Friday, September 10, 2010

Kingdom ranks 109th for business climate

Friday, 10 September 2010 15:01
The Phnom Penh
Catherine James

CAMBODIA’S business environment competitiveness has marginally improved, according to the World Economic Forum’s ranking of 139 countries, but the Kingdom continues to lag far behind its regional neighbours.

The forum’s annual competitiveness study scores 110 factors across 12 areas affecting an economy’s business climate: institutions, infrastructure, macroeconomic environment, health, education, goods and labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

Cambodia, which was ranked 109th, was the worst performer of the 10 countries in the Association of Southeast Asian Nations, excluding Laos and Myanmar which were not included in the survey.

This year’s rank is one better than last year’s 110th position.

Singapore was ranked third in the world, behind only Switzerland and Sweden – first and second respectively. The United States fell from its second place in 2009, to fourth place. Japan was the only other Asian nation to make the top 10.

Malaysia, Brunei, Thailand and Indonesia – in order of rank – made it into the top 50, all maintaining a fairly steady grade from last year. Vietnam, however, noticeably improved its position to 59 from 75. The Philippines was the second-worst ASEAN performer, coming in at 85, up from 87.

Of the 111 factors assessed, Cambodia’s standout strengths were ranking 12th in the world for inflation, 15th for total tax rate in the goods market, 33rd for female participation in the workforce, 35th for pay and productivity, and 37th for business impact of rules on foreign direct investment.

Cambodia’s competitiveness continues to be strangled by corruption and inefficient bureaucracy and infrastructure, the study said.

Of 139 countries, the Kingdom ranked 124th for irregular payments and bribes, 125th for transparency in government policy-making and 132nd for time required to start a business.

Its worst grade among the 111 factors was “fixed telephone lines”, for which it ranked the fifth-worst in the world at 135.

In an opinion survey on the most problematic factors for doing business in their country, found corruption topped the list in Cambodia, closely by inefficient government bureaucracy, inadequately educated workforce and inadequate infrastructure.

Tuesday, August 24, 2010

1,757 got jobs via 'amakudari' from '07 to '09

Tuesday, Aug. 24, 2010
Kyodo News

Between 2007 and 2009, 1,757 active and former ranking bureaucrats found employment at organizations and companies that in fiscal 2008 received subsidies or business contracts from the government, the internal affairs ministry said Monday.

Ministries and other agencies will be required to examine whether those subsidies and contract awards, worth a combined ¥7.2 trillion, were used to fund the employment of the former bureaucrats or wasted on unnecessary projects, officials said.

A total of 1,676 officials landed jobs between 2007 and 2009 at entities administered by their former ministry or agency in the practice known as "amakudari," according to a probe conducted by the Internal Affairs and Communications Ministry starting in March.

The Democratic Party of Japan suspects ministries and agencies award contracts to businesses and other entities on condition that they give jobs to retired bureaucrats.

Government offices are due to inspect organizations that have hired former officials or received government funding totaling ¥5 million or more to find out whether they got business contracts in money-for-favor deals and wasted taxpayer money as a result. Their findings, to be reported to the internal affairs ministry, are to be taken into account in drawing up the fiscal 2011 budget.

Meanwhile, another internal affairs ministry survey points to yet more evidence of cozy amakudari ties between ex-bureaucrats and firms offering them lucrative positions.

Some 1,528 senior positions at government-linked organizations are being occupied by former government officials for at least the third successive time from the same ministry or agency, according to the ministry survey, which covered up to April 1.

Of the officials working at such government-affiliated organizations or other entities, whose work is subsidized by or carried out on behalf of the government, 4,916 were former government officials aged 65 or older.

The government intends to ban in principle the hiring of retired civil servants as senior officials of government-affiliated agencies and open up recruitment to the public.

Bodies that receive at least ¥5 million in taxpayer money annually will be called on not to fill their senior positions with ex-bureaucrats coming from the same ministries or agencies three times in succession.

The DPJ-led government is trying to eradicate amakudari, but experts say the party's efforts to ban job replacements won't get anywhere without fundamental changes in the civil servant system, in which only a limited number of top positions are available and officials who fail to advance have no choice but to take early retirement.

http://search.japantimes.co.jp/cgi-bin/nn20100824a5.html

Thursday, August 12, 2010

Having faith in Cambodia’s youths

The Phnom Penh Post
Thursday, 12 August 2010 15:01 Richard Bridle

Analysis

Richard Bridle

Today marks our celebration of both the annual International Youth Day and the launch of the International Year of Youth, under the theme “Dialogue and Mutual Understanding”.

The United Nations in Cambodia recognises the importance of Cambodia’s young people to the future of this country, and we welcome this spotlight on the needs and aspirations of one-third of Cambodia’s people.

It is our duty to listen to those voices and engage in that dialogue, to include Cambodia’s young people in the development process and in the future of their country.

The UN General Assembly defines youths as individuals aged between 15 and 24 years, and young people between 10 and 24 years of age. The Ministry of Education, Youth and Sport, however, takes a broader view and defines youth as those between the ages of 14 and 30 years of age.

Cambodia’s population iof young people, proportionately one of the largest in Southeast Asia, presents significant opportunities, but it also presents tremendous challenges.

Despite recent rapid economic growth, there are simply not enough jobs for youths.

Unemployment among youths is higher than for any other age group. At the current pace of job creation, Cambodia will not have the capacity to place the increasing numbers of young people who are entering the workforce each year.

Currently estimated at 250,000-300,000 new entrants to the labour market each year, this number is expected to rise to 400,000 in the coming years.

The significant numbers of young people who find themselves unemployed or underemployed are all vulnerable to trafficking, entry into illegal sectors and use.

Rural poor who migrate to cities for work are more likely than others to be homeless and unemployed, and are more likely to turn to criminal behaviour or to migrate in search of employment as unskilled labourers.

We know that education is one of the best options to link youths with decent employment opportunities, but access to education at all levels in Cambodia continues to be unevenly distributed between urban and rural areas, as well as between rich and poor.

Additionally, poverty and economic shocks force many young people to leave school without acquiring the basic skills they need for work and for life. Only half of young people complete primary school, and only a quarter proceed to lower secondary school.

And it is important to note that school attendance alone is not a panacea. The quality and substance of their education is what will allow the young people of Cambodia to take their place in an increasingly competitive region.

Education will also enable the youth of Cambodia to make valuable contributions to their country’s development. Soon today’s youth will be Cambodia’s leaders, educators, businesspeople and farmers. If youths are to become an engine of growth for this country, much more needs to be done to ensure their meaningful participation in education, employment, development and governance.

The United Nations system in Cambodia works with youths to ensure that their voices are heard and that their needs and concerns are addressed in our work. The issues and concerns affecting youths are integrated into each area of the UN Development Assistance Framework 2011-2015, and this will continue to inform the work we undertake.

For example, in education, the UN in Cambodia is supporting government to: strengthen and implement policies and strategies for technical and vocational education and training; increase the quality of training programmes through developing skills standards, testing, accreditation and certification procedures; and increasing the evidence base for monitoring equitable access to quality basic education.

The UN Youth Advisory Panel, the first of its kind in the world, gives youths an opportunity to become more informed about development, the United Nations, and our ongoing commitment to the issues that affect young people. And it also serves to remind us of the importance of youths to development.

The Situation Analysis of Youth in Cambodia, published by the UN in Cambodia in October 2009, laid the groundwork for future work in this area, and the findings of this study contributed to the Ministry of Education, Youth and Sport’s crucial work on the National Youth Policy.

Cambodia’s youths are the most affected sector of society in terms of coping with rapid economic growth and social change, but they are also the most resilient and adaptable segment of the population.

The UN in Cambodia will continue to work with young people as they strive to create a better future for themselves, for their families and for their country.

Richard Bridle is acting UN resident coordinator for Camboadia.