The Economy of Rural Households in Cambodia- Inflow and Outflow sources

An estimated 85 per cent of 14 million Cambodians live in rural areas and depend upon agricultural cultivation as their primary means of subsistence or livelihood. Intervention to improve agricultural performance and another livelihood improvement programs will greatly benefit a large number of people who are among those most affected by poverty. Rural households in Cambodia typically rely on diversity of economic activities including farm activities, non-farm activities, and other sources of inflows for their survival. Farm activities refer to the activities which consist of crops, livestock, and common property resources (CPR). While non-farm activities are included the activities of casual labor, salaried labor, manufacturing, and services. Other sources of inflows, on the other hand, include remittances (domestic and international), sales, rental and income from loans. However, variety numbers of economic activities that a household undertakes do not necessarily reflect those activities that generate more income for the households. This article analyze the cash flow of rural households in Cambodia, it illustrates the inflowsout flows, income and expense sources and seasonality of household’s inflows and outflows. This article is based on primary data collected from 1665 rural households where selected from 111 villages in 17 provinces. The survey conducted from late April to June 2011. The study confirms that the rural households undertake at least one farm activity plus at least one non-farm activity and also engage in other inflow activities. Their inflows and out flows are seasonal, higher inflows are from November to March, which is the time of crop harvest and livestock sales. Inflows from non-farm activities present rather constant flows throughout the year. From May to September inflows are lower. As for outflows, the high outflows in rural household occur from November to April. During this season, expenses on ceremonies have increased significantly. The study also emphasizes that non-farm activity is the major income earning source for rural households while farm activity is more contribute for household’s consumption.