Elijah Ntuli
Cambodia has experienced internal instability and colonial exercises. Nevertheless, it has risen to these harsh challenges. With Thailand on its west, and northwest, Laos to its northeast, and Vietnam to its east and southeast, Cambodia is an interesting decentralisation story in Southeast Asia. In the south it faces the Gulf of Thailand (one of the most contested areas).
The Cambodian post-conflict society has, some argue, only recently taken steps towards thorough democratisation and the decentralisation of powers. The country got its independence from the France in 1953. However, skirmishes occurred thereafter when Vietnam began their invasion mission in 1978.
Interestingly, this year’s elections in July 2008 were well-handled. This gave further impetus on the government of Prime Minister Hu Sen to push for improved economic growth, which last year averaged 10.6%.
The country has started to rehabilitate its image as a so called ‘corrupt beggar state’ after the Khmer Rouge regime in the late 1970s killed most of its educated class. Due to internal changes affixed to the administrative drive to decentralise, international cooperation with the Hu Sen administration saw Cambodia becoming a recipient of about US$763 million in foreign aid. Further undertakings by the government currently underway include preparing for the opening of the stock market next year.
The Global Competitiveness Index of the World Economic Forum (2008-2009) ranks Cambodia 109th and South Africa is 45th. Factors considered for such rankings include the quality of institutional frameworks, the quality of infrastructure, macro-economic stability, and health and primary education to ensure a healthy workforce. Cambodia’s main industries are construction, tourism, and garments, which are attracting a large amount of private investments.
In 2005, oil and natural gas deposits were found beneath Cambodia's territorial water, and once commercial extraction begins in 2011, the oil revenues could profoundly affect Cambodia's economy.
Notwithstanding the progress made so far, Cambodia faces certain challenges. These include: the sustainability of public participation in relevant government structures, the increase in the level of institutional partnership and collaboration between civil society and local government towards a decentralisation drive, and a lack of adequate infrastructure investment in most parts of rural of Cambodia.
However, the government has done well in the allocation of funds for infrastructure facilities as these match the broad-based local needs and demands. Key to the success of such initiatives rests the guarantee that such resource allocations are utilized for purposes of operation and maintenance of the built infrastructure. South African companies have not been active enough in establishing their businesses bases in the Cambodian market due to the fact that Cambodia has taken long to open up to foreign direct investments.
Cambodia plans to open an embassy in South Africa by next year, and this should provide for better proximity in trade facilitation that both counties can embark upon. However, we are also likely to see the country remaining attractive to Cambodian companies as the Southern African Development Community (SADC) is integrating to a single market.
As Cambodia will be commemorating Independence Day on the 9 November 2008 through a series of national events where it has diplomatic representation, it becomes imperative that we collectively remind ourselves, and together work towards ensuring that South Africa and Cambodia create clear political, economic, social and cultural platforms. These would, without doubt, enhance the much-needed exchanges to sustain and enhance the levels of bilateral relations and development growth.
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