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Economic Review
Volume 1 No. 2
Addressing
Social Justice
For Economic Development and Democracy
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If the
human development indicators are accurate and carry some
significance,
it will be tempting to infer that there has been social
injustice in Cambodia. |
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Cambodia has experienced, in the past fifty years, some
traumatic changes in both economics and politics. The first
turning point was in 1970 when the "First Kingdom", under the
leadership of the then Prince Norodom Sihanouk, was terminated
by a republican group that later renamed the country, "Khmer
Republic". The sixties saw a progressive movement toward a
state-controlled system that the republican intellectuals
aimed to replace with a free market policy. But the effort was
severely hampered by a spill of the Vietnam War into Cambodia.
This led in 1975 to the Khmer Rouge’s victory and imposition
of a fanatical communism in their search for a Utopian
Cambodia, marking a second turning point for the country. The
communist regime lasted until the third turning point at the
end of 1978 when it was overthrown by invading forces from
neighbouring Vietnam that subsequently installed a socialist
system. There is a common characteristic among the three
turning points, which could be appropriately referred to as
"failed revolutions" - a seemingly genuine desire of
instigators of those events to search for a better Cambodia,
only to be followed by their own people's untold sufferings
and traumas.
The Paris Peace Agreement 1991 signed by all the main
stakeholders, including foreign interests, has allowed
Cambodia to experience a relative peace and stability, and
opened up the country for a new era of development. To sustain
peace agreements, a liberal democratic system and a free
market economy were restored. Social justice was supposed to
be promoted. Now, after ten years of a development and
democratisation process, a number of relevant questions should
be asked: What is the status of social justice in Cambodia? To
what extent do the Cambodian policy makers embrace, if at all,
the concept and rationale for social justice? And, perhaps
more importantly, how could social justice be promoted within
the context of the current economic, institutional, and legal
reforms?
Concept and Rationale
A
review of academic literatures on social justice offers a
number of aspects that relates to the concept, rationale, and
function of social justice. It touches on a number of major
related issues: institutions, rights, and economic justice
that deals with participation, distribution, and harmony.
Academia fails to agree on a definition of "social justice",
and one hundred respondents in a survey conducted in Phnom
Penh by the Economic Institute of Cambodia (EIC) say they do
not know the definition of the term either. They believe,
however, that social justice does not exist in Cambodia.
Ninety seven percent of the respondents justify their claim by
pointing out many social and economic issues, including the
following:
- The rich become richer
and the poor become poorer.
- The unemployment rate
is dramatically on a rising trend, especially among the poor.
- The poor cannot access
public services, especially education and health.
- The judicial system is
not fair, because of corruption and other problems.
- The democratic system
is only a facade.
The respondents perceive that democracy is the most important
component (39 percent) of social justice, followed by the
judicial system (35 percent). The economy places only third,
with 26 percent. About two-thirds of the respondents indicate
that a better social justice would help improve their
livelihood, and that the national economy and social justice
are intertwined.
Current Status
Based on human development indicators for Cambodia published
by UN and other various organisations, it is indeed difficult
not to infer that there has been social injustice in Cambodia.
In fact, the EIC survey shows nine out of ten respondents are
not happy with their livelihood, and the same number indicates
that their expectation in life has not been met.
These numbers could be alarming; the country is potentially
approaching another catastrophic turning point. It can
continue its same road, which is likely to perpetuate the
current socio-economic problems possibly leading to another
"revolution"; or it can take on major issues associated with
"social justice" so that the turning point may not be
necessarily disastrous. In its own effort to address the
deteriorating social conditions, the current Cambodian
government has consistently pledged a substantial increase in
social and rural development expenditures in its budgets.
Though some improvement has been made, the efforts have
overall failed to make inroads into the problems, as confirmed
by the dismal current human development indicators.
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Figure 1. What are the Main Components of
Social Justice in Cambodia?

Source: EIC Survey, 2003 |
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Absence of Economic Opportunities
From an economic perspective, extreme poverty is the cruellest
form of social injustice. Statistics released by the United
Nations show that at least one-third of Cambodians do not have
enough to eat, and half of Cambodian children under five are
malnourished. The government socio-economic surveys also
reveal that, on average, more than 80 percent of Cambodians
live on less than one US dollar per day. Ninety percent of
these poor people live in the rural areas, and are farmers.
Though Cambodia has received substantial amounts of foreign
grants and loans, the official statistics suggest that 60
percent of these funds remain concentrated in the Phnom Penh
area where only about 10 percent of country's population
resides; most of the remote areas remain undeveloped. As a
result, the income gap between Cambodian regions is widening.
According to an EIC estimate, GDP per capita in Phnom Penh in
2003 was 5.5 times higher than that of the provinces; it was
only three times higher in 1994. In addition, GDP per capita
in rural areas has sharply declined during the last seven
years, while that of Phnom Penh has steadily increased during
the same period. The decline of incomes in rural areas has
been caused by successive natural calamities due to intensive
deforestation, lack of irrigation, and increasing
underemployment.
Low productivity in the agriculture sector and lack of new
land for young farmers has led to an extensive migration in
search of productive work elsewhere. Many people could not
live on their farming income due to unreliable rainfalls and
limited opportunity for more productive farming and other
income-producing activities. The land available for each
farmer becomes smaller as children in a household successively
inherit only a portion of their parents' land. The tough
conditions on the land naturally encourage mass migration into
big cities, especially Phnom Penh. The EIC survey shows 63
percent of people migrating to work in the city possess their
own land, but they simply cannot live off it. The survey also
reveals that about one-third of them migrated to Phnom Penh
only during the last 2 years, and about 40 percent of
respondents have been working as vulnerable workers for almost
5 years. Still there is no sign of a proper job prospect or
improvement in their working life. According to the survey, 72
percent of those workers make less than US$ 2 per day, an
amount hard for them to live on. The survey also indicates
that 37 percent of the respondents are in debt. In the absence
of official statistics, it can be easily observed that
Cambodia has suffered from at least a chronic underemployment
problem, if not extensive unemployment. Assuming that
Cambodian productivity is comparable to any developing
economy, the overall income per capita of the country of a
mere US$ 280 per annum shows that people have not been able to
engage in productive work. There is a suggestion that the
underemployment rate in rural Cambodia may exceed 50 percent
of the labour force. This is momentous as rural Cambodia
absorbs almost 80 percent of total workforce in the country.
Ineffective Social Services
The Cambodian government has repeatedly pledged a substantial
increase in social and rural development expenditures in the
budget, but largely those promised increases have not been
effected. Some improvements have been made, but actual
expenditures tend to be substantially below what are planned.
Consequently, public services, especially in the social
sector, remain ineffective. According to a World Bank report,
the government's contribution towards social expenditures is
very low in Cambodia, compared with other countries.
For example, in 2002, the government provided only about US$6
per person per year for health care and education, compared to
an average of about US$12 dollar per person per year in other
less developed countries, and US$150 in Thailand.
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Box 1: Main Poverty and Human Development Indicators of
Cambodia
●
Half of the children
under five are malnourished.
● For 1000 live
births, more than 130 children die
before they reach five years old.
● Of 100
children, 78 start primary school, 31 repeat
their first year and seven complete primary school
in
six years. Only about 20 attend the secondary
school.
● At least
one-third of Cambodians do not have enough
to eat.
● At least 36% of
Cambodia livelihoods live below the
extreme poverty line.
● Cambodia's UN
human poverty index ranking is 73rd
out of 78 developing countries.
● Cambodia's UN
human development index ranking is
153rd out of 175 countries, the lowest in
Southeast
Asia.
Source: EIC, Compiled from UNDP and
Government data |
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Cambodia's households, most of which are poor, finance an
overwhelming 82 percent of all health expenditures. Donors and
NGOs contribute 14 percent towards health care costs, and the
government only 4 percent. Consequently, the quality of the
public health in Cambodia is severely inadequate. Health
problems are increasingly becoming the main cause of poverty
for Cambodians. With limited assistance from the public health
system, Cambodian families often have to sell their land to
pay for health care, and then become landless. The dire
poverty spiral is simply perpetuated. Education also suffers
from severe lack of government support. The World Bank report
states that donors and NGOs finance about 46 percent of
Cambodia's education expenditures, with individual households
and government each contributing about 27 percent towards the
cost of education. Consequently, education system in Cambodia
is characterised by limited national budget allocation,
low-quality teachers, and the lack of relevant education
policy. School facilities are very poor and dependent on
foreign aid and private donations. According to official
figures, progress has been made regarding the literacy rate
and school enrolment, but the quality of students still
remains very sub-standard. A UNESCO survey shows that about a
half of those who are considered to be literate do not read or
write correctly. The EIC research findings reveals that among
100 vulnerable workers, 65 have not finished primary school,
and their average duration of schooling is only five years.
This low school enrolment is mainly due to poverty.
Limited social harmony
As a human being, having good social interactions with
relatives and friends, and having access to other social
entertainment is crucial. The EIC survey shows 75 percent of
vulnerable workers in Phnom Penh are able to visit their
native villages or relatives at least once a year. But, when
asked whether they have time for social leisure or recreation,
70 percent give negative response; 48 percent indicate they do
not have sufficient opportunity for good relationship with
friends. This social deprivation also prevails in a question
on life expectation. Ninety percent of respondents say they
are not happy with their current life. This figure clearly
shows that social harmony in Cambodia society is very limited,
and this life disappointment often leads to social problems,
including domestic violence.
Weak Institutional Governance
The success of democratisation efforts and the effectiveness
of a government are closely tied to the quality of the public
administration, especially the standard of the public
personnel management. Cambodia is still embedded with
patronage system that has weakened the public administration.
The EIC survey reveals that only one-third of vulnerable
workers interviewed feel that the government could improve
social justice in the country, while 61 percent of them
believe that powerful people could if they wished to. Many
people in civil society institutions interviewed by EIC claim
that the current leadership system, in both politics and
economics, is too complicated, leading to social injustice,
and cultural degradation. Social justice requires good
governance and popular participation in the development
process.
The EIC survey shows that 97 percent of respondents trust
neither the police nor the court system; and they feel that
complacent leadership is responsible for this mistrust. The
view from local NGOs and donor communities indicates that the
leaders do not see a clear distinction in their
responsibilities between their roles in their political party
and in government. They are in government, first and foremost,
for their party's interest, and consider public and national
interest less important. Many think tanks and civil society
agencies in Phnom Penh express their view that Cambodia has
sufficient laws to deal with major issues, but implementation
of those laws is a real bottleneck.Various policy
recommendations by civil societies to improve accountability,
including sensitive issues like conflict of interest,
nepotism, and red tape, have largely fallen on deaf ears.
Policy Responses
There needs to be concrete government responses to social
issues. Dismantling the autocratic system and improving
accountability, transparency, and participation in the
decision-making process are basic necessities for
strengthening good governance.
Restoring Trust
The fact that average people overwhelmingly do not trust the
state institutions to enforce the laws should not prevent the
government from enforcing them if they aim to regain that
trust. Government officials need to be aware and conscious of
the issue of conflict of interest within their roles in
government and their political party. They need to accept that
interest of the political party and that of the nation often
are not the same. In fact at many times, interest of one is at
the expense of the other. Making public service impartial in
its conduct as administrators in all levels in the country
would be a giant step forward.
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Figure 2. Cambodia’s Health Expenditure
Structure

Source:
EIC Survey, 2003 |
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Fighting Corruption through Accountability and Transparency
Enhancement of transparency will help address the corruption
issue that is plaguing the bureaucratic culture. Corruption is
a serious problem in every society because it not only affects
economic efficiency, but is a moral issue raising the question
of what moral standard the society is seeking. Corruption
emerges from uncertainty in political system, a loss of
commitment to the common good, and civil disobedience in the
entire populace. Corruption also creates political instability
and loss of mutual trust between government and people. In
general, corruption weakens the ability of governments to
carry out their functions effectively and efficiently.
Corruption control is, therefore, necessary to enhance
government efficiency and democratic accountability. An
improvement in accountability and transparency will
subsequently create trust and encourage participation of the
people in decision-making process.
But in the absence of the accountability and transparency,
which would require a clear initiative from the government,
the people could still perhaps participate in the decision
making process through first accessing right and accurate
information, and then making their opinions heard. The
Cambodian government seems to have made a start in this area,
albeit reluctantly. It appears that under pressure from donor
countries, the government has allowed various civil societies
to operate in various fields, including humanitarian
assistance, regional economic development, human rights, and
democracy. The offsetting factor is that a large number of
these societies are directly or indirectly under the control
of people loyal to the government. For a few outspoken ones
against the authority, including Global Witness, occasional
intimidation and threat have almost become a routine.
To make informed decisions and to initiate informed actions,
the people have access to the print media, which is fairly
free to present critical views. However, the level of literacy
among the adult population is fairly low, particularly in
rural Cambodia, and people generally do not have the reading
habit. The internal broadcast media, especially the television
network, is tightly control by the State; the audience of
these broadcasts has access only to materials that may be
considered to be of propaganda nature.
Using WTO Accession - a possible
panacea
Encouragingly, the Cambodian government has made a major
commitment for institutional reforms by joining the World
Trade Organisation (WTO). The membership requires many reforms
that, if and when carried out, will contribute to good
governance. Its industries will be subject to fierce
competition in the international and regional markets. If they
succeed, there will be far larger markets for local
productions, thus expanding industrial base and employment for
the country's fast-growing workforce. An EIC survey on the WTO
issue indicates that 70 percent of respondents who are
classified as small and medium business operators believe the
WTO membership could be of benefit; for respondents who are
vulnerable workers, the proportion rises to 80 percent. Some
people say that the membership will attract more investment,
which will foster employment for local people. WTO membership
can "enforce" rule of law that Cambodia desperately needs to
begin addressing socio-economic problems, including
corruption. In fact, 61 percent of the survey respondents
indicate that legal reforms to be undertaken after the WTO
accession could lead to rule of law, and help improve social
justice in Cambodia. Nevertheless, almost the same proportion
of respondents does not believe that the current government
can implement laws and regulations to fulfill the WTO
requirements.
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Figure 3. Do You Trust the Court?

Source: EIC
Survey, 2003 |
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Conclusion
Based on the unflattering human development indicators,
Cambodia may be facing another potentially tragic turning
point in its history unless the issue of social justice is
adequately addressed in time. The government has, indeed,
taken appropriate measures that may in some way help redress
the widespread social injustice, but much remains to be done.
Addressing social justice in Cambodia is possible through a
firm commitment to accountability and transparency. It would
encourage people's participation in decision-making process
that would be conducive to genuine democracy and a sustainable
economic development for benefit to all.
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By Sok Hach
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