Wednesday, January 14, 2009

Inflation falls for December


Meat vendors in the Central Market. Cambodia’s sky-high inflation has come down, according to government data. Photo by: Sovann Philong

Wednesday, 14 January 2009
Written by Hor Hab and Chun Sophal
The Phnom Penh Post

13.4% - Cambodia's inflation rate
Lower fuel prices and a strong harvest are leading to lower inflation in Cambodia. The government expects inflation to fall to nine percent as lower crude costs translate into savings at the pump.
Lower petrol prices, increase in agricultural production contributed to lower inflation, with consumer price index down by two percentage points
Cambodia's inflation rate dropped to 13.46 percent in December 2008, down more than two percentage points compared with November's 15.74 percent, according to a government report released Tuesday.

Minister of Planning Chhay Than told the Post that falling petrol prices, a strong harvest and better fish catches were the main factors behind the drop.

"We think that inflation will decline further this January because the local food supply has been increasing," he said.

The major group index for food, beverages and tobacco fell 2.06 percent in December, and the index for the food sub-group decreased 2.23 percent on lower rice, pork, chicken, beef, fresh fish and leafy vegetable prices, according to the monthly consumer price index report by the National Institute of Statistics (NIS), a division of the Planning Ministry.

Price increases were recorded for cigarettes, which rose 3.16 percent; clothing and footwear, up 0.09 percent; and housing and utilities, up 0.57 percent, the report said.

The report is welcome news for a country that faced more than 30 percent inflation in the middle of 2008.
"Inflation is no longer a big problem in Cambodia, and lower prices will begin to benefit producers and consumers," said Chan Sophal, president of the Cambodia Economic Association.

He said that a strong harvest had flooded the markets with inexpensive products, which helped to drive down prices.
Lower petrol prices had been the major factor behind the price drops, he said.

"An inflation rate of over 10 percent is high in terms of the macroeconomy, but it is not a problem in our country because we are [commodities] producers," said Chan Sophal.

However, he said that a healthy rate of inflation is needed to keep the public spending.

More drops expected
Since October, Hang Chuon Naron, secretary general of the Ministry of Economy and Finance, predicted that inflation will drop to nine percent in early 2009 if crude oil stays below US$70 per barrel.

International crude is currently at $37.22 per barrel.

Yim Sovann, Sam Rainsy Party lawmaker, said falling growth in national income means that inflation is still eating into wages and savings.

"It can be good for the standard of living if inflation is double digits and the economic growth rate is higher, but if economic growth is five or six percent and the inflation rate is 13 percent, people will be worse off," said Yim Sovann.
"Inflation should be below the economic growth rate," he added.

The consumer price index fell 1.96 percent in the fourth quarter of 2008, on the back of a 1.78 percent increase in the third quarter. For the year, the index increased 19.69 percent in 2008, up from a 5.85 percent increase in 2007 and 4.71 percent in 2006, according to the December price index report.

A separate commodities report by the Ministry of Commerce's Trade Promotion Department recorded lower prices almost across the board.

Steel prices were down the most at 89.56 percent, according to the January 6 report.
Some agricultural goods increased sharply, according to the report.

Bananas were up 30 percent, pineapples 25 percent, oranges 15 percent and cucumbers 14 percent.

Global inflation has been dropping, largely due to falling oil prices and a slower economy.

Green light to evict Dey Krahorm residents: city officials, developer


Wednesday, 14 January 2009
Written by Chhay Channyda
The Phnom Penh Post

7NG says it bumped up cash compensation offered to families remaining in Dey Krahorm slum as final offer ahead of eviction.

PRIVATE developer 7NG and the Phnom Penh Municipality announced they have the green light from the government to forcibly remove the remaining residents of the embattled Dey Krahorm community, but sweetened the threat of eviction with an improved offer of compensation for those who go willingly.
"If you agree, we will negotiate," Phnom Penh Deputy Governor Mann Chhoeun said during a roundtable discussion on the "development of Dey Krahorm solutions", which was organised Tuesday by the Club of Cambodian Journalists at the Sunway Hotel.

He said a final notice of eviction has been issued several times, but none of the remaining residents have moved - paving the way for legal action by authorities.

For the 91 families remaining, 7NG has set aside US$1,820,000 - or $20,000 per family - if they do not want the alternative housing being provided in the Damnak Trayoeng area on the outskirts of Phnom Penh, he said.

"But $20,000 is only a price for today. If they do not accept until we remove them, we will give them the old offer of $15,000," he said.

No date for an eviction was announced.

An estimated 800 to 1,400 residents lived in Dey Krahorm before the old community leaders signed a contract with 7NG in 2005, giving it the 3.6- hectare property in return for building relocation houses in Damnak Trayoeng village.

Srey Chanthou, 7NG's managing director, said the bumped-up compensation offer was a last-ditch effort, before sweeping the area, that was suggested by city officials.

"We announced $20,000 last night [Monday] to residents. No one has contacted us yet. Our policy is to solve the problem peacefully," he said.

Chan Vichet, a representative of the remaining Dey Krahorm families, said the offer of $20,000 by city hall and 7NG on Monday evening demanded too quick a decision for residents.

"It is far too fast for us to think about whether or not we will accept it. We want the authorities to give us time."

Too late to bargain?

The leverage of the estimated 91 families still living in Dey Krahorm to negotiate compensation remains contentious among local observers.

According to David Pred, director of the NGO Bridges Across Borders, the residents of Dey Krahorm are lawful possessors of their homes under the Land Law, and therefore the only way to relocate them is to negotiate a fair price they will accept.

"Intimidation, violence, arrest, force, prosecution have been used [to force people to leave] Dey Krahorm over the last three years," he said.

But Chhim Phalvorun, director of the Institute for Civil Education, called into question the residents' legal claim to the land and said they should not demand more than is required to acquire different homes.

"They know they are not legal owners. So, the demand is far beyond their right."

Dey Krohom: Residents must present united front in the face of upcoming eviction


Phnom Penh (Cambodia).13/01/2009: Mann Chhoeun, vice-Governor of Phnom Penh, at a roundtable organised by the Club of Cambodian Journalists on Dey Krohom. On the left handside, one of the sons of Srey Sothea, who owns the 7NG company (Photo: John Vink/ Magnum)

13-01-2009
By Ros Dina
Ka-set in English
Click here to read the article in French
Click here to read the article in Khmer


Late July 2003, an urbanisation plan established by the municipality of Phnom Penh provided that the residents of the Bassac settlement, in the heart of Phnom Penh, be grouped on part of the area known as “Dey Krohom” (“Red Lands”) and enjoy the possibility of getting ownership rights. But three years later, the villagers of the Red Lands were informed by a municipal circular that they were going to be evicted. A long struggle started between them, the local authorities and the 7NG company, who was granted the land to build a residential tower and a shopping mall. On 30th December, the dozens of families still opposed to leaving under the current conditions were expected to be forced out. But the threat has not been acted upon yet. The land dispute has drawn out for years but now seems to be closer to the end.
Since 2006, when they found out they had to give way for the 7NG company, the villagers of Dey Krohom have kept repeating they would sell their land for its real market value, not for the slashed price offered to them. They have also recalled the government's commitment to allow them the on-site development of their community. Their words have hardly changed but in this protracted conflict, 1,374 out of the initial count of 1,465 families have already left, that is 93% of them. They have accepted monetary compensations or relocation in the village of Damnak Trah Yeung, in the Dangkor district, over twenty kilometers West of Phnom Penh.

The Club of Cambodian Journalists invited Mann Chhoeun, the deputy governor of Cambodia's capital, to express his views on the situation on Tuesday 13th January. He disclosed the latest offer made by 7NG, that is 20,000 USD – plus food supplies and indemnity for the move – for each of the uncompromising families in exchange for their departure – an increase of 5,000 USD from the previous offer – under the essential requirement that all of the families accept this solution. Srey Chanthou, the director of the company, affirms that the offer was communicated to the residents on the evening of the previous day and is valid until Wednesday 14th January. A rumour says that on Thursday, the day following the expiry of the offer, the eviction of the residents will be actually ordered. Officially, it is expected to take place “in the very near future”.

An exercise in public relations
Mann Chhoeun performed a real exercise in public relations, complete with visuals to illustrate his words. A slide show presented the new environment of the resettled families in the village of Damnak Trah Yeung, where they enjoy running water, electricity, new bicycles they were able to buy on credit, several buses that provide shuttle service to the Demkor market (behind the Chenla theatre) nine times a day, a market, shops... and a nearby factory. The picture painted is one of residents happy in their frail 4m x 12m houses, all on the ground floor...

The deputy governor sent a message to the 91 remaining families, although community representatives claim there are 150 left, and warned that the company will not include in the negotiations the opportunists who have joined the group in the hope of also receiving compensation.

The official then depicted Dey Krohom as a “difficult” area, inhabited by drug addicts and hub of all kinds of traffic. An observer claimed in a low voice 7NG representatives were seen selling “glue” to villagers. As for the famous artists living in this small community – the chapey players Kong Nay and Ta Phe –, Mann Chhoeun alleged the company had solved their problem by offering them to be relocated in the Phnom Penh neighbourhood of Boeung Tampoun.

“We have not acted since the ultimatum of 30th December. The municipality – as the mediator between the company and the residents – has shown treasures of patience and demonstrated its willingness to handle the situation for the best,” Mann Chhoeun argued.

The accusations against 7NG
In the audience, David Pred, director of the NGO Bridges Across Borders Cambodia, contested the initial number of families in the community as shown in the presentation and asked why there was no mention of the corruption that reportedly marred the allocation of the housing lots in the resettlement village. The word “corruption” got lost in the translation into Khmer and Mann Chhoeun replied that if the activist questioned the inflated figure, it meant he was siding with the 7NG company.

David Pred then accused some former community representatives of pursuing their own personal interest, without any consideration for the villagers. The deputy governor pointed out that the residents had accepted their candidacy and had not prevented them from intervening in their name. When the representative of Bridges Across Borders then evoked how intimidation and violence had been used against the residents to sway them, Mann Chhoeun held in his hand a letter from 7NG in which the company instructs their lawyer to withdraw their complaint against one of the Dey Krohom residents, the owner of a coffee shop, who they accused of acts of violence. The deputy governor painted the residents as uncontrollable and rebellious people who did not hesitate to throw bags of urine and feces to 7NG representatives.

Bunn Rachana, from the organisation Housing Rights Task Force, then referred to the land law and asked why the villagers were not allowed to be resettled on site. Her question was answered by Chhim Phalvorin, director of the Institute of demography and specialist of the Cambodian Constitution, and second guest of the Club of Cambodian Journalists. He first observed that “sometimes, people ask for too much money for compensation, as if they were encouraged by others to do so.” He then recalled that Dey Krohom residents had written in 2003 to Prime Minister Hun Sen to ask to be allowed to remain there, which “proves that the residents were aware they had settled there in complete illegality.” The specialist insisted that an occupation is declared legal as long as it is based on a legal ownership title. “If this were the case, the residents could then be entitled to claim for financial compensation based on actual land market value.”

Pursuing his explanations, Mann Chhoeun stressed that the hypothesis of an on-site resettlement had been envisaged in a first time, under which half the land would be for the company and the other half for the residents. “However, the only way to provide a roof for everyone was to build a nine-floor building. But the residents said they did not want to live above the ground floor and further demanded an elevator. Who will pay for the electricity for the elevator? As the 7NG company had land available in the village of Damnak Trah Yeung, they offered to resettle the residents there.”

Undecided residents
On Tuesday afternoon, the residents met at the headquarters of the NGO Community Legal Education Center (CLEC) to discuss a new common strategy as things seemed to gather speed. The NGO representatives present advised them to negotiate a postponement of the eviction ultimatum set by the authorities, by communicating such request to the municipality of Phnom Penh and to 7NG. Their lawyer, Attorney Chiv Sambath, explained this would give them more time to agree on the amount of money they want to receive in exchange for their departure. He suggested they should advocate for the resumption of three-party negotiations as 7NG has made it clear that from now on, it will be the same price for everybody.

“It is starting to be very complicated because nobody has the same opinion. Only a couple of families have told me they would accept 7NG's latest offer of 20,000 USD. Those who own large houses still consider the offer not to be enough. I have probed the residents and their requests are between 30,000 and 60,000 USD. Also, some change their mind along the way, depending on what their neighbours are asking for... It is hard to agree on a consensus,” Chan Vichet, the representative of the families still opposed to leaving, explained by the end of the day.

Discussions between the residents were to continue throughout the evening. They are now in a race against time and more than ever, they must present a united front against the municipality and the 7NG company.