So, here I am, in Phnom Penh, Cambodia. This part of the world was once stricken by war, mass killings and famine. Today, Cambodia is a young country of 14 million but remains one of the poorest countries in Asia. Most of Phnom Penh and parts of Siem Reap and Battambang have become more urbanized, but more than 4.5 million people are still employed in the primary sector. Agriculture accounts for about 30% of GDP. In 2006 and 2007, the country recorded real growth of above 10%; but estimates for 2009 have been significantly adjusted downwards due to the global economic downturn. Per capita annual income is approximately $600. A university graduate could earn about $200 to $300 per month but more than 20% of the population, mostly in rural areas, still live with less than $1 each day. Since the end of the Cold War, Cambodia’s devastated economy picked up growth. The garment industry and tourism (almost 50% to Siem Reap) have especially thrived. Cambodia’s open and untapped economy also attracted much foreign direct investment (FDI). In recent years, companies from Korea and China have especially propped up the construction and real estate sectors.
Phnom Penh totally exceeded my expectations as capital of a Least Developed Country. The streets are roaring with Toyota cars and trendy-looking motorbikes. There is no lack of French, Korean, Chinese and Vietnamese restaurants. There is a western-style grocery store called Lucky where you can find all sorts of imported products as well as Korean and Japanese markets. For just USD$10 each month, you can install cable TV with CNN, BBC, French/German/Italian channels, Taiwanese channels, CCTV-1 and CCTV-4, as well as regional channels from Singapore, Laos and Vietnam. Basically, for foreigners, just a bit of money can enable a decent standard of living.
Surely, poverty exists but most poor people are hidden. For instance, garment factories are often located in the suburbs of Phnom Penh or in nearby provinces. With the economic downturn, many workers have been dismissed but they still hang around the factory area. In the central districts, the government has attempted to eradicate urban slums and relocate poor people into small flat or apartments. Those vacant dilapidated buildings can then be pulled down and the land can be sold to land developers. Sex industry is also sizable in Phnom Penh. Some women work as bar hostesses and massagers (indirect sex work) while others work in brothels (direct sex work). As a result of cultural taboo, the hardships of these women are seldom publicized. Further, outside the city, many rural peoples engage in low productivity agricultural activities. Without proper training on farming techniques and business management, they have little access to markets and earn barely enough for living. However, walking down Phnom Penh busiest streets, such as Sihanouk, Monivong, Norodom, such faces are rare to be seen.
My motivation to come to Cambodia is to learn about economic development and how field offices of development agencies work. In the next six months, I will intern at the International Labour Organization, a United Nations agency that has played a significant role in upholding workers’ rights, empowering poor people and encouraging entrepreneurship in Cambodia. It’s my hopes that this internship will open my eyes to the positive forces in Cambodia.
Sources: Asian Development Bank Economic Data
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