Compiled by Kem Thol (aka Miss K)
Posted online
Foreword: I had partially compiled some problems in which Cambodia is facing. I am seeking help from everybody to make me understand how do we Khmer are going to solve these problem while we have diverse political parties, and each of which is claiming to be the best. As I understand SROK Khmer has multitude of perplexing and serious tribulations including:
Information
Information is not always easy accessible and 80% of the population does not have TV, Radio, and do not read news paper at all. People are also not always aware that the information exists and therefore there is a risk of collecting and distributing information adequately. There is also a lack of clarity about what data or information sets are free/confidential/publicly available. Sharing of data/information in and between different departments/institutions is not a common habit. The foreign advisers/consultants are often the bridge between the different departments and are always sourcing various information/data. More time can then be invested in the actual use (reading/analyzing) and implementation, monitoring and evaluation and therefore improve the quality and the use of these efforts. This is very time consuming and not optimal.
Technology
There is a little news in the Technological Development area, people can use cell phone almost everywhere; and internet accessing can be accommodated at most cities in most of the provinces. The water, electricity, transport and telecommunication services have major impacts on Cambodian living standard and on the investment climate and where electricity is available; firms and individual consumers face some of the highest energy costs in the world. Cambodia has high telecom charges relative to other countries in the region. Cambodia has failed to reap all the benefits of competition and private telecommunication sector because each private license or cooperation agreement has been promulgated in a non-transparent manner that does not encourage competition. "The most important reforms are questions of political will".
Budget deficits
Despite attempts to increase revenues in 2006, the projected budget deficit (excluding grants) for the year, at 7.3% of GDP, will remain at around the prior-year level of 7.6% due to difficulties in raising revenues in an environment of slower economic growth. The budget deficit is likely to crease further to 8.3.0% in 2007 and 8.7% in 2008 as compliance with tax laws and customs procedures have not been improved, and as anti-smuggling actions are not reinforced. Spending will moderate on health, education, rural development, and agriculture. The ability of domestic-financed capital expenditures to influence development activity during the forecast period of 2007 will be limited by the need to repay arrears.
National Debts
According to official estimate, Cambodia's national debt of $8.07 billion above its GDP, which was $4.30 billion last year. It includes $1.6 billion owed to multilateral organizations such as the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank, and at least $3.9 billion that Cambodia received in bilateral loans from its former ally, the former Soviet Union. Cambodia owes another $1.7 billion to the United States and at least $2.8 billion to China. At this time, rice planting nationwide is running at only 24% of the average. As farmers are affected by flood and drought like this year, food crisis could lead to an ever heavier debt burden for Cambodia. Cambodia's ability to service these debts is in serious doubt.
Bureaucracy
Several Business firms have been complaining against the regulations affecting their organization as "unpredictable." Regulations are generally regarded as constraining: Cambodia's bureaucracy is politicized, cumbersome, and inefficient, and this creates problem for both potential and existing businesses. The lack of transparent, predictable, and enforceable laws and administrative procedures contributes to an environment where decisions can be made in an arbitrary or improper manner without due regard to the economy, efficiency, the long term sustainability of the project, or the interests of consumers and the wider public. Trade facilitation practices in Cambodia stand out in having high official and unofficial costs, delays, uncertainty and discretion-a critical problem for a country that must rely on exports for growth.
Ill Legal Business
Logging, Mining, Medicine Smuggling, Animals Smuggling, Illegal Drug, Human Trafficking, Gambling, Weapons Trade, and Angkor Antiques have been smuggled from Cambodia to Thailand, and around the world.
Corruption
The rule of law and a system of checks and balances in Cambodia exists mostly on paper. In reality, the legislature - consisting of the National Assembly and the Senate - remained extremely weak and highly politicized. As the supreme law-making body, the legislature is still subservient to the executive branch and dominated by the CPP. Civil liberties remained largely unprotected. The court systems are powerless in cases where high-ranking military officers confiscated lands from members of ethnic minorities in provinces far from the capital city. Impunity remained a serious problem.
Crime
Robbery, Rape, Human Trafficking, and Copyright Violation, Cambodia has a high crime rate, including street crime. Military weapons and explosives are readily available to criminals despite authorities' efforts to collect and destroy such weapons. Armed robberies occur frequently in Phnom Penh and else where in the country. Foreign residents and visitors are among the victims. Victims of armed robberies are reminded not to resist their attackers and should surrender their valuables, since any perceived resistance may be met with physical violence, including lethal force. Local police rarely investigate reports of crime against tourists, and travelers should not expect to recover stolen items.
Punishment
The judiciary lacked independence because most of its staff, particularly judges, are appointed by the CPP and, as such, are not expected to make judgments in the interest of justice, but rather based on personal power and wealth. Perpetrators of political violence are never brought to justice. Victims of political violence and non-CPP elements charged with criminal activities are often severely punished. Judges found it much easier to rule against non-CPP elements and members of opposition parties than against members of the ruling party CPP. Prisoners are still subjected to torture as well as deprivation of medical care and are often denied access to family members.
Ecology
Deforestation, Illegal Mining, River and Pond Land filled. Environmental issues are another reason for the lack of sustainability of economic growth. The economic, social and environmental cost of deforestation is estimated to have exceeded $900 million per year. Cambodia lacked adequate environmental policy, did not have an effective law on the environment and remained weak as far as enforcement is concerned.
Environmental Pollution
River, Canal, Chemical Waste Dumping Sites, Solid Waste Landfills, Electric Power Plants, Municipal Incinerators, Industrial Plants. In Cambodia, environmental cases could be divided into: public nuisance and private nuisance. Private nuisance arises mostly through smoke or noise emission from activities of factories which affect the neighboring residents, but the affected people are not used to bringing their complaints to the court and the disputes are usually settled by way of reconciliation in which the environmental agency plays the role of a mediator.
Education
The state of Cambodian higher education is a tricky elephant to describe. There are many causes for concern but also for hope. The mismatch between higher education provision and labor force demands has produced an oversupply of poorly trained graduates that have the potential to threaten social stability. The relevance and quality of many of the degrees being granted have produced serious concerns. Opinions vary widely, perhaps as a result of the lack of accurate published information about higher education in Cambodia. Pessimists tend to see how far from international standards the present situation is, and the numerous obstacles in the way of ever achieving them. A number of private academic institutions were founded, but many are of poor quality and seemed unable to prepare students for future careers. In addition, the number of public and private institutions of higher education multiplied.
Maltreatment of Children
Child Prostitute, Child Labor, Child Slavery, and Less Schooling, Children are forced out of school and into labor to help their families, they are often denied the opportunity to acquire the knowledge and skills needed for gainful employment, thereby perpetuating the cycle of poverty. Children with little or no schooling will be in a weak position in the labor market, at much greater risk of joining the ranks of unemployed and the poor, harming not only the welfare of individual children, but also slowing broader national poverty reduction and development efforts.
Property Rights Dispute
Cambodia became increasingly market-oriented during the review period of 2006, but private property remained unprotected, especially in rural areas. Property rights and the right to the acquisition of property are cited in the constitution, but there is no clear guidance concerning policy directions and implementation. Forced confiscation of land continues. Thousands of indigenous villagers in northeastern provinces, such as the Ratanakiri province, face the loss of their ancestral lands, as they have come under growing pressure to sell them. The number of land disputes in 2007 is six time that of 2003 across the country. Many land disputes cases are remain unresolved.
Inflation
Inflation is likely to rise from 4.5% in 2005 and swell further to 6.20% in 2007 as a gradual slowdown in agricultural output amplify food price inflation, while higher world prices for oil add to imported inflation. Helping contain inflation is not a commitment by the Hun Sen government to avoid recourse to domestic bank financing of the budget deficit. A significant appreciation of the riel is also likely during the forecast period 2007 as this would have impacted on competitiveness, since most costs in Cambodia, including wages, are denominated in US dollars.
International Political Conflict
Illegal treaty was signed by the Hun Sen government, as such Land boundary disputes persist among Cambodian proves that Thailand and Vietnam moved or destroyed boundary markers; maritime boundary with Thailand and Vietnam is hampered by dispute over offshore islands; Thailand periodically obstructing access to Preah Vihear temple ruins awarded to Cambodia by ICJ decision in 1962; 2003 anti-Thai riots in Phnom Penh resulted in the destruction of the Thai Embassy, damage to 17 Thai-owned businesses.
Internal Political Conflict
Internal Political Conflict is rousing from Political Opportunist, Selfish, Egoism, Jealousy, Fame, Money, and Sex, and Tension is rising between the aging political elite, increasingly desperate to cling to power by political manipulation, and a younger generation of more qualified and capable officers, who are concerned with a sustainable future for higher education and are increasingly trying to introduce merit into decision making.
Ethnic Population
Vietnamese Population has been increased and will require a strong commitment from the Government to resolve this undivided attention issues.
Unemployment
The Nature of Manpower is a constant threat facing Cambodian young, old and graduated students alike, because it is simply not enough jobs available for them and no market opportunity for the farmers. Apart from local enterprises and markets, Cambodian laborers are sent to Thailand, Malaysia, Singapore, South Korea, Taiwan, Indonesia and Japan. Most of these workers become victim of physical abuse, sex exploitation, and some were murdered.
Misdistributions of Necessary Resources
Our landscape have been shrinking, our border have been sliced off little by little to the West and to the East side of the country. The leftover is not a guaranty that the poor will be recognized a legitimate owner of the property because the Government, foreigner and concessionaire can come in and rob people at any time.
Agricultural Technology
There is growing international influence, perceived by some as assistance and by others as a threat to local interests, as well as rapid expansion, diversification crops, and the start of more orderly development in an agricultural system experiencing understandable growing pains.
Irrigation Systems
Majority of Irrigation systems are damaged or inadequate. Irrigation potential has never been estimated in terms of physical area which could be irrigated considering water and land resources. An assessment has not been made of the total potential cropped area if existing and past irrigation systems are not rehabilitated and improved. The total area would be 919 344 ha in the wet season and 487 020 ha in the dry season. Cambodia's rural areas are home to most of the country's poor, who face underdeveloped infrastructure and limited access to services. Many of the existing irrigation canals have long been dysfunctional, making farmland vulnerable not only to drought but also to frequent flooding.
Infrastructure
Limited road accessibility and heavily traveled roadways. Cambodia requires physical infrastructure. But Cambodia's legacy of civil strife makes this need far greater than that of most. Requiring everything from improved waterworks to electricity to irrigation canals, Cambodia faces a colossal challenge. Frequent perennial flooding is a reminder of the neglect of physical infrastructure. Floodwaters-rising to waist level in some areas-damage roads, cause health problems, and disrupt economic activities. The restoration of transportation links through the national highway system will enable economic activity to resume and will make it easier to distribute relief supplies throughout the country.
Labor Skill
The country's institutions for education, training, and research and development are quantitatively and qualitatively low. Government spending in education and training as well as in research and development remained low. Most populations are farmers, laborers with low skillful, under knowledge and labor disciplines. At present time, the total laborers are 1.9 million of people, which are still low against the total population. 70% of labor works in agricultural sector, 3.8% in industry and other in services. A critical shortage of qualified and professional personnel emerged as doctor, lawyer, technicians, engineers, skilled workers, and trained managers.
Domestic Market
The fundamentals of domestic market based competition still suffered because of an extremely weak regulatory framework and over imported commodity products and the financial system also remained woefully weak. Cambodia is unable to attract sufficient direct investment. Reasons for this are the limited extent of the domestic market, weak infrastructure, relatively high overhead expenses, an inefficient civil service, and a rudimentary legal system. The government seems to be incapacitated to reduce obstacles to investment and to create incentives, among other things by the future Export Processing Zones (EPZ). Cambodia is now likely to face an additional problem: global competition.
International Market
Monopolies and oligopolies are evident, some entrepreneurs established near-monopolies or monopoly-like positions for themselves. Most companies are very small. Only 1,000 had modern management and equipment. Foreign trade is still in the process of being liberalized, as Cambodia adopted a policy in line with ASEAN Free Trade Arrangements (AFTA) and the WTO requirements, but Cambodia proved unable to implement the rules she established. The country experienced trade deficits every year: -523 (2001), -564 (2002), -537 (2003) -692 (2004) -731 (2005) -756 (2006) and -782 (2007). The agricultural products and manufacturing industry still faces an uphill battle, as China and Vietnam whose currency is noticeably undervalued and whose workers are more skilled than those in Cambodia became increasingly competitive in the regional market. Other factors that still made Cambodia uncompetitive in the global economy included endemic corruption, high infrastructure costs and unskilled workers.
Import-Commodities
Cigarettes, Gold, Medicine, Construction materials, Textile, Petroleum Products, Electricity, Machinery, Motor vehicles and Agricultural Products.
Imports - partners:
Singapore, Vietnam, Japan, Australia, Hong Kong, Indonesia, Thailand, Malaysia and USA.
Health Care
By any standards Cambodia's healthcare system is in a pretty dismal state. Reliable figures estimate that there is one doctor per 1,700 people. Cambodia's poor, when they get sick, can be more likely to flee public health care workers than to seek advice or treatment. Many will selftreat or call in traditional healers before showing up at government-run clinics. Cambodia's health care system remains rudimentary. The prevalence of infectious diseases and the growing problem of chronic disease are forcing Cambodia to face a significant health burden in the future.
Natural Disasters
Flood, Drought and Our Natural Resources have been relentlessly affected by an unusual changing in climate, elevation, soil, vegetation, population, and land usage due to the deforestation and illegal mining. Government does not have a practical Productive Capacity planning in place, and very few training had been given to the local farmers by NGO agencies and International agencies.
Political Repression
Killing, Kidnapping, Intimidation, and Jailing, Political repression is nothing new to Cambodia. The country's three national elections since 1993 have been invariably bloody affairs characterized by electoral fraud, intimidation and murder of non-CPP activists. Challenges to the status quo are met with vicious reprisals. In recent year political repression in Cambodia has dramatically increased with several arrests of human rights workers, journalists and trade unionists for defamation offences. The danger now is that, with Hun Sen tactical retreat in this particular case, the issue of human-rights violations in Cambodia will again fade from the International attention.
Poverty
Majority of Khmer are living in poverty including civil services, police and military officers due to low wage, corruption, absent of law, inflation, natural catastrophes, lack of local and domestic economic opportunity, and political dim-witted. The percentage of the population living below the poverty line grew from 36% in the late 1990s to 49% (about 5.6 million) in 2004, and it was predicted to increase to about 52% (6.3 million) in 2007. Infant mortality rates grew from 138 per 1,000 people in 2001 to 167 in 2007.
Unnecessarily Unsettling Societal Instabilities
Basic indicators of socio-economic development (based on the criteria of human development, gender equality, education levels and per capita income) showed no real progress. As such, Cambodia's level of a development remains extremely low. Income distribution, measured in terms of the GINI index, remains unchanged. The market-based (agricultural products) economy became less competitive and unsustainable. There were still several major impediments including endemic corruption; unskilled workers; weak absorptive capacity due to institutional weaknesses; and a substantial minimum capital requirement for foreign investment. Environmental degradation also became a rising challenge to sustainable economic development.
-----
KI-Media Note: Miss K is a prolific netizen, she posted a large number of articles about Cambodia ranging from economic, social to political situations.
Information
Information is not always easy accessible and 80% of the population does not have TV, Radio, and do not read news paper at all. People are also not always aware that the information exists and therefore there is a risk of collecting and distributing information adequately. There is also a lack of clarity about what data or information sets are free/confidential/publicly available. Sharing of data/information in and between different departments/institutions is not a common habit. The foreign advisers/consultants are often the bridge between the different departments and are always sourcing various information/data. More time can then be invested in the actual use (reading/analyzing) and implementation, monitoring and evaluation and therefore improve the quality and the use of these efforts. This is very time consuming and not optimal.
Technology
There is a little news in the Technological Development area, people can use cell phone almost everywhere; and internet accessing can be accommodated at most cities in most of the provinces. The water, electricity, transport and telecommunication services have major impacts on Cambodian living standard and on the investment climate and where electricity is available; firms and individual consumers face some of the highest energy costs in the world. Cambodia has high telecom charges relative to other countries in the region. Cambodia has failed to reap all the benefits of competition and private telecommunication sector because each private license or cooperation agreement has been promulgated in a non-transparent manner that does not encourage competition. "The most important reforms are questions of political will".
Budget deficits
Despite attempts to increase revenues in 2006, the projected budget deficit (excluding grants) for the year, at 7.3% of GDP, will remain at around the prior-year level of 7.6% due to difficulties in raising revenues in an environment of slower economic growth. The budget deficit is likely to crease further to 8.3.0% in 2007 and 8.7% in 2008 as compliance with tax laws and customs procedures have not been improved, and as anti-smuggling actions are not reinforced. Spending will moderate on health, education, rural development, and agriculture. The ability of domestic-financed capital expenditures to influence development activity during the forecast period of 2007 will be limited by the need to repay arrears.
National Debts
According to official estimate, Cambodia's national debt of $8.07 billion above its GDP, which was $4.30 billion last year. It includes $1.6 billion owed to multilateral organizations such as the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank, and at least $3.9 billion that Cambodia received in bilateral loans from its former ally, the former Soviet Union. Cambodia owes another $1.7 billion to the United States and at least $2.8 billion to China. At this time, rice planting nationwide is running at only 24% of the average. As farmers are affected by flood and drought like this year, food crisis could lead to an ever heavier debt burden for Cambodia. Cambodia's ability to service these debts is in serious doubt.
Bureaucracy
Several Business firms have been complaining against the regulations affecting their organization as "unpredictable." Regulations are generally regarded as constraining: Cambodia's bureaucracy is politicized, cumbersome, and inefficient, and this creates problem for both potential and existing businesses. The lack of transparent, predictable, and enforceable laws and administrative procedures contributes to an environment where decisions can be made in an arbitrary or improper manner without due regard to the economy, efficiency, the long term sustainability of the project, or the interests of consumers and the wider public. Trade facilitation practices in Cambodia stand out in having high official and unofficial costs, delays, uncertainty and discretion-a critical problem for a country that must rely on exports for growth.
Ill Legal Business
Logging, Mining, Medicine Smuggling, Animals Smuggling, Illegal Drug, Human Trafficking, Gambling, Weapons Trade, and Angkor Antiques have been smuggled from Cambodia to Thailand, and around the world.
Corruption
The rule of law and a system of checks and balances in Cambodia exists mostly on paper. In reality, the legislature - consisting of the National Assembly and the Senate - remained extremely weak and highly politicized. As the supreme law-making body, the legislature is still subservient to the executive branch and dominated by the CPP. Civil liberties remained largely unprotected. The court systems are powerless in cases where high-ranking military officers confiscated lands from members of ethnic minorities in provinces far from the capital city. Impunity remained a serious problem.
Crime
Robbery, Rape, Human Trafficking, and Copyright Violation, Cambodia has a high crime rate, including street crime. Military weapons and explosives are readily available to criminals despite authorities' efforts to collect and destroy such weapons. Armed robberies occur frequently in Phnom Penh and else where in the country. Foreign residents and visitors are among the victims. Victims of armed robberies are reminded not to resist their attackers and should surrender their valuables, since any perceived resistance may be met with physical violence, including lethal force. Local police rarely investigate reports of crime against tourists, and travelers should not expect to recover stolen items.
Punishment
The judiciary lacked independence because most of its staff, particularly judges, are appointed by the CPP and, as such, are not expected to make judgments in the interest of justice, but rather based on personal power and wealth. Perpetrators of political violence are never brought to justice. Victims of political violence and non-CPP elements charged with criminal activities are often severely punished. Judges found it much easier to rule against non-CPP elements and members of opposition parties than against members of the ruling party CPP. Prisoners are still subjected to torture as well as deprivation of medical care and are often denied access to family members.
Ecology
Deforestation, Illegal Mining, River and Pond Land filled. Environmental issues are another reason for the lack of sustainability of economic growth. The economic, social and environmental cost of deforestation is estimated to have exceeded $900 million per year. Cambodia lacked adequate environmental policy, did not have an effective law on the environment and remained weak as far as enforcement is concerned.
Environmental Pollution
River, Canal, Chemical Waste Dumping Sites, Solid Waste Landfills, Electric Power Plants, Municipal Incinerators, Industrial Plants. In Cambodia, environmental cases could be divided into: public nuisance and private nuisance. Private nuisance arises mostly through smoke or noise emission from activities of factories which affect the neighboring residents, but the affected people are not used to bringing their complaints to the court and the disputes are usually settled by way of reconciliation in which the environmental agency plays the role of a mediator.
Education
The state of Cambodian higher education is a tricky elephant to describe. There are many causes for concern but also for hope. The mismatch between higher education provision and labor force demands has produced an oversupply of poorly trained graduates that have the potential to threaten social stability. The relevance and quality of many of the degrees being granted have produced serious concerns. Opinions vary widely, perhaps as a result of the lack of accurate published information about higher education in Cambodia. Pessimists tend to see how far from international standards the present situation is, and the numerous obstacles in the way of ever achieving them. A number of private academic institutions were founded, but many are of poor quality and seemed unable to prepare students for future careers. In addition, the number of public and private institutions of higher education multiplied.
Maltreatment of Children
Child Prostitute, Child Labor, Child Slavery, and Less Schooling, Children are forced out of school and into labor to help their families, they are often denied the opportunity to acquire the knowledge and skills needed for gainful employment, thereby perpetuating the cycle of poverty. Children with little or no schooling will be in a weak position in the labor market, at much greater risk of joining the ranks of unemployed and the poor, harming not only the welfare of individual children, but also slowing broader national poverty reduction and development efforts.
Property Rights Dispute
Cambodia became increasingly market-oriented during the review period of 2006, but private property remained unprotected, especially in rural areas. Property rights and the right to the acquisition of property are cited in the constitution, but there is no clear guidance concerning policy directions and implementation. Forced confiscation of land continues. Thousands of indigenous villagers in northeastern provinces, such as the Ratanakiri province, face the loss of their ancestral lands, as they have come under growing pressure to sell them. The number of land disputes in 2007 is six time that of 2003 across the country. Many land disputes cases are remain unresolved.
Inflation
Inflation is likely to rise from 4.5% in 2005 and swell further to 6.20% in 2007 as a gradual slowdown in agricultural output amplify food price inflation, while higher world prices for oil add to imported inflation. Helping contain inflation is not a commitment by the Hun Sen government to avoid recourse to domestic bank financing of the budget deficit. A significant appreciation of the riel is also likely during the forecast period 2007 as this would have impacted on competitiveness, since most costs in Cambodia, including wages, are denominated in US dollars.
International Political Conflict
Illegal treaty was signed by the Hun Sen government, as such Land boundary disputes persist among Cambodian proves that Thailand and Vietnam moved or destroyed boundary markers; maritime boundary with Thailand and Vietnam is hampered by dispute over offshore islands; Thailand periodically obstructing access to Preah Vihear temple ruins awarded to Cambodia by ICJ decision in 1962; 2003 anti-Thai riots in Phnom Penh resulted in the destruction of the Thai Embassy, damage to 17 Thai-owned businesses.
Internal Political Conflict
Internal Political Conflict is rousing from Political Opportunist, Selfish, Egoism, Jealousy, Fame, Money, and Sex, and Tension is rising between the aging political elite, increasingly desperate to cling to power by political manipulation, and a younger generation of more qualified and capable officers, who are concerned with a sustainable future for higher education and are increasingly trying to introduce merit into decision making.
Ethnic Population
Vietnamese Population has been increased and will require a strong commitment from the Government to resolve this undivided attention issues.
Unemployment
The Nature of Manpower is a constant threat facing Cambodian young, old and graduated students alike, because it is simply not enough jobs available for them and no market opportunity for the farmers. Apart from local enterprises and markets, Cambodian laborers are sent to Thailand, Malaysia, Singapore, South Korea, Taiwan, Indonesia and Japan. Most of these workers become victim of physical abuse, sex exploitation, and some were murdered.
Misdistributions of Necessary Resources
Our landscape have been shrinking, our border have been sliced off little by little to the West and to the East side of the country. The leftover is not a guaranty that the poor will be recognized a legitimate owner of the property because the Government, foreigner and concessionaire can come in and rob people at any time.
Agricultural Technology
There is growing international influence, perceived by some as assistance and by others as a threat to local interests, as well as rapid expansion, diversification crops, and the start of more orderly development in an agricultural system experiencing understandable growing pains.
Irrigation Systems
Majority of Irrigation systems are damaged or inadequate. Irrigation potential has never been estimated in terms of physical area which could be irrigated considering water and land resources. An assessment has not been made of the total potential cropped area if existing and past irrigation systems are not rehabilitated and improved. The total area would be 919 344 ha in the wet season and 487 020 ha in the dry season. Cambodia's rural areas are home to most of the country's poor, who face underdeveloped infrastructure and limited access to services. Many of the existing irrigation canals have long been dysfunctional, making farmland vulnerable not only to drought but also to frequent flooding.
Infrastructure
Limited road accessibility and heavily traveled roadways. Cambodia requires physical infrastructure. But Cambodia's legacy of civil strife makes this need far greater than that of most. Requiring everything from improved waterworks to electricity to irrigation canals, Cambodia faces a colossal challenge. Frequent perennial flooding is a reminder of the neglect of physical infrastructure. Floodwaters-rising to waist level in some areas-damage roads, cause health problems, and disrupt economic activities. The restoration of transportation links through the national highway system will enable economic activity to resume and will make it easier to distribute relief supplies throughout the country.
Labor Skill
The country's institutions for education, training, and research and development are quantitatively and qualitatively low. Government spending in education and training as well as in research and development remained low. Most populations are farmers, laborers with low skillful, under knowledge and labor disciplines. At present time, the total laborers are 1.9 million of people, which are still low against the total population. 70% of labor works in agricultural sector, 3.8% in industry and other in services. A critical shortage of qualified and professional personnel emerged as doctor, lawyer, technicians, engineers, skilled workers, and trained managers.
Domestic Market
The fundamentals of domestic market based competition still suffered because of an extremely weak regulatory framework and over imported commodity products and the financial system also remained woefully weak. Cambodia is unable to attract sufficient direct investment. Reasons for this are the limited extent of the domestic market, weak infrastructure, relatively high overhead expenses, an inefficient civil service, and a rudimentary legal system. The government seems to be incapacitated to reduce obstacles to investment and to create incentives, among other things by the future Export Processing Zones (EPZ). Cambodia is now likely to face an additional problem: global competition.
International Market
Monopolies and oligopolies are evident, some entrepreneurs established near-monopolies or monopoly-like positions for themselves. Most companies are very small. Only 1,000 had modern management and equipment. Foreign trade is still in the process of being liberalized, as Cambodia adopted a policy in line with ASEAN Free Trade Arrangements (AFTA) and the WTO requirements, but Cambodia proved unable to implement the rules she established. The country experienced trade deficits every year: -523 (2001), -564 (2002), -537 (2003) -692 (2004) -731 (2005) -756 (2006) and -782 (2007). The agricultural products and manufacturing industry still faces an uphill battle, as China and Vietnam whose currency is noticeably undervalued and whose workers are more skilled than those in Cambodia became increasingly competitive in the regional market. Other factors that still made Cambodia uncompetitive in the global economy included endemic corruption, high infrastructure costs and unskilled workers.
Import-Commodities
Cigarettes, Gold, Medicine, Construction materials, Textile, Petroleum Products, Electricity, Machinery, Motor vehicles and Agricultural Products.
Imports - partners:
Singapore, Vietnam, Japan, Australia, Hong Kong, Indonesia, Thailand, Malaysia and USA.
Health Care
By any standards Cambodia's healthcare system is in a pretty dismal state. Reliable figures estimate that there is one doctor per 1,700 people. Cambodia's poor, when they get sick, can be more likely to flee public health care workers than to seek advice or treatment. Many will selftreat or call in traditional healers before showing up at government-run clinics. Cambodia's health care system remains rudimentary. The prevalence of infectious diseases and the growing problem of chronic disease are forcing Cambodia to face a significant health burden in the future.
Natural Disasters
Flood, Drought and Our Natural Resources have been relentlessly affected by an unusual changing in climate, elevation, soil, vegetation, population, and land usage due to the deforestation and illegal mining. Government does not have a practical Productive Capacity planning in place, and very few training had been given to the local farmers by NGO agencies and International agencies.
Political Repression
Killing, Kidnapping, Intimidation, and Jailing, Political repression is nothing new to Cambodia. The country's three national elections since 1993 have been invariably bloody affairs characterized by electoral fraud, intimidation and murder of non-CPP activists. Challenges to the status quo are met with vicious reprisals. In recent year political repression in Cambodia has dramatically increased with several arrests of human rights workers, journalists and trade unionists for defamation offences. The danger now is that, with Hun Sen tactical retreat in this particular case, the issue of human-rights violations in Cambodia will again fade from the International attention.
Poverty
Majority of Khmer are living in poverty including civil services, police and military officers due to low wage, corruption, absent of law, inflation, natural catastrophes, lack of local and domestic economic opportunity, and political dim-witted. The percentage of the population living below the poverty line grew from 36% in the late 1990s to 49% (about 5.6 million) in 2004, and it was predicted to increase to about 52% (6.3 million) in 2007. Infant mortality rates grew from 138 per 1,000 people in 2001 to 167 in 2007.
Unnecessarily Unsettling Societal Instabilities
Basic indicators of socio-economic development (based on the criteria of human development, gender equality, education levels and per capita income) showed no real progress. As such, Cambodia's level of a development remains extremely low. Income distribution, measured in terms of the GINI index, remains unchanged. The market-based (agricultural products) economy became less competitive and unsustainable. There were still several major impediments including endemic corruption; unskilled workers; weak absorptive capacity due to institutional weaknesses; and a substantial minimum capital requirement for foreign investment. Environmental degradation also became a rising challenge to sustainable economic development.
-----
KI-Media Note: Miss K is a prolific netizen, she posted a large number of articles about Cambodia ranging from economic, social to political situations.
