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Banking Reform in Cambodia

In: Business and Management

Submitted By homework123
Words 3320
Pages 14
Cambodia faced almost three decades of civil war and political unrest which have made Cambodia one of the poorest countries in the world. From April, 19975 to January, 1979, it was a genocidal regime in Cambodia, about 2 million people were killed; the population was about 7 million people during that time. Cambodia was brought back to year zero because almost everything was destroyed. Vietnam invaded Cambodia in late 1978, and completely took control the country on January 07, 1979. Vietnam installed Cambodian government and made Cambodia a communist country in Cambodian history, and also installed Mr. Hun Sen as a prime minister of Cambodia. Corruption, poor public institutions, high military spending, poor legal and judicial system keep Cambodia one of the poorest countries in the world for decades. In 1993, Cambodia tried to end the civil war by uniting all conflicting political parties through the historically first free and fair election in Cambodia, which was prepared by the United Nations.
Cambodia has deficit every year and survives by foreign aid and donations both financially and technically. In response to that, donating countries and international communities introduce good governance to Cambodia, which leads to administrational and institutional reforms. In this project, I am going to talk roughly about public administration reform, and more deeply about bank restructuring programs which play crucial rules in development of the economy of this poor country. After transforming from planning economy to free market economy, public administrational and institutional reform is one of the transforming processes. The government has tried its best to reduce excessive public employees by eliminating ghost employees, creating job descriptions and decentralizing local authorities. In bank restructuring programs, the government transformed one-tier banking system…...

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