Sunday, October 21, 2007

A festival of death [-Sok Hach: Economic growth in Cambodia has done far less to reduce poverty in his country than in neighboring VN]

October 21, 2007
DANTE RAMOS
The Boston Globe (Boston, Mass., USA)

"Officially, the cost of doing business is very low ... But we feel - foreign investors feel - the unofficial cost is very high" - Sok Hach, Director of the Economic Institute of Cambodia
PHNOM PENH - Cambodia's capital is bustling these days, and people who live here say the streets are ever more choked with motorbikes and cars. But that wasn't the case earlier this month as Cambodians observed Pchum Ben, the Festival of the Dead. Phnom Penh looked like a ghost town, because many residents had returned to their home provinces. People across the country gathered at Buddhist temples to honor their ancestors and other relatives.

Acknowledging the dead is a more pressing duty here than in most countries, after decades of war that ended only in the late 1990s. The worst occurred from 1975 to 1979, when the Khmer Rouge were responsible for the deaths of about 1.7 million Cambodians, though estimates vary. But with a new tribunal investigating the remaining leaders of that regime, the country has a chance to get out from under the weight of its history.

Then again, it's hardly clear that the trauma of that four-year period is what's holding Cambodia back now.

A generation gap

Led by the shadowy Pol Pot, the Khmer Rouge sought to build a peasant state where everyone was equal. In practice, this meant banning education, cities, and money; resetting the calendar to the Year Zero; and neglecting, starving, torturing, bludgeoning, and shooting people indiscriminately. The Khmer Rouge were driven out of power by a Vietnamese invasion but fought on as insurgents for years afterward. Although the regime's so-called Brother No. 2, Nuon Chea, is in detention on the tribunal's grounds near the Phnom Penh airport, Pol Pot and most other Khmer Rouge's leaders are already dead.

I am in Southeast Asia with a group of journalists organized by the East-West Center in Honolulu. Everyone here who is old enough to remember the Khmer Rouge years seems to have a grisly story to tell. Heng Ran, 45, was attending a Pchum Ben ceremony at a temple not far from Choeung Ek - a notorious Khmer Rouge killing field that lies a half-hour drive from downtown Phnom Penh. Heng Ran was forced into a women's work brigade, and she lost her older brother and older sister to the regime in 1978. Through an interpreter, she says she wants to see Khmer Rouge leaders on trial. "I want it to open quickly," she adds.

Still, there are limits to what the tribunal can accomplish. The "extraordinary chamber" is an odd hybrid: a Cambodian court with some international judges, staffers, and legal standards. It grew out of years of tense negotiations between authorities here and United Nations officials, who were wary of Cambodia's undeveloped legal system and the prospect of political interference. The chamber is expected to try no more than a half-dozen or so Khmer Rouge leaders. Early proceedings occur behind closed doors, so formal indictments may not come down for months.

Meanwhile, Cambodia is changing rapidly. About 70 percent of Cambodians are below the age of 30. They learned little about the Khmer Rouge in school, and their shell-shocked parents aren't necessarily eager to talk about the blood bath. An organization called the Documentary Center of Cambodia has produced an exhaustive textbook on the period, but the current government is in no hurry to adopt it.

The British Embassy, in conjunction with a Cambodian civic group, produced educational videos about the Khmer Rouge period and about the workings of the tribunal. The filmmakers also recorded the reactions of a group of villagers to one of the videos. Two things are striking: First, some young audience members evidently knew little about the Khmer Rouge, and treated what little they had heard as dark fairy stories. Second, some older villagers laid the blame for all the country's current ills upon the Khmer Rouge.

Other problems fester

Yet the relative lack of healthcare, education, and infrastructure in Cambodia has far more complex causes. Beyond the years of war and foreign interference, the country also suffers from a history of political corruption and uneven development - problems that began long before the Khmer Rouge emerged and continue today.

Even so, the country is booming. Its economy grew by a torrid 10.4 percent last year, according to the Economic Institute of Cambodia, because of gains in garment exports, construction, and tourism. But Sok Hach, director of the research group, says economic growth in Cambodia has done far less to reduce poverty in his country than in neighboring Vietnam.

Cambodia's legal structures aren't sufficient to keep money from flowing to the well-connected. A proposed anticorruption law has remained in draft form for more than a decade. Prime Minister Hun Sen's government makes noises about quick permitting for businesses and low taxes, but would-be investors worry more about shakedowns. "Officially, the cost of doing business is very low," Sok Hach says. "But we feel - foreign investors feel - the unofficial cost is very high."

Indeed, allegations of impropriety reach even into the Khmer Rouge tribunal. Jobs there pay well above the local average. Newspapers here have reported that Cambodian employees, including judges, have been forced to pay kickbacks to government officials who got them their positions. A recent UN audit found that opportunities for political patronage within the court have been rampant.

Nevertheless, the upcoming trials may bring some comfort to people who have suffered beyond imagination, and shed new light on the violence three decades ago. Meanwhile, a new generation of Cambodians has to contend with a different threat to the country's future.

15 comments:

Anonymous said...

Economic growth in Cambodia !!!!!Only for Youn Sok Kong,Kith Meng,Sok Ahn,Dictator Hun Xen,Heng Samrin,Chea Sim,....
Für all Khmers are not.
They have nothing since 1979 until now!!!! Why?

Sok Ahn and Hun Sen are the biggest Corrupts.

Anonymous said...

Economic growth in Cambodia !!!!!Only for Youn Sok Kong,Kith Meng,Sok Ahn,Dictator Hun Xen,Heng Samrin,Chea Sim,....
Für all Khmers are not.
They have nothing since 1979 until now!!!! Why?

Sok Ahn and Hun Sen are the biggest Corrupts.

Anonymous said...

"Officially, the cost of doing business is very low ... But we feel - foreign investors feel - the unofficial cost is very high" - Sok Hach, Director of the Economic Institute of Cambodia

This is not good. We need to find out what it is specifically that our investors are having problem with and do everything that we can to help them.

Anonymous said...

It is true that economic growth in Cambodia sustains only those top leaders and tycoons, but Cambodian general people are being exploited and they are living with severe poverty.

Political system in Cambodia is mafia system because the top leaders can manipulate Cambodian people with many ways such as using their own money to build bridges, roads, schools, hospitals, pagodas or offer them gifts such as touring, bonus, scarves, rice, or other commodities...etc

Mafia state is operating their country though gifts and family patronage.

KY

Anonymous said...

What kind of a trickle down economy is this? I don't even know how long dirt poor Cambodian people will have to wait to see the benefit of the current economic system before the next political instability!

When something doesn’t work and it had to be destroyed!

Anonymous said...

Wrong, 4:21, many NGO, including World Bank IMF, and UN, hailed us not that long ago for reducing poverty in Cambodia and for boost up our income/capita... . I bet you got your news from the SRP, HRP, or KKF network or something.

And sure, there are still more people who haven't seen any benefit from the booming economy and they were driven poorer by the inflation. We know about that, but it is impossible for everyone to get benefit from the booming economy at the same time, but they

The best way to explain this Latency Phenomena it to use the Katrina Rescue Process. There is just impossible to drop food to everyone at the same time. Some people will just died by the time the food arrive. There is nothing anyone can do about it. Get the picture?

Anonymous said...

To 5:31AM

Stupid Mother Fucker! What kind a fuck up analogy is that? You always claimed that it is impossible to help every dirt Cambodian people "to get benefit from the booming economy at the same time" but don't you know that for those dirt poor Cambodian people who can't make it in the booming economy or in this world due to mental illness or special disability or whatever the circumstance is and the Cambodian government has an obligation to help them to succeed in this world too and at the same time encourage those successful Cambodian people to be more successful!

Now back to your argument about Katrina disaster, Katrina is something that happens over night which overwhelms the rescue system but eventually those people received some forms of help! Now what about Cambodian booming economy? Cambodian government has many years in advance to come up with the planning to anticipate the need of dirt poor Cambodian people in the growing economy due to inflation and basic services such health care, job training, housing, price of foods and energ(gasoline, electricity,gas),... but the only thing these Vietcong slave Cambodian government officials are interested is their self-enrichment aiming to commit corruption and more corruption to bankrupt Cambodia and the Cambodian people!

So much for your damn stupid picture because you fail to see the bigger picture!

Anonymous said...

5:31AM

You cannot compare those NGOs (IMF or ABD...etc) of having equal status like a state of Cambodia. It is absolutely different.

Personally, I have not sided with any specific political party; I said what is true and to serve innocent Cambodian people.

It is good excuse for the government to provide gifts as the emergency aids, but in reality, government has no willingness to boost economic through the strengthening rule of laws, anti-corruption; good governance and decentralization...etc

Cambodian people are exploiting by Government since 1998 to present, and the tendency is still not changed.

MAFIA STATE, LEADER PROJECT ONLY TO LAST HIS/HER POWER, NOT TO DO FOR THE SAKE OF PEOPLE.

KY

Anonymous said...

Well, if you are talking about disable people with AIDS, Cancer, or whatever, there is little we can do for them. Currently, they are being handled by NGO. We are not up to the point where we have welfare program yet. Are you kidding me? Right now our taxes is so low that our country is almost tax free. How can we have any welfare program?

As for Katrina food distribution, you have enough food but you still can't get to the people in a flash to save them no matter what. You'll always have victims.

As for us we are growing. What that mean is we got 10% more money just for 10% of the people not for everyone. We just don't have enough yet. That is why we must continue to grown. And as long we can maintain a heathly grow that exceeded in inflation, ultimately, we will reached a full grown. That is the point where everyone received the benefit of the booming economy. Get it now? Thus, some people will have to wait longer. I estimated that by 2020, we no longer needed international aid with a good growth rate as we have in the last 3 years or so.

Anonymous said...

To 7:28AM
You are a little bit hypocritical that Cambodia is disable with no tax-system.
1. Welfare system in Cambodia is really impossible while most Cambodian people are peasantry and they don't have stable job with stable security to inject their money into welfare system. Welfare means any support to the poor, to the disables as well as the seniors and unemployed. Cambodia is not ready for this welfare implementation.

However, welfare from government agents and leaders are practicing entirely throughout country especially during national election - this is called "Mafia State".

2. Cambodia is having tax system though you don't pay it directly but it is paid by the people indirectly. Example, when people buy one shoe costs 30000 riels, it means the real price of this shoe is only 15000 riels. So where is another 15000 riels? it goes to government tax and sale profit. This is tax that government uses it for party-benefit mostly, not for the national revenue.

Cambodia losses national revenue around 500 millions dollars each year that this money is from taxation; but it might be plundered by government.

KY

Anonymous said...

11:41, I didn't say that Cambodia has no tax system. What I stated what our tax was rock bottom. Thus we cannot afford to have any welfare of any kind.

And you are exaggerating our sale tax quite a bit. It is far from 50%. With that type of tax rate no one will do business in Cambodia.

And you also exaggerate our lost revenue also. it is far from 500M. At most, I say between 75-150M. It depends if we have a good year or bad year, hehehe.

Anonymous said...

Check again:

It is not 50% tax. I mean both for the rest 50% is for tax and seller's profit. I hope you should wear the glasses.

I don't exaggerate the loss of national revenue. I speak out according to Economic Research Center in Cambodia led by Sok Hach.

**Economic growth in Cambodia is not for the people, it is essentially for the lasting power of those cronies and family clans...etc But through the social pressure it has slightly distributed to the poor. While those cronies receive 500$ a day, Cambodian people receive 0.20$**

KY

Anonymous said...

Whatever, but our sale taxes can't be more than 5%, except for a certain items like communication, gasoline, ....

Economic growth is for everyone, rich an poor; there is no other ways. World Bank, IMF, and others unanimously ackowledges improvement in the standard of living for the people. Of course, we know there are some people who have yet to be benefited, but we will as long we can maintain the healthy growth. I just hope we don't screw thing up with a "get rich quick" scheme like we did in 1970.

Anonymous said...

I hope you have no intention to compare present Cambodian government with KR regime about the economic growth.

Yes, those NGOs do report about the healthy growth but social gap, under poverty line and unfair economic distribution in Cambodia is repeatedly reported by World Bank or other independent NGOs...with this report, government has slowly improved it. Government has changed it slowly like a creeping turtle traveling in a 1000km distance. Doing this is skeptically in order to inject more wealth into bank accounts of those cronies and family clans....

KY

Anonymous said...

Yeah, but the turtle speed is normal because the economic growth is riding on an exponential curve, and we have passed most slow area of the curve already. I did an estimate a few year back and I remember finding the knee of the curve located near 2016, and now we started to see some noticeable growth as we continue to approach the knee of the curve.

As for social gap, we are not in the position to resolve it yet without impacting the economy, but we will sometime in the far future when we are fully grown.