Cambodia dedicated to good governance

A growing number of Chinese companies with big investment projects, like hydropower plants, have begun exploring options in Cambodia.

With a free trade arrangement reached last year between China and Cambodia, bilateral trade is expected to increase further this year.

"Now that China is becoming wealthier, we shall see a greater influx of Chinese tourists," Keat said.

To attract more tourists from China, the Cambodian government is increasing flights to, and its consulates in, many Chinese cities.

"We need to build friendship, and know each other," Keat said.

Challenges

In pushing forward reforms, Keat said he experienced two main challenges - lack of a sense of the general or the public good, and the weak delivery capacity of civil servants.

During Cambodia's decades of war, people were struggling to survive. As a result, "they have less respect for the public good," he said.

"So the challenge is to change the mentality of my country's people so that they are aware of one of the rules of life, that is, the respect for the public good."

Meanwhile, the government is trying to train its officials to have higher delivery capacity. "Unfortunately, every country faces the problem of corruption," he said. "In this country, we have made great progress against corruption."

Though no special anti-corruption law has been put in place yet, some financial laws have laid out terms for punishment in case related regulations are breached, Keat said.

Drafting anti-corruption legislation is just a matter of time, according to Keat. The minister insisted penal code should come before the adoption of the expected anti-corruption law.

In addition, agriculture sector development will help enlarge the base of the economy of Cambodia.

Thus the minister attached added importance to SME development, seeking to diversify the country's economy and reduce financial risks.

The key to developing SMEs is financing, said Keat. He stressed strengthening of micro-finance, especially to SME operations in the countryside, which are expected to create jobs for rural locals.

In terms of investment attraction, he said that his country has its own advantages in low labor costs and an open environment, yet some production factors, like energy costs, are still high there.

"So we have to work hard to reduce these costs," he said.

China, as one of the major contributing countries to Cambodia, has extended a lot of assistance to the ASEAN country, exerting a significantly positive impact on Cambodia's economy.

In 2006 alone, the Chinese government provided $200 million in loans to Cambodia, most of which are to be used in infrastructure construction.

"I am lucky in the sense that I have a young and talented team around me," said Keat. "We have to sit in the driving seat."

Keat said he agreed with the view of Daniel H. Rosen, principal of China Strategic Advisory in Washington, that governance is some kind of technology. The minister enjoys making progress in improving this kind of technology.

(China Daily 04/10/2008 page26)