Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia’s economic freedom down slightly last year: report

Cambodia’s economic freedom down slightly last year: report

A row of shops along Sothearos Boulevard photographed earlier this year in Phnom Penh.
A row of shops along Sothearos Boulevard photographed earlier this year in Phnom Penh. Pha Lina

Cambodia’s economic freedom down slightly last year: report

Cambodia’s economic freedom score dropped seven ranks in the annual Economic Freedom Index released by the Heritage Foundation, a US-based, conservative-leaning think tank.

The 0.8 point dip in the score from last year put Cambodia’s economy in the “Mostly Unfree” category, ranking 101 out of a total of 180 countries – down from the 94 spot in 2017.

The Kingdom’s 58.7 score put it squarely in the middle of the Asia-Pacific region, ranking behind Malaysia (22) and neighbouring Thailand (53), but ahead of Vietnam (141) and Laos (138).

Cambodia’s score was hurt by a drop in the already-low “property rights” category, as well as decreases in its “fiscal health” and “labour freedom” scores. In general, the country performed well on overall indications of economic health, but poorly on regulatory efficiency and rule of law categories.

The government did see a rise in its “judicial effectiveness” and “government integrity” scores over last year, but they still remained well below the global and regional averages.

“Pervasive corruption remains a serious obstacle to economic development and social stability” in Cambodia, the report notes in its country summary.

Mey Kalyan, a senior adviser to the government’s Supreme National Economic Council, said yesterday that the ranking was not bad for Cambodia, and that it was a reasonable reflection of the strengths and weaknesses of Cambodia’s economy.

“The issue on institutionalisation needs some time for development, as it needs both human resources and some policies,” he said, urging patience for further reforms to take place.

Using the example of education reform, Kaylan noted that while “building a school is easy to do . . . strengthening the institutional quality of schools needs a long time. So I think that whatever point that they said we are not good yet, we can reconsider and improve it.”

Preap Kol, executive director of anti-corruption NGO Transparency International Cambodia, said yesterday that the study’s findings showed that creating a truly independent judiciary was sorely needed in the country.

“Corruption is still a constraint for the judicial system, affecting the fair business playing field,” he said. “Though our country is an open economy, individual businesses are always backed up by a powerful person as a shareholder.”

To get a better ranking, Kol suggested the government establish a truly independent judiciary for businesses in the country.

“We need to improve the judicial system, and ensure fair business competition by creating a commercial court that is independent and transparent,” he said.

MOST VIEWED

  • PM imposes nationwide Covid restrictions, curfew over Delta scare

    Prime Minister Hun Sen late on July 28 instructed the municipal and provincial authorities nationwide to strictly enforce Covid-19 measures including curfew for two weeks from July 29 midnight through August 12 to stem the new coronavirus Delta variant. The instruction came shortly after he issued a directive

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Provinces on Thai borders put in lockdown amid Delta fears

    The government has decided to place several border provinces in lockdown for two weeks in a bid to prevent the new coronavirus Delta variant spreading further into community. According a directive signed by Prime Minister Hun Sen late on July 28, the provinces include Koh Kong,

  • China denies Mekong hacking

    As the US and its allies joined hands last week to expose what they allege to be China’s Ministry of State Security’s malicious cyber activities around the world, the attention also turned to Cambodia with the US Department of Justice claiming that four

  • US' Johnson & Johnson Covid-19 vaccines arrive

    The first batch of 455,000 doses of the Johnson & Johnson Covid-19 vaccine donated by the US touched down in Phnom Penh on the morning of July 30. They are part of the total 1,060,100 doses the US has pledged to provide to Cambodia through the World Health Organisation-led (

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.