IMF: Cambodia Cannot Avoid the Consequences of the Global Economic Crisis! – Saturday, 14.3.2009

Posted on 16 March 2009. Filed under: Week 603 | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Mirror, Vol. 13, No. 603

Apologies for the delays in publishing – due to my international travel. I try to catch up as soon as possible.

Norbert Klein

Note:

Apologies for the rough language – it is the policy of The Mirror to provide readers of the English translations a glimpse at the sometimes rough world of Khmer journalism as it is – as always, without endorsing opinions expressed, nor being able to verify the veracity of original statements.

“A representative of the International Monetary Fund, Mr. John Nelmes [IMF Resident Representative in Cambodia], had predicted that Cambodia would encounter the consequences of the global economic crisis, and it is necessary to be prepared in advance.

“However, Prime Minister Hun Sen, who has no economic skills, became angry and shouted that the Cambodian economy cannot decline as predicted by this person or by that person.

“It should be remembered that the IMF had warned recently, ‘Cambodia is heading toward an economic downturn and the GDP will decline to a growth rate of only 0.5% this year, after there was rigid growth during one whole decade.’

“Moreover, Mr. John Nelmes emphasized again on Thursday [12 March 2009], ‘The Cambodian economy is in a negative status, such instability happens in the context of a bleak global economic atmosphere. We are talking about a period of dramatic decline in economic activities. So far, what we have seen is that the depth of the downturn is worse than expected.’

“Mr. John Nelmes added, ‘Any hope for next year’s economic growth in Cambodia is not clear, because we foresee only 3% growth for 2010, but it might change.’

“Mr. Nelmes went on to say, ‘The export data of some countries are terrible, and the US retail sellers will have negative growth rates this year. This is not a good omen for garment exports.’

“Mr. Nelmes continued to say that also the high inflation in 2008, and the rising price of the dollar make Cambodia to become a more expensive goal for tourism.

“He predicted that tourism, which had an annual growth rate of nearly 20% during three or four years, decreased to around only 5% in 2008, and might also encounter negative growth rates in 2009. The selling of cars and of motorbikes dropped now by 50%, [for cars] and it had been down by 20% at the end of 2008, compared to the twelve months of the previous year.

“The executive director of the ANZ Royal Bank, Mr. Stephen Higgins, said that Cambodia needs cheaper electricity and more roads to encourage broader commercial exchanges.

“Mr. Higgins added that while one kilowatt/hour of electricity costs around US$0.05 in Vietnam, in Cambodia it can cost up to US$0.18, which is much more expensive than in Vietnam. He went on to say that the cost of transportation of agricultural goods in Cambodia is four times more expensive than in Thailand, adding, ‘This is a big difficulty. If the government wants to spend its money, it should spend it on anything that promotes the productivity in the country.’ He continued to say that although the agricultural structure might get improved and likely earn additional income, employment opportunities will be less. More production in different other sectors besides the garment sector will absorb a growing number of the labor force. The garment sector was producing more than half of the industrial output of the country, while food production earned only about 10 percent.

“Also, Mr. Higgins looks forward to the promise that there will be a Commercial Court to solve commercial disputes, which is a key factor to encourage investors.

“He added that corruption is still another concern for investors – different anti-corruption laws and regulations could solve this situation. He said, ‘Everything to clear up corruption will have long-lasting results.’

“Recently, a parliamentarian and spokesperson of the Sam Rainsy Party, Mr. Yim Sovann, said, ‘The government has to recognize the serious situation of Cambodia and must not conceal it. And the government must really support the budget package of around US$500 million [proposed by the Sam Rainsy Party] to encourage the economy.’

“The spokesperson of the Sam Rainsy Party said so after the Prime Minister, Mr. Hun Sen, who has no economic skills, had dismissed the predictions about the dramatic downturn of the economy of the country, which suffers the impacts of the global economic crisis.

“The Prime Minister, who boasts about his political achievements, claimed proudly to protect this bad face, saying , ‘Growth in agriculture can surely prevent Cambodia from falling into an economic crisis, even though some major sectors of the Cambodian economy encounter a downturn.’

“Because of this persistence, without recognizing what is right or wrong, Hun Sen predicted the future of the economy in Cambodia himself, ‘Cambodia will have 6% GDP growth in 2009.’ Prime Minister Hun Sen chatted lightly, referring to America, Europe, Japan, and Korea as elephants. He added, ‘The global economic crisis in Asia in 1997 was like a sheep that fell dead on the elephants’ legs. But now, the elephants died and fell on sheep’s legs.’

“Mr. Yim Sovann said, ‘If the government still hides the rate of economic changes, they will be hurt by it in turn.’ He added that the IMF might make only few mistakes in their forecasting, which is technical and it is not colored by politics.

“He went on to say, ‘The government should not mix politics with technical problems.’

“The Cambodian economic growth, predicted for 2009 after just two or three months, was nearly 5%. However, on Friday last week [6 March 2009], the IMF listed Cambodia among the countries facing an economic slowdown.

“The IMF predicted that Cambodia will have another 0.5% drop in economic growth, because of the global economic crisis, and the decline of tourism, and of the construction and the garment sectors.” Khmer Machas Srok, Vol.3, #364, 14.3.2009

Newspapers Appearing on the Newsstand:
Saturday, 14 March 2009

Deum Ampil, Vol.3, #138, 13.3.2009

  • Cambodia Restricts to Climb to the Preah Vihear Temple, and a Siamese [Thai] Monk Is Arrested for Attempting to Climb to the Temple
  • The UN Drug and Crimes Office [in Cambodia] Hopes that [the former commander-in-chief, who has just been appointed as the 10th deputy prime minister in charge of drug administration] Mr. Ke Kim Yan Will Strongly Act to Combat Drugs
  • The Government Provides a Livelihood Allowance of Riel 20,000 [approx. US$5.00] per Month to Civil Servants
  • The Court Orders Police to Detain a Taiwanese Man and a Military Police Officer for International Drug Trafficking [Phnom Penh]
  • 20 Security Companies Sign Agreements with the National Police Office to Promote Citizens’ Security
  • Japan, South Korea, and America Announce to Shoot Down a North Korean’s Satellite Launching

Kampuchea Thmey, Vol.8, #1897, 14.3.2009

  • The National Election Committee Bars Foreign Passport Holders to Join the [district and provincial/city council] Election Campaign

Khmer Machas Srok, Vol.3, #364, 14.3.2009

  • IMF: Cambodia Cannot Avoid the Consequences of the Global Economic Crisis!

Koh Santepheap, Vol.42, #6602, 14-15.3.2009

  • Senior Official of UNESCO [Chairperson of the Executive Board of UNESCO Ambassador Olabiyi Babalola Joseph Yaï] Promised to Work for a Sustainable Protection OF the Preah Vihear Temple [he said SO during his official visit to the Preah Vihear Temple]
  • A Man from Hong Kong Had 846 Gram of Heroin When He Wanted to Board a Plane [he was arrested at the Phnom Penh International Airport]
  • The Iraqi Journalist Who Threw a Shoe at Mr. Bush Is Sentenced to Serve Three Years in Prison

Rasmei Kampuchea, Vol.17, #4845, 14.3.2009

  • The Minister of Labor [Mr. Vong Soth]: 99 Factories Are Closed, 78 Factories Are Opened, and 20,000 Unemployed Workers Are Seeking Jobs
  • Cambodian and America Look for Possibilities to Encourage Agricultural Production
  • The Khmer Rouge Tribunal Announces to Allow the [national and international] Public to Attend [former Tuol Sleng prison chief] Duch’s Hearing [on 30 March 2009]
  • The Spokesperson of the Ministry of Foreign Affairs Dismisses the US Department of State’s Report [on the human rights situation in Cambodia] on behalf the Ministry of Foreign Affairs of Cambodia
  • Vietnam Provides Documents and More Than 300 Photos Regarding the Khmer Rouge Regime

Have a look at the last editorial – you can access it directly from the main page of the Mirror.

And please recommend us also to your colleagues and friends.

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