The Cambodian Economy
These comments on the Cambodian economy are not based on any review of government accounts or statistics but rather on the view through the bus window and on anecdotal evidence gleaned through chatting with Cambodians. Indeed, anecdotal evidence suggests that 70% of the economy escapes the national accounts. That seems reasonable as 80% of the population produce and consume their own food and sell the surplus for cash, in the local market. However there are indices that give us some idea of the state of the economy.
Transportation & Communication
We travelled on good paved roads and traffic was frequently heavy. Heavy trucks and buses moved about freely so goods and people move freely and relatively efficiently. The rural roads and side streets ranged from good to passable. We only had to get out of the bus once to do battle with a mud hole.
We used two of the main airports and they were modern and functional. Unfortunately the rail road had been destroyed by the Khmer Rouge. We understand that a contract has been given to an Australian firm for rail development.
Internet is also widely available, albeit over the cell data networks. This country may just leapfrog our wired, western world. During our stay in Cambodia one of our group hooked up WiFi at the BTC; others in our group used Skype to talk to a friends and family in North America. Cambodians are connected to the world!
Investment & Infrastructure
Capital investment is a good index of optimism in the future. In Siem Reap we observed many luxury hotels with more under construction. These exceeded anything one would see in a Canadian city of similar size. There were also a lot of new gasoline stations; they are big and they are modern.
On the down side, I noted the lack of foreign investment in manufacturing and commerce. One explanation given by a local person was that the government owns all land and foreigners can’t get clear title. They can lease like everyone else but only at less than 50 of the lease. Under these circumstances they don’t want to invest.
Also there are many ultra modern new government buildings in the cities and dotted through the countryside. Somebody has faith in the future.
Electricity is available in most areas of the cities and town and even in the country. For locals it can be expensive though and conservation is a daily habit. Electricity is purchased from Thailand because it is cheaper than being generated in Cambodia. We observed large high voltage transmission lines so the infrastructure is in place.
English and the Bakong Technical College
English is Cambodia’s second language and is widely spoken especially in hotels and tourist areas. Most stores and buildings have English signs alongside the Cambodian sign. English is also taught in schools. The BTC teaches English to 240 students at various grade levels; the only western language taught. We have been able to make ourselves understood in English at all hotels, restaurants and shops we visited.
Irrespective, the people are industrious and innovative. I am very optimistic and wish them all the best.
John Meek