Economy[edit] Main article: Economy of Cambodia The Cambodian position on the Human Development Index, 1970-2010. In 2011 Cambodias per capita income in PPP is $2,470 and $1,040 in nominal per capita. Cambodias per capita income is rapidly increasing but is low compared to other countries in the region. Most rural households depend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubber are Cambodias major exports. The International Rice Research Institute (IRRI) reintroduced more than 750 traditional rice varieties to Cambodia from its rice seed bank in the Philippines.[99] These varieties had been collected in the 1960s. The Mekong Bank headquarters in Phnom Penh. Based on the Economist, IMF: Annual average GDP growth for the period 2001–2010 was 7.7% making it one of the worlds top ten countries with the highest annual average GDP growth. Tourism was Cambodias fastest growing industry, with arrivals increasing from 219,000 in 1997 to over 2 million in 2007. In 2004, inflation was at 1.7% and exports at $1.6 billion US$. China is Cambodias biggest source of foreign direct investment. China planned to spend $8 billion in 360 projects in the first seven months of 2011. It is also the largest source of foreign aid, providing about $600 million in 2007 and $260 million in 2008. Oil and natural gas deposits found beneath Cambodias territorial waters in 2005 yield great potential but remain mostly untapped, due in part to territorial disputes with Thailand.[100][101] The National Bank of Cambodia is the central bank of the kingdom and provides regulatory oversight to the countrys banking sector and is responsible in part for increasing the foreign direct investment in the country. Between 2010 and 2012 the number of regulated banks and micro-finance institutions increased from 31 covered entities to over 70 individual institutions underlining the growth within the Cambodian banking and finance sector. In 2012 Credit Bureau Cambodia was established with direct regulatory oversight by the National Bank of Cambodia.[102] The Credit Bureau further increases the transparency and stability within the Cambodian Banking Sector as all banks and microfinance companies are now required by law to report accurate facts and figures relating to loan performance in the country. One of the largest challenges facing Cambodia is still the fact that the older population often lacks education, particularly in the countryside, which suffers from a lack of basic infrastructure. Fear of renewed political instability and corruption within the government discourage foreign investment and delay foreign aid, although there has been significant aid from bilateral and multilateral donors. Donors pledged $504 million to the country in 2004,[1] while the Asian Development Bank alone has provided $850 million in loans, grants, and technical assistance.[103] Bribery are often demanded from companies operating in Cambodia when obtaining licences and permits, such as construction-related permits.[104] Textiles[edit] The garment industry represents the largest portion of Cambodias manufacturing sector, accounting for 80% of the countrys exports. In 2012, the exports grew to $4.61 billion up 8% over 2011. In the first half of 2013, the garment industry reported exports worth $1.56 billion.[105] The sector employs 335,400 workers, of which 91% are female. Fair Trade Exports[edit] The Fair Trade movement has lead to a large number of handicrafts being exported for use around the world. Fair trade is used as a way to garner employment for the disabled and under privileged and is fuelled by many organisations who give aid to Cambodia. Tourism[edit] Main article: Tourism in Cambodia Rice field in Baray, Kampong Thom. Farmers harvesting rice in Battambang Province. The tourism industry is the countrys second-greatest source of hard currency after the textile industry.[62] Between January and December 2007, visitor arrivals were 2.0 million, an increase of 18.5% over the same period in 2006. Most visitors (51%) arrived through Siem Reap with the remainder (49%) through Phnom Penh and other destinations.[106] Other tourist destinations include Sihanoukville in the south west which has several popular beaches and the sleepy riverside town of Battambang in the east, both of which are a popular stop for backpackers who make up a large of portion of visitors to Cambodia.[107] The area around Kampot and Kep including the Bokor Hill Station are also of interest to visitors. Tourism has increased steadily each year in the relatively stable period since the 1993 UNTAC elections; in 1993 there were 118,183 international tourists, and in 2009 there were 2,161,577 international tourists.[108] Most of the tourists were Japanese, Chinese, Filipinos, Americans, South Koreans and French, said the report, adding that the industry earned some 1.4 billion U.S. dollars in 2007, accounting for almost ten percent of the kingdoms gross national products. Chinese-language newspaper Jianhua Daily quoted industry officials as saying that Cambodia will have three million foreign tourist arrivals in 2010 and five million in 2015. Tourism has been one of Cambodias triple pillar industries. The Angkor Wat historical park in Siem Reap province, the beaches in Sihanoukville and the capital city Phnom Penh are the main attractions for foreign tourists.[109] Cambodias tourist souvenir industry employs a lot of people around the main places of interest. Obviously, the quantity of souvenirs that are produced is not sufficient to face the increasing number of tourists and a majority of products sold to the tourists on the markets are imported from China, Thailand and Vietnam.[110] Some of the locally produced souvenirs include: Krama (traditional scarf) Ceramic works Soap, candle, spices[111] Wood carving, lacquerware, silverplating[112] Painted bottles containing infused rice wine Agriculture[edit] Further information: Agriculture in Cambodia Agriculture is the traditional mainstay of the Cambodian economy. Agriculture accounted for 90 percent of GDP in 1985 and employed approximately 80 percent of the work force. Rice is the principle commodity. Major secondary crops include maize, cassava, sweet potatoes, groundnuts, soybeans, sesame seeds, dry beans, and rubber. The principal commercial crop is rubber. In the 1980s it was an important primary commodity, second only to rice, and one of the countrys few sources of foreign exchange. View of Angkor Wat in Siem Reap. Today Angkor Wat is Cambodias main tourist attraction and is visited by many tourists from around the world. Transport[edit] Main article: Transport in Cambodia National Highway 4. Siem Reap International Airport. The civil war and neglect severely damaged Cambodias transport system. With assistance from other countries Cambodia has been upgrading the main highways to international standards and most are vastly improved from 2006. Most main roads are now paved. Cambodia has two rail lines, totalling about 612 kilometers (380 mi) of single, one meter gauge track.[113] The lines run from the capital to Sihanoukville on the southern coast, and from Phnom Penh to Sisophon (although trains often run only as far as Battambang). As of 1987, only one passenger train per week operated between Phnom Penh and Battambang but a $141 million project, funded mostly by the Asian Development Bank, has been started to revitalize the languishing rail system that will (interlink) Cambodia with major industrial and logistics centers in Bangkok and Ho Chi Minh City.[113] Besides the main interprovincial traffic artery connecting Phnom Penh with Sihanoukville, resurfacing a former dirt road with concrete / asphalt and implementation of 5 major river crossings by means of bridges have now permanently connected Phnom Penh with Koh Kong, and hence there is now uninterrupted road access to neighboring Thailand and their vast road system. Cambodias road traffic accident rate is high by world standards. In 2004, the number of road fatalities per 10,000 vehicles was ten times higher in Cambodia than in the developed world, and the number of road deaths had doubled in the preceding three years.[114] Cambodias extensive inland waterways were important historically in international trade. The Mekong and the Tonle Sap River, their numerous tributaries, and the Tonle Sap provided avenues of considerable length, including 3,700 kilometers (2,300 mi) navigable all year by craft drawing 0.6 meters (2 ft) and another 282 kilometers (175 mi) navigable to craft drawing 1.8 meters (6 ft).[115] Cambodia has two major ports, Phnom Penh and Sihanoukville, and five minor ones. Phnom Penh, located at the junction of the Bassac, the Mekong, and the Tonle Sap rivers, is the only river port capable of receiving 8,000-ton ships during the wet season and 5,000-ton ships during the dry season. With increasing economic activity has come an increase in automobile and motorcycle use, though bicycles still predominate.[116] Cyclo (as hand-me-down French) or Cycle rickshaws are an additional option often used by visitors. These kind of rickshaws are unique to Cambodia in that the cyclist is situated behind the passenger(s) seat,[117] as opposed to Cycle rickshaws in neighbouring countries where the cyclist is at the front and pulls the carriage. Cambodia has three commercial airports. Phnom Penh International Airport (Pochentong) in Phnom Penh is the second largest in Cambodia. Siem Reap-Angkor International Airport is the largest and serves the most international flights in and out of Cambodia. The other airport is in Sihanoukville.
Posted on: Tue, 20 Jan 2015 17:01:00 +0000