Cambodia of uncertainty: economic is booming, but sovereignty is dooming

Thursday, August 21, 2008
Op-Ed by Khmer Young
On the web at http://CambodianBrightFuture.blogspot.com

Cambodian peoples might be so happy with the economic growth of at least 7.00% annually. But in reality, this growth is just the shadow of failure because the inflation is soaring up to 10-15%. The fruits from this growth is not equally distributed. 80% of Cambodian farmers are significantly deteriorated by this growth.

1. The social gap is appearing every aspect of Cambodian society. The poor and the rich is gradually widened from such tricky economic boom. Many poor children quit school because they cannot afford to pay tips for teachers.

Private schools are booming to attract the rich children while poor children are dooming under the act of teachers who receive unjust salary in public schools.

There are many expensive cars such as Lexus and Land Cruisers drive across dumped street children and beggar children.

2. Cambodia has become the "Police State"since the failure of UN to crack down this tactical structure. Vietnam invaded Cambodia in 7 January 1979 to structure Cambodia society as a Police State. They withdrew the uniform military because their bottom structuring was complete. Currently, this structure is gradually strengthening. Major Cambodian policemen are Vietnamese by origin who have been well trained to carry gun to safeguard Cambodian citizens.

How can we say Cambodia is free and independent when Cambodia has foreigners to safeguard our peace and security?

3. National election is just the political game to legitimize Police State leader. By conducing votes, the Police State leader can legally claim their leadership and inspire more aids to last their power.

Their power and wealth are not only gained by exploiting national treasures but also accrue from the foreign aids and loans. New acceptance of decentralization and good governance only sustain their power to last forever.

4. Cambodian peoples should not be easily deceived by the Khmer Rouge brutality. How good is it when communists come to free us from another communists? They both are communist. Their characteristic is still communist and their leadership is absolute. How is different between Khmer Rouge communist and Vietnamese communist? It is different only the color (red & white) but the nature of these two communists are totalitarianism regime.

Khmer Rouge regime is passed, no KR regime will come to power again; and during KR regime, Khmer can protect its border land. White communist Vietnam is foreigner and this country has long time attempted to swallow Cambodia. Now their ambition is on the right track.

KY

Cambodian economic optimism well founded but work still needed: IMF

August 1, 2007
DPA

Phnom Penh - The International Monetary Fund Wednesday supported Cambodian government optimism for ongoing economic growth although it cautioned that reforms were still necessary to maximize the nation's economic boom.

IMF managing director Rodrigo de Rato told a press conference in the capital Wednesday that despite work remaining to be done in areas including good governance and budgetary efficiency and revenue flow, Cambodia's progress was impressive and should continue.

"Cambodia is heading in the right direction for strengthening its integration with the global economy. We see Cambodia will benefit tremendously from becoming a more active member of the global economy both in terms of trade and finances," he said.

"We already see some interest in foreign investment in Cambodia in the areas like garments and tourism but recently also in other important sectors like water, oil, and those are all to the benefit of the country."

However a number of areas still needed work, he cautioned, specifically strengthening the efficiency of the budget and revenue flows, as well as social reforms in both the governance and banking sectors.

"Independent bodies to fight corruption are essential," he added, noting that an anti-corruption law was still to be passed despite an anti-corruption unit being set up under the government's Council of Ministers in the interim.

But continued strong micro-economic framework policies and the increased credibility of the country should ensure Cambodia continues to benefit from sustained high economic growth, he added.

The IMF has worked particularly closely with the government on banking and financial sector reforms as that area of the economy continues to experience unprecedented growth, and de Rato said he paid particular attention to this area during his visit.

"The banking sector is expanding rapidly. Financial sector growth is critical for Cambodia's economic development, and my discussions with Governor Chea Chantho naturally focused on the banking system," he said.

"We fully shared the view that strong supervision is essential for safeguarding the health of the banking system, and I was pleased to learn that efforts enforcing the regulatory environment would be enhanced."

Overall, he said the IMF expected the economy to grow at around nine per cent this year, with inflation expected to remain relatively low.

Although he said the discovery of potentially rich offshore oil reserves was undoubtedly to be seen as a positive for Cambodia, it was merely a promise at this stage with drilling yet to commence.

However, he said he was encouraged by government efforts to establish an appropriate fiscal regime before that promise was realised.

"Sound fiscal and monetary policies have helped boost confidence and increase private sector activity, and these trends should continue in 2007," de Rato said.

The first IMF managing director to visit since 1993, de Rato said he and his delegation met with a range of high-level government ministers and officials during their visit, including Prime Minister Hun Sen and Economy, Finance minister Keat Chhon.