FOX News : Health

29 May, 2009

Columbia Sportswear busts Thai counterfeiters


Columbia Sportswear busts Thai counterfeiters
by Richard Read, The Oregonian Thursday May 28, 2009, 9:15 PM

Columbia Sportswear Co.
Thai police say Teng Sok Chheng, a Chinese-Cambodian woman arrested last week in Thailand, brought faked Columbia products across from Cambodia.
Police who arrested a woman in Thailand accused of counterfeiting Columbia Sportswear products had to face down an angry mob and Thai army soldiers on the way to jail.

First, a mob surrounded the Thai cops and Teng Sok Chheng, the alleged counterfeiting ringleader, demanding her release in a gritty town bordering Cambodia. "We decided to move from the hot spot immediately," wrote an unnamed investigator working for Columbia, the apparel and footwear company based near Beaverton.

Then during the four-hour drive to Bangkok on May 21, Thai soldiers stopped the officers, investigators and their suspect, demanding her freedom. "The soldiers eventually released us," the investigator wrote, "after the police pressed the issue that the soldiers had no authority to detain us."

To Columbia managers in Oregon, the soldiers' conduct -- and repeated phone calls during the drive from influential police and military officials -- illustrates how corruption often abets international product piracy. Chheng, who allegedly brought pirated shirts and jackets across the border from her native Cambodia, evidently had great connections.

"You don't have a business like her business without paying somebody," said John Motley, Columbia Sportswear associate general counsel and director of intellectual property.

Western tourists who encounter knock-off parkas and shoes in foreign markets often find the fakes funny and their dirt-cheap prices irresistible. But at Columbia, Nike and other big-brand companies, raids on product piracy are serious cops-and-robbers ventures with multimillion-dollar stakes.

Motley guesses that annual sales of copycat Columbia products amount to $200 million, a figure that's growing as factories suffering from the global recession enter the counterfeit market.


Columbia Sportswear Co.
A copycat label appears genuine but comes from a factory making counterfeits that were seized in Thailand. Many of the sizes were large, apparently for Western tourists.

Some plants make outright fakes. Some contract factories that produce legitimate goods for Columbia and other brands make extra items during night shifts that they sell on the so-called gray market.

Columbia, faced with increasing product piracy as its sales have grown, has stepped up efforts this year to catch infringers. Last week's raids across Thailand amounted to the largest bust to date in the crackdown.

Thailand has long been a hotbed for fake versions of products made by Columbia, Nike and other brands. During an unrelated operation May 6, 200 officials raided a street market in Bangkok's Patpong red-light district, seizing counterfeit goods and triggering an all-night melee in which 17 people were injured.

Patpong vendors were outraged that an outside team conducting the raids neither gave them advance notice, as normal, nor allowed them to retrieve confiscated goods, The Nation newspaper reported.

In Columbia's case, a legitimate distributor reported that shops were opening filled with imitation goods. A private investigator retained by Columbia got himself hired at the retail chain of 16 outlets spanning the southeast Asian nation.

Investigators snuck a GPS transmitter on a delivery truck. They found the fakes were coming from Cambodia. They alerted Thai authorities, who joined the investigation.

On May 20, officers raided stores in places ranging from Bangkok to the northern area of Changmai to Pattaya, a coastal tourist trap. The next day, authorities descended on Benjawan market in the dusty town of Aranyaprathet, gateway to semi-legal casinos placed between Thai and Cambodian border checkpoints.

Police began confiscating products and arrested Chheng, age unknown, detaining her in a van. "The situation at the raid went bad," the investigator wrote.

Officers realized they'd have to book Chheng in Bangkok instead of taking her to the local police station. "Hundreds of people in that area would have gone to the police station and surrounded us," the investigator wrote, "forcing the police and us to release Ms. Chheng."

On the road to Bangkok, calls poured in from Thai officials, the investigator wrote, requesting Chheng's release without charges. Officers and investigators escorting Chheng called their own high-ranking contacts, who prevailed. The team managed to book Chheng in Bangkok.

In all, authorities seized more than 4,700 counterfeit Columbia products, likely made in Cambodia and Vietnam, from four stores and two related warehouses, the company said. Police are seeking the chain's owner.

Columbia managers say counterfeiting injures consumers who buy knock-offs that don't provide high-level protection from the elements. Product piracy undermines legitimate businesses and jobs, they say, supporting factories that may abuse workers, hire children and pollute surroundings.

"We believe it's a matter of principle and integrity to protect loyal Columbia customers from imposters," said Tim Boyle, Columbia president and chief executive.

-- Richard Read,
richread@aol.com

Garments got $400m subsidies, says govt

Garments got $400m subsidies, says govt

The Phnom Penh Post
Written by Chun Sophal
Friday, 29 May 2009

THE government on Thursday said that it had spent around US$400 million last year on helping Cambodia's struggling garment and apparel industries survive the global financial crisis.


Minister of Economy and Finance Keat Chhon told the National Assembly that the government provided $490 million in tax and VAT subsidies to all sectors in 2008. Around $400 million in subsidies went to the garment sector.

He also said that the government has not imposed customs duty or VAT on imports and exports of garments since 2005, so buyers should not claim that Cambodia's clothes are overtaxed.

"We spend large amounts of money on supporting the garment industry, so the Garment Manufacturers Association of Cambodia (GMAC) should inform the public of this," said Keat Chhon, who added that the government currently waives tax on clothing imports and exports to encourage factories to compete overseas.

The government will also waive its 1 percent per month advanced profit tax during 2010 and 2011 and help pay 0.3 percent of occupational-risk funds for garment workers in 2009 and 2010, said Keat Chhon.

According to a GMAC report, the garment industry imported $1 billion in raw materials, and exported about $2.9 billion in 2008.

Kaing Monika, external affairs manager at GMAC, said Thursday that it is difficult to assess the exact amount of financial assistance provided to the industry because import tax is calculated by the government.

He also said that GMAC acknowledges that the government has made efforts to help the sector, including providing tax breaks for three to four years to new businesses.

"I think it is the government's calculation," said Kaing Monika. "GMAC is not sure about this issue."

Judges must investigate corruption, scholar writes in Wall Street Journal

Judges must investigate corruption, scholar writes in Wall Street Journal

The Phnom Penh Post
Written by Elena Lesley
Thursday, 28 May 2009

Because the Cambodian Government, international donors and United Nations have failed to adequately address corruption allegations at the Khmer Rouge Tribunal, the court's judges are now the best hope for salvaging the ECCC's legitimacy, scholar John Hall writes in today's Wall Street Journal.

Failing to do so could "deal a fatal blow to the court's credibility," he writes.

In March, defense lawyers for Nuon Chea filed a request with the Co-Investigating, asking that they investigate the alleged kickback scheme at the court. The judges denied the request, saying it was outside of their jurisdiction. The defense teams are appealing that decision.

"Judges have a responsibility to ensure the proper administration of justice within their court," Hall writes. "The claim of the co-investigating judges that they lacked jurisdiction to investigate allegations of corruption involving court personnel was arguably in conflict with this core judicial responsibility."

Tribunal watchdog the Open Society Justice Initiative also released a report today highlighting alleged corruption at the tribunal.

"The combination of unaddressed corruption and the appearance of political interference is a toxic mix for the court," according to the report.

Comments by Prime Minister Hun Sen that the tribunal should not pursue additional prosecutions "are evidence of efforts to politically direct prosecutorial decision-making," OSJI writes.


Moreover, "the recent statements of government officials and concerns about interference threaten to put the UN, the donors, and the staff of the ECCC in the near-impossible position of either abandoning the ECCC or assisting a court that is destined to fail in fulfilling its mandate."


The dispute over additional prosecutions must be resolved as fairly and as transparently as possible, according to OSJI.

It seems that some announcement about the prosecutions should be forthcoming. Co-Prosecutor Robert Petit announced previously that if an oral hearing on the matter were to be held, it would be scheduled for June 5 -- next week.

In other court news, Khmer Rouge scholar Craig Etcheson finished his testimony before the tribunal today. I will post highlights tomorrow.

28 May, 2009

Land Traffic Law abused

Land Traffic Law abused

The Phnom Penh Post
Written by Tong Soprach
Tuesday, 26 May 2009

Dear Editor,

Regarding the article "PM presses for bike seizures"(May 21, 2009), the police could be empowered to seize and confiscate motorbikes without side mirrors and drivers without helmets under a Land Traffic Law amendment proposed by Prime Minister Hun Sen.

At the moment, we can see that officials at police posts on our streets and boulevards don't all have their proper identity numbers or uniforms. Rather, they seem more intent on pulling over motorbikes and collecting "fines". Perhaps officials think that these "guilty" fines from motorbike drivers will enhance the national income in some positive way.

In fact, the money from these fines goes directly into the pockets of traffic police officials. Cambodians and foreigners alike who pay such fines regularly complain that officers never provide receipts for money received. Such receipts serve a number of important purposes, not least of which is preventing drivers from being cited and fined for the same "infraction" more than once each day. Any number of drivers can attest to being stopped and fined at one police post only to be pulled over again at the next and forced to pay because they have no receipt.

Another inequity committed by traffic police is their attempts to fine foreigners at a much more exorbitant rate. My foreign friends say traffic police regularly attempt to extract fines of between US$5 and $20. But Cambodia's traffic laws do not establish one rate for Cambodians and another for foreigners. All drivers, regardless of nationality, are legally obligated to pay only between 3,000 riels and 6,000 riels for motorbike infractions.

I can appreciate that traffic police officials work hard in the sun and the rain, and perhaps that is why the government provides them with certain "incentives". But the Land Traffic Law makes certain legal stipulations that are not being followed. This law, approved by the National Assembly in December 2006, has this to say in the third paragraph of Article 72:

"Traffic police officials must be punished in jail from 1 to 3 years or/and fined from 2,000,000 to 6,000,000 riels for any official who (1) forces a guilty driver to pay an incorrect fine, or (2) receives money and then issues an incorrect receipt, or fails to issue a receipt at all."

Corruption among traffic police officials leads to a loss in national revenues. Moreover, many drivers face multiple fines in a single day, while foreigners are threatened with fines many times more than the legal limit allowed under the Land Traffic Law.

Therefore, the government should take any action against this corruption, done in violation of the Land Traffic Law. Meanwhile, all drivers should be advised not to surrender their driver's licences or registration to Traffic Police officers.

Tong Soprach
Phnom Penh

GMAC calls for expansion

GMAC calls for expansion

The Phnom Penh Post
Written by Chun Sophal and Hor Hab
Thursday, 28 May 2009

Manufacturers group urges rise in orders, production

THE Garment Manufacturers Association of Cambodia (GMAC) has encouraged factories and buyers to increase production and purchase orders for Cambodian garment products to save one of the country's leading export earners from the effects of the economic downturn.

After a garment industry forum Wednesday morning, GMAC President Van Sou Ieng told reporters that the total global purchase orders made by clothing giants Gap, Nike, Adidas, Levi's, Puma and H&M were about US$143 billion per year, but that they only ordered about $2.9 billion in garments from Cambodia last year.

"I want [Cambodian] factories to increase their production by 50 percent and buyers to increase their purchase orders [with Cambodia] to 5 or 10 percent a year [of total global orders] because Cambodia has good labour compliance," he said.

He said that GMAC was negotiating with buyers, but said purchase orders in the first four months of 2009 had only reached 70 percent of the orders made in the same period last year.

"I want producers and buyers to directly cooperate with each other without any intermediary agencies so they can see the real situation in Cambodia," he said.

On Wednesday, more than 20 representatives from export-oriented garment factories met with eight purchasing companies to discuss strategies to help Cambodia become a more attractive destination for garment production.

Industry insiders said the Kingdom's relatively good working conditions could be a boon for the sector while expressing caution in the shorter term.


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We don't want to let our efforts ...turn into a short- lived success story

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"Labour compliance in Cambodia is good, and it can be one of the criteria - including price, quality and design - that will motivate buyers to increase their purchase orders," Kanwarpreet Singh, chief representative of Puls Trading Far East Limited, which represents a number of leading brands in Cambodia, said Wednesday. "We will maintain our purchase orders from last year because we know the market well," he added.

Roger Tan, managing director of Thaipore Garment Manufacturers Co Ltd, agreed that working conditions in Cambodian factories were very good, and expressed hope that buyers would consider this and increase their purchase orders. Although he was optimistic for the future, Tan said it was too early to know what would happen.

Minister of Commerce Cham Prasidh said during Wednesday's forum that Cambodia was the first country to implement a labour-linked trade policy, and that it has gained recognition across the world for its high levels of compliance with labour law established by the International Labour Organisation (ILO). But he said such compliance could not be pursued indefinitely if orders continued to fall.

"If as a result of supporting ILO labour practices [there are] less purchase orders and less business for Cambodian exporters, then our government may have to revisit this policy," he said. "We don't want to let our efforts over the past 10 years to enhance corporate social responsibility in Cambodia turn into a short-lived success story."

According to GMAC, Cambodia currently has 280 export-oriented garment factories employing more than 310,000 workers.

Official blasts UN over report

The Phnom Penh Post
Written by Sebastian Strangio and Vong Sokheng
Wednesday, 27 May 2009

A SENIOR government official lashed out Tuesday at the recommendations released by a UN human rights body, claiming they are part of a pattern of bias against the Cambodian government.

"I think it is usual for UN human rights bodies to blast the ruling party and look on the government as its enemy," said Cheam Yeap, a senior CPP lawmaker.

"As a lawmaker, I want to see the checks and balances of the UN before they criticise the [Cambodian] government."

He added that the government was working to improve human rights in the country and that the Kingdom's leaders were better placed to judge the needs of Cambodians.

"We are trying to improve the living conditions of the Cambodian people," Cheam Yeap said. "I don't think that the UN loves the Khmer people more than Khmers love the Khmers."

In its concluding observations to Cambodia's May 11-12 review in Geneva, the UN Committee on Economic, Social and Cultural Rights criticised the government for its lack of action on issues including land rights, gender equality, conservation, unemployment and labour rights.

Prominent among the committee's 24 recommendations was a call for a moratorium on land evictions "until the proper legal framework is in place and the process of land titling is completed".

It also slammed the government for its apparent refusal to send a delegation to the review, which itself came 15 years late because of the government's delay in filing its initial report to the committee.

"The Committee regrets the absence of experts from the State party and that the information provided was in some cases not sufficiently detailed," the report said.

Rights groups said the committee's report was an accurate snapshot of the situation in Cambodia. "The Committee has picked up on the most salient issues with regard to the state of economic, social and cultural rights in Cambodia," said David Pred, country director of rights group Bridges Across Borders.

He also expressed hope the government would respond by bringing the country into compliance with its obligations.

"This is what the ambassador promised in Geneva that the government would do, but now it is up to the central government in Phnom Penh to translate his words into action," he said.

Thun Saray, president of Cambodian rights group Adhoc, said that the committee had been "quite balanced" in its reporting, noting areas of improvement in Cambodia, and said the government should take the recommendations seriously.

Sam Rainsy Party spokesman Yim Sovann also supported the committee's efforts, adding that the CPP's "top to bottom" control of the government meant human rights issues were ignored. "They pretend to take care of [these issues] but in reality it is not the case," he said.

"So now the international community has to try."

Looking for Social, Labor Dimension in Korea-ASEAN Summit

Looking for Social, Labor Dimension in Korea-ASEAN Summit

Special Contribution
Maragtas S. V. Amante
The Seoul Times, 28 May 2009


Flags of ASEAN countries

Maragtas S.V. Amante is a professor at the College of Economics and Business Administration, Hanyang University Ansan. He is from the Philippines, and was a consultant with the ASEAN Secretariat on labor. Email: amante2008@hanyang.ac.kr, amantech@ymail.com

Once again, leaders of ASEAN will gather for a summit with Korea in Jeju Island on June 1-2. The event is a bit historic since it is the first time for the leaders to hold a summit in Korea. The leaders are from Brunei, Cambodia, Indonesia, Laos, Malaysia, Burma, the Philippines, Singapore,Thailand, and Vietnam. With very few recent elections producing changes in national political leadership, the gathering is a reunion for many – plus repeat performances and statements.

In between, there will be subdued, somber recollections of caramaderie with a recently departed leader from Korea. East Asians share a strong, common culture of empathy, and the meaning of Roh Moo Hyeon's death will loom large but silently among his friends among the current group of ASEAN leaders, as they recall his advocacies.

There will be joint statements on improving Korea-ASEAN relations in four areas — security, economic development, society and culture, and global issues. During summits, leaders are usually pre- occupied with niceties, photo opportunities, food, drink and leisure, alongside geopolitics, diplomacy and recovery from the global financial crisis. ASEAN has now 570 million people, and together closer social and economic relations with 48 million Koreans will create a demand for higher expectations. There will be more demands on better exchanges and extensive assistance to promote social harmony, alongside business and economic development. The labor dimension will always be there as long as there are social and economic exchanges involved. In the future, there will be vociferous calls to put the labor dimension into prominence, as a regular item in the agenda for Korea – ASEAN relations. Future summits may yet address the movement of people, alongside trade in goods and services, and the creation of decent, quality jobs with social security.

Mutual benefits in the exchange of products, capital and labor between nations are based on classical ideas and assumptions about comparative advantage. Economic relations between Korea and ASEAN provide a good case of the potentials as well as limits of what could regional economic integration bring about. National economies face constraints through domestic pressures as well as from demands of the global economy, which determine capacity to promote economic growth & social development. There are significant similarities and contrasts between the economies of Korea, the original six ASEAN countries (Brunei, Indonesia, Malaysia, Philippines, Thailand and Singapore), and the four latecomers in the group (Cambodia, Laos, Vietnam, and Burma/Myanmar). Better technology through communications and transport will leap frog through social and cultural diversity, and enable more goods, capital, services and people to move across national boundaries, at a greater intensity and with greater benefit for both sides. Movements of natural persons, goods and services across national boundaries are inevitable, but a functional economic partnership agreement will provide greater advantages between trading partners. These are usual expectations documented in summit statements. Accountability and efficiency in words to match action and capacity are scarce commodities in these discussions.

Both Korea and ASEAN are now enmeshed in an "udon soba" ("mixed noodle bowl"), or complex web of bilateral and multilateral free trade agreements with Europe, the US, Australia, and other countries. Economic partnership agreements (EPAs) became major foreign policy instruments of many countries, since the WTO talks collapsed in Hong Kong in 2005. Leaders of Korea and ASEAN need to navigate themselves from the sticky, and tricky complexities of trade agreements which no one among them may actually understand 100 percent, to the detriment of sound decisions.

The labor dimension

The ‘labor dimension' is a composite framework of the primacy of the human element in economic transactions, including a commitment to promote decent work in trade – strange words to some, uncomfortable but familiar phrases to many of the leaders in the summit. In the production of goods and services for trade, workers are employed. As people move across national boundaries, they become foreign workers with human rights. The composite framework includes guarantees to freedom of association for unions and collective bargaining to improve work conditions, health & safety; and no discrimination in employment and pay. Behind the discussions among Korea and ASEAN leaders are assumptions about comparative advantages and benefits in the international division of labor, and exchange of capital and resources. The dominant thinking in free trade is to reduce transaction costs through social and labor standards. Yet, enterprise managers accept that to motivate workers to be productive and efficient requires good working conditions and adequate compensation. These ideas about labor cost and motivation contradict each other.

Both Korea and ASEAN countries are signatory to various international conventions, which provide the basis for national laws and policies, including labor and social standards. International norms such as human rights include the freedom of association, workers rights to collective bargaining, health and safety, and decent working conditions. International agreements such as the UN Global Compact, the UN Declaration of Human Rights, and the ILO Declaration on Fundamental Principles and Rights at Work. These norms provide a standard of behavior or a code of conduct among countries which acceded as signatories. Compliance with internationally recognized labor and social standards, laws and policies provide a playing field for global competition and free trade.

With regional integration and globalization, it is expected that decent work and the labor dimension will have greater prominence in various bilateral and multilateral free trade negotiations, especially in the agreements regarding movement of natural persons among countries. A common fundamental framework for labor standards will be most relevant to ensure harmony and productivity in the workplace, narrow down worsening inequalities in wages and income, improve living standards and contribute to social and political stability in the region.

Both Korea and the ASEAN countries have a rich variety of labor laws and procedures on the fundamental framework of industrial relations, to promote decent work. Efforts to develop capacity need to intensify. Capacity building is important, to fill the gaps, harmonize and improve national policies and laws concerning labor, employment, social security, health and safety, and industrial relations.

Eight ILO Conventions have been identified by the ILO's Governing Body as being fundamental to the rights of human beings at work, irrespective of levels of development of individual member States. These rights are a precondition for all the others in that they provide for the necessary means to strive freely for the improvement of individual and collective conditions of work. Numerous studies in the ILO indicate that a failure to respect labor standards carries specific and measurable costs to national economies, harms economic development, and violates the rights of working people throughout the region.

Most ASEAN countries have ratified the core labor dimensions concerning freedom of association and collective bargaining (ILO Convention 87 and 98), abolition of forced labor (C29 & C105), prohibition of child labor (C138 & C182), and prohibition of discrimination in employment (C100 and C111). Capacity to implement the conventions needs to be developed among the countries which ratified them. Korea ratified the core conventions on elimination of child labor and employment discrimination. However, Korea had not ratified the core conventions on freedom of association and forced labor, key standards for workers rights. (see box). Korean unions, and their concerted activities in the exercise of freedom of concerted action however are among the most vibrant in the world. Brunei, a new member of ILO, so far ratified only one core labor convention against child labor. Effective ratification depends upon the capacity to devote resources to implement the observance of core labor standards. Ratification also depends upon the circumstances of the relevant government instrumentality mandated to ratify international commitments.

Labor laws on wages and disputes

Labor laws of most countries in ASEAN, and Korea provide for the fundamental framework of "freedom of association" generally understood to include the right of workers and employers to establish and join organizations of their own choosing without previous authorization; to draw up their own constitutions and rules, elect their representatives, and formulate their programs; to join in confederations and affiliate with international organizations; and to be protected against dissolution or suspension by administrative authority.

Most of labor laws in ASEAN, as well as Korea, also provide for concerted action, which include the right of workers to strike, and for employers to lock out their workers. It is generally accepted for strikes to be restricted in essential services, the interruption of which would endanger the life, personal safety, or health of a significant portion of the population, and in state administration. These restrictions must be offset by adequate safeguards for the interests of the workers concerned. Labor laws provide mechanisms for mediation and arbitration, due process, and the right to judicial review of legal actions. Reporting on restrictions on the ability of workers to strike generally includes information on any procedures that may exist for safeguarding workers' interests.

Workplace conflict, a situation which all parties seek to avoid, presents itself in two forms: disputes of rights and disputes of interests. Disputes of rights are categorised by their direct relation to a particular labor agreement, arising from different interpretation or fulfilment of rights conscribed by an existing contract. The contractual nature of rights disputes enables them to be largely handled by the court system or legally binding arbitration committees. In contrast, disputes of interests arise over opinionated differences with respect to the conclusion or revision of a collective agreement. There are 3 generally recognized means of conflict resolution: conciliation, mediation, and arbitration.

In the ASEAN countries, there is a rich diversity in the experience of wage determination, through a variety of policies including minimum wages, various bargaining and legislative procedures for setting the minimum wage, methods for changing it, economic and social criteria taken into consideration, and its impact on employment and poverty.

Wage bargaining requires a fundamental framework, to provide for the freedom of association, and the exercise of workers rights. Market wages imply recognition of economic efficiency, wherein competitive forces reward increases in performance and productivity with wage increases. This idea is common sense: low wages are associated with low motivation, low performance, resulting in low productivity and vice versa.

There are various approaches in both Korea, and in ASEAN countries in addressing issues concerning wages, in relation to productivity. Challenges from globalization bring to the attention of employers and workers the need to consider employment generation, income security and skills development. The IT revolution has contributed to changes to the work environment resulting in changes at the workplace. Other challenges include the ageing population and changes in the labor market structure. The tripartite relationship among government officials, organized workers and the employers needs a restatement, and focus. There is a need to develop trust and the openness to share information with each other to determine sustainable wage that is linked with productivity.

Minimum wages policies were observed in seven ASEAN countries (Cambodia, Lao PDR, Indonesia, Myanmar, Philippines, Thailand, and Viet Nam). Minimum wages were fixed in terms of local, regional, provincial, industrial or national rates. As a basis for determining minimum wages, these countries emphasize cost of living, measured through inflation and the consumer's price index (CPI).

Cambodia, Indonesia, Myanmar and Philippines introduced minimum wages to protect vulnerable workers. Cambodia, Lao PDR and Myanmar introduced minimum wage fixing in certain industries like the garment industries after consultations and negotiations between employers, workers and government. In Indonesia, Thailand and the Philippines, there are regional and local wage boards to determine minimum wages applicable to the local areas. In Cambodia, however, the minimum wage tends to become the maximum wage or ceiling.

In many countries, minimum wages are used as entry pay for certain jobs. Enterprises must pay for an entry wage rate, for new workers which are equivalent to a minimum wage. Job evaluation methods are used by employer's especially multinational enterprises, in fixing their pay systems. This method considers such factors as workers' qualifications, knowledge and skills. The cost of living must consider not only food, but other basic needs such as shelter, clothing, transport, health and other utilities.

There are gaps in linking wages and productivity in many ASEAN countries. In some cases minimum wages serve as the ceiling, or approximate average market wages. Minimum wages also approximate subsistence wages,. as a form of social protection. Minimum wages provide social protection for vulnerable workers not covered by collective bargaining, where there are no unions, or organized workers.

Korea's investment and ASEAN labor

Economists note that Korean foreign direct investment reached full scale in the 1980s, and since the mid-1980s, Korean firms have looked to Southeast Asian countries as a source of inexpensive labor as well as abundant natural resources. In particular, Korean firms also exported manufactured goods produced in Southeast Asia to developed countries. Such a strategy allowed these firms to bypass the trade barriers to Korean products in third country markets.

As a result, Korean investment to ASEAN began to increase in the late 1980s, concentrated in labor-intensive industries such as footwear, textiles and electronics. Even though Korea's investment in

Southeast Asia declined in 1993 and 1994 because many Korean companies were investing heavily in China, it increased again when large Korean conglomerates began directing investments towards

ASEAN countries including Indonesia and Vietnam. As the purchasing power of ASEAN member countries became diversified, Korean firms also began to shift their investment patterns to market oriented investment after the mid-1990s. Korean investment toward ASEAN declined due to the financial crisis after 1997, but went up again. The emergence of China is a major factor which also affect the flow of Korean investment in ASEAN.

Variations in development and wealth between Korea and ASEAN present a unique challenge to discussions about trade, investment and regional integration. Such differentials are a major driving force for intra-regional labor migration, which represents both a source of comparative advantage and a challenge. Another challenge comes with finding a balance between economic growth and social development and establishing appropriate measurements of success. For example unemployment statistics are seen as a reference for whether progress is sustainable and prosperity is being shared, while other crucial aspects of labor market performance are glossed over; the issue of labor productivity, gender gaps, the growth of the informal economy, the persistence of underemployment and working poverty. The continued existence of such inequities raises questions about the stability and sustainability of development.

Exports continue to play a large role in the overall economic growth and development in both Korea and ASEAN. The recent global financial crisis however provided a stimulus to "re-think" this development model, and focus more on the development of domestic markets, national industries, and local financial capacity. However, there were also warnings against the dangers of protection.

Economists argue that "countries can compete in global export markets in different ways, however – e.g. through either capital or labor-intensive production – taking into account their unique labor market characteristics. Export growth can occur by increasing employment, increasing worker productivity, or both." The data shows that in some countries, expansion is driven by high employment growth alone. According to the ILO, in Cambodia, for example, where the garment industry dominates the export market, from 1995 to 2000 employment increased by more than 100 %annually, while labor productivity declined. Other studies show that the office machinery industry in the Philippines had a similar contradiction between increase in employment, and a decline in productivity. From 1996 to 2003, employment grew 17.3 %annually, on average, but worker productivity actually fell by 6.0 %. Conversely, productivity-driven growth can be seen in Malaysia's leading manufacturing export industry, where average annual productivity expanded by 17.0 % while employment in the industry decreased annually by 7.4 %. Finally, in other cases, export growth has been balanced between employment growth and increased productivity, as seen in the leading manufacturing export markets of Indonesia and Viet Nam.

The ILO pointed out that "productivity growth does not guarantee comparable wage growth. In Malaysia's office machinery industry, productivity rose by 17 % annually, while wages grew by only 4.2 %. Holding other factors (including exchange rates) constant, if worker productivity

grows faster than wages, unit labor costs decline and overall cost competitiveness increases.

In other ASEAN export industries, workers have faced an even more disturbing scenario."

Indicators show that despite substantial productivity growth in Thailand's and Viet Nam's key export industries, real wages fell. This reflects worsening worker incomes and livelihoods despite increased worker efficiency.

Korea's foreign ‘guest workers'

"Korea welcomes laborers from your country." This is the headline banner in the website of Korea's Employment Permit System (EPS). Korea's EPS is a significant tool of labor market management, "to establish efficient employment of foreign workers." Korea initiated bilateral labor agreements with labor surplus countries such as the Philippines, Indonesia, Vietnam. The EPS allows employers who have failed to hire native workers, to legally employ a certain number of foreign workers. These are mostly small enterprises, which Korean workers themselves avoid due to low pay and difficult working conditions, mostly in the factories. Yet, a key objective of the EPS is to provide protection for human rights, and prevent abuse and discrimination. Employers hire foreign workers for a fixed term, usually up to three years, but many stay on to be undocumented, and invisible to the social and health infrastructure due to the high demand for cheap labor.

Many countries which experience labor shortages due to economic development and population ageing, put in place a system to manage the employment of foreign workers. Korea began to attract foreign workers in order to overcome labor shortages from the mid-1980s. Foreign workers were employed for "3-D" jobs - difficult, dirty and dangerous work which most Koreans avoid.

Taiwan, Singapore, and Hong Kong also introduced similar Employment Permit System. Most European countries such as France, Germany, and Switzerland introduced "Labor Permit Systems" which allow foreign workers to move freely from one workplace to another in Europe.

Korean experts explain that over the last 20 years, globalization and increased openness have accelerated the inflow not just of goods and services but also of labor. According to one Korean analyst, "it was quite an unusual thing to see foreigners in Korea about 20 years ago. Now , foreigners walking on the street scarcely get a second glance because there so many of them now live in Korea."

The number of foreign residents in Korea increased constantly from 49,500 in 1990 and surpassed the one million mark in August 2007. This means that foreign residents now make up more than 2 percent of the total population, numbering around 1,007,000.

There has been extensive discussion on the entry of foreign workers in Korea. A critic of Korea's EPS policy points out that the policy to attract high-quality foreign human resources "has not yet borne fruit." In 2007, foreign workers receiving employment visas, non-professional employment (E-9) and training employment (E-8) account for 69.6 percent and 11.7 percent, respectively, under the work permit system. Apart from non-professional employment and training employment, the other major category is for professionals, of which foreign language instructors make up the largest share at 9.6 percent. One analyst concludes that "there are problems in the policy to attract highly-skilled foreign workers to respond to the needs of a knowledge- and information-based society."

Another important consideration is the negative opinion among Koreans of the increase in foreign manual workers. News about arrests of illegal workers are a regular feature in the media. There are perceptions that Korea's national competitiveness has weakened due to the rise in social integration costs, a crowding-out effect for domestic workers, and a delay in industrial restructuring.

The labor dimension in trade

There is a consensus among the leaders that both Korea and ASEAN should continue to integrate and liberalise their respective economies. According to the Prime Minister of Singapore, "the purpose of ASEAN is not to create a trade bloc … we are committed to open regionalism and adopt an inclusive approach. But our actions would demonstrate the practical benefits of economic openness and contribute in a modest way to maintaining the global momentum for trade liberalization." This type of thinking however is increasingly challenged by the events related to the global financial crisis, and recent calls to strengthen domestic economies, replacing the prominence of export oriented economies.

Both Korea and ASEAN have good long-term economic potentials, and growth opportunities. Leaders have called for faster integration,to gain a greater share of investments and job creation. Given the diversity in the region's economies, the challenge is for leaders to 'walk the talk', for the statements and declarations to trickle down the bureaucracies, institutions and structures for implementation, and engagement with 'civil society groups' – an idea which many leaders may not be comfortable with.

At the same time, more prominence on the social and labor dimension would require a higher level of awareness among both Korean and ASEAN people, to be more open, tolerant and understanding of the diversity of cultures, languages, ways of thinking and creative methods of action.

A suitable framework for cooperation requires improvements in existing mechanisms, such as bureaucracies and institutions dealing with social and labor issues, alongside economic and business relations. The arrangements so far were ‘ad hoc' or temporary, and fluid depending on the capacity of resources and priorities of revolving leaders. Mutual respect for the diversity of social, political and economic systems require an institutional framework, with common values, legal principles and mechanisms for joint action and cooperation. The expectation in the Korea – ASEAN summit is to strengthen the shared determination to maintain regional peace, safeguard human rights, and sustain the commitment to democracy as norms to support the functioning of the competitive enterprise system which is the basis of trade. At some point, Korea and ASEAN leaders need to put prominence to the social and labor dimensions in the summit discussions, to define the emerging architecture, and foundations of regional integration.

27 May, 2009

Vietnam textiles increases market share in US

Vietnam textiles increases market share in US

Saigon SGGP English edition
Wednesday,May 27,2009, Posted at: 15:11(GMT+7)

The United State’s Customs has recently reported that Vietnam’s market share of textiles and garments in the US has increased from 3.4 percent to 4.47 percent since the same time last year.


The garment and textile sector employs around two million people, of whom 80 percent are famale, many are migrants from the poor rural provinces.
Vietnam is one of four countries that has exported textiles and garments and seen positive growth in 2009.

The industry is showing positive signs of growth for the upcoming fall and winter seasons.

Vietnam will also increase clothing exports to Japan, Korea, ASEAN countries and the EU, with exports to the EU having risen in the second quarter.

The US is Vietnam’s largest single export market for garments and textiles, accounting for approximately 54 per cent of Vietnam’s garment exports in 2008.

The markets are different. US buyers often require large orders (over 100,000 pieces per order). EU buyers are looking for small or medium orders (thousands to ten thousands of pieces per order).

The majority of textile and garment exports are destined for the US, followed by the EU and Japan.

In the EU market, Vietnam faces increased competition from Eastern Europe, which, although wages are higher than in Asian countries, have no import taxes within the EU, has strong design capabilities, allows for fast delivery and has much lower transportation costs.

The US was the toughest in terms of applying quotas and anti-dumping tariffs to exporters, and implemented a monitoring system when quotas were abolished. The economic recession in the US may result in slowing the growth of exports to the US, which could have negative consequences on Vietnam’s total exports this year.

Vietnam is one of the top ten garment exporters in the world, with exports expected to top US$9.5 billion this year, with exports to the US expected to be over $5 billion.




By M.Hanh - Translated by T.Huong

19 New Garment Factories Open in Cambodia in Q1

19 New Garment Factories Open in Cambodia in Q1

2009-05-27 15:13:26 Xinhua Web Editor: Cao Jie


Nineteen new garment factories opened in Cambodia in the first quarter this year, creating job opportunities for workers who lost employment due to the world financial crisis, local media reported on Wednesday.

These new factories, on the outskirts of the capital Phnom Penh, will employ 6,069 people, helping to offset the closing of 46 garment factories that led to the loss of 21,400 jobs in the first three months of this year, according to official data from the Ministry of Labor.

"We welcome newly opened factories, because they help create jobs for workers who lost employment when previous factories closed," Oum Mean, secretary of state at the ministry, was quoted by the Phnom Penh Post as saying.

Bun Var, general manager of Jit Textile, one of the factories that reopened, said that he will provide 1,600 jobs this year, but adding that the future of the sector was generally unknowable given current uncertainty. "No one can predict the business lifespan of a new factory," he said.

Meantime, Cheath Khemara, a labor affairs official for the Garment Manufacturers Association of Cambodia (GMAC) predicted that the garment sector's woes would continue indefinitely. "It will be difficult to attract new factories to Cambodia given the current situation," he said, blaming labor strikes for scaring off investors.

Cambodia's garment exports dropped 35 percent in the first quarter of 2009. Exports to the United States were worst hit, down 47 percent compared with same period last year, while those to the European Union (EU) fell 22 percent, according to the earlier figures obtained from the Ministry of Commerce.

ASEAN to take immediate action for the release of Aung San Suu Kyi

STATEMENT
CHRAC Urges the Royal Government of Cambodia and ASEAN Member States to Take Immediate Action For the Release of Aung San Suu Kyi
Phnom Penh, 27 May 2009



At the occasion of the Asia-Europe Meeting (Asem) in Hanoi and the 17th ASEAN-EU Ministerial Meeting in Phnom Penh, 27-28 May 2009, the Cambodian Human Rights Action Committee (CHRAC), a coalition of 21 NGOs working in the fields of human rights, democracy and the rule of law, urges all ASEAN Member States, and in particular the Royal Government of Cambodia, as a Member of this association, to take immediate action to secure the release of Aung San Suu Kyi in Burma (Myanmar).



Aung San Suu Kyi has been under house arrest for 13 of the past 19 years. She received the Nobel Peace Prize in 1991 for her non-violent struggle to bring peace and democracy to her country. Despite her detention and other ongoing violations of fundamental human rights, Burma (Myanmar) became a Member of ASEAN in 1997.



CHRAC welcomes and supports the recent statements of the European Union calling to free the opposition leader and of ASEAN’s Chair, the Government of Thailand, issued on 19 May 2009, which expressed its “grave concern” over the developments in the case of Aung San Suu Kyi. ASEAN’s Chair urged the Government of Myanmar to accord her “humane treatment” and noted that the Government’s “honor and credibility” was at stake.



However, Aung San Suu Kyi’s ongoing detention and the current trial do not just concern the questionable credibility of the Government of Myanmar but also present a challenge to the credibility of all ASEAN Member States if no immediate action is taken to address the violations of the fundamental freedoms of Aung San Suu Kyi and those of the more than 2,000 other political prisoners detained in Burma’s (Myanmar) prisons.



We wish to remind all signatories of the ASEAN Charter that Article 2 provides that Members shall act in “respect for fundamental freedoms, the promotion and protection of human rights […]”. CHRAC calls upon all ASEAN Members to respect the principles outlined in the Charter. We hope that other Member States, including the Royal Government of Cambodia, will follow the courageous example of the Philippine Government which had called on other ASEAN leaders in 2007 to secure the release of Aung San Suu Kyi.



Therefore, CHRAC urges all Members of ASEAN, the European Union, the United Nations, and in particular the Royal Government of Cambodia to rally behind an unambiguous call for the immediate release of Aung San Suu Kyi. We further urge ASEAN Member States to take firm and immediate action to address the ongoing violations of fundamental freedoms and human rights in Burma (Myanmar).



For further information, please contact:



Mr. Sok Sam Oeun Chairman of CHRAC/Director of CDP Tel: 012 901 199

Mr. Thun Saray President of ADHOC Tel: 016 880 509

Mr. Hang Chhaya Executive Director of KID Tel: 012 575 883

Mr. Im Sophea Deputy Director of CSD Tel: 016 888 552

Ms. Say Vathany Executive Director of CWCC Tel: 092 993 558

___________________________
Cambodian Human Rights Action Committee (CHRAC)
Address: # 9E0, St. 330, Sangkat Boeung Keng Kong III,
Khan. Chamcar Morn, Phnom Penh, Cambodia
Tel/Fax: (855) 23 218 759, Tel: (855) 23 301 415, 30 56 09
E-mail: chrac@forum.org.kh or chracsecretariat@yahoo.com

Cambodia: Business climate gets low marks

Business climate gets low marks

The Phnom Penh Post
Written by Nathan green
Tuesday, 26 May 2009

CAMBODIA was ranked behind most other Southeast Asian nations in a UN survey of global economic competitiveness released Monday, which found that more investment was needed in skills training for the Kingdom's workforce.

The report coincided with two other joint studies from the World Bank, Asia Foundation and International Finance Corporation (IFC), which concluded that Cambodia needed to improve its business climate.

"Increasing Cambodia's competitiveness is a necessity, not a choice, if the country is to sustain economic growth, reduce poverty and keep pace with its ASEAN neighbours," the report by the UN Development Programme said.

Phnom Penh was ranked behind all 23 provincial capitals in the Provincial Business Environment Scorecard, which was produced by the Asia Foundation and IFC. Kampong Cham was ranked at the top for ease of doing business.

"There are some excuses, but it is crucial that Phnom Penh does see some improvements in the business environment," said Veronique Salze-Lozac'h, regional director of economic programs for The Asia Foundation. The World Bank study found corruption to top the list of obstacles to business.

View of Unfairness Remains as Courts Reform

View of Unfairness Remains as Courts Reform

By Men Kimseng, VOA Khmer
Washington
26 May 2009



The government is pursuing a set of goals to improve the protection of personal rights and freedoms and to modernize its justice system, but there is lingering mistrust among the public the courts can actually deliver fair results.

Officials say they are trying to update the country’s legal framework, strengthen judicial services, and provide alternative dispute resolution.

“Our activities and strategies are very broad,” Suy Mong Leang, secretary-general of the General Secretariat for the Council of Legal and Judicial Reform, told VOA Khmer by phone. “This means we cannot see the results immediately. Nowadays, we try our best to do as much as we can, based on what we have planned. There is a lot. We have 97 activities in total, so we have to do this within short and long terms. Until now we have not done 100 percent.”

Despite these efforts, the courts are seen as a tool used by the rich and powerful against the poor and weak. This is obvious in many land disputes—contentious issues in Cambodia that are often resolved in courts that seem to favor those with money and influence.

“Today, the justice system is one of injustice,” Yim Sovann, a lawmaker for the opposition Sam Rainsy Party, told VOA Khmer. “”We have noticed that if it is so, it will be a major impediment in our society.”

Court officials must operate in a corrupt system created by the ruling Cambodian People’s Party, he said; otherwise they become victims themselves.

Even the prime minister, Hun Sen, recently looked to the courts to resolve an essentially political dispute with SRP parliamentarian Mu Sochua. Each side accused to other of defamation. Mu Sochua claimed remarks made by the premier during the 2008 national election campaign were degrading; Hun Sen said a press conference in which she announced her case was defaming.

While some say the settling of such difference through lawsuits in the court, instead of violence in the streets, is a positive step, others disagree.

“Opposition parties don’t trust the courts to find justice for them, but they have no choice,” said Kem Sokha, president of the minority opposition, the Human Rights Party. “If someone brings them to court they have to go, in order to show to the public that we use this court. But we want the court to reconsider and correct itself.”

Court judges and prosecutors at every level are members of the ruling party, he said, and this interferes with their work, especially in high-profile cases.

However, Mong Mony Chakriya, a Supreme Court judge who worked for years in Phnom Penh Municipal Court, refuted the allegation.

“From my experience, since I began my work, I never received any political pressure,” he said. “I have never received anything.”

The Supreme Council of Magistracy has a role to maintain independence in the courts and to issue internal regulations for judges. The nine-member council is headed by the king, but seven other members are in the CPP.

Opposition members are skeptical of the council’s ability to punish judges who are not impartial.

Ouk Vithun, a member of the council and former Minister of Justice, said the council does not function based on political quotas, as other institutions do, but focuses on technical work.

“So far, close to 200 judges have been disciplined,” he said. “We have disciplined many judges. We have sacked some. Some have been removed, and some were moved to other places. We have done this for many years.”

26 May, 2009

KRouge leader Pol Pot 'not a Cambodian patriot'

KRouge leader Pol Pot 'not a Cambodian patriot'


PHNOM PENH (AFP) — The former Khmer Rouge prison chief told Cambodia's UN-backed war crimes trial on Tuesday that the regime leader Pol Pot "had blood on his hands" as he pitted his country against neighbouring Vietnam.

"I did not think of Pol Pot as a patriot. He had blood on his hands. Pol Pot used the slogan that if we wanted to defeat the Vietnamese we had to be clean in our ranks and clean in ourselves," Duch told the court.

Duch is accused of overseeing the torture and extermination of some 15,000 people who passed through the notorious Tuol Sleng prison, also known as S-21, during the late 1970s regime.

"In that conflict Pol Pot was a murderer, and more than one million people were killed under the hand of Pol Pot. At S-21, my hand is stained with the blood of people killed there," said Duch, whose real name is Kaing Guek Eav.

Duch was responding to testimony by Nayan Chanda, former editor of the Hong Kong-based Far Eastern Economic Review, who spoke of how the Khmer Rouge's 1975 communist revolution descended into a bloody territorial conflict with Vietnam.

Duch said that Chanda had mis-named his book about infighting between Asia's communists, "Brother Enemy," because Cambodia regarded Vietnam as a rival.

"The title of your book is 'Brother Enemy'. If you talked about Korea, then I would support it. They have a joint history, they have a joint territory and they have a joint language," Duch said.

"As for us and Vietnam, we never had any joint territory."

Duch, who faces life in jail for alleged crimes against humanity, apologised at the start of his trial in late March for his role in the regime, but maintains he never personally executed anyone.

Khmer Rouge leader Pol Pot died in 1998, and many believe the tribunal is the last chance to find justice for victims of the regime, which killed up to two million people.

The tribunal was formed in 2006 after nearly a decade of wrangling between the United Nations and the Cambodian government, and is scheduled to try four other senior Khmer Rouge leaders.

Cambodia urged to improve business environment

Cambodia urged to improve business environment

The Phnom Penh Post
Written by Nathan Green AND Chun Sophal
Tuesday, 26 May 2009

UNDP, World Bank and International Finance Corporation reports call on Kingdom to address underlying weaknesses in economy to fight downturn.




Photo by: Tracey Shelton

The UNDP said Monday that Cambodia needs to widen its skills base beyond labour-intensive industries such as textiles.

CAMBODIA urgently needs to improve its business environment and reform its education system to boost its competitiveness and sustain economic growth, said three reports released Monday.

Qimiao Fan, country manager for the World Bank, which released an assessment of Cambodia's investment climate with the International Financial Corporation (IFC), said the global economic crisis had increased pressure on Cambodia to address "chronic" problems in its business environment.

"When the economy was growing at almost 10 percent per year between 1998 and 2007, business environment problems did not seem as serious as they do now", he said. "But now with the global economic crisis significantly impacting Cambodia, continued problems in the business environment may force firms to go out of business and investors may choose to postpone investment or move to more business-friendly countries."

The World Bank's second Investment Climate Assessment showed that corruption was the most pressing concern among 500 entrepreneurs in Phnom Penh, Siem Reap, Sihanoukville, Battambang and Kampong Cham provinces, as it was for a similar survey released in 2003.

Macroeconomic uncertainty ranked as the second-biggest concern, higher than in 2003 because of deteriorating conditions in the global economy.

Anti-competitive practices were the next most pressing issue, followed by economic and regulatory uncertainty.

The report offered five key lessons for improving the business environment. Firstly, it said reforms succeeded when driven by government leaders, international commitments and private sector demand.

Secondly, reforms needed to be tested as pilots, monitored and evaluated, and - if successful - scaled up.

Thirdly, reforms required careful planning, deadlines, coordination and evaluation.

Next, reform of the civil service, which has proven successful in small pilots, should be scaled up. Finally, through the Government-Private Sector Forum, the private sector can play a major role in identifying needed reforms.

The IFC also released its second Provincial Business Environment Scorecard (PBES), published in conjunction with The Asia Foundation, which surveyed business owners in Phnom Penh, the capital cities of Cambodia's 23 provinces and other selected urban areas.

The report showed Kampong Cham province had the best business environment, as was the case in the first PBES survey in 2006, while Phnom Penh ranked last. Sihanoukville and Siem Reap moved from near the bottom in 2006 to the near top in 2009 by making significant advances in the time and cost to start a business, property rights, transparency of regulations and crime prevention.

"Overall, PBES 2009 results show that firms are more likely to expand their businesses if provincial administrators reduce informal charges, prevent crime more effectively, make it easier for entrepreneurs to start businesses and also make it easier for business owners to pay their taxes," said Julia Brickell, IFC's resident representative in Cambodia.

Speaking at the launch of the reports, Finance Minister Cham Prasidh acknowledged that the global economic crisis had increased the importance of providing better access to finance, information on regulations and procedures, export opportunities, reliable dispute resolution procedures, and efficient and transparent government services. "We need to build a conducive environment for business so that businesses can compete in international markets," he said.


--------------------------------------------------------------------------------

It is now imperative for these changes to be made; it is not a choice.

--------------------------------------------------------------------------------

The UN Development Programme (UNDP) also focused on Cambodia's competitiveness in a report released Monday that ranked the country near the bottom among southeast Asian countries.

More skills required
Brooks Evans, an economist in UNDP's Insights for Action Initiative (IFA), which authored the report, said one of the recurring themes was the need for an urgent overhaul of Cambodia's human-resource policy.

"The lack of skills or a highly trained workforce is one of the most commonly cited constraints by businesses," he said. "In terms of higher education and training, Cambodia is the biggest laggard in ASEAN. It has a serious lack of highly trained workers and this is something that requires urgent prioritisation."

While the global economic crisis had not affected the policy changes required, it had increased the stakes, he added.

"The focus of the study is on the medium- to long-term policy options Cambodia needs to provide for economic and human development growth, but the economic crisis means the country needs to act now," he said. "It is now imperative for these changes to be made; it is not a choice."

Govt responds angrily to reports of planned Preah Vihear replica

Govt responds angrily to reports of planned Preah Vihear replica

The Phnom Penh Post

Written by Cheang Sokha
Tuesday, 26 May 2009

Thai media say a copy of the famed temple is on the horizon, while Cambodian officials threaten to complain to UNESCO.



Photo by: TRACEY SHELTON

Cambodian soldiers at the Preah Vihear temple complex earlier this month.

CAMBODIAN officials have reacted strongly to Thai media reports that the country plans to build a replica of Preah Vihear temple along the border, saying it could violate international law.

Chuch Phoeun, secretary of state at the Ministry of Culture and Fine Arts, said that Preah Vihear's status as a UNESCO World Heritage site prohibited the construction of any building surrounding the temple site.

"It is impossible to replicate the temple without permission from the country that owns it," said Chuch Phoeun. "This is an intentional attempt by the Thais to stir up Cambodia because they are jealous of [us]." Chuch Phoeun added that if Bangkok violates the law, Cambodia will report it to UNESCO.

Thai media on Monday reported that Thailand planned to build a copy of the disputed 11th-century temple as a tourist attraction, and that local authorities had been ordered to undertake a feasibility study before the project begins.


--------------------------------------------------------------------------------

It is impossible to replicate the temple without permission from [the govt]

--------------------------------------------------------------------------------

The rumoured Thai plans are the latest shot fired in a border dispute that has been simmering since UNESCO listed Preah Vihear temple as a World Heritage site in July last year.

ASEAN urged to act
Ahead of the 17th ASEAN-EU Ministerial Meeting, which kicks off Wednesday in Phnom Penh, the Cambodia Watchdog Council (CWC), a local civil society group, called on ASEAN and EU officials to address the ongoing border standoff.

In a statement Monday, the CWC claims that since July 15 last year, Thai soldiers have continually violated Cambodian territory, but that numerous bilateral negotiations have failed.

"The ASEAN and EU members present for this two-day meeting have to raise the issue of Thai incursions into Cambodia," the statement said.
But Foreign Ministry spokesman Koy Kuong said the Thai-Cambodia border standoff was not on the agenda for the meeting.

"We're not going to stop civil society from expressing their concern on this issue, but the government's principle is to resolve the conflict peacefully and bilaterally," he said.

Thai Prime Minister Abhisit Vejjajiva is scheduled to visit Cambodia on June 12-13, when he is expected to hold border talks with Prime Minister Hun Sen.

Reform needed to reduce Cambodian poverty

Reform needed to reduce Cambodian poverty
By Chak SopheapGuest Commentary
May 13, 2009

Niigata, Japan —
Cambodia is among the world’s poorest countries. While parts of the economy are making considerable progress, more than 30 percent of the population still live in extreme poverty. Though the government has proposed many strategies – the Poverty Reduction Strategy Program, Cambodia Millennium Development Goals and the National Strategic Development Plan – there is little progress in improving people’s living standards.

On the U.N. Development Program’s Human Development Index (2007-2008), Cambodia is ranked 131 out of 177, just above Myanmar but below Laos. This is a slight improvement over 1995-2005. Cambodia’s economic growth rate has been in double digits in the past few years, which has helped reduce poverty from 34.8 percent in 2004 to 30.1 percent in 2007, according to World Bank figures.

Prolonged civil conflict, internal displacement and discriminatory development processes are the main causes of poverty in Cambodia, made worse by high population growth. Poor people face inadequate opportunities, low capabilities, insecurity, exclusion and vulnerability. Although more than 70 percent of Cambodia’s population is employed in agricultural production, between 12 and 15 percent have no agricultural land.

This figure could be even higher with the current speculation, land-grabs and evictions for both rural and urban communities. Also, most peasants work small land holdings that don’t even provide enough food for their own consumption.

Apart from land, many families face a shortage of capital and a lack of knowledge and skills. They lack access to other natural resources such as forests and fish. Poor health is another major cause of impoverishment and other forms of social deprivation. The cycle of poverty, ill health, and high healthcare costs cripples poor Cambodian families.

The poor have little access to basic social services and facilities, with many living in remote areas. Illiteracy is also a barrier, as the poor are excluded from the development process.

Women in Cambodia do not enjoy equal access to education, paid employment and ownership of land and other property. Ethnic minorities are disadvantaged due to lack of representation at the management and legislative levels, and because of language barriers.

Lack of access to government information and decision making has prevented the poor from participating in community activities, contributing to gaps between government policies and their implementation. Also, the poor are not able to understand the law, unaware of their rights and vulnerable to exploitation and corruption.

Government policies aimed at reducing poverty will not work without collaboration from grassroots people, civil society organizations and donor communities.

An active grassroots civil society would ensure that citizens’ diverse voices are articulated and heard by local governments. It would also act as a check on local government action and ensure that it complies with the wishes of citizens – a community-based monitoring function that enhances accountability. Both roles would promote pro-poor governance.

Poverty reduction is one of the mandates of international institutions such as the World Bank and the International Monetary Fund, and has become their joint focus since 1999. Their continued financial and technical assistance is crucial to both government and civil society organizations.

There are huge grants from major donor countries and agencies that prioritize agricultural and rural development, human rights issues, decentralization, disability and rehabilitation, disarmament and demobilization, education, electoral reform, fishery and forestry sectors, gender and women’s participation, governance and transparency, health and HIV/AIDS, landmines and unexploded ordinances in affected communities, land reform, microfinance, resettlement and rights of affected people and the rule of law. If these sectors are effectively implemented they will contribute to poverty reduction.

Since the early 1990s NGOs in Cambodia have been heavily involved in post-conflict reconstruction, emergency relief work, repatriation and resettlement of refugees, and assisting with the implementation of basic services and infrastructure. NGOs work hard under difficult conditions in many sectors and geographical areas where the Cambodian government has outsourced, ignored or failed to provide assistance.

Despite their contributions to government policies, the activities of some such groups – especially those that advocate civil rights or fight corruption – are obstructed or denied by the government in the name of protecting national security and social order.

The central issue here is thus a lack of cooperation between the government and civil society organizations. For donor agencies, there is no communication and coordination so funds can be channeled properly to avoid task duplication, and no common fund-requesting procedures to facilitate the organizations’ work.

In addition, there are donor-driven agendas to which NGOs often have to conform to maintain their funding. Such shifts may not be appropriate for the NGO in terms of expertise, or for the particular development needs of the various communities. They also create conflicts of interest among civil society organizations in approaching the funding sources, which ultimately contributes to a lack of collaboration between them.

Furthermore, there are many challenges for grassroots people to exercise their role. A small oligarchy of high-ranking government officials, army generals and rich entrepreneurs are dominating the country politically, socially and economically. The National Assembly and the Senate do not fulfill their functions effectively and hardly take any initiative on their own. The judiciary system, which is not dependent from the executive power, provides the rich and mighty with impunity. All TV channels and most of the radio stations and print media are controlled by the government and do not report fairly on the opposition parties.

The corruption rate is very high in Cambodia; corruption is one of the main sources of human rights violations and poverty determinants. Instead of being properly consulted, rural and urban community leaders are intimidated and pushed aside. In most cases, the courts do not protect their rights to fair trial. Grassroots activists who try to resist are arrested and charged excessively.

The poorest and most disadvantaged parts of society have limited opportunities to exercise their civil and political rights. They neither know about their rights nor how to advocate for them. The failure of the authorities in protecting their rights, and the excessive use of force by security forces, sometimes lead to counter-violence. Thus it is necessary for civil society organizations and donor communities to lobby the government for administrative and judicial reforms and empower the grassroots in order to tackle poverty and violence.

Poverty reduction requires a strong government role with collaboration from civil society. The Cambodian government should first work toward a clean, highly competent and courageous leadership. Second, Cambodia must develop a highly educated, development-oriented, non-corrupt, efficient bureaucracy. The National Assembly should enact laws against corruption and should strictly carry out such laws.

Third, all civil society and government stakeholders interested in the development of the country should work toward a culture of mutual collaboration, through extensive community consultation, rather than through pressure exerted by powerful groups or lobbies.

Ultimately, the Cambodian government should enforce reforms of the administrative, legal and judicial, military, economic and financial branches to improve living conditions of the Cambodian people. Only if these reforms are implemented will poverty reduction policies be feasible.

--

(Chak Sopheap is a graduate student of peace studies at the International University of Japan. She runs a blog, www.sopheapfocus.com, in which she shares her impressions of both Japan and her homeland, Cambodia. She was previously advocacy officer of the Cambodian Center for Human Rights.)

Independence of the Bar in Cambodia

Letter from Lawyers’ Rights Watch Canada to the Cambodian Bar Association: Independence of the Bar in Cambodia

Lawyers’ Rights Watch Canada



NGO in Special Consultative Status with the Economic and Social Council of the United Nations
3220 West 13th Avenue, Vancouver, B.C. CANADA V6K 2V5
Tel: +1-604-738-0338 Fax: +1-604-736-1175
lrwc@portal.ca www.lrwc.org


21 May 2009

Chiv Song Hak, President, Bar Council
Members of the Bar Council
Bar Association of the Kingdom of Cambodia
Nº. 1011Eo, Croix Rouge Khmere (St. 180)
12211 Phnom Penh Cambodia
Fax 023 213 658
Email to: cilf@online.com.kh, wengkaly@yahoo.com, hbslawfirm@hotmail.com, ntrbno@online.com.kh, mathoeung_sok@online.com.kh

Dear Mr. Chiv Song Hak and Members of the Bar Council,

RE: Independence of the Bar in Cambodia


I am writing on behalf of Lawyers' Rights Watch Canada (LRWC), a committee of Canadian lawyers who promote human rights and the rule of law internationally by providing support to lawyers and other human rights defenders in danger because of their advocacy.

We wish to offer our moral support to the Bar Association of the Kingdom of Cambodia in fulfilling its function to uphold and defend the independence of the legal profession from interference by those acting on behalf of members of the executive branch of government.

As you know, the independence of the Bar is protected by Article 1 of the Law on the Bar, which states: “The lawyer’s profession is an independent and autonomous profession involved in serving justice and may only be pursued from within the framework of the Bar Association.” In addition, Article 1 of the Code of Ethics for Lawyers Licensed with the Bar Association of the Kingdom of Cambodia states in paragraph 3: “Professional installations must assure the respect for the principles of dignity and independence and guaranty professional confidentiality.” These provisions are consistent with the UN Basic Principles on the Role of Lawyers (1990), which uphold the basic purpose of the principle of the independence of the bar, which is to protect clients' legal rights, particularly their human rights, which are also specifically upheld by Cambodia’s Constitution. The UN Rules and all other international principles concerning lawyers and the rule of law insist that lawyers must be free to accept cases and represent clients regardless of the political causes or affiliations of the client. Lawyers must be free to take cases to independent courts for impartial adjudication without interference from politicians or other embers of the executive.

It has been drawn to our attention that Mr. Ky Tech, a lawyer who we understand represents Prime Minister Hun Sen, has made a complaint of professional misconduct against a lawyer, Mr. Kong Sam Onn. We understand that Mr. Kong has been retained by Ms. Mu Suchua, an opposition Member of Parliament, to represent her in a case of defamation she has instructed to be filed against Prime Minister Hun Sen regarding defamatory statements Ms. Mu alleges Mr. Hun Sen made against her. We understand that Prime Minister Hun Sen has made a counter claim of defamation against Ms. Mu Suchua, as well as her lawyer, Mr. Kong Sam Onn. The particular facts of this case in the Cambodian context provide us with significant concern that the complaint against Mr. Kong Sam Onn may be based not on any legitimate concern about Mr. Kong’s professional conduct. Rather we are concerned by allegations and an appearance that the allegations against Mr. Kong are intended to influence the course of the defamation case.

We understand that the BAKC has commenced an investigation into Mr. Kong Sam Onn’s conduct, which could lead to serious disciplinary actions including Mr. Kong Sam Onn's debarment. We understand that the matter is now before the BAKC Disciplinary Council.

We sincerely and respectfully hope that the BAKC and its Disciplinary Council will not be used inappropriately in any attempt by the executive branch of government to harass or influence a lawyer who is performing his professional duties on behalf of his client. We also hope that the BAKC will not be subject to any undue influence in its own deliberations or findings. We join with others concerned about the independence of the bar and the rule of law in Cambodia in urging the BAKC to ensure that it does everything possible to uphold its independence and withstands any and all external pressure. Since the complaint to the BAKC appears to be interconnected with the defamation counterclaim that has been lodged against Mr. Kong Sam Onn, we respectfully suggest that the BAKC consider holding any investigation in abeyance until the court has made its findings in the defamation case. We also urge the BAKC to take all possible steps to ensure that Mr. Kong receives a fair and impartial trial.

As lawyers, we wish to offer our support to Members of the BAKC Bar Council in their important work to uphold the dignity and independence of the legal profession. Please feel free to contact us at any time.

Yours sincerely,

Gail Davidson
Executive Director
Lawyers’ Rights Watch Canada

cc. Mr. Suon Visal
Secretary General,
Bar Association of the Kingdom of Cambodia
Phnom Penh, Cambodia email: suonvisal@yahoo.com

cc. Mr. Ky Tech,
Lawyer
Former President,
Bar Association of the Kingdom of Cambodia
Phnom Penh, Cambodia email: kytech_clf@citylink.com.kh

cc. Mr. Say Bory
Former President
Bar Association of the Kingdom of Cambodia
Phnom Penh, Cambodia, snlo@online.com.kh

cc. Mr. Sok Sam Oeun,
Lawyer,
Cambodia Defenders Program
Phnom Penh, Cambodia email: cdp@cdpcambodia.org

cc. Mr. Run Saray,
Lawyer,
Legal Aid Cambodia
Phnom Penh, Cambodia email:

25 May, 2009

Thailand: The sanctity of law

The sanctity of law

The Sun Daily
Sonia Randhawa


OVER the last year, we’ve seen scenes of chaos, anger and mayhem. People stranded for days at airports, high level government meetings postponed and the near collapse of a political system.

Thailand is a sobering example of a flailing democracy.

To prevent a recurrence of the Thai calamity, it might be sobering to look at the roots of the crisis.

Prime Minister Thaksin Shinawatra came to power with a huge mandate. In both urban and rural areas he was greeted with massive support. There were, inevitably, some murmurings of unrest, academics and journalists who were a little unhappy about the concentration of economic, social (particularly through the media) and political power that he represented. But they were a minority, and were to a large part ignored. And initially it seemed with good reason.

Thaksin increased his popularity and power with economic reforms, directed at the rural sector, which became the bulwark of his support. His disturbing campaign against crime, resulting in widespread extra-judicial killings, was also greeted with widespread support, even if it violated the rights (including right to life) of a couple of thousand people. Something was being done. But it was just part of an increasingly disturbing picture.

The larger picture showed this as just one part of an increasing disregard for Thailand’s 1997 Constitution. The administration’s treatment of the media – the increasing concentration of ownership and refusal to institute the National Broadcasting Commission which would have dispersed this concentration – were also symptomatic. Thaksin was also perceived to be perverting the independence of the judiciary. And the urban elites were not the only ones to be concerned that Thaksin was undermining the legitimacy of the very institution from which he derived his power – the constitution.

It was this perception that led to the popular (urban) support for the coup of 2006. It may well have been one of the factors behind the coup itself. Of course, this in turn tumbled the house of cards. It was almost impossible for the new system to have popular legitimacy. The generals wanted to ensure that Thaksin would, and could, not return. The mass of the population still supported him, his policies and his party. But it should be remembered that the current prime minister came to office not on the power of protests, but due to a court decision on corruption. It was the courts that paved the way for his ascension.

The problem by this point was that the courts were seen as massively compromised. They were placed in the impossible position that whatever decision they made in these highly political corruption trials, the decision would be perceived to be unjust, to be politically motivated. The independence, impartiality and fairness of the judiciary, having been tainted under Thaksin, was completely compromised. Various authors have pointed out that the judiciary could have escaped the problem, they could have referred these cases to other bodies (such as oversight committees, electoral bodies and the like), and retained their impartiality. They chose not to. And the result has been that the judiciary is tarred.

And this is bad for Thailand, for the Thai people and for those in power. Because there is nowhere that legitimacy unquestionably resides. The one possible exception in Thailand is the monarchy, but the inability of the people to discuss the role of the monarchy coupled with the unease of the king’s role and the king’s inactions in the various political dramas are eroding faith in this one previously unassailable institution.

It’s hard to see a way forward. The only path is to rebuild faith in all the institutions of government, from the constitution onwards. There is an urgent need to rebuild legitimacy, to rebuild faith in the judiciary, in the police force, even the medical services.

Perhaps the main lessons for Thailand’s neighbours are to not let things come to this impasse.

Ensure that the institutions of government – the judiciary, the police, the army – are seen as impartial, apolitical and equally accessible to all. To ensure that the monarchy remains untainted with political machinations. And, above all, to uphold the supremacy of the constitution and the rights enshrined within it – the right to life, the right to freedom of speech, the right to legal representation. And the right to a legally elected representative democracy.


Sonia thinks liberty and equality are the only real guarantors of security. Comment: letters@thesundaily.com

GMAC, union reject workers' pay report

GMAC, union reject workers' pay report
The Phnom Penh Post
Written by Chun Sophal and Hor Hab
Monday, 25 May 2009


A RECENT report that claims a liveable minimum wage for garment workers in Cambodia should be US$90 per month has been criticised by both trade unionists and employers.

The Garment Manufacturers Association of Cambodia (GMAC), which represents about 250 garment factories, and the Free Trade Union (FTU), representing 80,000 garment workers in Cambodia, rejected the findings of the report released Wednesday by the Cambodia Institute of Development Study (CIDS).

The study of 353 workers in 47 factories around Phnom Penh showed garment workers could maintain a good standard of living providing they earned at least $90 per month.

The current minimum wage for a garment worker is $50 per month, although workers can earn up to $66 per month with bonuses and allowances, plus more for overtime.

Cheath Khemara, labour issue officer at GMAC, said Sunday the association could not accept the study because the research was based on garment workers' expenses and did not take into account the worker productivity needed to keep factories profitable.

"It's not a good thing that they wish to raise workers' wages while their productivity is still low," Cheath Khemara said.

"If our workers had high productivity to help factories earn more profit, factories would be able to increase their wages to a higher level."

He said the financial crisis and informal expenses were already of great concern to garment factories, and the push for higher wages would create an additional threat to the sector.

Chea Mony, president of FTU, said Sunday he did not agree with the findings because they did not align with real inflation.

"We would never consider that a $90 wage is a suitable living wage for workers, because they have to spend a lot on their healthcare, children, clothes and other things," Chea Mony said. "We don't reject the research statistics, but we hope CIDS can help garment workers ask for wage rise to align with their research study.

"I think garment workers could have a suitable standard of living as long as they could get more than $100 per month," Chea Mony said.

Tun Sophorn, National Coordinator for International Legal Organisation Cambodia, said Sunday that although the research conducted by CIDS showed what was needed for garment workers to have good living conditions, it was not easy for employers to increase salaries to the required level while they faced constraints from the economic crisis.

"I think it will be difficult for factories to meet workers' demands based on this research, but I hope that this suggestion can be met if the economic situation improves in the future," Tun Sophorn said.


--------------------------------------------------------------------------------

We hope that if garment workers received $90 ... per month, they would be motivated to work harder.


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The CIDS study, conducted with support from German NGO Friedrich Ebert Stiftung, showed basic expenses such as food, transportation, clothing, and healthcare for each worker was $72 per month, which included $57 for personal expenses and $15 for family.

However, a wage of $72 per month would not be sufficient as a livable wage, the report said.

CIDS Director Kang Chandararot said Sunday the research aimed to provide a clear picture of the situation for garment workers. Both unions and GMAC could use this in negotiating a suitable wage for workers, he added.

"Our main purpose is to contribute to the sustainable development of the garment sector in order to compete with other countries in the future," Kang Chandararot said. "We hope that if garment workers received $90 in wages per month, they would be motivated to work harder to increase their productivity and may not think of going on strike."

He said some factories were currently having difficulty finding workers because they offered low wages.

Last week, four large federations representing 80 percent of garment workers in the country demanded employers and the government pay wages of $93 per month.

The Committee for Fair Wages said Wednesday that a wage of $50 a month was insufficient.

PULS Trading Far East Limited, a company that represents major international clothing brands in Cambodia including Adidas, Mike, Levi's and Gap, said it hoped that the government would persist with the exisiting wage structure while the economic crisis was hurting the garment industry. It added that it would, however, comply with a change should an updated wage law come into force.

Local authorities warn about building Preah Vihear replica

Local authorities warn about building Preah Vihear replica

SI SA KET, May 24 (TNA) – Provincial authorities have warned the private sector to conduct a thorough study, including an impact assessment on the issue of Thai-Cambodian relations, before deciding to build a replica of the Preah Vihear temple in the northeastern Thai border province.

Si Sa Ket governor Rapi Pongbuphakit said he supported any constructive idea to develop the area but the idea to build the replica of the Preah Vihear temple at Pha Mor E-daeng, an area close to the stairway leading to Preah Vihear temple, needed a special and thorough study.

The issue was very important, especially in the aspect of environmental concerns and border security, he said. He added he couldn’t tell if he agreed with the idea or not at the moment.

Although the planned construction site is in Si Sa Ket’s Kantharalak district, it is not far from the Preah Vihear temple.

An international court awarded Preah Vihear temple to Cambodia in 1962, but a 4.6-square km (1.9-square mile) parcel of land surrounding it remains the subject of territorial claims by the two countries.

The disputed area, adjacent to the ancient temple, has long been a source of tension between Thailand and Cambodia.

Meanwhile, Vichit Trisaranakul, chairman of the provincial administrative organisation said detailed feasibility studies were needed. The real Preah Vihear and its history attracted tourists. He suggested beautifying the surrounding location was better than building the temple replica, close to the real temple. (TNA)

A Cambodian soldier killed by a landmine

May 24, 2009
Mine blast kills soldier

PHNOM PENH - A CAMBODIAN soldier was killed and two civilians were injured in a landmine blast near a disputed part of the border with Thailand, the military said on Sunday.
The incident happened on Saturday around 20 kilometres (12 miles) from an 11th century temple at the centre of a sometimes bloody territorial dispute between the two countries.

'The soldier was helping local people get rattan (cane used for furniture) near the border,' said Cambodian Lieutenant General Som Bopharoath, who is stationed in the area.

'The soldier died instantly. Two civilians were injured and were sent to hospital nearby,' he said.

Cambodia and Thailand have been at loggerheads over the land around the Preah Vihear temple for decades, but tensions spilled over into violence last July when the temple was granted UN World Heritage status.

Seven Thai and Cambodian troops have been killed in recent months during sporadic fighting between the two sides.

The border between the two countries has never been fully demarcated, in part because it is littered with landmines left over from decades of war in Cambodia. -- AFP

23 May, 2009

Thai Deputy PM: Cambodia not issue passport to Thaksin

Thai Deputy PM: Cambodia not issue passport to Thaksin


www.chinaview.cn 2009-05-22 16:23:18 Print

BANGKOK, May 22 (Xinhua) -- Cambodia did not issue passport to ousted former premier Thaksin Shinawatra, according to Cambodia's Prime Minister Hun Sen, Thailand's Deputy Prime Minister Suthep Thuagsuban told reporters Friday.

"I was told by Cambodian Prime Minister Hun Sen himself that there was no issuing a passport for Thaksin," the website by The Nation newspaper quoted Suthep as saying.

Suthep was reacting to remarks by opposition Pheu Thai Party MPChalerm Yoobamrung, who earlier said Thaksin showed him the Cambodian passport among six or seven passports during their meeting last week in Dubai.

Thaksin was ousted by the military coup in September 2006 in accusation of corruption, keeping him in exile since then. Thaksin returned to Thailand in February 2008 to face corruption charges, but he later fled into exile again and was convicted in absentia.
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