A Cambodian Perspective on Lancang-Mekong Cooperation Initiatives: Opportunities, Challenges, and Future Directions

Abstract

The reign of terror that once enveloped Cambodia is over. Since 1998, the country has enjoyed peace, stability, order, and buoyant economic growth. Its engagement with ASEAN, good relations with major powers such as China, India, Japan, the EU, South Korea, Russia, and the United States, and its market economy-driven policies have resulted in substantial inflows of foreign direct investment.
Today, Cambodia is moving towards becoming a lower middle-income nation. Given its buoyant economy, which has been expanding at an average rate in excess of 7 percent in real terms for the last two decades, Cambodia is, according to the Asian Development Bank, an emerging tiger economy in ASEAN with a projected growth of 7 percent to 7.5 percent in 2016, compared with the region’s average of below 5 percent. This growth has been driven by the solid performances of four industries: garment manufacturing, tourism, paddy and milled rice, and construction.
The poverty rate fell from 50 percent to below 20 percent between 2007 and 2012 (Asian Development Bank, 2016). The development record shows progress toward the realization of the Royal Government of Cambodia’s early aspiration: “By the end of the first decade of the 21st century, Cambodia is to reclaim full ownership of its destiny, while becoming a real partner in regional and global affairs and a nation of genuine freedom and being free from poverty” (Royal Government of Cambodia, 2013).
Cambodia is endowed with abundant natural resources including oceans, rivers, trees, mountains, and good weather. Additionally, the country is absent of earthquakes and other natural disasters, except seasonal storms and floods. On the manmade side, Cambodia is rich with national-cultural icons comprising aged Buddhist monasteries and ancient-ruined temples like Angkor Thom (Bayon Temple), Angkor Toch (Angkor Wat) Temple, Preah Vihear Temple on the top of Dong Rek Mountain, Banteay Srey Temples, and other ruins throughout the length and breadth of the country. It is no wonder why Cambodia is increasingly known as the Kingdom of Wonder by many tourists.