Wednesday, 27 May 2009

Cambodia plans launch of export-import bank

An export-import bank would help finance economic development, particularly export industries such as commercial agriculture, officials said Tuesday at an SME finance conference in Phnom Penh. BLOOMBERG



Written by George McLeod
Wednesday, 27 May 2009

New bank would help finance small-business development as well as expansion of Cambodia’s narrow export base, say government officials

CAMBODIA may launch its first export-import bank to stimulate trade and support small and medium-sized enterprises (SMEs), officials said at a Tuesday conference on small-business financing in Phnom Penh.

Details of the bank have not been worked out, but officials said it would provide financing and other support to SMEs, particularly in the agriculture sector.

Farmers have had difficulty accessing inexpensive credit to upgrade technology and build processing facilities, even from micro-credit institutions, which often charge more than 12 percent interest.

"There really is a capital shortage for farmers, for products such as cassava," said Sorasak Pan, secretary of state at the Ministry of Commerce.

"Though Cambodian small businesses provide jobs, generate income and contribute to the country's economic development, SMEs lack formal financial support they need to expand their businesses," said a joint statement by conference organisers.

The project is backed by the Ministry of Commerce, in cooperation with the Ministry of Finance and the National Bank of Cambodia, as well as a number of international agencies including the UN Development Programme (UNDP).

The government plans to conduct a feasibility study this year, and a budget for the bank could be ready by 2010 for possible launch in the same year, Ministry of Commerce officials said.

The feasibility study would be financed by the UNDP at an estimated cost of US$60,000 to $80,000. Officials have not determined the budget for the export-import bank.

Siphana Sok, secretary of state for the Ministry of Commerce, said the bank would focus on agriculture businesses struggling for capital.

"This is a first step towards getting trade finance... The bank will play a role in trade finance and will help to diversify the country's trade," he said.

The government is focusing on agriculture as a potential growth sector for Cambodia, and has identified 19 products for export promotion.

It says that boosting agriculture would have a strong impact on poverty reduction because 85 percent of the workforce is employed in the sector and it contributes 65 percent of GDP.

But a spokesman from the Pailin Agribusiness Association said that the government should focus on opening up markets and reducing transport costs.

"We are paying $20 per tonne to export cassava, which is too expensive.... The government also needs to put pressure on the Thai government to open its borders to Cambodian products," he said.

Cambodia required to import salt


Written by May Kunmakara
Wednesday, 27 May 2009

AFTER early rains damaged local production, Cambodia will need to import salt for the first time in recent memory. The government plans to purchase 60,000 tonnes of salt from China's Guangdong province after domestic production was set to fall by more than two-thirds to only 30,000 tonnes this year, officials said.

"We plan to import 60,000 tonnes of salt from countries in the region to fulfil market demand. We are confronting a salt shortage because our production has been so little this year," Ly Seng, president of the Kampot-Kep Salt Production Association, said Tuesday.

Chhun Hinn, Kampot's director of the Department of Industry, Mines and Energy, said that given the poor season, if Cambodia did not import salt, it would "face serious problems ... so we need to prepare".

The shortage has already hit salt wholesalers.

Uy Sen, a Kampot wholesaler, said he does not have enough to sell and may have to close.

"We don't have white salt to sell," he said, adding he had dark salt which would sell at a loss.

Inside Business: Juice maker struggles to turn healthy profit

Photo by: Souen Say
The Khmer Mekong Foods processing factory in Phnom Penh.


The Phnom Penh Post
http://www.phnompenhpost.com/

Written by Soeun Say
Wednesday, 27 May 2009

PICH Chan, general manager of Khmer Mekong Food Enterprise, walked into a supermarket in Phnom Penh in 2003, and he was dismayed.

He counted 90 different products that had been imported from neighbouring countries that could have been made in Cambodia.

"I wanted to see a Khmer product at markets," he said. "My friends and my relatives said my juice was good, so I started to think about producing juice for the market."

In late 2005, Pich Chan invested US$40,000 in a fruit-juice processing enterprise, and now four years later, his business produces juice from mangoes, pineapples, tamarind and guavas.

With eight workers, Khmer Mekong Foods is a small business only producing about 50 cases of juice a day. A case, which holds 24 bottles, is sold to retailers for $7, according to Hok Sovanna, Khmer Mekong Food's marketing manager.

But Hok Sovanna says Cambodians are starting to acquire a taste for fruit juice after initially shunning it.
"Now Cambodians have started to accept its flavour with up to 80 percent natural fruit," he said.

But despite increasingly positive feedback about the product, in 2007, Khmer Mekong Food lost $60,000.
Pich Chan blames the losses on his own lack of marketing expertise.

"I only have skills at producing not at selling, that's why poor marketing is our weak point" he said.

Also, as a small enterprise, Pich Chan says it has been impossible for his company to break into the international market because he cannot produce enough bottles to fill a shipping container, which is necessary to supply countries like the United Arab Emirates, Canada and the United States.

"I was sad to hear that they need one big container per month. I regret that I could not meet their demands," he said, adding many other Khmer agricultural products face the same limitations.

In the next one to two years, Pich Chan hopes to expand his company so he will be able to export his product overseas.

But the economic crisis has hit his company hard. Since late 2008, sales have dropped between 30 and 40 percent from the same period last year. Nevertheless, Pich Chan says that by continuing to improve the quality of his juices and diversifying his product line he will be able to increase Khmer Mekong Foods' market share in Cambodia.

In order for him to follow through with his expansion plan, however, Pich Chan says the company will need to borrow money. But, he says, Cambodian interest rates are too high at up to 12 percent per year.

"There are a lot of things to produce, but I don't have the capital. I need to find which bank has a low [interest] rate," he said.

Pich Chan said that he wished Cambodia had a bank with an especially low rate for small and medium-sized enterprises.

"I need a chance to borrow money to improve my business," he said.

Inside Business is a new section every Wednesday that will profile Cambodian small and medium-sized enterprises.

Opposition calls for greater transparency in tendering


Written by Kay Kimsong
Wednesday, 27 May 2009

After Royal Group is awarded exclusive 15-year contract for new limousine service, opposition lawmaker calls for greater openness in contracting process

THE opposition has renewed calls for the government to increase the transparency of contracts and licences issued to the private sector following the launch of a limousine service on Monday by the Royal Group under an exclusive 15-year contract.

Opposition lawmaker Son Chhay said Tuesday that such agreements between the government and private sector are nothing new, citing similar contracts in the past that have seen Sokha Hotels receiving a licence to part-manage Angkor Wat, and another for operating road tolls on National Road 4.

"We have to have some sort of law or regulation to force government officials on how to make a decision on contracts ... with transparency, we have to do something to change government practice," he said.

The UN Development Program - among other organisations - has pushed the government for years on this issue, he added, but to no avail.

"I think that donor countries must stop talking, and take action instead," said Son Chhay.

The government on Tuesday defended allocating the exclusive contract to the Royal Group, saying that such a service necessitated a large initial investment - estimated at more than US$10 million - and therefore the company in question should be permitted a certain amount of protection.

"If any ministry needs a limousine service, they must hire from Royal Cambodian Limousine [Service Co] and the Ministry of Finance will pay for the service," said Nguon Meng Tech, director general of the Cambodian Chambers of Commerce, reiterating the exclusive nature of the licence awarded to the Royal Group subsidiary.

The contract relates to the provision of vehicles for government ministries, dignitaries and delegations from overseas.

In a press release, the Royal Group said: "Royal Cambodian Limousine Service will look to find a niche for a high-end chauffeured driven car service in addition to servicing the government."

Chan Sophal, president of the Cambodia Economic Association, said Tuesday that the government singled out certain companies for some contracts where potential investors were lacking, particularly where the investment capital required was large.

"Whenever service costs are high, the government will give an exclusive contract," he said, adding that for this kind of agreement the government needed to know the company and its level of expertise.

"I think sometimes exclusive licences could be an advantage for investor opportunity if the government is capable of limiting the service to a fair cost to pay for such a service," he said, warning that unregulated pricing structures in a monopoly market can mean artificially high prices for the consumer.

Royal Group signed an agreement with the government in March that will see the company operate a fleet of 100 Mercedes E280 sedans, 40 of which have already arrived in the Kingdom. Royal Cambodian Limousine Service Co will begin its first assignment this week with the EU-ASEAN Summit in Phnom Penh beginning today.

"I think with EU members in town, we should raise this [transparency] issue," said Son Chhay.

Report blasts builder burden

Photo by: Heng Chivoan
Cambodia’s highly bureaucratic licensing process is potentially behind delays in some building developments, according to a new UNDP report.


The Phnom Penh Post

Written by NATHAN GREEN and SOEUN SAY
Wednesday, 27 May 2009

But land management minister rejects UN agency findings that bureaucracy is holding up construction projects and causing some developers to pull out

Cambodia's highly bureaucratic licensing process for construction projects is potentially costing the country significant sums in foreign direct investment by lowering the sector's competitiveness, a new study by the UN Development Programme (UNDP) says.

According to the "Cambodia Country Competitiveness: Driving Economic Growth and Poverty Reduction" study, it takes approximately 710 days to get all construction permits required to complete a project in Cambodia, compared with 200 days in Thailand and about 150 days in Vietnam.

Each procedure takes 31 days to clear in Cambodia, the study found, compared with around 15 days in Vietnam and Thailand and just 7 days in Laos.

The report also said that construction companies often claim they need to resort to paying unofficial charges in order to shorten timescales for regulatory approval.

Uncertainty over the implementation of laws and regulations has also led to some investment plans being abandoned, the study found, citing foreign investors and chambers of commerce.

"The key is the opacity of rules and regulations," UNDP economist Brooks Evans said. "They may be clear at the top level, but the specifics are often unclear leading to a major obstacle to businesses setting up."

--------------------------------------------------------------------------------
I pay money in order to get permits on time otherwise it takes more than three months to get permission to build.
--------------------------------------------------------------------------------

Im Chamrong, director general of the construction department at the Ministry of Land Management, Urban Planning and Construction, rejected the report's findings.

"We follow Cambodian construction laws," he said. "It takes approximately 45 days to get all the construction permits required to complete a project in Cambodia, even large and small projects.

"I don't know where the UNDP report gets the information from, but it's not true because the UNDP does not know how complex the rules are to apply."

He added that mistakes in required documents could delay the process. "Some companies receive permits late because something is wrong with their documents, but it's not late like 710 days but perhaps one or two months," he said.

He also denied that construction companies had to pay unofficial charges.

"I don't know about that; I know that our charges only depend on the size of the project," Im Chamrong said.

However, Seng Thora, 53, a construction company manager, said he had complained to land management authorities about corruption. "It is very difficult to apply for a permit to build a house," he said. "I pay money in order to get permits on time otherwise it takes more than three months to get permission to build."

On hold
Evans said between 30 and 40 percent of construction projects were currently on hold, though he did not specify the proportion thought to have been derailed by regulatory uncertainty as opposed to other causes, particularly the effect of the global financial crisis.

Figures released by the Im Chhun Lim, the Minister of Land Management, Urban Planning and Construction, at the ministry's annual meeting last month showed the book value of major construction projects approved by the ministry fell just 1.14 percent last year to $2.96 billion from a little over $3 billion in 2007. In all, the ministry approved 181 projects last year, up from 167 the year before.

However, the ministry figures do not detail money actually spent on projects or the progress made.

A number of high-profile projects were abandoned or scaled back in the latter half of last year, many involving South Korean companies, after the US subprime mortgage crisis spiralled out of control last year into a global financial meltdown.

At the time, lawyers representing several South Korean developers told Prime Location that the global economic crisis was not the key factor in delays. Instead, they said, the botched implementation of new regulations controlling housing development deposits was responsible. If passed, the new rules would make it impossible for their clients to continue with projects due to concerns of financers at home.

The new rules, or prakas, were delayed amid the outcry and the Ministry of Economy and Finance has promised to redraft them in consultation with the private sector.

Message repeated
The UNDP findings were supported by a new study of Cambodia's investment climate by the World Bank and the International Finance Corporation (IFC). The Second Investment Climate Assessment, which surveyed 500 entrepreneurs in Phnom Penh, Siem Reap, Sihanoukville, Battambang and Kampong Cham, found that regulatory uncertainty was the fourth biggest concern of businesses in Cambodia. Corruption was ranked the highest concern, followed by macroeconomic uncertainty and anti-competitive practices.

World Bank Country Manager Qimiao Fan said at the report's launch Monday that the global financial crisis made it even more critical that business environment problems were addressed. "[N]ow with the global economic crisis significantly impacting Cambodia, continued problems in the business environment may force firms to go out of business, and investors may choose to postpone investment or move to more business friendly countries," he said.

The IFC released a second report Monday, this time in conjunction with the Asia Foundation, that ranked Phnom Penh behind all of the country's 23 provinces in terms of the ease of doing business. Kampong Cham province was rated the top area to do business in the Provincial Business Environment Scorecard (PBES), which surveyed business owners across the country.

In an indication that reform could be successful in easing the regulatory burden on business, both Sihanoukville and Siem Reap town moved from near the bottom of the inaugural survey in 2006 into the higher ranks by making significant advances in four areas, including the time and cost of starting a business, property rights, and transparency of regulations.

Veronique Salze-Lozac'h, regional director of economic programs for the Asia Foundation, said it was critical government officials were aware of the problems businesses faced.

"Over the next two months, when PBES results are presented in a number of provinces, entrepreneurs will be able to compare their province with others and engage government on reform," she said.

"When the PBES and the ICA are repeated in a few years, officials and business people will be able to see whether their efforts have been successful."

Siem Reap meeting to discuss aid for trade


Written by Kay Kimsong
Wednesday, 27 May 2009

FINANCE leaders from around the globe are to converge on Siem Reap on Thursday and Friday to discuss aid, trade and the economic meltdown.

The event, co-hosted by the Ministry of Commerce, the Asian Development Bank and the World Trade Organisation, is expected to feature 100 invited participants including Pascal Lamy, the WTO director general; Haruhiko Kuroda, president of ADB; and trade ministers from all ASEAN countries.

The meeting aims to help Asia's least developed countries (LDCs) compete on international markets by evaluating the impact of the economic slowdown on export-led growth strategies, discussing new approaches to infrastructure development and strengthening regional cooperation, according to an ADB press release.

Chan Sophal, president of Cambodia Economic Association, said that wealthy countries should provide more aid aimed at promoting global trade to LDCs like Cambodia.

"With aid for trade, poor nations like Cambodia can have the opportunity to absorb that aid for trade and spur development," said Chan Sophal.

But opposition lawmaker Son Chhay says that Cambodia has gained nothing from being a member of the WTO and is sceptical that helpful ideas will come out of the meeting.

"We joined the WTO, but we gained nothing by becoming a WTO member," he said. "We are allowing other WTO members to invade our market."

He pointed to a trade imbalance with Thailand - Cambodia imports about US$2 billion in goods from its neighbour but only exports $80 million.

"Our market belongs to other countries. Farmers lose their jobs every day.... The conference's concerns are only on paper. It never works in practice with measurable results," he said.

Outcomes from the event will be presented in July at a Geneva Global Aid for Trade Review.

Promesses promises luxury

Photo by: TRACEY SHELTON
Promesses, an upscale lingerie shop, which opened last month, hopes that its seductive wares will find a steady market in the capital.


The Phnom Penh Post
http://www.phnompenhpost.com/

Written by Joel Rozen
Wednesday, 27 May 2009

An upscale boutique, opened last month, hopes its top-shelf line of lingerie will appeal to women looking for something beyond average undergarments

Phnom Penh's fashion elite may have already discovered designer bags and rhinestone belts, but the latest emerging style trend is harder to spot.

Upscale lingerie store Promesses opened in mid-April and word is spreading fast about its shimmery bras and lacy panties. Some say launching the small boutique on Street 282 has meant a wealth of new luxury options for local ladies. For others, it marks a revolution in the way underwear is perceived.

Hung with chandeliers and located beneath a boutique specialising in pret-a-porter, Promesses offers imported undergarments from designer companies like Aubade and Raphaela Magica. The items are pricy; most pieces start at US$50. But according to the store's owner, Cambodian women are ready for an upgrade.

"When you speak to the girls here about what's missing, lingerie comes up almost automatically," said Soreasmey Ke Bin, a Phnom Penh resident who was raised in France. "The quality's low, the design old-fashioned. Many say there are no shops for expats or even locals."

Ultimately, the 32-year-old entrepreneur felt it was time to answer their call. With the help of his Avanti trading company, which he co-founded last January to introduce new products to Cambodians, he started consulting top underwear brands in France and Thailand.

"The quality is better, the cloth is better," he said. "The difference is self-evident."

The problem, though, at least from a business standpoint, was Soreasmey Ke Bin's gender. While he already had experience dealing in whey protein shakes and had invested in both an IT engineering firm and a design studio, nothing could have prepared him for the niche world of bras and panties.

"It's complex," he said, adding that in France the high-end brands housed an overwhelming array of collections, some more risque than others. Higher quality would also mean significantly higher prices than what most locals were used to paying. And sizes, generally targeting the larger European physique, were another matter entirely.

For an accurate assessment of what women wanted, Soreasmey Ke Bin surveyed 200 potential clients: wealthy Cambodians who had experienced luxury labels overseas and expatriates who couldn't find the right fit - or the right privacy - at the market. His new shop stocks sizes "from A to E", he said. Privacy comes in the form of a VIP changing room, furnished in back with comfortable chairs.

Out in the open, though, shopkeepers are not sure the need for pricy garments is quite so widespread. Expensive underwear may be fulfilling for a privileged client base, they say. But most Khmer working girls are still happy with the cheap stuff.

"Women are more educated now and want higher quality," said Kee Naim, whose Thai wares at the Natural Fresh underwear stand in Soriya shopping centre rarely cost more than $10. Rose brand panties from Taiwan cost $5. "Usually, those girls want to be in style."

For Chang Sreytol, a men's shoes vendor in Central Market, however, style can wait. Her underwear need only last a year. "I'm looking for just a normal medium price," she said, glancing over the Calvin Klein panties at Natural Fresh. "Not a lot of us have money, lately."

"Most women come looking for good quality, but it needs to be cheap," said Sop Lien from behind her stand at Central Market. Her bras hail from Vietnam and China. "Earning is difficult."

Soreasmey Ke Bin understands these concerns but maintains that a globalising Phnom Penh will soon need the better bras.

"Cambodian girls are moving really fast," he said. "Ten years ago, you saw only [Toyota] Camrys. Now [Mercedes] Benz. Obviously they're willing to invest in things people can see. So what we are trying to do is convince the middle-class working woman that good lingerie is also an option."

It's what's on the inside that counts

Photo by: ELEANOR AINGE ROY
Two girls put the finishing touches to a shelving unit at a store on Sothearos Boulevard.


Written by Eleanor Ainge Roy
Wednesday, 27 May 2009

Thinking of indulging yourself with a spot of home decorating? Phnom Penh’s plethora of homewares stores offer paper photo frames through to custom-designed-and-built furniture

The furniture industry took a beating two years ago, when the cost of Cambodian timber doubled.

The price hike was further compounded by the pressure of the economic crisis. Since midway through last year, furniture makers in Phnom Penh have reported a 20 to 60 percent loss in business.

But what this means is prices are now coming down across the board, as manufacturers and importers work hard to move stagnating stock.

Below is a list of hard and soft furnishing choices in Phnom Penh to deck out your home.
But keep in mind prices vary greatly, and upmarket furniture stores may inflate the price of a simple piece of locally made wooden furniture.

Shop around, take your time and have fun. There are still some gems out there waiting to be discovered.

Sothearos: a good start

The section of Sothearos Boulevard between the Russian Embassy and Norodom Boulevard is a good place to begin your hunt.

Here you will find a range of options, from upmarket and custom-made furniture to simple, durable rattan.
There are half a dozen rattan furniture shops trailing up to Norodom Boulevard, all offering similar prices and quality. But be sure to bargain, as most prices are negotiable.

IChing Decor
#85, Sothearos Boulevard
www.ichingdecor.com
This stylish store, opened in late 2003 by Belgian architect Stephane Dawant, has earned a reputation for producing high-quality furnishings.

IChing offers ready-made and custom designs, with prototypes on display in their showroom. Everything from desks to beds can be built in their workshops, and a trained team of Cambodian workers will complete a sofa or desk in two to three weeks.
IChing uses high-quality timber, and the workmanship is fine, with attention to detail and finish. Their unique desks and coffee tables rate a special mention, with their interesting yet discreet designs.

Smaller goods such as glasses and cotton linens are imported from Thailand and Vietnam. Director Dawant says there is no production market for such goods in Cambodia.

And the prices? A three-person custom-made couch takes two to three weeks to build and costs US$650. A coffee table is $300, while a wooden double bed without a mattress is $750.

Items such as vases, kitchenware and candleholders can be bought for as little as $1, and storewide discounts are available on selected items through the Coupon Book.

IChing also offers complete interior home design.

Moonlit
99 Sothearos Boulevard
La Deth inherited Moonlit from his parents and opened this branch of the store eight years ago.
He says trade has decreased by 60 percent in the last year, and while timber prices doubled in the last two years, he has only raised the price of his goods a little.

"This is a hard time for the furniture industry, but there is nothing for me to do but wait for change to come," he said.
La Deth described his furniture as of ‘European design' and has a good selection of wooden desks, beds, cabinets, bookshelves and dining room furniture.

While his work is of a high quality, it lacks the flair of IChing's designs. But for standard pieces the prices are more reasonable. A standard desk will set you back around $250, as will a fine, tall chest of drawers. A dining room table and six chairs costs $650.

Moonlit also offers custom design services.

Cambodia Modern Rattan
#11, Sothearos Boulevard
Lip Cheang's large, modern shop has a wide selection of rattan and wicker furniture and household goods.
The staff speak excellent English, and prices are reasonable, with all sofas and chairs coming with cushions included in the price.

Prices have increased in the last year as the shop has found it difficult to secure materials.
Small goods have increased by $1, and larger items such as chairs by $5. Since the economic crisis business has decreased 5 percent, but Mr Lip's daughter says the loss has not been significant.

A wicker, glass-topped coffee table costs $35, while a wicker armchair with cushions is $60. A large wicker bookshelf costs around $75.

NCDP
National Centre of Disabled Persons Retail Outlet Store
3 Norodom Boulevard, on the corner with Street 110.
www.ncdpcam.org
Established in 1995 with the assistance of the Canada British Fund, NCDP works with Cambodians with disabilities to produce a range of small homewares such as lamps, cushions and silks.
Of particular note are the cheap and pretty paper photo frames, priced between $1.30 and $2.50, skillfully carved wooden lamps from $15-$18, and delicate wall hangings from $20-$22.
A few small items from here would brighten up any home, and a made-to-order service is available.

Chez Artisan
42D Street178
Chez Artisan is a crammed, lively little store offering furniture, lamps, home interiors and framing services.
The lamps, priced between $50-$70, are truly unique, and can also be commissioned.

Crafted out of china pots, statues - anything really - the lamps have the merits of an artwork. A range of pretty, china pots, vases and statues can be purchased for as little as $5, although furniture such as bookshelves and chairs is expensive.

Photo by: ELEANOR AINGE ROY , Beyond Interiors offers products for ecologically minded customers.

Beyond Interiors

#14, Street 306
Opened at the end of 2008, Beyond Interiors aims to produce long-wearing, eco-friendly and stylish furniture.

The shop is an interior designer's dream, with eye-catching imported rugs, textured walls and complete mock-ups of the interior of a small apartment, with bed, sofa, dining table, chairs and a coffee table in a range of styles such as Scandinavian, classic or Italian.

The shop has been designed with a nod to Khmer architecture of the '60s and '70s and is an inviting space in which to browse. Managing Director Bronwyn Blue says her shop hasn't been affected by the economic crisis and business has remained steady.

She says Phnom Penh offers a range of furniture options, but there was a hole in market for those shopping for ecologically produced furniture.

"Our products are for ecologically minded clients with an interest in buying products made from plantation-sourced woods that don't skimp on style and versatility," she said in an email.

Much of Beyond Interiors furniture is sleek, and modern, but despite its simplicity, prices are high, as many items are imported.

Some of the woods featured include English oak and Indonesian teak. A coffee table imported from Vietnam is $800, while bookshelves range from $675-$885.

Poverty’s Two-Way Street

The New York Times
http://www.nytimes.com

By DEEPA NARAYAN
Published: May 26, 2009

The world is agog with tales of the “nouveau poor.” The well-to-do are tightening their belts: Wealthy women are reappearing in the same designer dresses, shoppers are shyly pulling coupons from their pockets, and flying commercial is back in style.

But the rich and the middle class are not the only ones losing money. Millions of poor people around the world have been plunged even further into deep poverty. For them this means taking children out of school to help scavenge for food; praying instead of seeing a doctor; selling the last of the gold earrings so that the family can eat for a few more weeks. For the poor, there is nothing “nouveau” about tumbling deeper into poverty.

The common perception about poverty is that we are slowly pulling people out of it. The truth is otherwise: Though the world pulls many millions out of poverty each year, it counteracts those gains by sending millions who were not poor into poverty. We must understand this two-way highway if we genuinely aspire to end poverty. A study we conducted at the World Bank, “Moving Out of Poverty: Success from the Bottom Up,” sought to survey this two-way highway, investigating who escapes poverty, who falls in, and why. Among our diverse findings, two striking truths stood out.

The first is that poor people, contrary to their image in the developed world, are born capitalists in the Horatio Alger mold, more capitalist than the average New Yorker or Londoner. They believe in the power of their own effort — they try and try, and even if they are foiled or cheated, they try again. Though the poor are commonly believed to be fatalistic, our conversations with 60,000 poor people in 15 countries showed this to be patently untrue.

When the world meets the hopeful poor halfway, people rise out of poverty. They open shops, move to big cities to work as cooks or chauffeurs, send their children to learn new skills and languages. They ask little of their governments. They take matters into their own hands.

But as millions rise out of poverty, millions fall in — partly because “free markets” are not free enough, and partly because of the lack of healthcare.

In the recession-battered West, governments are moving to insulate citizens from excessive exposure to markets. But for the poor, being cut off from markets is the problem. In fishing communities in Cambodia, fishermen get lower prices for their fish and are forbidden from fishing where large trawlers go; in the coffee-growing region of Tanzania, cheating in the weighing of coffee beans is so institutionalized that it has a name, Masomba; in West Bengal traders without political connections have no hope.

Unable to access markets, poor people lurk on the fringes, work for low wages, sell in small quantities at low prices, unable to compete, accumulate assets or make tomorrow any different from today. And, because they hover so closely above the poverty line, a sudden shock — typically a death or illness — can wipe out years of modest progress.

The story of Jehangir, one of the thousands of people we interviewed, illustrates the tragic collision of dogged effort against a world of banks and laws that seems to plot against the poor.

He is a chronically poor man in Uttar Pradesh, in northern India. He worked for decades as a laborer on other people’s land, augmenting his earning by selling vegetables. His dream was to own a bicycle, land and a house without a leaking thatched roof.

He managed to get the bicycle. Then the sudden death of both of his parents threw his savings plan off track. He had to borrow for the funeral from a local money lender at an exorbitant interest rate, since banks do not cater to people like him. His wife started working to repay the money lender, as did his two young sons. Pulling a child out of school may be a good way to quickly help repay a loan, but it’s a dubious long-term investment decision in a country where education determines everything.

Jehangir at last saved enough to build a house. But the wall collapsed, breaking his hands and legs. Because there is no reliable system of public clinics, no system of medical or homeowners’ insurance for people like him, Jehangir had to take out another loan for his treatment and another to fix the roof and a third to build a temporary room for his family.

Though he went right back to work, he was paid less than the able-bodied workers. His conclusion after years of trying to make his own way? “Now I am losing my trust,” he said.

Jehangir’s story echoes around the world. Even after years of hard work, poor people have few permanent assets. A shock blows them under, as they borrow what they can from a local money lender who is also the landlord, who happens to run the local shop and who is in local politics as well.

Wealthy countries are clamping down on markets and centralizing government programs. The poor need something quite different: bigger, better access to free markets designed to work for them. They do not need centralized government, but active local government that provides basic services — particularly affordable healthcare — government that helps rather than hinders.

Deepa Narayan is director of the World Bank’s Moving out of Poverty project.

Southeast Asian Politicians Urge ASEAN to Suspend Burma, Consider Sanctions

Handout photo taken on 13 May 2009, provided by Myanmar News Agency shows US Citizen John William Yettaw in Rangoon

Burmese opposition leader Aung San Suu Kyi (File)

http://www.voanews.com
By Daniel Schearf
Bangkok
26 May 2009

A group of Southeast Asian politicians is urging the Association of Southeast Asian Nations to suspend Burma's membership if it refuses to release democracy leader Aung San Suu Kyi. Aung San Suu Kyi testified Tuesday against charges that could put her in prison for five years.

Aung San Suu Kyi said she was innocent when she was called Tuesday to testify in court.

"The Lady," as she is known by her supporters, is on trial for breaking the terms of her house arrest.

The trial has been widely condemned as an excuse to keep the Nobel Peace Prize winner locked up and pressure is growing for her release.

The ASEAN Inter-Parliamentary Myanmar Caucus on Tuesday called for tougher actions against Burma, including suspending its membership in the regional bloc.

Charles Chong, a Singaporean lawmaker and member of the caucus, told journalists in Bangkok that dealing with Burma has bogged down ASEAN, making it harder for them to accomplish anything.

"More and more parliamentarians within ASEAN are beginning to lose their patience with Burma. And, we are calling upon our governments to do more than just expressions of dismay, regret, grave concern and so on, and seriously look at suspending Burma's membership of ASEAN," he said.

Aung San Suu Kyi is expected to be sentenced to from three to five years in prison for allowing an eccentric American man, who snuck into her house, to stay there for two nights without official permission.

She admitted in court Tuesday to giving the man, John Yettaw, temporary shelter but denied breaking the law.

Burma's military-run government has kept the democracy icon under house arrest for 13 of the last 19 years.

The detention has long been criticized and was set to expire on Wednesday.

But a Burmese government spokesman on Tuesday told journalists and diplomats the house arrest would not expire for another six months.

Also on Tuesday, Burma rights campaigners say they have collected more than 600,000 signatures from 220 countries calling for the United Nations to get tough on Burma.

Khin Ohmar is with Forum for Democracy in Burma.

"The voices are calling Mr. Ban Ki-moon [is] that he must accept nothing, nothing less than the immediate and unconditional release of Daw Aung San Suu Kyi and all political prisoners including all ethnic nationalities' leaders," said Khin Ohmar, who is with Forum for Democracy in Burma.

Aung San Suu Kyi's National League for Democracy party won Burma's last elections in 1990 but was never allowed to take power.

The Burmese military then placed the NLD leader under house arrest and has only let her out on rare occasions.

A new election is scheduled for 2010 as part of Burma's "roadmap to democracy" but is thought to be a sham to keep the military in power.

The ASEAN legislators say ASEAN has failed to move Burma and may need to consider targeted sanctions to pressure them for democratic change.

The group includes lawmakers from ASEAN members Cambodia, Indonesia, Malaysia, the Philippines, Singapore, and Thailand.

Burma - Trial: Aung San Suu Kyi set to testify in court


france24english

IN THE FIELD: Opposition leader and Nobel laureate Aung San Suu Kyi testified at her trial Tuesday, saying that she did not violate her house arrest when a man swam to her house. Suu Kyi faces up to five years in jail if convicted of the charges.

From the Cambodia Mission Team

Pictured L to R are Scott Mehren, Taylor McQuilliams, Troy Dean, Josh Sway, Samantha Jessup, Elizabeth Bernados, Jason LaFarge, Nancy Trifilo, Kaleasha Johnson, Joni Johnson, Ciandra Kouklis, Glen Gibson


5/26/09

By smhaut

This is the first in a series of reports from a Cambodia Mission Team working over in Battambang, Cambodia. The team consists of students from William Jessup University as well as three members of One Life Church in Lincoln.

"After 24 hours of travel – starting in Rocklin and ending in Battambang, Cambodia – not counting layovers, our team has settled into life and ministry in Cambodia. Even though our afternoon activities were rained out today we have already visited two local churches in the Battambang area where we shared testimonies, sang, prayed, made some crafts, and just had fun and fellowship with brothers and sisters in Christ. Their stories are inspiring to us and we hope we have been an encouragement to them.

After church on Sunday we climbed 358 steps to visit the ruins of a Buddhist temple on top of a local mountain. We were glad to learn more about the beliefs of the Cambodian people but we were also reminded of the hopeless situation of those many people who have yet to put their trust in Jesus Christ.

A great deal of time has also been spent at the Hope Bible Institute over the last three days. There we have played with (simple games, soccer, volleyball, etc), prayed with, and talked with (as much as we can with the language barrier) the students and leaders at the Institute. Yesterday we witnessed more than 50 people be baptized in the pond behind the Institute. Today a Leadership Training Seminar started with over 300 people attending. It is exciting to see the growth of the church in a place that was in such a desperate situation just 25 years ago (Remember the Killing Fields). We have met many who survived that horrible time – from all sides of the conflict. It is wonderful to see how God has brought them together in Jesus Christ. Now they serve him side by side!

Over the next three days we will continue to spend time with the people attending the seminar. Glen and Troy will be teaching in the afternoon sessions. We will also visit more churches seeking to encourage and learn from them."

Fighting the Vietnamese "crocodiles"


Wednesday, the 26th of May 2009
Posted by Elena in ECCC, Duch

Journalist and expert witness Nayan Chanda testified at the tribunal Monday and part of Tuesday about armed conflict between Cambodia and Vietnam during the period of Democratic Kampuchea. Throughout the late 1970s, the Khmer Rouge waged repeated "nibbling" attacks across the border into Vietnam, often massacring Vietnamese civilians, he told the court.

While those associated with Vietnam were purged internally, Khmer Rouge leaders called on their people to kill all 50 million Vietnamese. In the end, this virulent hatred led to the regime's downfall.

Convinced that the Khmer Rouge were pawns of the Chinese, the Soviet-backed Vietnamese eventually decided to hit back hard, Chanda said. They drove the Khmer Rouge into the jungle and took control of the country for a decade.

Yet it was the Vietnamese Communists who had initially trained and equipped Cambodia's revolutionary fighters. How had such an enormous schism between the two Communist movements come about?

As Chanda explained, Vietnam and Cambodia have "had a pretty tormented relationship." Cambodian folk tales even describe the cruelty of the Vietnamese to Khmers. Yet there have also been numerous periods of collaboration between the two peoples.

But recurrent tensions, prompted by fears of Vietnamese "expansionism" and an undeniable strain of paranoia, undermined pre-Democratic Kampuchea Communist cooperation. Cambodians saw their eastern neighbors as "swallowers of other countries' territories."

This was compounded by the fact that, according to Chanda, the Khmer Rouge took an "openly racist" stance toward the Vietnamese.

"The Black Paper," an anti-Vietnamese manifesto created by DK in 1978, describes "the Vietnamese nature as aggressive," Chanda said. While it is "a mixture of fact and fantasy" that allegedly chronicles the history of Cambodian/Vietnamese relations, the document can offer insight into Khmer Rouge ideology, he added.


The issue of anti-Vietnamese racism in Cambodia has intrigued me for some time and, unfortunately, I think many of the same stereotypes (in a less extreme form) exist today. So I tried to find a copy of The Black Paper online.

I was not successful in this endeavor, and was only able to find other articles that quoted from The Black Paper. I've included several interesting Black Paper excerpts below that I pulled from the essay "The Ingratitude of the Crocodiles: the 1978 Cambodian Black Paper," published by the Bulletin of Concerned Asian Scholars in 1980. (It should be noted that one of the essay's authors, Serge Thion, has come under fire for polarizing comments he has made about the Holocaust.)

* In The Black Paper, the Vietnamese are described as even more ungrateful than crocodiles.

* The paper refers to the annexationist nature of Vietnam, which has never stopped trying to devour Cambodia.

* Yuon is the name given by Kampuchea's people to the Vietnamese since the epoch of Angkor and it means "savage." The words "Vietnam" and "Vietnamese" are very recent and not often used by Kampuchea's people. (The essay goes on to discredit this explanation, saying that the word "Yuon" exists in both Thai and Cham. Interestingly, "Comrade Duch" still refers to Vietnamese as "Yuon" when he speaks at the tribunal.)

* As they had made the revolution, the Vietnamese enjoyed some prestige in Southeast Asia. At that time, the international community gave them aid and support. Europe supported them. China helped and supported them. The Vietnamese have taken advantage of this support and used it as political support in order to carry out their scheme of expansion and annexation. They wanted to dominate all of "Indochina" . . . They want to take possession of Kampuchea in order to use her as a springboard for their expansion in Southeast Asia . . ."

* The Vietnamese even wanted to teach Kampuchea how to cook rice!

Following Chanda, scholar Craig Etcheson once again began testifying Tuesday afternoon, but was interrupted by defense objections. He may continue his testimony tomorrow.

Witness Talks about Armed Conflict between Cambodia and Vietnam – Tuesday, 26.5.2009

Posted on 27 May 2009

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

“Phnom Penh: Mr. Nayan Chanda, a former editor of the Far Eastern Economic Review based in Hong Kong and also a collector of information during the war in Vietnam before and after the Khmer Rouge regime, appeared to testify in the case to hear Mr. Kaing Kek Eav, alias Duch.

“Mr. Nayan Chanda is the second foreign witness after Mr. Craig Etcheson to testify in the Khmer Rouge court on the implementation of the policy of the Cambodian Communist Party at the S-21 Center, and of armed conflicts during the Khmer Rouge regime.

“In front of the Khmer Rouge criminal court on Monday, 25 May 2009, Mr. Nayan Chanda – 63, Indian – mentioned the book titled Brother Enemy – the War after the War. The book was written by Mr. Nayan Chanda during the 1980s detailing the relations between Vietnam and the Khmer Rouge, when Vietnam became the enemy of the Khmer Rouge. [Brother Enemy - the War after the War. Collier Books, Macmillan Publishing Company, New York, 1986, 480 pages.]


“Mr. Nayan Chanda, now Senior Research Scholar of the Yale Center for the Study of Globalization, in the United States, appeared at the Khmer Rouge criminal court to explain the armed conflict between the Khmer Rouge and Vietnamese forces to the chamber.

“Sitting in front of the judges in the hearing room, Mr. Nayan Chanda said that Vietnamese troops and Khmer Rouge troops closely cooperated and had good relations after the coup to oust Samdech Preah Norodom Sihanouk in 1970. Vietnam helped the Khmer Rouge to overthrow the Lon Nol regime in 1975. But the good relations between Vietnam and the Khmer Rouge began to break down when the Khmer Rouge came to power on 17 April 1975.

“Mr. Nayan Chanda, who had interviewed high ranking leaders of the Khmer Rouge and of Vietnam, went on to say that armed conflict between the Khmer Rouge and Vietnamese troops became serious in late 1977 and early 1978. The first armed clash occurred along the border where troops of the Khmer Rouge and of Vietnam attacked each other.

“Mr. Nayan Chanda noted that in May 1977, the Khmer Rouge decided to carry the fight into Vietnam rather than to withstand the Vietnamese troops’ attacks. Vietnam was considered by the Khmer Rouge as having the intention to invade Cambodia to enlarge its country, according to an Indochina Federation policy. At that time, Khmer Rouge leaders ordered the eastern region to carry the fight into Vietnam, and Mr. Hun Sen (the current Cambodian prime minister), was at that time a member of the Khmer Rouge troops, and he was assigned to be responsible for that plan. However, Prime Minister Samdech Hun Sen later told Mr. Steve Heder (a foreign journalist) that he (Samdech Hun Sen) did not follow his superiors’ order to attack Vietnam, and he then escaped into the forest.

“Mr. Nayan Chanda continued to say that at different border regions, the Khmer Rouge launched attacks on some Vietnamese villages along the Cambodian border.

“The diplomatic relations between Cambodia and Vietnam became weaker and were later cut off, in late 1977, after Vietnam opened a large-scale attack on Cambodia in October 1977. Vietnam attacked Cambodia along the border by air, and sent 50 tanks more than 10 km into Cambodian territory in Svay Rieng in January 1978 to attack Khmer Rouge troops that were supported by China.

“The armed conflict between the Khmer Rouge and Vietnam was mentioned in an US report, and it was published by many internationally well-known newspapers.

“Regarding the armed conflict between the Khmer Rouge and Vietnamese troops during the Khmer Rouge regime from 1975 to 1979, Mr. Kaing Kek Eav, alias Duch, who was sitting and listening to the witness, said that the conflict resulted from a dispute between the Cambodian Communist Party and the Vietnamese Communist Party, but he has little knowledge about that.

“But Duch claimed, ‘Regarding armed conflicts between the Khmer Rouge and the Vietnamese at that time, I knew only two places. One place was the Plae Santouch region at the Cambodian-Vietnamese border at the far end of Mondolkiri, and the other place was at the sea border.’

“Anyway, Kaing Kek Eav claimed confidently that Pol Pot struggled to protect the country and was clever in defending its integrity, and he was able to maintain the territory of Cambodia. Pol Pot did not allow the Indochina plan to be put into practice on Cambodian territory. But in 1976, the Vietnamese [communist party] president Le Duan [Lê Duẩn] still declared that Vietnam is the father of an Indochina Federation. The history shows that the Indochina Federation policy of Vietnam intended that the neighboring countries, especially Cambodia, should be under the control of Vietnam.

“Mr. Nayan Chanda, a former editor of the Far Eastern Economic Review, will appear again at the chamber hearing of Duch on Tuesday, 26 May 2009, to finish testifying about the facts of the armed conflict between Khmer Rouge and Vietnamese troops.”

Rasmei Kampuchea, Vol.17, #4903, 26.5.2009
Newspapers Appearing on the Newsstand:
Tuesday, 26 May 2009

EU and Southeast Asian nations seek closer ties

The ASEAN-EU ministerial meeting is held every 18 months and rotates between the two regions' countries.

Deutsche Welle
26.05.2009

A high-level meeting of European and Southeast Asian countries kicks off in Cambodia on Wednesday. Both regions are seeking to strengthen cooperation and will spend two days discussing the partnership's future direction.

A bilateral free trade agreement (FTA) between the European Union and the Association of Southeast Asian Nations (ASEAN) is a top priority at the meeting in the Cambodian capital Phnom Penh.

The two sides launched negotiations for a FTA in 2007. However, talks were halted earlier this month.

"Negotiations haven't gone on well and there's a pause now for each side to reflect," said Paul Lim from the European Institute for Asian Studies in Brussels.

"I think this EU-ASEAN free trade agreement is one of the biggest challenges in the relationship," Lim said.

Enrique Valerdi Rodriguez from the Elcano Royal Institute in Madrid said such trade agreements had significant implications for developing countries.

"They certainly have potential to provide them with new trading opportunities, lock in reform and be powerful tools for economic growth," Rodriguez said in a paper published earlier this year.

Southeast Asian nations feature various degrees of development


"However, liberalization between countries with vastly different levels of development, if it is too fast and too deep, could be very damaging for the weakest part," he said.

According to Rodriguez, protection measures such as tariffs, subsidies or state intervention could protect developing nations' infant industries until they are strong enough to compete internationally.

Yet ASEAN nations are interested in building stronger economic ties to the European Union, Lim said.

"In view of the financial crisis, they are keen for more financial cooperation," Lim said. "All of the economies depend on exports to the US and Europe. Economic interest of ASEAN to the EU has always been there."

But security matters would also be on the agenda.

"Since September 11, things have changed and this has put security on the agenda," Lim said. "This is in both sides' interest."

Burma also an issue

The EU-ASEAN ministerial meeting comes on the heels of the Asia-Europe Meeting (ASEM) Foreign Ministers' Conference in Hanoi, Vietnam, on Monday and Tuesday.

Participating delegations had agreed to focus the Hanoi meeting on political issues and concentrate more on economic, security and environment topics in Cambodia.
Protestors are calling for Suu Kyi's release

However, the trial of Burmese pro-democracy leader and Nobel Peace Prize winner Aung San Suu Kyi will also be an issue in Phnom Penh, said a spokeswoman from the German foreign ministry.

"Human rights issues in Burma are not explicitly on the agenda, but will most certainly be addressed," she said. Burma is one of the members of ASEAN, in addition to Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam.

According to Lim, the views on Burma have become a common factor for both sides.

"There has been a lot of progress in relations," Lim said. "Now with Burma, they're both on the same side. In the past, it was an obstacle to relations."

Lim said talks between the two sides had developed significantly since their initial dialogue in the early 1970s.

"It took a long time for the EU to tell ASEAN that economic dialogue isn't enough, we have to have a critical dialogue as well," Lim said.

In addition, ASEAN nations wanted more attention from the EU, he said.

"At this point in time, EU-China relations seem to overshadow all other relations the EU has with Asia," Lim said. Yet ASEAN countries do not want to be left out.

ASEM criticizes Burmese government

In a statement issued at the conclusion of the ASEM meeting in Vietnam, the ministers urged Burma to free detainees and lift political restrictions. Sweden's foreign minister Carl Bildt said the wording had gone beyond anything previously endorsed by China or Vietnam.

"I think it's a major step forward," Bildt said. "It's a substantial increase on the political pressure on the regime in Burma."

Jan Kohout, the foreign minister of the Czech Republic, which holds the rotating EU presidency, said in his closing remarks that Suu Kyi was an "indispensible partner in the dialogue leading to national reconciliation."

"She should be released immediately and the Burmese government should engage in an inclusive dialogue with all relevant political and ethnic groups," Kohout said.

A separate statement issued at the conclusion of the ASEM meeting also addressed the underground nuclear test conducted by North Korea on Monday. European and Asian foreign ministers said they "condemned" the action.

It described the test as a "clear violation" of six-party agreements and relevant United Nations Security Council resolutions, calling on Pyongyang to "immediately return" to six-party talks with regional powers.

Author: Sabina Casagrande
Editor: Susan Houlton

In Slump, Officials Look to Small Businesses

http://www.voanews.com



By Chun Sakada, VOA Khmer
Original report from Phnom Penh
26 May 2009

With the global downturn slowing large-scale investment in Cambodia, commerce officials are hoping that small and medium enterprises can boost growth.

“SMEs play an important role in enhancing economic development and creating sustainable employment and income,” Commerce Minister Cham Prasidh told a seminar Tuesday. However, he said, about 80 percent of these enterprises never get loans from banks, he said.

Cambodia’s economy is expected to contract between half a percent and a full point, a drastic fall from the near double-digit growth it has experienced in recent years.

US and European demand for its exported garments has plummeted, while tourism numbers have dropped, but agriculture remains the top employer. Cambodia set up a new policy to help smaller businesses, especially in agriculture, pull the country along.

“This will include a new facility to provide loans to SMEs in agriculture and agribusiness to be launched tentatively in fall, 2009,” the government said in a joint statement with UNDP and the International Trade Center.

“Cambodian SMEs are suffering from a shortage of credit, coupled with relatively high interest rates applied by banks to small businesses, resulting in, often, a lack of sufficient working capital for the enterprises,” Cham Prasidh said. “Access to finance is one of the major impediments in Cambodia to producers and exporters of commodities.”

National Bank Director-General Tay Nay Im said local and international partners were giving training to smaller enterprises “by all means” to help produce “more reliable financial statements and applicable business plans” to help assess the risks of their businesses.

“This last task is very challenging and complicated and time consuming,” she said. “We need a lot of effort. By doing this, the obstacle to the small and medium enterprises in getting access to finance has been removed.”

The International Trade Center has negotiated with commercial banks to provide small loans, Roger Megelas, the center’s senior adviser for small and medium enterprises, told reporters Tuesday.

“We reached two commercial banks which will begin to provide loans in October 2009,” he said. “We will provide loans to 100 small and medium enterprises.”

Duch Blames High Death Toll on Vietnam Conflict

By Pich Samnang, VOA Khmer
Original report from Phnom Penh
26 May 2009

In its nearly four years of rule, the Khmer Rouge saw the deaths of up to 2 million people, but the regime’s chief prison administrator, Duch, told tribunal judges Tuesday many of those were caused by fighting with Vietnam.

Duch’s atrocity crimes trial, which began March 30, has begun to explore the complicated relationship between the Khmer Rouge communist guerrillas and their original supporters, the Vietnamese communists.

The two sides eventually became rivals, and it was fear of Vietnamese infiltration that in part unraveled the Khmer Rouge.

Those accused of spying for the Vietnamese were sent to a prison administered by Duch, where they were tortured into confession and sent to be executed on the outskirts of the capital.

Prosecutors at the UN-backed tribunal say at least 12,380 people died under Duch’s supervision, and the former math teacher, whose real name is Kaing Kek Iev, is facing charges of war crimes, crimes against humanity, torture and murder.

In his testimony Tuesday, Duch outlined a chronic ideological conflict between the communist party of Cambodia, or the Khmer Rouge, and the Vietnamese.

Pol Pot refused to follow the leader of the Vietnamese communists, Le Yon, who wanted to unite former Indochinese countries into a federation, Duch said, which led to armed conflict between the two.

Historian Nayan Chanda told the court Tuesday that the Vietnamese communists had helped the Khmer Rouge until the guerrillas had defeated the government of Gen. Lon Nol.

Pol Pot wanted to be free from control of the Vietnamese, Duch said. “That’s why bloody armed conflict broke out, killing so many people.”

On Trial, Duch Now More Defensive: Observer

By Men Kimseng, VOA Khmer
Original report from Washington
26 May 2009

As his tribunal hearing continues, Duch has become more defensive than he was at the outset, a leading rights advocate and tribunal observer said Monday.

In the beginning of his trial at the UN-backed court, Duch was apologetic, but in recent days, he has begun to defend himself as a victim of the regime’s leadership, said Thun Saray, head of the rights group Adhoc.

“In the beginning, Duch seemed to honestly admit his big mistakes, but later he has tended to be defensive when it came to torturing and killings, [with him] saying he just followed an order from the top,” Thun Saray said, as a guest on “Hello VOA.”

Duch, 66, whose real name is Kaing Kek Iev, is the first to face an atrocity crimes trial at the tribunal. He has admitted to ordering torture and execution of thousands of Cambodians, but he has not admitted to undertaking acts by his own hand.

With his trial underway, the tribunal has faced continued allegations of corruption and mismanagement, but Thun Saray said the tribunal was operating at international standards.

“There is different way from Duch’s trial compared to those of Cambodian local court hearings,” he said. “The tribunal can be a good example for our judicial reform.”

However, callers from Siem Reap and Banteay Meanchey provinces expressed disbelief that the trial could bring real benefit to Cambodia with its limited scope and only five former leaders in detention.

Some said that countries involved in the wars that brought the Khmer Rouge to power should be indicted.

“When the Khmer Rouge forces were fighting the US-backed Lon Nol regime, I saw Vietnamese troops fighting alongside the Khmer Rouge soldiers until their victory and the start of the killings,” said one caller from Banteay Meanchey, named Thany. “I am sorry that they are now not indicted.”

View of Unfairness Remains as Courts Reform

By Men Kimseng, VOA Khmer
Washington
26 May 2009

The government is pursuing a set of goals to improve the protection of personal rights and freedoms and to modernize its justice system, but there is lingering mistrust among the public the courts can actually deliver fair results.

Officials say they are trying to update the country’s legal framework, strengthen judicial services, and provide alternative dispute resolution.

“Our activities and strategies are very broad,” Suy Mong Leang, secretary-general of the General Secretariat for the Council of Legal and Judicial Reform, told VOA Khmer by phone. “This means we cannot see the results immediately. Nowadays, we try our best to do as much as we can, based on what we have planned. There is a lot. We have 97 activities in total, so we have to do this within short and long terms. Until now we have not done 100 percent.”

Despite these efforts, the courts are seen as a tool used by the rich and powerful against the poor and weak. This is obvious in many land disputes—contentious issues in Cambodia that are often resolved in courts that seem to favor those with money and influence.

“Today, the justice system is one of injustice,” Yim Sovann, a lawmaker for the opposition Sam Rainsy Party, told VOA Khmer. “”We have noticed that if it is so, it will be a major impediment in our society.”

Court officials must operate in a corrupt system created by the ruling Cambodian People’s Party, he said; otherwise they become victims themselves.

Even the prime minister, Hun Sen, recently looked to the courts to resolve an essentially political dispute with SRP parliamentarian Mu Sochua. Each side accused to other of defamation. Mu Sochua claimed remarks made by the premier during the 2008 national election campaign were degrading; Hun Sen said a press conference in which she announced her case was defaming.

While some say the settling of such difference through lawsuits in the court, instead of violence in the streets, is a positive step, others disagree.

“Opposition parties don’t trust the courts to find justice for them, but they have no choice,” said Kem Sokha, president of the minority opposition, the Human Rights Party. “If someone brings them to court they have to go, in order to show to the public that we use this court. But we want the court to reconsider and correct itself.”

Court judges and prosecutors at every level are members of the ruling party, he said, and this interferes with their work, especially in high-profile cases.

However, Mong Mony Chakriya, a Supreme Court judge who worked for years in Phnom Penh Municipal Court, refuted the allegation.

“From my experience, since I began my work, I never received any political pressure,” he said. “I have never received anything.”

The Supreme Council of Magistracy has a role to maintain independence in the courts and to issue internal regulations for judges. The nine-member council is headed by the king, but seven other members are in the CPP.

Opposition members are skeptical of the council’s ability to punish judges who are not impartial.

Ouk Vithun, a member of the council and former Minister of Justice, said the council does not function based on political quotas, as other institutions do, but focuses on technical work.

“So far, close to 200 judges have been disciplined,” he said. “We have disciplined many judges. We have sacked some. Some have been removed, and some were moved to other places. We have done this for many years.”

Cambodia Prepares to Fight Maritime Pirates

By Heng Reaksmey, VOA Khmer
Original report from Phnom Penh
26 May 2009

Prime Minister Hun Sen on Tuesday announced the need to create a national plan for combating sea piracy within the next three months, urging a working group to quickly come up with a draft.

Cambodia, which has begun exploration for offshore oil, shares maritime borders with traditional military rivals Thailand and Vietnam.

The Chinese military recently donated 20 ships to the navy, which is currently incapable of dealing with the threat of piracy, officials said. In 2005, China provided six patrol boats to Cambodia and has provided hundreds of millions of dollars in grants and loans in recent years.

Fishermen often complain the country’s sea borders are breeched by commercial vessels from the neighboring countries.

Hun Sen said in a speech Tuesday Cambodia had small maritime boundaries that were not plagued by piracy in the way the coast of Somalia is, but he said such problems should be prevented in advance.

A “sea security” team would have three months to submit a plan for a “national mechanism” for maritime security to the Council of Ministers for approval, Hun Sen said.

He urged the US and Australia to provide modern equipment to the navy to prevent acts of piracy.

Opposition lawmaker Son Chhay said he welcomed improved maritime security, but he said the ruling government should concentrate on public and national security as well.

Khmer Rouge defendant: Pol Pot a 'murderer'

World AP
http://www.miamiherald.com

Posted on Tuesday, 05.26.09
The Associated Press

PHNOM PENH, Cambodia -- The former chief jailer for Cambodia's Khmer Rouge blamed the group's late leader Pol Pot for its murderous policies as he faced a tribunal Tuesday charged with crimes against humanity.

Kaing Guek Eav, alias Duch, commanded Phnom Penh's notorious S-21 prison, where as many as 16,000 men, women and children are believed to have been tortured before being sent to their deaths.

Duch, 66, is being tried by a U.N.-assisted genocide tribunal for crimes against humanity, war crimes, murder and torture. An estimated 1.7 million Cambodians died under the 1975-79 communist Khmer Rouge regime from forced labor, starvation, medical neglect and executions.

"Pol Pot was a murderer. He was the greatest criminal father of Cambodia," Duch told the tribunal. "I did not think of Pol Pot as a patriot, he had blood on his hands."

Duch (pronounced Doik) said he was forced to take the job of overseeing the prison because of Pol Pot, but acknowledged he was still responsible for his actions as commandant.

Recent testimony in the trial has focused on fighting between Cambodia and Vietnam, which finally invaded in late 1978 to topple the Khmer Rouge regime. Nayan Chanda, a journalist who wrote about the fighting in his book "Brother Enemy," is testifying before the tribunal this week.

Cambodians have traditionally considered their bigger neighbor Vietnam an avaricious enemy, and having communist regimes in common failed to temper that xenophobic stand among the Khmer Rouge.

The war crimes charge stems from that conflict. Vietnamese prisoners of war were among the people held and tortured at Duch's prison.

Duch said the dispute between Pol Pot and Vietnam's then-communist party boss Le Duan was a "life and death" conflict. He said like many senior Khmer Rouge, Pol Pot resented Vietnam's claims to be the leader of the communist movement in Indochina, covering the former French colonies of Vietnam, Cambodia and Laos.

Pol Pot's attitude led to war and purges costing the lives of more than 1 million people, Duch said.

Duch is the first senior Khmer Rouge figure to face trial, and the only one to acknowledge responsibility for his actions. Senior leaders Khieu Samphan, Nuon Chea, Ieng Sary and Ieng Sary's wife Ieng Thirith are all detained and likely to face trial in the next year or two.

Khmer Rouge’s killing fields revisited

Visitors at the Toul Sleng Genocide Museum
MorungExpress
Neichu D. Angami

After years of tussle between the Cambodian Government and the International Community led by the United Nations over who should control the Tribunal Court for the Khmer Rouge trial, the UN finally gave the go-ahead for the Extraordinary Chambers in the Courts of Cambodia (ECCC), in 2005. ECCC is the name given to the joint tribunal. The first person who stood the charge was none other than the chief torturer, famously known as Duch, who was convicted with war crimes and crimes against humanity in March of this year. He is one among the top five infirm Khmer Rouge cadres facing various charges. The verdict of the trial is expected later this year. These cadres under the leadership of Pol Pot are responsible for the death of over 2 million Cambodians between 1975 to 1979.

During the time when I lived and worked in Cambodia, 1997-98, I had great difficulty visiting the torture museum known as Toul Sleng and the famous killing fields. My own closest colleague then, Phana, had lost all her three sons, husband, parents and siblings to the regime and would not bring herself to even discussing the horror of those days, let alone visit the places where it all happened. However, on the eve of my departure after one and half year stay in the country, I felt a strong urge to visit the killing fields not so much to see another genocide memorial museum but more so for the need to embrace the suffering and pain of the people I so very much grew to love and respect. That visit became a pilgrimage for me. Since then, I have been to Cambodia for short visits a few times and I make it a point to return to these places. Last week I made another short visit to the country, just to take a break from work in Myanmar, visit friends and do some touristy things. My friend and I visited the killing fields again. And I felt a difference this time.

Although I am acutely aware of the limitations and the lengthy processes of such a trial, I for the first time, felt that this process may be helping the Cambodians to talk about what happened during the Khmer Rouge regime. I saw young Cambodians visiting the sites, something I have never seen before.

We do not know yet how this ongoing trial will affect the Cambodians. We do know that survivors and civic bodies can file motions through their lawyers and will be allowed to ask questions. Some survivors hope the trials will bring an end to their grief and will lead the country to an era of peace. Most importantly, many hope that the trial will educate the young people about an era they know so little about.

But there has been a set back – a very sad set-back, indeed. Cambodia’s prosecutor opposed a bid to go after more suspects citing the need for national reconciliation. Many critics are aware that there is a political move to stop the court from digging too deep for fear of implicating former Khmer Rouge figures who are active in the government. Another limitation of the court is that it can only try individuals for crimes committed in Cambodia between April 17, 1975 to January 6, 1979 and cannot try countries or organizations.

There is always something new to learn when visiting Cambodia. We were invited to dinner by a former colleague and as we were sharing about our day’s tour of the city and visit to the killing fields, he said, “Oh, you know what?, we found our father after 30 years”. I was stunned. He had lost his mother and brother during the Khmer Rouge regime. He survived with few other siblings. His fathers’ whereabouts was never known as he left the country for business purposes just before the Khmer Rouge took over and they never saw him again. They assumed that their father may have been caught and killed somewhere. However, when the surviving children did return to Phnom Penh after the war, they tried to seek information about their father but to no avail.

Their father escaped the regime and has been coming back to Cambodia for many years believing that at least some of his children must be alive. Last year, through an unexpected encounter with someone who suspected that there could be a relation between the Cambodian man he know in Macau and the guy he met in Phnom Penh, connected them, and the two realized they were father and son separated for over 30 years. ‘I have always written in my bio-data that my father was deceased ’, ‘can you believe it?’ he said. I could see a spark in his eyes. I can only marvel…

‘What do you think of the trial?’ We asked him. ‘Oh I don’t believe it’. ‘It’s a waste of money. I am deeply hurt and I am still bitter. I have had a very difficult life. I don’t believe I will see justice in my life time’. For the sake of this man and millions others who survived but are still bleeding, the world family must seek justice in Cambodia. Can there be reconciliation or lasting peace without justice? Can people heal without being acknowledged of their pain and suffering?

As Walter S. Landor reminds, ‘delay of justice is injustice’.

Cambodia’s Scavengers Face Eviction

A number of children in Phnom Penh are kept out of school to earn an average of $10 a month from finding and selling garbage that can be recycled. (Photo: Tang Chhin Sothy, AFP)



Jakarta Globe
http://www.thejakartaglobe.com

May 26, 2009

Scavenging for bits of plastic, metal and glass that earn them an average of $10 a month, the children of Phnom Penh’s municipal garbage dump are among Cambodia’s poorest.

Hundreds of families live on and around the 40.5-hectare site, making their meager living from the materials they collect on the steaming heap of garbage, replenished daily with 900 metric tons of the capital’s refuse.

“We don’t go to school,” said 13-year-old Mek. “I’d like to but I need to pick the litter and earn money. I have nine siblings and they all work the same job as me.”

Dump trucks rumble in and out of the Stung Meanchey landfill site throughout the day, while the toxic waste that covers sink holes burns in the sun.

“I really worry about the children working on the dump especially because of the garbage trucks that sometimes hit the children, because it’s hard to see them up there,” said 26-year-old father-of-two Chan Samon.

His fears are not unfounded — in February a 16-year-old girl was killed when a bin fell on her head. There have been numerous victims like her since the site opened more than 45 years ago.

Chan Samon said he earned a pittance selling mostly bottles and cans to Vietnamese buyers. Middlemen come to nine storage depots at the dump’s entrance to buy materials, before selling them on to recycling companies for profit.

One kilogram of plastic fetches 10 cents, while one kilogram of iron or a glass bottle goes for 2.5 cents.

But these slim pickings are all these families have. Many of them arrived in Phnom Penh from the rural provinces in the hope of finding better work, only to discover their only option was to join those foraging for garbage.

Now Cambodia’s authorities are closing down the site and moving the dump several miles outside the capital.

None of the residents are clear who is evicting them, only that they have been told to expect to move at any time.

“I heard something about the dump moving but I don’t know what’s going to happen,” said Mek, who has worked at the site since he was 3 years old.

The move has been discussed locally since 2003, residents said, but a recent letter sent out by municipal authorities to all Phnom Penh residents confirmed the closure would take place in the “second quarter” of the year.

It said garbage collection prices would need to rise because of the move, which it said was necessary because of the “environmental impact” of the site, citing the noise, smell, smoke and poor underground water quality.

Until the proposed eviction a few lucky children had escaped the grimy work, thanks to about a dozen charities set up around the landfill site.

The organizations pay parents for lost income while they provide their offspring with schooling, clothes, food and a clean place to sleep.

“When I was up on the dump I met [charity outreach worker] Theary and he was interested in helping me and he brought me here,” said 10-year-old Srey Neat, one of 96 children being looked after by Theary, who goes by only one name, and the charity he works for, A New Day Cambodia.

The center pays parents $10 a month to keep their children away from the scavenging work.

But with the dump’s closure, that helping hand may not be able to stretch far enough if the dump dwellers move further afield.

“We have some concern about whether some of the parents will need to move away and would like to take their children with them,” said the center’s director Annette Jensen.

The landfill site is expected to be rebuilt next to Cambodia’s infamous Killing Fields, where thousands of people were killed and buried by the communist Khmer Rouge regime during its 1975-79 rule.

Chan Samon said he would have no choice but to take his wife and two children and move over to the new site.

“If the dump moves we will have to move with it. I have no choice because I don’t have any other job,” he said.

Agence France-Presse