11 January 2008THE REAL CAUSES OF ACCELERATING INFLATION IN CAMBODIA
In a 9 January 2008 letter responding to questions from union leader Rong Chhun about the causes of accelerating inflation in Cambodia, Prime Minister Hun Sen cited four reasons to try to explain the phenomenon:
- Increase in consumer demand associated with Cambodia's economic growth.
- Increase in crude oil price on the international market.
- Avian flu and pig diseases in neighboring countries.
- Fall of the American dollar on the currency market.
- There is no effective competition in our country because of countless de facto monopolies associated with government corruption. No or weak competition leads to higher prices.
- Taxes on petroleum products, especially gasoline, are much higher in Cambodia than in neighboring countries (1,200 Riels per liter for gasoline in our country versus 500 Riels in most countries in our region).
- The Riel, our national currency which is practically pegged to the US dollar because of the weak foundations of our economy, has fallen sharply against other currencies in the region (the Filipino Peso and the Thai Baht have appreciated by 20 percent vis-à-vis the US dollar over the past 12 months).
- The National Bank of Cambodia have issued bank notes (paper money) without any independent and proper control and monitoring of the money supply increase, in order to meet political and election requirements of the ruling CPP (vote buying), thus fueling inflation.
Opposition leader
Former Finance Minister
13 comments:
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The four points addressed by Hun Sen - clearly shown he know nothing or he is illiterated and ignorant.
Don't blame on the idiot; instead, blame his economic advisors.
This idiot knows nothing about economic policy.
Look around Cambodia, you'll see how devastated can be because of this careless idiot.
Bravo PM Sam Raingsy!
PM. Hun Sen mentioned like that because he suppost his people do not know economic.
He is fully aware of all of these points raised by Mr. Sam. MR. Hun Sen's points are to represent to broad picture of current world events. These events unlikely to cause much effect on Cambodia's inflation if he is able to manage these impact better.
But Mr. Sam have given the real domestic factors in Cambodia that have most impact on inflation.
I thought Keat Chhon were supposed to address the issues of economy in the country.
When the educated person talks the economy issue, it makes a lot of sense. Especially, Mr. Sam Rainsy had a background in accounting. But, When an uneducated person like Hun Sen talked, he just fabricated the issue and makes uneducated Khmer people believe his trash talk. Kean Chhun has no economic background. He was a former Khmer rouge who loves to kill Khmer people and his background was Nuclear engineer where he never practiced. He was busy to do revolution to kill his own people. These French students in early 60 and 70 didn't go to school. They were busy planning how to win the war. The French produced a lot of communist students to destroy Cambodia. The US won't allow this to happen except the stupid French. No wonder the French education leads no where.
They know a lot in school, but know nonething in practical.
His PhD mean nothing.Give him an FFF and step down peacefully.qa
We are realized that the tactics and responding from Hun Sen (CPP) has been always making excuse these or that. CPP has never got into a realistic solution for Cambodian nation.
But CPP is good in manipulating and intimidating to their own peoples.
Sam Rainsy is a real Khmer patriotic leader, his answer is realistic and practical.
Bravo Sam Rainy!
KY
Thank you Mr. Sam Rainsy for making AH HUN SEN Vietcong slave eats his own words! Now it is up to AH HUN SEN advisors to come up with a better excuse! Ahhahhahhahahha
Clearly, the SRP has education in the West. You're hit the nail on the head. Watch out, PM Saddam HunXen will refute you.
Hun Sen is trying to claim credit for his undone job. Anyone... even with half a mind will not believe him. I started with a straight but I have learned to understand of his evil spirits with his politics. Anyone believe will later be sorry by it.
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