WB Officials Urges to Promote Cambodian Economy

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Written by DAP NEWS -- Thursday, 10 September 2009

World Bank (WB) on Wednesday urged the promotion of the Cambod- ian economy as Cambo-dia is one of many countries in the world affected by the global downturn, according to a Wednesday WB press release.

The Second Investment Climate Assessment, published in 2009 by the World Bank and IFC, identifies priorities to significantly improve the business environment by helping to retain existing investors and attracting new ones, said Qimiao Fan, Country Manager for the World Bank in Cambodia. “This would position Cambodia well to benefit from a recovery in the global economy, and also help its small firms to develop and create jobs.”

IFC’s Resident Representative in Cambodia, Julia Brickell, noted that Cambodia is making efforts to improve some aspects of the business environment. “IFC, with support from the European Commission and other donors, is assisting the government to improve commercial dispute resolution mechanisms through the establishment of the National Arbitr- ation Center, which will be a quicker and cheaper alternative to the courts. We are assisting with the selection of arbitrators and preparing a program for training them to arbitrate commercial disputes. Effective commercial arbitration is crucial in helping businesses enforce contracts in ways that are less costly and time consuming than is currently the case,” said Brickell. Due to the press release, as a result of its reforms, Indonesia—the region’s most active reformer this year—moved up to 122 from 129 on the global ease of doing business rankings. Indonesia cut the time required to start a business by 16 days and the time to transfer a property by 17 days. The country also strengthened disclosure requirements for related-party transactions to protect investors.Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand as runner-up. Singapore introduced online and computer-based services to ease business start-up, construction permits, and property transfers.

Prime Minister Hun Sen on Monday claimed that the Cambodian Government had decided first to discontinue the Land Management and Administration Project (LMAP), a project financed by development partner the World Bank.

“I clarify that Cambodia decide to end the partnership with World Bank in land titling as it has complicated points,” said the premier during the ceremony of the 2008 population census at Chaktomuk hall.

Hun Sen reiterated that Cambodia decided to terminate the project first, not the World Bank. “Do not act like the prestigious one which confirmed to terminate first; Cambodia terminated first,” he said.

Yim Sovann, a spokesman for the opposition Sam Rainsy Party (SRP), on Monday told DAP News Cambodia that he regretted the Cambodian Government’s decision to cease the World Banká project.

Following a decision by the Council of Ministers on Friday 4 September to terminate World Bank financing of the Land Management and Administration Project (LMAP), World Bank Country Director for South-East Asia, Annette Dixon, made the following statement:

“Land security and a fair, transparent approach to resolving land disputes and resettlement are among the greatest challenges facing Cambodia today. People without land or secure title to land are much more likely to be poor and stay poor,” according to the statement released on Monday.