Friday, February 15, 2008

Who to Vote for in the Next Election


For some this is not even worth a second thought. They will vote for the party they believe will do the best for their country, whether or not they know a lot about their programs or how their party will achieve what they promise.

From what I read online and learn from overseas Khmer in conversations most of them would vote for the Sam Rainsy Party as the party and its chairman stand for changing what they perceive to be the most important issues and problems Cambodia is facing today. But whether overseas Khmer like it or not, they don’t have much weight in the grand scheme of things in Cambodia.

Although Sam Rainsy does not use the same message, he can probably be likened to Barack Obama in the U.S. in the sense that they both want change and convey hope. They both want to alter the ways and methods of the entrenched politicians who think more of their own pocketbooks than about the people.

But what about the people in Cambodia, and they are the ones that decide the elections? We know that the majority voted for the CPP in the last election. The opponents of the CPP allege voter intimidation and vote buying as the main reason they gained a majority, though not enough to form a government at that time. The constitution was changed and an absolute majority is now sufficient.

Now it is widely held that the CPP does not even have to resort to such rigging methods as their party machinery throughout the country is so effective and their hold over the smaller towns and the villages is so firm that they will most likely win a vast majority, even greater than the last time. We know that the CPP’s strength lies in the countryside with the rural population that is generally less educated, less informed, and more gullible than the city-dwellers.

The SRP’s main support comes from the more educated and better-informed city population and young people, mostly in Phnom Penh and, to a lesser degree in Sihanoukville, even though the SRP lost ground in the last commune elections in Phnom Penh too.

If the springtime commune elections, with 1592 communes going to the CPP, 27 to the SRP and 2 for Funcinpec, are an indication at all for the general elections in July, the CPP will even win a two-thirds majority, legally giving them a free hand to run the country as they choose. They could even abolish the monarchy, for instance. But even the CPP itself does not see this happening.

Despite rampant corruption, the muzzling of critical media, alleged human rights violations, tacitly tolerating illegal land grabbing, evicting the down-trodden from land they occupied and owned by possession for many years, there can be no doubt that the past years have changed the landscape in Cambodia, both economically and socially. Although unemployment is still very high and the widespread rural poverty is unabated, the signs of some prosperity are seen everywhere, from the many cars, especially SUVs, in the streets of Phnom Penh, to the packed restaurants at night and the new modern high-rise buildings going up. Some modest prosperity has also spread to the rural towns, though to a lesser extent.

Needless to say, the CPP claims all the credit for the progress Cambodia has made over the past 15 years; well, they have been in power all these years, haven’t they? As mentioned in a previous article, let’s leave out Funcinpec for its virtual insignificance in today’s political Cambodia.

The SRP has been sort of a gadfly in Cambodian politics, voicing its opposition in strong and aggressive words and questioning many of the government’s policies. But this has had very little effect on the course of events in Cambodia. The SRP also says that they usually fare better in general elections than in commune elections, but given the current economic growth, it might be a safe assumption that the CPP will ride this wave very successfully.

Both chairmen, and as such candidates for prime minister, are not without detractors. Hun Sen is seen as a quasi-dictator who rules his party and the country with an iron hand, notwithstanding the two factions within the CPP, intolerant of any opposition to his views and actions, and who considers himself the best leader for Cambodia. At least he can point to the longest reign as prime minister in all of SE Asia. But reports and studies show that under his rule the freedom of the press is restricted, civil rights are disregarded, corruption is endemic, and human rights are violated.

Sam Rainsy, a highly educated man, a banker, who did well for himself in his years in France, is seen as rather autocratic too, accused of being dictatorial with his own party, intolerant of different views from his own, not showing real leadership qualities. He does not have any experience in government apart from his brief stint as finance minister in 1993/4. His undifferentiated stance on ethnic Vietnamese, illegal Vietnamese immigration and the past history between Cambodia and Vietnam makes him appear as a panderer to older nationalistic segments of the population, and, not the least, overseas Khmer who bankroll a substantial part of his party machine. However, his lack of concrete proposals for putting Cambodia on the road to true freedom and prosperity is glaring. He is by definition a populist in the truest sense of the word.


Both seem to enjoy the limelight, as all politicians must, and give numerous speeches. Sam Rainsy is by virtue of his education the more articulate one, whilst Hun Sen comes across as rather crude in his public remarks.

Sam Rainsy shows up at every demonstration, strike, or eviction to denounce the government’s policies. Hun Sen uses many occasions such as school inaugurations, graduation ceremonies, to hold forth extemporaneously on whatever is on his mind at the time, from undisciplined driving, to too much drinking, to unfaithfulness of government officials, etc.

Sometimes, elections are not about what people stand for but who they are – what’s called the likeability factor. It seems that Hun Sen, despite his weaknesses and shortcomings, wins in this department with the people in Cambodia.

According to the Institute for Civic Education the CPP might win 61, the SRP 41, with the other parties sharing the remaining 20.

Using this projection, the assumption that the CPP will produce a weaker result, and a recent statement by the chairman of Funcinpec that they will surely win 6 seats, the SRP could theoretically form a coalition government with the other parties, foremost the Ranariddh Party and the Human Rights Party, albeit unlikely.

Again, as pointed out in another article both party programs have noble and ambitious, principally rather similar goals. We know what a CPP government looks like and what they promise and what they actually do or don’t deliver on, but what would happen if the SRP came to power in a coalition government?

In short, the SRP’s avowed goals are to:

1-Eliminate corruption

2-Reduce poverty

3-Bring back true democracy

4-Stop illegal immigration

5-Restore national sovereignty

6-Preserve natural resources and to protect the environment.


Corruption

Cambodia is one of the poorest countries in the world. Its people generally hardly make enough for a living so the workers in the public sector try to complement their income with all kinds of surcharges – they are simply not paid enough. If government officials and administrators make only $80 a month on average (excluding ministers, state secretaries, generals, etc.), which is in no way sufficient to house, feed, and clothe a family of 4, it is hardly surprising to see them charge extra for their required services, be it a passport, drivers license, or family book. If you want to have it done fast, you pay more. In the private sector this is called profit, in the public sector it is graft.

On the other hand, private enterprises pay bribes to government officials to secure profitable concessions and contracts. Are these the ones siphoning off what the U. S. Ambassador Mussomeli once publicly said is about $320 million lost annually due to corruption?

How to stem or eliminate this? The simple answer would be to pay the government workers more. But how much? And where would the money come from? And who are the ones raking in the big bucks in corrupt money, and what to do with them?

The expenditures for government workers’ wages for 2008 are projected to be around $175 million according to the draft national budget for 2008 or roughly 3.2% of the GDP.

The money for pay-hikes would have to come from other budget items. But according to the IMF, projected budget spending for 2008 is considered prudent, in other words, there is hardly any room for shifting monies from one department to the other, not to mention that 50% of the budget is still financed by foreign aid.

As to who is getting the big bucks through corruption in the government? Well, we can only surmise. Hard facts are hard to come by. But one thing is for sure; you take away their source of extra income they won’t let go easily.

So just to say ‘eliminate corruption’ doesn’t quite cut it. The SRP needs to elaborate.

Reduction of Poverty

‘We need to reduce poverty!’ It sure has a nice to ring to it and it will make poor people’s eyes well up with hope and expectation.

But how exactly do you stimulate an economy in such a way that it creates jobs by the hundreds of thousands in 5 to 10 years - an economy that had to develop back from a stone age level in 1979 to some semblance of a structured free-market economy in the last 15 years?

What areas do you target? Where do you focus your efforts? What new industries will you try to attract?

These are tough-to-answer questions, but they must be answered nonetheless.

Again, those catchall phrases in the party program just won’t do it.

Bringing Back True Democracy

Well, this is a misnomer from the start. Cambodia had never been a true democracy until the first free elections in 1993, so it can’t be brought back. Period. It should read ‘Implementing Democratic Reforms’.

Today Cambodia is for all intents and purposes a democracy with a parliament, a government, and a judiciary, although the system is still severely flawed. The governing party exerts unconstitutional control over the judiciary. There is no rule of law.

Vote rigging was rampant in the last elections, but even without that the CCP would have won a majority to form a coalition government, which it did. To believe that the SRP would have won enough seats to join with Funcinpec to form a government 2003 is belied by the results.

The country is ruled by an oligarchy who won’t give up their prerogatives easily. They will be an almost insurmountable opponent.

Stopping Illegal Immigration

Clearly, this is aimed at the Vietnamese. Just as the U. S. government cannot stop its illegal immigration, despite all those much-heralded cures such as building a wall, no Cambodian government will be able to stop Vietnamese people from coming to Cambodia as long as Vietnam has a Communist government and life is easier in Cambodia even for poor people. Those immigrants are economic refugees.

So will a SRP government be able to stand up to its Eastern neighbor in implementing visa regulations, better border controls, and other travel restrictions, which will also clearly affect its cross-border trade, which is substantial?

This is the most populist theme of Sam Rainsy, and he does not embrace real solutions taking into account all aspects, such as economic, social, and political repercussions.

Restoring National Sovereignty

Together with the ‘Vietnamese issue’, this is one of those populist themes Sam Rainsy incessantly harps on. Cambodia is a sovereign state, believe it or not. It undoubtedly has clearly defined borders. Yes, some of them, both on the Thai and on the Vietnamese side, are in dispute. This needs to be resolved in negotiations with both countries. But Cambodia signed a border treaty with Vietnam that is valid and in force. Any aberrations must again be resolved by negotiations.

Calling for the re-convening of the Paris Peace Conference is another point, which is meant for popular consumption rather than for substance. The Paris Peace Conference convened to prepare the way and arrange for the first free elections, and peace for Cambodia and was disbanded thereafter. The signatory countries to the conference, Vietnam among them, agreed on the inviolability of Cambodia’s territory. As a result of those elections Cambodia became a true sovereign state. No outside country has any power to alter that, not even another multi-state conference, unless Cambodia agrees to it. Cambodia is a member of ASEAN. The ASEAN charter includes articles recognizing the territorial integrity of each member country.

Indicating that Vietnam is still the secret ruler of Cambodia is somewhat of a long reach, and Sam Rainsy most likely does not believe that himself. This is cheap rhetoric designed to foster and foment xenophobia in Cambodia and it is misanthropic and counterproductive.

If Kampuchea Krom is considered part of that restoration, they must recognize that it is Vietnamese and will remain Vietnamese, as any international jurist will confirm. It is unrealistic to pursue the dream of a return of that territory to Cambodia or for it to become an autonomous state.

Preservation of Natural Resources and Environment

This is most likely the only subject where a different government can have an immediate impact if it has adequate means at its disposal to enforce all the regulations and laws that are already on the books to stop illegal logging, fight pollution, and start rebuilding the environment.

But will the robber barons of the logging industry timidly withdraw from their highly profitable ventures or will they fight back?



Additionally, there are other vital factors to be considered if a change of government should occur.

Since the current government and the administration are so corrupt what will the new cabinet do with all the civil servants that are on the take? Replace them?

If you sweep with an iron broom those employees will simply not show up for work, as they did under Communist rule. They will report in the morning and disappear after an hour or so to jobs outside. If they are fired the government would come to a complete standstill, chaos would ensue. These people, most of them loyal to the CPP, could not be replaced from one day to another.

The fat cats benefiting from the current system will certainly not go without fighting back. Those people hold considerable power in their hands. All of a sudden the new government might see itself confronted by a united front – don’t count on the two factions in the CPP.

Certainly, all those generals who usurped their position for their own enrichment won’t stand by idly waiting for the dismantling of their power and wealth.

And, would Hun Sen go quietly? If the elections in 1993 are an indication, he won’t, but he might have matured in the meantime and really meant it when he recently said that he will go into opposition if the SRP won a majority.

An SRP-led government would be confronted with innumerable problems and formidable enemies. It is doubtful it could tackle both at the same time.

No matter how you look at it, the picture would not be rosy if the SRP won. Quite the opposite might happen, perhaps even civil unrest or civil strife as in Kenya. That country is worth another look. The characteristics are very similar to Cambodia, although tribal lines are very dominant in that power struggle. But they finally reached an agreement to form a grand coalition in order resolve the problems facing the country. Could that be a formula for Cambodia to follow? Only joined forces can overcome the immense problems a developing country such as Cambodia faces.

However, what is most disturbing in the current situation of the opposition party is that it appears to revolve around one person, the chairman, only. The one or two other personalities with some profile mostly remain in the shadows. Sam Rainsy seems to micromanage all levels of the party machinery. He has not formed a recognizable shadow cabinet. Will he have, or be able to recruit, capable ministers, or will he just have the same sort of uneducated party functionaries in office as the current government? Perhaps his cabinet will be as inept as the present one? Proof to the contrary has not been forthcoming.

He makes all public announcements and is the SRP’s only visible persona. Those announcements and speeches are missing one very significant feature: he does not offer any concrete solutions. He pounces on the incompetence and the mistakes of the current government. If the ADB, IMF, and the World Bank see political stability in Cambodia, although coupled with some form of repression, Sam Rainsy is not very credible by declaring the opposite.

At the present time vast amounts of money pour into Cambodia from South Korea and China. Cambodia has a very special relationship with both countries. The to-be-inaugurated South Korean president was a one-time economic adviser to Hun Sen. These two countries wouldn’t invest so much money in Cambodia if they did not consider it politically stable. Will these investors have the same confidence in an unproven government?

Most of the South Korean businesspeople come to Cambodia because doing business here is much easier than in China, where they used to go until recently. But regulations and red tape have become so cumbersome they now choose Cambodia. Will that change with a Sam Rainsy government?

The recent defections from his party are some indication that at least a few of the higher-ups in the SRP see their leader as somewhat ineffectual. The party seems to just muddle along without a clear strategy. It doesn’t look like they are really prepared and ready to take over the government.

It might just come to pass that the general population will see it the same way. Undoubtedly Sam Rainsy’s intentions are good, but it takes more then condemnations and populist rhetoric to turn elections and a country around. An anti-government stance alone is not enough.

It won’t come as a surprise then if the CPP wins the next elections on its merits alone (without having to resort to vote rigging). Should the SRP, however, use the next few months to formulate clear-cut policies, concepts, workable alternatives and solutions, present credible and capable personalities for a competent cabinet, and convey all this to the public successfully the outcome might look different.

So the answer to the question of who to vote for will, of course be left to the individual people. But for them to see real alternatives, the political scenery needs to change first.


Wednesday, February 13, 2008

How to Stimulate Tourism in Cambodia


Prime Minister Hun Sen once said that Cambodia ought to develop other industries in order to ease its dependence on the volatile garment and tourist industries. Both are very susceptible to fluctuations caused by economic problems in Cambodia’s export partners or main tourist markets. The recent downturn of 46% of garment exports in the last quarter of 2007 proved him very much on target with his assessment. It would now be time to let actions follow words, to implement a policy for creating a secure base for at least one of those two industries.

But since these industries form the basis for Cambodia’s badly needed foreign exchange, there is not a whole lot the government can do to develop other sectors of the economy in the short run to balance these foreign exchange earners for Cambodia. They can only try to deflect the adverse impacts of foreign economic downturns or even recessions. Again, with the garment sector it will prove difficult to counter a slackening foreign demand.

The picture for the tourist sector, however, is very much different, as it has been shown that especially European tourists, even in the face of economic hardships in their countries, do not like to forgo their annual vacation. Southeast Asia has long been a very attractive market for Europeans, except for the periods of political unrest or instabilities, or natural catastrophes, e.g. the tsunami in Thailand and Indonesia. A look at recent events in Kenya, which is heavily dependent on tourism, is a case in point what political strife can do to this industry.

So first and foremost, political stability is the number one priority in attracting tourists from all over the world. The 1997 power struggle and the 2003 anti-Thai riots were recent events in Cambodia that undid all previous efforts in a budding growth industry. Tourists react instantaneously and choose other destinations nearby. And, tourists are not so much influenced by the form of government or ideologies as both Cuba and Vietnam prove as by a good price/product ratio and an environment with little crime. Cambodia has two formidable rivals in SE Asia when it comes to tourism, one is Thailand, and the other is Vietnam. Thailand can hardly be outdone by Cambodia, and Vietnam might prove difficult since is has many more excellent beaches along its coastline than Cambodia.

Besides its famous Angkor Wat, Cambodia currently seems to emphasize Casino resorts to lure Thai and Vietnamese high-rollers to Cambodia, apparently forgetting that these casinos don’t contribute to the economy overall. The government collected about $18.7 million in 2007 from casinos in taxes, and an undisclosed amount on the land leases. It can’t be too much since in 2007 the budget indicated only$8.5 million revenue for all government land leases. The casinos' profits probably exceeded that by a multiple of that amount. No money lost at the gambling table is ploughed back into the economy.

Normal package tourists, however, not only spend money on room and board but on excursions, restaurants, souvenirs, and last but not least on drinks. On average Western package tourists spend about $2000 (€1500) per capita in their host country including the cost of hotel accommodations. So-called backpackers are an entirely different story though.

Another aspect is length of stay. The minister of tourism stated in January that the average stay per tourist is between 3 and 4 days. They spend about $770 each. This is a far cry from what tourists spend in Thailand and how long they stay.

On researching the possibilities for an investment in the Sihanoukville area this writer’s agent also spoke with the director of the regional airport. This airport can at this time already accommodate jet airplanes up to Boeings 757/767 or the Airbus 330. The airport announced plans to lengthen the runway for 747s and larger airplanes, thinking a bigger airport would automatically attract direct international flights. When negotiating with international airlines, however, the airport management quickly found out that the future for those direct international flights is somewhat far off in view of the lack of a sufficient tourist infrastructure in the area. We learned that the announcement may have been a bit premature and the issue will be revisited in 2009, when new planned projects have at least been started.

Though there is an abundance of hotels they lack international standard with the exception of the three 5-star resort hotels operating there. The rest caters to the economy and local tourists. Besides room and board they don’t have much to offer. Western package tourist expect more, and this is what we are talking about – package tourists, because they are the ones spending the big bucks and leaving them in the country.

Airlines need to operate at an approximately 65% load factor in order to be profitable. Looking at 3 weekly flights of 250 seats each at an average load factor of 65% this will result in 25,350 arrivals per year. In introducing new routes airlines must also look at the airport facilities. Sihanoukville does not offer any technical assistance, ground operations, etc. at this time. Airlines need to have a support system in place to handle their flights. To put this on the ground they will need those 3 flights a week to make it affordable. Besides tourists, Sihanoukville airport will probably see only few other arrivals, such as businesspeople.

This translates into roughly 1,000 hotel rooms required to accommodate those arrivals. Currently there are about 252 rooms or suites in the 5-star category with full amenities, and about 200 rooms in the medium category without much in the way of amenities.

There is talk about another project for 1000 rooms by the Sokha group and just recently a Greek casino operator announced a resort with an undisclosed number of rooms near Ream Beach, but judging from the investment amount of $10 million it is a safe assumption that it will not have more than 50 to 80 rooms. In other words, you are still lacking about 500 rooms for just those 3 flights. But it is as yet unclear when these projects will begin, let alone be completed.

As outlined in another article previously a destination needs have the full complement of hotel categories to be competitive internationally, particularly with Thailand in Cambodia’s case. Ideally, this would roughly break down into 20% 1-2 star, 50 % 3-5 star, and 30% 4 –5 star accommodations. Amenities required include all kinds of beach activity, evening entertainment, and facilities for children.

Cambodia is now a destination for sightseeing tourists, backpackers, and, unfortunately, sex tourists. This needs to change. The goal must be to attract families as package tourists to complement the sightseeing tourists to Angkor Wat. After all, even those 25,000 projected package tourists, once the flights have been started, would spend about an additional $50 million in Cambodia. In comparison to the $1.4 billion spent by the 2 million tourists that came to Cambodia in 2007 this is a rather modest amount. But it would only be the beginning. Eventually, the goal should be to have an equal share of package and sightseeing tourists. The outlook by the World Bank projects the number of tourists at 3 million by the year 2011, so the majority of them should be combination sightseeing/beach resort tourists.

Again in comparison: in 2007 Thailand posted $16.13 billion in revenues from tourism. Each tourist spent $1,135, not including miscellaneous expenses, such as souvenirs, outside restaurants, etc. Thailand, however, is still recovering from the effects of numerous bombings in the South, and the military take-over of the government. One can clearly see what the situation could be like for Cambodia.

Currently there are approximately 100,000 visitors to the beaches in Sihanoukville, although one can sometimes read estimates of up to 200,000. If the majority of the foreign tourists could be converted into package tourists the area would need a lot more upgraded and new hotel rooms than the 1,000, and revenue would rise accordingly. Package tourists would be an addition rather than a replacement for existing tourist arrivals.

But to change this, hotels in the right category must be available. Giving present hotel operators incentives to upgrade their hotels to meet international standards can do this. Some of them have ideal locations in Sihanoukville, especially on Ochheuteal Beach. It would be for the government to encourage the private sector to either build more resort hotels, or convert the existing ones. Those incentives could be a lower tax rate for a number of years, no tax on foodstuffs, combined or collective advertising with the tourism ministry abroad.

There is large number of guesthouses in the $10 to $20 a night category, many of them operated by foreigners that cater to backpackers. Some of them are located right on the beach. Prime locations ought to be reserved for beachfront medium-priced, upscale and high-end properties in order to generate the better revenue for the country. That is not to say they should be evicted, but since they usually rent the premises, the owners of the properties must be encouraged to upgrade as well. As far as tourism goes Cambodia must lose its image as a ‘cheap’ destination, rather it should elevate its image to an ‘affordable’ destination.

Another problem area is the sex tourist business. Since this part of the business cannot never be completely eliminated the local government must nonetheless clean up the city and assign special sections of town, perhaps out of town, to those businesses – the ‘red light district’. Establishments in which prostitution is openly tolerated and conducted only deter family tourists.

In order to avoid inflicting material damage on present owners and small businesspeople those conversion should be done in phases, or by normal attrition, something like the gentrification in inner cities in the developed world.

The emphasis on casinos must be abandoned. Casinos attract a certain clientele, which normally is not in line with the development of regular recreational tourism. The city of Las Vegas started as a pure gambling Mecca before it changed its marketing thrust to encompass families as guests. Why should casinos occupy valuable beachfront land? Casinos can be located at any place in or outside town. People who want to gamble and take in a show will go where the action is, no matter where it is located.

It is vital for the development of a viable tourism industry to attract not only big hotel corporations with luxury properties but also individual and local hotel owners that can give the property a special touch and local ambience. The Sheratons and the Holiday Inns are interchangeable, the medium-sized local resort, in contrast, should preserve its Cambodian character. This segment mostly makes up the 40 – 50 % of the 3-4 star categories. And, being the entrepreneurs whose bottom-line is directly determined by their own management, they will put their maximum effort into marketing and running their property. It is a well-know axiom that private enterprise is always a lot better at promoting businesses than a government ever can.

One big obstacle for the development of the important segment of mid-market properties is the outrageous land prices in Sihanoukville. Although beachfront properties are irreplaceable, and can, therefore, command premium prices, second or third line properties are still priced at around $200 a m2 for smaller lots. Cambodia must get away from its concept of ‘bigger is better’. Yes, the individual land owner, and in essence as such is a speculator, loves the multinationals. They fork over millions of dollars into his pocket in one single drop.

But there are many smaller companies in Europe and North America that would be interested in developing family-style resorts. For them those exorbitant land prices are prohibitive. After all, if the cost of land is $2.0 million, and the cost of the resort itself is $2.0 million, that split of 50/50 in cost makes it unprofitable. In comparison for luxury resorts in the U. S. and the Caribbean land prices make up only 13 – 15 % of the total cost of the resort.

Some regulatory work might be advisable in this respect, in fact is necessary. It might even make good and sensible policy for the government to buy back or expropriate valuable beach front property in the public interest, or offer incentives, such as subsidized or fixed, reasonable prices for land purchases targeted for tourism development, tax exemption for imported furniture, fixtures, and equipment (FFE), tax rebates for vehicles, e. g. minivans, used in the business.

There is plenty of ocean-side land available but it seems to be in the hands of a few select people. These people usually own a large chunk of land they want to sell in one piece. But smaller properties do not need 30 ha or so. They can do with 1, 2, or 3 ha. In fact, many of the smaller Thai resorts occupy less 1 ha (e. g. on Koh Samui). Though Cambodia enjoys a free-market economy where the government should not interfere with the mechanisms of the marketplace, it should nonetheless implement at least some regulations through which the impact of development would benefit the Cambodian people as a whole and not just a few. After all, wouldn’t quite a few jobs be better than having rich people getting richer through originally government-owned land.

The Cambodian embassies abroad should network with local chambers of commerce to publicize Cambodia’s need for foreign tourism investments, targeting small, medium, as well as big business.

Of course, last but not least, access roads need to be built and electrification is just as vital as diesel-powered generators are not really environment friendly and too costly to operate. In general, environmental concerns must be addressed. Solar or wind power should be encouraged with tax breaks or tax moratoria as well as import duty exemptions.

Most of the countryside is still not electrified. This leaves only Sihanoukville as a site for further immediate development, but there is a natural limit imposed by the availability of suitable land.

Once the foundations for a greater number of package tourists have been laid the government needs to create a tourist board that markets Cambodia as a destination in overseas countries. There are many trade shows, from Berlin to Las Vegas, where this can be done very effectively. Representative offices in the main markets to support tour operators and travel agents are another effective tool for this. The Internet offers proven avenues of promoting Cambodia.

Though this catalogue certainly is not all-inclusive with every measure Cambodia’s government should or is able to take, it could be a rough blueprint. It was written by a tourism expert with 20 years of experience in the industry.

Monday, February 11, 2008

Just another example of the workings of some members of the upper Cambodian political hierarchy?

This draft report was submitted by J. Rupert, a free-lance reporter in SE Asia.

A Russian-American businessman from New York, who
came to the U. S. 19 years ago and has since become a naturalized U. S. citizen, came to Cambodia in June of 2006 the first time. He met a Cambodian government official who happened to speak Russian, giving them some common ground. A friend who was also visiting in Cambodia introduced him to the official at that time.

The American businessman, 50, runs a consulting and investment business in the U.S. looking for opportunities in under-developed countries. He has wide-ranging contacts in the private equity capital world in the U. S., including Blackstone and the Texas Pacific Group, both big players in the business. He holds a degree in economics from the University in Kiev and currently pursues projects in Bosnia.

The Cambodian official indicated that there were great opportunities for foreign investors in Cambodia as the government was actively seeking foreign investment to develop and exploit the resources of that country. The endeavors of the government had in the past been rather futile as they had always hooked up with companies from China, Korea, Taiwan and other threshold countries, that were long on promises but short on actual accomplishments. They were now happy to be dealing with a U. S. based company, which automatically elevated their efforts into the realm of credibility and, they believed, feasibility.

The American businessman invited the Cambodian official to New York at the end of 2006 to familiarize him with his business.

As a result of that alliance they started a Cambodian-U. S. company in Phnom Penh to pursue investment objectives. The company was registered in January 2007. The shares were distributed at 51% for the Cambodian official and 49% for the U.S. businessman. The Khmer gentleman was the president and CEO, and the American the director and chairman. The initial paid-in capital according to the by-laws was to be $300,000, of which the American paid in $155,000 with the Cambodian’s share deferred until another cash-earning transaction had been finalized, which would then allow him to pay in his share.

Eventually, the company was awarded vast concessions. It did not have to pay any up-front fees but was solely required to donate $15,000 to the fight against poverty in Cambodia. Needless to say that the Cambodian official played a vital role in helping these negotiations along in favor of the company, being the majority share-holder in it. If these investments came to fruition the windfall profits for the company would be phenomenal.

An agreement between the company and the Cambodian government was signed in Phnom Penh. The Cambodian official also managed to get an audience with King Sihamoni for both himself and the American businessman and other representatives in this very promising enterprise.

In March of 2007 the Cambodian official indicated a good short-term business opportunity to the American. The Cambodian official had found out one of the smaller banks operating in Cambodia was for sale. He asked the American businessman to help find buyers. Through his widespread connections the American, with the help of a friend, was able to get a group of businessman from one of the former Soviet republics interested in this. Another friend of his, a Canadian attorney, drew up the necessary paperwork. The bank was eventually sold to a company from that former Soviet republic for $25 million. The $25 million deal was initially supposed to be signed in New York and paid into an account at a large U. S. bank. The money was going to be wired from Latvia. The U. S. bank refused to accept the funds on the grounds that their origin was not identifiable; in other words, they had their doubts whether or not those funds came from legitimate sources. Eventually, the funds were handled through Singapore.

The company, as the agent, received a commission of $1.2 million. On completion of the deal at or around the end of June 2007 the bank handed over a check made out to the company in that amount. This check was deposited into the company’s account at that bank at the end of June.

On the Monday following the deposit the American businessman went to the bank only to find out that almost the complete funds had been withdrawn, $550,000 had been transferred into the Cambodian official’s personal account. He had also withdrawn $200,000 of that money in cash. The bank posted only a $1.0 million debit as a check deposit.

When he confronted the Cambodian official with this fact he was told that this is the way things are done in Cambodia and that the money was rightfully his as he had steered the American businessman to the sale in the first place. The Cambodian official agreed to pay back the American’s original stake in the company, $155,000, which had been declared as a loan, plus his commission of $50,000, altogether totaling about $215,000, to make a clean slate. When the American disagreed, asking for half the commission, the Cambodian official said he better go along with this deal if he valued his life. The American was so shocked by this direct threat on his life that he agreed to the deal. He received his money the same afternoon. He feared for his safety and checked out of his hotel and into another undisclosed hotel the same day. He hurriedly left the country the following day.

The American businessman, as a 49% owner of the Cambodian company, was rightfully entitled to 49% of the profits earned in that company. In Western companies this is done by distributing the net profits earned as dividends to the shareholders based on their holdings in the company. As the Cambodian official was the CEO he certainly had the right to manage the day-to-day business of the company including disbursing funds for business purposes but the arbitrary transfer of almost all business funds available in the account at that time into his personal account without the consent of the board was against the by-laws of the company. In countries that operate under the rule of law this would clearly constitute embezzlement.

His U. S. attorneys whom the American businessman had contacted back in New York obviously found it not feasible or practicable to pursue this case in a Cambodian court. He has not filed any charges. He also received an email from a friend in Cambodia saying that he had heard the American would be arrested the minute he set foot on Cambodian soil again. On what charges? Seeing another related story further down in this article it is easy to see what charges could be leveled against the American businessman, whether true or not.

When traveling to Cambodia in June of 2007 the American’s intention was to conduct further negotiations with the Cambodian government about the concessions and to inform them what he had accomplished in the meantime in terms of lining up more funding.

On returning to New York and on account of these events he decided to advise his investors that Cambodia is not ready for a major development along established business guidelines. He stated that some politician’s greed interfered with the regular and normal conduct of business in Cambodia and that a large portion of any investment might be sidelined into personal pockets.

During approximately the same period of time – from June 2006 onwards - there was another Russian businessman in Cambodia who negotiated with the government for some major tourist development. This was to be a $300 million project. The developer was to invest $5.0 million of his own money in the project and had paid a sizable concession fee to the Cambodian government. He had committed to raising the full investment funds from other Russian and Ukrainian businessmen who had made a lot of money in the new Russian economy and were looking for profitable investments. He submitted a business plan with detailed renderings of the development. As before, the Cambodian official also acted as a go-between to facilitate negotiations.

The Russo-American and the Russian had met through joint acquaintances in Cambodia and found some common ground in their business ventures and thought about raising the investment funds for the tourist development together. They were in the process of fine-tuning the budget and business plan for a presentation to potential future investors.

Surprisingly, the Cambodian official repeatedly mentioned to the American businessman that the tourist development was going to be available for bidding again shortly, which left the American businessman somewhat bewildered as he had entered into discussions with the Russian – the owner of the concession - about the funding for that project. He really didn’t know what to think of this. On account of the understanding with the Russian the company had even included the development on their website.

As is the custom with many foreign investors coming to Cambodia they are treated to some lavish Cambodian hospitality including visits to nightclubs with young hostesses at the investor’s disposal. The Russian’s sexual inclinations obviously ran to young girls under the age of 14. Here too, the Cambodian official lent a helping hand by arranging a steady supply of those girls for the Russian. The venue for such nights on the town usually was the well-known Club 99 in Phnom Penh. Other people present on those outings, among them the American businessman at one time; say that the Cambodian official sometimes did partake in those sexual escapades. The American businessman states that he declined the services of the hostesses.

The Russian was eventually arrested in October 2007 on child sex charges. He is sitting in prison awaiting trial. The disturbing question here is why the Russian was not arrested until October 2007 when the alleged incidents had occurred in the spring of that year. The parents of the girls had not filed complaints with the police in Sihanoukville until October.

It is widely believed that a sizable payment to certain officials would have made these charges go away. A man of means such as the Russian could also have compensated the girls and their parents generously for them to either not file the complaints in the first place or withdraw them later on. All this did not happen in this case of a prominent foreign businessman who had hitherto enjoyed the full support of government officials. Why not? Additionally, given the fact that other Asian nationals come to Cambodia to indulge in their preference for underage virgins, this arrest is raising some serious questions about the real motivations behind this arrest. The sale of young girl’s virginity is apparently never prosecuted by the authorities, as there is not a single incident known to the public where it was prosecuted, as opposed to news about Western pedophiles, which receive wide coverage in the media. This might lend itself to a very strong suspicion that the Russian ran afoul of a business associate who then orchestrated the complaints and the official charges and who had close ties to the Cambodian police precluding any attempt to whitewash these charges. One might assume that such an associate could only be a high Cambodian official.

In both cases the Cambodian official played a big role as facilitator and financial benefactor. Certainly, there was a huge conflict of interest as the Cambodian official was and still is a highly placed in the Cambodian hierarchy. He obviously wields enough influence on ministers and lesser officials to help decisions go according to his advice.

It is rather difficult to allege and prove criminal wrongdoing in the transfer of funds into his own account, as he did play a broker’s role in that deal. Was he entitled to almost $1.0 million for that? Naturally, the American businessman is angry and feels double-crossed. But definitely greed gained the upper hand in this event. If the American businessman had indeed procured investors for the industrial development, as he claims, the Cambodian official did not do his country a great favor by allegedly double-crossing his American partner in business.

Needless to say, that both the exploration and exploitation of those concessions will not happen in the near future. The Cambodian government will have to look for new investors. The tourist development, which raised some environmental concerns in the first place, is off for the time being, too, until a new investor has been found.

Given the history and circumstances of these two inter-related events it is doubtful that any serious investor, on hearing this story, would even begin to look at Cambodia. Though this may be a single incident, stories like this tend to cast a bad spell on Cambodian officials per se. It is obvious, though, that the American was rather naïve in not implementing the necessary checks and balances, which any prudent businessman would have done, whether or not he is dealing with a trusted partner. Many businesspeople from South Korea and China come to Cambodia to do business there unhindered and successfully, though there have been occasional reports of fraud committed by Cambodian businessmen. But then, these foreign investors sometimes commit fraud themselves.

Naturally, huge multinational companies such as Chevron wield so much clout worldwide and can afford to pay substantial fees to government officials that they can go about their business unhindered.

When asked how the Cambodian official might explain all these events the American said that he will most certainly deny any wrong-doing and claim that everything he did was legal, that he was within his rights, and that no threats were uttered. This would be hard to refute since there are no documents besides the bank transfer statements to corroborate the insinuations, innuendos, and, in fact, accusations contained in the American’s story. It is one of those “he said, he said”-stories.

Given the purported threat and the present situation in Cambodia where the law is enforced somewhat haphazardly, the writer did not feel comfortable contacting the Cambodian businessman for his comments. The names of the protagonists are being withheld for safety reasons.

The report was compiled on the basis of several emails from the American businessman and an extensive phone interview held on Tuesday, Nov. 06, 2007.

Saturday, February 9, 2008

Building Boom Revisited – Are these the first signs?

A comment by an observer in Phnom Penh:


The investment and building construction companies didnt count on Khmer culture when starting this building spree. Khmers have commented that living in apartment buildings, crammed in with other families, reminds them of the Pol Pot times and its not their culture to live like that. As such, no one has been buying these properties. Two Korean companies building on separate locations in Toul Kok have had to stop construction halfway through because they have no advance sales of their properties to provide the funds for further work. The government has bailed one of these companies out by injecting the cash they need to continue building, in exchange for a share of the company.

If the government wants to continue doing this it will soon run out of money.

Thursday, February 7, 2008

The Party Programs of CPP and SRP

In the U. S., the presidential campaigns will soon decide which candidate of the two parties will be nominated to compete for the office of President. In all Western democracies the candidates run on a platform outlining their programs, e.g. jobs, health care, education. They put forth their plans, how they will implement them, and how they will pay for them.

Cambodia will hold its elections in July. Though there will be 5 or so parties nominating candidates for both the parliament and prime minister, only the CPP and SRP are of any significance. FUNCINPEC, with all due respect, cannot really be taken seriously, what with the turmoil that has engulfed this party and with the squabble about presidents, defections, and the royals being a joke, etc.; it has virtually become an arm of the CPP. Its claim to existence might be just to add legitimacy to CPP’s claim of Cambodia’s being a true democracy. The other parties are simply too small to really have any bearing on the outcome of the election.

So what are the party programs of both CPP and SRP? The candidates Hun Sen and Sam Rainsy have been making a lot of speeches about the state of Cambodia, with promises of building more schools, infrastructure, helping the poor, creating affordable housing, guaranteeing human rights, fighting corruption, crime; in general, bettering the standard of living for all Cambodians.

But it appears as though both are long on words but short on specifics with respect to growing the economy, general health care, education, civil liberties, reforming the government and the judicial system, and most importantly how they propose to pay for it all.

The complete CPP program, called the Politic Platform of the CPP, is posted on its website and can be accessed there:

http://www.thecpp.org/page.php?page=political.htm&lang=eng

The complete SRP program on the web can be accessed here:

http://www.samrainsyparty.org/100m_neg/100m_eng.pdf

Public announcements on their programs with concrete details apart from generalities have been rather scarce. The media are pretty much silent on this subject as well.

Both their programs contain honorable and noble goals for a free and prosperous Cambodia. But when it comes to specifics they are rather hazy.

Let’s take a look at the main issues voters would or should be most interested in: Jobs, health care, education, affordable housing, cost of living, standard of living

Jobs:

SRP

Section or measure 56 the SRP manifesto states:

..Promoting economic growth in order to provide jobs for about 200,000 school leavers every year. For this job creation policy to be successful, consistent incentives and assurances must be given to local and foreign investors to set up businesses, factories, and other commercial activities. Long term and legitimate investments in local industries will flow in after corruption is put under control, which implies ensuring the rule of law, a sine qua non for a sound pro-business environment. The Sam Rainsy government will ensure for investors:
- Physical security.
- Legal security (consistent rules and regulations, elimination of non-official taxes and undue fees, respect of contracts with legitimate investors).
- Impartial judiciary (a court system that is independent, corruption-free, and competent).
- Modern infrastructure covering efficient and competitive public services (roads, electricity, clean water, waste management, and telecommunications).
- Development of skilled labor in adequate amount to meet the needs of investors.

Chapter 57 says
Raising the minimum wage for factory workers and company
employees to 280,000 riels (or $70) per month for a 44-hour week.
Overtime entitlements are determined in accordance with the Labor Law.

Chapter 63 states
The government will continue to assist demobilized soldiers in their search for jobs in agriculture, handicraft, or commerce.

CPP

Chapter 1 Internal Policies, Chapter 2 of their platform reads among others

-The Cambodian People's Party continues to widely open and do the best to promote the investments both internally and externally in order to increase the quantity of jobs for the society. It encourages all forms of economy to carry out their competitive activities in the production and exploitation with equal rights before the State laws and in the line with the orientation of development of the country . The CPP concerns of creating favorable conditions for the workers, small businessmen to ensure their living conditions. It continues to strive to rescue the victims, to aid the poor people and the pool students so that the latter could attend the scholarship
- Connect the education and Raining to the requirement of all fields of national rehabilitation and development The education and training must be fit to the real jobs and related to the market of labors
- The CPP considers the youth as the replacing-force for the sake of national rehabilitation and development The works for the youngsters are to deal with watching over, educating ,h-training and organizing them . especially for those who are out of scholarship to become honest, skilled ,healthy ,morally people and to be able to get certain jobs in the society .

- The CPP strives to solve the job-issue for the population in order to prevent the unemployment-crisis . to increase the social productive force and to reduce the poverty by simultaneously implementing measures of growing up the quantity of employments and braining professional skills. To achieve this goal, the CPP has to strongly urge the rural development all over-the Courtly in order to absorb crowded labor-forces, to enlarge the favorable conditions for the foreign and local investors so that they employ them in their private sectors, to brain professional skills to the jobless people, to find out foreign labor-markets . in according to law-procedures, for sending the Cambodian workers abroad .

Health Care

SRP

45. Setting up a social security system that helps all citizens in order toafford costs of health care, and to protect their income earning capacity

46. Providing modern health care to all the poor, free of charge. This measure will help dramatically cut the currently appalling death rate.

47. Implementing a nutritional food distribution program (providing vitamins, minerals, proteins) for school children from poor families to develop their body, mind, and general health.

60. Raising the living standard for rubber plantation workers throughout the country with decent wage, accommodation, and health care facilities. The workers have their right to form a union in order to better defend their interests like other workers in any other industry. Their children are to receive proper schooling.

CPP

The public-health domain must target to improve the health and the well-being of the people by increasing the measures of prevention of the diseases and the systems of public-health preservation ,being participated from the community, and encouraging the expansion of the health-system of private service . Priorities are provided for the works of reduction or cancellation of epidemic diseases, and the rural public-health .

The CPP concerns about the preservation of the women and children's health by means of promoting the service of maintenance of the mothers and children in which include the preventive vaccines for the children's diseases, the education for the pregnant, the practice of the program of the birth-extension and food-assistance .

The CPP consolidates the implementation of the labor-law in order to guarantee workers and employees-rights and interests, to guarantee working security, safety and health, especially by means of consolidating the professional organizations of the employers and of the workers and employees, thus briging them to create good relations in the implementation of the labor-law . Meanwhile, the regular inspection at the factories, enterprises, manufacture and service centers has to be concerned , according to the rule of the labor-law

Education

SRP

10. Carrying out a civics and democracy education program at school that covers the rights and duties of all citizens for an effective participation in good governance and social development

21. Implementing an affirmative action to provide equal opportunity for all. Girls are encouraged, just like boys, to attend and remain at school, through measures to help children and their parents. Young girls will receive incentives to take part in professional training programs in order to secure a decent employment.

55. Encouraging teachers to work in remote areas with generous incentives in addition to their basic salaries. Rural children will have access to proper education just like their counterparts in large cities.

60. Raising the living standard for rubber plantation workers throughout the country with decent wage, accommodation, and health care facilities. The workers have their right to form a union in order to better defend their interests like other workers in any other industry. Their children are to receive proper schooling

65. Enforcing absolutely free and full time primary and secondary
education in State schools.

68. Increasing opportunities for capable students to undertake long-term studies in all fields in western educational institutions. This overseas study program is to be funded by a portion of international aid earmarked for technical assistance and education

68. Increasing opportunities for capable students to undertake long-term studies in all fields in western educational institutions. This overseas study program is to be funded by a portion of international aid earmarked for technical assistance and education

CPP

The Cambodian People's Party is rely proud of its numerous achievements, realized in the purpose of developing the I m-al areas, taking part in relief assistance to the cool people, such as the establishment of thousands of the school -buildings,

All Cambodian citizens and all ethnic people, although they had any past history or position in the society, have to enjoy equality of rights and obligations before laws and equality of interests about social affairs, culture, education, health affairs and other sectors . The CPP enhances the value of social moral and human honor and dignity, and acts against the discrimination among people, the contempt and discrimination towards the ethnic people, the social -classes division, the violence , violation and oppression, which weaken national unity and bring the society towards the uncivilization.

The education and training the human resources in the scope of national identity and international standard is a priority of the Paltry in the process of rehabilitation and development . The target of this policy constitutes the development on knowledge and practice . Therefore, the education and Paining must continue to do the best for achieving the 3 following points of the orientation:
+ Highly concern to solve the scholarship-requirement of all the cycles, from the nursery-school to the after-university by providing them priority of general knowledge education and professional training .
The Cambodian People's Patty continues to strive urging the rural development, especially by means of agricultural development, irrigation systems, rural roads and bridges construction, school, hospitals and pagodas building, and development centers establishment in order to gradually improve the well-being, the living standard of the rural people so that the living-gap between the people living in the countrysides and towns has to incessantly be reduced .
Shrive to fulfill the obligation of primly-cycling education, definitively annul the analphabetisation and gradually make in practice the universalization the basis general education in according to " the education for everybody "
Encourage the building of private establishments in all cycles, both on the general education and skilled and professional Gaining ill order to take part in the educational development.
Increase the capability to absorb as much as possible the quantity of students for the professional training-schools and the universities . Concern to help poor-students so that they are able to continue their scholarship.
+ Continue to improve the quality of the education and training up to the international standard.
+ Connect the education and Raining to the requirement of all fields of national rehabilitation and development The education and training must be fit to the real jobs and related to the market of labors
The CPP considers the youth as the replacing-force for the sake of national rehabilitation and development The works for the youngsters are to deal with watching over, educating ,h-training and organizing them . especially for those who are out of scholarship to become honest, skilled ,healthy ,morally people and to be able to get certain jobs in the society .
The CPP improves and holds up the national tradition and custom it maintains the national prerogatives, patrimonies, art, language scripture . tradition and custom so that they au-e able to remain for ever . integrate the art and culture with the educational system in order to upgrade the general knowledge on the cultural inheritance and national identity, to promote the pride of the nation, individual and community All of these are the fundamental spirit of the maintenance of the national culture, the prevention of the process of flowing in of the evil culture from outside, the inspiration by selecting the foreign cultures which are useful for development of the national culture, for upholding the familial value and social moral.

The CPP connects the pagoda-affairs and religious activities to the education of moral, inviolence, and to the warm relationship in the society . it prevents the religious discrimination Exploitation which lead to the social division .

The CPP highten the cooperation between the State and the associations, the national and the international organizations for the sake of taking care of the orphans, widows ,war-victims, retired people, invalids, unfamiliar old people, miserable people living in towns and cities as well as the families' members who have defected from the KR hardliners to return living in the national society, and in order to create the conditions to enable to appropriately live by receiving the mental and professional education, the capital and other means .

Housing

SRP

4. Speeding up the decentralization process to uphold democracy and raise living standard at the grass roots level. Roles, authorities, and responsibilities for the administration at provincial, district, commune, and village levels are to be specified in accordance with the concept of decentralization that requires elections at all levels.

40. Carrying out a housing project for the poor and the homeless on Stateowned land and buildings. As part of a vast social program, the project offers low-rent or free accommodations to the most destitute people.

48. Providing housing and pensions for the handicapped, to ensure decent living conditions and dignity for this most destitute segment of the population.

CPP

Silent

Cost of living, standard of living

SRP

41. Prohibiting monopoly in production and distribution of electricity. In areas where public utilities are not available, citizens have the right to form an association to produce and distribute electricity. The price for electricity produced by any private entity cannot exceed a ceiling to be negotiated with the authority and consumers representatives.

42. Reducing the current petrol retail price of 2,500 riels per liter to 1,500 riels (as at 29 March, 2003). The retail prices of petrol and other petroleum products are to be maintained at comparable levels with those in neighboring countries, like Thailand. This measure will greatly improve the ordinary people’s living standard, and help eliminate petrol smuggling

51. Promoting agricultural produce by farmers (rice, corn, soybean, sesame, tobacco, sugar cane, palm sugar, rubber latex, etc) in local and overseas markets for fair prices to improve their livelihood. The following initiatives will be taken :
- Securing full market freedom for buyers and sellers.
- Eliminating any monopoly, or any practice that artificially
depresses prices for farm produce.
- Reducing the influence of middlemen.
- Improving road and transport system.
- Modernizing the stock management and distribution
system for farm produce to protect farmers’ income.
- Providing farmers with up-to-date information about local
and overseas markets.

60. Raising the living standard for rubber plantation workers throughout the country with decent wage, accommodation, and health care facilities. The workers have their right to form a union in order to better defend their interests like other workers in any other industry. Their children are to receive proper schooling

61. Imposing a moratorium on the eviction of small vendors from existing market places. Any new development to replace the current market place is to be approved by the concerned vendors after considering technical aspects, purchase price or rent of each new stall in the proposed alternative building. Taxes and levies payable by the small vendors are to be reduced

99. Implementing rural development programs with priority given to the border areas. Building roads and taking other initiatives in order to lift standard of living for people in the border areas contribute to the defense of Cambodia’s territorial integrity.


CPP


-The Cambodian People's Party continues to widely open and do the best to promote the investments both internally and externally in order to increase the quantity of jobs for the society. It encourages all forms of economy to carry out their competitive activities in the production and exploitation with equal rights before the State laws and in the line with the orientation of development of the country . The CPP concerns of creating favorable conditions for the workers, small businessmen to ensure their living conditions. It continues to strive to rescue the victims ,to aid the poor people and the pool students so that the latter could attend the scholarship

The CPP encourages the trade-liberalization by targeting economic forms in the trade sector to run their businesses in the line with the policy and the State-laws . The CPP creates favorable conditions so that the goods are capable to freely circulate through out the country, to regionally furnish each other and to reduce the gap of prices between the produced region and consumed one, and between the municipality and the countryside

The CPP urges the development of the potential of electricity-energy, especially the hydro-electric in order to provide the power -consumption with low price and to transform the electrical sector to be a real economic basis on the service of the development of the other sectors .

The Cambodian People's Patty continues to strive urging the rural development, especially by means of agricultural development, irrigation systems, rural roads and bridges construction, school, hospitals and pagodas building, and development centers establishment in order to gradually improve the well-being, the living standard of the rural people so that the living-gap between the people living in the countrysides and towns has to incessantly be reduced .

The CPP urges the rehabilitation of the transportation-infrastructure for the service of economic development, national defense, tourism and social living-standard improvement .

The CPP make in practice the policy of saving and using the national budget with great transparent, honest and efficient manner, thus making balance between the requirement for the macro-economic stability and for the economy-increasing support, improving the wages of the civil servants, the living condition of the people and the social environment.

The CPP's policy on the social affairs is aimed to generally improve the living conditions of everybody in the society both materially and spiritually, to make in practice rights and interests of the people of all ages and all ethnic people, and first of all to reduce to a minimum level the social catastrophe, to create favorable conditions for the poor people and the martyrs which are the majority in the society so that they are able to connect themselves to the current of economic development in order to build up a situation of progress for all of the national community's members

The CPP highten the cooperation between the State and the associations, the national and the international organizations for the sake of taking care of the orphans, widows ,war-victims, retired people, invalids, unfamiliar old people, miserable people living in towns and cities as well as the families' members who have defected from the KR hardliners to return living in the national society, and in order to create the conditions to enable to appropriately live by receiving the mental and professional education, the capital and other means .

The CPP concerns about the working-capability rehabilitation of the handicappers by providing the high-technology artificial limbs as well as braining the appropriate skills so that they are able to work and live . The CPP develops the war veterans by means of establishing the troopers' development center in some regions in order to solve the living conditions of the families of the sacrificed fighters . the handicappers and the break-up troopers .

The CPP are interested to develop the remote regions of the ethnic people . especially in the north-east region, in order to push economic, social, cultural and living conditions-development up to the common prosperity of the national community. Therefore, the physical infrastructure must be worried about in those areas .
-The process of the national restoration and development on all fields had progressively developed, thus linking to the living -standards improvement of all strata of people, in which the rural development had speedily forwarded.



As with their party leaders’ speeches, the programs are long on promises but short on specific proposals on how to accomplish those noble goals, although, admittedly, general party manifestos usually don’t contain precise and detailed plans. And the CPP could well do with a good translator. What they put on the Internet is pure gobbledygook and gibberish.

The parties might want to publish those election platforms so the public can see the differences in goals, not only in their candidates. These plans need to be in simple and understandable language for the average (still mostly under-educated) citizen.

It would be interesting to know how they want to stimulate the economy, how they will go about generating 200,000 and 300,000 new jobs a year for school and college graduates, how they will implement a policy for a minimum wage of $70 a month. (The program dates back to 2003 and would need to be amended to reflect current conditions.)

The same goes for health care for all, (today there is not one single health insurance company in Cambodia), affordable housing (not those overpriced projects currently being built), raising the standard of living and keeping the cost of living in check. How? How?

Hun Sen harps on his long-standing reign, and how good a leader he has been, and that there is no reason to change a good leader.

Sam Rainsy lambastes the government for its mismanagement of the country, its corruption, for allowing illegal immigrants into the country, and keeps deploring the plight of the poor, the factory workers.

What Cambodia needs now is real leadership, not speeches. It needs a path out of its misery, it needs reconciliation.

Isn’t it high time for real actions rather than all those empty words and unproductive fights?

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