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CAMBODIA

Most Cambodians consider themselves to be Khmers, whose Angkor Empire extended over much of Southeast Asia and reached its zenith between the 10th and 13th centuries. Subsequently, attacks by the Thai and Cham (from present-day Vietnam) weakened the empire ushering in a long period of decline. In 1863, the king of Cambodia placed the country under French protection; it became part of French Indochina in 1887. Following Japanese occupation in World War II, Cambodia became independent within the French Union in 1949 and fully independent in 1953. After a five-year struggle, Communist Khmer Rouge forces captured Phnom Penh in April 1975 and ordered the evacuation of all cities and towns; at least 1.5 million Cambodians died from execution, enforced hardships, or starvation during the Khmer Rouge regime under POL POT. A December 1978 Vietnamese invasion drove the Khmer Rouge into the countryside, led to a 10-year Vietnamese occupation, and touched off almost 13 years of civil war. The 1991 Paris Peace Accords mandated democratic elections and a ceasefire, which was not fully respected by the Khmer Rouge. UN-sponsored elections in 1993 helped restore some semblance of normalcy and the final elements of the Khmer Rouge surrendered in early 1999. Factional fighting in 1997 ended the first coalition government, but a second round of national elections in 1998 led to the formation of another coalition government and renewed political stability. The July 2003 elections were relatively peaceful, but it took one year of negotiations between contending political parties before a coalition government was formed. Nation-wide local elections are scheduled for 2007 and national elections for 2008.

LOCATION

Southeastern Asia, bordering the Gulf of Thailand, between Thailand, Vietnam, and Laos. Slightly smaller than Oklahoma

POPULATION

13,607,069
note: estimates for this country take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality and death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected (July 2005 est.)

Khmer 90%, Vietnamese 5%, Chinese 1%, other 4%.

Theravada Buddhist 95%, other 5%.

NATURAL RESOURCES

Oil and gas, timber, gemstones, some iron ore, manganese, phosphates, hydropower potential.

NATURAL CHALLENGES

Monsoonal rains (June to November); flooding; occasional droughts.

Illegal logging activities throughout the country and strip mining for gems in the western region along the border with Thailand have resulted in habitat loss and declining biodiversity (in particular, destruction of mangrove swamps threatens natural fisheries); soil erosion; in rural areas, most of the population does not have access to potable water; declining fish stocks because of illegal fishing and overfishing.

GOVERNMENT AND POLITICS

Executive branch:

chief of state: King Norodom SIHAMONI (since 29 October 2004)
head of government: Prime Minister HUN SEN (since 14 January 1985) and Deputy Prime Ministers SAR KHENG (since 3 February 1992), Norodom SIRIVUDH, SOK AN, LU LAY SRENG, TEA BANH, HOR NAMHONG, NHEK BUNCHHAY (since 16 July 2004)
cabinet: Council of Ministers in theory appointed by the monarch; in practice named by the prime minister
elections: none; the monarch is chosen by a Royal Throne Council; following legislative elections, a member of the majority party or majority coalition is named prime minister by the Chairman of the National Assembly and appointed by the king

Legislative branch:

bicameral, consists of the National Assembly (123 seats; members elected by popular vote to serve five-year terms) and the Senate (61 seats; two members appointed by the monarch, two elected by the National Assembly, and 57 elected by "functional constituencies"; members serve five-year terms)
elections: National Assembly - last held 27 July 2003 (next to be held in July 2008); Senate - last held 2 March 1999 (scheduled to be held in 2004 but delayed)
election results: National Assembly - percent of vote by party - CPP 47%, SRP 22%, FUNCINPEC 21%, other 10%; seats by party - CPP 73, FUNCINPEC 26, SRP 24; Senate - percent of vote by party - NA%; seats by party - CPP 31, FUNCINPEC 21, SRP 7, other 2 (July 2003)

Judicial branch:

Supreme Council of the Magistracy (provided for in the constitution and formed in December 1997); Supreme Court (and lower courts) exercises judicial authority

Political parties and leaders:

Cambodian Pracheachon Party (Cambodian People's Party) or CPP [CHEA SIM]; National United Front for an Independent, Neutral, Peaceful, and Cooperative Cambodia or FUNCINPEC [Prince NORODOM Ranariddh]; Sam Rangsi Party or SRP [SAM RANGSI]

MILITARY

Military branches: Royal Cambodian Armed Forces: Army, Navy, Air Force

Military manpower - military age and obligation: 18-30 years of age for compulsory military service for all males; conscription law passed September 2004; service obligation is 18 months (September 2004)

Military manpower - availability: males age 18-49: 2,981,823 (2005 est.)

Military manpower - fit for military service: males age 18-49: 1,844,144 (2005 est.)

Military manpower - reaching military age annually: males: 175,305 (2005 est.)

Military expenditures - dollar figure: $112 million (FY01 est.)

Military expenditures - percent of GDP: 3% (FY01 est.)

ECONOMICS

Cambodia's economy slowed dramatically in 1997 and 1998 due to the regional economic crisis, civil violence, and political infighting, and foreign investment and tourism decreased. In 1999, the first full year of peace in 30 years, the government made progress on economic reforms. Growth resumed and remained about 5% from 2000 to 2004. Economic growth has been largely driven by expansion in the garment sector and tourism, but is expected to fall in 2005 as growth in the garment sector stalls. Clothing exports were fostered by a US-Cambodian Bilateral Textile Agreement signed in 1999 which gave Cambodia a guaranteed quota of US textile imports and established a bonus for improving working conditions and enforcing Cambodian labor laws and international labor standards in the industry. With the January 2005 expiration of a WTO Agreement on Textiles and Clothing, Cambodia-based textile producers are in direct competition with lower priced producing countries such as China and India. Faced with the possibility that over the next five years Cambodia may lose orders and some of the 250,000 well-paid jobs the industry provides, Cambodia has committed itself to a policy of continued support for high labor standards in an attempt to maintain favor with buyers. Tourism growth remains strong, with arrivals up 15% in 2004. The long-term development of the economy after decades of war remains a daunting challenge. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Fully 75% of the population remains engaged in subsistence farming. Fear of renewed political instability and a dysfunctional legal system coupled with extensive government corruption discourage foreign investment. The Cambodian government continues to work with bilateral and multilateral donors to address the country's many pressing needs. In December 2004, official donors pledged $504 million in aid for 2005 on the condition that the Cambodian government begins taking steps to address rampant corruption. The next donor pledging session is scheduled for December 2005. The major economic challenge for Cambodia over the next decade will be fashioning an economic environment in which the private sector can create enough jobs to handle Cambodia's demographic imbalance. More than 50% of the population is 20 years or younger.

GDP - per capita: purchasing power parity - $2,000 (2004 est.)

Budget:

Revenues: $548.2 million
Expenditures: $836.7 million, including capital expenditures of $291 million of which 75% was financed by external assistance (2004 est.)

Industries: tourism, garments, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles

Imports - commodities: petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products

Imports - partners: Thailand 23.9%, Hong Kong 15%, China 13.5%, Singapore 11.5%, Vietnam 7.6%, Taiwan 7.3% (2004)

Reserves of foreign exchange and gold: $997.5 million (2004 est.)

Debt - external: $2.4 billion (2002 est.)

Economic aid - recipient: $504 million pledged in grants and concessional loans for 2005 by international donors.

Internet hosts: 818 (2003)

Internet Service Providers (ISPs): 2 (2000)

Internet users: 30,000 (2002)

CONFLICTS

Southeast Asian states have enhanced border surveillance to check the spread of avian flu; Cambodia and Thailand dispute sections of boundary with missing boundary markers and Thai encroachments into Cambodian territory; maritime boundary with Vietnam is hampered by unresolved dispute over offshore islands; Cambodia accuses Thailand of obstructing access to Preah Vihear temple ruins awarded to Cambodia by ICJ decision in 1962; in 2004 Cambodian-Laotian and Laotian-Vietnamese boundary commissions reerect missing markers completing most of their demarcations

OTHER CONSIDERATIONS

Illicit drugs: narcotics-related corruption reportedly involving some in the government, military, and police; possible small-scale opium, heroin, and amphetamine production; large producer of cannabis for the international market; vulnerable to money laundering due to its cash-based economy and porous borders.

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Images and data: USCIA July 28, 2005