Global Business Management Country Report-Cambodia. Political Economy. Group 6

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1 Global Business Management Country Report-Cambodia Political Economy Rena Danny Philip Group 6 David Mendy Ruud

2 Outline Political Situation Governmental Structure Legislative Power and Law Global Relations

3 Political Situation

4 Political Situation History French Colonization French & Japan Colonization Kingdom of Cambodia ~ Rath Kampuchea Khmer Republic Khmer Rouge S.P Kampuchea Rath Kampuchea Kingdom of Cambodia ~

5 French&Japan Colonization Cambodia was ruled as a vassal between its neighbors until it was colonized by the French in the mid-19th century.

6 Khmer Republic Problems: 1. Army 2. Corruption 3. Inflation

7 Khmer Rouge regime 1. Action 2. Autogenocide 3. Thinking 4. Other aspects.

8 Khmer Rouge regime After taking power, the Khmer Rouge leadership renamed the country Democratic Kampuchea. The Khmer Rouge forced around two million people from the cities to the country to take up work in agriculture. They forced many people out of their homes and ignored many basic human freedoms. 1. Action 2. wearing 3. Thinking 4. Other aspects.

9 Vietnamese occupation and Transition Vietnamese troops invaded Cambodia in response to border raids by the Khmer Rouge. Changing name to the State of Cambodia (SOC) and from socialism to free-market when Vietnam withdrew in With the help of the United Nations, internal conflict within Cambodia was resolved with a peace accord which was signed in Paris in 1991.

10 Globalizing in Cambodia Peace efforts began in Paris in 1989 under the State of Cambodia, culminating two years later in October 1991 in a comprehensive peace settlement. The UN was given a mandate to enforce a ceasefire and deal with refugees and disarmament known as the United Nations Transitional Authority in Cambodia (UNTAC)

11 Governmental Structure National Flag National Emblem Political system: Constitutional Monarchy based on liberal democracy and pluralism. National government: Coalition Government National legislature -National Assembly: "supreme organ of state power -Senate

12 Elections: the king chosen by a Royal Throne Council from among all eligible males of royal descent; following legislative elections, a member of the majority party or majority coalition named prime minister by the Chairman of the National Assembly and appointed by the king Head of State: King Norodom Sihamoni (since 29 October 2004) Succession to the throne Head of Government: HE Prime Minister Samdech Hun Sen Key Ministers: -Foreign Affairs/Deputy Prime Minister Hor Nam Hong (CPP) - Commerce/Trade - Cham Prasidh (CPP)

13 Military Royal Cambodian Armed Forces: The Commander-in- Chief is HM King Norodom Sihamoni - Royal Cambodian Army - Royal Cambodian Navy - Royal Cambodian Air Force - Royal Gendarmerie

14 Administrative divisions Provincial and municipal administrations participate in the creation of nation budget; they also issue land titles and license businesses.

15 Legislative Power and Law Legislative branch: Senate (61 seats) National Assembly (123 seats) Judicial branch: Supreme Council of the Magistracy Supreme Court (and lower courts)

16 Legislative Power and Law Cambodian People's Party (CPP) Cambodian National Rescue Party (NRP) Merger between the former Human Rights Party (HRP) and the Sam Rangsi Party(SRP) National United Front for an Independent, Neutral, Peaceful, and Cooperative Cambodia (FUNCINPEC) Nationalist Party (NP) Former Norodom Ranariddh Party or NRP [SAO RANY]

17 International relations Why do they need international relations? Has an international relationship always benefits? Does the supported money reach the population? What's the other side of a international relations?

18 Combodia relations About half of the state budget is supported by the international donor community OECD countries Since the signing of the Paris Peace Accords in 1991 the Cambodian Government has recognised the need for international diplomatic support Cambodia has a solid relationship with Thailand but this has long been complicated

19 Relation to the U.S.A. US Interests Include promoting good governance (democracy) Human rights Reducing the threat of terrorism Facilitating trade Bringing the country's former Khmer Rouge leaders to justice Cambodia is the third largest recipient of United States foreign aid in Southeast Asia Cambodia progress Control of the spread of infectious diseases (HIV/AIDS) anti-human trafficking measures development of a civil society improved labor practices counterterrorism efforts better fiscal policies

20 Relation to the U.S.A.

21 Actual situation Hun Shen (prime minister) positve effects Stable Consistent - > predictable Economic growth Open door to foreign investment negative effects massive obstacles to justice impunity for state agents disabilities of assembly and freedom association the systematic looting of the country's natural resources and endemic corruption.

22 Relationship with China Aug 1296, Chinese diplomat under the Temur Kahn, Emperor of Chengzong of Yuan visited Angkor of the Khmer Empire. Still maintained good relationship reconcile the country through the formation of a four-party government. No tie with Vietnamese-installed government under Hun Sen. The Political Economy of Cambodia-China Relations, Academic Sinica Conference, April 23-24, 2009, ROC

23 Effects to economy April 2006, Wen Jia-Bao visited Cambodia and pledged US $600 million in aid and loads. 2007, China became Cambodia s thirdlargest donor, ahead of the US, pledging US $91 million in aid. 2009, the most donor of Cambodia for government budget, pledging US $257 million. The Political Economy of Cambodia-China Relations, Academic Sinica Conference, April 23-24, 2009, ROC

24 How about Taiwan? Beijing ensures that Taiwan, the largest foreign investor in Cambodia remains politically isolated. Aug 1997, Hun Sen announced that the Taiwanese representative office in Phnom Penh was being shut down, despite Taiwan being one of Cambodia's major investors. Hun Sen s expulsion of Taiwan s liaison office endeared him to China and opened the door for Chinese diplomatic initiatives. The Political Economy of Cambodia-China Relations, Academic Sinica Conference, April 23-24, 2009, ROC

25 Association of Southeast Asian Nations A geo-political and economic organization of ten countries located in Southeast Asia (8 th August 1967). Aims include accelerate economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries.

26 With ASEAN Nations 23 July 1997, Cambodia joined ASEAN together with Laos and Burma, but was deferred due to the country's internal political struggle. The country later joined on 30 April 1999, following the stabilisation of its government.

27 Other relations A member of the United Nations, the World Bank, and the International Monetary Fund. A member of the Asian Development Bank (ADB), ASEAN, and joined the WTO (October 13, 2004).

28 Thank you

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