Cambodia is among the poorest and least developed countries in East Asia, and its public health situation may be the worst in the region. Poor health affects worker productivity and impacts family finance, and has been causally linked to much of the landlessness and extreme poverty in rural areas. Unfortunately, the country's public health budget is extremely under-funded; in 2003, it was just US$2 per citizen. Up to 80 percent of total health expenditures fall upon individual Cambodians.
              Cambodia has been approved to join the World Trade Organization. As a WTO member, it must implement provisions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which is the most comprehensive multilateral agreement on intellectual property and its protection. This agreement may affect both the ability of Cambodians to access drugs, and the ability of Cambodia's few drug manufacturers to survive. The implementation of patent licensing, under TRIPS, would cause an immediate market shock by increasing the price of locally-available drugs. The poor would have even less access to health care. TRIPS implementation would require improvements in Cambodia's emerging drug industry, which may prove difficult.
              To assist its citizens and industry, Cambodia should seek, under WTO's Doha Declaration, concessions to extend the patent provisions beyond the current deadline of 2016, and should seek special licensing prices. The Cambodian government also must take responsibility for promoting pharmaceutical research and development institutions.... [  For full story click here ]

Implications of GATS
on the Cambodian Economy

              Cambodia's impending membership in the WTO requires it to make commitments to liberalize its trade in services under the General Agreements on Trade in Services (GATS). Empirical evidence shows that the Cambodian services industry is de facto liberalized; thus, the GATS is here to regulate an already-opened market.
              The services industry in Cambodia is, in fact, experiencing a fast growth. Its share in total GDP increased from about 35 percent in the early 1990s to about 50 percent in 2003. It employs about 20 percent of the labor force and has the highest economic output. Agriculture employs more than 70 percent of the labor force but has an output of less than 30 percent.
However, much of the profit from the services industry goes to foreign investors. Cambodia's government must encourage domestic competition in order to fully benefit from the potential growth in sectors such as tourism. Attention by the government is needed to help Cambodians develop their business skills and capabilities.
... [  For full story click here ]

Cambodia’s Economy During the
Political Deadlock and Aftermath

               The annual growth of the Cambodian economy in recent years has been relatively strong, but not enough to stop rising poverty. EIC estimates that GDP grew 5.5 percent in 2003, the same rate as in 2002. An increase in agricultural production was the primary engine of growth. The garment sector also continued to be strong. But public construction and tourism were both down.
              Indicators for 2004 are showing that agriculture might not be as exceptionally good as last year, while garments, construction, and tourism all rise. These are encouraging factors, but reliance on these few sectors discourages sustainable growth. There is a concurrent negative indicator, such as the possible threat to the garment industry posed by phase-out of quotas in 2005. A more diversified economy is necessary.
              Political stability and good governance are the mainstays for attracting new investment into the country, and a solution to the 2003-2004 political deadlock could be one key to entice that investment.. ... [  For full story click here ]