Tuesday, July 27, 2010

Rubber News – July 2010

It’s been awhile since I last reported on this subject. So for all those people interested in this aspect of the Cambodian economy here is another take.

Despite my expectations to the opposite, prices have held steady this year, hovering around the $3,500 mark on the Malaysian Rubber Exchange. Since Cambodia still lags behind with their pricing, traders here pay around $3,100/mt for the top-grade CSK5L crepe rubber. The reason is still the industry’s reliance on Vietnamese buyers. On the one hand this is good for the processing plants as these buyers come with cash in hand. They don’t have to deal with letter of credits and banks, and all the paperwork that is involved when shipping their products. On the other hand they lose quite a bit of money because of that. If they were a little more educated in modern business techniques they could reap a higher profit. The next economic crisis may be just around the corner, that is if the Chinese cannot dampen their overheated real-estate market, then that extra income could be put in the piggy bank for a rainy day.

Rubber plantations get about $2.20 per kg of dried latex which is lower than it should be but since pricing is pretty much uniform throughout the country you can’t do much about it. Prices should be $2.90/kg. So the lack of a heterogeneous market deprives both farmers and processing plants of sorely needed income; income to build reserves for market fluctuations and re-investment for planting new trees, which, after all, take 6 – 7 years to mature, for acquiring updated machinery/ovens, new trucks, etc.

So there is still a lot to be done. In the past 4 – 5 years the industry expanded considerably in terms of added acreage but not too much in the field of technology.

Despite the relative profitability of rubber plantations and processing plants there a number of privately held plantations which are up for sale. They are 4,000 ha, 5,000 ha, or 6,000 ha respectively; tapping areas vary, as do areas with immature trees. They all come with their own processing plant, all machinery, trucks, etc, and all staff that are well-trained in their fields. I am actively involved in the divestiture of these plantations and currently in talks with one large foreign company. Nevertheless, should there be someone else interested in either one or more of these businesses, please contact me by email and I will be in touch right away. I have all necessary documents on hand and can provide any information required. But please, only serious, qualified parties should contact me.

Saturday, July 24, 2010

Car Repairs

After so many political commentaries I am turning to a rather mundane subject; but to people living here this may be of some interest.

Since I go off-road quite a bit I drive a Toyota 4-runner, one of the best off-road 4WD vehicles around (eschewing the more ostentatious full-size SUVs for simple economic reasons). Whenever there was a problem, and I must say there were very few, I took it to one of the many free repair shops that abound along the roads in Phnom Penh. I favored the one across the Rattanak hospital in Tuol Kork. One time they really didn’t know how to adjust the brakes – they went by the trial and error method - so I took it to the Toyota dealership on Russian Boulevard. In the end the slightly higher prices would make up for them being able to fix things the first time around, so I thought.

They promptly located the problem, fixed it, and I was good to go. Some time later I needed the wishbone joints replaced (part of the suspension). Unfortunately, they didn’t have the spare parts in stock. Ordering meant a wait time of 21 – 45 days by air, or up to 90 days by ground. Luckily, I didn’t need the truck for some time as I was out of country for some time. So when I go back everything was fixed nicely again.

Now just recently I had this problem with the water getting too hot and actually overheating. I had to put in about 2.5 ltrs. every day. I went to Toyota and found that the radiator lid was defective, so we replaced it. They didn’t find a leak in the radiator itself and said if the problem persists we would need to replace cylinder head gasket. There is probably a tiny leak in there making me lose all that water – sounded credible to me, although the engine oil checked out all right, but who am I to doubt a specialist’s word?

Ok, the problem didn’t go away, so I took it back for the gasket replacement. Lo and behold, they didn’t have the gasket in stock, wait-time 21-45 days. No way could I go on driving this vehicle without proper cooling for 3 – 6 weeks.

I decided to use my old shop again. They quickly found the leak in the radiator, replaced it, and $200 and 3 hours later I was all set - no problem with the gasket. Come to think of it, a simple compression check would have proved that. Lesson learned: I won’t use the Toyota shop again. They are no better than the rest, though one might expect more. First they didn’t diagnose the problem and I would have had to pay for an unnecessary repair and second, how can a qualified repair shop work without a sufficient stock of spare parts? It’s not that this is an exotic make around here, and the 3.4 ltr. engine is used in many other Toyota models too. So if you think of going there for a repair be prepared.

Reality Check

This Friday the multi-national military exercise Angkor Sentinel 2010 with the support of the U. S. came to its conclusion.

On July 21 Cambodia and the U. S. celebrated the 60th anniversary of their diplomatic relations attended by Sok An, Carol Rodley, among others.

Previously an Under Secretary of State for Political Affairs had visited Cambodia. He promptly came under fire for the military exercises. Critics, including Md. Mu Suchua, condemned the exercises claiming human rights violations by some of the participating Cambodian military units.

Whatever the case, nothing can better demonstrate the U. S.’s stance towards Cambodia. This all must have come like a slap in the face for all those critics who had turned to the U. S. seeking support from the House of Representatives and even the President in punishing Cambodia because of the government’s human rights record, including the curtailment of freedom of expression, etc. Even the possible imprisonment of an MP did not cause the U. S. to reconsider their military commitment.

The opposition must now realize that their efforts abroad are rather futile and won’t amount to much, if to anything at all, and focus on domestic issues instead. I have pointed this out in previous posts. If the opposition wants to be heard they need to play to their constituents in Cambodia, not to some obscure U. S. politicians or the overseas Khmer community; or submitting practically worthless petitions; which is not to say that petitions shouldn’t be used as an instrument in a political struggle, but it should certainly be used more selectively. Looking back on the last few years, I don’t think the SRP and their supporters will ever learn how the game of politics is played.

As a footnote, it is interesting to note that Md. Mu Sochua travels to the U. S. a lot. These trips are expensive, as I know from my own experience, traveling back and forth around 4, sometimes 5, times a year. Her salary as an MP is around $1,000. Who pays for all this – the party and their supporters with their donations? Couldn’t the money be used for a better purpose rather than enhancing her own international profile? Of course, if she pays for this out of her own pocket, it’s an entirely different story.

Thursday, June 17, 2010

Response

I want to reply to a comment Stefanie F posted on the previous entry with a full post.

You espouse a somewhat idealistic view. While I am not disputing what you wrote in general I believe one has to take a realistic view of things. I try to remain neutral and see things from a an outsider’s position, although my many detractors believe I am in the government’s pockets. Nothing could be farther from the truth.

First, the U. S.’s $60M is a trifle in view of other countries’ donations, especially compared with China, Japan, and even the EU, if you include the member countries’ contributions. After all, Cambodia just got $1.1 billion in aid and grants. So what’s the $60M? The U. S. is a country that propagates human rights but this is to be seen more as lip service than proactive involvement. Whenever it suits the U. S.’s goals, they will shape their foreign policy after expediency more than anything else. It may get better in the future, but judging from the past, one cannot be too optimistic.

The powerful hands are exactly the people formulating policy, and they obviously don’t have Cambodia on their screen. A petition signed by a paltry 2,000 mostly overseas Khmer and foreign supporters of the opposition won’t change official policy one bit.

Change must come from within. Pressure from outside, especially the U. S., will only entrench foreign governments in their position and make them look elsewhere for aid and support. This is exactly what Cambodia has done. They turned to China, which is only too willing to jump in in order to counter Vietnam’s influence in the region, and thumb their nose at the U. S. at the same time.

In that sense, all the SRP’s efforts to muster support from the U. S. are futile, if not outright counterproductive. If you want to beat a system you must do this at its own game. Suing the Prime Minister is certainly the wrong tactic. Pulling pubicity stunts and bringing the Vietnam border issue to the foreground is another failed tactic. What the opposition, foremost its leaders Sam Rainsy and Mu Sochua, need to do is appeal to the people at large. Since they can’t do this in the assembly, where they will be outvoted at every turn, they must look for other ways to convince voters that they are the ones who can bring about change that will benefit the masses and not only a few. By being abroad, and the voters in Cambodia see this very clearly, they are not helping the poor. They are seen as rich people who can afford to travel so widely just as the CPP’s rich people. They see no difference between them at all. After all, what are their sources of income? Believe it or not, this is what people on the street in Cambodia are asking.

Whether Ms. Sochua is a heroine or not is subject to personal interpretation. I believe the word hero/heroine is just used too lightly, especially in the U. S. I can’t see how she has made an impact in Cambodia since she came back as a Funcinpec member and Minister, and later as an SRP MP. Realistically, fighting for human rights and equality, freedom of expression, upholding the constitution, though noble causes they are, ranks lower than filling one’s stomach. Exactly this is where the opposition and their two most prominent leaders have failed dismally. Like in any other country the broad masses are apolitical. They care about their livelihood, their family, where the next meal comes from. You can’t make a peaceful world on an empty stomach. What all supporters of Mu Sochua and Sam Rainsy forget is the Khmer mentality. During their history Khmer people have learned to be stoic and endure until things get better – and better they will get. I can’t remember one instance in which the opposition’s leaders have helped the poor in a substantive way. Maintaining a high public profile abroad certainly isn’t doing the job.

Wednesday, June 16, 2010

Petition to the U. S. President

The PPP reports that Md. Mu Sochua, SRP MP, is traveling to the U. S. carrying with her a petition to the President Obama.

The petition asks the President to condemn the Cambodian government and Supreme Court for their lack of accountability, fairness in the judicial process, etc. We by now know the list of grievances human rights activists and the opposition have. A ‘whopping’ 2,000 people, mostly online, will sign that petition.

The one baffling thing about Mu Sochua, who is also a U. S. citizen, is that she spends a lot of time away from Cambodia. She is now traveling there for a documentary film on human trafficking. No doubt, this is a noble cause, and Md. Mu Sochua is well known as a fighter for women and children’s rights. Her proponents never tire of pointing out that she was once a Nobel Peace Prize nominee. Normally, that information is withheld from the public, but in this case her supporters believe it surely enhances her stature. I am sure it is an honor to be put forward for the nomination, but let’s not forget that initial list can comprise 500 or more nominees.

I am just not sure what the initiators of that petition are trying to accomplish with it. First, Md. Sochua won’t be able to hand it over personally. It might just as well be sent by mail. Second, the petition asks a head of state to condemn another country’s institutions. It doesn’t matter whether or not this is a dictatorship, democracy, or anything in between, foreign governments usually do not interfere in another nation’s domestic affairs, legal or otherwise. Even the extradition of the Uyghurs to China provoked only luke-warm criticism from an Under Secretary of State.

The main question, however, is why Md. Mu Sochua and Sam Rainsy always try to raise the international community to aid in their cause. A cause they obviously are not able to propagate with their own means. Observers have stated that the international community hardly listens any more to the same grievances over and over again. They have simply tired of that litany. Equally as obviously, they cannot find any resonance for their cause in Cambodia itself. But it is there that they need to find broader support in order to further their agenda. By being abroad so much they remove themselves more and more from the people they are supposed to work for.

Under normal circumstances Md. Mu Sochua seems to be a very sensible person - with the exception of her ill-fated lawsuit against Prime Minister Hun Sen. Why don’t they organize a grass roots organization instead of spending all that money on expensive travels abroad? Of course, they use those travels as fund-raisers at the same time, which is all good, but why not put the money to better use in Cambodia.
If she wants to be an international celebrity, she should maybe return to the U. S. There is a greater chance to get into the limelight there.

This petition as well as many of the SRP’s endeavors seem pointless and wasted efforts.

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