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Cambodia Economy

At the time of the Paris Peace Accord Cambodia?s economy was in ruins. Decades of turmoil had devastated the country?s primary industries of agriculture, forestry and fishing and inflation was running rampant.
Harvest (Min Tourism)


At the time of the Paris Peace Accord Cambodia?s economy was in ruins. Decades of turmoil had devastated the country?s primary industries of agriculture, forestry and fishing and inflation was running rampant. As aid from the former Soviet Union dried up, Cambodia began to replace Soviet-style central economic planning with reformist economic policies embracing the market, foreign investment, incentives and private ownership.
The effects of these reformist economic policies began to be felt in the wake of the UN-supervised general election of 1993, when foreign investment started to flow into the country. Since that time inflation has declined, rice exports have increased and the service sector has developed significantly. However, whilst Phnom Penh, Siem Reap and to a lesser extent Sihanoukville now display many signs of new wealth, this has yet to filter through to the rural areas, where economic activity continues to be very basic.
PP Shopping centre (Tim Doling)

As it enters the 21st century Cambodia remains one of the world?s least developed nations, with limited natural resources and a heavy dependence on foreign aid.
Extensive placement of landmines in arable areas continues to restrict land usage, hindering the government?s efforts to develop the agricultural economy. Economic growth also continues to be hampered by basic infrastructural problems such as inadequate roads, inefficient communications, deficiency of power, machine spare parts and raw materials, and most important the acute shortage of trained technicians and skilled workers.
 
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