SINGAPORE, Southeast Asia's (SEA) mobile users are expected to hit 453.3 million subscribers by the close of this year, growing 18.4 percent over 2008. Billings are estimated to grow by 13.6 percent year-on-year to top US$32 billion by year-end.
New analysis from Frost & Sullivan (http://www.wireless.frost.com), 2009 Southeast Asia Wireless Outlook, finds that the mobile subscriber base in the region - covering seven Southeast Asian nations - grew 36 percent year-on-year to reach 383 million users in 2008, for a corresponding mobile penetration of 72.5 percent. By the close of year 2014, Frost & Sullivan estimates SEA's mobile subscribers to reach 606 million, growing at a CAGR (compound annual growth rate) of eight percent (2009-2014).
SEA's mobile services grossed an estimated US$28.3 billion in revenues in 2008, and are forecasted to reach billings of US$36.2 billion by end-2014, at a CAGR of 4.2 percent (2009-2014).
If you are interested in a virtual brochure, which provides a brief synopsis and a table of content of the research on the Southeast Asia wireless market, then send an e-mail to Sarah Lourdes at sarah.lourdes@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.
The diversity of SEA markets means that growth will be driven by a mix of subscriber net additions of consumers in the rural districts - many of whom will receive mobile connectivity for the first time as networks continue to expand beyond major urban areas - as well as the increase in data usage and higher-end services brought on by 3G.
Frost & Sullivan industry analyst Shaker Amin explains, "In saturated markets like Singapore and Malaysia with mobile penetration already at 131 percent and 97.8 percent respectively, growth, although marginal, will largely be fuelled by user migration to 3G, mobile broadband uptake and generally, the higher consumer appetite for mobile content and data services.
"On the other extreme, growing markets like Cambodia, Vietnam, Indonesia and the Philippines, with mobile penetration well below 75 percent and even lower fixed broadband penetration, are likely to see growth in new subscriber additions," he says, adding that these users are predominantly low-ARPU (average revenue per user) prepaid subscribers.
Amin believes that mobile usage in these growing markets will continue to be dominated by voice and basic text messaging services. He says, "Although 3G will be making its entry into many of these markets, it will be some years still before 3G services become commonplace."
Only about six percent (22.9 million) of SEA's total mobile users last year were 3G subscribers.
The race to roll-out 3G services in the hugely competitive growing markets however shows no signs of abating. Cambodia, Indonesia, Thailand and Vietnam - each have no less than six mobile operators; Indonesia the most with eleven. "As operators compete fiercely to enrol new subscribers, 3G will be the technology to eventually deliver [mobile] broadband to the rural communities that are not likely to ever receive fixed broadband access," Amin adds.
In 2008, SEA accounted for approximately 21.5 percent of the total mobile users in Asia-Pacific (18 countries).
The 2009 Southeast Asia Wireless Outlook study is part of the Mobile & Wireless Growth Partnership Service program, which also includes research in the following markets: WiMAX, mobile content, mobile advertising, mobile broadband, smartphones, mobile CAPEX (capital expenditure), 3G-embedded devices and LTE (Long Term Evolution) networks. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com
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Wednesday, August 19, 2009
Southeast Asian Mobile Sector to Surpass 453 Million Subs, US$32 Billion in 2009, Frost & Sullivan Predicts
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Former Premier’s Daughter Speaks Against Duch
By Kong Sothanarith, VOA Khmer
Antonya Tioulong, whose father was the prime minister in 1962, told the UN-backed Khmer Rouge tribunal on Tuesday that Duch’s crimes as a prison administrator were unpardonable.
One of seven daughters of former premier Tioulong Nhiek, Tioulong filed as a civil party complainant in the case, having lost a sister and brother-in-law in the killing machine of Tuol Sleng prison.
Prosecutors say 12,380 people were sent to their deaths at the prison.
“We must teach the new generation of Cambodians that this crime is not pardonable,” she told the court. “The criminal must recognize [his crime], and there must be justice for that.”
Tioulong works for L’Express newspaper in France and is the sister of Tioulong Somura, the wife of Sam Rainsy and an opposition lawmaker.
“I beg the [Trial] Chamber to issue a verdict fitting the crimes committed by the accused,” Antonya Tioulong told the court.
Duch, whose real name is Kaing Kek Iev, accepted the testimony, but he said Tioulong’s sister, Rainsy, died from illness.
Tioulong’s testimony follows statements from another civil party complainant on Monday, New Zealander Robert Hamill, whose brother was one of the few foreigners killed at Tuol Sleng.
Hamill told the court he wanted Duch to experience the same punishments his prisoners were subject to, including electrocution of the genitals, forced eating of feces, suffocation in water and a guillotine.
“I want you to have this pain; I want you to suffer,” he said in court.
There are no allowances for corporeal punishment under the tribunal—the maximum punishment is a life sentence—though Duch told the court last week he would accept stoning from the Cambodian people for his crimes.
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Lightning strikes kill 113 in Cambodia in 2009
Phnom Penh - Lightning has killed 113 people so far this year in Cambodia, making 2009 the worst in recent years for deaths attributable to the natural phenomenon, national media reported. Four more people have been struck and killed by lightning since Saturday, the Cambodia Daily newspaper reported, including a 16-year-old youth walking two cows across a rice field on Tuesday.
The government's National Committee for Disaster Management (NCDM) said 93 people died last year from lightning strikes, more than double the 45 who were killed in 2007.
The deputy head of the NCDM, Nhim Vanda, said it was unclear why numbers are rising year on year, but said climate change could in part be to blame.
"This year lightning has killed more than 100 people, but it is more usual for lightning to kill around 40 people per year," Nhim Vanda told the newspaper.
He said the government is making efforts to educate Cambodians about the dangers of lightning, and how to protect themselves in the event of a storm.
"Everyone should turn off TVs, radios and telephones, and refrain from touching metal objects during rainstorms," he said.
The government will hold a series of workshops next year to educate people about the dangers of lightning.
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Tuesday, August 18, 2009
Cambodia approves ASEAN Trade in Goods Agreement
PHNOM PENH (Xinhua) - Cambodian National Assembly yesterday approved the ASEAN Trade in Goods Agreement, paving the way for the Kingdom to implement trade facilitation and tariff liberalization among ASEAN member countries.
The agreement is aimed at achieving the establishment of the ASEAN market and the ASEAN Economic Community by 2015.
This agreement covers, among others, tariff liberalization, elimination of non-tariff barriers, rules of origin, trade facilitation, customs procedures, standards and conformance, and sanitary and phytosanitary (SPS) measures.
"It will help reduce or omit import tax, favorable tax for good items from the partners and help facilitate private sector for their business, as well as speed up the flow of investment capital from the outside world," said Nin Saphan, chairwoman for the committee of public work, transport, posts and telecommunication, industry, mine, energy, commerce, urbanization, land management and construction.
"Cambodia has prepared itself to join with other countries in regional integration like the ASEAN Trade in Goods Agreement, and for Cambodia, the agreement will come into effect in 2018. So we still have time to take actions for trade deal," said Kong Vibol, secretary of state for the Ministry of Economy and Finance.
"Our country still need the state revenue from the import tax for supporting the state expenditure and development infrastructures and the country is the youngest in ASEAN. Therefore, other members allow us to fully implement the agreement in 2018," he said.
"The agreement will also help narrowing the development gap between the ASEAN's old and new members," he added.
It is said that after 2018, Cambodia is still allowed to charge 5 percent of customs duties on 61 farm products imported from other ASEAN countries.
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Cambodia: Pedal to the mettle
By Kerri Jackson
Silver has crossed my palm. Or, more specifically, my wrist. And being fatally attracted to shiny things as I am, silver - in a metaphorical, American dollar sense - is soon crossing the palm of the Cambodian girl now eyeing me expectantly.
I'm in a small silversmith village about two hours' drive north of Phnom Penh, on the potholed, bustling NH5 highway to Battambang in Cambodia's north west.
The city is another bone-rattling four hours away by bus, so this is certainly not the fastest way to travel between the country's two largest cities, but it is a fantastic way to see the rural back blocks of this country. From the emerald-green rice paddies to the clusters of slow-moving oxen, this is a very different Cambodia from the hustle and edginess of Phnom Penh. The only similarity is the motor scooters which beep and toot their way along the highway - although here they're laden with livestock rather than school children.
Then there are the small villages, like this one where our bus stops to load up with silver. Each village between Phnom Penh and Battambang seems to specialise in a craft or industry, whether it's this exquisite silversmithing, pottery, stone carving, or silk farming and weaving.
Each is a small hive for tourists, but they are still a better place to buy your treasures than the heaving markets of Phnom Penh if you want "buy-from-the-manufacturer" bargains.
So it is that our bus now resembles a blinged-out Priscilla wagon, at least on the inside, as it wends its way into Battambang.
This city of some 140,000 people is an elegantly wasted place - comprising just five named streets and a beautiful collection of ramshackle French colonial buildings - located along the meandering riverbanks of Stung Sangker.
Today Battambang city works as a hub, servicing the surrounding agricultural region, home to what it claims is the country's best rice, and a fledgling tourist industry. Visitors come here for the French architecture but stay for the easy pace, the friendly locals and the beautiful scenery.
The vast market seems to take up the entire centre of town. It's a sometimes sobering, olfactory-challenging introduction to Third World food storage and preparation but mostly it's a thriving community centre. With vendors selling everything from fish, meat and vegetables to ready-made snacks, clothing and bicycles, this is the beating heart of this small city.
Once you've explored the town centre there's plenty to see in the surrounding areas. And one of the best ways to see it all is by bicycle.
Cambodia is as flat a country as you're every likely to find, making it perfect for pedal-powered sightseeing. However, temperatures can be scorching, so a word of advice: start your trip early in the day to avoid pedalling through the searing heat of the midday sun. We learnt that the hard way.
The effort of battling through chaotic early-morning scooter traffic is soon rewarded with a calm riverside ride through the city's outskirts towards Wat Slaket, where you can wander among the picturesque temple buildings and monks' living quarters. The monks are friendly and happy to chat to visitors.
"Thank you for your smile. I give you my smile too. It is important to give your smile to people," says one, his smile beaming from a window.
Another 12-year-old boy explains in Khmer to our guide that he asked his mother to let him live at the monaster, y already recognising it as offering a better type life in this very poor country.
For us though, it's time to saddle up again for the big push on through villages and past rice paddies for another 11km to the spectacular Wat Ek Phnom.
Along the way, the roads are lined with stalls, drying rice paper and other bicycles laden down with produce and merchandise. Children rush out of houses giggling, waving and keen to practise their language skills with "hellos!" or "bonjours!"
Wat Ek Phnom, a partly ruined 11th-century temple that was once Hindu but now Buddhist, is a calm, contemplative place. On one side is a lotus-filled water reservoir; on the other, a giant Buddha statue stands majestically amongst the cattle.
Refreshed with a fresh coconut drink, it's time to get our slightly saddle-sore hides back on those bikes for the ride back to Battambang.
As the temperature bolts merrily towards 40C, all sensible Cambodians have retired to the shade for a siesta while we desperately plug our pedals homeward dreaming of hotel swimming pools or cold showers.
Instead, there's the quick, cooling violence of a torrential thunderstorm as we're off the bikes and on the bus for the ride to Prasat Banan, an imposing five-towered temple atop a hill, 30km south of Battambang. More pressingly, it's atop some 358 steps. They are, thankfully, largely under the shade, but still a big ask of bicycle-weary legs. But by the time you reach the top, and let the dots clear from your eyes, the panoramic views across the patchworked countryside more than make up for it. The temple is another moody 11th-century, falling-down stone structure locals say was a model for the grander, more famous temples at Angkor.
There's one more surprise on the road back to Battambang - the Chan Thay Chhoeng winery. Yes, a winery.
Here, one Cambodian woman has taught herself winemaking from English-language books, while teaching herself English from a dictionary. The wine, from a sister in France, produces wine, that is, to be fair, a little rough around the edges but the commitment and story behind it, make it seem a little sweeter.
It's a good spot to wrap up a tour of this area as it seems to encapsulate the mix of cultures and history that is Battambang's biggest asset.
Kerri Jackson travelled to Cambodia with Cathay Pacific and Adventure World
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Webb Assures Cambodia Of "very Close Look" At The Trade Act
U.S. Senator Jim Webb, who is on a two-week tour of five South-East Asian nations, made a lightning visit to Cambodia Tuesday to 'invigorate' the United States' relationship with that country.
Talking to reporters at the capital, Phnom Penh, Webb said he assured during talks with the minister of commerce that Washington will take a "very close look" at the Trade Act of 2009, a measure introduced to provide duty-free access to the U.S. market for garments made in 14 least-developed countries.
He stressed the need for labor standards in beneficiary countries meeting international standards.
He said he discussed with the leaders of two of the opposition groups about the ongoing crackdown by the Cambodian government against its opponents. The U.S. wants to do "what we can to encourage political diversity in Cambodia," he added.
He is to meet with Cambodian Prime Minister Hun Sen later in the day.
Chairman of the U.S. Senate's Sub-Committee on East Asian and Pacific Affairs, Webb visited Laos, Myanmar, and Thailand with the mission of the U.S. government's re-engagement with Southeast Asia at all levels.
He will wind up the tour with a visit to Vietnam later Tuesday.
by RTT Staff Writer
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US Senator Jim Webb makes quick stop in Cambodia on Asian tour
Phnom Penh - US Senator Jim Webb made a lightning visit to Cambodia on Tuesday as part of a regional trip designed to 'invigorate the relationship' between the United States and South-East Asian nations.
Webb is in the region in his capacity as chairman of the Sub-Committee on East Asian and Pacific Affairs for the US Senate's Foreign Relations Committee. His trip takes in Cambodia, Laos, Myanmar, Thailand and Vietnam.
At a press conference in Phnom Penh on Tuesday ahead of a scheduled meeting with Cambodian Prime Minister Hun Sen, Webb was asked about the ongoing crackdown by the Cambodian government against its opponents.
The question followed a strong European Union statement issued earlier in August in which the EU warned that the government's actions could narrow Cambodia's democratic space.
Webb would not be drawn on whether or how the US would exert pressure on Phnom Penh to respect democratic rights, saying only that the US wants to do 'what we can to encourage political diversity in Cambodia.'
'As a part of my visit here I met with the leaders of two of the opposition groups to hear their views, and we had [a] discussion with respect to the issues that you mentioned, and we will continue to listen to people from all sides,' Webb said. 'I listened in great detail to the concerns of the two opposition leaders on that topic.'
He was more forthcoming on the Trade Act of 2009, a measure introduced by Democratic Senator Dianne Feinstein to provide duty-free access to the US market for garments made in 14 least-developed countries.
Cambodia, whose economically vital garment industry has been battered over the past year, would benefit from the passage of the bill. However the legislation is currently languishing in the US Senate.
'That issue was the subject of a pretty lengthy discussion with the minister of commerce, and I committed to him that we'll take a very close look at the legislation,' Webb said.
Webb said one key concern is that labour standards in beneficiary countries should meet international standards.
'It's very important to the Democratic Party in the United States to make sure we have a fair playing field among our workers and workers overseas,' he explained. 'That being said, the minister made a very compelling case for us to look at that legislation and we will do that when we get back.'
Webb leaves Cambodia later on Tuesday headed to Vietnam.
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Rob Hamill faces brother's killer
By JEFF NEEMS - Waikato Times
Hamilton man Rob Hamill faced his brother's alleged killer in a Cambodian court yesterday, but the former torture camp commandant claims he can not remember him.
Speaking to the Times from Phnom Penh shortly after testifying at the UN-backed trial of Kaing Guek Eav, better known as Duch and the head of the notorious S21 prison camp under Pol Pot's Khymer Rouge regime, Mr Hamill was not surprised by Duch's claim he did not recall Mr Hamill's older brother Kerry.
Kerry Hamill is believed to have been one of a handful of Westerners killed in the camp between 1975 and 1979. Kerry Hamill's yacht strayed into Cambodian waters in 1978, and while exact details of his death remain unknown, he is believed to have been tortured and executed while in S21.
Duch has testified he carried out orders from the regime's late leader Pol Pot, and Mr Hamill said Duch continued with that defence when he gave the equivalent of a victim impact statement in Phnom Penh's Extraordinary Chambers of Courts of Cambodia.
"His out is that he was just taking orders. It was either that, or be killed himself."
An emotionally drained Mr Hamill said there was sense of relief at having made his statement, aimed at court judges and detailing the huge impact of his brother's death on the Hamill family. He was able to make extensive eye contact with Duch, who sat just metres from him.
"It was very difficult, but he was certainly very attentive," Mr Hamill said. "I didn't look at him that much when I was making my statement - I was really looking up at the judges."
Reading his statement from notes, Mr Hamill said he was able to look directly at Duch when he made "a couple of pointed comments", while Mr Hamill's wife Rachel noticed Duch nervously fidgeting during particularly emotional parts of her husband's testimony.
"I had some emotional moments in there," Mr Hamill said of his appearance, which lasted just under an hour. "I was wiping away a few tears as I was telling the story."
"Whenever I said things that were emotionally charged about him (Duch), he was shuffling, pretty nervy..."
Mr Hamill believed Duch to be a "very sharp cookie, playing the court really well". Mr Hamill was able to directly question Duch, and asked him how long his brother was interned for.
"But the answer I got was that he (Duch) didn't know...which was a bit disappointing. He just didn't remember."
"The longer Kerry was in there, the worse it would've been," Mr Hamill said. "I know he was in there for at least two months."
Ad Feedback Mr Hamill said Duch recalled Kerry Hamill's British crewmate John Dewhurst, "and he just said they both were killed at the same time".
"He said specifically he remembered the British man, but not my brother. It is disappointing, and I find it hard to believe...they were brought in at the same time, two Westerners."
Mr Hamill said although somewhat surreal, events at the trial had transpired much as he had expected. While he had not neccessarily gained any more information about his brother's death, Mr Hamill said he felt it was significant to represent the estimated 17,000 people killed in the camp, and their families.
Feedback from lawyers participating in the trial was that Mr Hamill's statement and questioning had made a strong impact on the judges.
"It was pretty powerful, being in there, and being part of that. I really felt I got the message across that I wanted to."
The trip to Cambodia for the trial will be an integral part of a documentary on Mr Hamill's search for justice for his brother, entitled Brother No 1.
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Monday, August 17, 2009
Mekong River Raises Cost of Trans-Asia Railway
By Luke Hunt, Phnom Penh
Plans to finally finish the massive Trans-Asia Railway have hit cost hurdles in Cambodia. The initial findings in a Chinese feasibility study shows the need to build several bridges in the Mekong River Delta will raise the final cost of linking Phnom Penh with the Vietnamese border by rail. New estimates put the cost at $600 million for the Phnom Penh to Vietnam leg.
A preliminary technical study report says that two big bridges - a thousand meter span over the Mekong River and 1,500 meter bridge over the Tonle Sap - will be the big ticket items. The Chinese-funded study, which will be published soon, estimates they will have a combined price tag of $262 million.
More than $100 million will also be spent on smaller bridges to enable safe passage across the Mekong Delta.
Cambodia has divided its railway system in two. The China Railway Group will build an entirely new 255 kilometer line in the east while Australia's Toll Holdings will take control and reconstruct old French-built lines in the west.
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Derek Mayes is a board member of the Australian Business Association of Cambodia. He says the economic benefits will be enormous for the Southeast Asian economy, with rail offering a cheaper and safer alternative to road.
"I think it will be very large, it certainly will increase traffic on the rails because road transport as we know is very expensive and considerably dangerous, considering the safety aspects on the roads here," Mayes said.
The problem, though, is the initial costs. Touch Chankosal is Cambodia's undersecretary of state for the Ministry of Public Works and Transport. He says that the $600 million needed to connect Phnom Penh to Vietnam represents a huge sum for the Cambodians. The government probably will have to seek additional capital from outside the country, possibly the Asian Development Bank, if it is to be completed.
The Trans-Asian Railway project intends to use existing and new rail lines to connect all of Asia to Central Asia, South Asia and Western Europe. In all, tracks will link 28 countries, although only less than half that number has ratified the agreement with the United Nations Economic and Social Commission for Asia and the Pacific.
In Southeast Asia, the line will connect Singapore to Turkey, with tracks running through Burma, Cambodia, Thailand and Vietnam.
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Brother of New Zealander jailed, killed by Cambodia's Khmer Rouge rages at prison commander
PHNOM PENH, Cambodia (AP) — The brother of a New Zealander tortured and killed by the Khmer Rouge three decades ago told the man who ordered the execution on Monday that he wished him a similarly gruesome fate.
Kerry Hamill was 28 when his yacht was blown off course into Cambodian waters in 1978, and he was captured by the radical communist regime. He and a shipmate, Briton John Dewhirst, were taken to Phnom Penh's S-21 prison and later killed.
Kerry's brother, Rob, wept as he testified at the trial of S-21's commander, Kaing Guek Eav, also known as Duch — the first of five senior Khmer Rouge defendants to be tried by a U.N.-assisted tribunal and the only one to acknowledge responsibility for his actions.
"Duch, at times I have wanted to smash you, to use your words. The same way that you smashed so many others," Rob Hamill said, sitting in a suit and tie, his hands folded before him. "Smash" was the euphemism the Khmer Rouge used when ordering executions.
"At times, I have imagined you shackled, starved, whipped and clubbed, viciously. I have imagined your scrotum electrified, being forced to eat your own feces, being nearly drowned and having your throat cut," said Hamill, referring to some of the horrors faced by prisoners.
Duch sat behind him, expressionless.
"I have wanted that to be your experience, your reality. I have wanted you to suffer the way you made Kerry and so many others (suffer)," Hamill said.
About a dozen Westerners were among the estimated 16,000 people held at the prison before being killed. The communist regime's radical policies while in power from 1975-79 caused the deaths of an estimated 1.7 million people nationwide by execution, overwork, disease and malnutrition.
Rob Hamill, 45, a rower who represented New Zealand at the 1996 Atlanta Olympics, said his family learned of his brother's death 16 months after he disappeared. Their parents read in a newspaper that he was executed after two months at S-21.
"Death not by shipwreck, not by drowning or freak accident, but death by torture. Death by torture not over a few seconds or minutes or hours or days or weeks even," said Hamill.
Asked by judges for his response, Duch (pronounced DOIK) repeated his earlier testimony that he received orders to kill the Westerners and burn their bodies.
He asked for forgiveness from the victims' families, acknowledging that they had suffered miserably.
He said he was not offended by being blamed.
"Even if the people threw stones at me and caused my death, I would not say anything," he told the court.
Duch is charged with crimes against humanity, war crimes, torture and murder, and could face a maximum penalty of life in prison. Cambodia has no death penalty.
His trial is expected to wrap up by the end of the year.
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Malaria deaths, infections in Cambodia on rise
PHNOM PENH, The reported number of fatal malaria cases almost doubled in the first half of 2009 compared with the same period last year, while the overall number of infections rose more than 58 percent, local media reported Monday, citing the figures from the Ministry of Health officials.
Tol Bunkea, chief epidemiologist at the Ministry of Health, was quoted by the Cambodia Daily as saying that the number of malaria deaths this year stood at 130 out of a total of 32,638 registered malaria cases. Dr Bunkea said that in the first half of 2008 there were 67 fatalities out of 20,563 reported cases of malaria.
Duong Socheat, director of National Center of Parasitology, Entomology, and Malaria Control, said the increase of infections was due to the early rains and the fact that the government had distributed mosquito nets too late this year.
Dr Socheat said the increasing number of people migrating to remote, forested areas on the Cambodian-Thai border, such as in Pailin and Oddar Meanchey provinces, was also leading to a rise in malaria cases.
"People are moving there to work, clear the forest and do farming in areas that have a lot of mosquitoes. Then they come back with malaria," he was quoted as saying, and adding that, "this migration is still the major cause of this disease."
Dr Socheat said the government is also increasingly concerned about the effectiveness of medicine for malaria treatment, as recent international studies found strains of drug resistant malaria in western Cambodia "Before it took 48 hours to kill the parasite, but now [in some cases] it takes 80 hours," he said.
In February, the World Health Organization started a 22.5 million U.S. dollars cross-border project to contain the drug-resistant malaria strains.
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Cambodia: Appointment Of Judges
Cambodia: Appointment Of Judges And Prosecutors Is Unconstitutional
Lately there has been a hectic time within the Cambodian judiciary with the actual and planned retirement and appointments of many judges and prosecutors. The government has retired and replaced half of the members, two ex-officio and two appointed, of the Supreme Council of the Magistracy (SCM), the supreme judicial body responsible for the nomination and discipline of judges and prosecutors. A further 27 are also to be retired. In the meantime, some 32 judges and prosecutors, including four who are the de facto age of retirement of 60, have been appointed to new positions.
In a statement dated 7 August 2009 (see CAMBODIA: Law on the statute of judges, not their retirement, is the right end from which to tackle judicial reform), the Asian Human Rights Commission (AHRC) has already pointed out the unconstitutionality of the government’s infringement upon the jurisdiction and independence of the SCM when it had bypassed it and retired and replaced those four SCM members. According to the country’s Constitution, the nomination, including appointment, retirement and transfer, as well as the discipline of judges and prosecutors are the responsibility of the SCM, and not that of the government. The SCM is the supreme body of the judiciary which is chaired by the country’s king and which also has the responsibility of ensuring judicial independence.
The AHRC has also urged the Cambodian government to enact two long-overdue laws which the country has specifically stipulated (Art.135 of the Constitution) and which would provide the legal background and framework for the judiciary as required under Art.14 of the International Covenant on Civil and Political Rights on the right to a fair trial by an independent, competent and impartial tribunal established by law. With the law on the statute of judges and prosecutors, the age of retirement would be officially fixed and known, and actual retirement could be set without arousing any suspicion of favouritism for those who wish to remain in active service.
The AHRC has further noticed that the appointment of judges and prosecutors, as shown in the king’s successive appointment decrees, has not respected the principle of separation of powers and the independence of the judiciary as enshrined the country’s Constitutions (Arts 51 and 128). In these appointments, the Minister of Justice, a cabinet member and also a member of the SCM, has made nomination proposals, received the approval of the SCM and submitted them to the king for signing. For some appointments, the SCM has been bypassed altogether and the proposals directly submitted to the king for signature.
This practice contravenes Art 134 of the country’s Constitution which says, among other things, that “The Supreme Council of the Magistracy shall make proposals to the King on the appointment of judges and prosecutors to all courts.” It should be declared unconstitutional when, according Art. 150 of the same Constitution, “Laws and decisions by the State institutions shall have to be in strict conformity with the Constitution.”
The Cambodian government and its ministry of justice in particular seem to have exploited the absence of the constitutional review or any other forms of judicial review of their decisions and have tried to rule by decree, at least in appointment and retirement of judges and prosecutors. The constitutional review of laws seems clear cut when a specific number of public figures and even ordinary citizens may request for it. However, there is almost a complete silence over the constitutional review of decisions of state institutions, the government and its ministries included. Only a litigant who feels his or her rights are affected by such a decision could raise the issue of its unconstitutionality with the Constitutional Council through the Supreme Court. Unlike in the case of promulgated laws, neither any public figure mentioned above nor any concerned citizen may request for the constitutional review of decisions of state institutions. Nor is the Constitutional Council habilitated to do this constitutional
The AHRC strongly urges the Minister of Justice to respect the principle of separation of powers and the independence of the judiciary and the SCM, refrain from infringing upon the jurisdiction of the SCM, and let this supreme judicial body fully exercise its full constitutional authority over the nomination and discipline of judges and prosecutors. The Minister of Justice should relinquish its control of the SCM Secretariat and transfer it back where it belongs, that is, to the SCM. It should instead secure for the SCM adequate resources to enable it to fulfill its constitutional duties in the nomination and discipline of judges and prosecutors, and in the independence of the judiciary.
AHRC further urges that all decisions of state institutions, including those of the government and the Ministry of Justice regarding the nomination and discipline of judges and prosecutors as well as the independence of the judiciary, should be in strict conformity with the Constitution as specifically stipulated under its Art 150. The Law on the Organization and Functioning of the Constitutional Council should therefore be amended in order to subject such decisions to the same constitutional review as all laws.
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Vietnam, Cambodia mull rice venture to steady prices
VietNamNet Bridge – Vietnamese and Cambodian officials met this week to discuss setting up a state-owned joint rice mill project to control prices, a local association said.
An official from the Vietnam Food Association said Thursday that the Southern Food Corporation (Vinafood 2) and the Bank for Investment and Development of Vietnam would be the Vietnamese partners, representing a 60 percent stake in the Cambodia-based joint venture.
The first rice venture between the two countries would combine the rice processing experience of the Vietnamese partners with Cambodia’s rice production sector, which has been largely untapped for exports, said the official.
Vietnam is the world’s second biggest rice exporter, having shipped nearly US$1.7 billion worth of rice in the first seven months this year.
Cambodian rice yields have been increasing and its government has encouraged businesses to process for export, according to the association.
About 1 million tons of Cambodian rice was ready for export, said the association. The competition, as well as a high summer-fall yield in Vietnam, was pushing prices down, according to local officials.
The new venture is expected to help prevent prices from falling, the association said.
The association aims to prevent price drops by asking members to buy 400,000 tons of the grain from farmers in order to increase its rice stockpiles.
Regional association
A Thai official said Saturday that five Southeast Asian nations may set up a rice-trade association next year to cooperate in stabilizing rice prices.
Thailand, Vietnam, Cambodia, Laos and Myanmar will also cooperate on other issues related to food security and production, said Chiya Yimvilai, a spokesman at a meeting of ASEAN economic ministers in Bangkok. The countries would also work together on developing rice products, he said.
“It won’t be like OPEC,” said Chiya, speaking at a press briefing. “Our objective is to help prevent prices from falling too much, but we won’t jointly set the prices.”
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Sunday, August 16, 2009
Myanmar deports American citizen out of relations with U.S.: official
YANGON, The Myanmar government said on Sunday night that its decision to deport imprisoned American citizen John William Yettaw is out of attachment of importance to bilateral relations with the United States, according to the state-run Myanmar Radio and Television.
At the request of Democratic Senator of the U.S. Jim Webb, who is Chairman of the East Asian and Pacific Affairs Subcommittee of the US Senate Foreign Relations Committee, and the U.S. Embassy in Myanmar, Yettaw's seven years' rigorous imprisonment, sentenced by a Myanmar district court on Aug. 11, was commuted half and the remainder half was suspended by deportation, the report quoted a government order as saying.
The 54-year-old epilepsy-suffering Yettaw was convicted by the court on charge of entering into Aung San Suu Kyi's restricted lake-side residence for three days in early May.
The government's decision was made also on grounds of sympathy with his health and his future, the report said, adding that Yettaw left the country along with Webb on conclusion of the latter's three-day visit to Myanmar Sunday afternoon.
Webb told the press before his departure from Yangon that he hopes that the U.S.-Myanmar relation would improve, thanking the Myanmar government for freeing Yettaw.
Webb also said the U.S. Administration is reassessing its policy towards Myanmar and he would make proposals for the move after he is back to the country.
Webb arrived in Myanmar on Friday on a three-day visit as part of his two-week tour to five Southeast Asian nations at the invitation of Myanmar Foreign Minister U Nyan Win.
During his visit in Nay Pyi Taw, Webb met with Myanmar top leader Senior-General Than Shwe, Chairman of the State Peace and Development Council, Prime Minister General Thein Sein and the State Constitution Drafting Commission, led by Chief Justice U Aung Toe, on the government side.
Webb also met with leadership of 10 legal political parties including the National League for Democracy (NLD) and National Unity Party (NUP) and that of some ethnic peace groups from Kachin, Shan and Kayah special regions as well as representatives of some social organizations.
He was allowed by the government to meet with NLD leader Aung San Suu Kyi, who is under suspended 18 months' sentence of confinement to her residence in connection with Yattaw's case, becoming the first foreign official to meet with Suu Kyi after her sentence.
Webb's Myanmar visit also represents the first ever one to the country of a member of the U.S. Congress in over a decade.
Webb's five-nation trip had taken him to Laos and he is proceeding to Thailand, Vietnam and Cambodia after Myanmar visit.
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Asean to get $25bn loan from China
ANOTHER $10BN TO BE OFFERED IN THE FORM OF A FUND FOR EMERGENCY USE
Writer: PHUSADEE ARUNMAS
Newspaper section: NewsChina yesterday agreed to provide a US$15 billion (510 billion baht) loan to help Southeast Asian countries with infrastructure development and another $10 billion in the form of an emergency investment fund to help the region cope with future economic crises.
Beijing made the pledges in a meeting between Asean commerce ministers and their Chinese counterpart Chen Deming.
The loan will be used to improve transport and telecommunications infrastructures in the region, said Commerce Minister Porntiva Nakasai, who chaired the meeting.
Railway connections between Kunming in southern China to Vietnam, Laos, Thailand, Malaysia and Singapore will benefit from the injection of cash, which will also be used to boost trade, investment and tourism between Asean and China.
The Asean Secretariat will prioritise the infrastructure projects that will benefit from this loan.
Details would be hammered out at the Asean summit in October.
As for the $10 billion emergency fund, China hoped that it will help Asean solve its future economic problems.
Asean and China also signed the Asean-China Investment Agreement yesterday, which the two sides have been negotiating since 2003.
The agreement will expand trade and investment and will come into effect on Jan 1.
Mr Chen called the agreement a "milestone" in fostering trade and investment ties between China and Southeast Asia.
Ms Porntiva said she hoped the accord will also benefit trade and investment between Thailand and China.
China is the eighth largest investor in Asean with a total investment of $60 billion. Last year, investment from China rose 125% from 2007.
In a related development, Asean ministers and their counterparts from China, Japan, South Korea, Australia, New Zealand and India supported efforts to turn their countries into a free trade area.
According to a study by an expert group, the free trade area of 16 countries would boost GDP by 1.3%.
Thailand's economic growth would rise 4.8% and the Asean economy would grow 3.8% once the 16 countries have been turned into one free trade zone, the study said.
Also yesterday, Asean and South Korea agreed to set up a special fund to support cooperation schemes including projects aimed at reducing the economic gap in Southeast Asia. South Korea contributed $1.5 billion to the fund.
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China signs investment agreement with ASEAN
BANGKOK - China and the Association of South East Asian Nations (ASEAN) Saturday signed an investment pact that provides guarantees against nationalisation, riots and disputes and is expected to boost investment.
“The ASEAN-China Investment Agreement is expected to boost bilateral investments by 40 to 60 percent over the next two years,” Thai Commerce Minister Porntiva Nakasai said after inking the pact with Chinese Commerce Minister Chen De-ming.
China is currently ranked the eighth-largest investor in South East Asia with $5.6 billion in cumulative investments in the region as of 2008.
Investments in China from the 10 members of ASEAN amounted to $6.1 billion as of last year.
The investment agreement provides Chinese and ASEAN investors guarantees not necessarily proffered to other countries.
“For instance, the agreement will guarantee compensation for investors in the case of nationalisation or riots,” said Krisda Piampongsant, spokesman for the commerce ministry of Thailand, which now holds the rotating chairmanship of ASEAN.
The association agreed to set up a dispute-settlement body soon to resolve legal problems that might arise between investors and the respective states, Krisda said.
ASEAN has already signed a partial free trade agreement with China, which covers trade in goods. The investment pact, which took six years to finalise, was seen as the second step toward a full free trade pact with China with the third being an agreement in services.
“Services is a tougher nut to crack,” Krisda noted.
China was the fourth-largest export market for ASEAN between January to September 2008 when the region’s exports to China amounted to $85.6 billion. China’s exports to ASEAN during the same period was $107 billion.
The ASEAN-China investment agreement was signed at a meeting of ASEAN’s economic ministers in Bangkok. On Thursday, the regional bloc signed a partial trade agreement with India, which was expected to boost bilateral trade to $60 billion by 2016 from $47 billion last year.
ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
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Saturday, August 15, 2009
Cambodia sends soldiers to join multinational training exercise in Mongolia
PHNOM PENH, The w government has sent 51 soldiers from Royal Cambodian Armed Forces (RCAF) to participate in the UN's peacekeeping training operation exercise in Mongolia entitled, "Khan Quest 2009", a Cambodian military source said on Saturday.
"The peacekeeping exercise is so important for our armed forces to join with other countries to keep the peaceful stability, security and order in the world," said Taing Sambun, Cambodia's director of Institute for Training Peacekeeping Forces, Mine and UXO clearance. The process of exercise will be lasted for three weeks.
"The Cambodian delegation was led by Gen. Meas Sophea, deputy commander-in-chief of RCAF and infantry commander," he said, adding "we have support from UN for joining this exercise," he noted.
It is a good cooperation between our country and other countries to share experiences and learned experience from each other about the strategies in peacekeeping in a country, he said.
"These forces will be used for reconciliation in a war-torn country, or a country which used to have internal conflict and a post-war country when the war ended," he added.
"The main role of the peacekeeping forces is to join to seek peace, stability and safety for people in the war-torn country," he stressed, adding "this exercise is not the military exercises but for peacekeeping for the UN's peacekeeping forces. It is a second time for Cambodia to participate multinational exercise in Mongolia and we become an active member," he said.
In a farewell ceremony on Friday, Moeung Samphan, secretary of state for national defense called the soldiers "to focus on training and learning from other partner's experiences and to prepare for joining other peacekeeping mission in other places in the future."
Khan Quest is a multinational training exercise with the goal of improving peace support operations. The exercise is hosted by the Mongolian Armed Forces and sponsored by the U.S. Pacific Command.
As part of the exercise, troops will conduct field exercises, humanitarian civic assistance training, medical readiness training and will take part in a peacekeeping operations seminar.
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A treasure of Buddha
Buddhist Monk Moeng Sang looked over the Relic presentation temple early Friday morning, at the Watt Munisotaram in Hampton that is taking place this weekend to celebrate the arrival of relics of Buddha that will be enshrined there. Monks from Sri Lanka have delivered the relics, and this weekend's "flower festival" at the temple also includes a groundbreaking for a new building on the property in rural Dakota County.
By KATIE HUMPHREY, Star Tribune
After a trip to India in February, Cambodian Buddhist monk Sang Moeng returned to Watt Munisotaram, his home temple near Hampton, Minn., practically bubbling over with excitement.
The Maha Bodhi Society of India, a group that oversees many Buddhist shrines, including the Tree of Enlightenment, offered to help find a relic of Buddha -- remains believed to be perfect proof of enlightenment, and symbols of wisdom, love and compassion -- for the rural Dakota County temple.
This weekend, Watt Munisotaram hosts a festival to celebrate the arrival of the relic from another temple in Colombo, Sri Lanka.
"We were fortunate to find a temple willing to share a relic with us," Yanat Chhith, a leader of Minnesota's Cambodian Buddhist community, said. "It's a very small piece, but that's good enough."
As many as 2,000 people from around the country and world, including monks from as far away as Sri Lanka and Bangladesh, are expected to participate in ceremonies this weekend as the relic of Buddha is enshrined in the temple, located among nondescript farm fields a few miles east of Farmington.
They will also be celebrating the 21st anniversary of the Minnesota Cambodian Buddhist Society, the groundbreaking for a building called a stupa that will eventually house the relic, and a flower festival to raise funds for construction. The celebrations runs through Sunday and the general public, Buddhist and otherwise, is invited to participate.
"Our world is so divided, but here we're all working together," Chanda Sour, a temple board member, said.
Trying to convey the spiritual significance of the relic, Sour and the others said words failed them. "A lot of this is too deep for words," Sour said.
Just preparing for the festival has drawn dozens of volunteers to clean, cut grass, prepare food and decorate the temple. There are between 7,000 and 8,000 Cambodian Buddhist in Minnesota.
Peace and stress
Moeng, the abbot at the temple and monastery, watched cheerfully over the preparations last week.
When he speaks of the relic, the way it was offered to him amid music and ceremony in Sri Lanka, and the trip he and five others made to bring it to the rural Minnesota temple, he radiates enthusiasm.
He explains that it is a rare opportunity -- he knows of only one other Cambodian Buddhist temple in the United States, in Maryland, that has such a relic. The experience was exciting, staggering, an honor, and full of great joy, he said through an interpreter.
It also had its stressful moments.
While transporting the relic on one bumpy return flight, he spent much of the time meditating to calm his nerves.
A group of about 20 people greeted him and the other travelers -- a temple board member and four lay people -- at the Minneapolis-St. Paul International Airport, and others joined in a procession when Moeng stepped out of the bus at the end of the temple driveway on County Road 50.
"You can feel the energy," Sour said of the build-up to the festival. "Once it arrived here, everybody got a second wind."
Going forward, that energy will be focused on building the stupa. The building will likely take years to build, but when it is completed it will house the relic of Buddha on its third and uppermost level.
The $1.5 million stupa will have a square base measuring 60 feet on each side and taper to a point more than 100 feet in the air. Like the ornate temple, it will be decorated from the top down with carvings and moldings by Socchea Yav, a Cambodian artist whose work covers the buildings at Watt Munisotaram.
Chhith said the first floor of the stupa, located just to the west of the main temple, will be used as a place for memorial ceremonies and peaceful reflection.
"We build this as a memorial to remind us of the achievement of humanity," Chhith said.
Katie Humphrey • 952-882-9056
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5 Asean countries get their act together
By ACHARA PONGVUTITHAM,
PETCHANET PRATRUANGKRAI
THE NATION ON SUNDAY
Thailand, Vietnam, Laos, Cambodia, Burma seek system
Major Asean rice-producers Thailand, Vietnam, Laos, Cambodia and Burma plan to form an association to create a sustainable system for trading and production.
The plan was unveiled yesterday following Cambodian leader Hun Sen's initiative at the Asean Summit in Cha-am in late February. It focuses on price stabilisation, food security in the region and rice development. It aims for price stability next year.
It comprises the five countries of the Ayeyawady-Chao Praya-Mekong Economic Cooperation Strategy (Acmecs) and will set up an Acmecs Rice Traders Association.
Thailand, Laos and Cambodia have agreed in principle and plan talks with Cambodia and Burma during the Asean Economic Ministers Meeting, which ends today.
For some years Thailand and Vietnam have cooperated to curb price-cutting in the export market through data exchange.
A Thai source close to the negotiations said they solved Thailand's major problem on circumvention by neighbouring countries, diluted price-cutting in the region and stabilised prices.
"It will create a supply chain in the region which will strengthen bargaining power in the world market," the source said.
Chaiya Yimvilai, adviser to the commerce minister, said yesterday that Laos proposed Thailand and Vietnam draw up the plan.
Thailand and Vietnam are white-rice producers while Laos focuses on sticky rice.
Laos has approached Thailand as a partner in a joint venture with Kuwait to grow rice in Laos.
The Lao government has allocated 200,000 hectares.
Laos has 2 million hectares set aside for rice, but only 900,000 are actually under the crop.
Meanwhile, the Asean-Australia and New Zealand Free Trade Agreement comes into force on January 1.
Australia and New Zealand are important trade partners of Asean, with bilateral trade in 2008 valued at US$67.2 billion (Bt2.3 trillion). They were the seventh largest export market of Asean.
Asean exports to Australia and New Zealand reached nearly $44 billion last year. Major goods were fuel, machinery, automobiles, gold and electrical appliances.
Chaiya added that Thailand and Australia would increase trade in services under the Thailand-Australia Free Trade Agreement. Australia wants to see more business-to-business trade.
Australian Trade Minister Simon Crean said the Asean-Australia and New Zealand Closer Economic Relations (CER) pact would benefit trade and investment growth during the global economic downturn.
"The pact will not only open market access between the two regions but also capacity-building and integration among us," he said, and though technical details remained to be worked out, it should be implemented on schedule early next year.
Crean also strongly supported Asean's bilateral pacts with six trading partners forming the Asean+6 group.
Asean and its partners must create a framework for East Asian integration, he said.
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Palm Beach County health care workers travel to help heal in some of the world's poorest parts
By DIANNA SMITH
Palm Beach Post Staff Writer
Saturday, August 15, 2009
WEST PALM BEACH — This West Palm Beach nurse can't help everyone.
But she's determined to try. That's why she treks to Cambodia every summer and sees children and adults whose bellies are empty and whose faces are thin. They're dying of malnutrition, dehydration, diseases that they probably wouldn't die from here in the United States.
Regina Clark, a nurse manager at Columbia Hospital, is one of many hospital staff members who spend their summer vacations not relaxing by the beach, but working in remote countries. They've dedicated their lives to helping the sick in America, and now they're taking their mission overseas.
"There were some that we know won't live long enough to get the help, and that's what breaks your heart," Clark, 53, said of the people in Cambodia.
That's how it is across the globe, in poor villages where doctors are scarce and modern medicines don't exist. So Clark and many other local nurses and doctors have committed themselves to helping each year.
Mission through music
Clark and 31 others traveled to Cambodia in July with a group called Musicianaries International - a nonprofit ministry dedicated to spreading God's love through music.
The group - which included doctors, nurses and professional musicians - delivered more than 500,000 containers of medicine, 700 school uniforms, 2,700 toothbrushes and toothpaste, 295 mosquito nets and 330 tons of rice.
They traveled the country in vans and spent time by the borders along Thailand and Vietnam. Their goal? To see people who have never been to hospitals.
"They're such a starving population. The average age is about 22," said Clark, who was on her third summer trek as a volunteer. "There's such a need for medical care."
Common medical problems include malnutrition, skin rashes, eye conditions and dehydration. Yet they still manage to smile.
"The people ... they warm your hearts," she said.
"You don't have to be fluent in the language to know they welcome anything. It's a great feeling."
Educating the islanders
While Clark headed for Cambodia, Dr. Michael Wolford traveled to the island of Tanna off the east coast of Australia. He was in the South Pacific with a group called Healthcare Ministries, a worldwide medical outreach program of Assemblies of God World Missions.
Wolford, 44, is an emergency room physician at Columbia Hospital and Palm Beach Gardens Medical Center.
In Tanna, he found many children suffering from malnutrition and ringworm or tapeworm.
He talked to the people through a translator about healthy living, encouraging them to take better care of themselves.
For almost three weeks, Wolford treated many men for high blood pressure and others for skin problems.
Because the island is primarily jungle, most who live there use machetes.
"It was unbelievable to see 5- and 6-year-olds swinging around machetes," he said.
Wolford said he enjoys showing people that there are others in this world who care about them.
"I've been blessed with talents I can share with people," he said, "and there's a world of people who need help."
Helping in Haiti
When his cousin died 10 years ago of liver cancer, Dr. Serge Thys wanted to keep his memory alive.
So he and others created the Gaskov Clerge Foundation, named after his cousin, with goals that include helping the sick in Les Cayes, Haiti, where Clerge and Thys were born.
Thys, 56, is the chairman of the psychiatric department at Columbia Hospital and also medical director of youth services.
This month, he returned from a trip to the southern part of Haiti where people have no access to any form of health care.
He and more than 60 of his colleagues built makeshift clinics in churches and schools and saw almost 3,000 people.
Like Clark and Wolford, Thys vows to continue his travel each year.
"It's priceless," Thys said. "You end up receiving much more than you give. This is the most beautiful part."
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Friday, August 14, 2009
Cambodian farmers demand stop to land grabs, evictions
By Robert Carmichael
Phnom Penh - 'The land is our rice pot,' a rural villager told a packed hall in the Cambodian capital.
The speaker, Leng Simy, arrived in Phnom Penh this week from a village in western Cambodia, one of 300 villagers representing 15,000 people from across the kingdom who came in a coordinated move to get the government and international donors to listen to their concerns about evictions and land grabs.
The numbers are significant. Organizers said 700,000 hectares of mainly communal land are at risk for this group of petitioners alone. Amnesty International last year estimated that 150,000 people across Cambodia were at risk of being forcibly evicted in land grabs generally perpetrated by the politically powerful, the military and companies awarded land concessions
One purpose of the trip to Phnom Penh was to deliver thumb-printed petitions protesting the land grabs to government ministries, the prime minister, parliament and the national land dispute authority. Another purpose was to be heard, which for people in Cambodia's rural areas is difficult.
Leng Simy told the meeting and media Wednesday that her village had lost its communal land to a company growing cassava and palm oil.
Her experience was a common one, and one shared by Chann Na from Kampot province in southern Cambodia. Clutching the microphone, she told the audience how a company took land that villagers used for grazing cattle. She said she hopes the national government would resolve the problem, but she said she also knows the petition might make no difference.
'If there is no solution, then the representatives from all the provinces and cities will come again to Phnom Penh until at last we have a solution,' Chann Na told the audience. 'And we will not come in ones and twos - we will all come together. I hope that will generate a solution.'
Her comments generated an enthusiastic round of applause from a worried and frustrated audience of villagers. The reason for their concern is easy to understand: More than 80 per cent of Cambodia's 15 million people live in rural areas. To lose your land is to lose your livelihood, and there is no social safety net.
The story of Cambodia's land is not straightforward. Under the catastrophic 1975-1979 Khmer Rouge regime, private property was abolished and land records destroyed. To this day, more than 90 per cent of the nation's land parcels do not yet have legal title, which makes it easy for the unscrupulous to take them.
And as stability returned in recent years after decades of strife, land prices rocketed. The result is that evictions and land grabs have also soared.
One local human rights group recorded 335 land dispute cases last year alone. And remedies are hard to come by: The courts typically favour those with power, which limits the options for ordinary people, and the military and police are regularly used to put down any dissent.
Loun Sovath, a monk from the western province of Siem Reap, told how villagers in his area had 100 hectares stolen by 'rich and powerful people' earlier this year. During a protest at the disputed site, several villagers were shot and wounded by authorities. Others were arrested 'just as the Khmer Rouge did,' he said, and 11 are now in jail.
'Previously, people would file a complaint with the local and provincial authorities, but they didn't get resolved until they came to Phnom Penh,' Loun Sovath told the hall. '[The government's] solution now is that they arrest more people. I am asking that the government please consider the land issue. This is not a game.'
It is not only the country's majority Khmers who are losing land to a scourge that runs the length and breadth of the kingdom. Soal Nak is from the Jarai tribe, an ethnic minority in the north-eastern province of Ratanakkiri, where land, forests and religion are wrapped together in tribal culture and livelihoods.
'Our people remain worried about losing our land and our forests and our traditional way of life,' he said. 'If we lose our forests or our land, then our traditional ways go, too, and more than that, we will lose our togetherness as a tribal community.'
It was too early to say whether the petitioners' concerns would be addressed, but early signs were not encouraging. The government was caught off-guard by the collaborative effort and was trying to find out whether civil society groups were involved - a classic case of shooting the messenger, said a long-term member of one of these groups.
At least one villager has decided not to return home. Ngou Leang is a representative from a village in the western province of Banteay Meanchey whose commune chief colluded to grab land used by 280 families.
She spoke by phone Wednesday to fellow villagers who had stayed behind. They told her the authorities had come to the village and threatened to arrest everyone for protesting about land issues.
'So for now,' she said, 'I cannot go back home.'
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US Lawmaker in Military-Ruled Burma for Talks
U.S. Senator Jim Webb is in Burma, where he is expected to hold talks with the country's ruling military leader, the first such meeting between a high-ranking U.S. official and General Than Shwe.
The visit comes just days after the United States and other Western nations condemned the military government's order to extend the house arrest of opposition leader Aung San Suu Kyi.
Senator Webb - a Democrat from the southern state of Virginia - arrived Friday in Burma's administrative capital of Naypyidaw after a flight from Laos, the first leg of his five-nation tour of Asia. Burmese state television reported Webb met with Prime Minister Thein Sein, but did not give details.
The U.S. lawmaker is scheduled to meet with Than Shwe Saturday. Both the White House and State Department said Friday Webb was not carrying any specific message from the Obama administration.
A few members of Aung San Suu Kyi's National League for Democracy have been asked to travel to Naypyidaw while Webb is there, but it is not clear if they are to meet with the senator. It is also not known if Webb will be able to see Aung San Suu Kyi in Rangoon.
Aung San Suu Kyi was convicted Tuesday of violating her house arrest, after an American man, John Yettaw, swam uninvited to her lakeside home. The pro-democracy leader was ordered to remain under house arrest for another 18 months. Yettaw was also convicted and sentenced to seven years of hard labor and imprisonment.
Aung San Suu Kyi has spent 14 of the past 20 years in some form of detention.
Senator Webb is traveling through the region as chairman of the Senate Foreign Relations Subcommittee on East Asian and Pacific Affairs.
The Vietnam War veteran and former secretary of the Navy will also visit Thailand, Vietnam and Cambodia during his Asian tour.
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Hong Kong movie star to visit Cambodia
PHNOM PENH, A famous Hong Kong movie star, Jackie Chan, will visit Cambodia and give a lecture in the university here later this year, the official news agency AKP reported on Friday.
If the schedule will not be changed, Chan will arrive in Cambodia on November 10 and will stay here for three days, according to AKP.
While he is in Cambodia, Chan will give lecture to students at the University of Cambodia the experiences and humanity work that he has achieved and engaged with, and after that he will be awarded with an honorable doctoral degree in humanity, Kao Kim Hourn, president of the University of Cambodia, said earlier.
Meanwhile, Chan will also receive an education award from the University of Cambodia for his humanity's work and activities, Kao added.
According to the plan, Chan will also pay courtesy calls on Cambodia's King Norodom Sihamoni, and meet with Prime Minister Hun Sen.
Jackie Chan made his first visit to Cambodia in 2004 under the sponsors of the United Nations Children's Fund and the United Nations AIDS Program.
Chan is a keen philanthropist and UNICEF/UNAIDS Goodwill Ambassador who has worked tirelessly to champion charitable works and causes.
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Africa, Indonesia, Cambodia -- land rent is fought over
Competing needs -- some need Earth for food, others for money -- plays out constantly around the world. That is, until we recognize the worth of Earth is for us all to share. Such sharing we can implement via geonomics, a sane shift of taxes toward natural resources and subsidies to everybody. We trim, blend, and append three 2009 articles from: (1) the Jakarta Post, Aug 9, on Sulawesi by A. Hajramurni; (2) BBC, Aug 12, on Cambodia by R. Walker; and (3) BBC, Aug 5, on Africa by K. Hunt.
Villagers clash with police in South Sulawesi
Villagers clashed Sunday with local police at a sugarcane plantation field in Takalar regency, South Sulawesi, which belongs to the State Plantation Company (PTPN) XIV, wounding 10 people.
Six of the injured people were civilians and the rest were police officers.
The brawl began when villagers banned PTPN XIV workers from the plantation field in Timbuseng village, North Polongbangkeng district. Villagers claimed they owned the land. Police came to break up the two parties.
Then someone threw a stone to the villagers, who responded by throwing more stones to the police. Police then hunted the villagers who ran to residential areas.
The villagers re-grouped, returned to the plantation field, and fought against the police.
The land rent agreement ended two years ago. PTPN XIV spokesman Bahrun said his firm had a land usage permit, due on 2024 from the Takalar regency administration. “So if anyone claims that they own the land, they should take legal action.”
JJS: Their legal action should downplay ownership and emphasize sharing the rent. When rent is shared broadly, one has less motive to try to monopolize the land.
Cambodia: A land up for sale?
In north eastern Cambodia for the past five years, the Jarai people of Kong Yu village have been fighting for, and losing, their land.
Local officials said they wanted to give part of the land to disabled soldiers. They said if you don't give us the land, we'll take it. So farmers agreed to give them 50 hectares.
The villagers were invited to a party and when many of them were drunk they were asked to put their thumbprints on documents. "Most of us don't know how to read or write, and the chiefs did not explain what the thumbprints were for," said Mr Fil. The villagers later found they had signed away more than 400 hectares -- and the land was not for disabled soldiers, but a private company who began making way for a rubber plantation.
Businesswoman Keat Kolney insists she bought the land legally. She is married to a senior official in the ministry of land management. It is not the only case where those closely connected to senior government figures have taken land from poor Cambodians.
Chamran, a farmer in the area, said “we organized a demonstration. The military police pointed a gun in my stomach and said if you hold another demonstration we will kill you."
Beginning in the 1990s, large swathes of the country's rich forests were bought up by logging companies. Now mining and gas concessions are being granted to insiders. Global Witness says members of the government, right up to the highest levels, are using Cambodia and its assets as their own personal slush fund.
Cambodia's recent stability, following decades of violence, has attracted a rapid boom in tourism and a race for prime real estate on which to build new resorts. Many of the country's beaches have already been bought up.
Rights groups estimate that 30,000 people have been forcibly evicted from their homes in the capital Phnom Penh over the past five years to make way for new developments. The UN estimates hundreds of thousands of Cambodians are now affected by land disputes.
JJS: If landowner, government, and military act in concert, aren’t they really one body, as they’ve always been, since hunting and gathering ended?
Africa investment sparks land grab fear
African land has rarely been associated with financial reward. But population increase, changes in eating habits, and demand for bio-fuels are putting sub-Saharan farmland at a premium worldwide while its prices are the lowest in the world.
Countries short of arable land, such as China, Saudi Arabia, South Korea and Kuwait, have been seeking agricultural investments in Africa.
South Korean firm Daewoo Logistics was forced to abandon a project to lease one million acres of land in Madagascar to produce corn earlier this year. The country's new president scrapped the deal following criticism that local people had not been consulted, and Daewoo was unsettled by unrest on the island.
LAND PRICES PER HECTARE
Sub-Saharan Africa - $800 to $1000
Argentina/Brazil - $5,000 - $,6000
Poland - $6000
US - $7000
UK - $18,000
Germany - $22,000
"We only operate in counties where we can have clear land title. If we can't get this, or we don't have a 99-year lease from the government, then we won't operate in that country," investor Ms. Payne says.
Investors say their ownership leads to better harvests and creates jobs paying above-average wages.
For now, the vast majority of the food stays in the country in which it is produced although it can be exported.
Since the state often owns the land and favors the investor, they’re prone to push out the poor.
As Africa's land becomes more sought after by international investors, the risk only grows that a continent that has often extended a begging bowl to the world could instead feed its richer neighbors.
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Thursday, August 13, 2009
Cambodia joins microloan clean-up
By Stephen Kurczy
PHNOM PENH - Impoverished Cambodia has emerged as a global microfinance leader, becoming the first Asian nation to hold lenders accountable to their original mission of poverty reduction. If a new global initiative aimed at promoting greater transparency over microfinance institutions (MFIs) recently launched here gains traction, the multi-billion dollar industry could be set for a shake-out.
It has long been assumed that microfinance ventures, launched in the 1970s as non-profit enterprises to bring cheap credit to the poor, prioritize alleviating poverty over maximizing profits. In recent years, celebrities such Robert Duvall, Natalie Portman and Yeardley Smith, (the voice of Lisa in animated television series The Simpsons), became official spokespeople for different MFIs such as Pro Mujer (Pro Women), Finca International, and the Grameen Foundation.
The United Nations Capital Development Fund has in recent years channeled millions of dollars in donor funds into MFIs. The International Finance Corporation (IFC), the private lending arm of the World Bank, says it has given more than US$600 million to more than 100 MFIs worldwide and maintains a commitment to double that investment to $1.2 billion by 2010, making IFC the largest investor in an industry servicing more than 80 million people around the world.
But so-called barefoot banking has come under growing criticism as MFIs reap huge profits. Reports have shown that many misrepresent their underlying loan fees, with some charging annual interest rates in excess of 100%. For instance, Mexico's Banco Compartamos, originally a non-profit institution, generated $458 million in an April 2008 initial public offering. Private investors piled into the offering because the bank charges its 1.4 million poor borrowers up to 128% annual interest.
Chuck Waterfield, a microfinance expert and Columbia University professor, has found that many MFIs, including Compartamos, advertise as pro-poor enterprises with 4% monthly interest rates but when additional hidden fees were added those rates often topped 10% per month.
Waterfield recently devised a platform for borrowers and international donors - who underwrite and provide cheap capital for many microcredit banks to on-lend - to view more clearly individual MFIs' true underlying interest rates. "Compartamos was a watershed for the industry. It takes a crisis to make you do what you should have done 10 years ago," Waterfield told Asia Times Online.
In mid-2008, he launched MicroFinance Transparency, a database of interest rates charged by individual microlenders that aims through publicity to refocus microfinance on poverty alleviation. The goal, he says, is to collect loan information from all microcredit lenders worldwide and publish their real annual percentage rates at his website, mftransparency.org.
"The organizations with the highest interest rates have the glossiest annual reports, with pictures of mothers with babies, and they talk about how they're helping those mothers while making boatloads of profits," Waterfield said on August 7 at a launch event in Phnom Penh. "So we put the prices up there and say, 'Nice annual report but you're charging twice the interest rate as anyone else to those mothers with babies'."
Waterfield hopes that all MFIs will openly join the initiative and prove they have nothing to hide. He first introduced the project in March in Peru, then in Bosnia in April, and this month in Cambodia before heading to another launch in Bangladesh. He acknowledges that he can't force microcredit lenders, many of whom bury hidden costs in the small print of their loan forms, to sign up to the initiative.
"We've got to build credibility and Cambodia helps us build credibility because it's a willing participant. The next country we go to will be a little less willing. And next year we'll go into the countries that are really reluctant to have us show up."
People over profits
While Cambodia is renowned for its endemic corruption and is often rated among the world's least transparent countries, Waterfield said he chose the country as the first Asian nation for his initiative because its registered MFIs rank among the world's top in terms of social performance, consumer protection and ethical practices.
Of the 12 Asian MFIs that have signed on to a social performance indicators program launched by the Washington DC-based Microfinance Information Exchange (MIX), a provider of MFI business information and data services, half hailed from Cambodia.
Five Cambodian banks are also included in MIX's ranking of the world's top 100 MFIs; only India, with six, claims more. In June, Angkor Microfinance Kampuchea was one of three MFIs worldwide to receive the first gold award for social performance reporting from the Michael & Susan Dell Foundation, the Ford Foundation, and Consultative Group to Assist the Poor.
"Cambodian MFIs have been at the forefront of industry reporting for many years," MIX's chief operating officer Blaine Stephens wrote in an e-mail in response to Asia Times Online questions. "My guess is that they will demonstrate as much commitment to reporting social performance as they have to reporting financial performance in an open and transparent manner."
Cambodian MFIs charge interest based on 30- or 31-day months. This may sound intuitive, but in Mexico and other developing countries most MFIs charge interest rates based on a four-week month, which effectively allows them to charge the borrower for an extra month every calendar year, Waterfield said.
The annual interest rates charged by MFIs in Cambodia are among the lowest worldwide at between 24% and 36%. While higher than normal rates on commercial consumer loans
, microloans are inherently more expensive because the lender receives less return while incurring overheads and transaction costs similar to those for larger loans.
"Here in Cambodia, we are committed to making sure that the financial services provided to the poor come as tools for their empowerment rather than shackles for their exploitation," Cambodian National Bank director general Tal Nay Im said on August 7. The National Bank has recently issued a legally binding sub-decree for MFIs to advertise their real effective interest rates.
Cambodia is the only country to outlaw flat interest rate loans, a credit structure where monthly interest is paid on the total loan amount even as the borrower pays down the principal - which means the borrower is effectively paying interest on money already paid back. In comparison, every MFI in Mexico charges a flat rate and only one microcredit bank in impoverished Bangladesh, the Grameen Bank, charges borrowers a declining rate where they pay less and less interest as the outstanding amount owed is paid down.
The Grameen Bank was founded in the 1970s by Muhammad Yunus, who was awarded the Nobel Peace Prize in 2006 and the US Presidential Medal for Freedom this week for his efforts to provide low interest loans to the poor. While many microcredit institutions claim to take inspiration from his example, Yunus has publicly lamented the industry trend towards profit maximization over uplift of the poor.
He, for one, has strongly endorsed Waterfield's new Microfinance Transparency initiative. "Microfinance emerged as a struggle against loan sharks, so we don't want to see new loan sharks created in the name of microcredit," Yunus told BusinessWeek at the time of the project's launch.
While Cambodia's 18 MFIs have agreed to submit their loan data to MicroFinance Transparency, the Bangladeshi government is drafting a law that will require all their MFIs to submit data to the initiative. In Bangladesh, banks do not at present advertise their true interest rates, Waterfield said, and there is the risk of a consumer backlash if published interest rates suddenly appear to double overnight.
Leaky lending
Not all MFIs are equally excited about Waterfield's transparency initiative, particularly those whose reputation would take a hit through greater disclosure. One of mftransparency.org's features will show, in graphical form, the relationship between loan size and interest rates charged. That presentation will show more clearly where MFIs' priorities lie.
Many MFIs had been so profitable that hedge funds, venture capital firms, and other big private equity investors have sought ways to enter the business. In Cambodia, private equity fund Leopard Capital announced in March that "we are currently evaluating several options to invest in the sector, including participating in any pre-IPO [initial public offering, or sale of shares to the public] capital raising by a leading MFI, acquiring an existing MFI or merging an existing MFI with a smaller commercial bank."
Despite Cambodia's lead on MFI transparency, the sector has been facing financial troubles wrought by the global economic crisis. The industry-wide at-risk portfolio for the nation's 1 million microloan borrowers rose from 0.5% in mid-2008 to 3.39% in mid-2009. That's exposed flaws in previous client screening.
Mai Yop, a 55-year-old salt farmer in southern Cambodia's Kampot province, admits to having lied to get a $1,000 loan three years ago from microfinance bank Acleda. While microloans are extended solely for business purposes, such as the provision of new cattle or farming tools, Mai Yop says she used the money to pay for her husband's stomach surgery.
"I had to lie, or I wouldn't get any money," said Mai Yop, who now lives on a budget of $5 a day. In order to pay back her first loan, she took loans from two other microlenders, and finally from a high-interest charging informal moneylender who eventually seized her farmland due to non-payment.
Some borrowers say they'd be in a better situation today if they'd never taken on a microloan. "We are poorer than ever," said Oum Siv, a 50-year-old grocery vendor in Kampot. Earlier this year, she said she owed $10,000 to a private moneylender after taking out a series of microcredit loans for her husband's construction business, which failed to get off the ground amid the economic slowdown.
Cambodia's MFIs say they have since adopted more rigorous screening processes for potential borrowers. But the toll from years of lax screening has only now become apparent. The situation is similar in several Cambodian provinces, with tens of thousands of Cambodians unable to repay their microloans and now at risk of losing their homes and farmland.
Despite these challenges, Waterfield said that Cambodia remains a relative microcredit success story. Elsewhere, when it comes to openness and transparency, "some of these [lenders] say, 'We've been lying for 20 years for some legitimate reasons, so it's not so easy to start telling the truth.' Here, it was like, 'sure, what do you need, we'll give it to you.' There was no resistance, no nervousness. We'll never see that again ... anywhere we go."
Stephen Kurczy is a journalist roaming across Asia. He may be reached at kurczy@gmail.com.
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A further 160 families in Cambodia face forced eviction
A further 160 families in Cambodia are to be forcibly evicted from their homes without being given adequate alternative housing or just compensation.
Two lakeside villages in the Cambodian capital Phnom Penh received an official notice on Monday, giving them seven days to dismantle their houses. A private company is due to redevelop the site for tourism and commercial use.
Around 4,200 families living on or around Boeung Kak Lake in central Phnom Penh are affected by this re-development, which is the outcome of an agreement reached in 2007 between the Municipality of Phnom Penh and the private company. The company started filling the lake with sand in August 2008, in preparation for building.
The agreement was made without any prior consultation with the affected families, who since learning about the deal have repeatedly protested and voiced concern about the plans. At least two villagers have been arrested for their peaceful protests.
Company workers and security forces have intimidated and harassed many others, while the rising water levels caused by the filling of the lake, have flooded and destroyed many homes around its shore, forcing people to move.
The inhabitants of Village 2 and Village 4 were offered three options by the notice signed by the Daun Penh district governor: compensation of 8,000 USD plus an additional two million riel (approx 500 USD) to cover the cost of dismantling the houses; a flat at a resettlement site some 20 kilometres away plus two million riel; or new housing on-site but with temporary relocation.
The resettlement site at Damnak Trayoeung has no adequate shelter, water, electricity, sanitation, sewerage, health care or job opportunities.
The offer of on-site development is welcome as it demonstrates that the authorities are exploring alternatives other than eviction. This is also the option favoured by most of the 160 families.
However, according to the notice, they still have to dismantle their homes within seven days and accept relocation to a site far away from their work places and schools for an undetermined period, with no formal assurances that they will be able to return to secure tenure at Boeung Kak.
Last month, security forces forcibly evicted 60 low-income families from their homes in an area of central Phnom Penh called Group 78. The families in Group 78 had been living under the threat of forced evictions for three years, with the Cambodian authorities following none of the safeguards required under international law.
The Cambodian Government has consistently failed to guarantee the right to adequate housing and to protect its population against forced evictions. In 2008 alone, Amnesty International received reports about 27 forced evictions, affecting an estimated 23,000 people.
Amnesty International is reiterating its calls on the government to end forced evictions and introduce a moratorium on all mass evictions until there is a legal framework in place which protects human rights.
Amnesty International has urged the Cambodian authorities to halt immediately any plans to forcibly evict the families living in Villages 2 and 4 in Boeung Kak.
The organization also urged them to reconsider the plan to move the community to the resettlement site at Damnak Trayoeung and called on the authorities to hold genuine consultations about the onsite development plans, including clarifying the time frame for temporary relocation and a guarantee of security of tenure at Boeung Kak.
Moreover, Amnesty International is demanding that the authorities uphold Cambodia's obligations under international human rights treaties prohibiting forced eviction and related human rights violations.
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Cambodian HIV Villages Draws Controversy
25 kilometers outside of Cambodia's capital Phnom Penh, lies a village built by the government for HIV-infected patients and their families.
Come to be known as the "AIDS colony", in the past two months the government has relocated 47 families to live in its metal and wooden sheds.
With inadequate sanitation and no running water, the area is not a health sanctuary for HIV-infected patients, who require personal attention and care.
The government maintains it is taking care of patients by building new homes and offering healthcare and ownership rights previously unavailable.
But HIV-infected people living in the village say they have not received any official recognition of ownership rights nor government compensation for their old homes.
40-year-old HIV patient Chheang Toma says even with free medical treatment, he has no real means of earning a living in the colony.
[Chheang Toma, HIV Patient]:
"I feel sluggish in my arms and on my legs everyday and I cannot walk well. I will hang on, until the day I need to go to sleep in the hospital. I wanted to go now, but I have no money to spend for food, although they give treatment free of charge."
With little prospect of work in the area due to the distance from the city, people say they must survive largely on donations from the government and NGOs.
[Suon Davy, HIV Patient]:
"I face great difficulty for my family day to day, because we live far away from the hospital, far from any job opportunities and it is very hot here."
Local human rights activist Dr. Kek Galabru says the government actions are discriminatory while the conditions could pose health risks to already vulnerable patients.
[Dr. Kek Galabru, President, Lacadho NGO]:
"It's regretful that city hall sent 40 families to Tuol Sambo village. This is a discriminatory act because by putting them together like this, everyone will know this is an AIDS community."
The "AIDS colony" is one of a number of forced evictions in Cambodia, where the government has faced escalating criticism about its mandatory relocations.
Many HIV-infected people living in Tuol Sambo previously resided in squatter areas in the Borei Keila area of the capital, forced out as the government took over the land to build high-rise buildings.
Last month, the World Bank urged Cambodia to halt the forced evictions from disputed land, saying it threatened the livelihoods of thousands of urban dwellers.
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Webb Visiting Government Officials in Laos
U.S. Sen. Jim Webb (D-VA) arrived Thursday in Vientiane, Laos to meet with a number of high-level government officials and industry leaders to advance U.S. interests in the region. His visit to Laos is part of a two-week, five-nation tour of Asia that also includes Burma, Thailand, Cambodia and Vietnam.
Webb, who has long experience in the region, serves as chairman of the East Asia and Pacific Affairs Subcommittee of the Senate Foreign Relations Committee.
“It is vitally important that the United States re-engage with Southeast Asia at all levels," says Webb. “Our relations with Laos have never been fully repaired since the end of the Vietnam War more than 30 years ago. I look forward to working with Lao officials in order to bring our two countries closer together economically, culturally, and diplomatically.”
Webb’s schedule in Laos includes meetings with representatives from the Ministry of Foreign Affairs and Ministry of National Defense as well as the Ministry of Industry and Commerce which is responsible for Laos' bid to join the WTO.
Webb will also meet with the Mekong River Commission and business leaders to look at investment opportunities for the United States in Laos and ways to expand cooperation between the two countries.
Webb has enjoyed a continuous personal involvement in Asian and Pacific affairs that long predates his time in the Senate. In addition to his more recent visits as a member of the Senate Foreign Relations Committee, Webb has worked and traveled throughout this vast region, from Micronesia to Burma, for nearly four decades, as a Marine Corps officer, a defense planner, a journalist, a novelist, a Department of Defense executive, and as a business consultant.
Webb served as an infantry Marine in Vietnam, and later as assistant secretary of defense and Secretary of the Navy in the Pentagon. He also served as an Asia-Pacific regional military planner in Guam, has written extensively on local, national and international issues in Japan, Thailand, Vietnam and the Philippines, and in the 1990s worked as a consultant for companies wishing to do business in Vietnam. He has served on the Senate Foreign Relations Committee since joining the U.S. Senate in January 2007.
As chairman of the East Asia and Pacific Affairs Subcommittee, Webb oversees U.S. relations with countries in East Asia, Southeast Asia, the Pacific Rim, and Oceana. The subcommittee also oversees regional organizations such as the Association of Southeast Asian Nations and the Asia-Pacific Economic Cooperation.
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India, Southeast Asian Nations Sign Free Trade Agreement
By Heda Bayron, Bangkok
India and the Association of Southeast Asian Nations have signed a free trade agreement after more than six years of negotiations.
Indian Commerce Minister Anand Sharma and his counterparts from the Association of Southeast Asian Nations sealed the agreement in Bangkok Thursday. They met on the sidelines of the annual ASEAN Economic Ministers Meeting.
The agreement creates one of Asia's biggest trading areas and integrates India's fast growing economy with 10 of its neighbors.
Trade between India and ASEAN amounts to $40 billion each year. Under the pact, India and ASEAN will eliminate tariffs on various goods by 2016.
"India has got the market of 1.1 billion in population and ASEAN of 550 million," said Krisda Piempongsant, the spokesman of Thailand's Commerce Ministry, host of the meeting. "The size of the two combined will be much, much bigger than China, Japan and South Korea put together."
India has been playing catch up as other large economies in the region - China, Japan and South Korea - have already entered into agreements with ASEAN. Australia and New Zealand also have trade pacts with the grouping.
With these agreements, ASEAN stands at the center of what could become an even bigger free trade area, involving all six trading partners and ASEAN.
"All six countries are in one way or another have an FTA with ASEAN. The ASEAN plus six is a possibility," said Piempongsant.
The agreement comes at a time when global trade liberalization talks under the World Trade Organization have stalled, largely because of disputes between developed and developing nations over state subsidies on agriculture and trade in manufactured goods.
ASEAN comprises of Thailand, Singapore, the Philippines, Indonesia, Malaysia, Burma, Laos, Brunei, Vietnam and Cambodia.
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