Cambodians Still Stuck In Grim Poverty Despite Recent Rapid Economic Growth

The Associated Press reports that “The vast majority of Cambodians continue to live in poverty and lack choices for their future despite their country's rapid economic growth… Widening inequalities in incomes, child malnourishment, children dropping out of school at an early age, high maternal mortality rates and rising land conflicts are among the hardships of the rural poor, according to the Cambodia Human Development Report 2007 [government report] released on Thursday.

At the same time, the Cambodian economy has been one of the fastest growing in Asia, expanding at 11.4 percent in each of the past three years. But "further beneath the surface of double-digit growth rates, potentially serious imbalances and challenges to recent achievements are emerging," said the report, whose research and publication was financed by the United Nations development agency, UNDP.” [Associated Press/Factiva]

Dow Jones reports that “Other grim pictures include the fact that each year, some 30,000 Cambodian children die from preventable causes such as malaria, dengue fever and diarrhea, it said. It warned that the problems could spell "major setbacks" for Cambodian economic growth, which has so far been concentrated in urban areas. Some 35% of Cambodia's 14 million people live below the national poverty line of just KHR1,826($0.45) a day. Cambodia's recent economic growth has been fueled largely by the garment industry. Last year's garment exports were worth $2.6 billion, accounting for nearly 80% of total exports.” [Dow Jones/Factiva]

Kyodo reports that the gap between the country's urban areas and the rural poor continues to grow, according to a report released Thursday. ''Of the one-third of the country's population that lives below the poverty line, 90 percent live and work in rural areas. Most worrisome, the gap in living standard between the large numbers of rural poor and urban elites has continued to widen rapidly, as has the gap between the rural poor and a minority of rural rich,'' according to the report, ''Expanding Choices for Rural People,'' by Cambodia's Ministry's of Planning and the U.N. Development Program….U.N. Resident Coordinator and UNDP Resident Representative Douglas Gardner noted…''Poverty in rural areas currently stands at around 39 percent, compared with 5 percent in Phnom Penh,'' Gardner added.” [Kyodo/Factiva]

Xinhua adds that “The Cambodian government will flow more capital into the rural areas and the agricultural sector to build infrastructures, roads and irrigation systems in collaboration with private enterprises, so as to reduce poverty to its minimum level, said Prime Minister Hun Sen…The government is also trying to improve the transportation system to assist the farmers to access their products to the markets and make their living better, he said at a ceremony marking the International Day of Poverty Reduction, which also featured the launch of the Cambodian Human Development Report in 2007.

Lack of professional personnel and land resources are major obstacles to poverty reduction in Cambodia, so that the government has to guarantee the poor people's rights to land and persuade parents to send their children to school, he said.”[Xinhua/Factiva]  

Millionaire families grew by 14 pct in 2006-survey

“The numbers of millionaire households globally grew by 14 percent in 2006 from 2005 and now control a third of the estimated $100 trillion in wealth, a new study by Boston Consulting Group shows. These 9.6 million families, comprising 0.7 percent of world's households, now control some $33.2 trillion, the BCG study found. About half are located in the United States and Canada, a quarter in Europe and a fifth in the Asia-Pacific region, it said.

The study is the latest to quantify a continued widening of the global gap between rich and poor, with the rich getting richer by saving and investing more. The study, seventh in a series, found that assets held by non-wealthy households - defined as those with less than $100,000 in financial assets - declined slightly from 2001 to 2006. But assets held by households with more than $100,000 climbed from $51.4 trillion to $84.5 trillion during the same period.

The study found that overall global wealth grew 7.5 percent in 2006 to nearly $100 trillion, the fifth consecutive year of expanding wealth. The survey polled 111 brokerages, banks and private family investment offices that oversaw nearly $10 trillion in client assets and liabilities.” [Reuters/Factiva]

Cinco Días (Spain) also reports that “The control of assets was concentrated between the richest families, with 17.5% of global wealth controlled by the richer 0.1%, those with more than 5 million dollars in assets,” said the study. The investigation attributed the gains mainly to two factors: to increased savings and market gains for stocks, bonds and cash, reflecting wealth managers' long-held view that market investments are a key factor in building wealth.” [Cinco Dias/factiva]  

UN General Assembly Concludes Annual High-Level Debate

“The 62nd session of the UN General Assembly wrapped up its high-level debate on Wednesday as member states urge concerted international efforts to address challenges in the fields of climate change, security, development and the reform of the United Nations.   

In a closing statement, Srgjan Kerim, the assembly's current president, said the presence of almost hundred heads of state and government as well as about 80 foreign ministers is ‘a mark of the importance the world places on this unique assembly.’  

During the debate, world leaders sent ‘a strong political message’ for international response to the challenge of climate change, said Kerim…’Climate change has become the flagship issue of the 62nd session,’ he said.  

Kerim said that member states also reached broad consensus that the UN must remain at the center of the process to reach a global agreement to tackle climate change. …Kerim said the participants also underlined the need for better progress on the reform of the UN. …” [Xinhua/Factiva]

AP notes that “African leaders took the podium at the UN General Assembly, warning again and again that the failure of rich countries to meet their aid commitments is keeping poor nations from meeting UN goals to reduce poverty and achieve environmental stability. …  

At Wednesday's closing session, Kerim, said there was ‘overwhelming support’ from leaders from all regions to make quicker progress to meet the UN goals…[However he] noted the urgency of the situation. ‘Many of the goals are off-track, but in sub-Saharan Africa we may not achieve a single goal by 2015. This is indeed an emergency situation,’ he said.” [The Associated Press/Factiva]  

Interview with World Bank Vice President [Pamela Cox] re Peru

[Translated version]   It is reported that Peru has a good growth rate and bright future prospects. Nevertheless,  certain reforms need to be advanced further in order to improve the business environment, especially now that Peru is soon to obtain a Free Trade Agreement with the US and is negotiating similar agreements with other countries.

For the World Bank, it is important that Peru makes progress in reforms which make it easier to complete routine procedures, such as granting operating licenses. [In an interview with Peruvian daily, Comercio,] Pamela Cox, World Bank Vice President for Latin America and the Caribbean, warns that in the future, equitable distribution of economic growth will be fundamental, not only in Peru, but also in other nations of the region.

Question: How can Free Trade Agreements contribute to Peru’s growth?

Answer: Trade agreements, such as the FTA with the United States and other countries, are very important for Peru because they create opportunities for growth. For example, Peru has   vast experience in the area of nontraditional exports, such as asparagus and cotton. I personally visited Cañete and it was very interesting because there they have used various types of nontraditional products, which are in high demand in countries such as the US. These initiatives are good for Peru, because it creates job, opportunities and growth. …” [Comercio (Peru)/Factiva]

Indonesia Plans World’s Longest Bridge

“Indonesia on Wednesday gave the initial go-ahead for the world’s longest road and railway suspension bridge across the 30 km Sunda Strait between the islands of Java and Sumatra.

The $10 billion project is for a series of bridges carrying a six lane highway and double track railway traversing three small islands in the strait. The longest span would be about 3km, more than 50 per cent longer than the longest existing structure, the Akashi-Kaikyo bridge in Japan.

Heka Hartono, an official of the Artha Graha Network, the lead member of the consortium that will build the bridge, said construction would begin in 2012 if feasibility studies confirmed it was viable, with the first travelers crossing in 2025.

The bridge would relieve mounting pressure on Java… that is home to 130 million people. The population of the whole of Sumatra, which is three times larger, is 47 m. The bridge would significantly cut the journey time between the islands, which take several hours by ferry. Some 20m people crossed the strait in 2006 and the figure is forecast to double by 2020. …”

[The Financial Times (UK)]

Asia Pulse writes that “Long abandoned plans to build a bridge spanning the Sunda strait between the southern tip of Sumatra and western Java have surfaced again with a report saying a new agreement is to be signed today.  

The signing of a Memorandum of Understanding between Lampung Governor Sjachroedin ZP, Banten Governor Ratu Atut Chosiah and the consortium of Graha Networks may signal a progress toward implementation of the project, observers said. …” [Asia Pulse (Australia)/Factiva]  

Also In This Edition: Briefly Noted…

Senegal has enjoyed since 2003 good progress particularly with growth rates above 5 percent but remains nevertheless confronted with challenges such as employment and education that condition its development, declared World Bank Country Director Madani Tall during the sixth Consultative group meeting on Senegal. [Agence de Presse Sénégalaise/Factiva]

World BankCountry Director Colin Bruce said Wednesday that Kenya's public debt management had significantly improved over the last few years, noting that donor funds have been used effectively for the intended purposes. [Xinhua/Factiva]

Gabon is seeking foreign investors to help break domestic monopolies, its trade minister Paul Biyoghe Mba told Reuters. Foreign investment could also help Gabon diversify away from its dependence on oil. [Reuters/Factiva] 

The Mozambican government is drawing up a strategic plan on managing the quality of the air that Mozambican citizens breathe, local media AIM reported on Wednesday. [Xinhua/Factiva] 

Africa must recruit 4 million teachers within the next decade if the goal of ensuring universal access to basic education for all children is to be realized by 2015, the UN Educational, Scientific and Cultural Organization (UNESCO) Director General Koichiro Matsuura announced Tuesday. [Xinhua/Factiva]

A report into the World Bank's activities in Democratic Republic of Congo since 2002 by the independent inspection panel will be discussed at the board level in the World Bank within weeks. [The Guardian (UK)/Factiva]

The EU plans to provide Honduras with $314 million under its 2007-2013 aid program, visiting European Commissioner for Foreign Affairs Benita Ferrero-Waldner said Wednesday, according to news reports from Tegucigalpa. [Xinhua/Factiva]

The Colombian Congress approved a government plan to contract for $267 million in loans from multilateral lenders to support the expansion of a national urban transportation system, to improve schools and to boost a crop substitution program. Colombia's finance ministry will ask the World Bank for a $207 million loan to finance the expansion of replicas of Bogota's popular public transportation system, dubbed Transmilenio, in cities such as Medellin, Barranquilla and Bucaramanga. [Dow Jones/Factiva]

According to the report, Expanding Choices for Rural People by Cambodia's Ministry's of Planning and the UN Development Program, the gap between Cambodia’s urban areas and the rural poor continues to grow. Moreover, the gap in living standard between the large numbers of rural poor and urban elites has continued to widen rapidly, as has the gap between the rural poor and a minority of rural rich. [Kyodo News (Japan)/Factiva]

Salinity and water-logging have affected about 40 percent of irrigated land in Pakistan, according to a World Bank report. Land degradation due to salinity and water-logging, coupled with the pressure of industrialization have limited the farm area and there is little prospect of increasing cultivable land. [Business Recorder (Pakistan)/Factiva]     

European parliamentarians urged Vietnam on Wednesday to fast-track negotiations for an EU-ASEAN free trade agreement as European businesses worry about competition from the US and elsewhere. [Reuters/Factiva]

Gazprom, the Russian state-controlled energy group, said yesterday it had secured an agreement from Ukraine's current government to pay $1.3 billion natural gas arrears by November 1, thus avoiding potential cuts in supplies. [The Financial Times (UK)]

Bulgaria's economy is not overheating and has potential to grow further but the government will keep its tight fiscal stance to prevent external risks, Prime Minister Sergei Stanishev said on Wednesday. [Reuters/Factiva]

A royal decree this week reorganizing the Saudi legal system is set to revolutionize Saudi justice, improving human rights and the business environment, experts say. The decree sets up two Supreme Courts for the general courts and administrative courts which each are the final recourse after courts of first instance and appeals courts, said Hassan al-Mulla, who heads Saudi Arabia's nascent Bar Association. [Reuters/Factiva]

The main donors to the Palestinian Authority plan to meet in Paris in mid-December to coordinate a three-year aid program, a Palestinian government spokesman said on Wednesday. The donor conference was decided earlier this month in New York during a meeting of the Ad-Hoc Liaison Committee (AHLC), a 12-member panel that acts as the main aid mechanism for the Palestinians, Riyad al-Maliki said. [Agence France Presse/Factiva]

Governor of the Palestine Monetary Authority, George Abed said on Wednesday some Palestinian banks could be forced to shut their Gaza branches by year-end. He said Gaza's supply of shekels, the Israeli currency, could begin to run out starting next month and that individual Gazans could have trouble receiving funds from family members abroad. [Reuters/Factiva] 

Italian Economy Minister Tommaso Padoa-Schioppa was elected to chair the International Monetary Fund's (IMF) steering committee, diplomatic and IMF sources said on Wednesday. [Reuters/Factiva]