PHNOM PENH, Cambodia — The streets of this riverside capital are thick with traffic, sport-utility vehicles favored by foreign aid workers as well as the more modest cars piloted by locals. Scaffolded construction sites dot the dusty downtown and locals spy Western investment bankers with the enthusiasm reserved elsewhere for celebrity sightings.
"It seems like a frontier town, with all of the excitement, all of the energy," says Nisha Agrawal, the World Bank's country manager.
The notion of a Cambodian boom may seem incongruous, if not slightly absurd. This remote corner of Southeast Asia, after all, remains best known for its "killing fields," where the genocidal Khmer Rouge slaughtered or starved at least 1.5 million of their countrymen.
But after a generation spent slumbering in the shadows of its fast-rising neighbors, Cambodia is on the move. The economy this year is expected to expand at a robust annual rate of 9.5% after three consecutive years of double-digit growth, the World Bank says.
U.S. brands fuel boom
Americans have fueled the boom with their purchases of Levi jeans, Gap (GPS) clothes and Nike (NKE) athletic shoes, all bearing made-in-Cambodia labels. Whether consumers will continue doing so, however, now depends on the complexities of U.S. trade law.
Cambodia's thriving garments industry has been protected since 2005 by U.S. restrictions on imports of clothing from China. But those limits expire by the end of 2008, potentially opening the door for China to seize market share at the expense of Cambodian producers.
China could grab 68% of the world apparel market, up from 50% today, says Roland Eng, the country's leading diplomat and a former Cambodian ambassador to the United States. "They will kill everybody," he says.
The government here is pinning its hopes on proposed U.S. legislation that would eliminate tariffs on products from the world's poorest countries, including Cambodia. This year, Cambodian clothing shipments to the USA are running at an annualized value of $2.6 billion, about twice the 2003 level, according to Commerce Department data. Without preferential access to the U.S. market, orders for Cambodian goods will plunge 35% as Chinese shipments soar, says Van Sou Ieng, chairman of the Garment Manufacturers' Association in Cambodia.
Factories here supply clothing to some of the USA's best-known brands, including Disney, (DIS) Sears (SHLD) and Wal-Mart. (WMT) They've been drawn to Cambodia, despite sky-high electricity costs, inadequate roads and pervasive corruption, because of an innovative program promoting good labor standards that began nine years ago with U.S. help.
The United States guaranteed Cambodia a specified amount of sales every year, encouraging the country's push to position itself as the sweatshop-free producer in a fiercely competitive global clothing market. "Cambodia is a special country," says Michael Kobori, vice president for global code of conduct at Levi Strauss, which buys its Signature model jeans from a Cambodian producer.
The San Francisco-based clothing company, which plans to continue relying on local suppliers after the limits on Chinese products are lifted, supports the tariff-elimination bill.
Prospects for approval of the measure, introduced by Rep. Jim McDermott, D-Wash., are cloudy. Rep. Charles Rangel, D-N.Y., the chairman of the House Ways and Means Committee, has endorsed the proposal, aimed at helping the world's poorest countries develop. But with public support for trade ebbing, and the economy weakening, lawmakers may shy in an election year from being seen as helping foreign workers.
The stakes for Cambodia's 14 million people in the coming U.S. debate are enormous. Even after the current boom, what the typical Cambodian earns in a year wouldn't buy a decent TV in the USA. (Per-capita income is just $550.) There are only 1,000 miles of paved roads in the entire country, which is roughly the size of Missouri, and only 10% of the population has access to electricity.
Scars remain from turmoil
Scars from the 1975-79 Khmer Rouge era remain vivid. Under radical leader Pol Pot, black-clad guerillas systematically murdered lawyers, doctors, teachers — sometimes even those wearing eyeglasses — in a demented bid to return Cambodia to a pristine, agricultural existence. The Khmer Rouge ultimately were ousted by a Vietnamese invasion.
Only in 1999 did the country enjoy its first entirely peaceful year in three decades. Today, a surge in tourism is clear evidence of the turnaround. For the first 10 months of this year, Cambodia recorded 1.6 million foreign visitors vs. 286,524 in 1998.
The stunning temples of Angkor Wat are the country's principal draw. On typical days, the extraordinary 12th-century monuments are packed shoulder to shoulder with hordes of South Korean, Japanese and American tourists.
Heart and soul of economy
While the country harbors long-term hopes of developing possible offshore oil deposits, the garments industry is the heart and soul of its economy. From virtually nothing in 1994, the industry has grown to an estimated $3 billion in exports and directly employs 355,000 workers. They in turn support an estimated 1.7 million people with regular payments to family members, who often live in poor rural villages with little economic activity, according to the International Finance Corp.
Sokla Sem, 29, came to the capital to find factory work 11 years ago after the death of her father. Working for a Chinese-owned shirt factory, she and her sister made a combined monthly salary of $150. Of that amount, they sent two-thirds to their mother to pay for the education of an older brother. Sem, like many young women here, has only a fourth-grade education.
After being fired in a dispute over pay, she became a labor activist. But she hasn't forgotten the economic imperative that drives the country's leading industry.
"It was very difficult for me when I started working in the factory," she says. "But I didn't care about the difficulty; I cared about making money that I could send home."
Dec 19, 2007
Cambodia's boom depends on USA
Working poor
Working poor is a term used to describe individuals and families who maintain regular employment but remain in relative poverty due to low levels of pay and dependent expenses. Officially, in the United States, the working poor are defined as individuals who spent at least 27 weeks in the labor force (working or looking for work), but whose incomes fell below the official poverty level. Often, those defined as "working poor" have negative net worth and lack the ability to escape personal and economic contingencies.
The working poor are often distinguished from paupers, poor who are supported by government aid or charity.
There are various issues to consider when studying the extent, cause and definition of "working poor" and "working poor" conditions. One such issue is the definition of poverty. Given on a global scale, the definition and requisites to be considered impoverished or in poverty may sharply contrast the conditions of any one specific country. When viewed at a high level, the global definitions of poverty are typically much lower than that of more prosperous countries. In areas such as the United States, England, France and other more prosperous nations, the poverty line is much higher than that of countries with typically lower or even negative economic conditions. When considering localized differences, such as in the United States, differences in market rates of goods and services may impact the effects of poverty.
Yet another consideration to be made with a global view is data collection and reporting methods. With no globally accepted standards on data recording and reporting, variances may be obscured, omit or inflate specific factors considered in determining poverty levels or measures of the working poor.
The "working poor" In the United States
The nature and extent of the working poor in the United States is a contested subject; while both sides of the political spectrum acknowledge that there are non-negligible numbers of working people living near or below the poverty line, there is disagreement as to whether or not this reflects a genuine flaw with current economic policy, and what the response should be.
In the United States, according to the government Bureau of Labor Statistics, there were 6.4 million working poor in 2000 [1]; by 2003 the number had grown [2]. In 2004, Business Week suggested [3] that "the share of the workforce earning subpoverty pay [is] 24% [in 2003]".
The question of the working poor, how many there are and the reasons for their situation, remains controversial. For example, the Business Week magazine article cited above, which was generally critical of the political response to the problem of the working poor, itself received criticism from Townhall.com columnist Thomas Sowell, who claimed that the magazine had, among other sins, inflated statistics.
Sowell claimed that "census data show that most people who are working are not poor and most people who are poor are not working", and that workers who were part-time or under the age of 25 should not be counted as working poor [4]. Citing the author Horatio Alger, Sowell suggested that the intelligentsia had dismissed words such as moxie and gumption, and that the working poor themselves, and not larger socioeconomic factors such as the lack of labor unions and the changing nature of employment, as suggested by Business Week, were to blame for the situation.
Possible problems faced by the working poor
Workers without marketable skills may face low wages, potential economic exploitation, unpleasant working conditions, and few opportunities to attain skills that would allow them to escape their personal and economic situations. Unexpected costs (such as medical or repair costs) can substantially decrease the economic ability of the working poor to manage their lives.
In some cases, members of the working poor work at multiple part-time jobs, which require nearly full-time commitment but are classified as "part time". In this situation some benefits, like medical insurance, are not paid by employers [5]. This situation is sometimes referred to as precarious employment.
A common expression of working poor conditions states that such individuals often live from "paycheck to paycheck".
Policy responses
Many governments have initiated programs with the proclaimed intention of assisting those who may be considered impoverished or working poor. Much debate is centered upon the efficacy of such programs. In the United States, fiscal conservatives tend to argue in favor of the approaches recommended by Trickle-down economics, in which stimulation of the investment sector is assumed to lead to increased job opportunities and a better economy. Examples of conservative measures include lowering taxes and reducing governmental regulation of business and trade. Fiscal progressives tend toward a more direct approach, usually with increased taxes and regulation. The government funds social welfare programs like food stamps and vouchers, subsidized housing, meal plans, and healthcare, and regulating wages, or by helping the working poor become more competitive in the labor market, through such measures as job training programs, low-interest student loans, and small business loans.
Dec 18, 2007
Cambodia, Thailand sign single tourist visa deal
"This means a tourist can get a visa either for Thailand or Cambodia and can visit the two nations," Cambodian Foreign Minister Hor Namhong said after signing the agreement with visiting Thai counterpart Nitya Pibulsonggram.
The deal was the first of a hoped for series also involving Myanmar, Laos and Vietnam, he said.
"We want to see the five countries become one tourist destination," Hor Namhong said.
Thailand is aiming to have 15 million foreign tourists this year while Cambodia had 1.7 million last year, most of whom visited the ancient Angkor temples.
Earlier this month, Air Finland began the first commercial direct flight between Europe and Cambodia, where the tourism industry is growing 25 percent per year.
(Reporting by Ek Madra; Editing by Michael Battye)
Dec 10, 2007
Air Finland's arrival creates direct Cambodia-Europe air route for the first time
PHNOM PENH, Cambodia - A direct commercial air route between Cambodia and Europe was opened for the first time Friday with the arrival of an Air Finland flight, officials said.
The Air Finland Boeing 757 landed with 215 passengers on board at the main airport in Phnom Penh, Cambodia's capital, said Khek Norinda, a spokesman for the airport's operator, the French company Scoot Concessionaire Des A�roports.
Khek Norinda said Air Finland plans to operate three charter flights to Cambodia each month using its 219-seat B-757.
The plane's arrival Friday was the first by a European commercial airline, he said, saying he hoped the direct link would help increase the number of European visitors to Cambodia and reduce the country's dependence on neighboring countries' airports and carriers.
"However, we need more time to assess accurately the effects of direct flights from European countries. We're just at the beginning," he said.
Air travel to and from Cambodia is currently dominated by foreign-owned airlines.
Last month, the government signed a joint venture agreement with two Indonesian companies to form a national airline to tap the country's growing tourism industry.
Cambodia received 1.4 million visitors between January and September this year, up nearly 19 percent from the same period in 2006, according to statistics by the Tourism Ministry. It has forecast that total tourist arrivals this year will exceed last year's 1.7 million.
The ministry said South Korean, Japanese and U.S. nationals respectively lead the list of foreign arrivals in Cambodia.
Dec 6, 2007
Korea, Australia, ADB provide US$165.5mil for VN, Cambodia road improvements
VietNamNet Bridge - Republic of Korea, Australia and Asian Development Bank (ADB) are providing $165.5 million in loans and grants to Vietnam and Cambodia to rehabilitate transport infrastructure to promote cross-border trade and support economic development in the Greater Mekong Sub-region.
ADB will provide a US$75 million loan to Vietnam and a US$7 million loan to Cambodia to help fund the Greater Mekong Sub-region Southern Coastal Corridor Project. South Korea will extend a US$50 million loan to Vietnam through the Economic Development Cooperation Fund, which provides official development assistance to developing countries. Australia will extend grants of US$25.5 million to Vietnam and US$8 million to Cambodia.
Vietnam will contribute US$58.2 million and Cambodia will provide US$3.7 million to complete funding for the project.
“Cooperation in the transport sector has been given a high priority in the Greater Mekong Sub-region because the poor state of transport infrastructure is a major constraint to economic growth, trade and other forms of cooperation,” Paul Vallely, senior transport specialist of ADB’s Southeast Asia Department, said in an announcement the bank released on December 5.
The Greater Mekong Sub-region is composed of countries sharing the Mekong River – Cambodia, People’s Republic of China, Lao People’s Democratic Republic, Myanmar, Thailand and Vietnam.
The Southern Coastal Corridor runs for 924 kilometers from Bangkok through Cambodia
and ends at Nam Can in the south of Vietnam. The project specifically involves the rehabilitation of 15 kilometers of national road in Cambodia that links to the border of Vietnam and the improvement of 96.1 kilometers of national highway in Vietnam, which includes the construction of two bridges across the Cai Be and Cai Lon rivers. New cross-border facilities will also be developed.
The Cambodian section of the project is expected to be completed in June 2012 and the Vietnam section in December 2014.
The project should result in reduced travel times and lower vehicle operating costs along the corridor, which would encourage economic activities, provide employment opportunities and improve access to social services.
Dec 3, 2007
Mummified dinosaur may have outrun T Rex
By RANDOLPH E. SCHMID, AP Science Writer
1 hour, 36 minutes ago
WASHINGTON - One of the most complete dinosaur mummies ever found is revealing secrets locked away for millions of years, bringing researchers as close as they will ever get to touching a live dino.
The fossilized duckbilled hadrosaur is so well preserved that scientists have been able to calculate its muscle mass and learn that it was more muscular than thought, probably giving it the ability to outrun predators such as T. rex.
While they call it a mummy, the dinosaur is not really preserved like King Tut was. The dinosaur body has been fossilized into stone. Unlike the collections of bones found in museums, this hadrosaur came complete with skin, ligaments, tendons and possibly some internal organs, according to researchers.
The study is not yet complete, but scientists have concluded that hadrosaurs were bigger — 3 1/2 tons and up to 40 feet long — and stronger than had been known, were quick and flexible and had skin with scales that may have been striped.
"Oh, the skin is wonderful," paleontologist Phillip Manning of Manchester University in England rhapsodized, admitting to a "glazed look in my eye."
"It's unbelievable when you look at it for the first time," he said in a telephone interview. "There is depth and structure to the skin. The level of detail expressed in the skin is just breathtaking."
Manning said there is a pattern of banding to the larger and smaller scales on the skin. Because it has been fossilized researchers do not know the skin color. Looking at it in monochrome shows a striped pattern.
He notes that in modern reptiles, such a pattern is often associated with color change.
The fossil was found in 1999 in North Dakota and now is nicknamed "Dakota." It is being analyzed in the world's largest CT scanner, operated by the Boeing Co. The machine usually is used for space shuttle engines and other large objects. Researchers hope the technology will help them learn more about the fossilized insides of the creature.
"It's a definite case of watch this space," Manning said. "We are trying to be very conservative, very careful."
But they have learned enough so far to produce two books and a television program. The TV special, "Dino Autopsy," will air on the National Geographic channel Dec. 9. National Geographic Society partly funded the research.
A children's book, "DinoMummy: The Life, Death, and Discovery of Dakota, a Dinosaur From Hell Creek," goes on sale Tuesday and an adult book, "Grave Secrets of Dinosaurs: Soft Tissues and Hard Science," will be available in January.
Soft parts of dead animals normally decompose rapidly after death. Because of chemical conditions where this animal died, fossilization — replacement of tissues by minerals — took place faster than the decomposition, leaving mineralized portions of the tissue.
That does not mean DNA, the building blocks of life, can be recovered, Manning said. Some has been recovered from frozen mammoths up to 1 million years old, he said. At the age of this dinosaur, 65 million to 67 million years old, "the chance of finding DNA is remote," he said.
A Manchester colleague, Roy Wogelius, who also worked on the dinosaur, said "one thing that we are very confident of is that we do have some organic molecular breakdown products present." That look at chemicals associated with the animal is still research in progress.
Matthew Carrano, a paleontologist at the Smithsonian's National Museum of Natural History, said he could not comment in detail about the find because he had not seen the research. But, he added, "Any time we can get a glimpse of the soft anatomy of a dinosaur, that's significant."
The findings from Dakota may cause museums to rethink their dinosaur displays.
Most dinosaur skeletons in museums, for example, show the vertebrae right next to one another. The researchers looking at Dakota found a gap of about a centimeter — about 0.4 inch — between each one.
That indicates there may have been a disk or other material between them, allowing more flexibility and meaning the animal was actually longer than what is shown in a museum. On large animals, adding the space could make them a yard longer or more, Manning said.
Because ligaments and tendons were preserved, as well as other parts of Dakota, researchers could to calculate its muscle mass, showing it was stronger and potentially faster than had been known.
They estimated the hadrosaur's top speed at about 28 miles per hour, 10 mph faster than the giant T. Rex is thought to have been able to run.
"It's very logical, though, that a hadrosaur could run faster than a T. rex. It's a major prey animal and it doesn't have big horns on its head like triceratops. Hadrosaurs didn't have much in the way of defense systems, so they probably relied on fleet of foot," Manning said.
Dakota was discovered by Tyler Lyson, then a teenager who liked hunting for fossils on his family ranch. Lyson, who is currently working on his doctorate degree in paleontology at Yale University, founded the Marmarth Research Foundation, an organization dedicated to the excavation, preservation and study of dinosaurs.
Dec 2, 2007
Australian Adam Groom Holds One-shot Lead Into Last Round Of Cambodian Open
SIEM REAP, CAMBODIA: Australian Adam Groom edged to a one-shot lead after the third round of the Cambodian Open on Saturday (1 Dec), with a bunched field still in contention for the event's inaugural title.
Groom shot a 2-under 70 to hold a one-stroke advantage over American Bryan Saltus, who had a 71 on the lengthy 7,226-yard Phokeethra course _ one of only three golfcourses in the Southeast Asian nation.
Three strokes further back in the $300,000 (?203,238) event were American Anthony Kang (71 on Saturday) and the Thai trio of Chapchai Nirat (68), Thaworn Wiratchant (67) and Prom Meesawat (69).
"Knowing that I have secured my card for next year has helped me relax on course this week," the 28-year-old Groom said. "I havent played four rounds under par this season and doing that this week would be a great result."
"The conditions are not that tough and with a solid game tomorrow, it might just work out."
Groom recorded three birdies and a bogey in his quest for a first Asian Tour title this season.
Saltus had two birdies and a bogey and said a round of 65 in the Hong Kong Open had turned around his approach.
"Thats when I realised that I could finally string together one solid round and I have moved forward since then," Saltus said.
"I need to be more focused and I will do so by gunning for the number one spot tomorrow."
Thaworn threatened to storm up to the leaders after firing four birdies in as many holes to start his third round, and although he later dropped two shots, the former Asian Tour number one still feels in contention.
"Four strokes off the pace is possible to catch up but it's going to be quite a challenge for me because this course does not suit my game," Thaworn said.
The Cambodian Open, played near the nation's prime tourist attraction of Angkor Wat temple, is the penultimate event on the Asian Tour. (AP)