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Cambodia-Eco-and-Innovation-system
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- 2. Contents I. Brief Background II.Overview of Cambodia Economy III. Innovation System in Cambodia
- 3. Brief Background Geography Located inSoutheast Asia • The west and northwest: Thailand • The northeast: Laos • The east: Vietnam • The southwest: Gulf of Thailand. Land: 181,035 sq km
- 4. Brief Background • Name:Kingdom of Cambodia • Capital: Phnom Penh • Population: 15.33 million (World Bank, 2014) • Major group: Khmer • Minor and ethnic group: Cham (Khmer Muslim), Chinese, Vietnamese, Indian, Thai, Phnorng, Kuoy, Stieng, Tamil, etc. • Official language: Khmer • Religion: Theravada Buddhism (Official), Islam, Christianity, Hinduism • Literacy rate: 77.2% (CIA, 2015) • Currency: Riel • Exchange Rate: 4,080.3 Riel= 1 US Dollar (2015 est.) • Population below poverty line: 20% (2012 est.) • Political System: Multiparty democracy under a constitutional monarchy
- 5. Overview of Cambodia Economy oCambodia GDP o GDP per capita o GDP per capita in PPP o Cambodia’s GDP by sector o Export o Import o Inflation o Dollarization o Rectangular Policy
- 6. Cambodia GDP Annual GrowthRate Source: Ministry of Economic and Finance in Cambodia
- 7. Cambodia GDP $17.71 billion(2015 est.)
- 8. GDP per Capita 20142015e 2016p GDP (Billion Riel) 67740 74932 81934 Real GDP Growth Rate (%) 7.1% 6.9% 7.0% GDP Per Capita (US Dollar) 1138 1228 1325 Inflation 3.9% 3.0% 3.5% Exchange Rate 4039 4050 4050
- 9. GDP- Composition bySector Industry: 27.9% Agriculture: 28.6% Services: 43.6% (2015 est.)
- 10. GDP- Composition bySector Industries products Tourism, garments, construction, rice miling, fishing, wood and wood products, rubber, cement, gem mining, textiles, Agriculture products Rice, rubber, corn, vegetables, cashews, cassava, silk Industrial production growth rate: 9.6% (2015 est.)
- 11. Exports Total Exports • $7.867billion (2015 est.) • Country comparison to the world: 98 Export Partners • US 24.1% • UK 8.7%, • Germany 8.1%, • Canada 7%, • Japan 6.5%, • Vietnam 5.3%, • Thailand 5%, • Netherlands 4.6%, • China 4.1% (2014) Export Commodities • Clothing, • Timber • Rubber • Rice, • Fish, • Tobacco, • Footwear
- 12. Imports Total Import • $10.65billion (2015 est.) • Country comparison to the world: 95 Imports partners • Thailand 28.1% • China 20.6% • Vietnam 16.8% • Singapore 7% • Hong Kong 5.7% • South Korea 4.1% (2014) Imports commodities • Petroleum products, • Cigarettes • Gold • Construction materials • Machinery • Motor vehicles • Pharmaceutical products
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- 14. Impact of Dollarizationin Cambodia • The use of the dollar has accounted for 90% of the currency in circulation today and 97% of banking deposits. • The dollarization is happening in financial sector and in urban cities. • The home currency (the Riel) is commonly used by small and medium-sized enterprises and outside of urban areas.
- 15. Advantages of Dollarization •Allowed the public to switch from using gold to banknotes for transactions and to store wealth. • Prevented capital flight and promoted financial deepening. • Lowered the risk of currency devaluation. • Promoted awareness by policymakers of the need to avoid bank financing of public deficits. • Facilitated the integration process of Cambodian trade in the international economy.
- 16. Disadvantages of Dollarization •Undermines the effective conduct of monetary policy • The income from seignorage is minimized (No interest rate). • The effect of global financial crisis in 2008 to Cambodia.
- 17. De-dollarization Policies • Maintainmacroeconomic policies, aimed at keeping exchange rate and price stability • Create incentives to use the national currency. o All prices of goods and services should be indicated in riel. o The government may expand its riel requirement to the collection of non-tax revenue. o Bank intermediation in local currency needs to be developed (MFI).
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- 19. Rectangular Strategy PhaseIII Overarching environment for the implementation of the strategy o Peace, Political Stability, Security and Public Order o Favorable Macroeconomic and Financial Conditions; and Environmental Sustainability o Partnership in Development o Deepening Cambodia’s Integration into the Region and the World
- 20. Rectangular Strategy PhaseIII The Core of the Rectangular Strategy—Good Governance o Fighting corruption o Legal and Judicial Reforms o Public Administration Reform o Reform of Armed Forces
- 21. Rectangular Strategy PhaseIII The Four Strategic Rectangles and Respective sides o Rectangle I: Promotion of Agriculture Sector o Rectangle II: The Development of Physical Infrastructure o Rectangle III: Private Sector Development and Employment o Rectangle IV: Capacity Building and Human Resource Development
- 22. References • About Cambodia <http://www.tourismcambodia.org/contents/about_cambodia/index.php?view=language#comp> •Budget in Brief Fiscal Year 2016 <http://www.mef.gov.kh/documents/shares/budget/BUDGET_IN_BRIEF_Fiscal_Year_2016.pdf> • Cambodia GDP <http://www.tradingeconomics.com/cambodia/gdp/forecast> • Cambodia <http://data.worldbank.org/country/cambodia> • CIA Cambodia Economy <https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html> • Cambodia GDP and Economic Data <https://www.gfmag.com/global-data/country-data/cambodia-gdp-country-report> • Dollarization in Cambodia <http://www.nbc.org.kh/download_files/publication/others_eng/NoteMD117- 14_article_dollarization.pdf>
- 23. References • Rectangular StrategyIII <http://www.cambodiainvestment.gov.kh/content/uploads/2013/11/2013-Rectangular-Strategy-III- En8.pdf> • The Impact of Dollarization in Cambodia: Executive Senior Research Fellow Ken Odajima Gives Presentation at IMF-JICA Conference <http://jica-ri.jica.go.jp/topic/post_179.html> • The World Factbook <https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html>