It really does grow on trees Cambodia is Asia's poorest country. After decades of war, its ten million people have the lowest standard of living in the region, in terms of health, education and income. The country's main income (excluding foreign aid) still comes from the sale of rare timber from the country's virgin forests. An incredible 70% of tax revenue comes from customs, compared to 32% in neighbouring Laos, and only 7% in Indonesia. Not surprisingly, this has created a government and business culture based on bribes and commissions, rather than long-term national development.
"Since it took office in 1993, the current government has parcelled up vast tracts of the country in concessions awarded to Thai, Malaysian, Taiwanese and Indonesian companies, It has even sold logging rights in areas controlled by the Khmer Rouges, whose long war has been financed in part by wood. Conservationists, and donors, even the King have lamented the consequences. Deforestation has been blamed for the worsening floods afflicting Cambodia in the rainy season. And the logging is not sustainable. One of the country's greatest natural resources is being sold off, cheaply and for ever. Little of the revenue appeared in government books. Most probably ended up with the loggers, middlemen, officials and politicians and their parties."
Much of the reconstruction of education, health, social and agricultural services is dependent on foreign and NGO support. "Lenders and donors have [increasingly] been linking their assistance to the government's willingness to tackle the timber trade But once international scrutiny is diverted, however, the exports may resume. Trucks piled high with freshly felled timber still ply the roads in many parts of Cambodia. Much is probably still smuggled out of the country by sea or through Vietnam."
Neighbouring Thailand "banned logging in 1989, after bad floods the year before. Thai companies have turned with gusto to cutting down trees in Cambodia, Myanmar (Burma) and Laos."
The Thai government, or more precisely the Thai military have been profiting a great deal from this illegal trade in both Cambodia and in Burma. In Cambodia they are happy to collaborate with the Khmer Rouge in selling their illgotten gains. In the border villages, the Khmers Rouges do exactly as they please, as long as the Thai military get their commission. Source: Logging on, The Economist, 22 Feb. 1997 p.70
June 1997 #289 27
* Cambodia