The political atmosphere, especially the competition between Cambodia's political parties in the run-up to general elections scheduled for November 1998, has attracted much attention in both the Cambodian and the international communities. Many doubts have been expressed, such as whether Cambodia can hold elections despite the agreement recently reached by the two main parties on the timetable for elections, and whether the present Royal Government of Cambodia -- a coalition of the FUNCINPEC party and the Cambodian People's Party -- can rule the country until the next elections.
If we look back on events during the past several months, we have to acknowledge the reasons for these concerns and doubts. On the other hand, I suggest we look at Cambodia not only in negative terms, but that we also look to the positive aspects of the current situation. Therefore, I would like to mention some positive events which give reason to balance the good and the bad and which hold optimism vis-à-vis the future of Cambodia.
The clashes within the armed forces in Battambang province due to the personal dispute between the two local leaders of the parties were interpreted as the consequences of the interference of the army in politics and the obedience of soldiers to the orders from differing chains of command. Moreover, some reporters went too far in regarding this as a message of the possibility for the renewal of civil strife in the country. Suspicion over the Government's ability to manage the situation was shown. At the end, the facts have proven the opposite. The Government showed great responsibility by ending the unreasonable conflict and putting the province's stability back on track. The wise decision made by the Government to disarm the soldiers involved in the conflict, to set up a joint special committee to investigate the incidents, and to recall the four local civil administration and military leaders of both sides to Phnom Penh testifies to its willingness and efforts to keep peace in the country.
The Government issued on February 26 orders, signed by First Prime Minister Norodom Ranariddh and Second Prime Minister Hun Sen, prohibiting any movement of troops without prior permission from the General Staff and appealing to the armed forces to strictly implement these orders. Subsequently, the Ministry of Defense and the General Staff ordered the troops to remain neutral and not to submit to any political party. They also reminded soldiers and their commanders of the role of the Royal Cambodian Armed Forces which is to defend national independence, sovereignty, territorial integrity, and the welfare of the people. All those measures are aimed at preventing the involvement of the troops in politics and at strengthening order in the armed forces.
In addition, in a separate move to prevent violence, the country's co-interior ministers, the co-defense ministers, the armed forces chief of staff and his deputy, and the two top national police officials reached on April 25 a neutrality agreement which was approved later by the two Prime Ministers. In implementing the agreement, the neutrality ordor was given to all senior and junior soldiers, police, and provincial officials around the nation.
As far as the preparation for the local and general elections is concerned, the agreement reached on March 25 between the two main parties paves the way for the smooth proceeding of the process. Under the terms of the agreement, the communal elections may be held early next year and the national elections will be held in November 1998. The agreement also includes a provision allowing people with dual nationality to run in both elections. Since the agreement was reached, the problems obstructing the Electoral Law have been resolved. The Ministry of Interior has already finished its work on drafting the Electoral Law needed to regulate the conduct at the polls. As soon as it receives the approval from the cabinet, the bill will be sent to the National Assembly. Besides the Electoral Law, several other regulations aimed at ensuring the freedom and fairness of the elections are being pushed forwards. The establishment of a national election commission made up of government officials, political party members, and representatives from both local and international NGOs to organize and monitor the communal and general elections is under way. Another draft law allowing political parties to register for the polls is likely to reach the National Assembly in the near future. The presence of the foreign observers has been accepted by all parties. All this shows that all the parties are indeed interested in holding free and fair elections.
The creation of alliances is not unusual in a country that follows the road of democracy and pluralism. And the competition between them, especially ahead of the elections, is inevitable. The key aspect of democracy is whether the competition is free and fair. The creation of two different political alliances with the two main parties at the core shows that each party is making a concerted effort to increase its chances of winning in the next elections. That means each party is preparing to compete with the other through the ballot box rather than through military means.
While they are competing for the next elections, the two parties keep the lines of cooperation between them open. The establishment of their respective coordinating committees, with the task of holding a joint monthly meeting to discuss outstanding issues, shows that they realize the need to maintain their coalition in ruling the country until the elections and in preventing the renewal of civil strife.
Because Cambodia is still a very young democratic nation that is learning and trying to march on the road of democracy and pluralism, inevitable ups and downs exist in the process. Even though there has been tension in the political arena, be assured that Cambodia is still on the road to a civil society.
The Royal Government of Cambodia has decided to present for the first time its candidature for a non-permanent seat for the Asian Region in the United Nations Security Council for the period 2000-2001, the election for which will be held during the 54th United Nations General Assembly in 1999.
Cambodia has been a firm supporter of the role of the UN in the maintenance of International Peace and Security. It has played an active and constructive role on various issues, such as the UN Conference on the Environment and Development and the reform of the UN, in particular the reform of the UNSC.
Cambodia has strongly supported the principle that every member state should be given an equal opportunity to serve in the Security Council. It is important that representatives of both large and small states serve in the Security Council so that the Council could closely reflect the views of the International Community. As a small state, Cambodia hopes to bring a constructive and useful perspective to the Security Council.
The National Assembly of the Kingdom of Cambodia became the 135th member of the Inter-Parliamentary Union (IPU) at the organization's 97th summit in Seoul in April.
The IPU has provided the Cambodia's National Assembly with important advice and assistance since its inception following the 1993 general elections.
H.E. Ung Huot, Cambodian Minister of Foreign Affairs and International Cooperation, told reporters on April 24 that Cambodia is pushing forward with plans to join ASEAN as a full member this July, and that he did not expect recent political troubles to prevent this process.
As far as the technical requirement for joining ASEAN is concerned, Minister Ung Huot said that the ASEAN Secretariat was pleased with Cambodia's progress, noting that the Royal Government had on April 23 approved 19 agreements, treaties, and declarations required for membership.
The Kingdom of Cambodia has been preparing actively for the participation of Cambodia in the Association of South-East Asian Nations (ASEAN) as a full member. This is expected to happen soon, hopefully in July this year.
The Government's institutions and bodies that are necessary to handle ASEAN and AFTA (ASEAN Free Trade Area) related affairs have already been put in place. The Internal Coordination Network (ICN) has been established and is co-chaired by the two Prime Ministers. The ASEAN General Department at the Ministry of Foreign Affairs and International Cooperation and the ASEAN Departments within the Ministry of Economy and Finance and the Ministry of Commerce were created and continue to be strengthened. The ASEAN units within all concerned ministries have been established. The establishment of a National AFTA unit at the Ministry of Economy and Finance is under way. The ASEAN Economic Ministers (AEM) and the Minister for the AFTA Council have been appointed. The Government is now actively pursuing efforts to mobilize necessary foreign assistance to strengthen its newly established institutions and structures. In spite of these encouraging achievements, Cambodia still faces huge challenges such as the shortage of trained Cambodian officials, especially in areas of English language, customs, and other trade related skills.
With regard to the preparations to accede to key ASEAN Economic Agreements, especially the AFTA / CEPT (Common Effective Preferential Tariff) Agreement, the Government made clear its commitment to participate fully in the AFTA CEPT Scheme; and endorsed the normal track option with a 10 year time frame for AFTA/CEPT implementation. With the support of the United Nations Development Program (UNDP) and Asian Development Bank (ADB), the Government is conducting the assessments of AFTA's impact on the country's national economy. The results of these assessments are expected to assist Cambodia in its AFTA preparations. As a related matter, Cambodia intends to put in place an economic system consistent with international standards. A modern commercial code compatible with both international standards and regional practice and a new customs code are being drafted.
The Government is also striving to accede to the other major ASEAN Economic Agreements, such as Agreement on the ASEAN Food Security Reserve, Agreement for the Promotion and Protection of Investment, Framework Agreement on Enhancing ASEAN Economic Cooperation, ASEAN Framework Agreement on Services, ASEAN Framework Agreement on Intellectual Property Cooperation, Basic Agreement on the ASEAN Industrial Cooperation Scheme, Protocol on Dispute Settlement Mechanism, and ASEAN Agreement on Customs.
As far as the technical challenges are concerned, since Cambodia is facing huge technical difficulties, the country needs substantial assistance, especially in practical training and information in order to participate fully and effectively in ASEAN's economic initiatives. The ASEAN countries and several others are helping Cambodia to meet those challenges.
Cambodia regards its integration into ASEAN as a true partnership based on mutual benefit and mutual respect. Cambodia is actively and seriously preparing for ASEAN membership and the major adjustments it will bring. Cambodia has made considerable progress in its ASEAN preparations and its transition in general.
Cambodia is now ready to improve its access to the Internet. In the very near future, a connection to the worldwide computer network will be broadened either by CamNet, a joint venture between the Cambodian Government and the International Development Research Center (IDRC) of Canada or by Telstra, an Australian telecommunications company.
CamNet is likely to start first, with a connection to Singapore by the end of April. CamNet is expected to hold a public unveiling as soon as the link is established, and then to offer public World Wide Web access.
Once the link is up and running, the service will provide free or subsidized access for educational purposes, said Bill Herod of IDRC, adding that his organization will also sell commercial accounts to the public. The commercial income is a key to making the project sustainable, he said.
Under the terms of the agreement, IDRC will turn the equipment over to the Cambodian Ministry of Posts and Telecommunications after the first three years.
Telstra's service "Big Pond" will offer e-mail and other services starting June 1, through its link to Australia, said Michael Oesterheld, Telstra's business manager. It will likely take a couple of years before the service will make a profit in Cambodia, he estimated.
Cambodia now has a small presence on the Internet, with access to the basic Internet service of e-mail and newsgroups. Several Internet based mailing lists regularly bring technical, medical, and other valuable information into the country.
The United Nations Drug Control Program (UNDCP) sponsored a workshop on improving regional cooperation and coordination in drug control efforts held in Phnom Penh from March 10-14.
Senior drug enforcement and judicial officials from China, Thailand, Vietnam, Myanmar, and Laos joined their Cambodian counterparts at the workshop. Officials from the UNDCP also attended the workshop.
The participants reviewed current drug control legislation and the regional drug situation. They also designed common strategies for drug control.
Furthermore, the workshop drew attention to the production and abuse of synthetic drugs in areas where opium traditionally had been produced, as well as, the rapidly increasing abuse of methamphetamines and inhalants in urban areas.
"This meeting in Phnom Penh is part of a long-term regional effort by the six governments with UN support to create real strategies to reduce the threat that illegal drugs pose to the region's people and its progress," said Paul Matthews, the UN resident coordinator in Cambodia.
It should be noted that the six nations and UNDCP have been collaborating for nearly two years and have signed an agreement outlining regional strategies to reduce drug supply, combat drug abuse, and strengthen courts and law enforcement agencies in the respective countries.
The Cambodian government plans to spend $1.2 billion in the next three years on public projects to rebuild the country's various sectors, according to the government's Public Investment Program for 1997-99.
The Program, which is the Ministry of Planning's central planning document, calls for heavy spending on health care, transport, education, energy, and agriculture.
The Public Investment Program is a companion to the country's Socio-economic Development Plan passed last year by the National Assembly.
Public Investment Program, 1997-99 Sector % Allocation Agriculture 12.5 $149,668,000 Transport 17.5 $210,125,000 Communications 4.7 $ 56,400,000 Energy 12.7 $152,342,000 Trade and Industry 1.1 $ 12,856,000 Education 13.5 $162,400,000 Religion and Culture 2.6 $ 30,731,000 Development Admin. 1.0 $ 11,781,000 Water/Sanitation 9.5 $113,988,000 Health 19.9 $233,811,000 Environment/Conservation 1.9 $ 23,365,000 Social/Community Services 3.3 $ 39,824,000 Tourism 0.2 $ 2,709,000 Total 100 $1,200,000,000
The Cambodian Ministry of Commerce is working on draft legislation for business arbitration in an attempt to put in place a more efficient system to settle business disputes in order to make investors feel more comfortable doing business in the country.
Arbitration is designed to resolve disputes between business people outside of the formal court system. The system allows companies and individuals to take their disputes to a neutral party, often chosen by the quarreling parties themselves. Both sides present their cases, and agree to abide by the arbitrator's decision.
Arbitration is speedier, often less expensive than courts. It's private and it's flexible, said William Collins, senior researcher of Center for Advanced Study, an independent research group, adding that the courts are often very congested, and for business people, the delay in getting a decision can be very costly. Also, business disputes may involve complex issues with nuances that might not be familiar to judges. Therefore, companies often prefer to have arbitrators with expertise in the field of dispute, he also said.
A total of 16,553 jobs were generated in Cambodia from 1994 to 1996 through fifty new factories, according to a study jointly carried out in December 1996 by the Ministry of Industry and the UN Industrial Development Organization (UNIDO).
Textile, garments, and leather factories topped the list with 10,708 jobs (65 percent), following by food, beverages, and tobacco manufacturing with 3,592 jobs (22 percent). Chemicals sector was third with 1,130 jobs. The rest are wood and cork products with 515 jobs, non-metallic minerals with 451 jobs, and fabricated metal with 157 jobs.
The figures show that efforts to attract investors are starting to pay off, said Everett Kleinjans, president of the Center for Advanced Study, an independent developmental research group. Investors are attracted to Cambodia due to its generous investment laws and low wages, he added.
In order to meet the need for electricity that is one of the main factors obstructing the development process, the Royal Government of Cambodia has paid special attention to pushing forward this sector. In the framework of the Government's Electricity Rehabilitation Project funded by a $40 million loan from the World Bank, the Ministry of Industry, Mines and Energy and Electricité du Cambodge (EDC) have awarded a total of $25.2 million in contracts for the expansion of Phnom Penh's electricity network.
The project, for which preliminary work began in March and which is scheduled to be completed in 1999, will provide Phnom Penh with more reliable power for businesses and residents.
The Ministry and EDC are inviting bids for other contracts, including the installation of 160 km of underground cables and 380 km of overhead lines.
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