Cambodia Needs to Embrace Globalization, Official Says

Globalization is an inevitable reality, and countries like Cambo­dia had better embrace it or be left behind, Minister of Com­merce Cham Prasidh said Wed­nes­day at the opening of a two-day conference to discuss the country’s economic future.

Least-developed countries like Cambodia have no choice but to go with the “inevitable” trend of glo­balization, or risk becoming another kind of LDC, a “left-dying country,” the minister said.

“I tell you frankly: It is like the LDC seller is kneeling down in front of the developed country’s buy­er and imploring this latter to put a pillory on his neck,” he said. “But he had no choice.”

Cambodia is desperately trying to enter the World Trade Organ­ization, an international body whose 140 member nations enjoy reduced trade barriers.

The country is nearly halfway through the application process, and the minister last month re­turned from a round of negotiations in Geneva.

Cambodia expects to join the WTO by 2002, Cham Prasidh said Wednesday.

The country is in a race for membership, with officials fearing it will lose its competitive ad­vantage when countries like Chi­na and Vietnam enter the WTO.

From garments to agriculture  to tourism, the government is now looking at ways to diversify the country’s assets, so that when globalization comes, Cambodia will be ready.

Around 90 percent of the country’s exports come from the garment industry, but officials are looking for other options because the industry is viewed as fickle, and able to pack up and leave a coun­try with relative ease.

The garment industry has been hurt by protests from workers wanting better conditions and pay. That—coupled with a world-wide economic downturn—has caused the loss of thousands of jobs, Cham Prasidh said.

He blamed Cambodia’s emerging labor movement with damaging the garment industry’s reputation and scaring away investors. Cham Prasidh said 30 factories have closed in Cambodia and revenue from textiles is 20 percent to 30 percent lower in the first part of this year than last year.

Opposition parliamentarian Son Chhay, who last week criticized labor conditions in one factory, said Wednesday the government was spending “millions of dollars” to lobby for WTO en­trance.

He decried corruption in the gov­ernment, saying every minister wore “a diamond ring” and glas­ses “made from gold,” while ignoring the needs of the country, like a better infrastructure to encourage businesses.