You are here
Brown Bag Lecture Series
Brown Bag Lecture Series
Impact of the Global Crisis on Cambodia’s Politics and Economy
Co-sponsor: WEAI as part of the “Global Financial Crisis” series
Kheang Un, Assistant Director of the Center for Southeast Asian Studies at Northern Illinois University, spoke about the impact of the global financial crisis on the economics and politics of Cambodia. Although it was not greatly affected by the 1997 economic crisis in East Asia, over the past decade it has become integrated into the global and regional economy. As a result, the 2008 crisis has greatly affected Cambodia's economy, particularly its export sector and foreign-direct investment, with the garment, tourism, and construction industries feeling the greatest impact.
Professor Un illustrated how the Cambodian garment industry relies primarily on exports to the United States and Europe; its tourist industry relies on U.S., South Korean, and Japanese tourists; and its construction industry relies on Chinese and South Korean direct investment. All of these foreign markets were harmed by the financial crisis, and thus the effects were felt in the Cambodian market.
The Cambodian People's Party has recently become more popular electorally, despite a poor record on civil and political liberties, due to the party's ability to provide rapid and sustained economic growth until 2008. Its popularity also derives from its ability to preside over a neo-patrimonial state through provision of gifts and infrastructure from government officials, business tycoons, and multilateral and bilateral assistance. The recent economic downturn, then, may have affected the CPP's legitimacy. Un argues that this is unlikely because the government has been able, with assistance from multilateral institutions, to set up relief programs including material assistance and social and construction projects, most of which are carried out in neo-patrimonial fashion. Further, overseas development assistance, bilateral assistance and investment from China help to act as leverage against the impact of the global economic and financial downturn.
Professor Un believes the government seems to be moving from a patron-based system to a more pragmatic focus on service delivery and social safety. The financial crisis and Cambodia's increasing interconnections with the region and world have made such government reform even more necessary. The challenge is that the government has to strengthen its revenue collection which has been affected by widespread corruption.
APEC Study Center at Columbia University
Columbia University, 3022 Broadway
2M-9 Uris Hall
New York, NY 10027-7004
The Curl Ideas to wrap your mind around
Is Australia on the Wrong Track?
Australian Prime Minister Tony Abbott has defended many of his government’s reforms by invoking the American model of cutbacks on spending.Read More
Organic vs. Paid Advertising? Inside the Mind of An Online Browser
New research by Columbia Business School offers rare insights into what consumers are thinking when they land on the search engine results pageRead More
Columbia Business School’s Incoming Class Beats the Heat and ALS by taking the Ice Bucket Challenge Together
Incoming Columbia Business School students joined thousands of people around the country in taking the ALS Ice Bucket Challenge and engaging in a friendly rivalry with other top business schools.Read More
Borrowers Beware! When It Comes to Business Loans and Defaults, Not All State Laws Are Created Equal
Columbia Business School study finds that New York’s tough contract laws make it the most favorable state for lendersRead More
For Some CEOs, No Price Is Too High to Retain Control In a Proxy Battle
In new research from Columbia Business School, CEOs are three times as likely to value shares above market value to avoid getting pushed outRead More
Smarter Ads for Smartphones: When They Do and Don't Work
Study demystifies effectiveness of smartphone ads; offers marketers tipsRead More
Wounded Warrior Project: Leading from the Front
As the WWP entered its second decade, what governance policies and practices would ensure its continued success?Read More
Wei Jiang Named Director of Chazen Institute
Wei Jiang, the Arthur F. Burns Professor of Free and Competitive Enterprise in the Finance and Economics Division, has been appointed Director of the School’s Jerome A. Chazen Institute of International Business.Read More
Sharp Electronics in 2013
In 2013 Sharp Electronics shareholders expressed their outrage in the face of the company’s unmet technological challenges, plunging share price, and governance missteps. To turn Sharp around, President Kozo Takahashi would be forced to undo decisions that his predecessors had made and break with past traditions concerning Sharp’s corporate governance. Would Takahashi be successful in steering Sharp away from insolvency and towards a more competitive position in the worldwide consumer electronics industry?Read More