Phnom Penh Post, Issue 15 / 23, November 17 - 30, 2006
The World Bank said on November 14 that East Asian economies are likely to achieve their fifth consecutive year of strong growth in 2006 -and that Cambodia's gross domestic product (GDP) would slip slightly, but continue to grow at a robust 8.9 percent.
In a separate report, the World-Bank-supported Economic Institute of Cambodia (EIC) predicted a similar 8.5 percent GDP boost. Although the GDP is expected to moderate from last year's stunning 13.4 percent growth, Cambodia still posted one of the best performing economies in Asia, behind only China's 10.4 percent.
"The estimated 8.9 percent growth for 2006 would be one of the highest growth rates in the region and the third highest for Cambodia over the last seven years," said Robert Taliercio, World Bank country economist for Cambodia.
In fact, aside from sluggish 4 percent growth in the agricultural sector, most of the figures forecast for Cambodia were welcoming.
For the second consecutive year, textiles and tourism were the fast movers, as garment exports rose nearly 40 percent and visitors' arrivals increased about 20 percent. Inflation dropped to 5.1 percent, due to a stable exchange rate of the riel versus the US dollar, Thai baht and Vietnamese dong, and the EIC said external trade and private investment "continued to increase significantly. "
According to the EIC, the Council for the Development of Cambodia approved 74 investment projects, worth roughly $1 billion in fixed assets, in the first nine months of 2006.
"For last year and this year, our economic growth has been strong compared to previous years," said Sok Hach, director of EIC, on November 16. "This year the economy is higher because of tourism, the garment industry and rainfall. We've had enough rain to keep growth in the agriculture sector."
In the video teleconference broadcast simultaneously in Southeast Asian capitals from Washington DC, Homi Kharas, World Bank chief economist for East Asia and the Pacific, said that Asia's economic boom was corroborated by a substantial decline in poverty.
"Current estimates suggest that the number of people in East Asia living on or below $2 a day will fall to around 550 million (or 29.3 percent of the population) in 2006," stated a World Bank report. "This 1.5 percentage point drop in the past year means that around 25 million people in the region have emerged from severe poverty since 2005."
But, according to current World Bank figures, 53.8 percent of Cambodia's population - roughly 7.6 million people-will earn less than $2 a day in 2006. That is a decline of 2.4 percent since 2005, and a drop of 10.1 percent since 2004, but economists and analysts are still concerned about how a booming economy is not being harnessed to eliminate poverty, reduce inequality and create jobs for young people.
"Not one hundred percent of Cambodians get the benefits of economic growth," Hach said. "We're seeing economic growth and lots of money coming into the country, but most of the money goes to people who already have big capital. So, even though we can see economic growth, we're not seeing employment growth-most citizens are still poor and do not have jobs."
But Khieu Kanharith, Minister of Information, said on November 16 that the government is pleased with Cambodia's GDP growth and will only start to worry if it dips below 6 percent.
"As we see in the government's rectangular strategy, we must have economic growth of more than 5 percent for stability," he told the Post on November 16. "If we have 5 percent it is just enough. What a family earns is just enough for food and no money to repair their homes or buy a bicycle for their child to go to school. Our principle is that if we have economic growth from 6 percent up, we are hopeful."
According to Hach, the tourism and garment industries are not the answer to eliminating poverty or creating jobs for the 200,000 Cambodians entering the labor force each year. He estimates that the two industries are absorbing only about 25 percent of the new labor force each year.
"The two fields cannot get rid of poverty by offering income or employment," Hach said. "The garment sector can provide jobs, but only to about 20 percent of the new workers each year. Tourism could reduce unemployment at about five percent each year at the most. In total the two fields can only provide employment to a small amount of new workers each year. So, what are the rest of the citizens supposed to do?"
It may be a matter of defining "unemployment. " In May the Ministry of Planning released a figure of 4 percent unemployment. The International Labor Organization in 2004 listed Cambodia's unemployment at 0.8 percent -the same number hailed by the EIC as "possibly the lowest rate in the world."
The ILO defines unemployment as "those people who are without work and looked for work the week before. If a person worked for just one hour the week before they are considered "discouraged workers."
"Despite a very good unemployment rate, this does not suggest that everyone - especially rural dwellers who rely heavily on subsistence agricultural farming -has a productive and remunerative job that can ensure a decent standard of living," reads the EIC's publication Cambodia Economic Watch, released in October.
"It is, therefore, necessary to examine the underemployment rate which is defined as employed persons who expressed desire to have additional hours of work or an additional job."
The most recent attempt to quantify underemployment was a Ministry of Planning labor survey, conducted in 2001, that found that 38 percent of Cambodians were underemployed, the EIC reported.
Government spokesman Kanharith, however, claims that the benefits of a healthy economy are readily apparent in Cambodia.
"We've succeeded in reducing poverty at the rate of 1 percent each year, and also right now we have a lot of traffic jams due to all the cars and motorbikes [people have been able to buy]," he said.
"Even though I did not travel to all the provinces, statistics show that the number of thatched houses decreased and brick houses increased. The poor now at least have a bicycle to ride."
In a separate report, the World-Bank-supported Economic Institute of Cambodia (EIC) predicted a similar 8.5 percent GDP boost. Although the GDP is expected to moderate from last year's stunning 13.4 percent growth, Cambodia still posted one of the best performing economies in Asia, behind only China's 10.4 percent.
"The estimated 8.9 percent growth for 2006 would be one of the highest growth rates in the region and the third highest for Cambodia over the last seven years," said Robert Taliercio, World Bank country economist for Cambodia.
In fact, aside from sluggish 4 percent growth in the agricultural sector, most of the figures forecast for Cambodia were welcoming.
For the second consecutive year, textiles and tourism were the fast movers, as garment exports rose nearly 40 percent and visitors' arrivals increased about 20 percent. Inflation dropped to 5.1 percent, due to a stable exchange rate of the riel versus the US dollar, Thai baht and Vietnamese dong, and the EIC said external trade and private investment "continued to increase significantly. "
According to the EIC, the Council for the Development of Cambodia approved 74 investment projects, worth roughly $1 billion in fixed assets, in the first nine months of 2006.
"For last year and this year, our economic growth has been strong compared to previous years," said Sok Hach, director of EIC, on November 16. "This year the economy is higher because of tourism, the garment industry and rainfall. We've had enough rain to keep growth in the agriculture sector."
In the video teleconference broadcast simultaneously in Southeast Asian capitals from Washington DC, Homi Kharas, World Bank chief economist for East Asia and the Pacific, said that Asia's economic boom was corroborated by a substantial decline in poverty.
"Current estimates suggest that the number of people in East Asia living on or below $2 a day will fall to around 550 million (or 29.3 percent of the population) in 2006," stated a World Bank report. "This 1.5 percentage point drop in the past year means that around 25 million people in the region have emerged from severe poverty since 2005."
But, according to current World Bank figures, 53.8 percent of Cambodia's population - roughly 7.6 million people-will earn less than $2 a day in 2006. That is a decline of 2.4 percent since 2005, and a drop of 10.1 percent since 2004, but economists and analysts are still concerned about how a booming economy is not being harnessed to eliminate poverty, reduce inequality and create jobs for young people.
"Not one hundred percent of Cambodians get the benefits of economic growth," Hach said. "We're seeing economic growth and lots of money coming into the country, but most of the money goes to people who already have big capital. So, even though we can see economic growth, we're not seeing employment growth-most citizens are still poor and do not have jobs."
But Khieu Kanharith, Minister of Information, said on November 16 that the government is pleased with Cambodia's GDP growth and will only start to worry if it dips below 6 percent.
"As we see in the government's rectangular strategy, we must have economic growth of more than 5 percent for stability," he told the Post on November 16. "If we have 5 percent it is just enough. What a family earns is just enough for food and no money to repair their homes or buy a bicycle for their child to go to school. Our principle is that if we have economic growth from 6 percent up, we are hopeful."
According to Hach, the tourism and garment industries are not the answer to eliminating poverty or creating jobs for the 200,000 Cambodians entering the labor force each year. He estimates that the two industries are absorbing only about 25 percent of the new labor force each year.
"The two fields cannot get rid of poverty by offering income or employment," Hach said. "The garment sector can provide jobs, but only to about 20 percent of the new workers each year. Tourism could reduce unemployment at about five percent each year at the most. In total the two fields can only provide employment to a small amount of new workers each year. So, what are the rest of the citizens supposed to do?"
It may be a matter of defining "unemployment. " In May the Ministry of Planning released a figure of 4 percent unemployment. The International Labor Organization in 2004 listed Cambodia's unemployment at 0.8 percent -the same number hailed by the EIC as "possibly the lowest rate in the world."
The ILO defines unemployment as "those people who are without work and looked for work the week before. If a person worked for just one hour the week before they are considered "discouraged workers."
"Despite a very good unemployment rate, this does not suggest that everyone - especially rural dwellers who rely heavily on subsistence agricultural farming -has a productive and remunerative job that can ensure a decent standard of living," reads the EIC's publication Cambodia Economic Watch, released in October.
"It is, therefore, necessary to examine the underemployment rate which is defined as employed persons who expressed desire to have additional hours of work or an additional job."
The most recent attempt to quantify underemployment was a Ministry of Planning labor survey, conducted in 2001, that found that 38 percent of Cambodians were underemployed, the EIC reported.
Government spokesman Kanharith, however, claims that the benefits of a healthy economy are readily apparent in Cambodia.
"We've succeeded in reducing poverty at the rate of 1 percent each year, and also right now we have a lot of traffic jams due to all the cars and motorbikes [people have been able to buy]," he said.
"Even though I did not travel to all the provinces, statistics show that the number of thatched houses decreased and brick houses increased. The poor now at least have a bicycle to ride."
10 comments:
What the hell of this guy saying??? He compare the development of Cambodia to the Khmer rouge but not to the world´s current. He is really dumb...
He will be abolished when after hun sen is assassinated by his bidyguard...
What about the platation worker in Kampong Cham, get killed because pick up drops of raisan on the ground for hungry?
Get more tax from those rich and give the poor some descent life you fool! people will thank you and vote for you!
The growing econimy is only benifit the rich, where the poor getting poorer and will end up landless no sustainable future.
The gab between the rich and poor is getting higher that created into a class society, which the poor become slavery to reach, another is word normal rural cambodian becom slave to the Vietnamese.
This government must look clearly before claiming any success, the push that people was resolted from selling their land and to enable to work for the rich.
I understand it is take time for any development, but this government had 12 years long to prove themself and they show nothing but a communist state.
If you can do, give up and let others to clean up your mess before it is too late
Hun Sen must learn how to listen President Hun Jin Tao has said during the Apec in Hanoi. You must put your people first for any kind of development. If the development cannot help people to have good housing, good clothes, good foods and good income, just forget it. But In Cambodia all development will see people lost their land, their houses, their job and people are getting poorer. What we see only Hun Sen children will get richer and richer, Sok Kong, Kong Triv, Kith Meng, Mong Rithy are getting richer and richer by stealing people lands and properties every day in the name of development. What a robber Nation. Khiev Kahnarith is one of the crooked in Cambodia. This animal is a mafia since he was at Indradevy High School.
Just read some sources in US today said "Vietnam is only country in Asia behind China", now here it said Cambodia is only second country behind China economic growth. Which one the true?
You forget on rich lady of land and forest abuse, Yeay Phu, Hun Sen's god-aunt. Pig Sok An and Cham Praseth are also among them.
Kannharith, how much do you earn?? why do you have cars, villas, land pieces.... and why people can get only bicycle???
Hello 8:09AM Anyone have said that Cambodia behind China that is really blind. China has a foreign reserve of US$ 1000 billions dollars and each month their economy is surplus of US$22 billions dollars. Even Vietnam cannot stay just behind China. China is now ranking the world first of foreign reserve, second is Japan with over US$800 billions dollars and third is Taiwan with US$220 billions dollars, fourth is Hong Kong, Sixth is Singapore, seventh German, eigth France, Nine is South Korea. etc.. where are Vietnam and Cambodia. They are ranking the most end with debt instead. China is the most peacefull and safe to travel. Phnom Penh cannot even compare to a small country of China because of small roadings, dirties and unreliability of power, unsecurity for all public, too many guns and policemen in the streets, too many wardlord with bodygurads etc....THe leaders are mafia style and lacked of education and morality etc......This is Sun Sen used to say that foreign must understand Cambodian way of lives because of all of these differents. China has too many highly educated people with high moral. No policemen in the street and noone has bodyguard etc... and etc.....
Cambodia's economy or Growth Nation Product (GDP) is small that is not considered worth mentioning in most reports. Cambodia is a small country with small poor population and thus economy. But Cambodia can do much better if it is run right by the government. As a matter of fact, Cambodia is an easy country to govern. Cambodians usually don't complain unless it is really bad. They usually comply if told it for the nation's interest. The only reason that they don't comply is because they don't see it is truly for the nation; instead it is for their corruption leaders who resort to any tricks and shames to benefit from it.
Cambodians are simply nice and happy people by nature. But each time their government denies them opportunity to grow. If Cambodia leaders respect the law and do things for the interest of the country; you would see a drastic change in Cambodian's population behavior toward their nation. Before you know it; everything is coming our way.
CPP drives Mercedez, Lexus, and Land Cruiser. Toyota means nothing to them. Khmer people drive bicycle.
This is called modernization of Cambodia that Hun Sen tried to do for the last 26 years. Only bicycle for his people.
Your mother fucker get lost. Ah Kvak chouch Mi Chrouk.
I ADMIRED HUN SEN, HE'S STEER THE COUNTRY IN THE RIGHT DIRECTION. WE GOT OIL AND GAS IN THE NEXT FEW YEARS USED THE MONEY TO IMPROVE THE POVERTY, ELIMENATE THE CORRUPTIONS.
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