UNDP Releases Report on Cambodian Economy – Wednesday, 27.5.2009

Posted on 28 May 2009

The Mirror, Vol. 13, No. 614
http://cambodiamirror.wordpress.com/

“Phnom Penh: Economists of the United Nations Development Program, UNDP, for Cambodia, said that Cambodia needs more investments in the education and the welfare sectors for the labor force in order to encourage economic growth and alleviate poverty.

“In a press conference to present an UNDP report on Monday, 25 May 2009, Mr. Brooks Evans, an economist, said, ‘Cambodia now does not have workers with sufficient skills, and this is a priority problem that needs the most help to improve the economy.’ The UNDP report, which studied the competitiveness of Cambodia in the global economy, ranks Cambodia below other ASEAN countries.

“Mr. Brooks Evans added, ‘Several regulations and formulas make investors from the USA, from Europe, and from Japan withdraw their operations from Cambodia, which is one of the world’s poorest countries, and Cambodia loses many foreign investors.’

“The report continued to say that 30% of the more than 14 million Cambodian people live with an average income of only US$0.50 per day. The sector of agriculture represents 32% of the GDP in Cambodia.

“Tourism grows also, like in 2008, there were more than 2 million foreign tourists who visited Cambodia. This sector contributes one firth of the national economy, and it is an important sector to boost the economy with income from foreign countries. Also, Tourism creates new job opportunities and a new job market for local people, working to provide different services and gaining benefits.

“Also, the UNDP report shows the competitiveness in information technology and in Information Communication Technology, which grew by 32% per year during the recent five years, and the increase added up to US$429 million. At present, 3.5 million people in Cambodia, or one fourth, are using mobile phones. [The UNDP report criticized, however, that there is no adequate regulation, while the government has already licensed nine mobile phone providers - though some have blocked connectivity to competitors, resulting in problems. 'There appears to be no control over this in Cambodia.']

“There is growth also in the garment sector. But at present, there are many challenges because of the impact of the global economic crisis. Textile factories in Cambodia contributed 12% of the GDP, when the garment export contributed 72% of the overall product export in 2007. This sector employs more than 300,000 workers.

“Another sector, which contributed to improving the economy, is the construction sector, which was growing in recent years and earned US$500 million in 2003 and increased this to US$3.2 billion in 2007. But nowadays, Cambodia pays the least wages to the [construction] labor force among all ASEAN countries, which is only US$4.50 per day, compared to US$7 dollar per day in Thailand.

“The report adds that Cambodia is moving [very slowly] towards global economic competition, moving up one rank to position 109 among 134 countries in 2008-2009; and it moved up by 15 ranks in a trade report of the World Bank among 135 countries. However, Cambodia is still almost at the bottom, compared to other ASEAN countries in the education and in the welfare sectors.”

Deum Ampil, Vol.3, #195, 27.5.2009
Newspapers Appearing on the Newsstand:
Wednesday, 27 May 2009