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Cambodia
is one of the world’s poorest nations. In 2001 its total gross domestic product
(GDP) was $3.4 billion, yielding a per capita GDP of just $280, among the lowest
in the world. Even before being plunged into civil conflict in the 1970s,
Cambodia lacked significant industrial development, with most of the labor force
engaged in agriculture. The country was self-sufficient in food and produced
exportable surpluses of its principal crops of rice and corn. In spite of
relatively low yields and a single harvest per year, Cambodia annually exported
hundreds of thousands of tons of rice. The civil war from 1970 to 1975, the
Khmer Rouge regime from 1975 to 1979, and the Cambodia-Vietnam War from 1978 to
1979 virtually destroyed Cambodia’s economy. By 1974, under wartime conditions,
rice had to be imported, and production of Cambodia’s most profitable export
crop, rubber, fell off sharply. The civil unrest also disrupted Cambodia’s
fledgling manufacturing industry and severely damaged road and rail networksIn
1975 the newly installed Khmer Rouge government nationalized all means of
production in Cambodia. Money and private property were abolished, and
agriculture was collectivized (ownership was transferred to the people as a
group, represented by the state). The Khmer Rouge Four-Year Plan, a utopian
document drafted in 1976, envisaged multiple plantings of rice and a vastly
expanded irrigation system. The plan aimed to increase income from exports of
rice and other products and to use this income to buy machinery with which to
industrialize the country. The Four-Year Plan was poorly thought out, brutally
enforced, and unsuccessful. Rice production rose slightly, but between 1976 and
1978, hundreds of thousands of people died from malnutrition, overwork, and
mistreated or misdiagnosed diseases. The Khmer Rouge executed hundreds of
thousands more people whom they judged to be enemies of the regime. The
atrocities of the Khmer Rouge period decimated Cambodia’s labor force.After the
Khmer Rouge were overthrown in early 1979, the government’s grip on agricultural
production loosened, and millions of Cambodians attempted to resume their lives
as subsistence farmers. By the mid-1990s Cambodia once again achieved
self-sufficiency in rice production and began to export small quantities of
rice. The country’s infrastructure improved gradually in the 1990s, largely due
to massive infusions of foreign assistance. Other sectors of the economy were
less fortunate, however. By 1995 the country’s economy as a whole was performing
at only 40 to 50 percent of its pre-1970 capacity. For many visitors to the
country, Cambodia’s poverty is masked by the apparent prosperity of sections of
Phnom Penh.
Labouront
In 2001 Cambodia had a labor force of 6.5 million. Agriculture was the largest
employer, engaging 75 percent of the workers. It is followed by services (21
percent) and industry (5 percent). Underemployment in urban areas is high, and
working conditions in developing industries, such as clothing manufacturing, are
poor. Efforts to unionize factory workers have encountered significant
opposition from factory owners.
Agriculture and Fishery:Agriculture is
the largest sector of Cambodia’s economy, contributing 37 percent of the GDP in
2001. Rice is Cambodia’s most important crop and the staple food of the Khmer
diet. More than one-half of cultivated land—much of it of poor quality—is
planted in rice. Rubber, Cambodia’s other important export crop, is grown in
plantations in the eastern part of the country. Corn, cassava, soybeans, palm
sugar, and pepper are also grown commercially, while cucumbers and fruits,
including mangoes, bananas, watermelons, and pineapples, are raised for local
consumption. Chicken and pigs are widely domesticated, while cattle and water
buffalo are used for agricultural work.Freshwater fish are an important
ingredient of the typical Cambodian diet. Most of the annual catch is consumed
locally. Important types of fish caught include perch, carp, lungfish, and
smelt. The Tonle Sap is the most concentrated source of freshwater fish in
Southeast Asia. Commercial fishing in the Gulf of Thailand, on the other hand,
is relatively undeveloped.

Mining and Manufacturing: In 2001 industry, primarily manufacturing, contributed 22 percent of Cambodia’s GDP. Although mining is not a major industry, Cambodia produces limited quantities of zircons, sapphires, and rubies, and exploits commercial deposits of salt, manganese, and phosphate. In the early 1990s Cambodia began exploring for petroleum in the Gulf of Thailand, but Thailand and Vietnam, who claim offshore areas of the gulf, have contested the exploration projects.Cambodia’s manufacturing base was severely damaged in the civil war of the 1970s and was later mismanaged under the Khmer Rouge. Manufacturing activity recovered slowly in the 1980s and 1990s but still represents a relatively minor sector of the national economy. Manufactured products include bricks, tile, cement, processed rubber, textiles, clothing, and furniture.Services :Services, especially small-scale commercial activities, account for 41 percent of Cambodia’s GDP. Since the late 1980s Cambodia has encouraged tourism as an important source of foreign exchange, and the annual number of visitors rose from less than 1,000 in 1987 to 5,064,000 in 2000. Tourist spending in 2000 was 228 million U.S dollars. Most tourists are from Asian countries, and popular destinations are Phnom Penh and the ruins of Angkor. Foreign Trade Before the civil war, Cambodia’s principal exports were rice, rubber, and corn. In 1971 these were valued at $60 million. Exports fell sharply under wartime conditions and later under the Khmer Rouge. Cambodia’s export economy recovered slowly in the 1980s and more rapidly in the 1990s, when the major exports were rubber, timber, and soybeans. Trade in forest products continued after the government ban on logging in 1995, but by 1997 the value of forest product exports dropped by one-half. Total exports in 2000 were valued at $780 million. Vietnam, Thailand, the United States, Singapore, and China purchase most of Cambodia’s exports.Cambodia’s primary imports have always been manufactured goods, such as textiles, motor vehicles, machinery, and processed foods. In 1996 imports were valued at $1.2 billion. Thailand, Singapore, Vietnam, and Japan supply most of the goods that Cambodia imports.Currency and Banking Cambodia’s unit of currency is the riel, consisting of 100 sen. The value of the riel shrank from 700 riels per U.S.$1 in 1991 to an average of 3,916 riels per U.S.$1 in 2001. Currency is issued by the National Bank of Kampuchea, established in 1980. There are relatively few private banks in Cambodia. Most of them are foreign-owned banks operating in Phnom Penh and other
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