Corruption main obstacle to Cambodia economic growth
Cambodia has this year again scored poorly in the World Economic Forum’s (WEF) business competitiveness survey, with the group citing corruption, poor infrastructure and the weak implementation
of laws as the main reasons the nation is being outdone by its neighbors, newspapers reported early November.
Out of 131 countries ranked in the 2007 Global Competitiveness Index, Cambodia reportedly ranked 110, lagging far behind fellow Asean members Singapore at 7th, Thailand 28th, Indonesia 54th, and Vietnam 68th, reported The Cambodia Daily.
Countries’ ranks are decided through a combination of survey responses and economic data on education, job training, macroeconomic stability, infrastructure and innovation. Cambodia ranked 106th of 122 countries in the 2006 index, said Hang Sambo Pisith, a researcher with the Economic Institute of Cambodia, adding the change does mean that Cambodia’s business environment has not improved. Rather it is due to the fact that nine more countries have been added, he told Rasmei Kampuchea.
Referring to a survey conducted in March and April which appraised the views of 105 business executives, he said: “While Corruption is still at the top of the list, infrastructure is weak and law enforcement needs work,” Moneaksekar Khmer reported.
He also claimed that the lack of an effective labor force, proper education, infrastructure, tax rates and political stability are also effecting economic development in Cambodia, added Rasmei Kampuchea.
“Of the [the business executives] surveyed in 2006, 79 percent said that corruption was the main obstacle to Cambodia’s economic development,” he told Rasmei Kampuchea.
Mao Thora, undersecretary of state of the Commerce Ministry, said the low ranking could discourage investors, reported The Cambodia Daily. “This rating could affect investors’ decisions,” he said, adding that: “In fact, the business environment is good but there remain a number of challenges.” “Corruption is what people generally talk about.”
Cambodia should attempt to pay more attention to health and education sectors and promote physical infrastructure and technology as well as form a favorable business environment to improve its economic development, he suggested, concluded Rasmei Kampuchea.
Civil society officials have claimed that to rapidly develop Cambodia’s economy and woo foreign investors to Cambodia, the government must hasten the approval of the anti-corruption law, Moneaksekar Khmer reported.
(Source: Corruption Monitor Bulletin, Issue 1, December 2007)