|The global slowdown is hurting Cambodia's tourism industry, with fewer visitors in late 2008 than in the same period of 2007. Image credit: flydime at Flickr under a Creative Commons license.|
It's been a couple of months since the World Bank prepared the "perfect storm" report on the recent economic developments in East Asia. Our view at the time was that the crisis would reveal some of Cambodia's economic vulnerabilities – i.e. its lack of export diversification and its extreme reliance on foreign investment for growth. I think that this is an important lesson from our recent analysis on growth in Cambodia (more on this later).
Our projections for 2009 at the time were just below 5 percent GDP growth. This is consistent with the projections of the Government, the IMF, the Asian Development Bank, and an International Labor Organization (ILO) report on the impact of the crisis released yesterday. The Economist Intelligence Unit has a more pessimistic projection of 1 percent.
So who is right?
|The country is often dismissed as the Pacific's failed state, yet conversations with community members and officials reveal clear visions of what a state can provide in terms of services and a role in community life.|
The Gizo airstrip, reportedly built for a visit by Her Majesty Queen Elizabeth II in the 1970s, occupies the entire length of the island of Nusatupe – as a quick look at Google Maps confirms. It is located picturesquely, if ultimately somewhat inconveniently, about two kilometers from the provincial capital island of Gizo. As I was beginning to wonder how I was going to make my way to Gizo, a team from the Government’s Ministry of Agriculture and Livestock fortunately pulled up in an outboard motorboat.
In December, just three months after my arrival in the Solomon Islands to serve as the World Bank’s country manager, I chose Western Province for my second trip out of Honiara. One of the main goals in my first year on the job is to visit each of the nine provinces to begin gaining some understanding of this small but complex country.
|The flooding has resulted in mass cancellation of tourist travel plans, which will flow through to job losses, business failures and ultimately affect families already suffering from the direct impact of the floods.|
So far, at least 11 people have been reported killed, from drowning and mudslides, though given the isolation of many villages, this number is probably much understated.
As would be expected the immediate impact is widespread damage to infrastructure. Homes, public buildings and businesses have been destroyed with around 10,000 people living in evacuation centres. Roads and bridges have been washed away effectively cutting off access for emergency workers and rescue teams. Electricity and water supplies have been cut and food supplies destroyed, washed away or still underwater.
|Only pedestrians and bikes are allowed on Pingyao's main street.|
Jennifer Conlin of The New York Times reported recently on a global trend already sweeping through Asia and the Pacific -- the green hotel. It was just a matter of time before environmentally-friendly practices and the business “bottom line” struck up what looks to be a promising long-term relationship. Add growing consumer interest, combined with the cost s