SRP MP Mu Sochua barred from economic forum, German ambassador boycotted the forum: Hun Sen's discrimination policy

Mu Sochua and the German Ambassador struggle to get the SRP lawmaker into the conference Thursday. (Photo by: TRACEY SHELTON)

SRP lawmaker barred from forum, protests opposition exclusion

Friday, 06 February 2009
Meas Sokchea
The Phnom Penh Post

During his keynote address at third Cambodia Economic Forum, Prime Minister Hun Sen decries Mu Sochua's attempt to enter.

OPPOSITION Sam Rainsy Party lawmaker Mu Sochua was prevented from attending the third Cambodia Economic Forum, which was held Thursday at the Raffles Hotel Le Royal and featured a keynote address by Prime Minister Hun Sen.

Mu Sochua showed up at the conference venue and approached the door but was prevented from entering by bodyguards, she said at a press conference after the incident.

At the press conference, she told reporters that all leaders need to be involved in addressing the global financial crisis. The forum, attended by members of the ruling Cambodian People's Party and international donor organisations, was titled "Increasing Cambodia's Competitiveness for Growth and Poverty Reduction in the Face of Global Economic Crisis".

"Prohibiting me from joining the forum showed that the government wants to lead our nation alone," she said. "But allowing the government to lead alone will lead to a social, political and economic crisis."

Requests ignored

She said SRP officials had addressed a letter to the Supreme National Economic Council requesting permission to attend the forum, but that the letter had gone unanswered. SRP President Sam Rainsy wrote a letter Tuesday to the UN Development Program also requesting an invitation.

Mu Sochua said governments in other countries had enlisted opposition parties and other public- and private-sector leaders to cope with the economic downturn.

"We are leaders," she said. "All leaders must have responsibility. I am a minority parliamentarian who is a participant, listener and observer."

Hun Sen said during his speech that opposition leaders should not have shown up at the forum without invitations, calling their actions an affront to "government discipline".

Increasing Cambodia’s Competitiveness [-All grandiose talk but no real action?]

Saturday, 7 February 2009
Press Release: UNDP
Cambodia Economic Forum

• Increasing Cambodia’s Competitiveness
• For Growth and Poverty Reduction in the Face of the Global Financial Crisis

PHNOM PENH, 5 FEBRUARY 2009: Despite remarkable recent economic growth and steady progress towards reducing poverty, the effects of the global financial crisis are now being felt in Phnom Penh. The question of what Cambodia can do to mitigate the effects of this crisis is becoming increasingly urgent as tourism numbers taper off and garment factory orders dwindle. Key Cambodian policymakers, development partners and private sector stakeholders met today at the Third Cambodia Economic Forum (CEF), hosted by The Supreme National Economic Council (SNEC), to debate possible rapid policy responses that could prevent Cambodia’s recent gains from being eroded.

This year’s forum focused on “Increasing Cambodia’s Competitiveness for Growth and Poverty Reduction in the Face of the Global Financial Crisis” and was presided over by Prime Minister Samdech Hun Sen. A range of policy perspectives and options on how to improve Cambodia’s competitiveness and sustain its rapid economic growth in the context of the worldwide economic situation were today presented to the Royal Government of Cambodia, the private sector and development partners. Discussion focused on policies to firmly regain macroeconomic stability, diversify sources of growth, increase productivity, expand market access, and enhance trade while continuing to reduce poverty.

“The Government is fully committed to systemic measures to limit the impacts of the global financial crisis on Cambodia’s financial system and its economy”, said Prime Minister Samdech Hun Sen in his keynote address at the forum as he elaborated key measures taken by the government covering different aspects of macroeconomic, structural and sectoral policies.

“As Cambodia takes its place on the international stage – with its accession to the World Trade Organisation, taking a stronger role in the UN and sending peacekeepers to Sudan – it also grows more susceptible to the economic shocks affecting the rest of the world,” said UNDP Resident Representative Douglas Broderick at the event. “Integration with regional and global economies exposes Cambodia to new risks along with new opportunities.”

Four groundbreaking studies were presented by SNEC with the support of UNDP, the World Bank and the Asian Development Bank. Cambodia: Key Aspects of Competitiveness, identifies sectors where Cambodia has the potential to gain competitive advantages. Cambodia: Sustaining Rapid Growth in a Challenging Environment identifies the main sources of growth, the key binding constraints to growth, and strategies to alleviate those constraints and to manage rapid growth. The Financial Crisis and its Impact on Cambodia’s Sustainable Economic Development and Explaining Inflation in Cambodia provide the context essential for related research and analysis aimed at addressing the impacts of the crisis on Cambodia and improving lives in the country.

“Today’s [forum] provides a useful spotlight on the current economic challenges facing Cambodia, and on ways to counter the worsening impact of the global financial crisis and ensure long-term sustainable and equitable growth that results in a better life for all Cambodians," said World Bank Country Manager Qimiao Fan

"A rigorous assessment of the vulnerabilities the Cambodian economy experienced as a result of the economic shocks of 2008 can help provide a sharper focus on the priorities which need to be addressed for Cambodia's future competitiveness and sustainable growth," said Arjun Goswami, ADB Country Director.

The CEF is an annual conference organised by SNEC with support from UNDP and aims to present concrete, well-researched policy perspectives, to discuss Cambodian economic policy options with the Royal Government of Cambodia and to open dialogue with key experts and stakeholders on specific and practical recommendations for policy formulation and implementation. The CEF provides an opportunity to collect feedback and input from partners and experts, enriching the analysis and policy making process.

Today’s participants included senior government officials from both ministerial and provincial levels, diplomats, development partners, and representatives from the private sector, national and international NGOs, civil society and academia.

The first CEF, held in January 2006 and presided over by the Prime Minister, focused on an analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT) of the Cambodian Economy and on sharing international experiences for emerging petroleum and mining producing countries. In May 2007, the second CEF focused on Agriculture and Rural Development, specifically on pro-poor growth policies for the improvement of rural livelihoods.

It's everybody else's fault ... NOT mine: Hun Sen biting the hands that feed him

Prime Minister Hun Sen speaks Thursday at the Third Cambodia Economic Forum in Phnom Penh. (Photo by: Tracey Shelton)

PM lashes out at developed world, donors over crisis

Friday, 06 February 2009
Kay Kimsong
The Phnom Penh Post

Hun Sen blames corruption and mismanagement in developed world for current global downturn at forum aimed at addressing economic problems.

HUN SEN lambasted Western countries Thursday for the economic crisis, blaming them for corruption and mismanagement at an economic conference in Phnom Penh.

"Rich countries are only blaming poor countries for corruption - they never blame one another," he said at the Third Cambodia Economic Forum at Raffles Le Royal hotel.

Donor organisations were not spared from the attacks, with Hun Sen singling out the International Monetary Fund, World Bank and Asian Development Bank (ADB) for making the crisis worse.

"Powerful nations no longer have the right to advise small countries," he said.

He announced a series of measures to cut wasteful spending and provide additional funding to support the local economy.

"We won't spend money buying cars for government officials," said Hun Sen

Among the cost-cutting measures was a 50 percent cut in fuel spending for government cars in line with lower petroleum prices.

"We are changing our policy. Before we approved US$7.5 million for each ministry to buy gasoline, but now we will provide only $3.75 million," said Hun Sen.

He said that cutting government waste would be a key part of the 2009 budget.

"We cannot just spend. If the prime minister does not manage the budget, the economy will be dead."

Slowdown coming
Development organisations recommended a range of reforms and crisis-fighting measures.

World Bank Country Manager Quimiao Fan warned that the slower economic growth in 2008 was "just a warning" before an even sharper downturn for 2009.

He pressed for deeper regional integration, better management of natural resources and more infrastructure investment.

"Rich countries are only blaming poor countries for corruption."

"Cambodia should look to neighbouring markets in Asia, where the contraction may be less pronounced," he said.

ADB Country Director Arjun Goswami highlighted increased poverty as a side effect of the crisis, saying about two million people in the Kingdom were close to the poverty line.

"This new external shock will sharply curtail, at least over the next two or three years, three of the four Cambodian sources of growth: garment exports, tourism and construction," he said.

Hun Sen rejected opposition demands for a $500 million stimulus package.

"That request is not logical - it is opposition logic," he said. Opposition lawmakers were barred from the event.
UN Development Program Resident Representative Douglas Broderick said Cambodia has achieved remarkable economic growth, but that wealth had not trickled down.

"We are grateful for the substantial gains made toward sour shared goal of reducing poverty.... Clearly we want to see those gains preserved, while protecting the most vulnerable 1.8 million Cambodians from the combined effects of poverty and this continuing crisis," he said.
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ECONOMIC POLICIES

A look at the key initiatives proposed at Thursday's 3rd Cambodia Economic Forum

Stimulus package

Exact figures were not provided, but the government says it will boost spending on infrastructure, social programs and agriculture.

Reserve requirements

The bank reserve requirement will be reduced further in 2009 from 12 percent.

Tourism reform

No additional funds will be given to the sector, but a working group is meeting to recommend policy changes.

Garments industry

One-percent profit tax has been eliminated and export promotions are under way.

Budget reform

Government to cut spending on petroleum, and the prime minister pressed petrol companies to reduce pump prices in line with oil slump.
Agriculture spending

The government hopes to boost agriculture yields and processing capacity through loans and grants. The Rural Development Bank received US$12 million in 2008 and is set to get $18 million in 2009.

Sacrava's Political Cartoon: Hun Xen's Fairy Tales

Click on the cartoon to zoom in

Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)

Sam Rainsy rejects debriefing session

(Photo: Cambodge Soir Hebdo)

03 Feb 2009
By Alain Ney
Cambodge Soir Hebdo
Translated from French by Luc Sâr
Click here to read the article in French

Cambodia’s opposition leader does not appreciate the fact that he was not invited to attend the 3rd Cambodian Economic Forum. The UNDP plans to organize a workshop for MPs, however, for Sam Rainsy, this is not enough in view of the worldwide crisis.

On Wednesday 03 Feb, Sam Rainsy sent a letter on this issue to Jo Sheuer, UNDP director in Cambodia.

“I strongly regret that the 3rd Cambodian Economic Forum organized by the Supreme National Economic Council in collaboration with the UNDP, the World Bank and the Asian Development Bank will not include Members of Parliament at the most critical time when Cambodia must deal with the global economic crisis,” the SRP leader complained. The forum, which will be held on 05 Feb, will be attended by government officials and by political decision-makers.

Given the current situation, Sam Rainsy is not satisfied with just UNDP workshop organized for MPs and civil society officials to be held at a later date.

MPs not invited to attend 3rd Cambodian Economic Forum: Sam Rainsy

KINGDOM OF CAMBODIA
Nation Religion King

National Assembly

Mr. Jo Scheurer
Country Director
UNDP Cambodia
February 3, 2009

Subject: 3rd Cambodian Economic Forum

Dear Mr. Scheurer,

I strongly regret that the 3rd Cambodian Economic Forum organized by the Supreme National Economic Council in collaboration with the UNDP, the World Bank and the Asian Development Bank will not include Members of Parliament at the most critical time when Cambodia must deal with the global economic crisis. I am well aware that the forum is initiated by the government and designed to be a discussion between government officials and policy makers, however the severity of the crisis demands a dialogue of all stakeholders who will sit together at the same table to find sound solutions for the whole nation. I am also aware of the workshop UNDP will organize for Members of Parliament and members of the civil society where experts will release research findings, however the situation requires dialogue with most senior members of the government and not a just a debriefing by experts.

Only today is the public aware of the holding of information on the high rate of inflation by the Minister of Planning prior to the 2008 elections. This lack of transparency hurts Cambodia and maintains a system of governance that can lead to even more disastrous economic, social and political consequences. By being part of such a system, we are all guilty and are accountable to the people of Cambodia who are suffering from not just political manipulation but gross violations of their rights to information and their right to participation. We must not condone such undemocratic practice but it is our responsibility to ensure that barriers to information be lifted at all cost.

The 3rd Cambodian Economic Forum will be of no purpose if it is just a mere occasion to hear speeches and discussions that does not translate into immediate actions against the current economic storm.

Sincerely yours,

(Signed) Sam Rainsy
Sam Rainsy Member of Parliament

cc: Mr. Qimiao Fan
World Bank, Cambodia
Mr. Arjun Goswami
Asian Development Bank Cambodia