Economist Sok Hach (Photo: EIC)By Chun Sophal
The Mekong Times
Soaring inflation is a painful thorn in the side of Cambodia’s burgeoning economy, but government officials are trying to soothe concerns with assurances that inflation wil be under control by the end of 2008.
“We will reduce the inflation rate to single digits starting from the end of 2008 and into next year,” said Hang Chuon Narun, secretary general of the Ministry of Economy and Finance. He cited the government’s recent efforts to encourage agriculture sector investment, subsidize oil prices, and increase banks’ reserve capital as reasons why inflation would decrease.
Sok Hach, director of the Economic Institute of Cambodia, said that Cambodia would be unable to reduce inflation if open competition with products produced by various dominant Okhna groups is not allowed.
“The government has to decrease taxes on all goods in general and lift barriers to competition in trade,” he said. “I believe we can help reduce inflation to some extent if we have a competition law and implement it well.”
Cambodia, which currently has an inflation rate of over 10 percent, has yet to introduce a trade competition law even though it is a requirement for the Kingdom’s continued membership of the the World Trade Organization.
Economists say that the soaring inflation in Cambodia is partially due to the rising global oil prices, the devaluation of the US dollar and increasing international food prices. Internal factors such as high goods taxes and the lack of open product competition exacerbate the situation.
John Nelmes, International Monetary Fund resident representative for Cambodia, said increased cash flow in Cambodia is linked with the country’s inflation rate. “I think that increasing obligatory reserve funds to reduce growth is a positive step,” he said.
Early this year, the government paid out US$300 million in oil subsidies, US$41 million in electricity subsidies and cut taxes on imported agricultural materials in order to curb increasing prices.
Chhit Sam Ath, director of the NGO Forum on Cambodia, said inflation is a major problem severely affecting the nation’s poor.
“I believe government subsidies can help people,” he said. “I think the government should try its best to lower and stabilize inflation by dealing with the impact from both internal and international factors.”
“We will reduce the inflation rate to single digits starting from the end of 2008 and into next year,” said Hang Chuon Narun, secretary general of the Ministry of Economy and Finance. He cited the government’s recent efforts to encourage agriculture sector investment, subsidize oil prices, and increase banks’ reserve capital as reasons why inflation would decrease.
Sok Hach, director of the Economic Institute of Cambodia, said that Cambodia would be unable to reduce inflation if open competition with products produced by various dominant Okhna groups is not allowed.
“The government has to decrease taxes on all goods in general and lift barriers to competition in trade,” he said. “I believe we can help reduce inflation to some extent if we have a competition law and implement it well.”
Cambodia, which currently has an inflation rate of over 10 percent, has yet to introduce a trade competition law even though it is a requirement for the Kingdom’s continued membership of the the World Trade Organization.
Economists say that the soaring inflation in Cambodia is partially due to the rising global oil prices, the devaluation of the US dollar and increasing international food prices. Internal factors such as high goods taxes and the lack of open product competition exacerbate the situation.
John Nelmes, International Monetary Fund resident representative for Cambodia, said increased cash flow in Cambodia is linked with the country’s inflation rate. “I think that increasing obligatory reserve funds to reduce growth is a positive step,” he said.
Early this year, the government paid out US$300 million in oil subsidies, US$41 million in electricity subsidies and cut taxes on imported agricultural materials in order to curb increasing prices.
Chhit Sam Ath, director of the NGO Forum on Cambodia, said inflation is a major problem severely affecting the nation’s poor.
“I believe government subsidies can help people,” he said. “I think the government should try its best to lower and stabilize inflation by dealing with the impact from both internal and international factors.”
10 comments:
That is bull shit ,this guy learned how to lie like khmer rouge eg: Next year will have three times meal a day ,in this year you are came from PP with empty handed and when the new year turn KR said other next year.
We knew that path already can you use others???????
Damn this guy know how to lie
Yes, one year it not realistic to tackle high inflation to single digit. Increasing global rice demand need 2-3 years to respond. Livestock need more than one year to supply more. Oil price has no sign decrease in price.
But if a single digit of 7 -9 percents. It is possible by mid 2009.
Dr. Sok Hach's idea is not different from Sam Rainsy's that the inflation in Cambodia will not be released as business monopoly is so strong in those burgeoning corrupt tycoons, and government has no ability to open for competition.
Current inflation stable price of commodities will be only soaring up, no lowering down; and Cambodian peoples will be experiencing more suffering.
KY
You realy know about the economy in Srok Khmer and in the world!!!but Ah Hun Xen and CPP members(Communist Youn Hanoi 0youn hanoi's brain don#t know ,nothing).
They can only rub and corrupt from the poors.
We beleave you Dr.Sok Hach!!!
Mr.Samrainsy is the best one about economy!!
Hun Xen can only kill the khmer nation!!
He will die on 27.07.2008 after election.
Just get rid of Ah Khmer-Yuon and problem solves. Everywhere Ah Khmer-Yuon goes destruction follows.
Hang all the bloody Viet troller/pimp and parasites on KI-Media such as the ones @10:45 AM.
You Viet parasites must know the universal language:
"The world sees and knows the Viet true color too well already".
So funny.
You guys and gals all know every decision is not coming from the minister of finance or others ministeries.
It's come only from the mouth of one man. This one man is Hun Sen. Everything he said is right.. EVEN IT'S WRONG!
Don't listen to his cronies. His cronies are just bribe's people or land croachers.
PEOPLE ARE SO POOR AT THE COUNTRY'S SIDE.
Anyway, Sam Rainsy will never win the elections. You guys or gals on the net who support Sam Rainy are not allow to vote.
THE ONLY WAY TO WIN IS TO DO THE JOINT VENTURE WITH OTHERS PARTIES THAN CPP.
Khmer Canadian
10:33PM
It is not realistic for your method and alliance idea in this short period...it might waste time and sure fall into CPP's net.
But SRP still has many relevant strategies to win CPP.
CPP will become the opposition party soon
Hey expert pretenders here! Do me a favor, stop making a fool of yourself. Your half brain writing is ridiculous. You make Cambodia looks bad!
True, Ah Khmer-Yuon (12:00)is so desperate to win the election that he even dream about nonsense strategies.
Just watch: when he wake up, he'll be full of disappointment and accusing everyone for cheating as usual.
Post a Comment