Published by the Cabinet of Samdech —————— MP of Kandal Prime Minister

Issue 85 http://www.cnv.org.kh February, 2005

05 February 2005 (Unofficial Translation of Selected Comments) 08 February 2005 (Unofficial Translation of Selected Comments) Inaugurating a Hall of Common in the Lanka Pagoda Opening the National Institute of Education

In addition to the prepared teachers. On the other hand text, Samdech Hun Sen made there requires a collaboration a number of comments on the of schools, teachers, district following matters: authorities and offices of edu- cation at the municipal/ On gangsters and publica- provincial or ministerial level. tions of pornographic con- Especially the armed forces – tent take for instance, police and military police -- could also be of assistance. I used to men- … It has been obvious that tion that if we cannot eradicate the problem of gangster con- the gangster (big brother) is- tinues to get in the way of the sue, we all should resign from study of our students and the positions of Governors of teaching of our teachers. I do provinces and districts and let not accept that we could not 05 February 05 - Samdech Hun Sen Confers a Medal on the they take over your positions solve this problem as this instead. It is quite disturbing to Buddhist Follower and Mother in Law Bun Seang Ly for the problem could not be ad- contributions she made for the development of Buddhism the majority of students and dressed by only school and (Photo: Virakmuny) (Continued on page 3)

... Today, my family and I have city is now 570 years old but 11 February 2005 The Keynote Address at the Gathering on: great pleasures for being pre- according to the publication in “Seizing the Global Opportunity: Hope, Strategy, Actions” sent in the inauguration of a 1967 the pagoda is 568 years It is a pleasure for me to be descent who are attending to- great hall of common in the as it was built in 1437 under here and a privilege to be day’s conference instead of pagoda. Yesterday we had a the reign of Ponnhea Yaat. It speaking to this distinguished enjoying family reunion at religious rite to perform with was first built in a different audience about a growth strat- home. the participation of Samdech place but about 100 years ago egy for in an Era of Patriarch and the Buddhist (in 1892) the pagoda was Free Trade. I would like to This policy conference can monks of all levels. We had the relocated due to urban plan- take this opportunity to ex- become a useful mechanism well wishing ceremony (krong ning in those days. From press my profound gratitude for dialogue between business, pealy), the sermon recitation, 1910, the pagoda noted some to the World Bank, the Euro- trade unions, governments and the preaching of Dharma be- major development under the pean Union, UNDP, AusAID, international organizations and fore we have this inauguration Banha Nhean Vidhya Khan as the US-ASEAN Business institutions on investments and today. I wish to take this op- the head monk. Council, the Global Fairness trade related issues in the new portunity to express my sincere Initiative and other organiza- era of free competition. I be- appreciation and thanks to ... At the later stage, the pa- tions for sponsoring this con- lieve that we should focus Samdech Patriarch, Samdech goda made a great deal of ference. At the same time, I more concretely on the policy Podhivang, Samdech Preah progress because its location would like to congratulate issues Cambodia is facing. To Dhamalikhet, Samdech Preah is not far from the Royal Pal- once again to the winners of help frame this conversation, I Udom Charya and all the Bud- ace. The Buddhist pagoda of the 1st Cambodia Corporate would like to share with you dhist monks for honoring my Lanka was honored by the Citizenship Awards 2005. our hope, our strategy and our mother in law and the whole naming the Buddhist pagoda Since today marks the begin- actions to support our vision of family. The religious rite was of Langka Preah Kosomaram ning of the Chinese New (Continued on page 6) performed yesterday and today by the Queen Preah Kosama Year, allow me to extend to we have the inauguration itself Munnirath Sereiratana. Sam- those of you with Chinese to do. If we were to look to the dech Preah Dharma Likhet In This Issue connections my best wishes 1) Hall of Common, P. 1 backside of the compound, we Lovea Em was once the head for a prosperous and happy 2) Education Institute, P. 1 could feel that it is as old as the monk of the Buddhist pagoda New Year. I appreciate very Phnom Penh city itself. The (Continued on page 2) much the guests with Chinese 3) Global Opportunity, P.1

Mailing Box: Cambodia New Vision (CNV), P.O. Box 158, Phnom Penh, Cambodia; e-mail: [email protected]; Tel: 855-23 219898; Fax: 855-23 360666/219869 Cambodia1 New Vision—Issue 85 February 2005

(Continued from page 1) ... In regard of the above state- from her that she would con- Prek Prosob of Kratie. It is a ment concerning the existence tribute a part of what she has correlation of dependence be- of Lanka. The pagoda enjoyed of Buddhism, let us look at been given for the Buddhist tween the two – people and the support of Their Majesties the what happened under the Pol ritual. It makes me think that monks. Once people have suf- Kings of all reigns up until Pot regime. They claimed to nothing could obstruct the ficient food, the monk would 1960s, when it was bestowed have abolished religion, while people’s belief in religion, and have a good meal as well. On with the above name and indeed all they did was pro- in this case the Buddhism, the contrary, when the people honor. I remember that when I hibiting people from practic- which is the religion of the starved, the monk would not be first entered Phnom Penh I ing Buddhism in public, but state. in any better situation. resided in a house not far from people continue to nurture the pagoda of Lanka. There belief in their hearts. They ... Taking this opportune mo- ... Through Samdech Patriarch, was an owl that used to fly destroyed pagodas, disrobed ment I would like to express on behalf of the Royal Govern- from the Buddhist pagoda of monks, but in the end they my sincere appreciation for ment, I would like to convey Lanka to my house where there could not remove religion Samdech Patriarch and vener- my sincere thanks and appre- were two jackfruit trees. Ac- from our people’s hearts. I able Buddhist monks for the ciations to the contribution cording to our tradition, we was a pagoda boy and when I leadership which brings about made by all Buddhist pagodas have to use salt in scaring have difficulties I always ask contribution to the secular in saving our people from away the owl, but we could not for protection from the Bud- world. My remark is that Bud- damages of rice cultivation find salt for own consumption, dha, the monks, my parents dhism shares its value in all caused by general drought in how could we take salt to and my mentors. Now we national development – na- 2004, through which efforts we throw away to scare the owl? have both in form and in con- tional security, social order have recovered about nearly Later more Buddhist monks tent, the monks of all levels, and social development, eco- ten percent of the predicted came residing in the pagoda schools of Buddhism in the nomic development, etc. be- loss of 20% from the whole and the owl seemed to have medium and tertiary levels. cause it advises human beings figure of rice cultivation. gone away. to do good things and to in- Along with this, my deepest … Aside from these we have flict no harms on others. This thanks also go to all the Bud- ... The pagoda had experienced Samdech Ov (Preah Norodom value is indispensable in the dhist monks who have pro- three head monks already from Sihanouk) and Samdech Me overall development of the vided assistance for the chil- Samdech Preah Bodhivang (Queen Monineath Sihanouk), country, through which pro- dren who are in need of sup- Nun Nget to the head monk HM the King who are follow- gress will be made. Morality port for livelihood and study. Sun Khim and after his death ers of Buddhism. So, asking and virtue are the most essen- in 2002, the head monk Sao how long Buddhism would tial elements in life, which are … The Buddhist pagoda is the Chanthol. Because of our ef- exist will be responded with bestowed upon all Buddhist most favorable place for chil- forts in the past under the lead- an answer that it will exist followers by the monks. Per- dren of the poor to reside in so ership of the venerable monks, until it has no more followers. forming positive actions by that they could get both resi- we have been able to put the We are now at the Buddhist the Buddhist followers will dence and food for the time of pagoda in various development year of 2548 and I am glad harmonize the social fabric in their study. Take for instance, step after step. that people give their trust in the secular world. in the Buddhist pagoda of Buddhism which is the state Lanka we have about 244 such … In the old days, when Sam- religion. We now have up to ... I wish to also thank Sam- persons who are currently dech Heng Samrin was the 4000 Buddhist pagodas, and it dech Patriarch and head monk benefiting from the offer, and President of the State Council, is good if none of them in- for the management and lead- another 700 others in the Bud- Samdech Chea Sim was the volves in politics as doing so ership at the Buddhist pa- dhist pagoda of Botum. I was a President of the National As- would end the trust of the goda’s level for the support pagoda boy myself and I was sembly and the National Buddhist followers and they they have provided in time of brought up and educated with United Front, and I was the no longer come to the pagoda difficulties. When we had the help of the Buddhist pa- Prime Minister, we used to for religious rituals anymore. natural calamity as the 2000, goda. I wish to remind those bring up the subject of how 2001 flooding, and the 2002 who reside in the pagoda that long Buddhism would exist. ... The day before, I watched and 2004 droughts, the Bud- the Buddhist pagoda is the Our discussion brought us to a the Bayon TV’s program dhist monks proved to be key place of serenity and they may conclusive answer that Bud- “helping the miserable per- leading forces in mobilizing wish to remember a recitation dhism will exist as long as the son,” who happened to be an material and financial assis- in my song “the Buddhist pa- Buddhist followers believe. As old lady for whom my wife tances and provided them to goda is in the path of Bud- long as they believe, Buddhism contributed a sum of 500,000 our people through HE Dep- dhism, I live and study, while will exist. I think this is the Riels and other utensils that uty Prime Minister Sok An. serving the Buddhist monks best answer for a long time to cost in all approximately an- Those assistances were chan- before they go to bed, I would come. Buddhism ceases to other 300,000 Riels, and my neled to the vulnerable people evade all karmas in the secular exist when people no longer mother in law gave her the in the district of Kroch world.” believe in it. It is a short but plastic tent for covering her Chhmar, Stoeung Trang of succinct answer. roof. I was surprised to hear Kompong Cham and some to (Continued on page 3)

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(Continued from page 2) especially now that we have a (Continued from page 1) later I expressed my discontent ... Unfortunately we could ac- determined cooperation be- the fact that they carried on the accompanying dancers commodate only male students tween the two political Parties weapons in to school com- on stage for their inappropriate and could not do so for female – the Cambodian People’s pounds impose serious threats clothing. They have now al- ones. It is in an effort to redress Party and Funcinpec, stability to peers and teachers. tered their dresses, but I still the loss suffered by female will be preserved for the peo- see that more need to be done. students, we have included in ple. Samdech Krom Preah ... It is in this issue that I Now let me turn to a publica- the action plan for the Ministry Norodom Ranaridh, President would like to place an appeal tion that is causing us an of Women Affairs the creation of Funcinpec, the National for stricter measures to be alarming shock on our culture. of student’s hostel in medium Assembly and Special Advi- taken irrespective of the This one is “Chumtung Rik- and high levels of education. I sor to the Royal Government criminals’ relations to whom reay” magazine or “Amiable am all ears and throw my sup- of Cambodia discussed with it may be. They must be Youth” -- written and pub- port to this idea. I am very me almost everyday on how caught, though they are chil- lished by Lim El Djurado – a happy with the inauguration of to keep peace, political stabil- dren of the army officers or Director of a Department of the hall which is indeed the ity. provincial governors, etc. the Ministry of Social Affairs. contribution of the Buddhist Social order and security The publication is indeed por- followers Bun Seang Ly and ... Thanks to the strong deter- have become a debating sub- nographic, and what is worse Hun Neang, my mother in law mination of the two Parties – ject because a small group of is that it has got the authoriza- and my own father. Before and coalition partners in the bad youngsters have caused tion for publication from the passing away, my mother con- coalition Government, Sam- endless disturbances, and the Ministry of Information. It is tributed to the construction of dech Krom Preah (Norodom use of drug has also stemmed available at bookstalls that are so many Buddhist pagodas in Ranaridh), Samdech Chea from this issue. We do not not far from the Prime Minis- Kompong Speu, especially the Sim, Samdech Heng Samrin have bad intention for these ter’s house, let alone nearby Buddhist pagoda of Kdei and others have united for the kids but we should try on the many schools in town. It is Lovea. After her death my sake of providing peace, sta- other hand to help them indeed a disappointment. father continues what she had bility to the country. There is through education to be pro- been doing in those days. My nothing that we cannot do, as vided by schools, parents, ... Another publication also mother-in-law also does the drop by drop the bucket is society and other measures enjoyed the authorization from same thing. My wife and I are full. Take for instance we that can be taken for the pre- the Ministry of Information is following their will and help have hall of residence, hall of vention of those kids from “Sexual Health and Partners” them contribute in the Bud- Dharma and in the future we problems such as bloodshed – whose content is nothing but dhist achievement and devel- will build something else. clashes at various sites from sex -- also by same author. I opment. religious rites to weddings came across another sexual … As for today I have ceremonies. I therefore rec- discontented matter in the ... Aside from inaugurating this brought here five sets of com- ommend the authorities of all issue 56 of the Angkor Thom great hall of residence, the puters, printers, two copiers levels and police of all posts Happiness magazine. This one venerable monk of the Bud- and a contribution of Riels 20 to provide support to all is the “Kolab” magazine dhist pagoda of Lanka has also million for further refurbish- schools so as to create a which runs a story “Love for requested for one more con- ment of the pagoda. I wish to safety system for educational Lady Boss.” In this case what struction and I approve his recall also that I have contrib- institutions and for parents do the Ministry of Information request. I think I should try to uted a sum of Riels 36 million whose kids have disobeyed. I and Ministry of Culture do? have the engineering team of for a year to the Faculty of am sure that parents will be Why should we overlook the the Ministry of National De- Buddhism.■ of good understanding and consequences for the authori- fense help with the design offering us supports in return zation of such publications? In blueprint and the construction. (Continued from page 5) for the sake of evading those Cambodia, freedom of press I hope that it is not weird to see mitted to engagement in the kids from eventual death or and speech is fully applied as soldiers in uniform building weeks, months and years to wounds. newspapers could criticize the pagodas. come. We look forward to anyone, while radio could

working with all development ... I am taking this issue as a broadcast opposition opinion … The most important thing partners including donor com- result of the ineffectuality on at will. I could conclude that here is to preserve peace and munity, private sector, and this matter over the past this freedom of expression is political stability. When the civil society, as we together years. Years ago and in our nothing but a freedom of cre- country is at war, even God seize the global opportunity. Cabinet meeting of July 16, I ating social problems. As they could not help us and/or the made several comments on obtained authorization from monks. Let’s think about In conclusion, may I wish televisions because by 1998 the Ministry of Information, monks at war time and at peace successful deliberations dur- pornographic films were tele- H.E. Khieu Kannharith should time. At war no one could ever ing the conference and wish vised on cable. I was able to review this matter and if nec- do or develop anything. When you all to have a memorable change that by one of my essary, authorization could be the country is in peace and stay in Cambodia. ■ strong message to them and peace is well strengthened, (Continued on page 4)

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(Continued from page 3) rything, and encourage what 8-year old kid who knows of amending the Constitution withdrawn. After reviewing if is right and improve what is a better than I am, I ask him to to provide confidence motion it is found that the matter shortcoming. Various crimes teach me. If I meet someone for the new Royal Government could not be solved because of have been reported in the older than I am but does have from by a two third majority to the absence of laws, we then press ranging from conflicts at much knowledge, I will teach a 50 + 1 formula. This was have to come up with a bill the game boots to child hitting him.” It is true that knowledge brought up on January 29, and/or issue more sub-decrees one’s mother, etc. I made is never at its end and we can when CPP conducted its 31st to handle the case. several speeches on many always fill it up. I may let you plenum. It received an official occasions which went in three know that my study is going proposal form the opposition ... The social value is sinking TV stations -- TVK, Bayon on and my research is endless. party for the amendment of the when students do not make and Apsara. A study of the There are things that we do Article 90 of the Constitution, progress in their studies. We speeches should be carefully not know so it is important to with the above content. The now have to keep in mind this conducted as to what I have increase one’s knowledge proposition was rejected by objective -- “education for all” recommended on this matter. always. CPP and it has become a sub- and “all for education” – so ject of discussion in cafe and that we all are working in simi- ... Failing to do so a dark soci- ... Another point that I want NGOs on the reason why CPP lar pace throughout Cambodia, ety would eventually take all of you to understand and does not accept the offer. not only in the rank of teaching shape, with many youngsters behave appropriately is when staff. Some teachers could be of ours become gang mem- you, after graduation of ... Let me from this podium targets of threat by bad stu- bers, and it would be a dan- bachelor degree, come to clarify that it is nothing but a dents, gangsters, etc. There gerous situation. We have to meet with your teachers who political trap. It sounds like a may be remarks that Hun Sen enforce the law and what do may have only secondary generous offer but there is a is meddling in sexual expres- we have the law for if we do level of education. What huge secret behind. Up to this sion or in author’s rights. Let not abide by it? Take for in- would be an appropriate man- moment, on the contrary, the me clarify that this is my term stance there has been a claim ner from you to them? We opposition does not write to (till 2008) as Prime Minister, I that I bribed Samdech Krom should be thankful because Funcinpec yet on this matter. have the responsibility to bear Preah in exchange for HM the thanks to them you have come Why they wrote only to CPP? before the Cambodian nation King Sihamoni being able to this far. The fact that you may H.E. Say Chhum, on behalf of or in Khmer it means I have to ascend the throne and Sam- teach a class higher than your CPP has written a letter in re- be responsible for both right dech Krom Preah to be Presi- former teacher, but a teacher sponse and a clear position has and wrong. If you wanted to do dent of the National Assem- of one day is a teacher of the also been taken in the speech all this you should wait till bly. Now the law has been whole life. We also have to of Samdech Chea Sim to the when you became Prime Min- applied in relation to such a respect their experiences as plenum. When the question is ister. This is similar to what groundless remark. A number they have gathered in such a asked why the proposal is writ- President Bush and Presiden- of countries in the world, take long time in their professional ten to CPP and not to Funcin- tial candidate John Kerry were for instance France, in be- lives. pec, one could have a good arguing about same sex mar- tween 1992 and 1999, MP understanding on the move. riage issue. immunities have been On the Constitutional Their ultimate aim is to seek a stripped off more than once. If Amendment from 2/3 to split within the coalition of ... As we are in the stage of the press would like my com- 50+1 vote CPP and Funcinpec. A “yes” implementing the rectangular ments on the matter, I would answer from CPP is equal to strategies, I represent the ma- suggest them to take the ques- ... One political issue that I the breaking down of the jority of the people to keep this tion to the court. would like to share with you Royal Government. Why? All society safe and one or two all today would be useful for Funcinpec officials joined in NGOs could not advise me to ... Today all of you have be- us in evaluating our country’s the creation of the Royal Gov- the contrary. Some people are come professors or teachers. situation. We used to say ernment would certainly feel paid by foreigners to keep an You have spent 12 years “bamboo shoot will eventu- that they would be disapproved eye on the Royal Government, studying in the general educa- ally replace the bamboo.” as the Constitution goes into the National Assembly. I tion system and another four Recently there are two amendment. This could be would not in any instance ob- years in tertiary education “pundits” (political commen- their first concern. While later ject to the non-governmental which add up in all 16 years tators) saying that this slogan in the parliament, when Fun- work as a whole but I would of education. Growing a tree is wrong. In fact the slogan cinpec disagrees with the just want them to be realistic. would give us fruit in just five means that younger genera- move, another concern would People in the National Assem- or six years. Growing a hu- tion like you will take over the arise as to whether CPP aban- bly represent millions of peo- man being has taken us 16 task from senior generation, dons Funcinpec for the Sam ple in the whole country, and years as you can see. I agreed not only in education but also Rainsy party. they have given birth to the with HE Senior Minister Kol in politics. coalition government with me Pheng for having quoted Lao ... To amend the Constitution as the Prime Minister. I have Tsu as saying “though I am 80 ... What I wanted to bring up we have to seek a change in the obligation to oversee eve- years old already, if I find an today is the fuss around issue (Continued on page 5)

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(Continued from page 4) of forces that would provide the Socialist Republic of Viet- (Continued from page 8) the quorum as well. CPP could favorable conditions for po- nam. Walking together to the why the Royal Government hold the national assembly litical stability, peace and meeting room, H.E. Jacque has initiated the annual Corpo- meeting as it has the quorum development for a long time Chirac said to me: “Isn’t it rate Citizenship Awards. We needed because to set up a to come. CPP does not accept obvious that now is the time want to show the Cambodian Government then, we need their offer and we have the for Prince Ranaridh to be- public that good corporate only 63 to 64 votes, and CPP obligation to work with its come King?” I replied in reaf- behavior, good morale, labor possesses 73 votes already as it current partner in the coalition firmation that “no, he would standards, community citizen- occupied 73 seats in the Na- Government. not be the one because he has ship, environmental steward- tional Assembly. Once CPP is to go on leading Funcinpec, as ship and good governance, leading the Government alone, ... I am sure you all get the it is the foundation of political especially transparency and there will be an alteration of all points. This is politics. Poli- stability and the constitutional accountability can lead to bet- positions of all the commis- tics could be thankless and if monarchy as well as the sur- ter conditions for the whole sions under the National As- it is thankless towards a part- vival of the throne.” H.E. society. sembly because the formula 50 ner, then it is not politics any- Chirac said to me: “Well that + 1 is applied – the positions of more. In that instance CPP is a good thinking.” Later on I V. Our Hope President and Vice Presidents would not be a trustworthy gave similar answer to H.E. of the National Assembly, partner as well. We, CPP and Prime Ministers Junichiro In recent decades, Cambodians Heads and Deputy Heads of Funcinpec, have been work- Koizumi, Wen Jia Bao, Thak- have lived through many diffi- the various commissions of the ing together in all circum- sin Shinawatra, Badawi and culties and some of the most National Assembly as well as stances – in difficult as well as President Arroyo of the Phil- profound challenges any nation those in the Government. in peaceful time, but I am sure ippines. has faced. Having overcome Therefore, first of all when we have more peaceful time all these, our Hope is sim- CPP gives a “yes” answer, than difficult one. It is indeed ... The fact that Samdech ple. It is to give our people the Funcinpec would immediately normal when in working Krom Preah abandoned his opportunity to think about and feel that it has been cheated. places we have some differ- chance of being King is in- take care of their own future by Once disagreement prevails in ences as what could have deed a great sacrifice. As you themselves. For this reason, the National Assembly, the happened for those plates that all can see that the transfer of we have embarked on a wide final outcome of this would rattle in the basket. With re- the reign to HM the King range of reforms. We know lead to a Hun-Sen-50 + 1 gard to this I would like to is a that every reform is an invest- Royal Government, which reaffirm that we have to look smooth one and took us only a ment in our future and the fu- would not last till 2008. for the whole forest and not week to do so. If Samdech ture of our next generation. We just one tree. We must pro- Krom Preah offered to stand hope that our young people ... We can also ask if CPP ac- vide one another with a shar- for the throne, HM the King will grow in a Cambodia that is cepts the proposal, where could ing win –win situation, the Sihamoni, who then was a known as a place where you be the virtue, morality and result of which would be de- prince, would not have stood can “do good” and “do well”; a faithfulness in cooperation velopment for the whole as candidacy. place where good governance, between partners? We have an country. CPP would not be- corporate social responsibility old saying that goes “once in tray Funcinpec, and so would … Let’s imagine if Samdech and profitability go hand in difficulties, everyone is called I not to Samdech Krom Preah. Krom Preah were to not stand hand. upon, once the honey is avail- Now it is reasonably under- for the throne, then in face of able, everyone is forgotten.” standable as to why CPP does CPP accepting the formula 50 We hope that Cambodia be- Samdech Krom Preah not accept the offer to rule + 1, Samdech Krom Preah comes known as a country that (Norodom Ranaridh) and I, alone. would not have a chance to be recognizes its problems and together with all of you, we President of the National As- bravely took the needed con- overcame all sorts of obstacles ... Taking this matter into dis- sembly, and positions in the crete actions to solve in setting up a Royal Govern- cussion, please allow me to Government would not be them. Our hope is that the ment. With such an opportu- inform you all that Samdech guaranteed too, what would private sector sees Cambodia, nity offered by another opposi- Krom Preah has made a great happen to Samdech Krom although young but dynamic tion party for CPP to rule sacrifice for the stability of the Preah then? How would he be and vibrant place that has a alone, would CPP be happy to country. Would you happen to blamed by Funcinpec mem- long and rich history with great accept it? CPP would not do know who has got the news bers? CPP would then be a energy and potentials, which so. that Samdech Krom Preah cheater. I raised this thinking embed in our natural resources, would not be selected as so as those who voted for CPP history, civilization, culture … CPP possesses a political King? It was H.E. Jacques and Funcinpec could under- and our youth. seniority and experience, and Chirac, President of France. stand as to why CPP rule out would not bait the trap easily When HM the King Norodom the possibility of ruling We are grateful for the help of for individual and immediate Sihanouk declared his retire- alone.■ the international community in interest at all. We are on the ment, I was attending the these efforts, and we are com- contrary looking at an alliance meeting of ASEM in Hanoi, (Continued on page 3)

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(Continued from page 1) election of His Majesty 2004. Employment in gar- months of imports, reflecting a vibrant, profitable and re- Preah Bat Preah Borom- ment and textile has been a strong export performance and sponsible private sec- neath Norodom Sihamoni as major stabilizing force for the sustained tourist arrivals. Thus, tor. Much of this draws upon our King was another land- population and the economy we can see clearly that Cambo- our Rectangular Strategy for mark in the Cambodian his- in recent years, 280,000 dia has open a new chapter of Growth, Employment, Equity tory for ensuring long-term skilled and semi-skilled, espe- history and emerging into a and Efficiency. The core of stability for the Nation. Now cially female workers. new dawn of its future with a which is good governance, and we know and value the pre- vibrant peace, ample national a large part of which involves vailing and improved security Moreover, Cambodia has reconciliation, strengthened private sector growth, so that and political stability as Cam- made sensational strides in democracy and human rights they can play a meaningful role bodia and Cambodians have integrating Cambodia into and dignity. as driving force for growth. come to enjoy and appreciate international commu- peace unknown for many nity. Cambodia's membership II. Challenges and I. Achievements which un- decades. This allows the gov- in ASEAN and the WTO, as Our Strategy derpin opportunity, confi- ernment to pursue bold re- well as cooperation within the dence and hope forms to liberalize and facili- framework of the Greater However, we are living in a tate trade, strengthen free- Mekong Sub-Region (GMS), tough and challenging time. During the last ten years market institutions and train the Ayeyawade-Chao Phraya- The contours of the regional Cambodia has gone through a human resources, open up the Mekong Economic Coopera- and world configuration have sweeping change not only in society and democratize our tion Strategy (ACMECS) and dramatically changed since the political and security, but also institutions. other Triangular Develop- Asian financial crisis. The in economic and social land- ments at sub-regional level change of economic aspects in scape. Probably some of you The Overseas Development provide great opportunity to East Asia, the increasing un- are not aware of the fact that Assistance has provided the reform the investment and certainty caused by terrorist more than two decades ago, foundation for equitable so- foreign trade regime by focus- acts across the globe, turmoil, after the fall of the Khmer cial and economic develop- ing on the liberalization and wars, epidemic diseases and Rouge regime, there were only ment. Overall, the assistance decentralization of decision frequent natural calamities in 70 people living and working of the international commu- making process, reducing the the world, the expiration of the in Phnom Penh. Now more nity to Cambodia these past bureaucratic red tapes, remov- quota system under the Multi- than one million Cambodians 10 years has been very valu- ing impediments to invest- Fiber Agreement (MFA), and from all walks of life live in able and well spent. Official ments, implementing reform the increase in oil prices pose a this city, once considered as development assistance has programs and initiating the new challenge for Cambodia. the gem of South-east Asia reinforced ongoing national modernization of structure Moreover, although we have during the 1960s, before the efforts to develop social, eco- and management system of achieved robust economic war broke out. nomic and physical infrastruc- the national economy and growth, the growth base is still tures. It has strengthened upgrade its competitiveness to narrow, which would make Peaceful settlement of the Cambodia's unceasing efforts the regional and international Cambodia’s economy vulner- Cambodian problem has to lift the country to a higher standards. able to external shocks. And opened up a window of oppor- destiny, to a new plateau of the fruits of growth have not tunities for social and eco- sustainable development. Cambodia has achieved re- yet been distributed equitably nomic development. Again markable macroeconomic to all social strata in the rural Cambodia has become just 6 Trade has been the main stability and poverty reduc- areas to meet the government's years ago an oasis of peace. source of economic growth in tion. During the last five aspirations. Although Cambo- The threat of Khmer Rouge Cambodia. Normalization of years, the Cambodian econ- dia's trade regime is much eroded and disappeared fol- relationship with the US and omy grew by 6.8 percent per more liberal than that of the lowing the “win-win” policy the EU countries resulted in year on average. Inflation was region, Cambodia has commit- that I initiated in 1996-98, the signing of trade agree- less than 3 percent, compared ted to undertake many other leading to the dismantling of ments that has been widely to 150 percent in 1993. Pov- reforms in order reap the bene- their military and political or- hailed as a success, with Cam- erty was brought down from fits and maximize prosperity ganization. bodia gaining jobs and invest- 49 percent in late 1980s to 36 for the Nation. ment along with better work- percent in late 1990s. The The long-term political alli- ing conditions. Our factories exchange rate has been Faced with this situation, we ance between the CPP and here gained access to the U.S. broadly stable. Domestic recognize that Cambodia's FUNCIPEC represents the market in exchange for sub- revenue collection increased future sustainable growth pri- anchor of the peace for Cam- mitting to inspections from from 6 to 11 percent of GDP, marily depends on the Royal bodia. Our experience shows the International Labor Or- though remaining low by Government's ability to that peace can be achieved ganization (ILO). Garment regional standards. The coun- broaden economic opportuni- through perseverance, com- exports increased exponen- try's international reserves ties and growth base. In this promise, accommodation and tially from a US$20 million in have grown from nothing to a sense, the challenge for Cam- mutual understanding. The 1996 to US$1.6 billion in level that be able to cover 3 (Continued on page 7)

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(Continued from page 6) omy and Finance, particu- tion system to facilitate $5,000 to $1,000 dollars; bodia in the next ten years is larly the Custom and Ex- firms to have access to and the strengthening of good gov- cise Department, and the bank credits and to help ernance, so that we can attract Tax Department, the Min- commercial banks evaluate (d) Reform inspection more investment and ensure istry of Interior, particu- investment proposals; regime. The Ministry of our competitiveness with larly the Economic Police, Industry, Mines and En- iii. Institutionalizing the labor neighboring countries in order the Ministry of Commerce ergy’s role in inspections market through the devel- to gain benefit from our poten- especially CAMCON- of individual consignments opment of a registry of tials in agriculture, agro- TROL, the Ministry of has been confined to a required skill profile, train- industry, labor-intensive and Public Works and Trans- “post-shipment inspection” ing needs and availability processing industry, tourism, port, the Ministry of Indus- with less encumbrances to of human resources for the manufacturing and the services try Mines and Energy, the the exporters. We are ac- private sector; sectors. Based on this, the Ministry of Health, the tively conducting a possi- Royal Government in the third Ministry of Agriculture iv. Improving infrastructure, bility to review and stream- legislature of the National As- Forestry and Fishery as expanding the coverage of line procedures and the sembly is committed to pro- well as the Ministry of electricity, telephone and needs for inspections. mote private sector develop- Social Affairs and Labor; communications network, vi. Introducing a law govern- ment as a key sector in its po- water supply and sewerage ii. Reducing transaction costs ing all forms of private litical platform. system, increasing the effi- on the import and export of participation in infrastruc- ciency of ports, reducing goods while increasing ture; As you are already aware, due the costs of electricity, port Government’s revenue; to our political history, our handling, transportation vii.Revisiting the generous institutions were developed iii. Reducing unnecessary and and communications; provisions on overtime, under specific circumstances to overlapping transaction nightshifts, and holidays, v. Discouraging monopolis- protect Cambodia from being costs in trade transactions; while upholding the core tic trading arrangement abused by unscrupulous busi- labor standards with the iv. Reducing time of import through the relaxation of nesses who have sought to take view to make Cambodia's and export process; licensing and inspection advantage of our emerging garment industry competi- requirements; institutions in the post-war v. Increasing predictability tive. period. These institutions took of time and costs of export vi. Increasing the participa- the form of multiple-layered and import process; and tion of firms in the formal 3. Enhancing market access control systems, which lack economy by reducing the vi. Maintaining the compli- and access to information, coordination among relevant regulatory burden on firms ance vis-à-vis the trade by: agencies. This was relevant to including: facilitation guiding princi- the circumstances of that time. ples of the World Trade (a) Lower the cost of 1. Strengthening trade promo- However, at present when the Organization (WTO) and commercial registration. tion and market informa- country's exports have jumped World Customs Organiza- We have therefore lowered tion activities; to nearly US$2 billion, our tion (WCO). this cost by US$400; vision for pro-poor trade strat- 2. Developing a directory of egy requires us to review the The specific result we seek in (b) Eliminate unneces- enterprises, to be combined functions and structures of our this area is to (a) minimize sary and multiple licenses. with the computerized reg- institutions in response to new paperwork required for expor- We have abolished the istration system; developments. Our objective is tation through a single admin- Economic Police permit. 3. Developing website to to encourage the private sector istrative document, and opera- We have eliminated the promote local products; to export while introducing tionalize the “single window” Export License, since there modern technology, streamlin- for export-import; (b) reduce is no longer required as the 4. Strengthening capacity of ing procedures, and use risk the time required to process Multi-Fiber Agreement Customs and Excise De- management techniques to export-related forms to one (MFA) expired. We have partment to prevent smug- ensure inspections. Therefore, day; and (c) reduce and eradi- eliminated the need to issue gling; we have laid out some concrete cate unofficial costs. Certificates of Origin (CO) 5. Developing export promo- measures as follows: before the shipment is tion potential through the 2. Promotion of market in- cleared. We will now issue establishment of industrial 1. Trade facilitation, by: frastructure and deregula- certificates of origin on a zones for exporters. tion, by: post-shipment basis in or- i. Rationalizing Govern- der to safe time. ment’s agencies that impose i. Reducing time and costs 4. Institution Building and high costs and delays on imposed by different types (c) Lower the minimum the Enhanced Rule of Law private sector, such as those of inspection; capital requirement for includes the following meas- registration. We have ures: units under the responsibil- ii. Establishing an informa- ity of the Ministry of Econ- therefore lowered from (Continued on page 8)

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(Continued from page 7) 11.Enhancing consultative 11.Promoting vocational/ building. government-private sector skills training, both domes- 1. Promoting legal and judicial forum, aimed at ensuring tic and overseas; Indeed, strong institutions de- reform to ensure contract transparency in decision- pend ultimately on the people. 12.Promoting the "one vil- enforcement and provide making; We will, therefore, accompany lage, one product" pro- fair judgments of cases; this program of reform in tan- 12.Promoting development of gram; and dem with public administration 2. Adopting commercial code leasing business. 13.Strengthening the legal reform and other reform pro- and establishing commercial framework by creating grams. This reform includes court; 5. Promoting Small and laws related to: factories, (a) the rationalization of civil 3. Establishing system of Arbi- Medium Enterprises, by: industrial zones, patents service wages to attract and tration and Mediation for and inventions, measure- retain skilled staff; (b) settling trade disputes; 1. Encouraging the develop- ments and industrial safety strengthened civil administra- ment of SMEs, especially etc. tion to ensure that human re- 4. Facilitating business regis- through the provision of sources are wisely deployed in tration by using automated medium and long term high priority sectors; (c) pro- registration and establishing III. Focusing on the effec- finance; moting a performance-based computer database for enter- tiveness civil service system, and the prise registration; 2. Suppressing smuggling of institutional reforms to move all kinds; Our Actions have been 5. Promoting adoption of cus- Cambodia to a new plateau of driven by our confidence in toms law and issuing sub- 3. Reducing registration pro- development. Our core phi- economic liberalization, mul- decree and regulations to cedures and start-up proc- losophy in this sector is to tilateral trading system and ensure effective law en- esses for companies; move toward an effective, sound government institu- forcement; merit-based public service, 4. Facilitating export-import tions to manage the reform which provides all kinds of 6. Finalizing and adopting activities by simplifying process. We envision that incentive to officials. implementing regulations to procedures such as licens- public institutions should pro-

the Amended Law on In- ing and other authorization, vide a regulatory framework IV. Corporate Citizenship vestment of the Kingdom of to ensure fair competition, 5. Supporting some infant Cambodia as soon as possi- avoid monopoly and maintain industries during an appro- While the Royal Government ble. In this regard, to decen- equal treatment. We have priate period; is making every effort to pro- tralize decision-making on collaborated with a number of mote institutional reform and investment projects, the 6. Promoting linkages be- donors to promote implemen- improve public governance, Royal Government decided tween SMEs and large tation of the above mentioned business community should to delegate to the provincial enterprises; measures in order to attain also uphold their ethics and authorities to approve in- concrete outcome as we ex- 7. Establishing a national accountability. I would like to vestment projects of up to pect. In this spirit, I urge pri- center for productivity to take this opportunity to appeal US$2 million; vate sector partner to actively assist SMEs, enhancing to all businessmen, both na- work with the government 7. Reducing barrier access to their productivity and re- tional and international, to counterparts to ensure effec- market and promoting the ducing production costs; strengthen their corporate gov- tiveness and consistency in level of playing field for ernance. What we have 8. Establishing a national the implementation of those competition; achieved in the garment sector standards institution to help measures in a new environ- must be made standards for all 8. Improving “tax regime” by ensure the quality of do- ment. of Cambodia. We should increasing number of com- mestic products to meet strive to promote our reputa- panies including more com- regional and international At the same time, we are also tion as an ethical producer in panies into the categories of standards; well aware that the above all sectors, not just textiles and medium- and large taxpay- concrete measures can not be 9. Establishing national labo- apparel. In addition, improv- ers and reforming achieved as planned if there is ratories for physics, chem- ing management standards, “assessment regime of taxa- no comprehensive reform istry, micro-biology, me- respect for laws, professional tion”; programs in other key sectors, chanics and tests for qual- code of conducts and social especially legal and judicial 9. Encouraging establishment ity and criteria of products; morale is good social deed in reform; public financial man- and empowerment of busi- itself and also good for busi- 10.Strengthening mechanisms agement and banking sector ness association; ness people and corporations, for the protection of indus- reform; land, natural re- as international buyers and 10.Rationalizing quality con- trial intellectual property sources and state property consumers increasingly de- trol institutions for goods by rights, to prevent illegal management reform; con- mand more responsible behav- setting up a single body to copying, re-creation and struction and maintenance of ior from the companies with inspect quality, measure- illegal use of new tech- physical infrastructure, and whom they are dealing. That is ment and technical stan- niques and technology; more importantly institutional (Continued on page 5) dards;

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