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2. SOCIO-ECONOMIC SITUATION

Cambodia's population is mainly rural with less than 14 percent living in the urban area. The population of Cambodia was recently estimated at approximately 9.8 millions with the annual population growth in the rate of about 2.8 percent. Cambodia is dominantly rural economy, with about 85 percent are farmers- Besides the main daily activity, farming, some rural people involve themselves in several supplementary economic earnings, which is mostly under the customary use rights for those who live adjacent to forested areas, such as cutting trees, collecting fuel wood and non-wood production from the jungle (rattans, lian, resins, honey...). Between 1990-1995 the average GDP growth was about 5.9 percent, that the estimation of GDP in 1994 was 4.0 percent approximately. It is remarkable that in the last two years forestry sector contributed approximately 20 millions (12 percent) of the national income.


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