Photo by: Tracey SheltonPrime Minister Hun Sen speaks Thursday at the Third Cambodia Economic Forum in Phnom Penh.
ECONOMIC POLICIES
A look at the key initiatives proposed at Thursday's 3rd Cambodia Economic Forum
Stimulus package
Exact figures were not provided, but the government says it will boost spending on infrastructure, social programs and agriculture.
Reserve requirements
The bank reserve requirement will be reduced further in 2009 from 12 percent.
Tourism reform
No additional funds will be given to the sector, but a working group is meeting to recommend policy changes. Garments industry
One-percent profit tax has been eliminated and export promotions are under way.
Budget reform
Government to cut spending on petroleum, and the prime minister pressed petrol companies to reduce pump prices in line with oil slump.
Agriculture spending
The government hopes to boost agriculture yields and processing capacity through loans and grants. The Rural Development Bank received US$12 million in 2008 and is set to get $18 million in 2009.
The Phnom Penh Post
Friday, 06 February 2009
Kay Kimsong
Hun Sen blames corruption and mismanagement in developed world for current global downturn at forum aimed at addressing economic problems.
HUN SEN lambasted Western countries Thursday for the economic crisis, blaming them for corruption and mismanagement at an economic conference in Phnom Penh.
"Rich countries are only blaming poor countries for corruption - they never blame one another," he said at the Third Cambodia Economic Forum at Raffles Le Royal hotel.
Donor organisations were not spared from the attacks, with Hun Sen singling out the International Monetary Fund, World Bank and Asian Development Bank (ADB) for making the crisis worse.
"Powerful nations no longer have the right to advise small countries," he said.
He announced a series of measures to cut wasteful spending and provide additional funding to support the local economy.
"We won't spend money buying cars for government officials," said Hun Sen
Among the cost-cutting measures was a 50 percent cut in fuel spending for government cars in line with lower petroleum prices.
"We are changing our policy. Before we approved US$7.5 million for each ministry to buy gasoline, but now we will provide only $3.75 million," said Hun Sen.
He said that cutting government waste would be a key part of the 2009 budget.
"We cannot just spend. If the prime minister does not manage the budget, the economy will be dead."
Slowdown coming
Development organisations recommended a range of reforms and crisis-fighting measures.
World Bank Country Manager Quimiao Fan warned that the slower economic growth in 2008 was "just a warning" before an even sharper downturn for 2009.
He pressed for deeper regional integration, better management of natural resources and more infrastructure investment.
" Rich countries are only blaming poor countries for corruption."
"Cambodia should look to neighbouring markets in Asia, where the contraction may be less pronounced," he said.
ADB Country Director Arjun Goswami highlighted increased poverty as a side effect of the crisis, saying about two million people in the Kingdom were close to the poverty line.
"This new external shock will sharply curtail, at least over the next two or three years, three of the four Cambodian sources of growth: garment exports, tourism and construction," he said.
Hun Sen rejected opposition demands for a $500 million stimulus package.
"That request is not logical - it is opposition logic," he said. Opposition lawmakers were barred from the event.
UN Development Program Resident Representative Douglas Broderick said Cambodia has achieved remarkable economic growth, but that wealth had not trickled down.
"We are grateful for the substantial gains made toward sour shared goal of reducing poverty.... Clearly we want to see those gains preserved, while protecting the most vulnerable 1.8 million Cambodians from the combined effects of poverty and this continuing crisis," he said.
A look at the key initiatives proposed at Thursday's 3rd Cambodia Economic Forum
Stimulus package
Exact figures were not provided, but the government says it will boost spending on infrastructure, social programs and agriculture.
Reserve requirements
The bank reserve requirement will be reduced further in 2009 from 12 percent.
Tourism reform
No additional funds will be given to the sector, but a working group is meeting to recommend policy changes. Garments industry
One-percent profit tax has been eliminated and export promotions are under way.
Budget reform
Government to cut spending on petroleum, and the prime minister pressed petrol companies to reduce pump prices in line with oil slump.
Agriculture spending
The government hopes to boost agriculture yields and processing capacity through loans and grants. The Rural Development Bank received US$12 million in 2008 and is set to get $18 million in 2009.
The Phnom Penh Post
Friday, 06 February 2009
Kay Kimsong
Hun Sen blames corruption and mismanagement in developed world for current global downturn at forum aimed at addressing economic problems.
HUN SEN lambasted Western countries Thursday for the economic crisis, blaming them for corruption and mismanagement at an economic conference in Phnom Penh.
"Rich countries are only blaming poor countries for corruption - they never blame one another," he said at the Third Cambodia Economic Forum at Raffles Le Royal hotel.
Donor organisations were not spared from the attacks, with Hun Sen singling out the International Monetary Fund, World Bank and Asian Development Bank (ADB) for making the crisis worse.
"Powerful nations no longer have the right to advise small countries," he said.
He announced a series of measures to cut wasteful spending and provide additional funding to support the local economy.
"We won't spend money buying cars for government officials," said Hun Sen
Among the cost-cutting measures was a 50 percent cut in fuel spending for government cars in line with lower petroleum prices.
"We are changing our policy. Before we approved US$7.5 million for each ministry to buy gasoline, but now we will provide only $3.75 million," said Hun Sen.
He said that cutting government waste would be a key part of the 2009 budget.
"We cannot just spend. If the prime minister does not manage the budget, the economy will be dead."
Slowdown coming
Development organisations recommended a range of reforms and crisis-fighting measures.
World Bank Country Manager Quimiao Fan warned that the slower economic growth in 2008 was "just a warning" before an even sharper downturn for 2009.
He pressed for deeper regional integration, better management of natural resources and more infrastructure investment.
" Rich countries are only blaming poor countries for corruption."
"Cambodia should look to neighbouring markets in Asia, where the contraction may be less pronounced," he said.
ADB Country Director Arjun Goswami highlighted increased poverty as a side effect of the crisis, saying about two million people in the Kingdom were close to the poverty line.
"This new external shock will sharply curtail, at least over the next two or three years, three of the four Cambodian sources of growth: garment exports, tourism and construction," he said.
Hun Sen rejected opposition demands for a $500 million stimulus package.
"That request is not logical - it is opposition logic," he said. Opposition lawmakers were barred from the event.
UN Development Program Resident Representative Douglas Broderick said Cambodia has achieved remarkable economic growth, but that wealth had not trickled down.
"We are grateful for the substantial gains made toward sour shared goal of reducing poverty.... Clearly we want to see those gains preserved, while protecting the most vulnerable 1.8 million Cambodians from the combined effects of poverty and this continuing crisis," he said.
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