Logo of Phnom Penh Post newspaper Phnom Penh Post - Graft still 'rampant', says economic survey

Graft still 'rampant', says economic survey

Graft still 'rampant', says economic survey

PERVASIVE perceived corruption is the biggest deterrent to investors in Cambodia states a report by the Heritage Foundation into world economic freedom.

The 2010 Economic Freedom Index, released Wednesday, gave the Kingdom 56.6 out of 100 for the extent of its economic freedom, placing it 107th out of 179 countries.

The rating is measured on indicators such as trade and business freedom, government spending, investment opportunity, corruption and property rights.

The score ranks Cambodia 18th most free in the Asia-Pacific region, outperforming Vietnam (144), India (124), Indonesia (114) and the Philippines (109). Thailand was recorded in 66th place.

The analysis of world economies noted that Cambodia’s performance had declined in several key areas since 2009’s report. Monetary freedom plummeted from 80 percent to just 70.5 percent, thanks to persistent dollarisation of the economy.

Rating for government spending also fell from 94.5 to 92.9 despite “ongoing efforts to improve tax administration and budget management”. However, the score was still far above the world average of 65.

The index for freedom of corruption also fell 2 percent year-on-year to 18 points. The world average is 40.5.

The authors of the report said: “Corruption is perceived as rampant. Business people, both local and foreign, have identified corruption as the single biggest deterrent to investment in Cambodia.

“It hampers economic opportunity and competitiveness, and demands for petty bribes are common.” In contrast, despite the findings, the Kingdom was noted to have performed well on improving its trade regime.

MOST VIEWED

  • Kingdom may hire Turkish power ship

    Cambodia is considering negotiating with Turkey to hire a 200MW-capacity power ship to meet electricity demands as the country faces an ongoing electrical shortage, according to the prime minister. Speaking to garment workers in Pursat province on Wednesday, Prime Minister Hun Sen said Electricite du

  • EDC tackles power shortfall

    Electrcite Du Cambodge (EDC) on Monday issued a statement updating the public on its efforts to tackle insufficient electricity supplies during the ongoing dry season. Reductions in electricity prices have resulted in a steady increase in consumers in the Kingdom, while local and international investors

  • Woman who scaled Cambodia’s three highest peaks eyes Everest

    One of the very few Cambodian women to have successfully reached the Kingdom’s three highest peaks is now eyeing Malaysia’s tallest mountain, Mount Kinabalu, and potentially even the world’s tallest straddling Nepal and China, Mount Everest. While in many Western countries it

  • Cheap, clean and efficient: The firm leading Cambodia’s solar revolution

    Sitting in her bright and airy 17th floor office, Rithya Menon, Okra Smart Solar’s lead firmware engineer, checks the frequently updating data telling her everything about how well their community services are operating. “I saw in the data that there was a problem with