Sunday, December 14, 2008
Economic crisis in Cambodia, from the World Bank's point of view: with bad luck comes some good?
Takeo (Cambodia) 03/09/2008 Rice export may be the only growing sector of the economy. Daily labourers harvesting the first of two yearly crops of a landowner. They are paid the grass that is left after the rice has been threshed. They use it to feed their cows. (Photo: John Vink / Magnum)
11-12-2008
By Stéphanie Gée
Ka-set in English
Click here to read the article in French
Click here to read the article in Khmer
East Asia will not be spared the impacts of the global economic storm which started in the developed countries and has been severely raging throughout the world since September 15th, the World Bank (WB) warned in its latest report, released on Wednesday December 10th. However, according to projections made by Jim Adams, vice-president of the World Bank, the region of East Asia and Pacific, pulled by China's line of dynamism and better-prepared to face the crisis than it was in 1997 when it was hit by the financial slump, will contribute about a third of the total global growth in 2008. But what about the small Kingdom of Cambodia, who stood out over the past ten years with important growth records - GDP growth averaged 11.1% between 2004 and 2007 - achieved thanks to open policies? The WB forecast a GDP of 6.7% for 2008 for the country, but the product should plummet down to 4.9% for 2009.
Hard times for the four key drivers of Cambodia's growth
“The unfavourable external environment will now lead to less demand for Cambodian exports, fewer tourists, and less foreign investment”, Stéphane Guimbert, a senior economist for the Cambodian branch of the World Bank, explained. “Inflows of foreign direct investment are projected to slow from a record high of 10% of GDP in 2007 to 5.2% in 2009, as foreign investors become more cautious about investing in developing countries, in a context of unstable economic situation.
So, the four key drivers of Cambodia's economic growth will suffer severe blows: first of all, the sector of agriculture: it offers substantial opportunities for Cambodia, a rice exporter, but the scope for a robust supply response remains uncertain given the recent decline in prices and limited investment in the sector. Then, the garment industry, hit by the slowdown in the United States, its main export market, weakened by competitiveness issues due to high inflation and an increase in workers' wages, and affected by the lifting in 2009 of safeguards measures by the United States and the European Union on China, a major competitor in garment exports. Thirdly, the sector of construction is slowing down too, due to the consequences of the crisis on Korea who had until now been acting as a locomotive for the Cambodian construction sector. Finally, tourism has been directly affected by weaker global economy on the one hand and the border disputes with Thailand on the other hand. The WB reported that a slowdown in tourist arrivals was noticeable in the first six months of 2008.
The World Bank's recommendations
As some do not hesitate to say that this economic depression may well be the worst in the world since the 1930s, one may wonder what a small country like Cambodia could do to respond to the crisis with its own resources. Vikram Nehru, the World Bank’s Chief Economist for East Asia and the Pacific, admitted frankly, from Tokyo, that “Cambodia was unlucky to [have been] caught in the crisis at this particular time”.
Stéphane Guimbert, for his part, put forward four key policies which could help lessen the impact of the shock wave on Cambodia. To start with, he advocated the strong supervision of the banking sector to avoid financial risks. “The financial sector is still very young in Cambodia. If there is a problem, the situation could get worse very quickly!” he warned, adding that the government was on the right track in this field. He also suggested the establishment of fiscal stimulus meant to support growth without jeopardizing macroeconomic stability.
Another key policy, he added, would be to offer trade and investment facilitation to mitigate the adverse effect of the external environment. And finally, the economist advised that social safety nets should be prepared to help the most vulnerable cope with the slowdown in growth
Keeping the garment sector in good health
In such a context, Cambodia seems bound to lose its market shares in the United States since demand will clearly be reduced. The Kingdom will then be forced to seek new markets, Vikram Nehru advised.
Cambodia must boost its competitiveness - “it must be one of the country's priorities”, Stéphane Guimbert insisted – by facilitating trade, offering fiscal stimulus and dealing with labour-related conflicts. The World Bank economist reminded that the country suffered from its dollarised economy since the American dollar has been appreciating against other currencies circulating in the region due to the inflation this year.
With bad luck comes ... some good?
The World bank economists yet want to believe that there may be a few advantages to take from the current situation of crisis, at least in the medium term. In the case of Cambodia, the sector of agriculture, which is still far from being exploited in the best way, could be boosted more, with a view to support economic growth. “Although the price of rice has gone down after a peak in May-June, it is still higher than it was before. This allows farmers to invest more in their land and buy pumps for irrigation or more seeds and fertiliser to increase their crop yields and make more profit...”, Stéphane Guimbert suggested.
Then, before the crisis actually vanishes and investors, currently sitting on their liquidities, come back to speculate, the latter will keep thinking twice before committing to any project, worried about the financial risks they would potentially take. To Stéphane Guimbert, it is time for Cambodia to do everything in its power to reduce these risks by improving the climate for investment. Moreover, Cambodia, according to the economist, must dare implementing “slightly more ambitious” expenditure policies, particularly when it comes to infrastructure projects and social protection nets, which will have a beneficial effect on potential growth in the medium term. The Cambodian government seems to be taking this track, judging by the 2009 budget, widely increased (US$1.8 billion) and adopted on Tuesday December 9th by the National Assembly.
The measures already taken by the government
In order to slow down inflation and lessen financial sector risks, the Central Bank tightened its monetary policy, as pointed out in the World Bank report. With further details, the WB described that the Central Bank doubled reserve requirements in July 2008, introduced a ceiling on loans to the real estate sector, tripled capital requirements in September 2008 and introduced restrictions on cash withdrawals from the Central Bank in October 2008.
The government continues to advance structural reforms, although with some slowdown at the time of the elections. Progress has also been made in upgrading the legal framework for investment, notably with the enactment of the Law on Secured Transactions, which makes it possible for a business to use its moveable and intangible assets as security for a loan. The World Bank pointed out that this had allowed Cambodia to skip 15 places in the 2009 “Doing Business” Report.
Last but not least, the World Bank assessment quoted another important reform recently enacted, namely the introduction in May 2008 of ASYCUDA, or Automated System for Customs Data, at the Port of Sihanoukville.
Friday, December 12, 2008
Fresh violence in Athens, man hurt
Fresh violence in Athens, man hurt
Youngsters hurl stones at riot police outside the Polytechnic University in Athens on Wednesday. EPAATHENS: Students pelted at least six police stations with rocks in hit-and-run attacks in Athens yesterday, as sporadic violence continued following five days of rioting over the death of a teenager in a police shooting.
Authorities said at least one man was injured and hospitalised, while across the capital scores of high school students blocked busy roads and overturned police cars.
At least 70 people have been injured since Saturday when the rioting broke out within hours of the killing of 15-year-old Alexandros Grigoropoulos. Hundreds of stores have been damaged or destroyed.
Prime Minister Costas Karamanlis has ignored opposition calls for early elections and promised shopkeepers affected by riots generous compensation, including 10,000 (464,300 baht) handouts to cover short-term needs.
Although no major protests were planned yesterday, tension persisted in Athens and the northern city of Thessaloniki, students occupying their high schools and university faculties. They planned a demonstration in Athens today.
Authorities have renewed appeals for calm, with influential church leaders joining in attempts to ease tension.
While being generally tolerant of occasional outbreaks of violence during frequent demonstrations, Greeks have been shocked by the ferocity displayed by teenager rioters and the extent of the destruction.
‘‘Is this our youth?’’ exclaimed an elderly woman as she picked her way past the rubble of a burned out shop near the Athens Polytechnic, where some of the most severe rioting took place. ‘‘Who needs youth like this? Why don’t they go and burn the prime minister’s house? What fault was it of these people [who lost their store]?’’
Two separate opinion polls published on Wednesday, before the aid package was announced, showed 68% of Greeks disapproved of the government’s handling of the crisis, and gave a nearly 5 percentage-point lead to the opposition Socialists.
The exact circumstances of the death are disputed.
Two police officers charged in the shooting said they had come under attack by rock-throwing youths, and that one of the officers fired warning shots. Witnesses who have spoken to the media disputed that account.
A prosecutor ordered the two officers remanded in custody late on Wednesday, pending trial. No date has been set.
hurl – to throw something with a lot of force
pelt – to throw objects with force at someone or something
sporadic – not regular or frequent
scores – a large number of people or things (one score is 20)
ignore – to not consider something, or to not let it influence you
generous – more than is usual or expected
compensation – money that someone receives because something bad has happened to them
handout – an amount of money or goods given to people who need them
tension – the feeling caused by a lack of trust between people, groups, or countries who do not agree about something and may attack each other
persist – to continue to exist
demonstration – an occasion when a large group of people protest about something
appeal – an urgent request
tolerant – willing to accept
occasional – happening sometimes but not frequently or regularly
outbreak – the sudden start of war, disease, violence, etc.
ferocity – violence or extreme force
extent – the size or degree to which something happens
rubble – broken pieces of stone and brick from buildings, walls, etc. that have been destroyed
crisis – an urgent, difficult or dangerous situation
circumstances – facts or conditions that affect a situation
disputed – not in agreement
witness – someone who sees something happen
account – a written or spoken report on something that has happened
prosecutor – a lawyer whose job is to prove in court that someone accused of a crime is guilty
remand in custody – to keep under police control until a trial is held
pending – waiting for something to happen
Posted by Terry Fredrickson at 09:36 AM
Fresh violence in Athens, man hurt
Listeng Here
At least 70 people have been injured since Saturday when the rioting broke out within hours of the killing of 15-year-old Alexandros Grigoropoulos. Hundreds of stores have been damaged or destroyed.
Prime Minister Costas Karamanlis has ignored opposition calls for early elections and promised shopkeepers affected by riots generous compensation, including 10,000 (464,300 baht) handouts to cover short-term needs.
Although no major protests were planned yesterday, tension persisted in Athens and the northern city of Thessaloniki, students occupying their high schools and university faculties. They planned a demonstration in Athens today.
Authorities have renewed appeals for calm, with influential church leaders joining in attempts to ease tension.
While being generally tolerant of occasional outbreaks of violence during frequent demonstrations, Greeks have been shocked by the ferocity displayed by teenager rioters and the extent of the destruction.
‘‘Is this our youth?’’ exclaimed an elderly woman as she picked her way past the rubble of a burned out shop near the Athens Polytechnic, where some of the most severe rioting took place. ‘‘Who needs youth like this? Why don’t they go and burn the prime minister’s house? What fault was it of these people [who lost their store]?’’
Two separate opinion polls published on Wednesday, before the aid package was announced, showed 68% of Greeks disapproved of the government’s handling of the crisis, and gave a nearly 5 percentage-point lead to the opposition Socialists.
The exact circumstances of the death are disputed.
Two police officers charged in the shooting said they had come under attack by rock-throwing youths, and that one of the officers fired warning shots. Witnesses who have spoken to the media disputed that account.
A prosecutor ordered the two officers remanded in custody late on Wednesday, pending trial. No date has been set.
hurl – to throw something with a lot of force
pelt – to throw objects with force at someone or something
sporadic – not regular or frequent
scores – a large number of people or things (one score is 20)
ignore – to not consider something, or to not let it influence you
generous – more than is usual or expected
compensation – money that someone receives because something bad has happened to them
handout – an amount of money or goods given to people who need them
tension – the feeling caused by a lack of trust between people, groups, or countries who do not agree about something and may attack each other
persist – to continue to exist
demonstration – an occasion when a large group of people protest about something
appeal – an urgent request
tolerant – willing to accept
occasional – happening sometimes but not frequently or regularly
outbreak – the sudden start of war, disease, violence, etc.
ferocity – violence or extreme force
extent – the size or degree to which something happens
rubble – broken pieces of stone and brick from buildings, walls, etc. that have been destroyed
crisis – an urgent, difficult or dangerous situation
circumstances – facts or conditions that affect a situation
disputed – not in agreement
witness – someone who sees something happen
account – a written or spoken report on something that has happened ย
prosecutor – a lawyer whose job is to prove in court that someone accused of a crime is guilty
remand in custody – to keep under police control until a trial is held
pending – waiting for something to happen
Posted by Terry Fredrickson at 09:36 AM
At least 70 people have been injured since Saturday when the rioting broke out within hours of the killing of 15-year-old Alexandros Grigoropoulos. Hundreds of stores have been damaged or destroyed.
Prime Minister Costas Karamanlis has ignored opposition calls for early elections and promised shopkeepers affected by riots generous compensation, including 10,000 (464,300 baht) handouts to cover short-term needs.
Although no major protests were planned yesterday, tension persisted in Athens and the northern city of Thessaloniki, students occupying their high schools and university faculties. They planned a demonstration in Athens today.
Authorities have renewed appeals for calm, with influential church leaders joining in attempts to ease tension.
While being generally tolerant of occasional outbreaks of violence during frequent demonstrations, Greeks have been shocked by the ferocity displayed by teenager rioters and the extent of the destruction.
‘‘Is this our youth?’’ exclaimed an elderly woman as she picked her way past the rubble of a burned out shop near the Athens Polytechnic, where some of the most severe rioting took place. ‘‘Who needs youth like this? Why don’t they go and burn the prime minister’s house? What fault was it of these people [who lost their store]?’’
Two separate opinion polls published on Wednesday, before the aid package was announced, showed 68% of Greeks disapproved of the government’s handling of the crisis, and gave a nearly 5 percentage-point lead to the opposition Socialists.
The exact circumstances of the death are disputed.
Two police officers charged in the shooting said they had come under attack by rock-throwing youths, and that one of the officers fired warning shots. Witnesses who have spoken to the media disputed that account.
A prosecutor ordered the two officers remanded in custody late on Wednesday, pending trial. No date has been set.
hurl – to throw something with a lot of force
pelt – to throw objects with force at someone or something
sporadic – not regular or frequent
scores – a large number of people or things (one score is 20)
ignore – to not consider something, or to not let it influence you
generous – more than is usual or expected
compensation – money that someone receives because something bad has happened to them
handout – an amount of money or goods given to people who need them
tension – the feeling caused by a lack of trust between people, groups, or countries who do not agree about something and may attack each other
persist – to continue to exist
demonstration – an occasion when a large group of people protest about something
appeal – an urgent request
tolerant – willing to accept
occasional – happening sometimes but not frequently or regularly
outbreak – the sudden start of war, disease, violence, etc.
ferocity – violence or extreme force
extent – the size or degree to which something happens
rubble – broken pieces of stone and brick from buildings, walls, etc. that have been destroyed
crisis – an urgent, difficult or dangerous situation
circumstances – facts or conditions that affect a situation
disputed – not in agreement
witness – someone who sees something happen
account – a written or spoken report on something that has happened ย
prosecutor – a lawyer whose job is to prove in court that someone accused of a crime is guilty
remand in custody – to keep under police control until a trial is held
pending – waiting for something to happen
Posted by Terry Fredrickson at 09:36 AM
Sunday, December 7, 2008
'Killing fields' survivor documents Cambodian genocide
Youk Chhang runs the Documentation Center of Cambodia, which has documented 20,000 mass graves.December 5, 2008
By Jennifer Hyde
CNN Producer
PHNOM PENH, Cambodia (CNN) -- Youk Chhang knows the truth about the Cambodian genocide perhaps better than anyone in the world.
He was 13 when the Khmer Rouge came to power. Separated from his family, forced into slave labor, beaten nearly to death for stealing rice for his pregnant sister, he saw the horrors firsthand.
His mother lost a daughter and four siblings; 30 years later she still searches for them, hoping they survived.
Chhang survived by eating whatever he could find. After the fall of the Khmer Rouge, it took him months to walk home to his family. Eventually, he fled to safety in the United States.
"Food was ... more important than God," Chhang said. "I always wish to have a bowl of rice. And one good night's sleep. That's all I wanted. I would do anything for it." Watch Youk Chhang talk about what he ate, how he survived »
But the ghosts of the genocide brought Chhang back to Cambodia. And for more than a decade, he has run the Documentation Center of Cambodia.
"DC-Cam," as it is known, is the world's largest repository of information about the Cambodian genocide. It holds hundreds of thousands of documents, photos and films as well as interviews with both survivors and former Khmer Rouge members.
Chhang said he believes the Khmer Rouge kept such careful records as a measure of their success -- a trophy of sorts.
"At each time when they kill a person, they document it so that they can measure their success one step forward," Chhang said. "If they kill two, then two step forward. If they kill five, then five step forward. So to them, it's a golden file. But I mean, to us it's crime against humanity."
DC-Cam has located and mapped nearly 200 prisons and 20,000 mass graves across the country. For Chhang and DC-Cam, the work is critical to preserving memory and promoting justice. Watch as Chhang takes CNN's Christiane Amanpour into DC-Cam's secured vault »
Today in Cambodia, a tribunal is under way to try five of the surviving leaders of the Khmer Rouge -- 30 years after their alleged crimes. DC-Cam is providing much of the evidence for use in the trial, evidence that makes plain the facts of the genocide, the scope of the losses and the personal and national grief.
Chhang said he hopes the tribunal will help Cambodians move forward -- and help heal the nation he loves.
But even now, the way forward is difficult. Chhang has dedicated a lifetime of work, research, preservation and advocacy to his mother, whose bravery and sacrifice inspired him.
Even though his mother survived and they shared much of the same pain and many of the same losses, the two do not talk about what happened. Some in Cambodia are anxious to forget and forgive. Others are angry and searching for justice.
Many, like Chhang, said that only by knowing, exploring and exposing the truth will Cambodia be able to rectify its past -- and secure a healthy future.
He was 13 when the Khmer Rouge came to power. Separated from his family, forced into slave labor, beaten nearly to death for stealing rice for his pregnant sister, he saw the horrors firsthand.
His mother lost a daughter and four siblings; 30 years later she still searches for them, hoping they survived.
Chhang survived by eating whatever he could find. After the fall of the Khmer Rouge, it took him months to walk home to his family. Eventually, he fled to safety in the United States.
"Food was ... more important than God," Chhang said. "I always wish to have a bowl of rice. And one good night's sleep. That's all I wanted. I would do anything for it." Watch Youk Chhang talk about what he ate, how he survived »
But the ghosts of the genocide brought Chhang back to Cambodia. And for more than a decade, he has run the Documentation Center of Cambodia.
"DC-Cam," as it is known, is the world's largest repository of information about the Cambodian genocide. It holds hundreds of thousands of documents, photos and films as well as interviews with both survivors and former Khmer Rouge members.
Chhang said he believes the Khmer Rouge kept such careful records as a measure of their success -- a trophy of sorts.
"At each time when they kill a person, they document it so that they can measure their success one step forward," Chhang said. "If they kill two, then two step forward. If they kill five, then five step forward. So to them, it's a golden file. But I mean, to us it's crime against humanity."
DC-Cam has located and mapped nearly 200 prisons and 20,000 mass graves across the country. For Chhang and DC-Cam, the work is critical to preserving memory and promoting justice. Watch as Chhang takes CNN's Christiane Amanpour into DC-Cam's secured vault »
Today in Cambodia, a tribunal is under way to try five of the surviving leaders of the Khmer Rouge -- 30 years after their alleged crimes. DC-Cam is providing much of the evidence for use in the trial, evidence that makes plain the facts of the genocide, the scope of the losses and the personal and national grief.
Chhang said he hopes the tribunal will help Cambodians move forward -- and help heal the nation he loves.
But even now, the way forward is difficult. Chhang has dedicated a lifetime of work, research, preservation and advocacy to his mother, whose bravery and sacrifice inspired him.
Even though his mother survived and they shared much of the same pain and many of the same losses, the two do not talk about what happened. Some in Cambodia are anxious to forget and forgive. Others are angry and searching for justice.
Many, like Chhang, said that only by knowing, exploring and exposing the truth will Cambodia be able to rectify its past -- and secure a healthy future.
Saturday, December 6, 2008
Will Cambodia's Court Survive To Try Khmer Rouge?
Saturday, 6 December 2008
By Eleanor Ainge Roy
Scoop (New Zealand)
Year Zero. April 17th, 1975. The Khmer Rouge soldiers enter Phnom Penh. Young men in black pyjama’s and chequered scarves walk the streets with a stealthy calm.
Within three days Phnom Penh’s entire population had been forced to leave the city. Nearly one million people were marched South, West and North to labour camps across Cambodia. The young, the weak and the sick were left by the side of the road where they fell, the first victims of Pol Pots genocidal regime.
By 1979, when the Vietnamese Army invaded, up to two million Cambodians had perished. They were killed by the Khmer Rouge’s drastic attempt to re-invent Cambodia as an agrarian society, to rid the land of bourgeoisie and intellectual influence, and to instigate Communism in its most heinous form. (Image: A victim of the Khmer Rouge.)
Following the Vietnamese liberation, Cambodia fell into more than a decade of civil war, and in 1997 requested aid from the UN in prosecuting the leaders of the Khmer Rouge, most of whom still roamed free across the land, some repentant for their crimes, others fighting from their stronghold on the border with Thailand.
In 2001 the Extraordinary Chambers in the Courts of Cambodia was created (known as the ECCC), a joint UN –Cambodia project to try the surviving leaders of the Khmer Rouge.
In 2003 it was agreed the ECCC would be made up of a combination of Cambodian and International staff, the first hybrid court of its kind - a Cambodian court subject to international standards. As the website boasts ‘It will provide a role model for court operations in Cambodia’.
The court officially started operating in 2006, and now nearing the end of 2008, the people of Cambodia are still waiting for justice to be served.
Oung Heng, 56, is one of few who still have patience for the beleaguered court.
"I think we have a very bitter history and it is very sad. We hope that nothing like this ever happens again in the future. The ECCC is a consolation for the survivors and we have to help them seek peace. It is a heavy lesson for our country to learn but very important"
The ECCC has been plagued by problems, some unavoidable, others self created.
Of most pressing concern for many is the age of the detained - five in custody and not one younger than sixty. When Cambodia's life expectancy is still just 59 years, all of those in detention are decidedly old men.
There are warning signs that have people worried. Seventy seven year old Khieu Samphan, former head of state, was hospitalized in May following a minor stroke, and former Foreign Minister Ieng Sary, 82 was hospitalized this year when medics discovered blood in his urine. There are very real fears afoot that some of the detained will not live to stand trial, and escape into death like their comrade Pol Pot in 1998.
The Court has also been plagued by allegations of kickbacks and corruption, a problem endemic to Cambodian courts, but a real embarrassment for a UN institution.
In mid 2007 an audit of the court was commissioned and undertaken by an independent international auditing firm. A UN investigation was also launched into the alleged corruption cases.
Although the investigation has concluded the results have still not been released, and public confidence in the court is now widely threatened.
“"I don't trust the courts here, I would do anything to avoid them.” says Heng. Justice is rarely served and you only end up paying a great deal of money. Everyone knows taking your problem to court will not get it solved ".
Hopes were high this year that the first trial would begin in September, starting with the trial of former Tuol Sleng prison chief sixty five year old Kaing Guek Eav - or ‘Duch’ as he is more commonly known. Duch oversaw the torture of more than 20,000 inmates at Tuol Sleng prison, also referred to as S-21, a former elementary school in the capital.
But appeals by Duch and others for release from pre-trial detention has stalled the start of his trial, as have requests for the translation of official court documents from Khmer and English into French for Duch’s lawyer - a process which has taken three months.
The victims of the Khmer Rouge are losing their patience. Nuon Sapan, 36, lost five members of his extended family to the regime.
"I think many people are beginning to question if these trials will ever get off the ground. So much money has been spent I think a lot of people are re-considering the necessity for 'justice''. Maybe all these millions of dollars would have been better spent on development, which would surely lead to improved courts in the future anyway"
And the ECCCs greatest problem of all is money. The court was initially granted funding of $60 million dollars from the Cambodian Government, the UN and donor countries. The court was expected to be in operation three years, and would be dissolved upon completion of the trials.
But in early 2008 the Court admitted it was near bankruptcy and requested extra funding of $30 million. On top of this the court projects that to complete its work it will require an extra $80 million over the coming years, though no official request has been made.
The extra $30 million has been granted, in drips and drabs, but it is unclear how much more the international community will invest in the project which, after eight years of planning and nearly three full years of operation, has yet to hear a single case.
Now that so much money has been spent the court cannot be abandoned. ECCC officials say the first trial should take place by February of 2009, but skeptics in Phnom Penh scoff at this hope, and cynicism is beginning to spread into further reaches of society.
As the months pass five old men lose a few more hairs from their grey heads, and sleep a little less soundlessly each night. The time is coming for them to face their crimes against humanity - but will they still be living when the court is ready for them?
*******
Eleanor Ainge Roy is a New Zealander working in Cambodia for the English language daily The Phnom Penh Post.
Within three days Phnom Penh’s entire population had been forced to leave the city. Nearly one million people were marched South, West and North to labour camps across Cambodia. The young, the weak and the sick were left by the side of the road where they fell, the first victims of Pol Pots genocidal regime.
By 1979, when the Vietnamese Army invaded, up to two million Cambodians had perished. They were killed by the Khmer Rouge’s drastic attempt to re-invent Cambodia as an agrarian society, to rid the land of bourgeoisie and intellectual influence, and to instigate Communism in its most heinous form. (Image: A victim of the Khmer Rouge.)
Following the Vietnamese liberation, Cambodia fell into more than a decade of civil war, and in 1997 requested aid from the UN in prosecuting the leaders of the Khmer Rouge, most of whom still roamed free across the land, some repentant for their crimes, others fighting from their stronghold on the border with Thailand.
In 2001 the Extraordinary Chambers in the Courts of Cambodia was created (known as the ECCC), a joint UN –Cambodia project to try the surviving leaders of the Khmer Rouge.
In 2003 it was agreed the ECCC would be made up of a combination of Cambodian and International staff, the first hybrid court of its kind - a Cambodian court subject to international standards. As the website boasts ‘It will provide a role model for court operations in Cambodia’.
The court officially started operating in 2006, and now nearing the end of 2008, the people of Cambodia are still waiting for justice to be served.
Oung Heng, 56, is one of few who still have patience for the beleaguered court.
"I think we have a very bitter history and it is very sad. We hope that nothing like this ever happens again in the future. The ECCC is a consolation for the survivors and we have to help them seek peace. It is a heavy lesson for our country to learn but very important"
The ECCC has been plagued by problems, some unavoidable, others self created.
Of most pressing concern for many is the age of the detained - five in custody and not one younger than sixty. When Cambodia's life expectancy is still just 59 years, all of those in detention are decidedly old men.
There are warning signs that have people worried. Seventy seven year old Khieu Samphan, former head of state, was hospitalized in May following a minor stroke, and former Foreign Minister Ieng Sary, 82 was hospitalized this year when medics discovered blood in his urine. There are very real fears afoot that some of the detained will not live to stand trial, and escape into death like their comrade Pol Pot in 1998.
The Court has also been plagued by allegations of kickbacks and corruption, a problem endemic to Cambodian courts, but a real embarrassment for a UN institution.
In mid 2007 an audit of the court was commissioned and undertaken by an independent international auditing firm. A UN investigation was also launched into the alleged corruption cases.
Although the investigation has concluded the results have still not been released, and public confidence in the court is now widely threatened.
“"I don't trust the courts here, I would do anything to avoid them.” says Heng. Justice is rarely served and you only end up paying a great deal of money. Everyone knows taking your problem to court will not get it solved ".
Hopes were high this year that the first trial would begin in September, starting with the trial of former Tuol Sleng prison chief sixty five year old Kaing Guek Eav - or ‘Duch’ as he is more commonly known. Duch oversaw the torture of more than 20,000 inmates at Tuol Sleng prison, also referred to as S-21, a former elementary school in the capital.
But appeals by Duch and others for release from pre-trial detention has stalled the start of his trial, as have requests for the translation of official court documents from Khmer and English into French for Duch’s lawyer - a process which has taken three months.
The victims of the Khmer Rouge are losing their patience. Nuon Sapan, 36, lost five members of his extended family to the regime.
"I think many people are beginning to question if these trials will ever get off the ground. So much money has been spent I think a lot of people are re-considering the necessity for 'justice''. Maybe all these millions of dollars would have been better spent on development, which would surely lead to improved courts in the future anyway"
And the ECCCs greatest problem of all is money. The court was initially granted funding of $60 million dollars from the Cambodian Government, the UN and donor countries. The court was expected to be in operation three years, and would be dissolved upon completion of the trials.
But in early 2008 the Court admitted it was near bankruptcy and requested extra funding of $30 million. On top of this the court projects that to complete its work it will require an extra $80 million over the coming years, though no official request has been made.
The extra $30 million has been granted, in drips and drabs, but it is unclear how much more the international community will invest in the project which, after eight years of planning and nearly three full years of operation, has yet to hear a single case.
Now that so much money has been spent the court cannot be abandoned. ECCC officials say the first trial should take place by February of 2009, but skeptics in Phnom Penh scoff at this hope, and cynicism is beginning to spread into further reaches of society.
As the months pass five old men lose a few more hairs from their grey heads, and sleep a little less soundlessly each night. The time is coming for them to face their crimes against humanity - but will they still be living when the court is ready for them?
*******
Eleanor Ainge Roy is a New Zealander working in Cambodia for the English language daily The Phnom Penh Post.
Cambodia Considers Allowing Foreign Ownership of Property
Cambodia Considers Allowing Foreign Ownership of Property
Friday, December 05, 2008
Global Property Guide
Cambodia real estate values are in freefall, and officials may soon allow foreigners to purchase buildings, though foreign ownership of land is still out of the question. For more information, read the following article from Global Property Guide:
Cambodia’s housing market is plummeting, and the government is considering a new law to allow foreigners to own buildings.
In 2005, the government amended an investment law to allow foreign ownership of buildings. However Cambodia’s property market was then experiencing one of the biggest booms in Asia. As a result, the law was never implemented and the idea floundered.
The boom saw prices surge 25 percent to 40 percent annually from 2004 to 2007. Land price increases were at first confined to Phnom Penh, Siem Reap and Sihanoukville, but the boom spread right across Cambodia. Other hot spots have been the border areas with Vietnam and Thailand and, to a lesser extent, Laos.
The capital’s most sought after locations fetched US$500 per square metre in 2000, but were sold at around US$4,000 or more per square metre along Norodom Boulevard, and US$2,500 per square metre in the central residential neighbourhood of Boeung Keng Kang (BKK).
A downturn started in July 2007 after the government announced new investment guidelines for developers.
Then in mid-2008, the bubble burst. The global financial crisis had hit Cambodia’s biggest investor, South Korea, and Korean investors began pulling out foreign assets to increase liquidity.
Real estate sales plummeted 30 percent to 50 percent from a year earlier.
To prevent the market from sliding further, the government is considering moves to allow foreigners to fully own buildings. Land ownership is still out of the question.
The housing boom
Cambodia has just witnessed one of the biggest real estate booms in Asia.
The reasons are obvious, as soon as you visit Cambodia. Phnom Penh is an attractive colonial city, with broad avenues, charming housing, a hip and young atmosphere, and a riverfront view. Siem Riep, which houses Angkor Wat, is even more charming, and has a cooler, more agreeable climate. There are agreeable beachfronts at Sihanoukville.
Cambodia is in a strategic position in the centre of IndoChina. Prices are laughably inexpensive (from a foreign perspective) and economic growth is exploding. The combination is hard to argue with.
Rentals are far higher than in days when Phnom Penh was a sleepy outpost where the only foreigners worked for aid organizations. In BKK I, according to a report in the Bangkok Post dated March 2008, a spacious, four-bedroom apartment with gym, swimming pool, parking and 24-hour security is on the market for US$3,000 a month. Nearby, the owners of a two-story, four-bedroom villa are looking for US$5,000 per month.
Phnom Penh has, as a result, experienced a construction boom. The government is aggressively pro-development, and squatters and other eyesores are simply cleared away, by a government which is in league with wealthy developers.
Part of the charm may be about to be lost as Phnom Penh succumbs to development. A 42-story US$250 million twin condominium, twice as high as Phnom Penh’s current tallest building, is being built in the most conspicuous position possible—at a busy corner leading to the city's Independence Monument. Residential units in the ‘Gold Tower 42’ project, which will not be completed till 2011, range from US$459,000 to US$1,500,000, according to developer Yon Woo Cambodia Co. Around 70 percent of the buyers are Cambodian. Around 40 percent of the sales have gone to speculative investors.
World City Co. Ltd., a South Korean company, is investing US$2 billion to build a satellite city called Camko City on a 120-hectare (300-acre) in northwest Phnom Penh. The single biggest foreign direct investment in to date, Camko City will include residential units, villas, condominiums, commercial and public facilities, trade and financial centres, office buildings, shopping centres, hotels, schools and hospitals. The project will include about 500 apartments with price tags ranging from US$112,000 to US$1.8 million a unit. Construction will take 3 1/2 years to complete. Nearly half of the units have already been sold.
Land values in Siem Reap have risen 25 percent to 30 percent every year for the last four years at least. The average price of land per square metre is now around the US$500 to US$600 mark. But premium land in downtown tourism districts is around US$1,600 per square metre.
Housing mortgages
Mortgage finance is now available in Cambodia. Acleda Bank entered the home lending market in January 2007; by March 1 2008 Acleda’s home loan portfolio was worth about $40 million. To get around foreclosure risk, given the corrupt legal system, Acleda keeps the title to the property until the loan is repaid.
ANZ also offers 15-year installment loans, allowing customers to borrow up to 60 percent of the home purchase price at variable interest rates, lending against registered titles.
Foreign-ownership schemes
Foreign individuals cannot buy real estate in Cambodia directly. But land can be held by foreigners on long (renewable) leases and through majority locally-owned companies incorporated in Cambodia. This company structure is the safest for a foreigner wishing to buy land. It is not totally bullet-proof, but in practice it works.
Foreigners typically take two Cambodian nationals as partners in the land-holding company, with the 51 percent share allocated so that the foreigner is the biggest single partner. Other safeguards include
1. Creating different classes of shares, giving the foreigner more rights;
2. Minority control documents;
3. A mortgage on the land, stipulating that the land cannot be transferred without the consent of the foreigner.
Leases up to 99 years are another common acceptable structure—the magnificent Raffles Hotel le Royal in Phnom Penh, for instance, is held on a simple lease.
Nominee structures should be avoided.
Friday, December 05, 2008
Global Property Guide
Cambodia real estate values are in freefall, and officials may soon allow foreigners to purchase buildings, though foreign ownership of land is still out of the question. For more information, read the following article from Global Property Guide:
Cambodia’s housing market is plummeting, and the government is considering a new law to allow foreigners to own buildings.
In 2005, the government amended an investment law to allow foreign ownership of buildings. However Cambodia’s property market was then experiencing one of the biggest booms in Asia. As a result, the law was never implemented and the idea floundered.
The boom saw prices surge 25 percent to 40 percent annually from 2004 to 2007. Land price increases were at first confined to Phnom Penh, Siem Reap and Sihanoukville, but the boom spread right across Cambodia. Other hot spots have been the border areas with Vietnam and Thailand and, to a lesser extent, Laos.
The capital’s most sought after locations fetched US$500 per square metre in 2000, but were sold at around US$4,000 or more per square metre along Norodom Boulevard, and US$2,500 per square metre in the central residential neighbourhood of Boeung Keng Kang (BKK).
A downturn started in July 2007 after the government announced new investment guidelines for developers.
Then in mid-2008, the bubble burst. The global financial crisis had hit Cambodia’s biggest investor, South Korea, and Korean investors began pulling out foreign assets to increase liquidity.
Real estate sales plummeted 30 percent to 50 percent from a year earlier.
To prevent the market from sliding further, the government is considering moves to allow foreigners to fully own buildings. Land ownership is still out of the question.
The housing boom
Cambodia has just witnessed one of the biggest real estate booms in Asia.
The reasons are obvious, as soon as you visit Cambodia. Phnom Penh is an attractive colonial city, with broad avenues, charming housing, a hip and young atmosphere, and a riverfront view. Siem Riep, which houses Angkor Wat, is even more charming, and has a cooler, more agreeable climate. There are agreeable beachfronts at Sihanoukville.
Cambodia is in a strategic position in the centre of IndoChina. Prices are laughably inexpensive (from a foreign perspective) and economic growth is exploding. The combination is hard to argue with.
Rentals are far higher than in days when Phnom Penh was a sleepy outpost where the only foreigners worked for aid organizations. In BKK I, according to a report in the Bangkok Post dated March 2008, a spacious, four-bedroom apartment with gym, swimming pool, parking and 24-hour security is on the market for US$3,000 a month. Nearby, the owners of a two-story, four-bedroom villa are looking for US$5,000 per month.
Phnom Penh has, as a result, experienced a construction boom. The government is aggressively pro-development, and squatters and other eyesores are simply cleared away, by a government which is in league with wealthy developers.
Part of the charm may be about to be lost as Phnom Penh succumbs to development. A 42-story US$250 million twin condominium, twice as high as Phnom Penh’s current tallest building, is being built in the most conspicuous position possible—at a busy corner leading to the city's Independence Monument. Residential units in the ‘Gold Tower 42’ project, which will not be completed till 2011, range from US$459,000 to US$1,500,000, according to developer Yon Woo Cambodia Co. Around 70 percent of the buyers are Cambodian. Around 40 percent of the sales have gone to speculative investors.
World City Co. Ltd., a South Korean company, is investing US$2 billion to build a satellite city called Camko City on a 120-hectare (300-acre) in northwest Phnom Penh. The single biggest foreign direct investment in to date, Camko City will include residential units, villas, condominiums, commercial and public facilities, trade and financial centres, office buildings, shopping centres, hotels, schools and hospitals. The project will include about 500 apartments with price tags ranging from US$112,000 to US$1.8 million a unit. Construction will take 3 1/2 years to complete. Nearly half of the units have already been sold.
Land values in Siem Reap have risen 25 percent to 30 percent every year for the last four years at least. The average price of land per square metre is now around the US$500 to US$600 mark. But premium land in downtown tourism districts is around US$1,600 per square metre.
Housing mortgages
Mortgage finance is now available in Cambodia. Acleda Bank entered the home lending market in January 2007; by March 1 2008 Acleda’s home loan portfolio was worth about $40 million. To get around foreclosure risk, given the corrupt legal system, Acleda keeps the title to the property until the loan is repaid.
ANZ also offers 15-year installment loans, allowing customers to borrow up to 60 percent of the home purchase price at variable interest rates, lending against registered titles.
Foreign-ownership schemes
Foreign individuals cannot buy real estate in Cambodia directly. But land can be held by foreigners on long (renewable) leases and through majority locally-owned companies incorporated in Cambodia. This company structure is the safest for a foreigner wishing to buy land. It is not totally bullet-proof, but in practice it works.
Foreigners typically take two Cambodian nationals as partners in the land-holding company, with the 51 percent share allocated so that the foreigner is the biggest single partner. Other safeguards include
1. Creating different classes of shares, giving the foreigner more rights;
2. Minority control documents;
3. A mortgage on the land, stipulating that the land cannot be transferred without the consent of the foreigner.
Leases up to 99 years are another common acceptable structure—the magnificent Raffles Hotel le Royal in Phnom Penh, for instance, is held on a simple lease.
Nominee structures should be avoided.
Friday, December 5, 2008
Two Crimes Added to Duch Indictment
Former Khmer Rouge prison chief S-21, Kaing Guek Eav better known as "Duch" (C) stands in a dock in the court room at the Extraodinary Chambers in the Courts of Cambodia in Phnom Penh. Cambodia's genocide court on Friday ruled that the former Khmer Rouge prison chief will face extra charges, paving the way for the first public trial of a leader of the brutal regime. (AFP/POOL/Mak Remissa)By Kong Sothanarith, VOA Khmer
Original report from Phnom Penh
05 December 2008
Duch will also be charged with murder and torture for his role as chief of Tuol Sleng prison under the Khmer Rouge.
Jailed Khmer Rouge prison chief Duch was handed two more counts in his atrocity crimes indictment Friday, but he was not charged under a legal principle that would link four other leaders to his alleged crimes.
Chief judge Prak Kimsan announced the decision of the Khmer Rouge tribunal’s Pre-Trial Chamber Friday, adding the crimes of murder and torture from Cambodia’s Penal Code to charges of war crimes and crimes against humanity.
The decision moved the tribunal one step closer to Duch's trial, expected in early 2009, the first ever for courts that have faltered from their inception, alarming critics who worry leaders will perish before they face trial.
Tribunal prosecutors in September lodged an appeal against the indictment, part of a so-called “closing order” by the investigating judges, noting Duch had not been indicted for the two crimes, which fall under the 1956 Penal Code.
Prosecutors also noted Duch, who real name is Kaing Kek Iev, was not indicted for all crimes committed in the notorious prison he ran, Tuol Sleng, known to the Khmer Rouge by the codename S-21.
The Pre-Trial judges said Friday they had found enough reason in the appeal to add the two crimes to Duch’s indictment.
They announced they had found enough cause for murder, because Duch had allegedly planned or incited killings at S-21 and the nearby site of mass graves, or “killing fields,” at Chhoeung Ek, a commune in Phnom Penh’s Dankao district.
Duch’s defense lawyers did not comment after the hearing, but in a brief submitted to the Pre-Trial Chamber in November, they expressed worry that the murder and torture claims could delay the court through further investigation.
However, Hong Kimsuon, a lawyer for the civil parties in Duch’s case, said Friday the new indictment would not extend the investigation or prolong the process.
“It is only an additional [two charges], and after that they will go forward to trial,” he said.
Judge Prak Kimsan also said Friday Duch would be detained until his trial and the case would now be forwarded to the Trial Chamber.
Prak Kimsan said the legal principal known as joint criminal enterprise, which could potentially link the other leaders with Duch’s crimes, had not been satisfactorily demonstrated.
Jailed Khmer Rouge prison chief Duch was handed two more counts in his atrocity crimes indictment Friday, but he was not charged under a legal principle that would link four other leaders to his alleged crimes.
Chief judge Prak Kimsan announced the decision of the Khmer Rouge tribunal’s Pre-Trial Chamber Friday, adding the crimes of murder and torture from Cambodia’s Penal Code to charges of war crimes and crimes against humanity.
The decision moved the tribunal one step closer to Duch's trial, expected in early 2009, the first ever for courts that have faltered from their inception, alarming critics who worry leaders will perish before they face trial.
Tribunal prosecutors in September lodged an appeal against the indictment, part of a so-called “closing order” by the investigating judges, noting Duch had not been indicted for the two crimes, which fall under the 1956 Penal Code.
Prosecutors also noted Duch, who real name is Kaing Kek Iev, was not indicted for all crimes committed in the notorious prison he ran, Tuol Sleng, known to the Khmer Rouge by the codename S-21.
The Pre-Trial judges said Friday they had found enough reason in the appeal to add the two crimes to Duch’s indictment.
They announced they had found enough cause for murder, because Duch had allegedly planned or incited killings at S-21 and the nearby site of mass graves, or “killing fields,” at Chhoeung Ek, a commune in Phnom Penh’s Dankao district.
Duch’s defense lawyers did not comment after the hearing, but in a brief submitted to the Pre-Trial Chamber in November, they expressed worry that the murder and torture claims could delay the court through further investigation.
However, Hong Kimsuon, a lawyer for the civil parties in Duch’s case, said Friday the new indictment would not extend the investigation or prolong the process.
“It is only an additional [two charges], and after that they will go forward to trial,” he said.
Judge Prak Kimsan also said Friday Duch would be detained until his trial and the case would now be forwarded to the Trial Chamber.
Prak Kimsan said the legal principal known as joint criminal enterprise, which could potentially link the other leaders with Duch’s crimes, had not been satisfactorily demonstrated.
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