User:Navika chan/Cambodia and the International Monetary Fund

Reestablish Financial Institution
== As we all know, Cambodia faced a downhill period — the Khmer Rouge regime ruined everything little in Cambodia. Under the Khmer Rouge regime, there was no currency, no bank, and no international trade, which was influenced by Chinese leader Mao Zedong — one party, no private property, and rejecting modern development. After the dark period passed, Cambodia needed to rebuild the country as well as its financial institution. Still, without the framework, it would be a big challenge for the Cambodian government to restructure its government system. Cambodia started from scratch; it took a very long time to restore everything. In 2004, IMF sent the expertise to advise and help the Cambodian government to strengthen its law and fix the banking system. This is a reason why many developing countries want to be a part of an international organization like the IMF, World Bank, or World Trade Organization — less or more; the developing countries gain the benefit from the international organization. With a stable financial institution, there are many great opportunities for foreign investment, which greatly impact Cambodia's economy. Thanks to IMF, Cambodia's economic growth with healthy. == “Cambodia Loses Duty-Free Access to the EU Market over Human Rights Concerns.” European Commission - European Commission, ec.europa.eu/commission/presscorner/detail/en/IP_20_1469. Accessed 29 July 2023.

“Building Financial Institutions in Cambodia.” IMF Capacity Development - What We Do, www.imf.org/external/np/ins/english/capacity_countries_mfs_cambodia.htm. Accessed 29 July 2023.

Add on other topic
There are three-pronged strategies for Cambodia's revenue mobilization: improving revenue, implementing fair, efficient tax policies, and strengthening the government. With this strategy, it would create positive results on development and make it easier to keep track of tax collection. Taxation plays a main role in revenue mobilization, for example, income tax and VAT. The tax collection from the company and other business forms helps the government fund and promotes domestic production by imposing a tax on import production. The Cambodian state adopted the E-payment system. People have started to transfer money via phone. Because the process is much easier than paying by cash somehow, the E-payment is like a beauty cover but nothing inside. People actually see the number in the bank account, but they do not have it in the actual physical form, which is a deep concern for a developing country like Cambodia. Some people doubt that the bank actually has money or it is just the number that we just transfer back and forth.

Cambodian and the IMF
== Cambodia gained independence in 1953, which was the starting point of industrialization. With a lousy fortune, Cambodia faced a downhill between 1975 till 1979, which damaged all the infrastructure and economy, economical and a tragic event — genocide which killed millions of innocent citizens and especially the loss of human resources, which caused the Cambodian economy to drop to the lowest point. The Cambodian economy started lively in 1993, hugely relying on the foreign market to export agricultural produce, especially rice. ==

Everything But Arm (EBA)
== Everything But Arm is an international trade order created by the European Union to support developing countries with quota-free export of their produce to the EU market. Everything But Arm refers to every product but not arms — weapons. With the support from the EU through the EBA policy, Cambodia receives a colossal benefit from zero tariffs on exporting, which draws a ton of investors from other countries, for example, China, in the textile industry. Chinese investors have started investing in Cambodia, which creates job opportunities and training skills for Cambodian workers. However, the EU withdrew the EBA from Cambodia in 2022 due to concerns about human rights issues. The commissioner for Trade, Phil Hogan, said: “We have provided Cambodia with trade opportunities that let the country develop an export-oriented industry and gave jobs to thousands of Cambodians. We stand by their side also now in the difficult circumstances caused by the pandemic. Nonetheless, our continued support does not diminish the urgent need for Cambodia to respect human rights and labor rights. I stand ready to continue our engagement and to restore fully free access to the EU market for products from Cambodia, provided we see substantial improvement in that respect.” (European Commission). With that being said, Cambodians still can export their products into the European market but with the same tariff as many other countries in World Trade Organization, which cause a huge disadvantage to the Cambodian economy. ==

== “Cambodia Loses Duty-Free Access to the EU Market over Human Rights Concerns.” European Commission - European Commission, ec.europa.eu/commission/presscorner/detail/en/IP _20_1469. Accessed 29 July 2023. ==