Restoring war-affected institutions
Nearly 40 years of insecurity and internal conflicts have left their mark. The people of Cambodia remain traumatised by the reign of the Khmer Rouge (1975–79) whose bloody regime destroyed the country’s institutions as well as economic and social structures. The international community has done much to support the transition towards a state that holds a responsible attitude towards the people and provides public services fairly in a politically stable environment which promotes sustainable economic growth. Although much progress has been made, the challenges remain considerable: reducing poverty, improving healthcare and education, strengthening the rule of law.
Although the first local elections were held in 2002 the democratic process is still fragile. Greater efforts are needed to promote human rights and develop the legal system. The current reform of state structures gives priority to improving local governance. A decentralised administration close to the citizens should improve access to education and health for marginalised segments of the population and increase their participation in decisions on development matters that concern them.
Economic growth, for whose benefit?
Economic growth has been rapid in Cambodia, reaching 6.5% in 2012, thanks mainly to the textile industry and tourism. Agriculture, based in particular on rice, is a major source of employment and provides food security. This growth has however not been felt in rural areas where 80% of the population live and depend on subsistence farming.
To a great extent the speed of economic growth is due to the granting of land rights to foreign investors. This has resulted in a great many disputes and expulsions, aggravating social tensions. In recent years the government has tried to remedy the situation by distributing land rights to some 350,000 families. The fair distribution of land and guaranteed access are essential to socially equitable economic growth.