By Ros Dina
Ka-set
Cambodian prime Minister Hun Sen once again reacted strongly to the alarmist conclusions released in a report by the Economist Intelligence Unit (EIU) , a branch of the British group The Economist, according to which Cambodia is amongst countries at high risk of political instability due to the global economic crisis.
Released at the end of March, the report ranks Cambodia fourth among countries where risks of social insurrection and political instability are at their highest after Zimbabwe, Chad and the Democratic Republic of the Congo, at the same level as Sudan but before Iraq, Haiti, Pakistan and Afghanistan.
The government already denounced the “political orientation” of the report, and Hun Sen quoted that very argument in his opening speech for the Fifth Asia Economic Forum (AEF) on Monday April 6th in Phnom Penh. “[This report] is a political attempt to stop flows on investments [in Cambodia], since here, we still manage to attract foreign investors”, he denounced.
According to the prime Minister, “no project” was withdrawn by investors. And he gave as evidence the “current” building of hydroelectric power plants which is “gaining pace” with the cooperation of China. Hun Sen also said he recently met a delegation of American investors working in countries which are part of the ASEAN, who allegedly said they were “ready to come and do business in Cambodia”.
For the head of government, Cambodia is not at risk of suffering a political crisis because of famine, as feared by economists at the EIU. If those experts mean this, it is because they “were wearing glasses with a prescription too strong for their eyes”, he said ironically. The risk of scarcity is small, the prime Minister added, since , on the contrary, the country is faced with crisis in rice exports as important stocks have not been sold abroad yet.
Hun Sen then urged the Cambodian population to rally and evade pessimistic predictions made by the economists. The head of Government prided himself on the fact that “In 2005, we forecast a growth rate for the economy situated between 1.6% and 2.4% in Cambodia. But we managed to climb all the way up to 13.3% and for five consecutive years, the country’s rate for economic growth reached an average of 10.4%”.
Predictions released by the main regional and international institutions for 2009 were recently revised downwards; especially those published by the International Monetary Fund (IMF) which now fears recession might befall Cambodia. The IMF bet on a -0.5% negative growth rate. At the Asian Development Bank (ADB), experts reckon for their part that the growth rate of the Cambodian GDP will be around 2.5%.
Besides, the Prime Minister also stressed that the Council of Ministers adopted on Friday April 3 a bill for the rectification of the 2009 Budget Law, intended for the support of agriculture along three lines: short-term loans to buy producers some rice at a reasonable price and ensure food security and the stability of prices; medium-term loans for companies in charge of transforming rice, in order to reinforce capacity for storage and drying; finally, medium and long-term loans with a view to support investments relating to the transformation of agricultural produce, to fulfill local needs and exports.
In a mission conclusion released in early March, the IMF advised the Cambodian government to allow budget deficit to rise around 4.75% and inject some 500 million US dollars in support of national economy. Opposition leader Sam Rainsy also put forward the idea of a stimulus plan, as several dozens of garment manufacturing factories closed down in the country and more than 50,000 workers were left jobless.
Released at the end of March, the report ranks Cambodia fourth among countries where risks of social insurrection and political instability are at their highest after Zimbabwe, Chad and the Democratic Republic of the Congo, at the same level as Sudan but before Iraq, Haiti, Pakistan and Afghanistan.
The government already denounced the “political orientation” of the report, and Hun Sen quoted that very argument in his opening speech for the Fifth Asia Economic Forum (AEF) on Monday April 6th in Phnom Penh. “[This report] is a political attempt to stop flows on investments [in Cambodia], since here, we still manage to attract foreign investors”, he denounced.
According to the prime Minister, “no project” was withdrawn by investors. And he gave as evidence the “current” building of hydroelectric power plants which is “gaining pace” with the cooperation of China. Hun Sen also said he recently met a delegation of American investors working in countries which are part of the ASEAN, who allegedly said they were “ready to come and do business in Cambodia”.
For the head of government, Cambodia is not at risk of suffering a political crisis because of famine, as feared by economists at the EIU. If those experts mean this, it is because they “were wearing glasses with a prescription too strong for their eyes”, he said ironically. The risk of scarcity is small, the prime Minister added, since , on the contrary, the country is faced with crisis in rice exports as important stocks have not been sold abroad yet.
Hun Sen then urged the Cambodian population to rally and evade pessimistic predictions made by the economists. The head of Government prided himself on the fact that “In 2005, we forecast a growth rate for the economy situated between 1.6% and 2.4% in Cambodia. But we managed to climb all the way up to 13.3% and for five consecutive years, the country’s rate for economic growth reached an average of 10.4%”.
Predictions released by the main regional and international institutions for 2009 were recently revised downwards; especially those published by the International Monetary Fund (IMF) which now fears recession might befall Cambodia. The IMF bet on a -0.5% negative growth rate. At the Asian Development Bank (ADB), experts reckon for their part that the growth rate of the Cambodian GDP will be around 2.5%.
Besides, the Prime Minister also stressed that the Council of Ministers adopted on Friday April 3 a bill for the rectification of the 2009 Budget Law, intended for the support of agriculture along three lines: short-term loans to buy producers some rice at a reasonable price and ensure food security and the stability of prices; medium-term loans for companies in charge of transforming rice, in order to reinforce capacity for storage and drying; finally, medium and long-term loans with a view to support investments relating to the transformation of agricultural produce, to fulfill local needs and exports.
In a mission conclusion released in early March, the IMF advised the Cambodian government to allow budget deficit to rise around 4.75% and inject some 500 million US dollars in support of national economy. Opposition leader Sam Rainsy also put forward the idea of a stimulus plan, as several dozens of garment manufacturing factories closed down in the country and more than 50,000 workers were left jobless.
9 comments:
I agreed with PM's response. Cambodia is now less risk than Thailand. If EIU isn't bias, why didn't they address Thailand's economy situation? It's engaging civil war within, down south with Muslim, with neighboring Cambodia...
Read this article:
7 April 2009--Same Conclusion, Different Source
Recently The Economist magazine's Intelligence Unit conjectured that Cambodia is at a high risk of political instability and social unrest because of several factors. Now Forbes magazine has listed Cambodia as one of the ten most corrupt nations, reporting allegations that money for the UN-backed Khmer Rouge trials is being stolen by government officials. It noted: "Funding for a 13-year effort to prosecute acts of genocide in a special United Nations court has run out before trials could even begin." A ruling party lawmaker commented "I don't know what they based their findings on to make this report," even as he spoke of the law against corruption--put to the legislature in 1994--which has not yet been approved.
9:40 ever go to Thai Land?
Take a peek from the border see if they live in the monkeyhouse like us?
9:40 ever go to Thai Land?
Take a peek from the border see if they live in the monkeyhouse like us?
Thai have alot to fall back, boy PhD.
we advise foreign ingenuity and economists to come to cambodia and see for themselves because it is unfair to be gullible to the bias reports! seeing is believing! please allow great opportunity for cambodia. we suffered long enough already. we want a lot of rich nations investments in our country so everyone can enjoy the good life as well in cambodia. it is possible to achieve good result in cambodia. we are a magical country. once you visited and saw cambodia, you may never want to leave us again. we love you long time! god bless cambodia.
To have good investments in Camboda
1-All Cambodian leaders need to be replaced by a group of high integrity one with high moral of resposibility and very neutral.
2-All criminal activities sucha as dailight robberies, gangsters, big brother pictures must all gone.
3-Laws must be central to everyone
4-Justice system must be strong from influencing by politician.
5-No one should be allowed above the law.
6-Police and military leaders must be detached from politicians.
7-Salary and wage must adjust to a liveable level. If not everything will be stolen by staffs who claim low salary.
At present all international investors have regarded Hun sen as a trouble maker and very untrust worthy. They don't want to waste their times and moneys for any country with this kind of leadership.
Areak Prey
3,30am
1 can you also point out that who are those integrity people?
2 can you give a detailed solution of how get rid of those criminals?
3 can you propose what law is suitable for Cambodia?
4 can you tell who can be the judges to be out of political influence?
5 can you propose someone who will not sit wbove the law?
6 What strategy to make those military detach from politicians?
7 how much salaries should they be> and how can they be funded? porvide a detail solution, otherwise it is only a talk like those incumbent politicians too.
3:30AM again I'm so annoyed with your English.
As for its content, kindly just answer 8:25AM above.
The EIU's opinion won't stop the short term/speculative cut-and-run petty gamblers sorry investors from Shanghai/Bangkok/Spore/Taiwan/Sth Korea. These are the ones we don't need simply because they impact on employment is microscopic. They actually rob the local middle class of splendid business opportunities in tourism and agri business. EIU is simply repeating a view held among the serious money. i've been wondering why for example, after more than 10 years of stability you can hardly count on one hand big name companies from Japan, Europe or USA putting in decent long term dough.
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