Chinese Companies Are Devastating Cambodian Natural Resources

The monitoring panels for the situation of Cambodia and its economics had marked that Cambodia received a lot of donation and loans from China so the government has to decide to authorize a license to Chinese companies for a huge land concession investing. However, the Chinese companies did not bring any development or progression to Cambodian people at all. Obviously, the companies which got concession authorization for growing sugar cane and rubber are logging to exploit illegally and had bulldozed the community natural forest aggressively.

The non-governmental organizations also said that the Chinese economic concessionaire companies located in some provinces across Cambodia have been devastating the Cambodian natural luxury wood and natural resources which the government did not care of this. Unequivocally, woods in Cambodia are plunged into disaster and being endangered quickly if without any effective government’s intervention or conservation. For example Siv Guek Investment Co Ltd. of China illegally administers huge deforestation. This company located in the radius of hydro-power region in northern Cambodia.

Chinese companies had harshly grab land from local residents by destruction and set fire to houses of theirs. This meant that granting the land concession privilege from the government is a source of tragedy. Then there always community resident’s protest taking place to against those companies for their land grabbing.

Actually, the concessional land should not be granted to Chinese companies nearby the forest areas because there may have wood logging and devastating the Cambodian natural resources. Logging the timbers is illegal under the Cambodian law.

Yet villagers and local residents had been motivated by companies to logging the woods to sell for them including Vietnamese companies as well. Vietnamese continue to transport Cambodian luxury timbers to Vietnam almost every day. Research study said that Cambodian woods still exist less than 20 percent.

Is this the development whenever there is a vast deforestation to export for selling in other country then instead there has growing rubber tree and Acacia and natural destruction?

For instance, the controversial hydro-power projects at the Koh Kong’s province mountain range are underway of Chinese mega-company which would mine the precious stones to acquire these greedy projects toward devastating Cambodian natural resources. Sinohydro Resource Ltd, Chinese company which is a company has been operating mining in the geographic area of Cambodia.

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Natural Resources Of The Poor Country And Its Management

For the nations which are plenty of oil mines are the rich countries based in the Middle East bloc. However, oil resources can be gone someday like Cambodia used to be plenty of forest, ores, precious stones and gold but they were devastated by the civil war in the past decades and suffered by unfair-sharing of exploitation. The legacy resources of Cambodian include Angkor temple and other cultural areas which generate income around nearly 50 million dollar annually. Furthermore, Cambodia has oil resources for exploitation and extraction industries too.
Extraction industry is a way to extract the non-recycled natural resources, for example natural ores and kerosene. The economic analysis indicated that Cambodia may receive benefits from maximum extraction industry so that the government must establish the law for management and control first. Income from such industry also may help Cambodia which is lacking of finance and fund for development of infrastructure, health care, education and institutionalized capacity building so that to help the national economic growth and reduction of poverty of local people. 

Many countries who make income from the natural inventory and always encounter main two issues including the obstacles for expense for younger generation and current time and second obstacle is allocation of the government’s expense for each nations in line with economics and development from these natural resources promotion.

Natural resources management can be useful for standing benefits of the national economy. From experiences in countries that possess the revenue of the resources. They used the amount of income for enabling of improvement of macro-economics.

Strategy for development consists of three critical components: public investment gathering which is suitable for local condition, economic policy framework to promote private sector and guideline framework to ensure rule of law and macro-economic sustainability. 

In this context, the natural returns should be used for public investment. For low income-nations the goal is to absorb benefits from resources income to fill the basic demand include infrastructure, education and healthcare. For medium income-nations, they mobilize such income to develop at the rural economics which based on resources so that to become urban economics which based on human resource and knowledge.

The successful experiences demonstrate that resource income management must be linked with development process and securing of balance between expenses and saving. However, there has been both advantages and disadvantage for consuming of resources according to level of economic development and quality of institutions for the poor country and its management. Therefore, the resource income management for each nation has to align with development process. In the developed countries within existing human resources and infrastructure, the best choice is to save financial property for ensuring salary expense in long terms.
The income management for the poor country is relevant to two types of concepts, transparency and accountability of control and expenditure in its management. In other countries show that stability of economic growth and natural proceedings rely on speed of structure reforms and institutional capacity development to achieve these concepts. 

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