Opportunity and Challenges in Development in Cambodia

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Opportunity and Challenges in Development in
Cambodia
Prof. Otsubos Undergraduate Class

• Presenters NGOV Penghuy and
• Chan Sokyeng
• June 25th

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Where is Cambodia?
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Angkor Wat in Cambodia
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Phnom Penh
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A glance on Cambodia

• Population 14.2 million (2006)
• Area 18,1035 Km2
• GDP Per Capita (Nominal) 512 USD (2006)
• GDP Per Capita (PPP) 2,727 USD (2005)
• Inflation 3.6 per cent (2002-2006 average)
• Adult Literacy Rate 73.6 (2005)
• Life Expectancy 58.0 (2005)

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Structure of Output
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Sectoral Growth Rate
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Basic Macroeconomic Data
2004 2005 2006
Saving-Investment Balance
Gross national saving 15.6 15.8 19.5
Gross investment 17.7 20.1 21.5
General Government Budget
Total revenue 10.3 10.3 11.5
Total expenditure 14.9 13.7 13.5
Balance of Payment
Exports of goods 46.2 44.2 48.8
Imports of goods 64.1 65.6 68.8
External debt
Outstanding Debt (GDP) 38.5 33.9 31.0
Debt Service (Mn USD) 68 69 69
(in percent of exports of good and service) 1.5 1.3 1.1
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Characteristics of Cambodian Economies

1. Dollarized economy.
2. Aid-dependence.
3. Around 80 of population engages in agriculture
   and makes up about 40 per cent of GDP.
4. FDI-led growth garment sector as growth engine.
5. Angkor Wat as tourism site.
6. Construction boom (in the last few years).

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Garment Fast Growing Industry

1. Employment 400,000 jobs in total and absorb some
   30,000 jobs per year.
2. Jobs in garment sector help alleviate poverty of
   workers and families.
3. Exports of garment products account for
   approximately 80 per cent of total export.

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Commuting to Work
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Workplace
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Angkor Wat as core tourist site
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Angkor Wat
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Opportunities

• Oil Reserve (?)
• FDI-led growth
• Garment Sector as Growth Engine
• Hydro-electric power plant (9 plants by 2019?)
• Improvement in financial market

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Challenges

• Environmental Problems
• Widening gap between the rich and the poor
• Sky rocketing in real estate price recently? land
  grabbing ? the poor becomes worse-off
• National Program for Administrative Reform
  (NPAR) Civil Service Reform
• Low domestic technological accumulation leads to
  slow technological absorption from outside.

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• Questions ?