are estimated to generate $12 to $19 billion annually—roughly 60% of the national GDP. A UN report estimates that up to 150,000 people have been trafficked into forced labor within these centers. Despite government claims of a crackdown, these efforts are seen as performative, as the ringleaders are often protected by powerful elites. Consequently, the US has kept Cambodia on the Human Rights Trafficking Tier 3 blacklist for the fourth consecutive year.
Systematic Corruption and Social Injustice
These issues are rooted in corruption. Transparency International’s 2025 Corruption Perceptions Index (CPI), released on February 10, 2026, ranked Cambodia 163rd out of 182 countries, one of the lowest scores globally.
The judiciary is reportedly rife with bribery, allowing the wealthy to purchase justice. High-ranking security officials possess unexplained wealth far exceeding their modest salaries. This environment facilitates land grabbing, illegal logging, and the exploitation of natural resources for a small group of people. Land disputes remain a major grievance in 2024-2025, particularly for women and indigenous groups, leading to food insecurity and crippling microfinance debt.
Despite increased revenue collection, the quality of public services remains low. The World Bank’s 2024 Public Expenditure Review shows that spending is concentrated on official salaries rather than service quality. In education, Grade 6 mathematics proficiency dropped from 43% in 2013 to 38% in 2021.
The healthcare system faces similar gaps. While maternal and infant mortality rates have improved since 2000, progress toward Universal Health Coverage is slow and unequal. In 2021, only 15.3% of citizens chose public hospitals as their first option due to perceived low quality. Furthermore, 75% of specialist doctors are concentrated in Phnom Penh. As a result, Cambodians pay over 60% of healthcare costs out-of-pocket—twice the burden of countries with similar income levels—forcing many into poverty due to medical debt.
Facing a lack of genuine democratic support, the CPP often utilizes border issues and nationalism to mobilize the public and distract from internal crises. The 2025 Cambodia-Thailand border dispute is a prime example of the government using territorial sovereignty to boost popularity. While this strategy offers short-term political gains, it damages the economy. The Asian Development Bank (ADB) lowered Cambodia’s growth forecast from 6.1% to 4.9% due to regional tensions and uncertainty.
Tourism has been the hardest hit, with international arrivals dropping by 20-40%. Additionally, the state has diverted significant funds to the military, straining the budget just as Cambodia prepares to lose trade preferences in 2029. This conflict proves that nationalist games and economic growth are incompatible.
The Cambodia-Laos-Vietnam Development Triangle Area (CLV-DTA) became a flashpoint for public anger in late 2024. Many citizens feared the 20-year-old agreement would compromise national sovereignty in northeastern provinces. The government responded with a heavy-handed crackdown; between July and August 2024, over 100 people were arrested, with dozens charged with ‘conspiracy’ or ‘incitement.’ This highlights a regime that relies entirely on suppression to maintain its image as the sole protector of the nation.
Weak rule of law has allowed Cambodia to become a major transit hub for synthetic drugs from the Golden Triangle. According to the UNODC (May 2025), methamphetamine seizures in the region reached 236 tons in 2024, a 24% increase. This multi-billion dollar drug trade fuels widespread corruption among officials.
Youth are the primary victims. Drug use is rising, creating a ‘vicious cycle’ that destroys social stability. The emergence of gangs around scam centers and the recruitment of youth into the shadow economy—often backed by senior political figures—threaten the fabric of Cambodian society.
Cambodia’s prisons are in crisis. LICADHO found that by late 2024, prisons were operating at up to 200% capacity, with over 45,000 detainees. Lack of clean water, food, and the presence of prison gangs have turned the justice system into a mechanism for punishment rather than rehabilitation.
Exploitation also persists in the fishing and garment industries. The 2025 US Trafficking in Persons (TIP) report indicates that the government fails to adequately prosecute labor traffickers. Child labor and debt bondage remain prevalent in brick kilns and plantations, yet authorities often issue only minor fines, signaling a preference for business interests over the protection of the vulnerable.
As Cambodia nears its LDC graduation in 2029, the fragility of its current development model is exposed. A human resource crisis—driven by failing education and healthcare—threatens long-term competitiveness.
To reach high-income status, the government must restore checks and balances, ensure judicial independence, and protect press freedom. Without these reforms, the negative impacts currently plaguing the country will only intensify. The CPP may have kept the economy moving, but it has done so by hollowing out national institutions. This paradox of a ‘strong economy but a weak society’ is a dangerous path that could lead to future social instability.
