T HE ASIAN F UTURE G ROWTH : A F EW T HOUGHTS ON THE C AMBODIAN E CONOMY IN THE ASEAN C OMMUNITY Plenary Session IV: Next Generation Views of the Future of Asia The 7 th Asia Economic Forum July 30-31, 2011 Raffles Le Royal Hotel, Phnom Penh By Chheng Kimlong 1

ASEAN IN 2015 AND B EYOND : B ENCHMARKS AND E NDS 1. ASEAN Community: Goals and Spirit - What AC Goals can be attained by 2015? Cultural, Political, Economic, Security, or Environmental? 2. ASEAN Economic Community: A Framework of Equitable Growth and Development? - How much is left to be achieved? 3. Millennium Development Goals: 8 Gems + 3 core values of development of Sustenance, Self-esteem, and Freedom - What Capabilities and Entitlements are to be given to people? (Amartya Sen) + One possible value: Physical and Mental Health 2

ASEAN VISION 2020 (a) A single market and production base HOW? Free Flow of Goods, Services, Investment, Capital, Skilled Labor; Priority Integration Sectors; Food, Agriculture and Forestry (b) A highly competitive economic region HOW? Competition Policy, Consumer Protection, Intellectual Property Rights, Infrastructure Development, Taxation, and E-Commerce (c) A region of equitable economic development HOW? SME Development; Initiative for ASEAN Integration (d) A region fully integrated into the global economy HOW? Coherent Approach towards External Economic Relations; Enhanced participation in global supply networks 3

C AMBODIA : L EARNING TO A CCEPT OR L EARNING TO C ATCH U P ? Q: How much have the Cambodian private sectors, the government, and households responded to the timelines and ASEAN economic commitments? AEC Blueprint: “CLMV: Human resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement.’’ 4

L EADING I NDICATORS : L EVERAGING THE S TRENGTHS OF AC? 1. Growing Entrepreneurship and its Dynamics (+) 2. Narrowing Knowledge and Education Gaps (+) 3. Labor and Employment Issues (+/-) 4. Research and Development (-) 5. Corporate Leadership vs. Social Leadership (-) 6. Corporate Social Responsibility (-/+) 7. Rising incomes and consumption (+) 8. Climate Change and Production (-) 9. Declining resource reserves (-) 10. Branding products and services that offer uniqueness (-) 5

E NTREPRENEURSHIP : L IMITATIONS AND P ROMISES  Entrepreneurship, an Engine of Growth and coordination of resources,  remains minimal at large,  tackles unemployment pressure and joblessness,  substantiates income growth and self-esteem,  transforms idle resources into active, productive inputs, and  expand wider economic opportunities.  Mentoring on business opportunity identification and how to master risk management is almost non-existent.  Capital and credits available and affordable are constrained. 6

K NOWLEDGE AND E DUCATION 1. Knowledge gaps among youths: Slowly Narrowed 2. Research centers, virtual research organizations, (social, economic, cultural, institutional, political, science, technology…): Weak and Limited 3. Knowledge creation and knowledge management tools and practices : Expensive and Exclusive Solutions:  Encourage writing (e.g.: essay competition, novels, reading/learning/training materials, and publisher)  Promote and reward public discussions, debates, and learning forums  Promote and reward reading cultures  Finance public education and promote quality  Promote research and research funding 7

N EXT G ENERATION V IEWS : C ORPORATE S OCIAL R ESPONSIBILITY B E E NHANCED Corporate philanthropies or funding by private businesses to support: 1. Employment and income growth 2. Research work and technological progress 3. Education and knowledge creation 4. Environmental protection and sustainability 5. Peace and security 6. Food security 7. Regional and international development 8

N EXT G ENERATION V IEWS : D EVELOPMENT E NGAGEMENT 1. Youth Leadership 2. Student Leadership 3. Teacher Leadership 4. Social/Community Leadership 5. Corporate Leadership 6. Supportive and effective public leadership …Support Networks for Social Change… All are Dynamic, But all are So Limited! Social leadership and social responsibility need to be enhanced constantly … 9

G ROWTH D RIVERS : R EGIONALIZATION A SURE TOOL, C OMMUNITY A MUST 1. Improved communication, transportation infrastructure, and connectivity 2. Young entrepreneurs increasing take the lead in trade, investment, and technological improvement 3. Harmonization of business processes and public administration 4. Rising population, incomes, and skills to meet labor demands 5. Pooling of resources and facilities to reduce costs and to enhance competitiveness 6. Intra-ASEAN trade measures crowd in private investments from the region, China, India, the Pacific, the US, Africa, and EU, etc 10

F INAL THOUGHTS Asian future growth, including ASEAN’s, will be driven and sustained by: 1. Dynamism and resilience of labor, 2. Growth of entrepreneurship, 3. Leveraging comparative advantages, 4. Inclusive intra- and inter-ASEAN trade, 5. Enhancement of technological know-how and production efficiency, 6. Alternative technologies able to replace certain raw materials, 7. Sustainability of resources: Supply-driven, and 8. New types of production networks, transnational supply chains, and market expansions: Demand- driven 11

Thank you… 12