PROFILE
OFFICIAL NAME:
Kingdom of Cambodia
Geography
Area: 181,040 sq. km. (69,900 sq. mi.); about
the size of Missouri.
Cities: Capital--Phnom Penh (pop. 1.2
million), Battambang, Siem Reap, Kompong Cham,
Kompong Speu, Kompong Thom.
Terrain: Central plain drained by the Tonle Sap
(Great Lake) and Mekong and Bassac Rivers.
Forests away from the rivers and the lake,
mountains in the southwest (Cardamom Mountains)
and north (Dangrek Mountains) along the border
with Thailand.
Climate: Tropical monsoon with rainy season
June-Oct. and dry season Nov.-May.
People
Nationality: Noun and adjective--Cambodian(s),
Khmer.
Population (2004 est.): 12,824,000.
Avg. annual growth rate (2004 est.) 1.81%.
Health: Infant mortality rate--73/1,000.
Life expectancy--55 years male; 61
years female.
Ethnic groups: Cambodian 90%; Vietnamese 5%;
Chinese 1%; small numbers of hill tribes, Chams,
and Laotian.
Religions: Theravada Buddhism 95%; Islam;
animism; Christian.
Languages: Khmer (official) spoken by more than
95% of the population; some French still spoken
in urban areas; English increasingly popular as
a second language.
Education: Years compulsory--none.
Enrollment--primary school, 93%; grades 7 to
9, 20%; grades 10 to 12, 7%; and post-secondary,
1.2%. Completion rates--primary school,
6.6%; secondary school, 2.4%; university, 0.8%.
Literacy (total population over 15 that
can read and write, 2003 est.)--69.9% (male
80.5%; female 60.3%).
Government
Type: Multiparty democracy under a
constitutional monarchy.
Independence: November 9, 1953.
Constitution: September 24, 1993; amended March
6, 1999.
Branches: Executive--King Sihamoni (head
of state since October 29, 2004), appointed
prime minister (Hun Sen since January 14, 1985),
seven deputy prime ministers, 15 senior
ministers, 28 ministers, 135 secretaries of
state, and 146 undersecretaries of state.
Legislative--National Assembly, consisting
of 123 elected members; Senate, consisting of 61
members. Judicial--Supreme Court and
lower courts.
Administrative subdivisions: 20 provinces and 4
municipalities.
Political parties and leaders: Ruling
parties--A coalition government of the
Cambodian People's Party (CPP), led by Samdech
Chea Sim, and the National United Front for an
Independent, Neutral, Peaceful, and Cooperative
Cambodia (FUNCINPEC), led by National Assembly
President Prince Norodom Ranariddh.
Opposition parties--The Sam Rainsy Party (SRP),
led by Sam Rainsy; several minor parties.
Economy
GDP (2004 est.): $4.2 billion.
Per capita GDP (2003 est.): $282.
Annual growth rate (2004 est.): 5.5%.
Inflation (2003 est.): 1.3%.
Natural resources: Timber, gemstones, some iron
ore, manganese and phosphate, hydroelectric
potential from the Mekong River.
Agriculture (35% of GDP, 2004 est.): About
4,848,000 hectares (12 million acres) are
unforested land; all are arable with irrigation,
but 2.5 million hectares are cultivated.
Products--rice, rubber, corn, meat,
vegetables, dairy products, sugar, flour.
Industry (30% of GDP, 2004 est.): Types--garment
and shoe manufacturing, rice milling, tobacco,
fisheries and fishing, wood and wood products,
textiles, cement, some rubber production, paper
and food processing.
Services (35% of GDP, 2004 est.): Tourism,
telecommunications, transportation, and
construction.
Central government budget (2003): Revenues--$430
million; expenditures--$644 million;
foreign financing--$207 million.
Trade: Exports ($1.683 billion,
2003)--garments, shoes, cigarettes, natural
rubber, rice, pepper, wood, fish. Major
partners--United States, Germany, U.K.,
Singapore, Japan, Vietnam. Imports ($1.73
billion, 2003)--fuels, cigarettes, vehicles,
consumer goods, machinery. Major partners--Thailand,
Singapore, China, Hong Kong, Vietnam, Taiwan,
United States.
Economic aid received: Pledges of $504 million
in grants and concessional loans for calendar
year 2005. Major donors--Asian
Development Bank (ADB), UN Development Program (UNDP),
World Bank, International Monetary Fund,
Australia, Canada, Denmark, the EU, France,
Germany, Italy, Japan, Sweden, Thailand, U.K.,
U.S. According to the Cambodian Government, 79%
of the $635 million pledged by donors for 2003
was actually disbursed.
Principal foreign commercial investors:
Malaysia, Taiwan, U.S., China, Korea, Hong Kong,
Singapore, and Thailand.
Exchange rate (2004): 4,050 riel per U.S. $1.
GEOGRAPHY
Cambodia is located on mainland Southeast Asia
between Thailand to the west and north and
Vietnam to the east. It shares a land border
with Laos in the northeast. Cambodia has a sea
coast on the Gulf of Thailand. The Dangrek
Mountain range in the north and Cardamom
Mountains in the southwest form natural
boundaries. Principal physical features include
the Tonle Sap lake and the Mekong and Bassac
Rivers. Cambodia remains one of the most heavily
forested countries in the region, although
deforestation continues at an alarming rate.
PEOPLE AND CULTURE
Ninety percent of Cambodia's population
is ethnically Cambodian. Other ethnic groups
include Chinese, Vietnamese, hill tribes, Chams,
and Laotian. Theravada Buddhism is the religion
of 95% of the population; Islam, animism, and
Christianity also are practiced. Khmer is the
official language and is spoken by more than 95%
of the population. Some French is still spoken
in urban areas, and English is increasingly
popular as a second language.
Angkor Wat
Over a period of 300 years, between 900 and 1200
AD, the Khmer Kingdom of Angkor produced some of
the world's most magnificent architectural
masterpieces on the northern shore of the Tonle
Sap, near the present town of Siem Reap. The
Angkor area stretches 15 miles east to west and
5 miles north to south. Some 72 major temples or
other buildings dot the area. Suryavarman II
built the principal temple, Angkor Wat, between
1112 and 1150. With walls nearly one-half mile
on each side, Angkor Wat portrays the Hindu
cosmology with the central towers representing
Mount Meru, home of the gods; the outer walls,
the mountains enclosing the world; and the moat,
the oceans beyond. Angkor Thom, the capital city
built after the Cham sack of 1177, is surrounded
by a 300-foot wide moat. Construction of Angkor
Thom coincided with a change from Hinduism to
Buddhism. Temples were altered to display images
of the Buddha, and Angkor Wat became a major
Buddhist shrine.
During the 15th century, nearly all of Angkor
was abandoned after Siamese attacks. The
exception was Angkor Wat, which remained a
shrine for Buddhist pilgrims. The great city and
temples remained largely cloaked by the forest
until the late 19th century when French
archaeologists began a long restoration process.
France established the Angkor Conservancy in
1908 to direct restoration of the Angkor
complex. For the next 64 years, the conservancy
worked to clear away the forest, repair
foundations, and install drains to protect the
buildings from their most insidious enemy:
water. After 1953, the conservancy became a
joint project of the French and Cambodian
Governments. Some temples were carefully taken
apart stone by stone and reassembled on concrete
foundations. Tourism is now the second-largest
foreign currency earner in Cambodia's economy,
and Angkor Wat has helped attract international
tourism to the country.
MODERN HISTORY
Although Cambodia had a rich and powerful past
under the Hindu state of Funan and the Kingdom
of Angkor, by the mid-19th century the country
was on the verge of dissolution. After repeated
requests for French assistance, a protectorate
was established in 1863. By 1884, Cambodia was a
virtual colony; soon after it was made part of
the Indochina Union with Annam, Tonkin,
Cochin-China, and Laos. France continued to
control the country even after the start of
World War II through its Vichy government. In
1945, the Japanese dissolved the colonial
administration, and King Norodom Sihanouk
declared an independent, anti-colonial
government under Prime Minister Son Ngoc Thanh
in March 1945. The Allies deposed this
government in October. In January 1953, Sihanouk
named his father as regent and went into
self-imposed exile, refusing to return until
Cambodia gained genuine independence.
Full Independence
Sihanouk's actions hastened the French
Government's July 4, 1953 announcement of its
readiness to grant independence, which came on
November 9, 1953. The situation remained
uncertain until a 1954 conference was held in
Geneva to settle the French-Indochina war. All
participants, except the United States and the
State of Vietnam, associated themselves (by
voice) with the final declaration. The Cambodian
delegation agreed to the neutrality of the three
Indochinese states but insisted on a provision
in the cease-fire agreement that left the
Cambodian Government free to call for outside
military assistance should the Viet Minh or
others threaten its territory.
Neutral Cambodia
Neutrality was the central element of Cambodian
foreign policy during the 1950s and 1960s. By
the mid-1960s, parts of Cambodia's eastern
provinces were serving as bases for North
Vietnamese Army and Viet Cong (NVA/VC) forces
operating against South Vietnam, and the port of
Sihanoukville was being used to supply them. As
NVA/VC activity grew, the United States and
South Vietnam became concerned, and in 1969, the
United States began a series of air raids
against NVA/VC base areas inside Cambodia.
Throughout the 1960s, domestic politics
polarized. Opposition grew within the middle
class and among leftists, including
Paris-educated leaders such as Son Sen, Ieng
Sary, and Saloth Sar (later known as Pol Pot),
who led an insurgency under the clandestine
Communist Party of Kampuchea (CPK).
The Khmer Republic and the War
In March 1970, Gen. Lon Nol deposed Prince
Sihanouk and assumed power. On October 9, the
Cambodian monarchy was abolished, and the
country was renamed the Khmer Republic. Hanoi
rejected the new republic's request for the
withdrawal of NVA/VC troops and began to
reinfiltrate some of the 2,000-4,000 Cambodians
who had gone to North Vietnam in 1954. They
became a cadre in the insurgency. The United
States moved to provide material assistance to
the new government's armed forces, which were
engaged against both the Khmer Rouge insurgents
and NVA/VC forces. In April 1970, U.S. and South
Vietnamese forces entered Cambodia in a campaign
aimed at destroying NVA/VC base areas. Although
a considerable quantity of equipment was seized
or destroyed, NVA/VC forces proved elusive and
moved deeper into Cambodia. NVA/VC units overran
many Cambodian Army positions while the Khmer
Rouge expanded their smallscale attacks on lines
of communication.
The Khmer Republic's leadership was plagued
by disunity among its members, the problems of
transforming a 30,000-man army into a national
combat force of more than 200,000 men, and
spreading corruption. The insurgency continued
to grow, with supplies and military support
provided by North Vietnam. But inside Cambodia,
Pol Pot and Ieng Sary asserted their dominance
over the Vietnamese-trained communists, many of
whom were purged. At the same time, the Khmer
Rouge forces became stronger and more
independent of their Vietnamese patrons. By
1974, Lon Nol's control was reduced to small
enclaves around the cities and main
transportation routes. More than 2 million
refugees from the war lived in Phnom Penh and
other cities.
On New Year's Day 1975, communist troops
launched an offensive that, in 117 days of the
hardest fighting of the war, destroyed the Khmer
Republic. Simultaneous attacks around the
perimeter of Phnom Penh pinned down Republican
forces, while other Khmer Rouge units overran
fire bases controlling the vital lower Mekong
resupply route. A U.S.-funded airlift of
ammunition and rice ended when Congress refused
additional aid for Cambodia. Phnom Penh
surrendered on April 17, 1975--5 days after the
U.S. mission evacuated Cambodia.
Democratic Kampuchea
Many Cambodians welcomed the arrival of peace,
but the Khmer Rouge soon turned Cambodia--which
it called Democratic Kampuchea (DK)--into a land
of horror. Immediately after its victory, the
new regime ordered the evacuation of all cities
and towns, sending the entire urban population
out into the countryside to till the land.
Thousands starved or died of disease during the
evacuation. Many of those forced to evacuate the
cities were resettled in new villages, which
lacked food, agricultural implements, and
medical care. Many starved before the first
harvest, and hunger and malnutrition--bordering
on starvation--were constant during those years.
Those who resisted or who questioned orders were
immediately executed, as were most military and
civilian leaders of the former regime who failed
to disguise their pasts.
Within the CPK, the Paris-educated
leadership--Pol Pot, Ieng Sary, Nuon Chea, and
Son Sen--was in control, and Pol Pot was made
Prime Minister. Prince Sihanouk was put under
virtual house arrest. The new government sought
to restructure Cambodian society completely.
Remnants of the old society were abolished, and
Buddhism suppressed.
Agriculture was collectivized, and the
surviving part of the industrial base was
abandoned or placed under state control.
Cambodia had neither a currency nor a banking
system. The regime controlled every aspect of
life and reduced everyone to the level of abject
obedience through terror. Torture centers were
established, and detailed records were kept of
the thousands murdered there. Public executions
of those considered unreliable or with links to
the previous government were common. Few
succeeded in escaping the military patrols and
fleeing the country. Solid estimates of the
numbers who died between 1975 and 1979 are not
available, but it is likely that hundreds of
thousands were brutally executed by the regime.
Hundreds of thousands more died of starvation
and disease--both under the Khmer Rouge and
during the Vietnamese invasion in 1978.
Estimates of the dead range from 1.7 million to
3 million, out of a 1975 population estimated at
7.3 million.
Democratic Kampuchea's relations with Vietnam
and Thailand worsened rapidly as a result of
border clashes and ideological differences.
While communist, the CPK was fiercely
anti-Vietnamese, and most of its members who had
lived in Vietnam were purged. Democratic
Kampuchea established close ties with China, and
the Cambodian-Vietnamese conflict became part of
the Sino-Soviet rivalry, with Moscow backing
Vietnam. Border clashes worsened when Democratic
Kampuchea's military attacked villages in
Vietnam.
In mid-1978, Vietnamese forces invaded
Cambodia, advancing about 30 miles before the
arrival of the rainy season. In December 1978,
Vietnam announced formation of the Kampuchean
United Front for National Salvation (KUFNS)
under Heng Samrin, a former DK division
commander. It was composed of Khmer communists
who had remained in Vietnam after 1975 and
officials from the eastern sector--like Heng
Samrin and Hun Sen--who had fled to Vietnam from
Cambodia in 1978. In late December 1978,
Vietnamese forces launched a full invasion of
Cambodia, capturing Phnom Penh on January 7,
1979 and driving the remnants of Democratic
Kampuchea's army westward toward Thailand.
The Vietnamese Occupation
On January 10, 1979, the Vietnamese installed
Heng Samrin as head of state in the new People's
Republic of Kampuchea (PRK). The Vietnamese Army
continued its pursuit of Pol Pot's Khmer Rouge
forces. At least 600,000 Cambodians displaced
during the Pol Pot era and the Vietnamese
invasion began streaming to the Thai border in
search of refuge.
The international community responded with a
massive relief effort coordinated by the United
States through the UN Children's Fund (UNICEF)
and the World Food Program. More than $400
million was provided between 1979 and 1982, of
which the United States contributed nearly $100
million. At one point, more than 500,000
Cambodians were living along the Thai-Cambodian
border and more than 100,000 in holding centers
inside Thailand.
Vietnam's occupation army of as many as
200,000 troops controlled the major population
centers and most of the countryside from 1979 to
September 1989. The Heng Samrin regime's 30,000
troops were plagued by poor morale and
widespread desertion. Resistance to Vietnam's
occupation continued. A large portion of the
Khmer Rouge's military forces eluded Vietnamese
troops and established themselves in remote
regions. The non-communist resistance,
consisting of a number of groups which had been
fighting the Khmer Rouge after 1975--including
Lon Nol-era soldiers--coalesced in 1979-80 to
form the Khmer People's National Liberation
Armed Forces (KPNLAF), which pledged loyalty to
former Prime Minister Son Sann, and Moulinaka
(Movement pour la Liberation Nationale de
Kampuchea), loyal to Prince Sihanouk. In 1979,
Son Sann formed the Khmer People's National
Liberation Front (KPNLF) to lead the political
struggle for Cambodia's independence. Prince
Sihanouk formed his own organization, National
United Front for an Independent, Neutral,
Peaceful, and Cooperative Cambodia (FUNCINPEC),
and its military arm, the Armee Nationale
Sihanoukienne (ANS) in 1981.
Within Cambodia, Vietnam had only limited
success in establishing its client Heng Samrin
regime, which was dependent on Vietnamese
advisers at all levels. Security in some rural
areas was tenuous, and major transportation
routes were subject to interdiction by
resistance forces. The presence of Vietnamese
throughout the country and their intrusion into
nearly all aspects of Cambodian life alienated
much of the populace. The settlement of
Vietnamese nationals, both former residents and
new immigrants, further exacerbated
anti-Vietnamese sentiment. Reports of the
numbers involved vary widely, with some
estimates as high as 1 million. By the end of
the decade, Khmer nationalism began to reassert
itself against the traditional Vietnamese enemy.
In 1986, Hanoi claimed to have begun withdrawing
part of its occupation forces. At the same time,
Vietnam continued efforts to strengthen its
client regime, the PRK, and its military arm,
the Kampuchean People's Revolutionary Armed
Forces (KPRAF). These withdrawals continued over
the next 2 years, and the last Vietnamese troops
left Cambodia in September 1989.
Peace Efforts
From July 30 to August 30, 1989, representatives
of 18 countries, the four Cambodian parties, and
the UN Secretary General met in Paris in an
effort to negotiate a comprehensive settlement.
They hoped to achieve those objectives seen as
crucial to the future of post-occupation
Cambodia--a verified withdrawal of the remaining
Vietnamese occupation troops, the prevention of
the return to power of the Khmer Rouge, and
genuine self-determination for the Cambodian
people. A comprehensive settlement was agreed
upon on August 28, 1990.
Cambodia's Renewal
On October 23, 1991, the Paris Conference
reconvened to sign a comprehensive settlement
giving the UN full authority to supervise a
cease-fire, repatriate the displaced Khmer along
the border with Thailand, disarm and demobilize
the factional armies, and prepare the country
for free and fair elections. Prince Sihanouk,
President of the Supreme National Council of
Cambodia (SNC), and other members of the SNC
returned to Phnom Penh in November 1991, to
begin the resettlement process in Cambodia. The
UN Advance Mission for Cambodia (UNAMIC) was
deployed at the same time to maintain liaison
among the factions and begin demining operations
to expedite the repatriation of approximately
370,000 Cambodians from Thailand.
On March 16, 1992, the UN Transitional
Authority in Cambodia (UNTAC) arrived in
Cambodia to begin implementation of the UN
Settlement Plan. The UN High Commissioner for
Refugees began fullscale repatriation in March
1992. UNTAC grew into a 22,000-strong civilian
and military peacekeeping force to conduct free
and fair elections for a constituent assembly.
Over 4 million Cambodians (about 90% of
eligible voters) participated in the May 1993
elections, although the Khmer Rouge or Party of
Democratic Kampuchea (PDK), whose forces were
never actually disarmed or demobilized, barred
some people from participating. Prince
Ranariddh's FUNCINPEC Party was the top vote
recipient with a 45.5% vote, followed by Hun
Sen's Cambodian People's Party and the Buddhist
Liberal Democratic Party, respectively.
FUNCINPEC then entered into a coalition with the
other parties that had participated in the
election. The parties represented in the
120-member assembly proceeded to draft and
approve a new constitution, which was
promulgated September 24, 1993. It established a
multiparty liberal democracy in the framework of
a constitutional monarchy, with the former
Prince Sihanouk elevated to King. Prince
Ranariddh and Hun Sen became First and Second
Prime Ministers, respectively, in the Royal
Cambodian Government (RGC). The constitution
provides for a wide range of internationally
recognized human rights.
On October 4, 2004, the Cambodian National
Assembly ratified an agreement with the United
Nations on the establishment of a tribunal to
try senior leaders responsible for the
atrocities committed by the Khmer Rouge. Donor
countries have pledged over $40 million of the
$43 million international share of the
three-year tribunal budget. Cambodia has
committed to pay $13.3 million of the tribunal
costs. The beginning date for the tribunal has
not yet been determined.
GOVERNMENT AND POLITICAL CONDITIONS
Cambodia is a constitutional monarchy, and
its constitution provides for a multiparty
democracy. The Royal Government of Cambodia,
formed on the basis of elections internationally
recognized as free and fair, was established on
September 24, 1993.
The executive branch comprises the king, who
is head of state; an appointed prime minister;
seven deputy prime ministers, 15 senior
ministers, 28 ministers, 135 secretaries of
state, and 146 undersecretaries of state. The
bicameral legislature consists of a 123-member
elected National Assembly and a 61-member
Senate. The judiciary includes a Supreme Court
and lower courts. Administrative subdivisions
are 20 provinces and 4 municipalities.
Compared to its recent past, the 1993-2003
period was one of relative stability for
Cambodia. However, political violence continued
to be a problem. In 1997, factional fighting
between supporters of Prince Norodom Ranariddh
and Hun Sen broke out, resulting in more than
100 FUNCINPEC deaths and a few Cambodian
People's Party (CPP) casualties. Some FUNCINPEC
leaders were forced to flee the country, and Hun
Sen took over as Prime Minister. FUNCINPEC
leaders returned to Cambodia shortly before the
1998 National Assembly elections. In those
elections, the CPP received 41% of the vote,
FUNCINPEC 32%, and the Sam Rainsy Party (SRP)
13%. Due to political violence, intimidation,
and lack of media access, many international
observers judged the elections to have been
seriously flawed. The CPP and FUNCINPEC formed
another coalition government, with CPP the
senior partner.
Cambodia's first commune elections were held
in February 2002. These elections to select
chiefs and members of 1,621 commune
(municipality) councils also were marred by
political violence and fell short of being free
and fair by international standards. The
election results were largely acceptable to the
major parties, though procedures for the new
local councils have not been fully implemented.
National Assembly elections in July 2003
failed to give any one party the two-thirds
majority of seats required under the
constitution to form a government. The CPP
secured 73 seats, FUNCINPEC 26 seats, and the
SRP 24 seats. As a result, the incumbent CPP-led
administration continued in power in a caretaker
role pending the formation of a coalition with
the required number of National Assembly seats
to form a government.
On July 8, 2004, the National Assembly
approved a controversial addendum to the
constitution in order to require a vote on a new
government and to end the nearly year-long
political stalemate. The vote took place on July
15, and the National Assembly approved a new
coalition government comprised of the CPP and
FUNCINPEC, with Hun Sen as Prime Minister and
Prince Norodom Ranariddh as President of the
National Assembly. The SRP and representatives
of civil society non-governmental organizations
(NGOs) have asserted the addendum was
unconstitutional. The SRP boycotted the vote and
currently is in opposition. In February 2005,
the National Assembly voted to lift the
parliamentary immunity of three opposition
parliamentarians, including SRP leader Sam
Rainsy, in connection with lawsuits filed
against them by members of the ruling parties.
On October 7, 2004, King Sihanouk abdicated
the throne due to illness. On October 14, the
Cambodian Throne Council selected Prince Norodom
Sihamoni to succeed Sihanouk as King. King
Norodom Sihamoni officially ascended the throne
in a coronation ceremony on October 29, 2004.
The constitution provides for a wide range of
internationally recognized human rights,
including freedom of the press. While
limitations still exist on mass media, freedom
of the press has improved markedly in Cambodia
since the adoption of the 1993 constitution,
which grants a certain degree of freedom to the
media. The written press, while considered
largely free, has ties to individual political
parties or factions and does not seek to provide
objective reporting or analysis. Cambodia has an
estimated 20 Khmer-language newspapers that are
published regularly. Of these, eight are
published daily. There are two major
English-language newspapers, one of which is
produced daily. Broadcast media, in contrast to
print, is more closely controlled. It tends to
be politically affiliated, and access for
opposition parties is extremely limited.
Principal Government Officials
King and Head of State--His Majesty Norodom
Sihamoni
Prime Minister and Head of Government--Hun Sen
President of the Senate--Chea Sim
President of National Assembly--Prince Norodom
Ranariddh
Cambodia's
embassy in the United States is located at
4530 16th Street NW, Washington DC 20011; tel:
(202) 726-7742; fax: (202) 726-8381.
ECONOMY
In spite of recent progress, the Cambodian
economy continues to suffer from the legacy of
decades of war and internal strife. Per capita
income and education levels are lower than in
most neighboring countries. Infrastructure
remains inadequate. Most rural households depend
on agriculture and its related subsectors.
Manufacturing output is concentrated in the
garment sector, which started to expand rapidly
in the mid-1990s and now employs more than
250,000 workers, but faces an uncertain future
following the end of textile quotas at the end
of 2004. The other main foreign currency earner
is tourism; Angkor Wat is one of the country's
international tourist attractions. After several
years of rapid growth, the tourism sector slowed
in 2002-03, mainly due to severe acute
respiratory syndrome (SARS)-related fears. There
was a noticeable rebound in tourist arrivals in
2004, with foreign visitors to Cambodia topping
one million for the first time. The service
sector is heavily concentrated in trading
activities and catering-related services.
Cambodia's real GDP grew at 5.5% in 2002 and
5.2% in 2003, with almost all of the growth
coming from the garment sector. Growth in 2004
was strong at 5.5%, with the garment sector
providing the biggest input into GDP growth.
Inflation moderated from 3% in 2002 to an
estimated average of 1.3% over 2003. Inflation
remained under control in 2004. The national
currency, the riel, was relatively stable over
2002 but depreciated slightly against the U.S.
dollar in 2003. The National Bank of Cambodia
made a series of limited yet effective
interventions in 2004 to keep the riel to dollar
rate at roughly 4,000 to one. The economy is
heavily dollarized; the dollar and riel can be
used interchangeably. Cambodia remains heavily
reliant on foreign assistance--about half of the
central government budget depends on donor
assistance. Cambodia has had trouble attracting
foreign direct investment (FDI), due in part to
the unreliable legal environment. New FDI levels
fell steadily from 1999-2001. According to the
National Bank of Cambodia (NBC), which tracks
actual monies spent as FDI rather than simply
the value of approved FDI projects, in 2001
there was $150 million in FDI. In 2002, the NBC
recorded $54 million in FDI. In 2004, FDI was
measured officially at $131 million, with over
half of that being invested in the garment
sector. The economy also has a poor track record
in creating jobs in the formal sector, and the
challenge will only become more daunting in the
future since 50% of the population is under 20
years of age and large numbers of job seekers
will begin to enter the work force each year
over the next 10 years.
FOREIGN RELATIONS
Cambodia has established diplomatic relations
with most countries, including the United
States. The country is a member of most major
international organizations, including the UN
and its specialized agencies, and became a
member of the Association of Southeast Asian
Nations (ASEAN) in 1998.
Cambodia is a member of the World Bank, the
International Monetary Fund, and the Asian
Development Bank (ADB). On October 13, 2004,
Cambodia became the 148th member of the World
Trade Organization (WTO).
U.S.-CAMBODIAN RELATIONS
Between 1955 and 1963, the United States
provided $409.6 million in economic grant aid
and $83.7 million in military assistance. This
aid was used primarily to repair damage caused
by Cambodia’s war of independence from France,
to support internal security forces, and for the
construction of an all-weather road to the
seaport of Sihanoukville, which gave Cambodia
its first direct access to the sea and access to
the southwestern hinterlands. Relations
deteriorated in the early 1960s. Diplomatic
relations were broken by Cambodia in May 1965,
but were reestablished on July 2, 1969. U.S.
relations continued after the establishment of
the Khmer Republic until the U.S. mission was
evacuated on April 12, 1975. During the 1970-75
war, the United States provided $1.18 billion in
military assistance and $503 million in economic
assistance. The United States condemned the
brutal character of the Khmer Rouge regime
between 1975 and 1979. The United States opposed
the subsequent military occupation of Cambodia
by Vietnam, and supported ASEAN's efforts in the
1980s to achieve a comprehensive political
settlement of the problem. This was accomplished
on October 23, 1991, when the Paris Conference
reconvened to sign a comprehensive settlement.
The U.S. Mission in Phnom Penh opened on
November 11, 1991, headed by career diplomat
Charles H. Twining, Jr., who was designated U.S.
Special Representative to the SNC. On January 3,
1992, the U.S. lifted its embargo against
Cambodia, thus normalizing economic relations
with the country. The United States also ended
blanket opposition to lending to Cambodia by
international financial institutions. When the
freely elected Royal Government of Cambodia was
formed on September 24, 1993, the United States
and the Kingdom of Cambodia immediately
established full diplomatic relations. The U.S.
Mission was upgraded to a U.S. Embassy, and in
May 1994 Mr. Twining became the U.S. Ambassador.
After the factional fighting in 1997 and Hun
Sen's legal machinations to depose First Prime
Minister Ranariddh, the United States suspended
bilateral assistance to the Cambodian
Government. At the same time, many U.S. citizens
and other expatriates were evacuated from
Cambodia and, in the subsequent weeks and
months, more than 40,000 Cambodian refugees fled
to Thailand. The 1997 events also left a long
list of uninvestigated human rights abuses,
including dozens of extra-judicial killings.
Since 1997, U.S. assistance to the Cambodian
people has been provided mainly through
non-governmental organizations, which flourish
in Cambodia.
The United States supports efforts in
Cambodia to combat terrorism, build democratic
institutions, promote human rights, foster
economic development, eliminate corruption,
achieve the fullest possible accounting for
Americans missing from Indochina conflict, and
to bring to justice those most responsible for
serious violations of international humanitarian
law committed under the Khmer Rouge regime.
Principal U.S. Officials
Ambassador--Joseph A. Mussomeli
Deputy Chief of Mission--Mark C. Storella
Political Officer--Margaret B. McKean
Economic/Commercial Officer--Donald B. Coleman
Consular Officer--Terrence E. West
Management Officer--Daniel G. Brown
Acting Public Affairs Officer--John J. Daigle
Regional Security Officer--John P. Davis
Defense Attache--Col. Terence M. Tidler
The
U.S. Embassy in Phnom Penh is located at #1,
Street 96, Sangkat Wat Phnom; tel: (855)
23-728-000; fax: (855) 23-728-600.