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Tuesday
Sep 07th
Home arrow Cambodia arrow Economics arrow Cambodia: World Bank Head urges diversification
Cambodia: World Bank Head urges diversification PDF Print E-mail
Tuesday, 07 August 2007

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During World Bank chief Robert Zoellick's 2 day visit to Cambodia, the new head stressed the need for diversification, and transparency.

 

Zoellick praised the resilience of the garment industry at the same time he called for greater efforts to expand beyond it. The industry has enjoyed strong growth in recent years, icambodia garment factory.jpgn large part due to its ability to market itself as a "socially responsible" producer, but faces stiff competition, particularly from Vietnam and China. More importantly, the economy remains heavily reliant on clothing and textile manufacturers with garment exports accounting for $2.5 billion, or 80%, of the country's total 2006 exports of $3.7 billion.

Zoellick spoke of the need to attack the country's rampant currption, which ranks among the world's worst acording to Transparency International, if Cambodia is to grow and attract foreign investment. Corruption issues have colored the Bank's relation with Cambodia in recent years after a 2003 scandal involving theft of Bank funds earmarked for troop demobilization and as recently as last year an audit of three bank supported projects uncovered millions of missing dollars.

In talks with the government, Zoellick promised to work with Cambodia to ensure passage of much delayed anti-corruption laws, urging the Hun Sen regime to go beyond simply passing the legislation but to also make its enactment effective.

 
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