The United Nations Asserts that Cambodia Is among the Least Developed Countries

Posted on 24 July 2008

The Mirror, Vol. 12, No. 570

“Developing the country nearly 30 years by borrowing money from foreign countries and by receiving hundreds of millions of dollars each year, by 2008, Cambodia is still a country among forty nine countries that have very little development. According to a statement of the UN Conference on Trade and Development [UNCTAD] on 18 July 2008, 49 countries were evaluated by the United Nations to be Least Developed Countries [The Least Developed Countries Report 2008, Growth, Poverty and the Terms of Development Partnership, full report: PDF, 197 pages, 1719Kb].

Among the 49 countries 10 countries are from Asia, 5 countries from the Pacific Ocean region, 1 country from the Caribbean, and 33 countries from Africa. Countries from Asia are Afghanistan, Bangladesh, Bhutan, Burma, Cambodia, East Timor, Laos, Maldives, Nepal, and Yemen. The evaluation of the UN about trade and development are based on three criteria:

the first criterion is ‘low income’ of citizens, based on the average national income per capita during three years [2002-2004], and countries were added to this list if the figure is less than US$750;

the second criterion, it based on ‘human assets’, [based on indicators of nutrition, health (child mortality rate), school enrollment, and adult literacy rate]; and the third criterion depends on the ‘economic vulnerability’ [based on indicators of natural shocks like instability of agricultural production; trade shocks like instability of exports of goods and services, exposure to shocks like strong dependency on agriculture, or merchandise export, or being affected by economic isolation].

“Cambodia has just waken up from war that had lasted many years, and receives about US$400 million to US$600 million every year. This does not cover loans from some countries, and national funds collected through taxes and through other means.

“Previously, the Economic Institute of Cambodia and the World Bank had estimated that Cambodia loses each year at least US$300 million to US$500 million by corruption. Also Mr. Joseph Mussomeli, US ambassador to Cambodia, has criticized corruption in Cambodia, claiming that the Cambodian government has no clear policies to fight corruption; just to speak about this word a lot may make it sound beautiful without any effect. Also, Transparency International found that Cambodia is among the countries in the world having most serious corruption problems [Global corruption Report 2008].

“Some economic observers and officials of civil society organizations agree with the data of UNCTAD, asserting that Cambodia is among the Least Developed Countries; this evaluation is in line with the real situation. It is true that the government led by Prime Minister Hun Sen owes much debt and received funds of hundreds of millions of dollars every year, but there is not much significant development. At present, 36% of Khmer citizens still live under the poverty line with Riel 4,000 [approx. US$0.98] per day, while many leaders and corrupt officials became millionaires and billionaires.

“Economic observers and officials of civil society organizations in Cambodia said that hundreds of millions of dollars that the government of Prime Minister Hun Sen, vice-president of the Cambodian People’s Party, has received from foreign countries, and funds from the international community every year, are not spent to develop the country. A considerable part of that money has gone into the pockets of leaders and of corrupt officials which led to very little economic growth, and the benefits from that economic growth do not reach the poor, but it benefits corrupt officials who are partisans of powerful leaders. This creates an ever larger gap between the rich and the poor, and makes the nation to face a serious crisis.

“An official, who asked that his name not be mentioned, said that strong corruption in the Ministry of Commerce, managed by Cham Prasidh, is one reason making Cambodian commerce not to grow as in neighboring countries, and the country has little development. Just to register a company, an investor has to spend much money to corrupt officials close to Cham Prasidh. Therefore, big foreign investors do not dare to come to invest in Cambodia, because they hate corruption. Another thing is that Cambodia has no anti-corruption law which meets international standards.

“Some independent observers noticed that corruption and bureaucracy occurring strongly in important state institutions of Cambodia makes Cambodia to develop little, although the country owes nearly US$4 billion and has received hundreds of millions of dollars from the international community. State institutions ruined by corruption and bureaucracy are the Council of Ministers, the Ministry of Economy and Finance, the Ministry of Commerce, the Customs and Excise Department, the Council for the Development of Cambodia, and the Department of Economic Police of the Ministry of Interior. As for the Ministry of Parliamentary Affairs and Inspection, managed by Men Samon, a member of the Central Committee of the Cambodian People’s Party, does nothing to observe, prevent, and eliminate corruption.

“Independent observers noticed that also some important institutions and donor countries for Cambodia do not help Cambodia to eliminate corruption effectively. Clearly, Mr. Ian Porter and Ms. Nisha Agrawal, Country Director for Cambodia and [former] Cambodia Country Manager of the World Bank, seem to be sensitive about corruption, which absorbs even development funds of the World Bank. But even when corruption and bureaucracy in important state institutions of the Hun Sen’s government grew stronger, the World Bank provided more funds to Hun Sen’s government, although they knew that such funds do not provide advantages to Khmer poor citizens.

“Analysts said that in order for Cambodia to develop soon, the Khmer citizens countrywide have to defeat corrupt leaders, who destroy and steal from the nation, through the election on 27 July 2008. This means that Khmer citizens countrywide have to vote to dismiss the Cambodian People’s Party from power, because the government led by the Cambodian People’s Party for many terms does not improve the national economy and does not make citizens to live with a richer livelihood. The new leader, that Khmer citizens have to choose, is Mr. Sam Rainsy, the president of the opposition party who is an economic expert and who is willing to serve the citizens’ and to protect the nation’s interests.”

Moneaksekar Khmer, Vol.15, #3519, 23.7.2008
Newspapers Appearing on the Newsstand:Wednesday, 23 July 2008