The Moral Imperative of Quality Education


November 28, 2017

The Moral Imperative of Quality Education

by Peter Mutharika

Image result for Peter Mutharika PM of Malawi

Peter Mutharika–President of Malawi

Poor countries like Malawi are doing what they can to improve educational quality and access. But there is only so much that a country with modest means can achieve, which is why global leaders, when they meet in Senegal early next year, must recommit to investing in the education of all children.

 

BLANTYRE, MALAWI – In September, I was among a group of world leaders who gathered in New York City to discuss ways to improve access to quality education. Around the world, hundreds of millions of children are either not receiving basic schooling, or are attending schools but not learning. We gathered to devise a way forward.

The crisis that I discussed with heads of state from France, Senegal, and Norway, along with leaders from the United Nations and global education advocates, is not an abstract problem unfolding in a distant land. It is a crisis that has reached my doorstep in Malawi. The challenge of education is one that my government, like many in developing countries, grapples with every day.

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Quality schooling is key to helping people contribute to the development of their communities and their countries. Without a properly educated populace, it would take decades for developing countries like mine to overcome the profound economic, social, and health challenges that we face.

As one of the co-conveners of the International Commission on Financing Global Education Opportunity – which brings together world leaders to mobilize support for solutions to the education crisis – I have long focused on how to improve educational access. Quality schooling is key to helping people contribute to the development of their communities and their countries. Without a properly educated populace, it would take decades for developing countries like mine to overcome the profound economic, social, and health challenges that we face.

To ensure that we do not fail our children, or our country, my government is investing heavily to build a strong and sustainable education system. We have steadily increased education spending, which has risen from 12.5% of the total domestic budget in 2010 to 21% in 2015. This represents one of the highest percentages among developing countries anywhere, and I hope that our example will encourage leaders elsewhere to devote at least 20% of their national budgets to education.

But there is a limit to what economically struggling countries like Malawi can do alone. To make real progress in education, the generous support of wealthier partner countries and global institutions is essential. The momentum we have generated can be sustained only if donor support remains strong.

Malawi’s education sector has benefited greatly from balancing increased domestic investment with external support. For example, more Malawian children are enrolled in primary school than ever before, and the rate of boys and girls completing primary education has increased dramatically, from 59% in 2007 to 80% in 2014. Adult literacy has also improved, albeit more modestly, from 61% in 2010 to 66% in 2015.

Still, Malawi falls far behind the rest of the world on a several key education indicators. Among the list of challenges we face are derelict schools, high pupil-to-teacher ratios, and significant gaps in inspection and oversight capabilities. These and other issues make it hard for teachers to teach and for students to learn.

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GPE Global Ambassador Rihanna at the Élysée, Paris, July 2017

When Rihanna, the pop artist and ambassador of the Global Partnership for Education, visited Malawi in January and met with students and teachers, she put a spotlight on the promise of education. Our country has been fortunate to receive funding in recent years from bilateral donors and international organizations like GPE, which helps countries like mine increase educational quality and broaden access.

Since 2009, GPE funding has enabled Malawi to conduct long-term planning and data collection, and has brought domestic and international partners together for a common cause. GPE’s support has helped us build more facilities, overhaul our curriculum, improve access for girls, and train more educators.

It would not be an exaggeration to say that Malawi’s partnership with GPE has been transformative, which is why I am urging donor countries around the world to contribute generously to GPE at its upcoming financing conference in Senegal. By 2020, GPE aims to distribute more than $2 billion annually to help improve education in developing countries around the world.

Without GPE’s support, some 825 million young people risk being left behind without the education or skills to perform well in the workplace of the future. That could lead to growing unemployment, poverty, inequality, instability, and other factors that threaten not just individual countries or regions, but the entire international community.

Educating every child is a moral imperative and thus a universal responsibility. In today’s interconnected world, challenges and gains in low-income countries do not remain local.

When my colleagues and I met in New York on the sidelines of the United Nations General Assembly, we recommitted to solving the challenges of educational quality and access. We now need the rest of the world to join us in addressing this global crisis head-on.

 

East-Asian Regionalism — A Bulwark Against a “Post-Liberal” International Order?


November 18, 2017

East-Asian Regionalism — A Bulwark Against a “Post-Liberal” International Order?

http://www.jpi.or.kr/eng/regular/policy_view.sky?code=EnOther&id=5325–www.eastasiaforum.org

By  See Seng Tan (RSIS, Nanyang Technological University)

In his January 2017 address to the World Economic Forum in Davos, Switzerland, Chinese President Xi Jinping positioned himself—unusually for the leader of Communist China—as a defender of globalization and free trade. Without a doubt, Xi’s remarks were directed at incoming US President Donald Trump, whose campaign rhetoric stressed resistance to globalization and promised the likelihood of an increasingly nationalist, isolationist, and protectionist America. Trump is not alone in wanting to reverse the tide of globalization the current pro-Brexit UK government has been singing a similar tune.

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This paper makes three interrelated points. First, the rising nationalist cum protectionist tide in the West is not a foregone conclusion due to mitigating factors that impel the great powers to cooperate, if only instrumentally and in the short term. Second, the history of East Asia from the Cold War to the present has been one where an emphasis on the preservation and protection of neutrality has given way in the post-Cold War period to so-called open regionalism, a broad-based preference for extensive and deep engagement with external powers and access to outside markets and resources. Third, East Asia’s shared commitment to open regionalism makes East Asian Regionalism, despite the present uncertainty surrounding regional trade deals like the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP), an important counter-narrative and alternative model to the isolationist and protectionist zeitgeist.

Is the World Turning Protectionist?

Should Trump and other anti-globalists have their way, how might their behavior impact the liberal international economic order? According to a Brookings Institution report, despite holding the largest share of world trade and foreign capital, the US, relative to its size, is not as globally integrated as other countries.1) What could prove detrimental, however, is if other countries retaliate against US protectionist policies this fact serves as the basis for concerns that Trump could precipitate a trade war. Yet while retaliatory trade behavior might only be a short-term issue, the more fundamental risk is if countries repudiate global norms and institutions that underpin the globalized economy. This is possible if they feel that the US is no longer committed to upholding the liberal economic order and shouldering its burden—a worry that predates the Trump presidency but has since been reinforced by it.2)

Additionally, there is concern whether China, despite President Xi’s performance at Davos 2017, will honor the commitments it has made. These include accepting imported manufactured products and services as well as fully implementing TRIPS (the Agreement on Trade-Related Aspects of Intellectual Property Rights) as China promised to do when it joined the World Trade Organization (WTO) in 2001.3) Finally, there is also concern about various types of “covert” protectionism (i.e., the so-called behind-the-border barriers) rampant in China and other emerging markets that are challenging to address.4)

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Recent developments suggest that Trump has been forced by unanticipated events to delay or defer the pursuit of his anti-liberal agenda. The Trump administration has made a series of abrupt reversals in foreign policy, such as revising his earlier opinions about NATO, US involvement in Syria, burden sharing by US allies, the One China policy, US involvement in the South China Sea, and the US Export-Import Bank. It has also retreated from intended protectionist moves toward China because Chinese cooperation is sorely needed to manage a recalcitrant North Korea. Consequently, Trump has gone from accusing China of being the “grand champion” of currency manipulation to declaring they have not manipulated the China’s currency in months. Additionally, since initially proposing a 45 percent tariff on Chinese goods for allegedly hollowing out US manufacturing, the administration has gone quiet (whilst at the same time threatening to impose a 20 percent tariff on Canadian lumber). Crucially, Trump has also expressed strong support for bilateral free trade deals.5)

Whether this retreat from protectionism and isolationism is a temporary or expedient move remains to be seen. After all, there is evidence to suggest that, despite these reversals toward what some observers see as a more traditional US foreign policy,6) Trump appears to persist in his preference for transactional approaches.7) This was apparent during the Trump-Xi summit, where both leaders reportedly deliberated with “a cold calculation of interests” as they mutually exacted concessions from one another while still acknowledging their interdependence.8) In other words, the reversals merely reflect the Trump administration‟s pragmatic response to evolving international conditions that require corresponding changes in reciprocity. These are the quid pro quos that embody transactional diplomacy. Still, by acknowledging mutual dependence, even if only on a transactional basis, a slide towards full-blown protectionism and unadulterated solipsism has been kept at bay.9)

East Asia: From “Neutrality” to “Open Regionalism”

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A More Engaged and Assertive Japan under Prime Minister Shinzo Abe

It is worth noting that the emergence and evolution of East Asian Regionalism (EAR) did not occur outside the liberal international order but within it. If anything, EAR has sought to complement rather than compete against liberalism. When former Malaysian Premier Mahathir bin Mohamad’s idea of an East Asian Economic Grouping (EAEG)—later amended to an East Asian Economic Caucus (EAEC)—was proposed in 1990, the assumption then was that the EAEG/EAEC would form a Japan-led regional bloc that could serve as a counterweight to emerging—and potentially rival—regionalisms in Europe (such as the European Union, or EU) and North America (such as the North American Free Trade Area, or NAFTA). However, EAR would take a back seat to Asia-Pacific regionalism with the formation of the ASEAN Regional Forum (ARF) in 1994. Together with the earlier formation of the Asia-Pacific Economic Cooperation (APEC) trade forum, the emergence of ARF—with ASEAN as first its midwife and subsequently its anointed custodian—marked a strategic shift in the way ASEAN viewed the involvement of great and regional powers within Southeast Asia. For the ASEAN countries, the Cold War perspective of the great powers as outsiders seeking to intervene, exploit, and divide the region and who therefore must be checked—as embodied in the 1971 ASEAN declaration of the Zone of Peace, Freedom and Neutrality (ZOPFAN)—was gradually replaced by a post-Cold War perspective of those same powers as external actors with whom Southeast Asians ought to actively engage through multilateral diplomacy, among other means.

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Cambodia and China–Strategic Partners in Development

Far from exclusivist, the new regionalism that emerged in the early post-Cold War years in the Asia-Pacific is what some have termed open regionalism. This concept argues for cooperation across national borders in a region to reduce transaction costs through the collective involvement of governments in “trade facilitation,” or the expansion of open trade.10)

Second, open regionalism is meant to be inclusive in that it seeks to incorporate outside powers such as the US and other eastern Pacific Rim countries into APEC and ARF.11) Belief in such inclusivism—coupled with the perceived need to construct a stable regional balance of power by including outside groups to counter possible hegemonic ambitions—led to a push to enlarge the membership of the East Asia Summit (EAS) to include countries beyond the 10+3 of ASEAN plus Three (APT).12)

Third, open regionalism encourages groups to make their enterprises compatible with institutional arrangements and practices in other parts of the world, including world bodies. For example, the architects of ARF made it clear that the forum is not meant to replace the San Francisco system of military alliances. Instead, it serves as a supplementary mechanism for dialogue and consultation. Likewise with the Chiang Mai Initiative (CMI) reserve currency pool, an institutional expression of EAR and APT, was launched against the backof the crippling Asian financial crisis of the late 1990s. Speculations that the CMI—along with its multilateral component, the CMI Multilateralization (CMIM)—would surpass the International Monetary Fund (IMF) as the region‟s first port of call for financial assistance in times of crisis were put to rest when it became clear that regional countries either prefer IMF assistance or bilateral swap agreements that had no IMF links.13)

This is also evident in how ASEAN and its suite of regional offshoots have avoided asserting themselves as the region‟s savior organizations when troubles hit by limiting their aim and remit. As in the case of the CMI/CMIM, Asian countries involved in territorial disputes have looked to world bodies such as the Hague-based International Court of Justice (ICJ)—as in the cases of the Indonesia-Malaysia dispute over Sipadan and Ligitan, the Malaysia-Singapore dispute over Pedra Branca, and the Cambodia-Thailand disputes over Preah Vihear and its promontory—the Hamburg-based International Tribunal for the Law of the Sea (ITLOS), or the Hague-based Permanent Court of Arbitration (PCA) for UNCLOS Annex VII arbitrations—activated recently in the case of the China-Philippines dispute over the South China Sea (SCS). Alternatively, they rely on bilateral means of dispute settlement rather than ASEAN-based dispute settlement mechanisms.14)

Reinforcing the Liberal Message Though EAR

Since the knee-jerk reactions in the immediate aftermath of the US withdrawal from the TPP—in particular, Japan’s insistence that a TPP without the US would be “meaningless”—Australia and Japan have emerged as the loudest voices in favor of an 11-member TPP trade deal sans the US, without ruling out the possibility of the latter’s return to the fold.15) Meanwhile some are hoping that RCEP will launch by the end of 2017, though the best possible outcome is likely to be a framework agreement.16) Much was made at the RCEP Kobe meeting in February 2017 about an inclusive agreement that ensures roles for all stakeholders. The argument by RCEP Trade Negotiating Committee Chief Iman Pambagyo, for example, that RCEP balance the needs of both developed and developing nations implies that progress is likely to be slow and by no means guaranteed.17) APEC supports a third trade pact, the Free Trade Area of the Asia-Pacific (FTAAP), but it remains at the consultative stage despite receiving strong support from China when it chaired the 2014 APEC summit.18)

Image result for modi's new india--Act EastIndia’s Act East Policy

Open regionalism inherently and intuitively liberalizes trade and refutes protectionism. Or it tries to. Despite the uncertainty surrounding TPP-11 and RCEP, they remain key reference points for any defense of trade liberalization. There is a longstanding debate over whether regional trade agreements compete with the world trade system.19) But, as we have seen, the ways in which open regionalism has hitherto been conceptualized and practiced in both the economic and security domains in East Asia render EAR a key political counterpoint to the anti-globalization fever that has seized the geo-economic cum geopolitical imaginations of the West. This is perhaps the most important role that EAR can and hopefully will play in the future, namely, as a bulwark against the anti-globalization tide through reinforcement of a liberal message.

Footnotes:

1) Brina Seideland Laurence Chandy, “Donald Trump and the future of globalization”, Brookings, 18 November 2016,
https://www.brookings.edu/blog/up-front/2016/11/18/donald-trump-and-the-future-of-globalization/
2) Kati Suominen, Peerless and Periled: The Paradox of American Leadership in the World Economic Order (Stanford, CA: Stanford University Press, 2012), p. 243.
3) Douglas Bulloch, “Protectionism May Be Rising Around The World, But In China It Never Went Away”, Forbes, 12 October 2016,
https://www.forbes.com/sites/douglasbulloch/2016/10/12/protectionism-may-be-rising-around-the-world-but-in-china-it-never-went-away/#359ae9bc73da
4) “Protectionism: The Hidden Persuaders”, The Economist, 12 October 2013,
http://www.economist.com/news/special-report/21587381-protectionism-can-take-many-forms-not-all-them-obvious-hidden-persuaders
5) Geoffrey Gertz, “What will Trump‟s embrace of bilateralism mean for America‟s trade partners?” Brookings, 8 February 2017,
https://www.brookings.edu/blog/future-development/2017/02/08/what-will-trumps-embrace-of-bilateralism-mean-for-americas-trade-partners/
6) David Ignatius, “Trump moves slightly toward pillars of traditional foreign policy”, USA Today, 13 April 2017,
https://www.usatoday.com/story/opinion/columnists/2017/04/13/trump-moves-slightly-toward-pillars-traditional-foreign-policy/100413776/
7) Greg Jaffe and Joshua Partlow, “Trump phone calls signal a new transactional approach to allies and neighbors”, The Washington Post, 2 February 2017,
https://www.washingtonpost.com/world/national-security/trump-phone-calls-signals-a-new-transactional-approach-to-allies-and-neighbors/2017/02/02/dcb797fa-e989-11e6-b82f-687d6e6a3e7c_story.html?utm_term=.97755b835303
8) Lexington, “A coldly transactional China policy: Donald Trump‟s first meeting with Xi Jinping was all about business”, The Economist, 8 April 2017,
http://www.economist.com/blogs/democracyinamerica/2017/04/coldly-transactional-china-policy
9) Robert Kagan, “Trump marks the end of America as world‟s „indispensable nation‟”, The Financial Times, 20 November 2016, https://www.ft.com/content/782381b6-ad91-11e6-ba7d-76378e4fef24
10) Ross Garnaut, Open Regionalism and Trade Liberalization: An Asia-Pacific Contribution to the World Trade System (Singapore: ISEAS Yusof Ishak, 1996).
11) Amitav Acharya, “Ideas, Identity, and Institution-building: From the „ASEAN Way‟ to the „Asia-Pacific Way‟?”, The Pacific Review, Vol. 10, No. 3 (1997), pp. 319-346.
12) Malcolm Cook and Nick Bisley, “Contested Asia and the East Asia Summit”, ISEAS Perspective, No. 46, 18 August 2016.
13) Hal Hill and Jayant Menon, “Asia‟s new financial safety net: Is the Chiang Mai Initiative designed not to be used?”, Vox, 25 July 2012, http://voxeu.org/article/chiang-mai-initiative-designed-not-be-used
14) See Seng Tan, “The Institutionalisation of Dispute Settlements in Southeast Asia: The Legitimacy of the Association of Southeast Asian Nations in De-securitising Trade and Territorial Disputes”, in Hitoshi Nasu and Kim Rubenstein, eds., Legal Perspectives on Security Institutions (Cambridge: Cambridge University Press, 2015), pp. 248-266.
15) WSim, “Australia, Japan lobby for TPP-11”, The Straits Times, 21 April 2017, http://www.straitstimes.com/asia/east-asia/australia-japan-lobby-for-tpp-11 “’TPP 11′ to Washington: We’ll keep your seat warm”, Nikkei Review, 16 May 2017,
http://asia.nikkei.com/Politics-Economy/International-Relations/TPP-11-to-Washington-We-ll-keep-your-seat-warm
16) Shefali Rekhi, “Will RCEP be a reality by the end of 2017?” The Straits Times, 23 April 2017,
http://www.straitstimes.com/asia/se-asia/will-rcep-be-a-reality-by-the-end-of-2017
17) Eric Johnston, “16-nation RCEP talks resume in wake of TPP‟s demise”, The Japan Times, 27 February 2017,
http://www.japantimes.co.jp/news/2017/02/27/business/16-nation-rcep-talks-resume-wake-tpps-demise/#.WR1RaU21v3g
18) Mireya Solís, “China flexes its muscles at APEC with the revival of FTAAP”, East Asia Forum, 24 November 2014.
19) Parthapratim Pal, “Regional Trade Agreements in a Multilateral Trade Regime: A Survey of Recent Issues”, Foreign Trade Review, Vol. 40, No. 1 (2005), pp. 27-48.

* This is a presentation manuscript in the panel “Regionalism After Liberalism”, Jeju Forum, 31 May 2017.

Cambodia in 2017 –Stronger on the Global Stage


October 24, 2017

Cambodia in 2017 –Stronger on the Global Stage

http://www.gmipost.com/special-feature/53/cambodia-2017.html

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The portion in front of the palace was used for watching boat races during the Water Festival. The Foreign Correspondents’ Club of Cambodia is located in this district. The quay is a 3km strip filled with vendors, locals, tourists and are lined with hotels, restaurants, bars, cafes and shops.–Phnom Penh, Cambodia

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Statue of His Majesty King Norodom Sihanouk in Phnom Penh

Having shed its image as a strife-ridden country, the Kingdom of Cambodia has made great strides in building a bright, sustainable future for its people. Made up of a population of 15 million, half of which are under 25 years old, Cambodia’s demographics present the perfect condition to speed up economic growth.

Growing at an average of seven percent during the last two decades, Cambodia already boasts one of the fastest growing economies in the world. Analysts remain optimistic about the country’s ability to sustain its growth, particularly in tourism, garment manufacturing, construction and property development.

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Prime Minister HE Samdech Techo Hun Sen played host to The World Economic Forum on ASEAN, May 10-12, 2017

Prime Minister Hun Sen, whose ruling party secured a fresh mandate in elections earlier this year, has continued to enact measures aimed at boosting Cambodia’s economic competitiveness within ASEAN and the rest of the world.

In May, Cambodia hosted the 26th World Economic Forum on ASEAN. With the theme “Youth, Technology and Growth: Securing ASEAN’s Digital and Demographic Dividends”, the WEF event, held in the bustling capital Phnom Pehn, was attended by more than 700 leaders from business, government, academe and civil society from around the world.

The event, according to the Cambodian government, was “an opportunity to raise Cambodia’s international profile and enhance its national prestige” and “contribute to the promotion of investment opportunities and tourists to the Kingdom”.

Justin Wood, the head of the World Economic Forum Pacific Region, praised Cambodia for boosting economic growth and reducing poverty in the country.

“There is a different story to be told about Cambodia. We want the world to understand a bit more about what is happening in Cambodia,” Wood said.

Setting the Foundations

As Cambodia pursues its growth strategy, the government recognizes that it needs to attract more investment in various vital sectors, particularly in infrastructure and education. At the heart of this plan is Minister of Public Works and Transport Sun Chantol, who was also Minister of Commerce.

“The government recognizes the critical importance of a healthy, efficient and cost-effective national infrastructure to expedite trade and lower transportation costs overall. Trade moves through different modes of transport, by sea, rivers, by airfreight, rail and road, and the respective networks continue to be rehabilitated, built and expanded,” Chantol explained.

In line with the WEF forum’s theme, Cambodia has stepped up efforts to make its graduates more competitive in the global market.

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The University of Cambodia, one of the kingdom’s largest private universities, is a key contributor to this renaissance in education.

Founded in 2003 by Dr. Kao Kim Hourn, UC can accommodate 10,000 students and stands as a leader in business and entrepreneurship education. In 2017, the university named its business school after AirAsia Group CEO Tony Fernandes, arguably the best-known Southeast Asian entrepreneur.

 

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In a ranking of business schools last year, the University of Cambodia was cited for possessing a “strong regional influence.”

“As we continue to build the capabilities and reach of this university, we are actively looking to forge partnerships internationally because exchanges are critical to our growth,” Dr. Kao stressed.

Planning for success in Cambodia


October 14, 2017

Planning for success in Cambodia

by Jayant Menon

https://blogs.adb.org/blog/planning-success-cambodia

Weak human capital is arguably the biggest challenge for Cambodia to reach middle-income status.
Weak human capital is arguably the biggest challenge for Cambodia to reach middle-income status.

Cambodia recently made the transition from a low income to a lower middle-income country, according to the World Bank’s rankings.

This is good news, but it poses a question: Does Cambodia need to rethink its model of export-driven economic growth, as preferential access for its exports to developed countries is gradually reduced or as aid flows diminish? Not necessarily, at least for now. But it should start preparing immediately.

Cambodia still has least developed country or LDC status as defined by the United Nations, and will likely retain its trade privileges for a while yet. But it will likely transition out of LDC status by around 2030 if it maintains current growth rates. With adequate advance planning, Cambodia can avoid being a victim of its own success when it does so.

That means stronger efforts to improve the tax collection mechanism, and curbing tax avoidance and evasion. Strengthening institutions to improve tax collection, and creating a culture where businesses and citizenry feel an obligation to contribute towards the provision of public goods and services, can take years, so it needs to start now.

Weak human capital is top challenge for Cambodia to reach middle-income status

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Cambodia also needs to expand the tax base, and hasten the move from direct to indirect sources of tax collection, while reducing its reliance on trade taxes. These initiatives are essential to mobilize domestic resources to fund development, given that overseas development aid and concessional financing will wane as the country gets more prosperous.

Cambodia also has several domestic obstacles to overcome, not only to prepare for a transition to upper middle income status, but to speed up that journey.

Arguably the most important challenge is weak human capital, as well as a skills mismatch. To fix this requires a much greater investment in education – not only in vocational or higher education but also at primary and secondary school. The enormity of the task that lies ahead is underscored by the World Economic Forum’s Global Human Capital Report 2017, that placed Cambodia at the bottom of the list in ASEAN.

The goal is making sure all Cambodians have at least 10 years of schooling, forming the basic building block for a much more productive workforce. Then we can talk about specialized vocational or tertiary education, and matching employee skills to employer needs.

At this stage, and based on interviews with Japanese firms operating in the Phnom Penh Special Economic Zone (PPSEZ), what employers are seeking is not necessarily “trained” labor, but “trainable” labor, as skills required are quite job-specific and usually provided on-site.

Agriculture to remain backbone of Cambodia’s economy

Other challenges include the elevated cost of electricity, one of the highest in Asia. Apart from the skills constraint, the cost and unreliable supply of power is the other key factor limiting industry’s progression up the value chain from simple assembly to production of parts and components. If the former is labor intensive, the latter is energy-intensive, and remains uneconomical at current tariffs.

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Agriculture, however, will remain the backbone of the country’s economy for years to come, and during the transition to the next income bracket. Most Cambodians continue to be employed in this sector – either directly or indirectly.

To further reduce poverty and inequality, the agriculture sector must become more productive. To do this requires better irrigation systems, more fertilizer usage, and easier access to high-yielding varieties of crops. The size of farms and variety of their produce should also be enhanced to exploit economies of scale and scope, respectively. Land reform will be essential here.

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Another option is to pursue agro-processing to raise value-addition. Agro-processing combines agriculture and manufacturing. We can see this in products like pepper, cassava or coffee, which add value along the supply chain and boost economic returns.

Cambodia is making good progress towards upper middle-income status by diversifying its economy. There is a lot of new investment from Japanese firms in the PPSEZ that is plugging it into regional supply chains for the first time.  This trend will only continue to grow in the future, creating good jobs for more of the workforce.

Cambodia must plan carefully to preserve economic gains for next generation

While agriculture will remain important for some time yet, there is no denying the long-term trend decline in its share of economic output, and the increasing shares of services and manufacturing. These structural transformations will require reskilling of the labor force to reduce adjustment costs and unemployment.

The challenges in the labor market extend further, however, and involve demographic transitions in a young population seeking productive employment; the much-vaunted demographic dividend will only be realized if the jobs are there to be filled.

These structural changes will also result in rising urbanization as rural-urban migration increases. This must be managed by better town planning to prevent urban slums and create livable cities. One only needs to look at how Phnom Penh’s infrastructure has been stretched over recent years to appreciate the magnitude and importance of this challenge.

Cambodia’s socio-economic achievements since the early 1990s peace settlement have been remarkable. But success brings with it new challenges.If Cambodia plans carefully for graduation from LDC status, it would ensure that the hard-won economic gains are preserved for the next generation.

Why Cambodia is turning its back on the West


September 10, 2017

Why Cambodia is turning its back on the West

opinion September 10, 2017 01:00

By Shaun Turton, Mech Dara
The Phnom Penh Post
Asia News Network

With China throwing its support behind premier Hun Sen, both are protecting each other’s interests

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Their Forebears were abandoned by the United States and its allies; The United States bombed the Cambodian countryside, as Nixon and Kissinger expanded the war, and in the name of democracy and human rights brought tragedy and hardship to the Cambodian people. When it suited American interests, US administrations from Kennedy to Obama (and Trump too) have not hesitated to let history repeat itself.

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His Excellency  Samdech Techo Hun Sen, Prime Minister of Cambodia

Cambodians under the leadership of Prime Minister Hun Sen have learned well; they are naturally cautious and circumspect; and  they are  now seeking new friends and strategic partners who respect Cambodia’s sovereignty and territorial integrity in their effort to build national resilience through sustainable development. The country has enjoyed peace, stability and strong economic growth for more than 2 decades and the way forward for the Cambodian people, in my view, is promising.

The Asian Development Bank has called Cambodia an “emerging tiger economy”.  From a Miracle by the Mekong, the Kingdom is a key member of ASEAN and a proud nation ready to take its place in the community of nations. As a witness to its progress for more than 25 years, I am very bullish.–Din Merican

By Shaun Turton, Mech Dara
The Phnom Penh Post
Asia News Network

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The Cambodian National Flag with the The Independence Monument in the Background, Phnom Penh

Its president imprisoned on a charge of treason and its existence under threat, the Cambodia National Rescue Party last week renewed its calls for the international community to step in and stop what’s widely seen as an all out assault on the Kingdom’s democracy.

But with China throwing its support behind the premier Hun Sen, the West’s statements of condemnation and concern, which have flooded in from embassies, NGOs and the United Nations in recent days, will have little impact, particularly in the absence of concrete measures, analysts said.

Building on a statement of support from China’s Foreign Ministry, senior Chinese diplomat Wang Jiarui met on Thursday with National Assembly President Heng Samrin to offer private assurances amid the mounting criticism, according to Samrin’s spokesman Sorn Sarana.

Jiarui, the former head of the Chinese Communist Party’s international liaison department and current vice chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), reaffirmed Beijing’s support following the late-night arrest of CNRP President Kem Sokha, Sarana said. He said the official, whose committee is described as a non-state organ that advises on state affairs, expressed the sentiment that “an obstacle for Cambodia is also an obstacle for China”.

“China is behind Cambodia to help and support,” he said, relating the discussion. “The success of Cambodia is also the success of China.”

 A representative from the Chinese Embassy in Phnom Penh did not respond to messages to verify Sarana’s characterisation of the discussion, but for analysts, China’s backing was hardly surprising given Hun Sen’s long drift into Beijing’s orbit.

 

Backed by more than $1 billion (Bt33 billion) in foreign direct investment and $265 million in overseas development aid, according to 2016 figures, Chinese support insulates the premier from external pressure, at least to a certain extent, analysts said.

Carl Thayer, a Southeast Asia expert at Australia’s University of New South Wales, said China had previously shown its willingness to supply military equipment and plug holes left by the withdrawal of Western aid. Cambodia, meanwhile, has repeatedly backed China’s position on the contested South China Sea.

“China will pick up the pieces if the US or other donor countries resort to sanctions or other punitive actions against Cambodia,” Thayer said, adding that nonetheless, the support was not a carte blanche endorsement of Hun Sen, who has ruled Cambodia for more than three decades.

“The message was subtle but clear. China will support Hun Sen under these conditions, but if Hun Sen cannot protect Chinese interests they will support a CPP leader who can.”

The premier himself has shown no signs he’s willing to cede power should his ruling Cambodian People’s Power lose next year’s election, announcing on Wednesday that he planned to rule for 10 more years.

Eleven months out from the crucial national ballot, the government has pursued what’s widely seen as a relentless crackdown against the opposition, independent media and civil society, culminating this week with the arrest of Sokha, who faces up to 30 years in prison on a “treason” charge for what officials say is a US-backed plot to topple the government.

A well-connected observer familiar with thinking inside the CPP said the government’s virulent anti-Americanism reflected a belief that the US and US-backed organisations were supporting the CNRP, as well as frustration over Washington’s reluctance to forgive war-era debt. Nevertheless, the observer, who requested anonymity because of the tense political environment, said the escalation against the US was a gamble.

He described anxiety in the CPP about the US’s recent announcement of visa restrictions for Cambodians, which came in response to Cambodia’s refusal to accept deportees as part of a controversial US programme to sends home long-term non-native residents who are convicted of a felony.

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Phnom Penh in the Land of Temples, Smiling People, and Wonder

The possibility of trade restrictions also worried many in the party, he said. The scrapping the EU’s “anything but arms” preferential trade arrangement, or the US’s zero tariffs for travel wares could have “devastating” economic consequences given European and American markets are vital to Cambodia’s almost $7 billion garment export sector. With the minimum wage rise in Cambodia making other countries in the region more appealing to manufacturers, lead ASEAN analyst for the Economist Intelligence Unit Miguel Chanco said such moves would be a stronger tool than aid cuts, which have long been threatened but without much impact.

However, in light of North Korea’s nuclear ambitions and the Myanmar military’s crackdown against ethnic Rohingya in Rakhine state – and considering the political upheaval in the US and EU – discussions of such actions were “unlikely” to feature high on the agenda, he said.

Simply put, the EU and the US have bigger domestic fish to fry. The former is dealing with the complexity of Brexit, while the latter is busy dithering on Donald Trump’s controversial domestic agenda,” Chanco said.

According to a government database, China last year provided about 30 per cent of Cambodia’s $1 billion overseas development aid budget, followed by Japan, which contributed 10 per cent, and is also second only to China for foreign direct investment.

Following Sokha’s arrest, the Japanese Embassy released a cautious statement calling on the ruling and opposition parties to “make efforts to create a suitable environment to realise a free and fair” election.

Deputy Asia Director of Human Rights Watch Phil Robertson urged Japan not to “soft-pedal”, and to use its central role at the UN Human Rights Council to take a strong position against threats to the legitimacy of next year’s election, noting Tokyo was a major supporter of preparations for the upcoming ballot and had led the UNTAC mission that staged Cambodia’s 1993 vote.

“I would take five statements of concern, and if I got something from Japan that was somewhat terse and tight and strong, I would match those up against the others,” Robertson said, noting Japan’s preference for closed-door diplomacy.

“Japanese critical statements are sort of like unicorns; you get a critical Japanese statement, it’s like, ‘Did I just see a magical creature?’”

A small glimpse of Japan’s behind-the-scenes courting of Cambodia emerged last month, when Hun Sen posted a video of a surprise birthday party organised in Tokyo by Prime Minister Shinzo Abe, complete with a personal rendition of “Happy Birthday” and a new set of golf clubs.

Paul Chambers, a Southeast Asia expert at Thailand’s Naresuan University, said Japan’s “jousting” with rival China would likely temper the strength of any public response, and the potential of punitive action.

“If Japan were to walk away from Cambodia, Tokyo would provide a vacuum which Beijing would only be too willing to fill,” Chambers said.

Noting Toyko had “little appetite for confrontation”, associate professor of diplomacy and world affairs at Occidental College, Los Angeles Ear Sophal said he saw little hope for anything “dramatic and coordinated” from the international community.

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A new Chinese-built bridge, on the right, spans the Tonle Sap River in Phnom Penh, running parallel to the bridge Japan helped construct in the 1960s.–Putting Words into Deeds is what counts.

“The last time anything serious happened in terms of aid suspension [1997], 100-200 people died,” he said, referring to the violent factional fighting in which Hun Sen ousted his royalist rivals from a coalition government.

“And, indeed,” he added, “China has already made a statement endorsing Cambodia’s actions.”

 

 

KayJay on ASEAN beyond 50


August 17, 2017

KayJay on ASEAN beyond 50

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As ASEAN celebrates its Golden Jubilee, it is opportune for us to take a step back and ask our people what they want of the regional bloc in the next 50 years before striving forward together as one community.

THERE has never been a better time to examine ASEAN as a regional bloc, how far we have come and where we are heading next. It has been exactly 50 years since ASEAN was formed and since then, this regional bloc has never been stronger and more prominent in the global stage.

Malaysia will always be a pro-active member of ASEAN and other multilateral organisations. Our success story as a nation has been predicated upon the stability provided by a multilateral framework. Malaysia as a country is one that reaches beyond its potential and one that has always set its sight on the distant future. For that reason, we must be integrated into a region that is greater than the sum of its parts.

The past is prologue while the future is ours to shape. While taking lessons from the past, we must continue the work of building the future.

Immediately after the 1969 riots, Malaysia embarked on the New Economic Policy, which was to be a new deal for Malaysia in eradicating poverty and rebalancing the economic distribution in the country. Thirty years later, that was followed by Vision 2020, which would leapfrog Malaysia to a country that is modern and developed.

As we are nearing 2020, it became imperative for us to ask ourselves “what’s next?”. The world in 2050 will be much different from the world today – what will guide us to face this future?

This is I have been tasked to reach as many youths as possible to get their aspirations of what they want to see the nation be in the future, to be recorded in a massive plan called the National Transformation 2050 (TN50).

TN50 is an initiative to plan for the future of Malaysia in the period between 2020 and 2050. From the vision of becoming a developed nation, we should strive to be among the top countries in economic development, citizen well-being and innovation.

For this, I’ve spent the first six months of 2017 traveling through all corners of Malaysia, reaching out to more than one million youths and what they aspire for. Most of them coalesce around wanting a future that is fair, sustainable, competitive, united and happy.

What that means is we want a future that goes beyond the old measurement of GDP growth as an indicator of success to one that looks at well-being more comprehensively. One that looks into wealth and income inequality, healthcare, access to quality education, environmental protection, a good standard of living, integrated public transport, sporting achievement, civic consciousness and greater investments into scientific research, among many others.

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With shared dreams come shared responsibility – and nothing binds a society better than having a common weight on their shoulders. Similarly, as ASEAN heads towards 2050, it is opportune for us to take a step back, ask our people what they want of ASEAN in 2050 and then strive forward together as one community.

The challenge of automation and robots, the need for a differently-skilled and adaptive workforce, the breakdown of societal fabric into smaller family units, the shifting powerhouses in global trade and many other challenges await us in the near horizon.

Though individual countries are looking at these in their own way, there are many areas we can embrace together, leveraging on individual strength to compensate for individual weaknesses, so ASEAN can future proof the region and truly become a global powerhouse in the next 33 years.

What would we like ASEAN to be in the next decade, or five decades? The current generation entrusted with the responsibility to shape the future of ASEAN would like to see an ASEAN that will be able to realise all of its potential. An association consisting of 10 sovereign high-income nations fully developed with prosperity for all. It is indeed a tall objective, but not an impossible one, for ASEAN is a work perpetually in progress passing from one generation to the next, a sacred trust to be upheld.

I am an optimist on the future of ASEAN and I am a firm believer in its role as the catalyst for peace and prosperity in this region. Our fate in ASEAN has been pre-determined by our geography. As the saying goes, we can choose our friends but we cannot choose our neighbours.

The success of one nation in the region will have a positive bearing on all, while the failure of any will have a calamitous effect on all. ASEAN’s future is in its togetherness. We can either leverage on our collective strengths to soar together towards greater heights or go separately to face a more dangerous and challenging world.

Economically, we must continue to build upon the ASEAN Economic Community. More integration is needed, not less. By all means draw lessons from Brexit but the right ones not the wrong ones. We must be serious to further bring down barriers to trade both tariff and non-tariff.

We must work to better integrate our economy and welcome investments, ease the process of doing business, and protect intellectual property while better leveraging our various competitive advantages. Healthy competition coupled with pragmatic cooperation must be the way forward.

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ASEAN leaders must focus on good governance, fight corruption, end crony capitalism and work for peace, stability and development with equity. Make ASEAN relevant to the lives of Southeast Asians. That means more action and less talk.–Din Merican

We must work to make ASEAN more relevant to the needs of members and the challenges that they are facing, be it political, security or economic. ASEAN will continue to thrive, despite its many challenges, if every member perseveres to make it a national priority; for the national interest of each member could only be advanced effectively through ASEAN collectively.

The first 50 years is coming to an end, so let us now turn the work at hand to the next 50 years dedicating it to the future generation. Let us continue to build on the dreams of the founding fathers of ASEAN who started a journey so improbable that they themselves in their wildest imaginations never could have thought how successful it would eventually be.

That 50 years later, we are marveling at their collective wisdom in every capital of a united ASEAN is the most fitting tribute of all to this greatest and most enduring of endeavours.–by Khairy Jamaluddin

Khairy Jamaluddin is the Youth and Sports Minister. The views expressed here are entirely the writer’s own.