A high-level of dollarisation, largely attributable to the presence of United Nations personnel and peacekeepers in the early 1990s, has largely been the reason for a relatively stable Khmer riel. The recognition of foreign currencies as valid legal tender under statute ensured the existence of a competing currency in the market, enforcing discipline on the central bank by preventing manipulation of interest rates, inordinate expansion of money supply and ensuring that inflation remains relatively low.
Read moreExcerpt: China's Cambodia Strategy, Paul Marks (2000)
Hun Sen's personal interest in reviving Cambodia's ethnic Chinese community likely grew from a combination of economic and personal factors. Economically, Hun Sen was convinced by 1990 that only capitalism could bring development to Cambodia.
Read moreEverything must be sacrificed: Marx, the Khmer Rouge, and Money Abolition
Cambodia is the only country in the modern era to have had money, had that money abolished, and then had money reinstated. Shiller, in the article mentioned previously, mentioned - without detail - that Marxist Communism supported the idea of societies without money. This, of course, is correct. But I should emphasise that Marx went further than just support the abolition of money. In fact, this was central to Marxism.
Read moreThe Basics of Cambodia’s Export Market: Moving Beyond the Garment Sector
So, what is the breakdown of Cambodian exports? MIT breaks down Cambodia’s exports by specific product, and the results are not surprising to anyone who has driven around the outskirts of Phnom Penh: knit sweaters, knit women’s suits, and non-knit women’s suits. Garments continue to dominate in Cambodia
Read moreChina in Cambodia: Weekly Round-Up
This week we kick things off with a link to an excellent piece by Elizabeth Economy, the foremost expert on Chinese environmental policy, on that very topic. We highly recommend her book on the issue, The River Runs Black.
Read moreRegional Integration in ASEAN
Cambodia has pushed for increased openness and regional integration in recent years, particularly within the borders of its ASEAN counterparts. For example: in 2012 Prime Minister Hun Sen called for increased integration by removing trade barriers and liberalizing frameworks so as to transform the region into a global market with free-flowing goods, services, investment, skilled labor and capital.
Read moreCambodia: A Look At Important Trends In Investment, Regional Integration, Exports
A liberal market economy have played a huge role in bringing Cambodia to where it is today, with foreign direct investment being the foundation. It has enhanced industries, created jobs, and has empowered people.
Read moreWeekly Roundup: Vietnam 19 July 2017
Our weekly round up for Vietnam 19 July 2017
Read moreChina in Cambodia: What You May Have Missed This Week
Quite a bit going on in local Sino-Cambodian relations this week, as befits the country's largest donor.
China and Regional Cooperation: A New Era
China's track record with regional cooperation, historically, has been "patchy" to say the least. The dismal outcomes of the 1990s era Tumen River Basin project in China's northeast regularly gallop to my mind when the phrase "regional cooperation" is uttered.
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