Showing posts with label Wealth gap. Show all posts
Showing posts with label Wealth gap. Show all posts

Tuesday, August 28, 2012

Rich-poor gap hinders Asean integration

Tuesday August 28, 2012
AFP

PHNOM PENH: South-East Asian nations must redouble efforts to bridge development gaps which threaten the region’s efforts to create an EU-style single market, Cambodia’s prime minister said.

Building an Asean economic community by 2015 is the “top priority”, Hun Sen said as he opened the annual meeting of Asean economic ministers in the Cambodian tourist hub of Siem Reap.

Emulating the European Union’s example, Asean wants to establish a single market and manufacturing base of about 600 million people – a goal that has been spurred by intensifying competition from China and India.

Tuesday, January 10, 2012

Cambodian Garment Workers Would Like You To Think Before Going To H&M




In its latest episode, Vice's Fashion Week Internationale series goes to Cambodia, where the country held its first-ever fashion week in Phnom Penh in November. Host Charlet Duboc and the Vice team go to designer runway shows, parties, boutiques that cater to the elites known as the "Khmer Riche," and meet a makeup artist who's inspired by — who else? — Madonna. But they also take an unusual step: they talk to some of Cambodia's hundreds of thousands of over-worked and under-paid garment workers. What does it mean to hold a fashion week for the wealthiest of the wealthy in a country where so much of the world's cheap clothing is made?

Duboc meets garment workers outside a factory at closing time who say that on $2 a day — the legal minimum wage — they are often unable to meet their basic living expenses. These women and girls talk about not being allowed to take bathroom breaks, and having to spend whole shifts on their feet. Duboc rides a bus home from work with a girl named Srey Thom and other garment workers, and Srey introduces her to her family. Her twin sister also works in a garment factory, and her mother says she does a job that "involves spraying air into pockets," which also exposes her to toxic airborne chemicals. And although the minimum age for factory work is 18, Srey admits she was 14 when she started. ("We were very poor and had many children," says Srey Thom's mother, apologetically.) She says many of her friends were children when they started working, too; the factories look the other way. Together, Srey's, her sister's, and her mother's wages support the eight members of their family. On the bus, some workers cover their faces — unsurprising, given Duboc also interviews a union leader who says she's been beaten by police for organizing a demonstration of 5,000 workers — but others share their stories without much hesitation. "Now it can be shown abroad how hard lives are in Cambodia," says one.

Thursday, September 22, 2011

សង្គមកម្ពុជា​​អំណោយ​ផលដ​ល់​អ្នក​មាន! - Only the rich benefit in Cambodia! [-Seed of the next Cambodian revolution]

អ្ន​កសុំទាន​ម្នាក់​នៅ​ភ្នំពេញ។​
RFI/Siv Channa
ឈ្មួញទុច្ចរិតអារកហុតឈាមប្រជារាស្ត្រខ្មែរត្រូវគេលើកដំកើង សូម្បីតែស្តាចម៏ផែនដីក៏ខំយកចិត្ត ពួកអាឈ្លើងនេះដែរ
រីឯអ្នកក្រត្រូវអាជ្ញាធរជិះជាន់យ៉ាងព្រៃផ្សៃ! មិនដែលមានស្តាចម៏ឬក៏មន្ត្រីណាមួយ ជួយឈឺឆ្អាលឡើយ
ពុធ 21 កញ្ញា 2011
ដោយ ប៉ែន បូណា
Radio France Internationale
«អ្នកមាន​រក្សាខ្សត់​ដូច​សំពត់​ព័ទ្ធ​ពីក្រៅ ​អ្នកប្រាជ្ញ​រក្សា​ខ្លៅ​ដូច​សំពៅ​នៅ​សំប៉ាន»
សង្គម​កម្ពុជា​បច្ចុប្បន្ន​ត្រូវ​គេ​មើល​ឃើញ​ជា​ទូទៅ​ថា ​ជា​សង្គម​ដែល​មាន​អំណោយ​ផល​ដល់​អ្នកមាន​ច្រើន​ជាង​អ្នកក្រ។ ​ស្ថានភាព​នេះ​ហើយ​ដែល​ជំរុញ​ឲ្យ​អ្នកមាន​កាន់តែ​មាន​បាន​ខ្លាំង​ឡើង​ និង​ឆាប់​រហ័ស ​ខណៈ​ដែល​អ្នកក្រ​ពិបាក​នឹង​រំដោះ​ខ្លួន​ចេញ​ពី​ភាព​ក្រីក្រ។ និន្នាការ​បែប​នេះ​បាន​និង​កំពុង​បង្កើត​ឲ្យ​មាន​វិសមភាព​សង្គម​គឺ​គម្លាត​ កាន់តែ​ឆ្ងាយ​រវាង​អ្នកមាន​ និង​អ្នកក្រ។ វិសមភាព​សង្គម​គឺជា​បញ្ហា​ដែល​មិន​អាច​មើល​រំលង​បាន​ឡើយ។​តើ​គេ​គួរ​ធ្វើ​ ដូចម្តេច​ដើម្បី​កែប្រែ​ស្ថានភាព​សង្គម​កម្ពុជា​ឲ្យ​មាន​តុល្យភាព?

នៅ​កម្ពុជា ​អ្នកមាន​អាច​បង្កើន​ភាព​មានបាន​របស់​ខ្លួន​យ៉ាង​ស្រួល​ពីព្រោះ ​ពួកគេ​ទទួល​បាន​អំណោយ​ផល​គ្រប់​បែប​យ៉ាង​ពី​សង្គម​ដែល​ឲ្យ​តម្លៃ​ប្រាក់​ជា​ធំ។ ​ប្រាក់​អាច​អនុញ្ញាត​ឲ្យ​ពួកគេ​ទិញ​ដីធ្លី​ពី​កសិករ​បាន​ក្នុង​តម្លៃ​ថោក។ ​ប្រាក់​ក៏​អនុញ្ញាត​ឲ្យ​ពួកគេ​ដោះស្រាយ​រាល់​បញ្ហា​ដោយ​ងាយ​រាប់​ទាំង​បញ្ហា​ផ្លូវ​ច្បាប់​ផង។ ​ប្រាក់​អាច​ឲ្យ​អ្នក​មាន​បង់​ពន្ធ​ចូល​រដ្ឋ​ក្នុង​តម្លៃ​ទាប​ក្នុង​ករណី​ដែល​មាន​ការ​ឃុបឃិត​ត្រូវរ៉ូវ​គ្នា​ជាមួយ​មន្ត្រីរាជការ​មួយចំនួន។

ម្យ៉ាង​ទៀត ​អ្នកមាន​អាច​ទិញ​របស់​ថោក​ជាង​អ្នកក្រ។ ​ជាក់ស្តែង ​ប្រសិន​បើ​ចង់​ទិញ​ផ្ទះ​មួយ អ្នកមាន​ដែល​មាន​លុយ​បង់​គ្រប់​ចំនួន​ គេ​ទទួល​បាន​ការ​ចុះ​តម្លៃ​ទាប​ជាង​តម្លៃ​ធម្មតា ​ខណៈ​ដែល​អ្នកក្រ​ដែល​គ្មាន​ប្រាក់​គ្រប់គ្រាន់​ត្រូវ​បង់​បណ្តាក់​រយៈពេល​យូរ​ដែល​ធ្វើ​ឲ្យ​តម្លៃ​ផ្ទះ​ត្រូវ​កើន​ស្ទើរ​តែ​ទ្វេដង​ឬ​លើស​ពី​នេះ។

Thursday, March 18, 2010

[T]he Cambodian elite is the ultimate shame of human behaviour

Lexus with police plates, Phnom Penh (Photo: Jules Atkins, Travel Blog)
Transportation for ordinary Cambodians

Elite spend on cars, not the country

March 18, 2010

Letter to the Editor
The Nation


Cambodia needs more money from abroad according to the Cambodian Embassy. Cambodia is one of the poorest countries on the planet. When you walk the streets in Phnom Penh, you will know why they need more money: It seems that most of the country's income is used on luxury cars.

Phnom Penh is the luxury car capital of the world. The dollar-a-day garment-factory girls are bringing the money to Cambodia. The political, administrative, military, police, and business elite take care of the spending - wasting this hard-earned money on cars instead of rebuilding the country.

How is it possible to be so selfish with so much suffering and poverty around you? For me the Cambodian elite is the ultimate shame of human behaviour - in a country that is heavily dependent on development aid from abroad. And the embassy claims it is a democracy!

I come from a democratic country in Europe where our democracy didn't allow private persons to import cars until 16 years after the Second World War. All money was used to rebuild our country. All worked together. That attitude moved us from being among the poorest countries to being the second richest and probably the most fair and even in Europe.

So, Cambodia, if you want to achieve anything as a democracy, you have to wait for luxury until you can afford it. That means the day when the United Nations, Save the Children, the Red Cross, and all the other aid organisations have finally finished their mission in Cambodia.

A JOHNSEN

FLORIDA

Wednesday, October 07, 2009

Party insists rights are guaranteed

Top: A family of "haves"
Bottom: A family of "have-nots"

October 7, 2009
A. Gaffar Peang-Meth
Pacific Daily News


Modern-day Cambodia is a land of haves and have-nots. There is prosperity among the first group, but those in the second group suffer deprivation and oppression.

Those who could be counted among the "haves" demonstrate some level of allegiance to Big Brother Hun Sen and are rewarded with employment. He controls the primary employment center in the country, the Cambodian People's Party Inc. Those who are less privileged, the "have-nots," are victimized by uniformed authorities who come to evict them from their property, which is awarded to a favored individual or business entity for development.

The haphazard installations of modern infrastructure, tall buildings and expensive villas stand in stark contrast to the scavengers who roam the city's dumps looking for food and the many who live in the open air in rickety shacks with tin roofs. A third of the population lives below the poverty line.

Human Rights Watch describes the situation this way: "The gap has widened between wealthy city dwellers and impoverished farmers in the countryside, exacerbated by large-scale forced evictions of tens of thousands of urban poor, illegal confiscation of farmers' land, and pillaging of the natural resources on which people in the countryside depend for their livelihood."

Most of the country's wealth is generated from trade with countries willing to do business with Hun Sen's government -- the legitimacy of which is very much in question -- to acquire Cambodia's natural resources. Cambodians who don't benefit from these international arrangements rely on NGOs and human rights groups to advocate for them domestically and internationally.

A day before the Sept. 10 public hearing of the Tom Lantos Human Rights Commission by the U.S. Congress on the violations of human rights and the rule of law in Cambodia, the royal embassy of Cambodia in Washington circulated a statement declaring Cambodia's "democracy and human rights are fully guaranteed by its 1993 Constitution (which) recognizes the freedom of expression and other fundamental rights."

At the hearing, Cambodian lawmaker Mu Sochua told the Commission she was "stripped of my parliamentary immunity and given a criminal conviction for openly criticizing Prime Minister Hun Sen." Sochua affirmed, "My situation is not unique," and warned, democracy in Cambodia "is experiencing an alarming freefall."

But the Embassy noted the existence in Cambodia of 600 newspapers, journals and magazines, 40 radio stations and seven TV stations, and "thousands of civil society organizations, as well as free press and trade unions" -- what more does anyone need to prove Cambodia's commitment to freedom?

A testimony by Human Rights Watch provided to the Lantos Commission: "The U.S. has provided training, material assistance and even awards to military, police, counter-terror units or related individuals with track records of serious human rights abuses."

Eight congressmen wrote a letter on Sept. 18 to Secretary of Defense Robert Gates, requesting a response to charges of "serious abuses by members of the Prime Minister's Bodyguard Unit, Brigade 70, Special Airborne Brigade 911 and Brigade 31 of the Royal Cambodian Armed Forces."

Three days later, Gates met at the Pentagon with Sen's defense minister, Gen. Tea Banh, who was on a four-day visit "to strengthen cooperation" between the two militaries.

Banh brushed off accusations of rights violations and told reporters of Radio Free Asia and the Voice of America that the congressmens' letter to Gates has "false" information. Yet Banh slipped, saying, "Truthfully, right now, there are a number of (Cambodian army) officers who are refused entry to the U.S."

The Sept. 24 Phnom Penh Post reported Banh as saying that Deputy Secretary of State James Steinberg "addressed concerns about human rights issues in Cambodia," but that Banh "clarified that while some concerns are valid, each country has its own law."

Does Cambodia's law differ from the principles embodied in the Universal Declaration of Human Rights or the International Convention on Civil and Political Rights?

University of Chicago law professor Eric Posner's "Think Again: International Law" in the Sept. 17 Foreign Policy Online states: "Governments respect international law only when it suits their national interests. Don't expect that to change any time soon."

Posner writes: "Academic research suggests that international human rights treaties have had little or no impact on the actual practices of states. States that already respect human rights join human rights treaties because doing so is costless for them. States that do not respect human rights simply ignore their treaty obligations."

On Sept. 23, the Voice of America broadcast opposition leader Sam Rainsy's told the Bangkok press club: "Grassroots activists, politicians and village leaders have been killed, jailed, and forced into hiding for disagreeing with the ruling party."

Sen's Council of Ministers' fired back and said Rainsy has no "dignity as a politician." The hundreds of press media and thousands of NGOs working "freely in the kingdom" are in contrast to "accusations by a group of immoral people."

Abraham Lincoln's words are worth recalling: "You may fool all of the people some of the time, you can even fool some of the people all of the time, but you cannot fool all of the people all the time."

A Gaffar Peang-Meth, Ph.D., is retired from the University of Guam, where he taught political science for 13 years. Write him at peangmeth@yahoo.com.

Wednesday, November 26, 2008

Tuol Sleng and Choeung Ek, Cambodia: Asia's Heart Of Darkness

Choeung Ek: Magic tree (All photos: Sean Paul Kelley)
Choeung Ek: Shallow graves
Tuol Sleng: Nameless victim
Tuol Sleng: Nameless mother and infant

11/26/2008

The Young Turks (California, USA)

Today, with much reluctance, I visited the killing fields of Cambodia and the Tuol Sleng prison in downtown Phnom Penh. What I found there was a gruesome reminder that we are only one war, one catastrophe, one single mistake away from the cruelties than man inflicts upon his fellows. Today was a tour of the darkness reaching out for the darkness.

A note of caution, some of the photos linked to in this essay are not easy to look at. Click at your own risk.

I began my day in an internet cafe right off the main boulevard here in Phnom Penh. I spent the morning there wasting time, not wanting to visit the places I came here to see. Actually, seeing is an incorrect word, it was more of a witnessing. I'd had no plans to stop here in the capital and visit the sites of Cambodia's haunting past. I'd intended to move straight on to Siem Reap and see Angkor Wat. But Cenk convinced me otherwise and I am glad he did. When I finally plucked up enough momentum to go the day started out nicely enough, as I drove through downtown towards the outskirts. The poverty here is intense, as urban poverty always is. And the difference between wealthy and poor is a yawning chasm, shanties are perched over the river and lake but the wealthy hide behind huge barricades and live in palatial homes that would make any 'gated community' back home blush.

Soon we were out in the countryside. Flat, broken, fallow in many places, but ripe with rice in others all that greeted me was the dust in my eyes, screeching tires and horns and school children riding their bikes home.

We turned the corner past a huge cement plant down a gravel lane. There a large, modern stupa rose up off the Mekong plain. But this was no ordinary stupa, no place of Buddhist worship, but something far more grim and solemn.

The stupa is a monument raised up in honor of those who died in the surrounding 'killing fields.' It's about four stories tall and is literally full of glass cases filled with human skulls. These are real skulls, the last remains of the victims of Pol Pot's regime.

Lizards scurry across the dusty paths, a cool breeze ripples through the trees, a school playground filled with the noises of happy children surround me. But none of it drowns out the roaring echo of suffering emiting from this place. It is immense and total in its enormity.

The site occupies about 15 acres of land and is pockmarked with shallow crater-like holes, which once held the remains of the dead. There is a tree, marked by a sign, where children were murdered, and another where a loudspeaker hung, better to drown out the moans of the dying. A chemical plant once stood on the grounds, better to sanitize the inevitable illnesses that breed in such horrible places. In one spot is a glass full of human teeth, all that remains of several hundred victims, all women and children found naked.

I'm not sure what I found more disturbing, the sense of loss the place conjured up or the poor children just outside the grounds, begging for a dollar in exchange for a photo.

* * * *
After Choeung Ek I traveled back into town to the infamous Tuol Sleng prison. Here is where the many of the victims found in the shallow graves of Choeung Ek were 'processed.' Tuol Sleng used to be a school, and I try to imagine the carefree voices of children in the front yard of the school, but I cannot. It is too grave, too solemn a place. Too haunted. The 'processing rooms' are awful. Many remain in the same condition they were in at the fall of the regime. A lone, metal bed standing in the middle of the room, the rules of torture spelled out clearly. All that is missing are the electrical wires attached to the bed for 'shock therapy.'

There are many photos of the victims here. Some are clearly terrified, aware of the fate that awaits them. Others are children, old women, young men and boys, all gone. Nothing is left but a echo of their life ricocheting off the walls filled with the grainy black and white photos of the dead.

Outside in the yard is a gallows--a gruesome reminder of what torture really is, not to mention a painting of a man being waterboarded.

Is there a lesson here? I don't know. How did it happen? Why? What was this young man's crime? Or this woman's? All I can say is that I left here grateful for the luck of my birth and continuing gratitude for each breath I take, as so many had both stolen from them far too soon.

Tuesday, November 11, 2008

Good Governance Should Be All-inclusive: Sam Rainsy

Sam Rainsy's letter to the Editor
The Cambodia Daily, November 11, 2008


GOOD GOVERNANCE SHOULD BE ALL-INCLUSIVE

Reports such as "Protests Continue Over ADB's Rice Distributions" (Nov 7, page 29) and "200 Protest as ADB Completes Rice Donations (Nov 6, page 27) reflect three interrelated problems that need to be seriously addressed through a comprehensive approach:

1- The increasing wealth and revenue gap between a political and financial oligarchy and the mass of rural poor, who survive near the starvation line, increasingly relying on handouts, in a country that boasts a relatively high "macroeconomic growth rate."

2- The need to check government corruption and official disdain for transparency and the rule of law that prevails at all levels of the state apparatus, from the Council of Ministers to village chiefs.

3- The absence of decentralization, meaning the failure to put in place procedures that would involve villagers at the grassroots level in decisions that affect their daily lives.

I would like to make a few remarks on the third issue, which few experts, analysts and observers have concentrated their attention on.

The current legislation on decentralization, meaning the devolution of power from the central government to elected local authorities, has existed only on paper since the first commune council elections in 2002.

The opposition SRP collected 25 percent of the popular votes at the last commune council elections in 2007. It has secured commune councillors in 85 percent of Cambodia's 1,621 communes. It has won commune chief positions in 28 communes, first deputy chief positions in 403 communes and second deputy chief positions in 963 communes.

According to the law, the first deputy chief is in charge of finance and budget, and the second deputy chief of public services and security.

However, except for a few SRP-affiliated commune chiefs, elected local officials from the opposition actually have no power whatsoever. The CPP authorities at the national, provincial, district, commune and village levels just ignore them or bypass them, thus stalling any system of checks and balances and making a mockery of decentralisation.

Therefore, in 98 percent of Cambodia's 1,621 commune councils that are headed by a CPP commune chief, the ruling party adamantly refuses to share power with the opposition.

Since the commune councils in turn elect village chiefs, virtually all the country's more than 15,000 village chiefs are also controlled by the CPP.

Village chiefs are like little kings in their respective villages. They are integral parts of both the state apparatus and the CPP machinery. They actually control the population through using and abusing their power in countless activity fields that directly affect the daily lives of villagers.

Political bias is often associated with corruption. Village chiefs select villagers who are entitled to assistance from national and international organizations, including the Red Cross, based on criteria that may have nothing to do with humanitarian considerations.

Regarding the ongoing protests over ADB's rice distributions, it was reported in one of the articles mentioned above that most of the complaints accused village chiefs of "bias and nepotism" in those chosen to receive rice and for excluding others from the beneficiary lists.

By violating the law on decentralization the CPP authorities block democracy at the grassroots level, which allows more and more irregularities and abuses to occur.

If, in each commune, all elected representatives of the people were properly informed, consulted and allowed to play their respective roles according to the law on decentralization and the spirit of democracy, the above problem of food distribution could be avoided. Many other and more serious problems could also be avoided.

The lesson is clear: The Cambodian government and the international donor community alike should abandon their ineffective piecemeal approach and start to solve problems from a comprehensive perspective by meeting conditions that are prerequisites of good governance: effective law enactment, effective decentralization and effective democracy at the grassroots levels.

Sam Rainsy,
SRP President

Thursday, October 09, 2008

Work safety worsens as Cambodian construction booms


Cambodian workers are seen at a construction site

Thursday, October 09, 2008
...the gap between the rich and the poor is widening, with about 35 percent of the country's 14 million people living on less than 50 US cents a day
PHNOM PENH (AFP) — The race is on to build Phnom Penh's first skyscraper but as the fast-modernising city famous for its graceful colonial skyline transforms, safety standards appear to be stuck in the past.

The construction business in Cambodia is booming, attracting investments of 3.2 billion dollars in the first six months of this year and luring some 40,000 seasonal construction workers from impoverished provinces.

But, as construction worker Chan Vuthy can attest, work safety has deteriorated as buildings spring up.

The day a blade from a malfunctioning saw cut deep into his knee, the 23-year-old was wearing flip-flops, a cloth hat and no protective equipment.

When he stumbled to the bottom of the site, his boss scolded him for recklessness.

He was then fired, and had to spend his savings on a month of hospital treatment.

"Every time other workers and I have accidents, they say we are careless," Chan Vuthy says.

Cambodian construction workers risk their lives for an average wage of two and a half dollars a day, says Sok Sovandeith, president of the Cambodia National Federation of Building and Wood Workers.

There are no laws to force construction enterprises to pay adequate wages so many workers must live on building sites.

Few of them have any training and companies have little incentive to take measures to avoid accidents or use equipment such as hard helmets, work boots or safety harnesses.

"We're very worried about poor working conditions which have not been improved or guaranteed by law," Sok Sovandeith said, adding that construction work is the most dangerous kind of labour in the country.

"We are not happy when workers are not safely equipped. After some inspections, we found a lot of building sites and companies do not give out safety materials."

Many construction companies lay the blame for poor safety on workers who do not protect themselves.

So far the government has sided with businesses, taking no action to ensure better work conditions amid the building boom which has attracted investment from South Korea and China and helped fuel double-digit economic growth.

"The whole country acknowledges that construction is the third gem besides the agriculture and garment sectors to boost the domestic economy," says Im Chamrong, head of Cambodia's General Department of Construction.

"Some construction companies can't afford the safety equipment. We cannot force them to buy it," Im Chamrong says.

With few zoning regulations, new construction projects tower over traditional Khmer homes and the old French villas built in the colonial era.

In June, a South Korean company broke ground on a 52-storey tower slated to be the country's tallest skyscraper when it is completed in 2012, while all across the capital tall buildings are going up.

Once-sleepy boulevards are already crammed with expensive cars driven by the country's growing elite.

But the gap between the rich and the poor is widening, with about 35 percent of the country's 14 million people living on less than 50 US cents a day.

These are the men and women who end up migrating to the capital and risking their lives on building sites for a couple of dollars a day.

There are no statistics for accidents in Cambodia's construction industry, but there are many anecdotes about deaths and injuries to workers.

"There have been a lot of people being killed accidentally, but some companies try to hide the figure of the dead and victims," Sok Sovandeth says, adding the country needs better labour laws to save lives.

"Because workers take what they are offered, no better work conditions are given to them," he adds.

Saturday, March 22, 2008

Political Cartoon: Why are we so poor?

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

Opulence and ubiquitous poverty in Cambodia: A study in stark contrast

Entrance gate to the opulent villa belonging to a government official (Photo: Posted online by P. Virak)
Ubiquitous lifestyle of the majority of Cambodians (Photo: Posted online by P. Virak)

Sunday, March 09, 2008

Cambodia's thriving real estate market enriches the elite and sidelines the poor

S. Korea Yonwoo's Gold Towers
Sunday, March 9, 2008
The Associated Press
"We're moving toward possibly about 10 percent of the population owning 90 percent of the land in Cambodia" - Naly Pilorge, director of the nonprofit human rights group Licadho
PHNOM PENH, Cambodia: An old hospital was razed to make way for Phnom Penh's tallest building — a 42-story twin condominium tower. A garbage-strewn slum became prime real estate after police evicted its dwellers to a parched rice field outside the capital.

Cambodia is experiencing a construction boom fueled by foreign investment, particularly by South Koreans, and buying and selling among the country's few nouveaux richewhile leaving the poor majority behind.

Shopping malls and tall apartment buildings are sprouting up, transforming the capital's landscape that once bore the charm of colonial French-styled villas but resembled a ghost town at the fall of the genocidal Khmer Rouge regime nearly 30 years ago.

Political stability and robust economic growth of nearly 10 percent have lured investors to the real estate market that has seen prices surge over the last few years — though they are still lower than in neighboring Vietnam or Thailand.

"Cambodia was sleeping for many years and now it's waking up," said Claire Brown, managing director of Britain-based Claire Brown Realty who began buying and selling property in Phnom Penh two years ago.

"Everybody wants to get a piece of the action," she said by phone. "The time to get in is now because soon it's going to be too late."

Prime city land prices have tripled over the last two years to US$3,000 (€2,000) per square meter. Those kinds of returns have drawn rich and middle-class Cambodians, as well as those living abroad.

"In buying and selling land, they could get profit 100 or 200 percent a year, if they make the right bet on the right location," said Dith Channa, the sale manager of CPL Cambodia Properties Ltd., a Phnom Penh-based real estate agency.

But the soaring real estate market is also widening the gap between the rich and the poor.

"Phnom Penh city is getting modern every day — of course for the wealthy," said Chhorn Et, a former slum dweller now living with hundreds of others in a village in the middle of rice field about 20 kilometers (12 miles) from the capital.

"The government swept us away because they regarded us as very unpleasant for their eyes," said the 34-year-old woman who scavenges for discarded cans and bottles to sell for a living.

The flourishing property market is also happening in the shadow of problems of land rights disputes that, in recent years, have often pitted the poor against wealthy developers with links to the Cambodian political establishment.

"We're moving toward possibly about 10 percent of the population owning 90 percent of the land in Cambodia," said Naly Pilorge, director of the nonprofit human rights group Licadho.

That could fan social and political unrest, she and others have warned.

The biggest projects are being funded by South Korean investors and companies, which have been the leading investors in Cambodia following the resumption of diplomatic ties between the two countries in 1997. Investment and tourists from South Korea have surged following a 2006 visit to Cambodia by former President Roh Moo-hyun.

World City Co. Ltd., a South Korean company, is investing US$2 billion (€1.3 billion) to build a "satellite" urban complex called Camko City on a 120-hectare (300-acre) area on the northwest side of Phnom Penh. The project, the single biggest foreign direct investment in Cambodia to date, will include residential, commercial and public facilities — villas, condos, trade and financial centers, office buildings, shopping centers, hotels, schools and hospitals.

Meanwhile, at a busy corner leading up to the city's landmark Independence Monument, an old government hospital has been torn down to make way for a 42-story condominium and shopping complex worth about US$250 million (€162 million). That's going to dramatically change Phnom Penh's skyline, where the tallest building now is a 15-story hotel.

It is going to be the first luxury residential building and tallest structure in Cambodia, said Kim Tae-Yeon, chairman of Yon Woo Inc., a South Korean developer.

Kim said the towers will have about 500 units of apartments, office space and retail shops with price tags ranging from US$112,000 (€72,647) to US$1.8 million (€1.17 million) a unit. Construction will start next month and take 3 1/2 years to complete, but Kim said nearly half of the units have already been bought.

In recent years, Siem Reap, a northwestern town near the famed Angkor Wat ruins, also has seen a frenzy of hotel and guesthouse construction for the growing numbers of tourists.

Thrilled with the boom, Prime Minister Hun Sen has said it has been made possible by the political stability he has brought. In a recent speech he warned that if he is not re-elected in July elections, property prices could nosedive.

"It was a threat, a dirty trick to gain votes," said Son Chhay, an opposition party lawmaker.

Son Chhay and some human rights workers, including Pilorge of the human rights group Licadho, believe that the boom is partly fueled by people laundering money from illegal logging, drug trafficking and tax evasion by plowing the cash into the real estate market.

"This is not going to be healthy for the Cambodian economy," Son Chhay says.

There are also concerns that the rapid price gains are creating a bubble that will eventually pop.

Eric Sidgwick, senior economist at the Asian Development Bank office in Phnom Penh, said the real estate market has been "driven by a combination of genuine demand for business-related and residential construction," as well as a growing population, increased urbanization and speculation.

Still, there were "reasons to be concerned about the recent increase in real estate prices and the dangers of further inflating a speculation-led bubble," he said in an e-mail. He declined to comment about any possible link between money laundering and the property market boom.

Meanwhile, poor residents like Chhorn Et, the former slum dweller who was moved outside the capital, are left to cope with a stark reality in their new village, which has no running water or sewage system.

Although each family has been given a small piece of land, they complain of the lack of means to support their livelihoods. They have to travel daily to the capital to do odd jobs as motorbike taxi drivers, construction workers or scavenge for bottles and cans to sell to buy food.

Many of them are too poor to afford a latrine and have to use a nearby rice field as a toilet, said 37-year-old Mom Somaly, a mother of five children.

Pointing to a distant land-for-sale sign, she said "soon they may not even have a field to use as toilet any longer."
____________
On the Net:

Claire Brown Realty: http://www.clairebrownrealty.com/
CPL Cambodia Properties Limited: http://www.cplagent.com/
Yon Woo Incorporated: http://www.yonwooinc.com/eng/

Monday, February 18, 2008

DEVELOPMENT-CAMBODIA: Urban-Rural Divide Set To Widen [-21% of Cambodian are "food deprived"]

By Marwaan Macan-Markar

BANGKOK, Feb 18 (IPS) - Phnom Penh’s skyline is set for a dramatic change, now that South Korean companies have confirmed plans to build two skyscrapers in the Cambodian capital. The 42-storey Gold Tower is scheduled to be completed by 2011, while a 53-storey structure will be ready the following year.

Such a transformation will invariably serve as visual symbols of the direction this nation has taken on the road to development. It will add to the impressive numbers Cambodia’s has recorded over the past two years, with the economy growing by 11 percent in 2006 and nine percent in 2007.

The likelihood of more tall towers wrapped in glass following these two appears possible. The South-east Asian country ‘’received more than 1,500 requests for construction projects worth 1.5 billion US dollars in the first nine months of 2007,’’ the ‘Phnom Penh Post’ newspaper reported recently, quoting Urban Planning and Construction Minister Im Chhum.

Yet such a picture only confirms why Cambodia is increasingly becoming a country with deep economic divisions, with the economic boom concentrated in only three urban centres -- Phnom Penh, Siem Reap and Sihanoukville -- at the expense of its rural areas, where 80 percent of the country’s 14 million people live.

A new study by a U.N. agency lays bare the extent of food insecurity, high malnutrition and the ‘’food poor’’ in one of this region’s poorest countries still struggling to put behind it the nightmare of a brutal war and oppression that lasted over two decades. ‘’The mix of food products available in Cambodia should normally be adequate for a balanced diet, but productive capacity or purchasing power of many households is limited,’’ states the World Food Programme’s (WFP) ‘Food Security Atlas’.

Currently, close to 35 percent of Cambodians, or some 4.6 million people, live below the poverty line of one U.S. dollar a day. Of that, 90 percent come from rural areas, states findings by the WFP. ‘’In 2005, over 630,000, or 37 percent of Cambodian children aged under five years were suffering chronic protein-energy malnutrition ( or stunting),’’ adds the WFP, quoting figures from the Cambodian Demographic and Health Survey Report.

Cambodian’s classified as ‘’food deprived’’ amount to 21 percent of the population, close to three million people, states the WFP, drawing on the 2007 Food Insecurity Assessment, conducted by, among others, the U.N. Food and Agriculture Organisation. The ‘’food poor’’ are those who eat less than the minimum diet to supply basic energy requirements.

The appearance of Siem Reap among the 10 provinces described as ‘’hot spots’’ due to ‘’high malnutrition rates’’ by the WFP in its mid-February study illustrates the two faces of Cambodia’s development story. For years, the city of Siem Reap has seen rapid growth, with many plush hotels coming up, to cater to the planeloads of tourists flying into the city. Its main draw: the majestic Angkor Wat and the surrounding temples built during the 14th century and before.

Yet the tourist dollars that have been pouring in have not trickled beyond the city’s borders. ‘’Siem Reap is one of the poorest provinces in the country,’’ Thomas Keusters, head of WFP’s Cambodia office, told IPS by phone from Phnom Penh. ‘’Tourism is only focused in the city. But only 15 miles away from the city centre, people are very poor.’’

The Cambodians left out from the city’s growth are those with little education in the province who cannot find jobs in the hotels, adds Keusters. ‘’The people who have found employment are those who can read and write and can help the tourism sector.’’

Cambodia’s weak education system beyond the main urban centres was highlighted Thursday in a report on education trends in the region released by the United Nations Education, Scientific and Cultural Organisation (UNESCO). It has one of the ‘’highest repetition rates’’ of school children in the first grade, at 24 percent, revealed the ‘2008 Education for All Global Monitoring Report’.

In addition, Cambodia and Laos ‘’have the lowest early childhood care and education coverage in South-east Asia, with only nine percent and eight percent of children aged three to five enrolled in pre-primary school, respectively,’’ added the UNESCO study.

Even the World Bank admits that despite Cambodia’s success on some fronts -- such as reducing the number of people living in poverty from 47 percent of the population in 1994 to 35 percent a decade later -- inequality is a problem. During the past 10 years, the consumption power of the country’s richest 20 percent grew by 45 percent, as against an only eight percent rise in the consumption power of the poorest 20 percent, the Bank noted in its 2007 study of equity in Cambodia.

This economic divide exposes what ‘’growth rates do not show, about who is benefiting and who are the losers,’’ says Shalmali Guttal, a senior researcher at Focus on the Global South, a Bangkok-based think tank. ‘’The ordinary people in the rural and urban areas have been losing for years. There is a systemic problem in the distribution of resources.’’

The prospect of immediate change for the economically marginalised appears remote, she explained in an interview, because of the poor being deprived or denied access to land in the rural areas or even to fish in the country’s largest lake. ‘’Fishing concessions have been sold to private companies and the local fishing communities have a little catch, depriving them of income and their main source of protein.’’

Amnesty International (AI) is the latest human rights group to raise the alarm about the harsh measures used by the administration of Prime Minister Hun Sen to support a trend of forced evictions in the urban and rural areas to acquire land for commercial ventures and ‘’development’’ projects. It warned that 150,000 Cambodians are in danger of losing their homes and lands to projects that cater to the whims of the country’s wealthiest.

Vireak and Sopheap are just two people from a village of subsistence farmers near the coastal town of Sihanoukville who were affected last April, said the London-based rights lobby in a mid-February report. Most of the village ‘’was burned to the ground by law enforcement and military officers, forcibly evicting more than 100 families,’’ states AI.

‘’The Cambodian government has adopted policies, supported by international donors, aimed at developing and improving the lives of the poor. But such policies are in stark contrast to the realities experienced by Vireak, Sopheap and other victims of forced evictions, who sink deeper into poverty through the actions of the authorities,’’ added AI.

Thursday, February 14, 2008

Opposition MP called on ADB President to raise corruption issue with Hun Sen during his visit to Cambodia

Haruhiko Kuroda

Development Bank President to Visit Cambodia

By Sok Khemara, VOA Khmer
Washington
13 February 2008


Haruhiko Kuroda, president of the Asian Development Bank, will visit Cambodia next week to discuss assistance programs and future cooperation with senior government officials.

Kuroda will open a railroad rehabilitation initiative and sign a $71 million grant and loan package, said Argun Gosawmi, the ADB’s Cambodia director.

Opposition lawmaker Yim Sovann said Cambodia still faced critical issues surrounding corruption and the loss of $500 million yearly, even as 34 percent of the population lives under the poverty line.

Cambodia is facing a widening gap between rich and poor, as well as instability due to land theft, he said, calling on the international community and leaders such as the ADB—one of the country’s biggest donors—to raise the issue of corruption with the government.

Minister of Public Works Sun Chanthol said Wednesday the railroad would be rehabilitated with the help of the ADB package.

Saturday, February 02, 2008

Vietnamese gamble on Cambodian town Border town casinos show gap between Vietnam's rich and poor since economic reforms

Feb. 2, 2008
Makoto Ota
Yomiuri Shimbun Correspondent (Japan)


The crowds of Vietnamese trying their luck at the casinos that have sprung up in the southeastern border town of Bavet are a tangible example of the widening social divisions in their home country.

While some of the people crossing the border for the casinos in Cambodia (gambling is illegal in Vietnam) are betting millions of dollars, others stay there for the free food-- a mixture of haves and have-nots that has become more evident since Vietnam introduced its "doi moi" policies of economic liberalization in the 1980s.

Seven years ago, Bavet, an hour by car from Ho Chi Minh City, was surrounded by rice paddies. But it now has seven casinos, and is illuminated round-the-clock by neon lights.

A man from Ho Chi Minh City, identifying himself as Quon, was playing baccarat at a table lit by chandeliers.

"I never keep track of how much I bet," he said as he placed another 500 dollars bet after having just lost 500 dollars. "Probably several thousand dollars a day," the 45-year-old Quon said.

More than 90 percent of the 7,000 visitors the casinos receive each day are Vietnamese. Food and drink is free, while complimentary accommodation is available next door for those placing a certain amount in bets.

The average monthly income in Vietnam is about 150 dollars, though some of the guests clearly earn far more than this. The 32-year-old Vietnamese assistant manager of the Le Macau casino, the oldest casino in the area, said: "Betting tens of thousands of dollars is nothing special here. I know one customer who spent 2 million dollars."

The casinos have benefited from the money flowing out of Ho Chi Minh City.

"I made a fortune thanks to my connections with the [Vietnamese] government," one patron said. "I bought some real estate after obtaining some useful information and sold it on. With the surging property market, I knew I'd make money."

As there is no private land ownership in Vietnam, trade in land-use rights is roaring, creating a housing bubble in the country.

The assessed value of the land per square meter in front of the Ben Thanh Market, in the center of Ho Chi Minh City, was 200,000 dollars, or 21.7 million yen, in 2006--more than the 19 million yen the same-sized piece of land would cost in Tokyo's ritzy Ginza 2-chome.

But while some Vietnamese have benefited from the emerging market economy, many have been left behind, and have even abandoned their hometowns altogether for Bavet.

A 50-year-old man identifying himself as Tieng came to Bavet with his wife from the southern province of Tay Ninh in Vietnam eight months ago. Tieng said that back home he worked irregularly as a day-laborer, earning about 37 dollars in a good month.

But he said that he now earns enough to make a reasonable living through gambling, having three meals a day at the casinos and sleeping on a sofa.

"I can earn 10 dollars a day," Tieng said. "Everything I earn is profit, because we don't need to pay for food."

Tieng said about 20 Vietnamese have left their hometown because of poverty and settled in the casinos, adding the number of "settlers" has been growing as rumors of easy money spread.

Income disparities in Vietnam have been widening steadily under the doi moi policy. According to statistics from the United Nations, 29.9 percent of the gross national income is held by rich people, who account for just 10 percent of the population.

The figure is comparable to that in China, a country facing its own problems with inequality, where about 33 percent of the country's wealth is held by the rich.

Tuesday, January 22, 2008

Recent Events Underscore Our Loss of Dignity

Opinion by Muoy You
sent to The Cambodia Daily


Last week, three pieces of news and events made me reflect on the condition of our country.

A poor man knocked a powerful man unconscious with a steel pipe and rammed the man's car into the wall of his house. While nobody can condone such violence, it might be helpful to reflect on what caused this act of rage. We usually read about the poor robbing, attacking or killing other poor for money or grudge. The rich and powerful were up to then immune from such danger. Not any more, it seems.

When frustrations build, they lead to anger and rage. Fences, however tall, and barbed wire, however impressive, could not protect one that was the object of hatred.

In some countries, a king, a queen, a minister or a mayor can be seen in the streets, going on a bike or public transport, on their own, without body guards. They have nothing to fear from their people. Such a thing is unimaginable in Cambodia. Why? Is it status or fear or both? If it’s fear, why?

There can be only two reasons. A: they have too many enemies, or B: they have no faith in the police.

And what turns a man into an enemy? When he is not given a chance and when he is robbed of his hope and dignity. What is dignity? I was there in my reflection when a piece of news gave me the answer to the question.

It seems Cambodia is less poor now. Its GDP has increased, there are less people living under the poverty line. I was really happy with this good news until I read that the poverty line was $0.45 per day.

What can one do with $0.45 a day? Why don’t we all try to live with $0.45 for a day to see how it feels? I had the experience ten years ago, trying to live with, not $0.45 but $1 a day. It was ten years ago and I didn’t take the rent or transport into account, just food for just myself. I knew what it was like to count every cent before buying something, to choose always the cheapest, to pretend I was not hungry. Now in 2008, what can one do with 1800 riel a day? One cannot even have a car wash. But of course, the poor do not have cars to wash. Only their dignity is washed away.

In 1979, the Cambodian people were the most equal in the world—all of them had nothing. Twenty nine years later, the gap is Himalayan—some have millions of dollars and the crowd has $0.45 a day. How could this have happened?

Some say those poor are lazy or stupid otherwise they would have made it like the others. Either that—we are a nation of lazy and stupid people—or there is something wrong in the economic management of the country and the values that govern our lives. A car knocked a man down. The owner came out and went to check the damage done to his car before he noticed the man and told him off— so much for individual dignity. What about our dignity as a nation?

Muoy You
Phnom Penh

Thursday, October 04, 2007

Cambodians Still Stuck in Poverty

Thursday October 4, 2007

Cambodians Still Stuck in Grim Poverty Despite Recent Rapid Economic Growth

PHNOM PENH, Cambodia (AP) -- The vast majority of Cambodians continue to live in poverty and lack choices for their future despite their country's rapid economic growth, according to a government report released Thursday.

Widening inequalities in incomes, child malnourishment, children dropping out of school at an early age, high maternal mortality rates and rising land conflicts are among the hardships of the rural poor, according to the Cambodia Human Development Report 2007 released on Thursday.

At the same time, the Cambodian economy has been one of the fastest growing in Asia, expanding at 11.4 percent in each of the past three years.

But "further beneath the surface of double-digit growth rates, potentially serious imbalances and challenges to recent achievements are emerging," said the report, whose research and publication was financed by the United Nations development agency, UNDP.

Other grim pictures include the fact that each year some 30,000 Cambodian children die from preventable causes such as malaria, dengue fever and diarrhea, it said.

It warned that the problems could spell "major setbacks" for Cambodian economic growth, which has so far been concentrated in urban areas.

Some 35 percent of Cambodia's 14 million people live below the national poverty line of just 1,826 riel ($0.45) a day.

Cambodia's recent economic growth has been fueled largely by the garment industry. Last year's exports were worth $2.6 billion, accounting for nearly 80 percent of total exports.

Friday, September 28, 2007

Asia Has Deja Vu as Corruption Leaves Its Mark: William Pesek

By William Pesek

Sept. 28 (Bloomberg) -- To understand what has Filipinos such as Jose de Venecia III so incensed these days you can try dissecting a complicated deal between his government and China's ZTE Corp.

Or, you could just skim Transparency International's latest take on corruption. It's sober reading and speaks volumes about why many Filipinos, and Asians in general, aren't benefiting much from the region's boom.

The Philippines is a case in point. It slid to 131st place in the 2007 corruption perceptions index, putting it in the same league as Burundi, Honduras and Yemen. In 2006, the Philippines was ranked 121st compared with 117th in 2005.

President Gloria Arroyo would no doubt dispute these findings. Her message these days is of revival and fiscal sobriety. With the economy growing 7.5 percent and the budget in surplus for a third consecutive month in August, Arroyo argues that things are looking up in her nation of 91 million people.

De Venecia's case helps explain why such optimism is more spin than reality.

The 44-year-old businessman was bidding on a state Internet project. In provocative Senate hearings in Manila last week, De Venecia explained how the president's husband, Jose Miguel Arroyo, told him to ``back off'' in favor of a rival working with ZTE, China's biggest publicly traded telephone-equipment maker.

Scandals Galore

A former official, Romulo Neri, says he was offered a 200 million-peso ($4.4 million) bribe by Commission on Elections Chairman Benjamin Abalos when they discussed the deal. That allegation, denied by Abalos, thickened the plot because President Arroyo is still under suspicion for allegedly conspiring with commission officials to rig the 2004 election.

The ZTE scandal is dominating the Philippines, lowering Arroyo's already dismal approval ratings and sparking coup rumors. All this is a bit too familiar; Arroyo herself became president after Joseph Estrada was ousted in 2001 amid popular demonstrations backed by the military.

Estrada's downfall was corruption. On Sept. 12, he was convicted of embezzlement and sentenced to life imprisonment. President Arroyo's economic-revival story isn't getting across partly because scandals are drowning her out. Yet the bigger reason is a justified sense of skepticism that even if the economy is improving, most Filipinos won't enjoy it.

Corruption's Costs

Corruption is a key reason why, and a lack of progress in combating it remains a major blight on Asia's post-1997-crisis restructuring efforts.

Cambodia, China, India, Indonesia, Laos, Macau, Myanmar, South Korea, Sri Lanka, Thailand and Vietnam also lost ground in 2007, according to Berlin-based Transparency International. The strong correlation between corruption and poverty means the benefits of growth are concentrated among the politically connected and bypass many who most need it.

There were pockets of success that shouldn't go unnoticed by investors. Pakistan rose to 138th place in 2007 versus 142nd in 2006 and 144th in 2005. A slight improvement was seen in Hong Kong, Malaysia and Singapore, while Japan, Mongolia and Taiwan held steady over the last 12 months.

Yet the broader trend in Asia is discouraging. The Philippines, for example, hasn't been able to bring the Marcos family to justice 21 years after Ferdinand Marcos was ousted from the presidency. Indonesia has had no more luck taking former President Suharto to task.

Cronyism

Lawyers for both dictators earlier this month rejected a United Nations report that they embezzled as much as $45 billion. Suharto allegedly stole as much as $35 billion, averaging 1.3 percent a year of Indonesia's gross domestic product during his 32-year reign. Marcos allegedly took as much as $10 billion over two decades, or an annual average of 4.5 percent of GDP.

Asia doesn't have a monopoly on dodgy dealings. Anyone making that argument can be quickly defused by the mention of names like Enron Corp. or Parmalat SpA. Yet even with its high growth rates and buoyant stock markets, Asia is home to roughly two-thirds of the world's poor.

Making matters worse are signs that the region's rich-poor divide is widening. In a report last month, the Manila-based Asian Development Bank concluded that Asia's rich are growing wealthier much faster than the poor are climbing out of poverty.

The buzz in Asia is how well things are progressing 10 years after the region's financial crisis. In 15 of 21 countries the ADB studied, income inequality has increased.

Prosperity's Underbelly

``The rise in inequality we see in Asia today constitutes a clear and present danger to the sustained growth of Asian countries,'' says Ifzal Ali, the ADB's chief economist.

As history has shown in Asia, growing inequality could lead to social conflicts from street demonstrations to violence. The pro-democracy protesters mounting the biggest challenge to Myanmar's military regime since 1988 are a case in point.

Inequality also matters because multinational companies are relying on Asia's emerging middle class to buy their goods and services. If the phenomenon holds back Asian economies, the fallout will be felt by corporate executives a world away.

Disparity is the ugly underbelly of prosperity in Asia, and something to which governments and investors need to pay more attention.

To contact the writer of this column: William Pesek in Tokyo at
wpesek@bloomberg.net

Tuesday, August 21, 2007

Inequality Check

August 21, 2007
The Wall Street Journal (USA)

A wise man once noted that a rising tide lifts all boats. So why are booming Asian countries so worried about income inequality? Such talk is hardly cheap. If these fears spur bad economic policies, it could end up costing Asia dearly.

The worries were fanned this month by a report from the Asian Development Bank. The study, comparing more than a decade's worth of data from 22 developing countries, found significant increases in inequality across the region. "Widening disparities in standards of living can threaten the growth process in one of the most dynamic regions of the world," the bank noted in its press release unveiling the report.

National leaders agree. India's newly installed President Pratibha Patil marked the 60th anniversary of her country's independence this week by claiming that "growth, when unevenly spread, dwarfs overall prosperity. We have to ensure equitable growth for all." In Tokyo, Prime Minister Shinzo Abe's cabinet has floated the possibility of a negative income tax to stem growing income inequality. Hong Kong Chief Executive Donald Tsang has made battling inequality one of his top priorities. Singaporean Prime Minister Lee Hsien Loong noted on the city-state's national day last week that the rising income gap is a "major challenge."

There is evidence that inequality is rising in Asia. The ADB's report finds that inequality as measured by the Gini coefficient -- a statistical tool commonly used to gauge the severity of income differentials -- is growing across Asia, from Nepal and China to South Korea, India and Bangladesh. In some places the uptick is marked. (The Gini coefficient ranks income on a percentile basis. In Asia, the ADB used consumption, rather than income data, due to lack of better data.)

But, as the ADB notes, this doesn't mean the rich are taking food from the mouths of the poor. Rather, the rich are getting richer faster than the poor are. In all but one developing country, per capita incomes for the bottom fifth of the work force increased at least slightly; Pakistan was the only exception. This trend is also evident from other measures of poverty. In China, the proportion of people living on $1 a day declined by an average of 8.75% a year between 1993 and 2004, even as inequality (measured by the Gini coefficient) increased by 1.35% a year.

Other measures also point at dramatic improvements in the lives of the region's poor. India's statistical office reported earlier this year that 54% of rural households (which are more likely than the urban to be poor) had electricity in 2004-05, up from 34% in 1993-94. Prime Minister Manmohan Singh complained in June that inequality breeds social unrest because "the electronic media carries the lifestyles of the rich and famous into every village and every slum." That's because the poor can increasingly afford television sets: The percentage of rural households with TVs increased to 26% in 2004-05, up 7% from 1999-2000.

It's a story that's being repeated in the unlikeliest of places. In Cambodia, whose Gini-measured inequality clocked the third-greatest increase in the ADB study, life expectancy at birth has increased to 57 years in 2005 from 42.6 years in 1960, according to the World Bank. The proportion of births attended by trained medical staff increased to 43.8% in 2005 from 34% in 1998.

And while developed countries like South Korea saw an increase in inequality, according to the ADB, and Japan and Singapore (not included in the bank's report) worry about their own income disparities, citizens aren't exactly suffering the pangs of hunger. They're too busy talking on the phone. For every 100 people in these countries, there are, respectively, 131.4, 118.22 and 132.67 mobile- and land-based telephone lines.

* * *
Poverty remains a serious problem throughout Asia -- the ADB estimates 600 million people still live below the $1-a-day line, to use one popular measure. But "fixing" inequality won't fix poverty.

As even the ADB recognizes, inequality can be a symptom of economic growth. Not everyone can experience equal income growth simultaneously. China's rising inequality, for example, is fueled by growing numbers of people transitioning to higher-paying manufacturing and construction jobs from low-income agricultural work. A policy of allowing successful people to keep their gains -- by not subjecting them to redistributive tax policies -- rewards risk takers and creates incentives for others to try to emulate them.

Likewise, not all inequality is, well, equal. While inequality of outcome can be a good thing, inequality of opportunity is another matter. A caste system or corrupt government can contribute to the kind of "structural inequality" that hinders development by making it harder for entrepreneurial people to get ahead.

The ADB worries that too much of the good inequality can lead to the bad variety by entrenching a new set of self-interested elites. But to the extent that's a danger, the best solution is political, not economic. Economists like New York University's William Easterly have filled books with stories of how corrupt, unaccountable governments embezzled money out of programs designed to tackle inequality of opportunity. True democracy, complete with universal suffrage, rule of law and transparent government, is the most reliable method for keeping oligarchs in line.

The danger is that all this talk of "inequality" will lead to policies that, in the name of redistributing income, reduce economic growth and thus make it harder for Asia's poor to join the middle class. The Asian "pie" is growing for everyone. The challenge is to keep it that way, instead of quarreling over the relative size of the pieces.

Wednesday, August 08, 2007

ADB: Relative inequality has increased sharply in Cambodia [- Hun Sen's predicted farmers revolution in progress?]

Inequality rising across Asia, ADB says

08-08-2007
Reuters

BEIJING: Inequality is rising across most of Asia, partly as a result of globalisation favouring the well educated and penalising the less skilled, the Asian Development Bank said on Aug 8.

The Manila-based lender said its findings did not mean Asia should turn its back on integration into the world economy or on market reforms.

Rather, governments needed to pursue a range of policies to reverse the trend of the rich getting richer faster than the poor, the ADB said in a report released in Beijing.

To lift the incomes of the poor, the ADB called for more public investment in agriculture; better job opportunities in the rural sector and informal urban economy; and a switch in spending from tertiary to basic education.

Alluding to the power wielded by Asia's rich elites, the report also said there was a need to recognise and limit "the very real danger that concentrations of income and wealth pose for social cohesion and growth-promoting policies and institutions".

The ADB's report, "Key Indicators 2007", acknowledged the formidable challenge of crafting policies that spread income in a way that does not sap growth.

"But the need for redistributive policies will not go away -- especially if increasing inequalities turn out to be an enduring feature of developing Asia over the next two or three decades," the ADB said.

Inequality had certainly been a salient feature of the region's development in the past decade or so, the report said.

Relative inequality has increased sharply in Nepal, China, Cambodia, Sri Lanka, Bangladesh and Laos.

In China, it is now at a level more usually associated with Latin America and sub-Saharan Africa. The country's Gini coefficient stood at about 0.47 in 2004, up from around 0.40 in 1993, according to the ADB.

In a society where income was perfectly distributed, the Gini coefficient would be zero; if all the income was concentrated in the hands of one person, it would be 1. A reading over 0.4 is considered by economists to be a cause for concern.

Absolute inequality -- measured by actual dollar differences in incomes -- has also increased virtually everywhere, with the richest 20% of Asians enjoying much bigger increases in living standards than the poorest 20%.

This trend was evident even in countries such as Indonesia and Malaysia where relative inequality had declined, the report said.

Inequality to some extent is a natural part of development. Not everyone can get rich at the same time. Wealth trickles down.

But the ADB said globalisation was playing a major role in accentuating inequality by creating more opportunities for the mobile professional at the expense of the unskilled labourer.

"Widening differentials in earnings of the college-educated vis-a-vis less-educated individuals appears to be the single most important observable factor accounting for increasing inequality," the ADB said.

Thursday, July 19, 2007

WB aid grant: Is it really to reduce poverty or fatten the rich government officials?

World Bank Gives $15 Million Aid Grant

Heng Reaksmey, VOA Khmer
Original report from Phnom Penh
18 July 2007

The World Bank has promised $15 million in poverty reduction and development grants that will focus on good governance.

"Firstly, we foresee higher rates of growth and poverty reduction through an improved investment climate, higher agricultural productivity and more effective public service delivery," World Bank Vice President for the East Asia and Pacific Jim Adams said in a statement. "Secondly, a reform dialogue with Government that's focused on governance and results, and thirdly, greater alignment of development partner policies and financial support."

Finance Minister Keat Chhon said in a statement the country's poverty reduction strategies had led to "substantial" improvements in Cambodia's economy.

Cambodia's economy has seen rapid growth rates in recent years, while fewer now live below the poverty line, the World Bank said.

Other economists, however, have cautioned that increased growth rates don't always translate into prosperity for Cambodia's poor. The higher economic growth rate, in reality, has meant a widening gap between the rich and poor, they warn.