The Establishment of Commercial Court in Cambodia:
Key Issues and Challenges        

             To fulfill part of its commitment for the World Trade Organisation membership obtained in September 2003, Cambodia is about to set up a commercial court for adjudicating business disputes. According to the First Draft Law, the court will begin sitting in June 2005.
            It seems all stakeholders agree in principle that the commercial court is necessary to deliver better conflict resolutions in commerce. It will help relieve workload from the ordinary courts that have, up to now, heard cases that may require expertise outside their usual proficiency. It can play a very important role in minimising business risks for investments by reducing the legal uncertainty in all business transactions.
             There will be teething problems, which is really the order of the day. The lack of adequate financial and human resources will impose serious constraints on the court establishment and administration; it raises the issues of both quality and quantity of judges for the court. A possible impact of these shortages is that, like other parts of the Cambodian judiciary, the newly established commercial court is likely, in the long run, to be rife with corruption, unless the issues are effectively addressed now.
              Perhaps, a more critical issue that may reinforce the potential for corruption relates to the court independence, which seems to cut through to the core of the Doctrine of the Separation of Powers. The First Draft Law effectively allows the Executive branch a considerable influence, if not control, over the court administration, especially the appointment of judges.........[  For full story click here ]
 

Removing Trade Constraints to Improve Competitiveness and Reduce Poverty

              The issue of trade within the Cambodian economy becomes paramount when the country moves from subsistence economy to the one with surplus, especially now that Cambodia is a member of the World Trade Organisation. The government has attempted some trade reform policies, but failed to produce any significant impact in terms of reducing trade constraints that have continued to stifle local industries.
              The trade constraints may manifest themselves in many forms, but effectively they all are reducing the country's competitiveness. Three major industries in Cambodia - rice, fishing, and garment, are so adversely affected by the trade constraints. They may not be able to cope with competition soon to be imposed by the WTO membership, unless there is a drastic change in their industry behaviour to raise competitiveness. The industries need to reduce their trade costs that include bribe tax and transportation expenses.
              Of course, the government could do a lot more to reduce the industries' high trade costs by addressing its governance and providing better infrastructure............[  For full story click here ]
 

Addressing Social Justice for Economic Development and Democracy

              For the past five decades, Cambodia had gone through three major historic turning points that caused unparallel sufferings for its people. Ironically, these turning points were preceded by what was perceived to be social injustice, and drastic responses were subsequently instigated in search for a better Cambodia.
              Currently, Cambodia is possibly approaching another potentially disastrous turning point as the vast majority of Cambodians is being deprived of basic human needs. Poverty indicators suggest that Cambodia is suffering from dire poverty among the poorest in the world. Many people believe there is no social justice in the country. The government is generally seen to be doing something but often fails. Its social spending has not been adequate to provide basic education and health care.
              To avert the potential disaster, the government needs to response in concrete actions to address autocratic system that works for only a small section of the population. It needs good governance to restore the people's trust and to bring the widespread corruption under control. ...........[  For full story click here ]