Cambodia and the International Monetary Fund: Difference between revisions
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== IMF Loans == |
== IMF Loans == |
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The agreements outline in the [[Paris Peace Accords]] satisfied the conditionality agreements of "[[Good governance|Good Governance]]" according the IMF standards. The first financial arrangement was approved on May 06, 1994 of a total of 84 million in [[SDR]]. <ref name=":2">{{Cite web|url=https://www.imf.org/external/np/fin/tad/exfin2.aspx?memberKey1=115&date1key=2099-12-31|title=Financial Position in the Fund for Cambodia as of October 31, 2019|website=www.imf.org|access-date=2019-12-02}}</ref> The arrangement type is under the [[International Monetary Fund|Extended Credit Facility (EFC)]] aimed to assist Cambodia with poverty reduction and growth. <ref>{{Cite web|url=https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility|title=IMF Extended Credit Facility (ECF)|website=IMF|language=en|access-date=2019-12-02}}</ref> Although economic growth projections calculated an approximate 7 percent growth of Cambodian economy there was almost no growth in 1997. The Hun Sen Coup in 1997 increased inflation, and military spending. <ref name=":1" /> Cambodia received only $11.7 million of the three year disbursement until early 1996 the IMF froze transactions in response to [[Deforestation in Cambodia|corrupt logging practices]] and no collection of revenues. <ref>{{Cite web|url=https://www.phnompenhpost.com/national/imf-freezes-funding|title=IMF freezes funding {{!}} Phnom Penh Post|last=Grainger|first=Matthew|website=www.phnompenhpost.com|language=en|access-date=2019-12-02}}</ref> |
The agreements outline in the [[Paris Peace Accords]] satisfied the conditionality agreements of "[[Good governance|Good Governance]]" according the IMF standards. The first financial arrangement was approved on May 06, 1994 of a total of 84 million in [[SDR]]. <ref name=":2">{{Cite web|url=https://www.imf.org/external/np/fin/tad/exfin2.aspx?memberKey1=115&date1key=2099-12-31|title=Financial Position in the Fund for Cambodia as of October 31, 2019|website=www.imf.org|access-date=2019-12-02}}</ref> The arrangement type is under the [[International Monetary Fund|Extended Credit Facility (EFC)]] aimed to assist Cambodia with poverty reduction and growth. <ref>{{Cite web|url=https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility|title=IMF Extended Credit Facility (ECF)|website=IMF|language=en|access-date=2019-12-02}}</ref> Although economic growth projections calculated an approximate 7 percent growth of Cambodian economy there was almost no growth in 1997. The Hun Sen Coup in 1997 increased inflation, and military spending. <ref name=":1" /> Cambodia received only $11.7 million of the three year disbursement until early 1996 the IMF froze transactions in response to [[Deforestation in Cambodia|corrupt logging practices]] and no collection of revenues. <ref>{{Cite web|url=https://www.phnompenhpost.com/national/imf-freezes-funding|title=IMF freezes funding {{!}} Phnom Penh Post|last=Grainger|first=Matthew|website=www.phnompenhpost.com|language=en|access-date=2019-12-02}}</ref> |
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[[File:Hun Sen (2016).jpg|thumb|Hun Sen, Cambodia's Prime Minister]] |
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Loans began to resume once again in October 22, 1999 when the Cambodian Government created New Economic and Financial Policies for 1999-2000.<ref name=":2" /> [[Keat Chhon]], Cambodian [[Ministry of Economy and Finance (Cambodia)|Minister of Economy and Finance]] and Chea Chanto Governor of the [[National Bank of Cambodia]] believed their economic program will support reconstruction and economic growth of Cambodia by improving social conditions and macroeconomic stability.<ref>{{Cite web|url=https://www.imf.org/external/np/loi/1999/093099.htm|title=Cambodia Letter of Intent, September 29, 1999|website=www.imf.org|access-date=2019-12-02}}</ref> The [[Memorandum]] outlined the formulation of a [[Cambodia/Government|new government in 1998]], and framework objectives focusing on Fiscal Reform. The IMF approved the new policies and estimated a economic growth of 6 percent if the Cambodian government is committed to the policies. <ref>{{Cite web|url=https://english.cambodiadaily.com/news/cambodia-gets-first-imf%e2%80%88loan-installment-90319/|title=Cambodia Gets First IMF Loan Installment|last=Chon|first=Gina|date=1999-10-29|website=The Cambodia Daily|language=en-US|access-date=2019-12-02}}</ref> |
Loans began to resume once again in October 22, 1999 when the Cambodian Government created New Economic and Financial Policies for 1999-2000.<ref name=":2" /> [[Keat Chhon]], Cambodian [[Ministry of Economy and Finance (Cambodia)|Minister of Economy and Finance]] and Chea Chanto Governor of the [[National Bank of Cambodia]] believed their economic program will support reconstruction and economic growth of Cambodia by improving social conditions and macroeconomic stability.<ref>{{Cite web|url=https://www.imf.org/external/np/loi/1999/093099.htm|title=Cambodia Letter of Intent, September 29, 1999|website=www.imf.org|access-date=2019-12-02}}</ref> The [[Memorandum]] outlined the formulation of a [[Cambodia/Government|new government in 1998]], and framework objectives focusing on Fiscal Reform. The IMF approved the new policies and estimated a economic growth of 6 percent if the Cambodian government is committed to the policies. <ref>{{Cite web|url=https://english.cambodiadaily.com/news/cambodia-gets-first-imf%e2%80%88loan-installment-90319/|title=Cambodia Gets First IMF Loan Installment|last=Chon|first=Gina|date=1999-10-29|website=The Cambodia Daily|language=en-US|access-date=2019-12-02}}</ref> |
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Revision as of 16:39, 3 December 2019
| Country Population: | 16.497 million |
|---|---|
| Date of Membership: | December 31, 1969 |
| Article IV/Country Report: | December 17, 2018 |
| Special Drawing Rights (SDR): | 88.71 million |
| Quota (SDR): | 175.0 million |
| Number of Arrangements: | 2 |
Cambodia and the International Monetary Fund
Cambodia officially joined the IMF in December 31st, 1969.[1] After years of internal and external strife, the Cambodian government is currently focusing its attention to rebuilding and renovating the national economy through grants and loans from multilateral sources like the International Monetary Fund. In March of 1994, the International Committee for the Reconstruction of Cambodia (ICORC) developed a comprehensive plan in effort to support Washington Consensus policy prescriptions.[2] These reforms aimed to shift the economy from a socialist state-controlled economy towards a capitalistic market-controlled one. Since then they’ve had a total of two arrangements addressing fiscal management. Directors approved a loan for SDR 28.0 million (about $41 million) in support of Cambodia’s 1995-96 macroeconomic and structural reformations.[3] In 1997 domestic political uncertainty’s following an alleged coup d’état halted IMF disbursements but resumed again in 1998 after the formation of a new government.[4]
History
In order to gain global economic recognition from the International Monetary Fund, Cambodia was required to make fiscal structural reforms that mimic the mechanisms of a liberal-market economy.[2] With that said, Democracy in Cambodia has little to no legitimacy in its economy. Following independence from French colonization in 1954, Cambodia has undergone four major economic and political changes.[5] Firstly, the abdication of the constitutional monarchy in 1955 by Sihanouk established Cambodia as a Socialist state. Then Sihanouk was overthrown by the Lon Nol dictatorship who was supported by the United States. [6] Subsequent to the Vietnam war, President Nixon secretly bombed Cambodia. [7]This bombing invigorated the formally small communist party the Khmer Rouge and as a result the Cambodian Civil war and Genocide began. The organization ultimately oust Lon Nol and formally established Cambodia as a self-contained communist country. Pol Pot, the Khmer Rouge leader, systemically implemented inhumane and anti-democratic policies which abolished money, private property, emptied cities and killed approximately 2 million Cambodian citizens.[8] The communist parties goal was to reinstate Cambodia's "golden age" before colonization, and United States imperialism; the time of the Ancient Khmer Empire which ruled South-East Asia and heavily relied on the agricultural sector.[9] By December 1978, Cambodia was invaded by Vietnam who implemented the new leader of the People's Republic of Kampuchea, Hun Sen, a former Khmer Rouge commander.[10] Guerrilla warfare still ensued and as a result Cambodia suffered international economic isolation. In the 1990's the United Nations convened a Paris Conference and achieved a comprehensive international settlement for the Cambodian Conflict. Currently, Cambodia once again is a constitutional monarchy in name but is ruled exclusively by the Coalition government controlled by Hun Sen.[11]
IMF Loans
The agreements outline in the Paris Peace Accords satisfied the conditionality agreements of "Good Governance" according the IMF standards. The first financial arrangement was approved on May 06, 1994 of a total of 84 million in SDR. [12] The arrangement type is under the Extended Credit Facility (EFC) aimed to assist Cambodia with poverty reduction and growth. [13] Although economic growth projections calculated an approximate 7 percent growth of Cambodian economy there was almost no growth in 1997. The Hun Sen Coup in 1997 increased inflation, and military spending. [8] Cambodia received only $11.7 million of the three year disbursement until early 1996 the IMF froze transactions in response to corrupt logging practices and no collection of revenues. [14]
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Loans began to resume once again in October 22, 1999 when the Cambodian Government created New Economic and Financial Policies for 1999-2000.[12] Keat Chhon, Cambodian Minister of Economy and Finance and Chea Chanto Governor of the National Bank of Cambodia believed their economic program will support reconstruction and economic growth of Cambodia by improving social conditions and macroeconomic stability.[15] The Memorandum outlined the formulation of a new government in 1998, and framework objectives focusing on Fiscal Reform. The IMF approved the new policies and estimated a economic growth of 6 percent if the Cambodian government is committed to the policies. [16]
- ^ "Cambodia and the IMF". IMF. Retrieved 2019-12-02.
- ^ a b – via Ear, Sophal. “CAMBODIA AND THE ‘WASHINGTON CONSENSUS.’” Crossroads: An Interdisciplinary Journal of Southeast Asian Studies, vol. 11, no. 2, 1997, pp. 73–97. JSTOR, www.jstor.org/stable/40860626.
{{cite journal}}: Cite journal requires|journal=(help); Missing or empty|title=(help) - ^ "Press Release: IMF Approves Second Annual Loan for Cambodia under ESAF". IMF. Retrieved 2019-12-02.
- ^ "Public Information Notice: IMF Concludes Article IV Consultation with Cambodia". IMF. Retrieved 2019-12-02.
- ^ Sisowath, Chanto. “Globalization and Generational Change: The Evolution of Cambodia’s Social Structure.” Fairness, Globalization, and Public Institutions: East Asia and Beyond, by Jim Dator et al., University of Hawai'i Press, HONOLULU, 2006, pp. 300–311. JSTOR, www.jstor.org/stable/j.ctv3zp081.26.
- ^ "Lon Nol | president of Cambodia". Encyclopedia Britannica. Retrieved 2019-12-02.
- ^ "Nixon's Fatal Decision - The Secret Bombing of Cambodia". sites.google.com. Retrieved 2019-12-02.
- ^ a b “Cambodia.” The Politics of Human Rights in East Asia, by Kenneth Christie and Denny Roy, Pluto Press, LONDON; STERLING, VIRGINIA, 2001, pp. 199–216. JSTOR, www.jstor.org/stable/j.ctt18fs8cj.9.
- ^ "Cambodia - The Economy under the Khmer Rouge, 1975-79". countrystudies.us. Retrieved 2019-12-02.
- ^ "A coup in Cambodia." The Economist 12 July 1997: 33+. Business Insights: Global. Web. 2 Dec. 2019.
- ^ "Cambodia: A Historical Overview". Asia Society. Retrieved 2019-12-02.
- ^ a b "Financial Position in the Fund for Cambodia as of October 31, 2019". www.imf.org. Retrieved 2019-12-02.
- ^ "IMF Extended Credit Facility (ECF)". IMF. Retrieved 2019-12-02.
- ^ Grainger, Matthew. "IMF freezes funding | Phnom Penh Post". www.phnompenhpost.com. Retrieved 2019-12-02.
- ^ "Cambodia Letter of Intent, September 29, 1999". www.imf.org. Retrieved 2019-12-02.
- ^ Chon, Gina (1999-10-29). "Cambodia Gets First IMF Loan Installment". The Cambodia Daily. Retrieved 2019-12-02.