Cambodia is a South-East Asian country with a total land area of 181 035 square kilometres (km2). It has a tropical climate with two distinct monsoon seasons. The latest population prediction based on the 1998 census is 13.5 million people with a growth rate of 2.49%. In Cambodia, 84% of the population lives in rural areas. The average population density is 65 per km2, but it ranges from 2 per km2 in remote mountainous provinces of Mondol Kiri to 3448 per km2 in the capital city Phnom Penh.
Serious internal conflict between 1973 and 1993 left Cambodia severely impoverished, with a significant depletion of skilled educated professionals. Political stability since 1997 has resulted in some improvement in human development indicators. In 1990 the Human Development Index (HDI) was 0.51, and by 2001 it had increased to 0.56, moving Cambodia from the low to the medium human development category. Despite this achievement, poverty is widespread and Cambodia still has some of the worst human development indicators in South-East Asia. It is mainly the major urban centres that have profited from the economic growth. The purchasing power of the rural population, representing 85% of the total population, has not improved significantly
Agriculture, mainly rice production, accounts for 40% of the gross domestic product (GDP) and employs more than 70% of the workforce. The growth rate in agricultural employment, however, is slowing down with 1.8% average growth rate between 1998 and 2000. Natural disasters (annual flooding and drought) result in year-to-year fluctuations in agricultural production.
Employment in industry (mainly the garment industry) grew substantially (43%) during the period 1998–2000, stimulated by a preferential trade status with the United States of America. This status, however, is due to end. A significant urban drift, especially among youth, has accompanied the growth in industry, stretching the city infrastructure. Twenty-five per cent of the city population is now living in slum areas without adequate water, sewage and sanitation systems.