However, in 1999, the first full year of elating peace in 30 years, progress was made on economic reforms and growth resumed. As we know about more stable political environment in Cambodia, the government formed in November 1998 in a position to renew its economic and structural reform program. It substantial support from the international community, improve was made in the first half of the asses in restoring financial stability and beginning economic reconstruction. However, much remains tube done to build basic economic and social institutions and attain sustainable development.
As a legacy of he past, administrative and institutional capacities are weak, and Cambodia need for external support remains considerable. These reform programs are poverty alleviation and the chainmen of sustainable economic growth, preconditioned on strengthening the rule of law and governance, and tackling corruption. The National Assembly supported the comprehensive agenda and strategy on November 30, 1998. The targets of this agenda are: 1 . Safeguarding social stability and security 2. Building human capacity 3. Strengthening infrastructure and fostering an environment for private investment 4.
Fully protecting and preserving the natural environment 5. Enhancing national revenues in the context of a fully accountable and transparent fiscal policy; and 6. Encouraging the private sector as the engine of growth, investment, and employment creation. The economy is a principle domain to support the national development program, which involves sustainability and macro- economy. Alt should effectively use its natural and human resources. Cambodia heliotrope free market economy linked with the program of combat the poverty, antisocial Justice.
The economic mechanism runs its course within rules and isolations of free market economy. The Royal Government would not manage the market, but would support it. The Royal Government would grand the private sector thirtieth of self-determination on productivity, investment, and expenditure, India would intervene much less. For the reasons, it would set legal undemonstrative structures to ensure freedom and autonomy of the private sector property right, employment, profession, and the right to compete trebly.
It would improve mechanism and structure of economic-management to ensure the effectiveness and transparency to cope with corruption violation of law. That s very important to stabilize the macro-economy, taboos the people’s standard of living, and to encourage the investment. It priorities the physical agricultural in fractures, electricity and human resources, which are the basic of over all development. The following goals must be achieve. 1 . To speed the economic growth in order to improve the popular living standard and create more employments.
The chief potential promote the economic growth is the mass and to transform the undersecretaries and the national products into the products of export. The Royal Government would economic rules and regulations and o promote Cambodia to be a good producer in order to attract more foreign investment. 2. To ensure the stability of Riel currency. To keep the inflation rate at bay to prevent the loss of revenue and private saving by the Riel fluctuation, and to build confidence in Riel by devaluation with caution the dollar. 3.
To increase the export of agricultural and manufacturing products with high expertise and quality. 4. The Royal Government would do it best to alleviate the poverty. Delineation of poverty is not only the basic of sustainability of the contemplativeness, but it also he priority to implement the social program . 5. To attain the above goals, the Royal Government would seize down the following imbalance. Between the need and supply, especially on foods, housing, transportation, education, and health care. Between the revenue and expenditure within the national budget.
Between the import and export. Between the currency and goods. Between salary and the standard of living of civil servant and servicemen. Between the increase in the work force and the employment. Between the need for national development and the training of human resources. The Royal Government would continue to carry out the projects, which are identified in the national program of rehabilitation underdevelopment of Cambodia. It would focus on the long-term program for tectonic and social development in the first five years from 1996-2000.
It electroplates to achieve the urgent need for the investment on public sector. Based on these basics and the on going achievements, the Royal Government may carry out the following economic strategies. The Royal Government strongly believes in the processor selecting the ones, who are healthy, well educated, well disciplined, ones, independent, and responsible. In this spirit, the improvement of quality federation, health services, and food security must strongly promoted by ethereal Government, it would prioritize the investment on the vocational training on higher education.
The Cambodia workers would be better equipped with skill and the knowledge. The present shortcoming of the national infrastructure tremendously undermines the economic growth of Cambodia. The Royal Government would continue to rehabilitate the national infrastructure. Eventually it would privative the ass transportation and commutation, the the telecommunication, and the electrical power supply. Macroeconomic performance deteriorated in the period leading up to the July 1998 elections and their aftermath, reflecting political instability and the impact of the regional crisis.
In this difficult environment, the government made strong attempts to contain the economic deterioration. Economic growth slowed, but remained positive, and inflation increased moderately. Fiscal performance reflected shortfalls in revenue and external financing, as well as overspending on the military. As a result, development expenditure was compressed, urgent increases in social spending did not achieved, and substantial bank financing of the budgets were need for the first time in four years.
Moreover, there was limited progress in key structural areas such as forestry, budgetary management, and civil service and military reforms. Emerging political stability and returning confidence, economic prospects for 1999 and beyond have improved significantly. The government is determined to break from the past, and has already initiated reform measures, announced in late 998 and early 1999, against illegal logging and corruption, and to strengthen fiscal management.
Moreover; the 1999 budget provides for important tax reform measures, increased social sector spending, and envisages no domestic financing. With these policies, and based on early indicators, economic growth in 1999 is expected to rise to 4 percent (on the strength of a rebound in agriculture and a recovery in tourism), and inflation is projected to decline to 5 percent. The external current account deficit is expected to widen to 12 percent of GAP reflecting a recovery in imports and a sharp ordainment of illegal logging activity.
In conclusion, even Cambodia economy slowed during 1997-98 due to the regional economic crisis, civil unrest, and political infighting. Since Cambodia has peaceful for 34 years, progress was making on economic reforms and growth resumed year by year under the National Assembly supported the comprehensive agenda and strategy in 1998. Cambodia can restore financial stability and beginning economic reconstruction, build basic economic and social institutions, and attain sustainable development. Words count 1 ,224 words
