About Cambodia_Economic Development

8/17/2019 About Cambodia_Economic Development

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Introduction

Girl students in a rural secondary school ride their bicycle back home. (Photo: UNDP Cambodia)

The Kingdom o Cambodia is situated in the south!est o the "ndochinese #eninsular and has arich culture that dates back $%&&& years ago. The country has a land area o ''%&* s+uare

kilometres and #o#ulation o ',.- million #eo#le /oP% Po#ulation Pro0ection% $&'&1. 2ike in therest o 3outheast 4sia% Cambodia5s climate is characteri6ed by t!o main seasons: the monsoon%!hich brings rain rom mid7/ay to 8ctober% and dry season rom No9ember to 4#ril.conomically% Cambodia has en0oyed strong gro!th rates during the #ast decade. The economyis #ro0ected to #ost a ;.< #ercent gro!th in $&'. GDP #er ca#ita is U3='%&< />?s statementon $$ @uly $&'1 com#ared to a##roAimately U3=$&& in'--$% #utting Cambodia !ell on its !ayto become a lo!er7middle income country in the near uture.

History

Cambodia gained its inde#endence in '-*. 3ince then and through to '-;&% it !as a sel7suicient and #ros#erous country that eAcelled in many areas o de9elo#ment. >ollo!ing aneAtended #eriod o ci9il !ar% the Paris Peace 4ccord in '--' created the United NationsTransitional 4uthority (UNT4C)% !hich !as backed by some $$%&&& United Nations #eacekee#ers to #re#are the irst ree and air election in the country. "n /ay '--% UNT4Csu#er9ised Cambodia5s irst general election. Bis /a0esty Preah at Norodom 3ihanouk !asreinstated as King. "n $&&,% he abdicated the thro!n and his son% Norodom 3ihamoni% !aselected by the Thro!n Council to be the King o Cambodia in 8ctober that year. >ormer King3ihanouk #assed a!ay in 8ctober $&'$.

Cambodia is a #arty to a number o international con9entions. They include 4nti7Personnel /inean Con9ention (8tta!a Treaty ratiied @uly '---)% Con9ention on the limination o 4ll >ormso Discrimination against Eomen (CD4E ratiied 8ctober '--$)% UN >rame!ork Con9entionon Climate Change (UN>CCC ratiied December '--*)% Con9ention on the Fights o Persons!ith Disability (CFPD December $&'$)% Con9ention on the Fights o the Child (CFC ratiied8ctober '--$)% and se9eral international co9enants on social% cultural% economic and #oliticalrights.

Challenges


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Eomen in rural area discussing to create regulations to use !ater #um#ed rom a solar #anel intheir 9illage. (Photo: UNDP Cambodia)

Cambodia5s achie9ements in economic de9elo#ment during the #ast t!o decades ha9e resulted insigniicant reduction in the #o9erty rate% !hich stood at '-. #ercent in $&'' /8P% Fedeiningthe Po9erty 2ine% 4#ril $&'1 com#ared to *& #ercent in '--$. Bo!e9er% there remain many

challenges or Cambodia to address. 8ne o them is the gro!ing ine+uality income dis#arity%regional dis#arity bet!een the urban #o#ulation and the rural #oor% and gender dis#arity. Eomencontinue to ace disad9antages in getting secondary and higher education% decently #aidem#loyment o##ortunities and decision7making roles in the go9ernment5s institutions. Gender7 based 9iolence remains a serious issue.Cambodia has entered into a demogra#hic bonus #eriod. Houth% deined as an age grou# bet!een'* and & years old% makes u# #ercent o the #o#ulation /8H3% National Policy onDe9elo#ment o Cambodian Houth1. This re#resents a signiicant young labour orce. 4nestimated &&%&&& young Cambodians UNCT5s Common 4d9ocacy Point% $&''1 enter the labor market e9ery year% but oten they do not ha9e the re+uired skills to meet the needs o the labour market. Thereore% e+ui##ing young #eo#le !ith +uality education and skills is crucial to ensure

that Cambodia mo9es to!ards im#ro9ed e+uality and !ealth or its citi6ens. The +uality o theyoung #eo#le !ho !ill 0oin the labour orce !ill determine !hether Cambodia can takead9antage o the demogra#hic bonus #eriod% a one7time o##ortunity or de9elo#ment.

Cambodia has a rich bio7di9ersity% including an array o di9erse organisms and orest resource on!hich many #oor #eo#le in the countryside de#end or li9elihood. Bo!e9er% in recent years theorest resource has increasingly come under #ressure rom economic land utili6ation./ean!hile% the country is kno!n to be 9ulnerable to im#acts o climate change due to its lo!ada#tation ca#acity. Fural #o#ulations are most at risk to destructi9e climatic e9ents such loodand drought.

2andmines and eA#losi9e remnants o !ar (FEs) continue to #ose obstacle to the ad9ancemento de9elo#ment es#ecially in the countryside des#ite #rogress made in clearing them during thelast t!o decades. Cambodia has set target to clear some


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Cambodia to become an u##er7middle income country in $&&. Feaching the lo!er7middleincome country status re#resents a signiicant milestone or the country. Het% it also re#resents achallenge to its uture de9elo#ment #ros#ect. "t stands to lose some o the #ri9ileges and #reerences in terms o 8icial De9elo#ment 4ssistance (8D4) that it has been en0oying so ar as a least de9elo#ed country. 8D4 is eA#ected to go do!n% com#elling Cambodia to raise

national re9enue and inance #ublic ser9ices by mo9ing to!ards a more sel7sustaining economy.

Successes

4 amily beneitting rom mine7clearing #ro0ect in North7Eestern attambang #ro9ince gro!green bean seeds in their arm% !hich used to be contaminated by landmines. (Photo: UNDPCambodia)

89er the #ast nearly t!o decades% Cambodia5s economy has been among the astest gro!ingeconomies% unmatched by any other #ost7conlict society. >actors contributing to this asteconomic gro!th included: restoration o #eace and security large #ublic and #ri9ate ca#italinlo!s economic o#enness airly stable macroeconomic conditions and dynamic andintegrating neighborhoods. 4s a result% Cambodia has registered massi9e gains and

im#ro9ements on human de9elo#ment as measured by the BD": lie eA#ectancy at birth%educational attainments and #ro9iding decent li9ing standards measured in Gross National"ncome (GN") #er ca#ita (Purchasing Po!er Parity). et!een '--* and $&'$% Cambodia5s GN" #er ca#ita increased by some '


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"/> Concludes $&'* 4rticle "J Consultation /ission to CambodiaPress Felease No. '*I';

@uly % $&'*

nd7o7/ission #ress releases include statements o "/> sta

teams that con9ey #reliminary indings ater a 9isit to a

country. The 9ie!s eA#ressed in this statement are those o the

"/> sta and do not necessarily re#resent the 9ie!s o the

"/>5s Aecuti9e oard. ased on the #reliminary indings o

this mission% sta !ill #re#are a re#ort that% sub0ect to

management a##ro9al% !ill be #resented to the "/>?s

Aecuti9e oard or discussion and decision.

4n "nternational /onetary >und ("/>) team led by /s. 3onali @ain7Chandra 9isited Phnom Penh during @une $$@uly %

$&'* to conduct discussions or the $&'* 4rticle "J consultation' !ith Cambodia. The team assessed macroeconomicde9elo#ments and held #olicy discussions !ith ministers and senior oicials o the Foyal Go9ernment o Cambodia% and

met a large grou# o stakeholders% including re#resentati9es o the academic and business community% ci9il society% and

de9elo#ment #artners.

4t the conclusion o the 9isit% /s. @ain7Chandra issued the ollo!ing statement:

conomic acti9ity remains strong dri9en by construction% real estate and garments eA#orts. GDP gro!th is estimated at ;

#ercent in $&', and is eA#ected to stay at the same le9el this year. 4ter declining in early $&'* due to the shar# oil #rice

decline% inlation is eA#ected to rise moderately to $.< #ercent by end7$&'*. The current account deicit remains largely

inanced by oreign direct in9estment (>D") and oicial loans% and is #ro0ected to moderate o9er the medium term%

su##orted by eA#ort gro!th and the com#letion o large #o!er #ro0ects. Gross oicial reser9es stood at U3=,., billion in

December $&',% nearly , months o #ros#ecti9e im#orts.

The macroeconomic situation and outlook are thus a9orable% although there are do!nside risks. 4 #rotracted gro!th

slo!do!n in uro#e or a stronger dollar !ould constrain garments eA#orts. Eeaker7than7eA#ected gro!th in China !ould

ha9e s#illo9ers through the >D"% banking% and tourism channels. 8n the domestic ront% ra#id credit gro!th% #articularly

to the buoyant real estate and construction sector% intensiies inancial stability risks. 4ny erosion o com#etiti9eness

could ad9ersely aect eA#orts and in9estment.

4gainst this backdro#% discussions ocused on ho! best to continue Cambodia5s successul de9elo#ment by saeguarding

macro7inancial stability% securing iscal buers% and #romoting com#etiti9eness% di9ersiication and inclusi9e gro!th.

Fa#id inancial dee#ening in Cambodia re+uires careul macro7inancial risk management to ensure inancial stability. "n

this regard% the recent eA#ansion o reser9e re+uirements to co9er oreign borro!ing and the enhanced ocus on li+uidity

risk management are ste#s in the right direction. Continued de9elo#ment o negotiable certiicates o de#osits (NCD)

markets launched by the National ank o Cambodia and ormali6ation oreign eAchange markets !ould su##ort market7

based monetary #olicy o#erations% better li+uidity management% and the #romotion o local currency.

/oderating credit gro!th to a more sustainable le9el !ould re+uire additional tightening o monetary #olicy and

strengthening regulation and su#er9ision. Ehile stronger enorcement o micro7#rudential regulations and continued

strengthening o su#er9isory ca#acity can moderate the build7u# o credits risks% !ell7designed macro7#rudential #olicies

https://www.imf.org/external/np/sec/pr/2015/pr15317.htm#P19_763https://www.imf.org/external/np/sec/pr/2015/pr15317.htm#P19_763


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could #lay an im#ortant su##orti9e role. Gi9en the gro!ing systemic im#ortance o micro7inance institutions% regulatory

and su#er9isory u#grades are !arranted. The buoyant real estate market also needs close monitoring and urther

strengthening o regulatory rame!orks to ensure that the sector can su##ort gro!th !ithout com#romising inancial

stability.

3trong re9enue #erormance su##orted by the Fe9enue /obili6ation 3trategy (F/3) and solid gro!th ha9e eased

immediate iscal #ressures and im#ro9ed iscal buers by re#lenishing go9ernment de#osits. The iscal deicit narro!ed(including grants) to '. #ercent o GDP in $&',% #rimarily dri9en by stronger re9enues. Going or!ard% institutionali6ing

the F/3 reorms to sustainably increase re9enues !ould be im#ortant to secure iscal sustainability. 4lso% urther !age

increases should be contingent on #ro0ected iscal #erormance (such as meeting re9enue targets and maintaining an

ade+uate iscal buer). Continued ocus on u#grading the +uality o #ublic ser9ices by dee#er and eiciency7enhancing

ci9il ser9ice reorm and by linking budget to #olicy through the Public >inancial /anagement reorm #rograms is needed

to better su##ort the momentum o iscal consolidation o9er the medium term. 4lthough debt remains sustainable !ith a

lo! risk o distress% closer monitoring o iscal risks rom contingent liabilities and urther strengthening o ca#acity to

analy6e these risks !ould hel# saeguard the iscal s#ace.

The ongoing regional transormation oers a uni+ue o##ortunity or Cambodia to di9ersity its #roduction base and mo9e

u# the 9alue chain. "m#ro9ing com#etiti9eness and human ca#ital !ould make gro!th more sustainable and inclusi9e. To

take better ad9antage o regional o##ortunities and Cambodia5s o!n demogra#hic di9idend% continued im#ro9ement inskills and 9ocational training% energy and logistics% and the business climate is critical.L


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Cambodia: "n9esting in human ca#ital critical orsustaining gro!th23 Feb 2015 (UND!

/s. Jin Fattana%

middle% su#er9ises her colleagues at a car garage she manages in 3iem Fea# #ro9ince. (Photo: UNDP Cambodia)

Ehen /s. Jin Fattana com#leted high school a decade ago% her #arents did not ha9e enough money to send her

straight to study or a uni9ersity degree. ut that !as not the end o the road or her. 3he enrolled in a technical

training school to learn ho! to iA cars.

Ehene9er " came home during the school break% my riends !ould ask me !hat are you studyingML " told them "

learn about car mechanics and electrical systems. The laughed at me and said as a !oman you should not do that

because !hen you inish you !on5t be able to iA cars like men5%L '7year7old Jin Fattana recalled.

Today% she is a manager o a garage that sells @a#anese car in 3iem Fea# #ro9ince. "n by#assing the direct route to

uni9ersity to obtain technical skills irst% her 0ourney to her #resent 0ob makes an eAam#le that is at the heart o the

discussion about ho! to de9elo# human ca#ital in Cambodia.

The country is #oised to embrace ull economic integration !ith 434N at the end o $&'*. ut there are gro!ing

concerns that too little in9estment in human ca#ital !ill continue to limit em#loyment o##ortunities or young


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#eo#le. 4lmost t!o7thirds o the #o#ulation are under & years old% but !ith little education in #ossession% most o

this #otential labour orce is usually stuck at the lo! end o the 0obs market.

2ike other de9elo#ing countries% Cambodia is mo9ing into a kno!ledge7based global economy. That means it needs

to oster creati9ity% skills and inno9ation in its !orkorce. ut the country5s #ublic education system is under7unded%

and e9en !ell7educated graduates also ace #roblems as 0ob com#etition is getting tougher and tougher.

"n the last t!o decades !e ha9e #roduced so many students in accounting and business. ut1 !e ha9e only $.*

#ercent o students studying agriculture% and Cambodia is an agriculture country. Ee ha9e only #ercent o students

studying engineering% and Cambodia needs more engineers and technicians%L B. . Bang Chuon Naron% /inister o

ducation% Houth and 3#ort% said in an inter9ie!.

>or Cambodia to mo9e or!ard% !e need to #roduce more engineers% more agronomists% more #eo#le in other

sectors% not 0ust in business and accounting% he added to eA#lain the /inistry5s strategy.

/inister o 2abour and Jocational Training% B. . "t 3am Beng% agreed. Be said the go9ernment is #utting greater

em#hasis on gi9ing young Cambodians the technical skills they need to com#ete !ithin the 434N rame!ork. Be

added that the #ri9ate sector also has an im#ortant role to #lay.

The Foyal Go9ernment o Cambodia has already determined that the #ri9ate sector is the locomoti9e dri9ing our

gro!th. This #artnershi# is crucial in t!o !ays in ostering #ri9ate 9ocational training school and in ostering

coo#eration bet!een #ri9ate industry and the 9ocational training institutions o the go9ernment%L he said.

Buman ca#ital de9elo#ment is a key area !here UNDP is #ro9iding #olicy su##ort to the go9ernment5s strategies

that !ill hel# generate skills and em#loyment o##ortunities or Cambodians% #articularly the youth.

Buman ca#ital is critical. Unless the +uality o the human resources and labour orce is good to add 9alues they !illnot be able to contribute to the Cambodian economy%L said /s. 3etsuko Hama6aki% Country Director o UNDP in

Cambodia.

The t!o7year technical training changed /s. Jin Fattana5s lie. 3he !as ne9er bothered by her riends5 laughter

about her studying car mechanics. 4ter graduating rom the college% she !orked in a smaller garage !hile

managing to sa9e money to u#grade her studies until obtaining a master5s degree in business management t!o years

ago. No! she is a mid7le9el boss at a bigger% more modern garage !here male mechanics are doing the greasy !ork

o iAing cars under her su#er9ision.

4t #resent% the ability o our Cambodian youth to com#ete is still limited. That is !hy !e ha9e to make a lot o

eort to mo9e them rom attem#ting to hit 0ust a single target in education. They must di9ersiy to ha9e additional

skills. y doing so !e ho#e to become more com#etiti9e !ith our #artners in 434N%L Fattana said.

>or her there5s no looking back. 3he is irmly on her !ay to tackle ne! challenges !ith conidence and the

necessary skills to com#ete. This is one o Cambodia5s success stories one that could hel# ins#ire other young

Cambodians to ollo! in building career #ath to!ards a better lie.


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Ca"bodian agriculture in transition # o$$ortunities and

ris%s (&nglish!'S)*'C) +,*-D 'N.

This re#ort seeks to understand the successes% challenges and o##ortunities o Cambodia5s agricultural

transormation o9er the #ast decade to deri9e lessons and insights on ho! to maintain uture agricultural

gro!th% and #articularly on the go9ernment5s role in acilitating it. "t is #re#ared #er the re+uest o the

3u#reme National conomic Council and the /inistry o 4griculture >orestry and >isheries and is based

on the #rimary arm data sur9eys rom $&&* and $&'% and the secondary data rom 9arious sources. "n

$&'7$&',% the agricultural gro!th slo!ed do!n to ' #ercent rom its a9erage o *. #ercent o9er $&&,7

$&'$. "s the country in transition to a slo!er agricultural gro!thM Cambodia can ill aord it because

agricultural gro!th !ill be critical to continued #o9erty reduction in the country% gi9en its large si6e in the

economy. /arket and #ri9ate in9estment riendly #olicies and targeted #ublic sector in9estments in

irrigation% eAtension% and other O#ublic good5 agricultural ser9ices% as easible !ithin the go9ernment5s

total budget% can hel# secure continued robust agricultural gro!th. The remaining re#ort is organi6ed as

ollo!s. Cha#ter t!o #resents key acts about Cambodia5s recent agricultural de9elo#ment using data

rom national accounts and 9arious re#orts. Cha#ter three #ro9ides e9idence rom the ield that eA#lains

the changes obser9ed in the national accounts. Cha#ter our illustrates de9elo#ments in arming systems%

arm budgets% and arm incomes com#ared to nonarm incomes. Cha#ter i9e #resents a arm

com#etiti9eness analysis. Cha#ter siA discusses the sources o #ast gro!th and their limitations and

#resents an analysis o (likely) uture sources o agricultural gro!th. Cha#ter se9en #resents a long7term

9ision or the sector% !hile cha#ter eight simulates #olicies and the changes in arm incomes needed to

reali6e this 9ision. Cha#ter nine discusses the #olicy agenda% !ith im#lementation details based on

national and global eA#eriences. Cha#ter ten concludes !ith a summary o the re#ort and #olicy

recommendations. 4nneAes #resent the methodology o the $&' arm sur9ey% detailed arm budgets by

cro#% #ro0ections o selected indicators% and results o the #olicy simulations.


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Po9erty has allen% yet manyCambodians are still at risk o sli##ing

back into #o9erty% ne! re#ort inds>ebruary $&% $&', by !orldbank

hno" enh/ February 20/ 201 Cambodia has eAceeded the /illennium De9elo#ment Goal

#o9erty target and is one o the best #erormers in #o9erty reduction !orld!ide% according to a ne!

Eorld ank Po9erty 4ssessment Fe#ort. The #o9erty rate more than hal9ed% rom *Q ($&&,) to

$&.*Q ($&''). Today% a##roAimately t!o out o '& Cambodians are #oor% com#ared !ith i9e out o

'& in $&&,.

4ccording to the re#ort% increased rice #rices and increased rice #roduction greatly contributed to

#o9erty reduction% along !ith greater road access or armers to markets% better access to market

inormation through mobile #hones% im#ro9ed irrigation% and a liberal undistorted agricultural

market.

"This is good news for Cambodia. The pace of poverty reduction surpassed expectations. When a

similar poverty assessment was undertaken in 200! the aspirational goal was for Cambodia to halve

poverty by 20#. Cambodia already reached that goal in 20!$ said'lassane So/ the +orld

an%s Country anager 4or Ca"bodia

Ca"bodia Headcount o6erty *ate/ 20072011

3ource: Ehere Ba9e 4ll the Poor GoneM Cambodia Po9erty 4ssessment $&'% Eorld ank.

https://www.worldbank.org/en/about/people/alassane-sowhttps://www.worldbank.org/en/about/people/alassane-sowhttps://www.worldbank.org/en/about/people/alassane-sow


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Bo!e9er% the re#ort inds that Cambodia5s near7#oorL% those !ho li9e on less than =$.& #er day #er

#erson% may ha9e esca#ed #o9erty but remain 9ulnerable to (e9en the slightest) economic shocks.

%&espite impressive reduction in poverty! these hard won gains are fragile. 'any people who have

escaped poverty are still at high risk of falling back into poverty!$ said Nea% Sa"sen/ o6erty'nalyst o4 the +orld an% in Ca"bodia and the co7author o4 the o6erty 'ssess"ent

*e$ort %(or example! the loss of )ust !200 riel *about +0.,0- per day in income would throw an

estimated three million Cambodians back into poverty! doubling the poverty rate to 0/.$

o6erty and 8ulnerability in 200 and 2011

3ource: Eorld ank sta calculations using C33 data.

To urther reduce #o9erty and 9ulnerability% the re#ort recommends #olicies and #rograms that can

hel# the near #oor and the #oor% the ma0ority o !hom li9e in rural areas:

• "m#ro9e and u#grade the +uality o basic rural inrastructure such as roads% irrigation

schemes% electricity su##lies% and !ater and sanitation.

• 3u##ort children in rural areas to start school at a younger age and broaden access to

education among minority communities are keys to reducing #o9erty.

• A#and scholarshi#s% school eeding% targeted cash transer and similar #rograms that ha9e

been sho!n to hel# reduce secondary school dro#7out rates.

• Promote an integrated #rogram to reduce child malnutrition% !ith systematic monitoring o

child gro!th by health acilities% #romoting community7based #rograms to reduce o#en deecation%and im#ro9ing eeding habits.

• "ncrease the co9erage o the Bealth +uity >und a scheme that #ro9ides ree access to

health care or the #oorest and raise #ublic a!areness o the im#ortance o reducing child

malnutrition.


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• "m#ose tighter controls on #ri9ate #ro9iders and su##liers o medicine outside the #ublic

health system to combat countereit drugs and im#ro9e health care saety.

• Promote #rograms to enhance the #roitability o rice #roduction by #ro9iding im#ro9ed

seeds and more eecti9e rural eAtension ser9ices to hel# armers shit rom subsistence to

commercial arming.

%We might come up with different views on some directions of Cambodias socio1economic

development! but firmly believe that we all fundamentally agree that the success of Cambodias next

stage of poverty reduction will be determined by continuing high levels of inclusive growth based on

economic diversification and increased productivity!$ said De$uty ri"e inister .eat Chhon/

chie4 o4 &cono"ic and Finance Co""ittee

"3educing poverty further and helping families who have )ust escaped poverty to stay out of poverty

is possible!" said Ulrich 9achau/ +orld an% Country Director anager 4or Ca"bodia and

Southeast 'sia. %The World 4ank is a partner with Cambodia in its efforts to reduce poverty and

promote e5uitable growth and development that benefits all Cambodians.L

https://www.worldbank.org/en/about/people/ulrich-zachauhttps://www.worldbank.org/en/about/people/ulrich-zachau


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Cambodia5s n9ironment: Good Ne!s in 4reng JalleyM

Can Cambodia5s nascent en9ironmental mo9ement sa9e the #ristine 4reng Jalleyrom a Chinese damM

y icha"on :eo$hantong

No9ember &% $&', by thedi#lomat.com

3;0 3hares

1 Comments

The unolding story o local resistance in the 4reng Jalley starts !ith an all7too7amiliar

#redicament: or the sake o national de9elo#mentL and economic #rogress% the Cambodian

go9ernment has steadastly #ursued #lans !ithout #rior #ublic consultation to build a

Chinese7backed hydro#o!er dam in an area kno!n or its rich biodi9ersity and indigenouscommunities.

ut contrary to ho! one might normally eA#ect such a story to trans#ire% there is an im#ortant

t!ist in this one. >aced !ith irre9ocable ecological degradation% loss o traditional li9elihoods%

and the disru#tion o indigenous culture% local 9illagers su##orted by grassroots NG8s and

en9ironmental grou#s are reusing to back do!n rom their ight to sa9e the 4reng.

The remote 4reng Jalley is located in the ,&&%&&&7hectare Central Cardamoms Protected >orest%

one the country5s last #ristine natural orests in Koh Kong #ro9ince. The 9alley is home to an

ethnic Chong community that has resided in the area or centuries. "t also contains the habitats o

rare and endangered animal and ish s#ecies% including the 4sian 4ro!ana% 4sian le#hant and

3iamese Crocodile. The latter in #articular is classiied as Critically ndangeredL on the

"UCN5s Fed 2ist o Threatened 3#ecies% !hich estimates there to be only '&&7&& remaining in

the Cambodian !ilderness.

4ccording to Toby astoe% 2andsca#e /anager at Conser9ation "nternational% the Cambodian

go9ernment under Prime /inister Bun 3en is considering at least ele9en dams in the

Cardamoms. "nitial #ro#osals or the Cheay 4reng dam irst suraced in late $&&auna and >lora "nternational

raised serious concerns o9er the Cheay 4reng dam5s ad9erse ecological im#acts.

http://thediplomat.com/2014/11/cambodias-environment-good-news-in-areng-valley/#disqus_threadhttp://thediplomat.com/2014/11/cambodias-environment-good-news-in-areng-valley/#disqus_threadhttp://thediplomat.com/2009/05/chinas-cambodian-hegemony/http://thediplomat.com/2009/05/chinas-cambodian-hegemony/http://thediplomat.com/2009/05/chinas-cambodian-hegemony/http://thediplomat.com/2014/11/cambodias-environment-good-news-in-areng-valley/#disqus_threadhttp://thediplomat.com/2009/05/chinas-cambodian-hegemony/http://thediplomat.com/2009/05/chinas-cambodian-hegemony/


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4mid gro!ing contro9ersy% C3G decided to !ithdra! rom the #ro0ect% citing en9ironmental

im#act concerns. C3G !ould be succeeded% ho!e9er% by another o China5s largest #o!er

generation cor#orations: China Guodian. The com#any signed an memorandum o understanding

!ith the Cambodian go9ernment in No9ember $&'& to com#lete the easibility study or the

Cheay 4reng dam% alarming anti7dam acti9ists in the #rocess. 4nd yet history !ould re#eat itsel:

China Guodian soon #ulled out u#on reali6ing that the scheme !as commercially un9iable. The #ro#osed dam% to be constructed at an a##roAimate cost o =,&& million% !as ca#able o

generating only '&/E o electricity.

"t remains a !onder as to !hy 3inohydro Fesources 2td.% a holding com#any o China5s largest

dam7builder 3inohydro Grou#% !ould later decide to take on the #ro0ect in early $&',R.

The root o the #roblem%L eA#lains astoe% is that & #ercent o Cambodia lacks a stable su##ly

o electricity% yet it needs electricity to de9elo#.L This concern is relected in the country5s latest

Po!er De9elo#ment Plan ('---7$&'


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securing their share o a de9elo#ing market es#ecially or Chinese 38s% in9ol9ement tends to

be #olitically moti9ated as !ell.

Chinese hydro#o!er com#anies% in #articular% #lay a key role in ei0ing5s so7called sot7#o!er

oensi9e in the region. Bere% building dams is tantamount to building bridgesL !ith its strategic

allies.

4s one o the region5s least de9elo#ed countries% Cambodia is a re+uent reci#ient o Chinese aid

and loan #ackages !hich% as regularly noted% comes !ith no strings attached.L The Kamchay

dam in Kam#ot #ro9ince% or eAam#le% !as unded by a =


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Prior to setting u# the roadblock% uddhist monks organi6ed tree ordinations% !ra##ing an &7

meter saron cloth around the 9alley5s ancient trees. 4ccording to uddhist religious belies%

cutting do!n any o these trees !ould be tantamount to killing a monk.

orts ha9e also been taken to educate indigenous 9illagers o their legal rights. 3amreth 2a!

Grou#% a #ublic interest la! irm% has taken the initiati9e to hel# 9illagers claim collecti9eo!nershi# o their traditional land.

"n !hat can be seen as a relection o gro!ing en9ironmental consciousness in Cambodian

society% grou#s like /other Nature% Khmer Houth m#ire% Eildlie 4lliance and their su##orters

continue to #erse9ere des#ite constant setbacks. Through media cam#aigns% #etitions and hunger

strikes in ront o the Chinese mbassy in Phnom Penh% they ha9e raised #ublic a!areness on the

issue and cataly6ed local em#o!erment by encouraging community #artici#ation. 4s a!ard7

!inning ilmmaker Kalyanee /am notes% this is not an antiL 4reng dam mo9ement% but more

a mo9ement to #rotect Cambodia5s natural and s#iritual heritage.L

'n Uncertain Future

arlier in 8ctober% CNFP leader 3am Fainsy #ublicly announced that Bun 3en had conirmedL

that there is no decision yetL to build the dam and said that it may be #ost#onedSto let the

neAt generation decide.L 4lthough there has yet to be an oicial statement rom Bun 3en to

corroborate this% the act that there !as no immediate denial rom the #rime minister himsel

ollo!ing Fainsy5s comments is considered #romising. Des#ite /"/5s #re9ious announcement

that the dam !ill be com#leted by $&$&% no urther attem#ts ha9e re#ortedly been made by

authorities to re7enter the 9alley.

"t remains unclear as to !hat could ha9e #rom#ted this uneA#ected de9elo#ment. 4ccording to

3on Chhay% because the country actually has more than enough electricity%L the go9ernment is

no! reali6ing that i the dam !ere to be built no!% it !ould ha9e to #ay or electricity !hich !e

do not need.L

ut or the locals% acti9ists and conser9ationists in9ol9ed in the issue% a conirmed sus#ension or

cancellation o the Cheay 4reng dam !ould attest to their tireless cam#aigning to #rotect the

9alley rom Chinese hydro#o!er encroachment.

4nd !hile they remain cautiously o#timistic about the uture o the 4reng Jalley% their

achie9ements thus ar s#eaks to ho! a grassroots cam#aign has succeeded in gaining #olicyresonance% enough to #rom#t high7le9el #olitical debate on a national scale.

The 4reng 9alley cam#aign is the irst home7gro!n en9ironmental mo9ement in Cambodia%L

obser9es long7time orest cam#aigner /arcus Bardtke% it is built around a broad coalition o

acti9ists and has strong roots in the urban Khmer youth. "t is beyond the ty#ical NG8 acti9ity in

this country.L

http://thediplomat.com/2014/01/cambodia-an-interview-with-opposition-leader-sam-rainsy/http://thediplomat.com/2014/01/cambodia-an-interview-with-opposition-leader-sam-rainsy/


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&r 6ichamon 7eophantong is 8ecturer in nternational 3elations and &evelopment at the

9niversity of :ew ;outh Wales! and a 3esearch conomic =overnance

6rogramme! ?xford 9niversity.

R Corrected rom the original $&'$.L

Cambodia?s trade !ith oreign countries u# $* #ct in our months

nglish.ne!s.cn $&'7&*7& '':,*:,&

PBN8/ PNB% /ay & (inhua) 77 Cambodia?s trade 9olume !ith oreign countries had reached *.'$ billion U.3. dollars in

the irst our months o this year% a $* #ercent rise com#ared !ith ,. ' billion U.3. dollars o9er the same #eriod last year%

according to a re#ort rom the /inistry o Commerce?s Camcontrol De#artment on Thursday.

During the @anuary74#ril #eriod this year% the country eA#orted goods in e+ui9alent to $.' billion U.3. dollars% u# $

#ercent. 4t the meantime% it im#orted #roducts in the total 9alue o $.-- billion U.3. dollars% u# $ #ercent.

Khuon 3a9uth% chie o the Camcontrol De#artment?s statistics di9ision% said the remarkable gro!th !as thanks to globally

good economic situation and Cambodia?s eorts in di9ersiying eA#orts.

Be said main #roducts Cambodia eA#orted !ere garments and oot!ear% rubber lateA% milled rice% corn and cassa9a% !hile

items the country im#orted included garment and teAtile ra! materials% #etroleum% construction materials% automobiles and

motorcycles% consuming items% ood and sot drinks% #harmaceutical #roducts and cosmetics.

Cambodia?s ma0or trading #artners are the United 3tates% uro#ean countries% China% 3outh Korea% @a#an% Thailand% Jietnam%

and /alaysia.

2ast year% the country?s total trade 9olume !as '.


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Environment and SustainableDevelopmentCambodia has a strong dependence on its natural resources: Water, forests, soil and land. However, over the

past decade, Cambodia’s natural environment has faced different threats such as uncontrolled and illegallogging, overfishing and illegal fishing practices, biodiversit! loss, wea" natural resource policies andmanagement, etc. #his is the reason wh! $%ESC& 'hnom 'enh is wor"ing towards the use of naturalresources in a sustainable wa! and, at the same time, to conserve precious habitats.

$%ESC& 'hnom 'enh office shares its technical "nowledge and contributes to the wor" made b! differentwor"ing groups aiming at the conservation of natural resources and associated ecos!stems:

• (Siem )eap Water Wor"ing *roup+ wor"s for the protection of urban and rural areas from floods and

droughts and the conservation of water resources in the Cultural World Heritage Site of ng"or highlighting therelationship between water, biota and social s!stems.

• #echnical Wor"ing *roup on -orestr! )eform provides technical assistance to the )o!al *overnment of

Cambodia in identif!ing priorit! areas, harmoniing of activities, improving the utiliation, mobiliation of resourcesand support efforts to strengthen the forestr! sector’s capacit! to contribute to economic growth.

About Cambodia_Economic Development

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