CAMBODIA
ECONOMIC WATCH
OCTOBER 2008
ECONOMIC INSTITUTE of CAMBODIA
Research Director
:
Sok Hach
Project Team Leaders :
Neou Seiha
English Editor
:
Alanna Jorde
Authors
:
Neou Seiha
Chhun Dalin
EIC - Cambodia Economic Watch - October 2008
i
TABLE OF CONTENTS
List of Abbreviations and Acronyms
iii
List of Tables and Figures
v
Foreword
vi
Executive Summary
vii
Part I: Recent Economic Developments and Outlook
1
1. Cambodian Economic Growth
3
1.1. Agriculture
4
1.2. Industry
6
1.3. Service
8
2. Trade, Investment and Productivity
11
2.1. External Trade and Capital Movements
11
2.2. Private Investment and Stocks of Capital
13
2.3. Productivity
14
3. Price and Monetary Development
17
3.1. Inflation
17
3.2. Exchange rate
18
3.3. Money supply
19
3.4. Interest rate
20
4. Fiscal Development and External Debt
23
4.1. Budget Revenue
23
4.2. Budget Expenditure
24
4.3. Budget Financing and External Debt
26
5. Labor Force, Incomes, and Poverty
29
5.1. Employment
29
5.2. Incomes
30
5.3. Poverty
30
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EIC - Cambodia Economic Watch - October 2008
Part II: Structural Reforms: Current Implementation and Prospects
33
6. Banking and Financial Sector Reform
35
6.1. Banking and Non Bank Finance
35
6.2. Microfinance
37
7. Public Financial Management Reform
39
7.1. Reform Outcomes: Revenue Collection and Budget Disbursement
39
7.2. Overall PFMRP Revisited and Process for Platform 2
40
8. Trade Reform
45
8.1. Economic Integration
45
8.2. Trade Facilitation
47
9. Public Administrative Reform
49
9.1. Central Administration Reform
49
9.2. Sub-National Administrative Reform
50
10. Legal and Judicial Reform
53
10.1. Achievements and Progress of Legal Reform
53
10.2. Judicial and Alternative Dispute Resolution (ADR)
54
11. Land and Natural Resource Reform
57
11.1. Land Reform
57
11.2. Forestry Reform
58
11.3. F