Money Matters
Neither very democratic nor well-run, the country has nevertheless seen economic growth of more than 10% a year since 2000
Cambodia’s ruling party won re-election in an imperfectly democratic ballot on 27 July. Corrupt, impoverished, with high population growth and poor infrastructure, the country might seem a basket case.
Yet, with Vietnamese backing and nearly 10% annual economic growth since 2000, it may be turning into another Asian Tiger.
Cambodia is neither very democratic nor very well-run. Its leader Hun Sen was backed by Vietnam when it overthrew the Khmer Rouge in 1979, and he has been prime minister since 1985.
Cambodia ranks at No. 162 on Transparency International’s 2007 Corruption Perceptions Index, well below the threshold at which normal business becomes difficult—a sale of land to foreign investors in 2007 seems to have benefited mostly the ruling elite.
Like its neighbour Vietnam, Cambodia is suffering an imported inflation problem because of rising food and fuel costs. The government’s solution has been to cease reporting the country’s consumer price index “to avert the possibility of disorder and turmoil”.
Nevertheless, there are signs of progress. Cambodia has enjoyed economic growth of more than 10% a year since 2000, led by its main export industry, garments.
Its annual population growth has declined from 2.3% in 2000 to 1.8%, facilitating rapid economic growth by reducing the strains that high population growth places on education and infrastructure.
Cambodia’s public sector absorbs only 12% of its gross domestic product (GDP), its budget and payments are close to balance, and it expects to open a stock exchange in 2009.
Foreign investment is the key, as it has been in Vietnam, where it totalled 65% of GDP in the first half of 2008. Cambodia permits 100% foreign ownership in most sectors, and foreign investment is expected to double in 2008 from $2.7 billion (Rs11,475 crore today) in 2007 (30% of GDP), with China and South Korea the leading investors.
Corruption and a lack of public sector transparency stand in the way.
But with rapid growth in Vietnam, greater prosperity in Thailand, its other neighbour, and the US market open to its exports, Cambodia could be set to become an Asian Tiger in its own right.
Cambodia’s ruling party won re-election in an imperfectly democratic ballot on 27 July. Corrupt, impoverished, with high population growth and poor infrastructure, the country might seem a basket case.
Yet, with Vietnamese backing and nearly 10% annual economic growth since 2000, it may be turning into another Asian Tiger.
Cambodia is neither very democratic nor very well-run. Its leader Hun Sen was backed by Vietnam when it overthrew the Khmer Rouge in 1979, and he has been prime minister since 1985.
Cambodia ranks at No. 162 on Transparency International’s 2007 Corruption Perceptions Index, well below the threshold at which normal business becomes difficult—a sale of land to foreign investors in 2007 seems to have benefited mostly the ruling elite.
Like its neighbour Vietnam, Cambodia is suffering an imported inflation problem because of rising food and fuel costs. The government’s solution has been to cease reporting the country’s consumer price index “to avert the possibility of disorder and turmoil”.
Nevertheless, there are signs of progress. Cambodia has enjoyed economic growth of more than 10% a year since 2000, led by its main export industry, garments.
Its annual population growth has declined from 2.3% in 2000 to 1.8%, facilitating rapid economic growth by reducing the strains that high population growth places on education and infrastructure.
Cambodia’s public sector absorbs only 12% of its gross domestic product (GDP), its budget and payments are close to balance, and it expects to open a stock exchange in 2009.
Foreign investment is the key, as it has been in Vietnam, where it totalled 65% of GDP in the first half of 2008. Cambodia permits 100% foreign ownership in most sectors, and foreign investment is expected to double in 2008 from $2.7 billion (Rs11,475 crore today) in 2007 (30% of GDP), with China and South Korea the leading investors.
Corruption and a lack of public sector transparency stand in the way.
But with rapid growth in Vietnam, greater prosperity in Thailand, its other neighbour, and the US market open to its exports, Cambodia could be set to become an Asian Tiger in its own right.
18 comments:
If Cambodia can be a tiger economy raun by a group of sharks and crocodiles, then the whole world must have to close down their schools and academic institutions and come to Cambodia to learn experiences these few hungry sharks and hungry crocodiles. Areak Prey
Stupid comment, you go to hell
Whatever you do, remember who gave you those golden stars on your shoulders.
I am...., and therefore, I do not need to wear those stars, only those who serve under me.
2:42 PM
Again, it's really, really to bad that you cannot even handle a simple truth. Yes, I don't blame you, sometimes inconvenient truth does hurt. In fact, you're well deserved it. However, this is just the beginning -- you're not there yet.
Did the Cambodian Prime Minister Hun Sen receive a congratulatory call from the US embassador in Phnom Penh after the ruling party trumpeted their electoral landslide victory?
If not, the election was not fair or free.
Cambodia will become the Asian Tiger in several reasons:
1. Oil
2. Economy Grows sharply
3. The main backing is China, not Vietnam
4. Huge Korean Investment.
I really sorry that some newspaper don't know anything about Cambodia today and wrote the wrong purpose of Hun Sen.
Hun Sen would lead Cambodia to become the Tourist and Argriculture, and Industy zones backing by China and Korean, and Japan.
3:50 PM
Don't be too sure!
I think you have overreacted to the article.
3:50 PM
I'm certain your wife is also being rear-ended by your de facto prime minister.
My suggestion is don't let her (your wife) spread her so she can fly, instead, have her spreaded her legs so your ballots stealer may enjoy all the pleasure.
Cambodia is not become an Asian tiger but HUN XEN YES!
HUN SEN IS BECOME AN ASIAN TIGER THAT IS EATING HIS OWN PEOPLE, ISN'THE?
KONE KHMER,
I'm thai.i know the feeling of both thai and cambodian people.It's just the government idea ,it doesn't mean our thai people wanna do that.we love peace,just don't hate each other.
Thanks,
Don't blame our crazy prime minister.
OUR TIGER HUN SEN HAS ATTRACTED A LOT OF INVESTMENTS MAINLY FROM
- CHINA(father of POL POT),
- VIETNAM (father of HUN SEN),
- THAILAND ( TAKSIN,SAMAK close friends of HUN SEN)
the kind of CROCODILE countries who guide KHMER to nothing.
BRAVO! KHMER WILL SOON BE PART OF THE HOMELESS CLUB CHAM, KHMER KAMPUCHEA KROM.
I think it possible if the corruption is diminished and
Political in people sector is
more strenght.
Your leader and his policies is
the problem.
Of course, Cambodia can become a paper tiger in Asia.
Oh year very true, Alot of prediction that oil can fuel Cambodia big time.
HUN SEN must put this money into education so he can fuel economy with educated people.
Now all we need to do is to educate our people.
We need human resource. We have all natural resources.
HUN SEN go warf!!!!!!warf!!
1:33
Go fuck your self
From Hun Sen and the CPP past legacy.
The oil will fuel their wallets big time.
They haven't start pumping the oil yet, that the CPP already warn that not everybody will benefit from the oil.
So forget about the oil benefiting Cambodian economy.
of course, we can. we got to start somewhere somehow. i mean every nation on the face of planet have to get started somewhere. there's always first time for everything. so, why would that exclude cambodia? only jealous people are against prosperity in cambodia. get used to it; cambodia is here to stay!!!!!!
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