SPEECH

BY H.E. MR. HOR NAMHONG,

SENIOR MINISTER AND MINISTER OF FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION OF THE KINGDOM OF CAMBODIA

 

AT THE RECEPTION HOSTED BY MR. JOHN MCAULIFF, EXECUTIVE DIRECTOR OF THE FUND FOR RECONCILIATION AND DEVELOPMENT

NEW YORK, 17 SEPTEMBER 2002

 

 

Mr. Executive Director of FRD,

Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

 

  1. It is indeed a great honor for me to be here with all of you and to share my thoughts on the recent developments of my country.  At the outset, I wish to register my appreciation to the Fund for Reconciliation & Development (FRD), in particular to Mr. John McAuliff, FRD’s Executive Director, for inviting me to address this important gathering.  My special thanks also go to all sponsors of this important gathering.

 

  1. While peace, political stability and democratization are prevailing in Cambodia today, the Royal Government of Cambodia has the opportunity to focus its effort to aid the country’s economic development and poverty alleviation.  On 29 July 2002, the Royal Government of Cambodia launched the Second Socio-Economic Development Plan (SEDP-II) which lays a solid foundation for poverty reduction.  Moreover the Royal Government of Cambodia is preparing a Poverty Reduction Strategy Paper which will be finalized by October 2002 to provide the framework for a true action plan to reduce poverty.

 

  1. To address the needs of the poor population living in the rural areas, the government has mobilized resources and invested them in the key priority sectors.  The security and military expenditure was reduced from 3.03% of GDP in 2001 to 2.72% in 2002.  On the other hand, the 2002 budget for health was increased by 22%, education by 28%, agriculture by 13% and rural development by 45.7% compared to the year 2001.  According to the Public Investment Program (PIP) 2002-2004, the capital investment for 2002-2004 was US$ 1.750 million in which the allocation for Economic Sector was US$672 million or 38% of total capital investment and for Social Sector was US$ 1078 million or 62% of total capital investment.

 

  1. Besides making the economic growth to take a pro-poor development path to address the needs of the poor living in the rural areas, serious efforts have been made by the Royal Government in rural development by providing the people in rural areas more access to clean water, education, health and transport through drilling wells, and building schools health centers and rural roads.

 

  1. On the field of economic development, Cambodia has made more important progress on almost all fronts in the last few years, despite some challenges confronting the country.  In recent years, the Royal Government of Cambodia has been able to maintain macroeconomic stability in spite of the last two years of heavy floods which badly affected the country.  In 2000 and 2001 Cambodia’s Gross Domestic Product (GDP) grew respectively 7.7% and 6.3%.

 

  1. This year although suffering from severe drought and early floods, Cambodia is expected to achieve the forecasted rate of growth of 5 to 5.5%.  Furthermore, inflation rates of the last 3 subsequent years were close to zero and the exchange rate remains stable.

 

  1. With regard to export, Cambodia continued to maintain about the same level of export this year especially to those countries that granted Cambodia Most Favored Nation (MFN) status, such as the United States, the European Union and other countries.  The GSP and MFN are very important to Cambodia, especially in the garment industry where the country has been exporting what is worth over one billion dollars in 2001.

 

  1. While trying to accelerate its socio-economic development and poverty alleviation, the Royal Government of Cambodia is firmly committed to strengthening democracy and promoting decentralization to the grass roots level.  The Royal Government successfully organized the communal elections in February 2002 for all the 1621 communes.  The peaceful and orderly conduct of the communal elections was indeed a result brought about by the dedication of all Cambodian people who turned out more than 80% of the eligible population and overwhelmingly voted.  The results of the elections show a clear political maturity of Cambodian people.

 

  1. Apart from making efforts to promote democracy and strengthen the rule of law, the RGC has paid much attention to the respect of human rights.  In this sense, the Royal Government of Cambodia has approved to extend the mandate of the Office of United Nations High Commissioner of Human Rights (OHCHR) in Cambodia.  A National Committee on Human Rights in Cambodia – an important government body- has been created with a view to promoting the human rights in Cambodia and cooperating with OHCHR.  Moreover the people are enjoying freedom of expression and right to establish political parties, associations and civil societies.

 

  1. The Royal Government of Cambodia appreciates the contribution made by various national and foreign civil societies and NGOs which have actively taken part in the socio-economic development and poverty reduction in Cambodia.  Their suggestions have been included in many laws adopted by the Parliament.  I believe that the democratic process in Cambodia is moving forward irreversibly

 

Excellencies,

Ladies and Gentlemen,

 

  1. As far as the fight against terrorism is concerned, since the September 11 terrorist attacks, Cambodia has fully cooperated with the United States and the international community to combat this evil.  In addition, Cambodia has ratified four international conventions related to the fight against terrorism.  Cambodia is also in the process of acceding to seven other key international conventions, which are essential steps in combating terrorism.  More recently, Cambodia has signed the protocol to accede to the Agreement on Information Exchange and Establishment of Communication Procedures between Indonesia, Malaysia and the Philippines, aiming at combating terrorism and transnational crime, during the ASEAN Ministerial Meeting in July this year in Brunei.

 

  1. Now becoming chairman of the ASC, Cambodia will host several very important international meetings and conferences.  In the coming November this year Cambodia will host the summit of the Greater Mekong Sub-region (GMS), the 8th ASEAN Summite, ASEAN+3 and ASEAN+1 Summits as well as ASEAN +India Summit.  In June 2003 Cambodia will also host the ASEAN and ASEAN Ministerial Meetings (AMM), the ASEAN Regional Forum (ARF), the Post-Ministerial Conference (PMC) with its dialogue partners, the ASEAN Plus Three Ministerial Meeting (ASEAN plus China, Japan and the Republic of Korea).  In addition, Cambodia is preparing for other important events such as the World Buddhist Summit it December 2002 and the ASEAN Tourism Forum in early 2003.

 

  1. In this capacity, Cambodia is committed to strive to advance the ASEAN integration process, considered as one of the top priorities for ASEAN to meet the challenges of globalization and regionalization in other parts of the world and to realize a strong partnership between ASEAN and the +3 countries (Japan, China and ROK) for the benefit of East Asia as a whole.

 

  1. In conclusion, based on what Cambodia has achieved thus far and the momentum of development, I think that Cambodia will be able to accelerate its current process of national reconstruction and development and to overcome many problems and difficulties we are still facing.

 

                        Thank you very much for your kind attention.