Cambodia’s Political Turmoil Turns Garment Industry Inside Out
With governments in Cambodia’s export markets threatening sanctions as Phnom Penh backslides on democratic reforms, garment workers worry about losing their jobs.
Sangkat Preak Leap, Phnom Penh Of Cambodia’s 15.7 million people, 800,000 work in the garment industry, which employs more than 85 percent of all factory workers. Most of the garment workers are young women who left their families in the provinces for big-city factory work, which allows them to regularly send home needed cash.
Today, that hard-won stability faces disruption as Cambodia backslides from more than two decades of democratic reform that contributed to the growth of the export-driven garment industry.
|By the numbers||National|
The government of Prime Minister Hun Sen, in power since 1985, has dissolved the main opposition party which had long backed higher wages for garment workers, jailed its leader – who took over from the standard-bearer forced into exile – and shut down the independent press in the run-up to the country’s sixth general election on July 29. The ruling party, which has been courting the garment workers, is expected to win.
In response to Hun Sen’s prevote actions, the European Union has threatened to withdraw Cambodia’s preferential tariff-free export status, Generalised Scheme of Preferences.
The EU, which is closely monitoring human rights and the political situation before the election, imports more than 40 percent of the garments Cambodia produces.
If those threats become reality, among the hardest hit will be women attracted to the security offered by the garment industry, women like Khut Samphors, 25, Ly Reaksmey, 23, and Ouk Dalin, 32, and their families.
Each woman started working in garment factories in her mid-teens.
Each is a mother responsible for the support of elderly parents, some of whom care for the women’s babies and toddlers back home.
“I send about $300 a month to my parents,” said Khut Samphors, who with her husband has a combined monthly income of $400.
Each is worried because, as Ouk Dalin told VOA Khmer: “I don’t really know what is going to happen.”
“I send about $300 a month to my parents,” said Khut Samphors, who with her husband has a combined monthly income of $400. (Khan Sokummono | VOA Khmer)
Um Dina, general secretary of the Coalition Free Trade Union of Women’s Textiles, has a sense of what the future may hold.
“Losing [preferential status] would mean fewer or smaller orders from buyers,” she told VOA, “and that means factory owners will have to reduce working hours and lay off hundreds of workers.”
Cambodia’s garment industry developed in the mid-1990s, after the remaining forces of the Khmer Rouge regime signed a peace accord in 1991. The agreement ended a prolonged civil war that began in the aftermath of the Khmer Rouge era, during which 1.7 million people died.
Peace was followed by stability, which sprang in part from Cambodia’s 1994 Law on Investment establishing what the U.S. State Department described as “an open and liberal foreign investment regime.”
Garment industry investors from Hong Kong, Taiwan, Malaysia and Singapore flocked to Cambodia to take advantage of the country’s “quota-free access to the U.S. and EU markets and, secondarily, its relatively low wage rates,” wrote Sithong Soeng and Vijit Supinit in The Analysis of Foreign Direct Investment in Textile and Garment Industries in Cambodia.
By 1998, as industry wages in China and Taiwan were escalating at double-digit annual rates, the minimum wage in Cambodia was $40 a month.
Today, as it reaffirms its reputation as a political battleground, Cambodia’s garment industry accounts for 46.6 percent of the nation’s total exports by 2017 (PDF).
The voting force of garment workers has long bedeviled the Hun Sen government and the Sam Rainsy Party (SRP), eponymously named after the opposition leader now exiled in France, aligned with garment workers over 20 years ago in their quest for better wages and recognition.
That support paid off: The SRP won 15 of the 123 seats in the National Assembly in the 1998 elections, 24 seats in the 2003 elections, and 26 seats in the 2008 elections. The SRP won two seats in the 2006 Senate elections, and nine new Senate seats in 2012. By the July 2013 general election, after the SRP had merged with the Human Rights Party to form the Cambodia National Rescue Party (CNRP), the opposition party won 55 of the 123 seats in the National Assembly.
That rebuke of Hun Sen’s ruling Cambodian People’s Party (CPP) stemmed, in part, from the opposition’s continued efforts to raise the minimum wage. The CNRP’s alignment with the garment workers did not go unnoticed.
On Friday, January 3, 2014, at a Phnom Penh demonstration for raising the minimum wage, military police killed at least five garment workers gathered along Veng Sreng Boulevard.
Khut Samphors saw the demonstration, but “I didn’t participate,” she told VOA. The minimum wage has risen from $61 a month in 2012 to $170 a month this year, and Hun Sen has been making regular appearances at garment factories, making speeches that hint at a $230-a-month minimum wage by 2023.
TOP: Cambodia garment workers throw stones at riot police during a strike near a factory on the outskirts of Phnom Penh, on Jan. 3, 2014. (Heng Sinith | AP) ABOVE: A man tries to protects himself as security forces beat him during the International Workers' Day rally at Freedom Park in Phnom Penh on May 1, 2014. (Reuters)
Each day, Khut Samphors estimates she sews 1,000 seams, her role on an infant clothing production line owned by U.D.S. Garment Co., Ltd.
The finished products sell outside Cambodia for between $70 to $80 apiece, according to the hang tags affixed before shipment. Before overtime, Khut Samphors earns about $200 a month.
Under Cambodia’s National Social Security Fund (NSSF), Khut Samphors and her co-workers are entitled to maternity leave, 28 public holidays and up to six months of paid sick leave with a certified notification from a doctor (PDF). Hun Sen’s government has increased the required amount businesses must pay into their workers’ NSSF funds.
Although those benefits meant that Khut Samphors had three months of maternity leave after her son’s birth, garment workers want more as the benefits, which appear good on paper, aren’t always a given.
Ly Reaksmey, a garment worker in Kampong Speu, powered through her pregnancy and stayed on the line until just before she delivered her first child in March. She said she was afraid of taking frequent sick leave because she, her husband and her sister owed payments to a microfinance institution for a motorcycle and home renovations that transformed their wood and leaf hut into a brick home. If she had lost her job for not making her share of payments on the loan, Ly Reaksmey told VOA the family “would lose everything.”
Ouk Dalin, who works at the Can Sports Shoes factory in Kampong Chhnang, is the new mother of a boy, her second child. She’s on a three-month maternity leave, funded by a one-time $360 payment from her employer. Her husband also works in the garment industry, and Ouk Dalin says the family is doing well financially. They do not owe anything, and grow enough rice for household consumption.
Like Khut Samphors and Li Reaksmey, Ouk Dalin says she is “satisfied” with increases in the minimum wage and Hun Sen’s push for reforms in their industry. The women all say they know there’s a need for stronger, and wider, regulation and laws that hold employers accountable for violations.
If the government continues to reform the garment industry, Ouk Dalin believes “the livelihood of the workers will actually get better.”
But they’re seeing the impact the mere threat of sanctions can have in a sector already battered by lessening retail demand and increasing regional competition. By April, at least 20 factories had closed, or were retreating from Cambodia, said the union’s Um Dina, who refuses to attend events where Hun Sen speaks to workers.
Prime Minister Hun Sen, who has stepped up his visits to garment factories as he woos workers, visits a garment factory outside Phnom Penh, on Aug. 30, 2017. (Heng Sinith | AP)
In late March, the American Apparel & Footwear Association and the U.K. group, Ethical Trading Initiative, wrote Hun Sen, warning that Cambodia’s 2016 Trade Union Law, which places restrictions on freedom of association and union rights, made “Cambodia an unattractive and expensive place to do business,” according to the Phnom Penh Post.
Although Um Dina says she “supports what the government has been doing” and what it says it intends to do to improve workers’ lives, “it’s not enough.” A $4.6 million government fund to compensate workers from nine closed companies is paying as little as $41 in severance for nine years of labor.
Whether or not the shutdowns are inherently linked to the possibility of sanctions remains unclear. But Um Dina continues to believe Cambodia’s political environment matters to the garment industry and the hundreds of thousands of people who rely upon it.
“When the political situation gets heated, we see factories are closing,” she said. “Political stability is needed to attract investment.”
Cambodia (1953 - 2018)
July 30, 2018
International community calls Cambodia's vote a “setback to democracy”
The United States says it will take further action against the government of Cambodia following a landslide victory for the ruling party. The European Union, Canada and Australia also condemn the election.
July 29, 2018
Cambodia set to become one-party state
Prime Minister Hun Sen’s ruling party says it now controls all 125 seats in the National Assembly after an election slammed by rights groups as a sham due the lack of a viable opposition,
July 29, 2018
Polls open in Cambodia's sixth national election
Cambodians head to the polls for an election from which the government has banned the only viable opposition party.
July 28, 2018
Government blocks 15 independent news sites over poll “disruption”
The Cambodian government orders internet service providers (ISPs) to block the websites of 15 news websites of independent outlets including Voice of America for two days before and during the country’s election.
July 27, 2018
Government fines former opposition officials over “clean finger” campaign
Five former CNRP officials in Battambang province are found guilty of obstructing the vote and fined $2,500 each over a Facebook post supporting an election boycott campaign.
July 27, 2018
Election campaign ends as Cambodians prepare to vote
Cambodian political parties wind up their campaigning ahead of a general election expected to be an easy victory for the ruling party.
July 25, 2018
U.S. House passes Cambodia sanctions bill
U.S. House of Representatives passes the Cambodia Democracy Act, paving the way for sanctions to be imposed against members of Prime Minister Hun Sen’s inner circle.
July 25, 2018
Japan opts out of sending election monitors to Cambodia
Japan says it won't send election monitors to Cambodia for the July 29 vote even though Tokyo, a major donor to the Southeast Asian nation, has sent observers to many previous elections.
July 22, 2018
Cambodia threatens legal action against non-voters
The government orders fines or even the arrest of people who uploads images on social media as part of an opposition-organized campaign to boycott the vote.
July 10, 2018
Cambodian government institutions face cyberattack
Cyberattackers are caught hacking key Cambodian government institutions in what is strongly believed to be a coordinated Chinese government assault ahead of the July 29 national elections, according to an investigation by FireEye, a U.S. cybersecurity firm.
July 7, 2018
Election campaign kicks off
Electioneering kicks off for the July 29 national elections. Twenty political parties are registered to participate.
June 27, 2018
50,000 observers to monitor July election, NEC says
Cambodia’s National Election Committee (NEC) says 50,000 observers -- some from China, Myanmar and Singapore -- will monitor July 29 election.
June 20, 2018
U.N. calls political climate in Cambodia “not conducive to a free and fair election”
At the U.N. Human Rights Council, New Zealand and other nations issue a statement calling on the Cambodian government to reverse course, saying the current political environment in Cambodia is not “conducive to holding free, fair and genuine national elections.”
June 12, 2018
U.S. sanctions Hun Sen’s top bodyguard
United States imposes sanctions on Hing Bun Heang, the head of Hun Sen’s bodyguards, citing human rights abuses.
May 28, 2018
Government forms task forces to monitor online content ahead of July election
The government issues an order that it will work with telecommunication firms to monitor and control online news deemed to cause “instability,” as part of the government’s crackdown ahead of July 29 election.
May 24, 2018
NEC sets controversial Journalist Code of Conduct on election coverage
Cambodia's National Election Committee (NEC) issues a controversial code of conduct for journalists covering the July 29 election. It includes a ban on asking detailed questions about results.
May 15, 2018
20 political parties registered
Despite dissolution of CNRP, 20 political parties, including the ruling CPP, register to participate in July 29 election.
May 15, 2018
Election monitoring group backs out of observing July election
The respected Committee for Free and Fair Elections in Cambodia (Comfrel) says it will not observe and monitor the July election, citing the Cambodian government’s accusation against the group and other organizations in promoting a “color revolution” in Cambodia.
May 9, 2018
U.N. calls for release of Kem Sokha
The U.N. Working Group on Arbitrary Detention and the International Federation for Human Rights issues a statement demanding the immediate release of Kem Sokha, leader of the dissolved opposition CNRP party, calling his imprisonment “inhumane” and “shameful.”
May 5, 2018
Phnom Penh Post sold
The country’s last remaining independent English-language newspaper, the Phnom Penh Post, is sold to a Malaysian investor whose company has links to Hun Sen.
May 4, 2018
PM Hun Sen threatens legal measure against election boycott
Prime Minister Hun Sen describes Sam Rainsy’s call for an election boycott as “a violation of electoral law.”
April 8, 2018
Sam Rainsy calls for July election boycott
Former CNRP leader Sam Rainsy calls on his supporters and voters to boycott the July election.
Sam Rainsy launches the CNRM
Former CNRP president Sam Rainsy launches the Cambodia National Rescue Movement (CNRM), which he envisions as keeping the CNRP “alive” from abroad. He says it “cannot be dissolved” because it is not registered with the government in Cambodia. Sam Rainsy said the movement's plan includes ensuring free and fair elections in Cambodia in July.
Nov 16, 2017
Supreme Court orders CNRP dissolution
The Supreme Court dissolves the CNRP, a move that causes some opposition members to join Hun Sen's ruling CPP, while opposition leaders flee the country or are forced out of politics.
Oct 3, 2017
Mu Sochua flees country
Opposition lawmaker Mu Sochua flees Cambodia after Prime Minister Hun Sen threatens to arrest opposition politicians in the wake of Kem Sokha's arrest in September.
RFA ceases operations in Cambodia
Radio Free Asia ceases operations in Cambodia after nearly 20 years, citing the government’s crackdown on media. Dozens of radio affiliates in Cambodia that sold airtime to RFA and VOA are shut down, with the government citing licensing issues. Other remaining licensed radio affiliates stop broadcasting RFA and VOA content.
Sept 4, 2017
Cambodia Daily newspaper shuts down
The independent Cambodia Daily newspaper announces it will cease operations in Cambodia after 24 years when it is slapped with a $6.3 million tax bill, which its publishers said was politically motivated and impossible to pay.
Sept 3, 2017
Kem Sokha arrested
Opposition leader Kem Sokha is arrested at his Phnom Penh home for alleged treason. The government accuses him of conspiring with the U.S. to bring down the Cambodian government. Prime Minister Hun Sen warns the CNRP not to defend Kem Sokha at the risk of being dissolved.
Aug 23, 2017
National Democratic Institute halts operations
The Cambodian government forces the U.S.-funded National Democratic Institute to halt its operations in Cambodia, saying the group is not legally registered.
July 10, 2017
National Assembly bars parties from affiliating with criminals
The National Assembly passes bill barring political parties from having any formal affiliation with convicted criminals.
Fourth commune council elections
The CPP wins the majority of seats, but loses ground to the CNRP.
Kem Sokha succeeds Sam Rainsy
Kem Sokha succeeds Sam Rainsy as the CNRP president.
Feb 11, 2017
Sam Rainsy resigns from CNRP
Sam Rainsy, the self-exiled leader of the CNRP, resigns in an attempt to save the party from dissolution after Prime Minister Hun Sen threatens to change the law to enable the government to dissolve parties with officials who have committed criminal offenses.
Dec 2, 2016
King Sihamoni pardons Kem Sokha
King Norodom Sihamoni pardons Kem Sokha, as requested by Prime Minister Hun Sen.
Sept 9, 2016
Kem Sokha sentenced to five months in prison
Phnom Penh Municipal Court sentences Kem Sokha to five months in prison over a case involving prostitution charges that are believed to be politically motivated. Kem Sokha does not appear in court.
July 10, 2016
Government critic Kem Ley killed
Kem Ley, a well-known political activist and government critic, is shot dead in broad daylight at a petrol station in central Phnom Penh, in what police say is a personal dispute over money, a claim his wife denies.
Kem Sokha in hiding
Kem Sokha goes into hiding at the CNRP headquarters to avoid arrest after being accused of procuring a prostitute.
Five officials arrested for alleged involvement in the case against Kem Sokha
Four officials with the human rights group Adhoc, as well as the deputy secretary-general of the National Election Committee, are arrested for involvement with the alleged prostitution case against Kem Sokha.
Nov 16, 2015
Sam Rainsy stripped of position, immunity
The government strips Sam Rainsy of his lawmaker status and immunity while the opposition leader is traveling outside Cambodia. The move paves the way for arresting him in connection with a defamation case.
Mob beats two CNRP lawmakers
Pro-government mob beats two CNRP lawmakers in front of the National Assembly; the mob demands that National Assembly Vice President Kem Sokha step down.
July 13, 2015
National Assembly OKs crackdown on civil society groups
Cambodia's National Assembly approves a controversial law that critics say gives authorities sweeping power to crack down on civil society groups challenging the government.
Bipartisan election committee formed
An overhauled National Election Committee, created by bipartisan agreement, moves to spearhead electoral reform.
July 22, 2014
CNRP, Hun Sen strike deal
The CNRP strikes deal with Prime Minister Hun Sen, ending yearlong boycott of parliament.
July 16, 2014
Opposition leaders charged with 'insurrection'
The Cambodian government charges six opposition politicians with leading an “insurrection” after a clash with security forces that prevented opposition supporters from rallying in a public park.
Military police crack down on CNRP
Military police crack down on CNRP and garment worker protest, ending months of street demonstrations that leave at least four people dead.
CNRP supporters protest election results
The CNRP and its supporters hold mass protests in Phnom Penh over the contested election results, calling for Hun Sen’s resignation and an election restaging.
July 28, 2013
Fifth national elections
Cambodia holds its fifth national elections, and the opposition CNRP wins 55 of 123 seats in the National Assembly. The CPP wins the remaining 68 seats. The CNRP rejects the results and launches a high-profile boycott of parliament.
Sam Rainsy returns ahead of elections
After King Norodom Sihamoni pardons Sam Rainsy at Hun Sen’s request, the opposition leader returns to Cambodia days before the national elections.
Oct 15, 2012
King Sihanouk dies
King Norodom Sihanouk dies of a heart attack. He was 89 years old, and had spent most of his time after abdicating in 2004 outside Cambodia, favoring Beijing and Pyongyang.
July 17, 2012
CNRP was established in Manila
Top officials from the SRP and HRP meet in Manila to finalize their merger into a new party: the Cambodia National Rescue Party (CNRP).
Third commune elections
Cambodia holds third commune elections and the CPP wins 61.8 percent of communes.
Sam Rainsy flees Cambodia
Sam Rainsy flees the country again, facing charges of disinformation and falsifying maps after criticizing the government’s handling of the Vietnamese border demarcation.
CPP wins majority in national elections
Hun Sen's CPP wins a majority of votes in the national elections.
Kem Sokha establishes HRP
Kem Sokha, who founded the human rights organization Cambodian Center for Human Rights in 2002, establishes the Human Rights Party (HRP).
Second commune elections
Cambodia holds its second commune elections. The CPP wins 98.2 percent of communes, while the SRP wins 1.7 percent.
FUNCINPEC ousts Ranariddh
The royalist FUNCINPEC party ousts Prince Ranariddh as president following an accusation by Hun Sen that the prince was appointing unqualified individuals to political positions.Ranariddh was sentenced by the lower court to 18 months in prison and fined $150,000 for alleging breach of trust for buying land with $3.6 million taken from the sale of FUNCINPEC headquarters.
Ranariddh resigns, flees to France
Prince Ranariddh resigns as president of the National Assembly after Hun Sen fires then-Co-Minister of the Interior Norodom Sirivudh and Co-Minister of Defense Nhiek Bun Chay. Ranariddh flees to France.
Sam Rainsy receives royal pardon
Rainsy returns to Cambodia after months of exile to avoid imprisonment on a defamation conviction over his criticism of the government’s border policy with Vietnam. He joins with the CPP to change the electoral law to require a simple majority rather than a two-thirds majority, leaving the royalist FUNCIPEC party less important in the coalition government.
Under pressure, king signs border treaty
Hun Sen threatens to abolish Cambodia’s monarchy as King Sihamoni delays in signing a controversial border treaty with Vietnam, Cambodia's historic enemy. The king agrees to sign the treaty.
Norodom Sihamoni becomes king
Norodom Sihamoni succeeds his father King Norodom Sihanouk after a surprise abdication. Prime Minister Hun Sen and National Assembly Speaker Prince Norodom Ranariddh endorse Sihamoni.
July 27, 2003
CPP wins national elections
Hun Sen re-elected as prime minister.
Feb 3, 2002
First commune elections held
Cambodia holds its first-ever commune elections. The CPP wins a majority of seats on local administrative bodies known as commune councils, and thus appoints the majority of commune chiefs.
Hun Sen and Ranariddh agree to form a coalition government
Hun Sen and Ranariddh agree to form a coalition government, allowing Hun Sen to remain as the prime minister and Prince Ranariddh to become the president of the National Assembly. FUNCINPEC’s agreement with CPP left the SRP as the country’s main opposition party.
July 26, 1998
CPP wins national elections
Hun Sen's CPP wins a majority of seats in national elections, followed by FUNCINPEC and the SRP.
Prince Ranariddh returns
Prince Ranariddh returns to Cambodia to run in the national elections.
Troops clash in Phnom Penh; Prince Ranariddh exiled
Troops aligned with the CPP and the FUNCINPEC clash in Phnom Penh after public arguments between Hun Sen and Prince Ranariddh become increasingly heated. The prince goes into exile and is ousted from his position a month later.
Sam Rainsy founds KNP
Sam Rainsy founded the the opposition Khmer Nation Party (KNP).
FUNCINPEC and CPP form coalition government
With King Norodom Sihanouk's intervention, FUNCINPEC and the CPP agree to form a coalition government, with Norodom Ranariddh as first prime minister and Hun Sen as second prime minister.
May 23-28, 1993
First post-war elections held
Cambodia holds first post-Khmer Rouge-era presidential elections under the auspices of the U.N. Hun Sen’s Cambodia People's Party, a linear descendant of the Kampuchean People’s Revolutionary Party, which gave birth to the Khmer Rouge, loses to Norodom Ranariddh’s royalist FUNCINPEC.
Oct 23, 1991
Paris Accords Accords signed
Nineteen nations sign the Paris Peace Accords, formally ending Cambodia's civil war.
Sept 26, 1989
Vietnam leaves Cambodia
Vietnamese troops leave Cambodia after a decade of occupation.
Jan 14, 1985
Hun Sen becomes prime minister
National Assembly appoints Hun Sen prime minister.
Jan 7, 1979
Khmer Rouge regime ends
A group of former Khmer Rouge soldiers, including Cambodia's future prime minister, Hun Sen, end the Khmer Rouge regime. Backed by the Vietnamese military, the group liberates Cambodia and Vietnam sponsors formation of a new Cambodian government.
April 17, 1975
Khmer Rouge takeover Cambodia
The China-backed Khmer Rouge occupy Phnom Penh. Over the next three years, eight months and 20 days, the regime will cause the deaths of at least 1.7 million people.
Coup topples Sihanouk
U.S.-backed Gen.Lon Nol leads coup that topples Sihanouk.
King Suramarit dies
Sihanouk accepts role as head of state.
Sihanouk becomes prime minister
King Sihanouk becomes prime minister after abdicating in favor of his father, Norodom Suramarit.
Nov 9, 1953
Cambodia gains independence
King Norodom Sihanouk declares Cambodia’s independence from France.
Since 1993, Cambodia has held a national election every five years. Cambodian people aged 18 and above are eligible to vote for any political parties they like. The party that wins the majority of votes then nominates its members to the National Assembly. Today, there are 123 National Assembly seats, 24 provinces and the capital Phnom Penh. The majority party in the National Assembly forms the national government, provincial governments, select the prime minister and various ministers.
All nominations must be approved by the king. Since 1998, the ruling Cambodian People’s Party (CPP) has won each national election.
As Cambodia stabilized and focused on institution building, it launched commune elections in 2002. Communes are the most local of administrative bodies, overseeing all the villages and their residents in a given area.
Commune elections are held every five years, and the political party that wins the majority selects the commune chief in that commune.
Commune chiefs work closely with the district governors addressing local issues such as sewage, roads, crimes, clean water, and electricity. The ruling Cambodian People’s Party (CPP) has occupied most of the commune seats nationwide since 2002.
Over the past two decades, at least two million Cambodian households in every one of Cambodia’s 22 provinces has obtained very small loans from microfinance institutions (MFIs) that provide cash to farmers, fishermen and others who need money to sustain their livelihood.
Without access to the MFIs, these Cambodians would have no access to credit.
Microloans are not unique to Cambodia. Muhammad Yunus started the Grameen Bank in Bangladesh, loaning very small amounts of money to very poor women who needed to buy materials to produce the goods that they made and sold. He charged very low interest rates and the borrowers repaid in full at record rates. For example, in 2016 the microfinancing institution Opportunity International reported repayment rates of approximately 98.9 percent.
Yunus and the bank won the 2006 Nobel Peace Prize for developing microfinance and “their efforts to create economic and social development from below.” The International Finance Corporation (IFC), which is part of the World Bank Group, estimated that, as of 2014, more than 130 million people have directly benefited from microfinance-related operations.
In Cambodia, many of the MFIs are for-profit—although most Cambodians believe MFIs are government-run—and many borrowers are finding it punishing to pay back, for example, a $1,000 loan with a 3.5 percent monthly interest rate. It is particularly difficult for farmers whose profits are dictated by world commodity prices.
At the end of 2016, Cambodians collectively owed $3.1 billion to MFIs, according to a World Bank report, and 88 percent of borrowers live in impoverished rural areas. A 2017 “special circular” report prepared for the Cambodian Microfinance Association by the Mimosa Project – which studies microfinance over-indebtedness in developing countries – found “that the size of the loans granted by MFIs in the decade from 2004 to 2014 had grown at a rate four times the rate of the growth of incomes of the debtors receiving loans, a phenomenon it described as dangerous and unique to Cambodia,” the Phnom Penh Post reported.
Some small relief arrived in April 2017, when the government capped the allowable annual interest rate at 18 percent. But that locked-out those borrowing the smallest amounts, because MFIs found small loans ate up profits with administrative costs.
Cambodian People’s Party (CPP)
Originally established as the Marxist-Leninist Kampuchean People’s Revolutionary Party on June 28, 1951, the reformist Cambodian People’s Party (CPP) has ruled Cambodia since the Khmer Rouge regime fell in January 1979. The CPP entered the first elections sponsored by the United Nations Transitional Authority in Cambodia (UNTAC) in 1993, but lost to FUNCINPEC, the royalist party. With King Norodom Sihanouk’s intervention, FUNCINPEC and the CPP agreed to form a coalition government in 1993, and Hun Sen became the co-prime minister. Hun Sen became the president of the CPP in June 2015.
“CPP today marks 59 years since founding,” The Cambodian Daily
Cambodia National Rescue Party (CNRP)
The Cambodia National Rescue Party (CNRP) was founded on July 17, 2012 when Kem Sokha’s Human Rights Party (HRP) and Sam Rainsy’s Sam Rainsy Party (SRP) merged. Sam Rainsy, a former finance minister who founded an opposition party in 1995, was president and Kem Sokha, long a voice for political rights, as well as social and economic development, at village level, was the vice president.
The CNRP entered its first elections in 2013, and won 55 seats of the 123 places in the National Assembly.
On February 11, 2017, Sam Rainsy, the self-exiled president of the CNRP, resigned from his post in an attempt to save the party from dissolution after Hun Sen threatened to change the law to enable the government to dissolve parties whose officials had committed criminal offenses. Sam Rainsy had been convicted in absentia
In March 2017, Kem Sokha succeeded Sam Rainsy as the CNRP president. On September 3, 2017, Kem Sokha was arrested at his home in Phnom Penh for alleged treason, accused by the government of conspiring with the United States to bring down the Cambodian government.
On November 16, 2017, Cambodia’s Supreme Court ordered the dissolution of the CNRP. Some opposition members joined the CPP, while many fled the country or were forced out of politics.
National United Front for an Independent, Neutral, Peaceful and Cooperative Cambodia (FUNCINPEC) was founded in 1981 by Prince Norodom Sihanouk as a movement against the Vietnam-backed People’s Republic of Kampuchea government. In 1991, Prince Norodom Sihanouk handed over the movement to Prince Norodom Ranariddh. FUNCINPEC, an acronym from the party’s name in French, the language of Cambodia’s European colonizers from 1863 to 1953, became a political party in 1992.
FUNCINPEC participated in the national election sponsored by the United Nations Transitional Authority in Cambodia (UNTAC) in 1993. The party won the election, but Prime Minister Hun Sen refused to step down. With King Norodom Sihanouk’s intervention, Prince Norodom Ranariddh and Hun Sen agreed to form a coalition government, becoming co-prime ministers until 1997 when their personal animus erupted into July 1997 street fighting between armed forces loyal to Hun Sen and Prince Ranariddh. Hun Sen’s forces won and the prince went into exile.
Human Rights Party (HRP)
Human Rights Party (HRP) was founded on July 22, 2007 by Kem Sokha. The party entered its first Cambodian national elections in 2008, and won three seats out of 123 in the National Assembly.
Sam Rainsy Party (SRP)
Sam Rainsy Party (SRP) was originally founded in 1995 as the Khmer Nation Party by Sam Rainsy. The SRP won 15 seats in the National Assembly in Cambodia’s 1998 national elections. In the 2003 elections, the SRP won 22% of the votes, becoming the second-most popular party in the country after Hun Sen’s CPP.
The Khmer Rouge also known as the Kampuchean People’s Revolutionary Party took control of Cambodia on April 17, 1975. Under Pol Pot, they adopted a radical Maoist and Marxist-Leninist ideologies and wanted to transform Cambodia into a self-sufficient agrarian, classless society. The regime targeted professionals, intellectuals including teachers, Buddhist monks, anyone suspected of having ties to the former Cambodian government or foreign governments, and ethnic minorities. The regime forced people to move out of the cities to rural provinces where forced labor, malnutrition, disease, and mass executions killed approximately 1.7 million people or a quarter of the country’s population by the time the Vietnamese invasion toppled the Khmer Rouge on January 7, 1979.