Cambodia - Cambodia’s Ranking Slips

Some supporters of the opposition being led into court. Supplied

Cambodia has succeeded in scraping the bottom of the World Justice Project’s (WJP) Rule of Law Index, landing at number 112 and earning the title of the second-worst performing country in the independent global survey released yesterday.

Sadly, the dismal results do not end there.

Cambodia fell behind both Zimbabwe and Afghanistan, which it slightly surpassed in last year’s ranking, and succeeded only in outperforming Venezuela this year – a country in the midst of an utter free fall and stricken with panic since the recent collapse of its currency and healthcare system.

Cambodia continued its losing streak, capturing a gold medal for the absolute worst performance in the East Asia and Pacific region, coming 15th for a second year in a row and dead last at number 28 for its paltry performance among the lower-middle income countries.

“[These findings] reflect how the public perceives and experiences various rule of law outcomes,” said Alejandro Ponce, chief research officer at WJP in Washington.

“Cambodia’s scores and rankings in the WJP Rule of Law Index can provide insight into [its] strengths and weaknesses.”

The global index is the world’s leading source of original data on the rule of law and is used as a tool to assess areas of concern and guide legislative reform.

WJP defines rule of law as a system in which four universal principles are upheld: the government, individuals and private entities are accountable under the law, laws are clear and just, applied evenly and protect fundamental rights, the process which laws are enacted and enforced is fair and accessible and justice is delivered in a timely manner by ethical and independent representatives.

According to these standards, the Kingdom is rife with red flags.

Two days ago, visiting UN Special Rapporteur for Human Rights Rhona Smith scrutinized Cambodia’s judicial system and labeled it flawed, citing particularly that idiosyncratic interpretations of the Criminal Code were unjust.

“In article 31 [the Cambodian Constitution] makes clear the emphasis to be placed on human rights and on ensuring that the law is applied without discrimination. Yet there are many examples of the law being applied in an apparently discriminatory and politicized manner,” said the UN envoy.

The arrest and denial of bail for Sam Rainsy Party Senator Hong Sok Hour serves as one of the clearest examples. The senator was charged with treason following a Facebook post that displayed a video of a fake 1979 border treaty between Cambodia and Vietnam last August.

Since then, the government has continually delayed Mr. Sok Hour’s requests for bail on the grounds that it would “cause chaos,” however unconstitutional it may be.

In April, Cambodia National Rescue Party (CNRP) official Um Sam An was arrested for virtually the same offense – a Facebook post in which he claimed the government had used the wrong maps to demarcate the Cambodian-Vietnamese border – and was charged with “incitement to commit a felony” and “incitement to cause discrimination.”

He is still in jail despite his claim of parliamentary immunity and the absence of an assembly vote that would strip him of it, something many charged and convicted opposition party members have said is evidence of how the judiciary has been used to disrupt their party.

Tep Vanny, an outspoken land rights activist, has been confined to Prey Sar prison in pretrial detention since August on charges stemming from a 2013 demonstration. The activist was first arrested for her role in an alleged “cursing ceremony” in support of Black Monday protests and was charged with “incitement to commit a felony.” 

While delivering the verdict at Ms. Vanny’s trial, the judge altered the charge to “insulting a public official” – a lesser crime of which she was convicted and sentenced to six days in prison – but later lodged an additional charge against her of “intentional violence with aggravating circumstances” for her role in a 2013 protest outside Prime Minister Hun Sen’s home.

Opposition official Son Chhay said the index findings reflected the reality of the country.

“It is recognized around the globe that there is no peace without justice. Justice can only come when a system is adapted to ensuring rule of law,” said the CNRP official.

“When you have a judicial system that is so corrupt – the most corrupt system in the country – it is not going to lead to a peaceful society, it’s quite concerning. That’s why we ought to encourage the government to look at the issues more seriously.

“Instead of trying to reject every report on corruption, they should try to improve it.”

In Cambodia, 1,000 people – 50 percent male, 50 percent female – between the ages of 18 and 60 were surveyed across the cities of Phnom Penh, Battambang and Kampong Cham. According to Mr. Ponce, the sample was stratified to account for gender and socio-economic status in line with Cambodia’s most recent 2008 census.

The survey measured performance using 44 indicators across eight primary factors: Constraints on Government Powers, Absence of Corruption, Open Government, Fundamental Rights, Order and Security, Regulatory Enforcement, Civil Justice and Criminal Justice.

Indicators ranged from measures of equal treatment and absence of discrimination to accessibility and affordability of civil justice. Scored from 0-1, Cambodia received its worst marks in the areas of criminal justice at 0.3, civil justice at 0.19 and open government and absence of corruption which tied at 0.24.

“[The] data and findings can be used to shape policy discussions and advocate for policies that strengthen the rule of law in the wake of the 2017-2018 elections in Cambodia,” said Mr. Ponce.

But government spokesperson Phay Siphan was not nearly as optimistic, calling the report “selective.”

“The government doesn’t pay much attention to this report. It has no interest.”

Effective rule of law can combat corruption, drive a country’s economy and protect its citizens from injustice, WJP said. According to the 2016 WJP Rule of Law Index, Cambodia has a long journey ahead if it wishes to scrape its way to the top from its current position at the bottom of the barrel.

Safiya Charles

Khmer Times

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Cambodia - Budget for 2017 to Increase by $5 Bil

The government plans to increase the 2017 national budget by 15.7 percent, to more than $5 billion – representing an increase over this year’s government expenditure of more than $4.3 billion – a government source said yesterday.

According to the Khmer Times source, the 2017 budget will focus on three main sectors – education, health and social welfare and economic development.

While the spokesman for the Council of Ministers, Phay Siphan, was reluctant to reveal the rise in government expenditure for the 2017 national budget, he confirmed an increase in next year’s spending for those three areas.

However, he said the figures would be released after this week’s cabinet meeting.

“The 2017 budget plan will be discussed during the upcoming cabinet meeting [which will be chaired by Prime Minister Hun Sen] on Friday,” he said.

“The increase in government expenditure in next year’s budget is possible due to the rise in revenue from our tax and customs and excise duties collection,” he told Khmer Times.

“Our three priority sectors in 2017 are education, health and social welfare and economic development,” added Mr. Siphan.

He pointed out that funds for government expenditure in the 2017 national budget would come from local revenue arising from direct and indirect taxes, grants from development partners as well as loans from multilateral financial institutions.

The government collected about $1.2 billion in taxes during the first nine months of the year, 20 percent more than the same period last year. In the same time period, the General Department of Customs and Excise collected $1.3 billion, up 16 percent compared with the previous nine months.

For the 2016 national budget, the government approved a 16 percent increase to make it $4.36 billion, from $3.75 billion in 2015. There was a 15.68 percent rise in social spending to $1.21 billion, from slightly more than $1 billion in 2015.

The biggest expenditure was on economic development, which saw a funding increase by 20 percent to about $1.3 billion, from about $1.07 billion in 2015.

Meanwhile, government expenditure in 2016 on defense, security and maintaining public order rose by 16.51 percent to about $711 million, from about $610 million in 2015.

Preap Kol, executive director of Transparency International (Cambodia), agreed that the government prioritizes spending on education, health and social welfare and economic development in next year’s national budget.

“These three sectors are a must for the country and they benefit all Cambodians,” he said.

However, he also raised concerns about monitoring the use of funds allocated to the various ministries in the national budget.

“The national budget keeps increasing every year, while there is very little monitoring on how well the funds have been utilized in the various sectors,” said Mr. Kol.

“Some sectors, like health, for instance, have not made much progress. There are questions to be asked on where the funds have gone and the answers need to be forthcoming for the sake of transparency,” he added.

“Of course we do appreciate the increase in government spending in the priority sectors. But what’s most important, also, is a mechanism for monitoring the use of funds in a transparent manner – with the participation of all institutions, the public sector, and civil society.”

Cambodians for Resource Revenue Transparency (CRRT), a watchdog organization, said recently that information about Cambodia’s budget was difficult to access.

“In many countries, a citizen’s budget is published by governments to give a non-technical overview of what the budget contains. This process does not exist in Cambodia,” said the group in the website.

“The only other way that the public can check up on the Royal Government’s budgetary spending is to look at the National Audit Report. However, the reports currently take years to be published, meaning that the funding has long ago been spent. The most recent National Audit Report published was for the 2011 budget. Consequently, scrutiny is difficult,” said CRRT.

“At CRRT, we think there is a clear need for greater budget transparency in Cambodia.”

May Kunmakara

Khmer Times

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Cambodia - Cambodia Tells Vietnam, Drop SPS Measures

An exhibitor at the Vietnamese Trade Fair 2016. Last year, bilateral trade between Cambodia and Vietnam was about $4 billion. KT/ Mai Vireak

Cambodia called on Vietnam yesterday to withdraw quarantine and biosecurity measures for its imports from the Kingdom to boost bilateral trade that is expected to grow to $5 billion.

“We want our trade flow [with Vietnam] to increase and also import and export tariffs to be reduced to zero. Most importantly we want Vietnam to do away with technical barriers against our exports, such as stringent sanitary and phytosanitary [SPS] measures to boost bilateral trade further,” said Secretary of State for Commerce Chhuon Dara at the Vietnamese Trade Fair 2016.

SPS measures are the World Trade Organization’s quarantine and biosecurity requirements to protect human and animal health from risks arising from the introduction of pests and diseases. It also prevents health risks arising from additives, toxins and contaminants in food and feed.

Mr. Dara said that bilateral trade between Cambodia and Vietnam was good and rising year-on-year. He pointed out that trade volume between both countries last year was about $4 billion and performance this year was encouraging.

“In the first six months of this year, alone, bilateral trade was more than $2 billion,” said Mr. Dara.

“I think that bilateral trade between Cambodia and Vietnam will soon reach $5 billion. Because of this, we have to ensure that barriers like SPS measures are removed,” he reiterated.

But Te Taing Por, president of the Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC), was less optimistic and pointed out that bilateral trade was actually a one-way flow.

“Vietnam does not respect the conditions of import and export. Vietnamese products easily enter Cambodia, but it is difficult to export Cambodian products to Vietnam. There seem to be lots of hurdles,” said Mr. Taing Por.

“Asean integration is just meant on paper, but its implementation from member states is different,” Mr. Taing Por said.

According to the 2015 blueprint of the Asean Economic Community, the region as a whole must become a single market and production base to produce and commercialize goods and services anywhere in the regional grouping.

In 2015 Cambodia’s exports to Vietnam were valued at $954 million, while the Kingdom imported $2.41 billion worth of goods from Vietnam.

Cambodia’s main exports to Vietnam are seafood, corn, dried tobacco, rubber, paddy rice and cashew nuts. Vietnam’s exports to Cambodia include steel, confectionary items and cereal products, garments, products derived from rubber, vegetables and fruit, paper, metal, machinery parts, vehicles and spare parts.

Sok Chan

khmertimes

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Cambodia - Expats in Cambodia Faced with Attractive New Visa

Although an unlikely expat hotspot, Cambodia’s popularity as a destination for working and retiring has sky-rocketed over the past two years. Many expats who emigrate to the country have previously spent time living in neighbouring Thailand. The capital city of Phnom Penh is home to the majority of expats and around 3 million Cambodians. It is a buzzing metropolis sprinkled with crumbling colonial buildings. It is favoured by expats for its convenience; coffee shops, cinemas, grocery stores.

At the end of July, Cambodia revealed a change in its visa regime that is expected to ramp up the number of new expats even further. Currently, expats entering Cambodia must have a business visa. This straightforward necessity allows the individual a year’s stay and gives them permission to work, volunteer, or start a business. Expats are more than welcome to renew their business visa annually. Whether working, or in retirement, most expats are happy with the current system.

The new visa scheme is aimed at retirees who do not need or require the permission to work or volunteer as part of their existing annual visa. Expats who are simply in the country to live their golden years with no interest in work will need to prove that they are financially secure. Also, they will need to provide documentation from their home country cementing their retiree status.

Cambodia’s immigration chief, Major-General Veasna, comments that the new Category ER visa will allow expats to live in Cambodia provided they can support themselves financially. He also went on to explain that expats already settled in the country will be free to transfer to the new visa if they prefer.

The new Category ER visa was expected to launch on the 1st August, but there will be a delay due to the necessary task of informing the foreign embassies of the change. As it stands, there has been no public information about any cost associated with the new visa. The ER visa is expected to generate a lot of interest amongst retirees next door in Thailand, along with those considering a move to Cambodia from the West.

Little is currently known about the new ER visa, but here is what has been solidified so far:

The new visa is renewable annually

ER visa holders will not require a work permit

To apply for the new visa, expats will need to show proof of financial stability and retiree status from their home country

Those on the ER retirement visa will not be allowed to purchase houses or land

Relocating to Cambodia from Thailand became popular in 2014. With changes implemented in Thailand by the military government, and a perceived risk of civil unrest, many took the plunge and moved across the border to Cambodia. Also, Thai retirement visas stipulate that unpaid or volunteering work is forbidden. This rule is generally disliked by expats. Thai officials began clamping down on those holding a Thai retirement visa who were volunteering with groups supporting local hill tribes and people in need of help. The rules in Cambodia are a lot less stringent.

expatriatehealthcare.com/expats

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Cambodia - Chinese Money Instrumental to Progress, Hor Namhong Says

Former Foreign Affairs Minister Hor Namhong, right, meets with Sun Guoxiang, China’s special rapporteur in charge of Asian affairs, in Phnom Penh in 2015. (Siv Channa/The Cambodia Daily)

Cambodia’s development “could not be detached” from Chinese aid, Deputy Prime Minister Hor Namhong said on Monday, joining a chorus of officials from both parties praising a relationship that appears to be deepening over similar stances on the South China Sea.

The comments came after Cambodia angered Asean neighbors and Western allies for refusing to join them in rebuking China’s vast territorial claims in the sea.

Cambodia characterizes its South China Sea position as neutral and declined to join other Asean members in a joint statement praising a July 12 ruling by a U.N.-backed tribunal that invalidated China’s claims, which are contested by the Philippines, Vietnam and others.

However, Asean diplomats have grumbled that Cambodia is merely serving as Beijing’s lackey in return for more than half a billion dollars in aid it received from China days after the verdict. The government has repeatedly downplayed Chinese influence on its foreign policy.

“It’s two different issues,” Foreign Ministry spokesman Chum Sounry said last week.

In a Monday meeting with China’s outgoing ambassador to Cambodia, Bu Jianguo, Mr. Namhong—who served for years as foreign minister before stepping down in April—emphasized the importance of Chinese aid in Cambodia’s development.

“Cambodia’s progress today could not be detached from China’s aid,” Mr. Namhong told the ambassador, according to Chinese state news service Xinhua. Cooperation between the countries had been “further strengthened and expanded” during Ms. Bu’s three- year tenure, Mr. Namhong added.

Mr. Sounry referred questions about the meeting to Mr. Namhong, who could not be reached.

Council of Ministers spokesman Phay Siphan agreed with Mr. Namhong, saying that Chinese direct investment, as well as infrastructure projects such as bridges and roads, were crucial to maintaining regional links.

“Without Chinese aid, we go nowhere,” he said.

Political analyst Ou Virak disputed the notion that China deserved so much credit for developing the country.

“I think that it would be a bit unfair to credit China with development in Cambodia,” he said. “Most of the credit should go to the people. It has nothing to do with Cambodia or China.”

China has steadily increased its aid to Cambodia. In 2014, Chinese President Xi Jinping promised Cambodia between $500 and $700 million in annual grants and loans—up from roughly $92 million in 2007. Critics say there is little oversight of how the aid is spent, but Mr. Hun Sen has praised China’s hands-off approach.

Speaking during a ceremony inaugurating a Chinese-funded road project in Kompong Speu province on Tuesday, Ambassador Bu said the deepening ties between Cambodia and China actually benefited Asean as a whole.

“Cambodia’s neutral and fair stance over the South China Sea issue has importantly contributed to protecting China-Asean good cooperation and to maintaining peace and stability in the region,” she said, according to Xinhua.

Mr. Hun Sen used the ceremony to announce that he would accept what the Ministry of Foreign Affairs described as the “very special and significant” Asean Lifetime Achievement Award at the 13th Asean Leadership Forum in Vientiane this weekend. Past recipients include the former heads of state of Malaysia and Singapore, as well as a Malaysian monarch.

In a speech, the prime minister credited his fans in Cambodia for the award.

“It’s the result of the efforts of our compatriots who voted for and supported the Cambodian People’s Party and voted for me to be prime minister,” he said.

“I thank the citizens of Kompong Speu province, people who are here, as well as citizens across the Kingdom of Cambodia who voted again and again for the CPP and for me to lead the country.”

(Additional reporting by Kuch Naren)

Ben Paviour

cambodiadaily

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ASEAN - How should Asean deal with Cambodia?

The Association of South-east Asian Nations (Asean) was once again hamstrung over the weekend as it struggled to cobble together diplomatic language that could reflect a variety of positions on the disputed South China Sea. The uncooperative cog was Cambodia, a key ally of China, who objected to any mention of an international court ruling against Beijing’s expansive claim in the disputed waterway.

Ultimately, Asean’s unity of purpose prevailed as foreign ministers on Monday issued a joint communique calling for the peaceful resolution of disputes, including “full respect for legal and diplomatic processes”.

But Asean cohesiveness is bound to be tested again given the divergent positions among the member states, especially between those concerned with Beijing’s growing assertiveness in the regional maritime domain and those with close economic and ideological ties with the world’s second-largest economy.

Some observers have suggested dismissing Cambodia from the regional grouping so that Asean can move forward on the South China Sea.

Since 2012, Cambodia has sorely tested Asean’s spirit of consultation and consensus. That year, as Asean chair, it blocked the issuance of a foreign ministers’ joint communique as there was no agreement on the South China Sea. Over the next few years, the Indo-Chinese nation has repeatedly thwarted Asean consensus by advocating Chinese positions.

With tensions running high over the South China Sea after Beijing refused to comply with an international ruling on July 12 that invalidates its expansive claim, Cambodia is again the renegade whose affiliation with China seems to be ruining its relations with Asean.

There are no existing provisions in the Asean Charter regarding the dismissal or withdrawal of a member state, but the option may be raised again in the future if the grouping cannot agree on divisive issues.

The withdrawal scenario is not limited to the South China Sea, as smaller member states can easily find themselves exposed to lobbying by major powers over other geopolitical issues of the day. But will this move be ideal for Asean?

For Mr Ong Keng Yong, Singapore’s Ambassador-at-Large and former Asean Secretary-General, it is a moot point.

“They (Cambodia) will not leave because their non-Asean ‘sugar daddy’ wants them to stay in Asean to be useful,” he told TODAY, referring to China. He believes it is better to continue persuading and appealing to their sense of commitment to Asean unity and integrity.

“There are no punitive options. We just have to make the cost of political duplicity very high for the errant members,” added Mr Ong, who is also the executive deputy chairman of the S Rajaratnam School of International Studies (RSIS).

Cambodia’s withdrawal from Asean is also unlikely to do the regional bloc any good. Already, the grouping is struggling to remain united and relevant to developments in the region.

Singapore’s Ambassador-at-Large Bilahari Kausikan wrote on Facebook that an inter-state organisation consisting of very diverse sovereignties, like Asean, can operate only by consensus. “Any other mode of decision-making will create stresses that will tear the organisation apart,” he said.

RSIS associate research fellow Henrick Tsjeng pointed out that Asean unity is fragile. “At a time when Brexit is causing a lot of concern about the future of the EU (European Union) as well as a crisis of confidence, such talk would only heighten such fears of the same happening to Asean.”

Ejecting countries deemed pro-China could push these states even closer to the East Asian nation, and cause the remaining Asean countries to veer strongly towards the US in response. Conversely, the opposite will occur if those that are perceived as pro-US are ejected.

“Both scenarios will result in Asean compromising its independence and neutrality as well as a divided South-east Asia, which is not in the interests of Asean member states or extra-regional countries,” he added.

Besides a review of Cambodia’s membership, another option is to adopt the “Asean-X” working method for difficult issues — an arrangement where some members can go ahead to implement decisions, while those that need more time are given a more flexible timeline.

For instance, Cambodia, Laos, Myanmar and Vietnam have been given flexibility to abolish all tariffs by 2018 under the Asean Economic Community, while the other member states had already done so by last year.

Professor Jay Batongbacal, director of the Institute for Maritime Affairs and Law of the Sea at the University of the Philippines, said during a seminar on the implications of the Hague ruling that it may be time for littoral states in the South China Sea to consider forming an Asean maritime bloc so that the grouping can be effective on the issue even if there are disagreements among the member states.

There are no obstacles within Asean to prevent member states with specific interests from forming special and ad-hoc groupings, noted Prof Batongbacal at the seminar organised by the Iseas-Yusof Ishak Institute on Monday.

He pointed out that such a mechanism would not be unusual among Asean member states, given that Singapore, Malaysia and Indonesia had worked together to enhance maritime security in the economically vital Straits of Malacca. In addition, Malaysia, Indonesia and the Philippines are also working together to tighten security in the waters off Borneo after a spike in kidnapping in the area by extremist militants.

In fact, the recent ruling by The Hague has shown clearly how the South China Sea should be shared and these countries could use it as a basis for future cooperation, he added.

“At this point, it is obvious that it is very difficult to get Asean to unify around (South China Sea) issues simply because political and practical realities create different interests,” explained Prof Batongbacal. “Rather than to allow this to break Asean every year (as the leaders and ministers meet), it is better that we recognise that certain members of the bloc do have certain key interests that are different from the rest.”

Asean as an organisation is open enough to allow those with key interests to group together — even if they are not acting as a bloc — to act consistently, he added.

But despite the conveniences of the Asean-X formula, member states have been judicious about bringing it into play, as excluding certain member states and sidelining their national interests could harm regional unity in the long run.

As Ambassador Ong put it: “It is not possible to have Asean-X because the principle must be first accepted by all Asean member states and the errant parties will not sign their own death warrant.”

Ms Moe Thuzar, a lead researcher at the Asean Studies Centre in the Iseas-Yusof Ishak Institute, pointed out that there have been instances “where the recalcitrance of one member state has occasioned exasperated expressions from other members about the level of commitment to Asean”.

Myanmar used to be that recalcitrant member. Today, it is Cambodia, she said, adding: “So, the ball is in Cambodia’s court to shape up.”

If Cambodia fails to play ball with Asean, the grouping’s unity is sure to be further tested over the South China Sea issue in the lead-up to the Asean Summit in Vientiane in September.

Albert Wai

todayonline

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Cambodia - After Sea Decision, Chinese Funds Flow In

China will provide Cambodia with more than half a billion dollars in aid, Prime Minister Hun Sen announced yesterday, less than a week after Cambodia again declined to support an Asean statement critical of Beijing’s claims to the hotly contested South China Sea.

One of the largest grants ever awarded to Cambodia, the aid comes in the wake of Tuesday’s verdict at The Hague rejecting China’s sweeping claims to territory in the South China Sea. The waters are also claimed by the Philippines, Vietnam and others, and reports on Thursday said Cambodia played a leading role in scuttling an Asean statement supporting the verdict.

Mr. Hun Sen said on his Facebook page that Chinese Prime Minister Li Keqiang offered the funding during a meeting in Ulaanbaatar, Mongolia, where they are attending the 11th Asia-Europe Meeting.

“The Chinese prime minister announced that China would provide 3,600 million yuan, or about $600 million, for a period of three years from 2016 to 2018,” he wrote. At current exchange rates, 3.6 billion yuan is worth closer to $538 million.

“At my request, our Chinese friends have agreed to provide funding for the electoral process, health, education and clean water, such as ponds and wells, that will benefit our people,” he added.

The announcement comes less than a week after the Ministry of Foreign Affairs released a statement reiterating the government’s position that China and the Philippines should resolve territorial claims bilaterally.

“Cambodia views that this arbitration case is to settle the dispute brought by the Philippines against China, and this proceeding is not related with all of the Asean Member States,” the statement said.

“Therefore, Cambodia will not join in expressing any common position on the verdict of the Permanent Court of Arbitration that will render its decision on the dispute between the Philippines and China.”

On Thursday, Reuters reported that Asean members had failed to unify around a statement supporting the tribunal’s ruling.

It would not be the first time that Cambodia has sided with China in disputes that pit it against the majority of Asean member states.

International media reported that Cambodia thwarted a similar statement supporting the Philippines in June. And as chair of Asean in 2012, Cambodia ended its tenure without issuing a traditional joint statement after refusing to allow any mention of disputes in the South China Sea, leading to speculation that the government’s support had been bought with generous Chinese aid.

Council of Ministers spokesman Phay Siphan said he didn’t know the motives behind China’s massive aid package.

“Well, why don’t you check with China?” he said on Friday.

Mr. Siphan said the timing of the aid was pure coincidence. “It could be today, it could be tomorrow,” he said. “We need money. If the U.S. gives us it, we take it. The E.U. gives us it, we take it.”

Others were more skeptical.

“In Cambodia, economic aid buys China political influence,” said Ian Storey, a senior fellow at the Institute of Southeast Asian Studies in Singapore.

“China has used Cambodia to scupper ASEAN unity on several occasions,” Mr. Storey said in an email. “By doing China’s bidding in ASEAN, Cambodia is rewarded with economic largesse. But it certainly isn’t making itself popular with its fellow ASEAN members.”

Thitinan Pongsudhirak, director of the Institute of Security and International Studies at Chulalongkorn University in Bangkok, noted that the aid also came amid a crackdown on the opposition in Cambodia, which has drawn fire from Western donors such as the E.U.

“This new grant will be seen as part and parcel of China’s patronage and leverage over Cambodia at a time when the Hun Sen government has been criticised by the international community for blatant human rights abuses and authoritarian tendencies,” Mr. Pongsudhirak said in an email.

“The more Cambodia is alienated and isolated from the Western-dominated international community, the more the Chinese can move in with their largesse and diplomatic succor.”

Opposition lawmaker Mu Sochua said she worried the aid would not be doled out transparently.

“I hear also that it will go to wells and ponds, which the ruling party uses to attract voters through gifts,” Ms. Sochua said. “Generally, the loan and assistance from China, it’s difficult to get records and then monitor for accountability.”

National Election Committee (NEC) spokesman Hang Puthea said he did not know how much of the money would go toward facilitating upcoming elections.

“If any country wishes to help the electoral process without imposing conditions that would affect the NEC’s neutrality, the NEC will consider accepting it to ensure the electoral process will be accepted by all parties concerned,” Mr. Puthea said.

Mr. Hun Sen has repeatedly denied claims that Chinese aid has hampered Cambodian sovereignty, and has praised the Asian giant’s hands-off policy toward human rights, corruption and other talking points repeatedly raised by Western donors.

“Cambodia is not goods to be bought by anyone as a sovereign state and as a responsible member of Asean,” the prime minister said in 2012.

After former Chinese Prime Minister Wen Jiabao offered Cambodia $600 million in 2006, Mr. Hun Sen explained the appeal of Chinese aid.

“China talks little but does a lot,” he said.

Ben Paviour and Kuch Naren

cambodiadaily

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Cambodia - Hun Sen Tells Asean to Back Off Ahead of South China Sea Ruling

Cambodian Prime Minister Hun Sen has warned his Asean counterparts against meddling in South China Sea claims ahead of a landmark ruling on the dispute lodged by the Philippines expected to be announced next week.

The Philippines, who have long claimed the Scarborough shoal, filed with the Hague arbitration court in 2013 after Chinese naval ships refused to leave the shoal. The ruling is touted for Thursday, July 7. China has indicated it will not be recognized by the giant, with diplomats touring the globe in recent weeks gathering support.

The South China Sea has increasingly wedged the Asean regional bloc, with some member states, like Cambodia, arguing for bilateral resolutions to the dispute rather than Asean-China talks.

Speaking on Tuesday (28/06) at the 65th anniversary celebrations of the ruling Cambodia People’s Party (CPP) in Phnom Penh, Hun Sen again lashed out at Asean.

“The CPP does not support — and more so is against — any declaration by Asean to support the decision of the Permanent Court of Arbitration in relation to the South China Sea disputes,” he said, as quoted by Cambodia Daily.

“Efforts by some countries outside the region to mobilize forces against China would bring negative impacts on Asean and peace in the region.”

Hun Sen’s apparent support for China raised eyebrows earlier this month after a statement issued following a meeting of Asean foreign ministers was mysteriously retracted.

Sources suggested Cambodia, Laos or Myanmar were behind the retraction, an accusation Hun Sen deemed “unacceptable.”

“We expressed our serious concerns over recent and ongoing developments, which have eroded trust and confidence, increased tensions and which may have the potential to undermine peace, security and stability in the South China Sea,” the statement said.

jakartaglobe

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Cambodia - Cambodia’s Trade Deals

Cambodia has been a de-facto open and liberal free market economy since the mid-1990s simply because there are not much economic or industrial interests to protect.

Trade liberalization and openness are regarded as the keys towards economic development and poverty reduction.

To survive as a small economy, Cambodia has to be economically competitive and be able to integrate into the world economy. It needs to enlarge its export markets, attract foreign direct investment, improve production capacity and be part of global and regional value chains.

The evolution of regional mega trade arrangements, particularly the Regional Comprehensive Economic Partnership (RCEP) and the Trans-Pacific Partnership (TPP), ushers in a new momentum and dynamism in the Asia-Pacific. 

The RCEP, with a combined GDP of $23 trillion, aims to achieve a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement among the 10 Asean member states and six Free Trade Agreement (FTA) partners of Asean.

RCEP, which is still in the negotiation process, also aims to create a liberal, facilitative and competitive investment environment and narrows development gaps in the region through technical cooperation and development assistance.

Sensitive issues in RCEP negotiations include the movement of people, investment liberalization in certain sectors and government procurement. One complicating factor is that not all participating countries have an FTA with their RCEP partners.

For example, there is no FTA between China and India, between China and Japan.

The TPP, with a combined GDP of $28 trillion, aims to achieve extensive liberalization in trade in goods and services, investment, government procurement, non-tariff barriers and many other regulatory topics.

The TPP, which was concluded late last year, is a high-standard, comprehensive regional FTA that will boost trade and investment flows among the 12 member countries as well as integrate the region into a single manufacturing base and market.

Domestic politics in the US casts a long shadow over the TPP. Whether the US Congress will ratify the TPP is a matter of political debates. Both Donald Trump of the Republican Party and Hillary Clinton of the Democratic Party have publicly opposed the TPP in its current form.

Bernie Sanders from the Democratic Party calls TPP “disastrous” for America.

As a member of Asean and the RCEP, Cambodia prioritizes RCEP negotiations and other regional economic cooperation initiatives such as the Asean Economic Community and “One Belt, One Road.”

Cambodia has not yet officially demonstrated its interest in joining TPP. Cambodia may need to consider joining the TPP given the fact that the US is the main export market of its products.

The opportunities from these mega trade agreements are market access, investment attraction, technology transfer and skills development and transformation. The challenges are legal and institutional reforms, production and export capacity.

Although Cambodia is a relatively liberal and open economy, trade and investment facilitation measures need much improvement. According the OECD’s trade facilitation indicators, Cambodia’s trade facilitation performance ranks below the average of Asian countries.

The Cambodian government needs to, as suggested by the OECD, promote the involvement of the trade community, simplify and harmonize trade documents and promote the accountability and ethics policy of the customs structure and operation.

Another study by the World Bank argues that despite the government’s effort at introducing reforms to improve the investment climate, the business environment continues to hamper the competitiveness of firms in Cambodia.

The most severe constraints faced by firms include the cost of electricity, corruption and anti-competitive practices and transport and logistics.

Without urgently addressing the rampant and systematic corruption issues and strengthening and cleaning up state institutions, promoting innovation and enabling the private sector to better operate, Cambodia will lose its competitiveness and, consequently, it will be left behind.

Cambodia needs to have skilled labor, well-functioning transport, logistics, finance, communications and other business and professional services to move up the value chain.

Political leadership is the foundation of economic development. A healthy and productive partnership among the state, markets and society will produce holistic solutions to the challenges and issues deriving from globalization and regionalization.

Regional economic integration unleashes new opportunities, but it needs to remain open and inclusive. High-standard and high-quality mega-regional trade agreements help regional countries to move forward with more vigor.

With the improvement of strategic trust and deepening economic integration in the Asia-Pacific, RCEP and TPP will be able to converge into an integrated Asia-Pacific wide regional trade arrangement to accommodate both the first and second largest global economic powers – the US and China.

Chheang Vannarith

Khmertimes