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Cambodia First Plan, 1986-90
http://www.photius.com/countries/cambodia/economy/cambodia_economy_first_plan_1986_90.html
Sources: The Library of Congress Country Studies; CIA World Factbook
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    The First Five-Year Program of Socioeconomic Restoration and Development (1986-90), or First Plan, originated in February 1984, when the heads of the state planning commissions of Vietnam, Laos, and Cambodia met in Ho Chi Minh City (formerly Saigon) and agreed to coordinate their 1986 to 1990 economic plans. Heng Samrin formally announced Cambodia's plan in his political report to the congress.

    The plan was intended to open a new phase of the Cambodian revolution; it gave highest priority to agricultural production, calling it "the first front line," and focused on the four sectors of food, rubber, fishing, and timber (see table 6). It set production targets for each sector. During the plan period, food production was to increase 7 percent a year to keep up with a targeted 2.8 percent annual population growth rate, which did not seem to have been reached by 1987. The plan projected that by 1990, rubber farming would expand to 50,000 hectares in order to produce 50,000 tons of latex; timber production would reach 200,000 cubic meters; jute production would increase to 15,000 tons; and fish production would amount to 130,000 tons. As in the past, the plan labeled agriculture and forestry as the real force of the national economy.

    The plan was less specific for the industrial sector. It did not set industrial production targets, except that for electrical output, which was projected to reach 300 million kilowatt hours per year in 1990. The plan called attention to the need for selective restoration of existing industrial production capabilities and for proposed progressive construction of a small to medium industrial base, which would be more appropriate to the country's situation.

    The plan placed increased emphasis on the distribution of goods. Trade organizations were to be perfected at all levels, and socialist trading networks were to be expanded in all localities. In particular, the trade relationship between the state and the peasantry was to be improved and consolidated in accordance with the motto, "For the peasantry, selling rice and agricultural products to the state is patriotism; for the state, selling goods and delivering them directly to the people is being responsible to the people."

    The plan also required that investment be directed toward the improvement of the infrastructure, particularly toward the reconstruction of communication lines and waterworks. Road, inland waterways, and railroad networks had to be restored to serve the national economy and defense.

    Last, but not least, the plan cited "export and thrift" (without elaboration), as the two primary policies to be followed in order to solve the national budget deficit. The plan implied that, into the 1990s, exports would have to consist principally of agricultural and forestry products, to which some value might be added by low-technology processing. "Thrift," although undefined, could, in the future, include some kind of government savings plan, with incentives for small depositors, to absorb surplus riels generated by Cambodia's considerable free-market and black-market sectors.

    Heng Samrin, like his predecessors, Sihanouk and Pol Pot, urged Cambodians to undertake the task of economic restoration "in the spirit of mainly relying on one's own forces." Unlike Sihanouk and Pol Pot, however, the KPRP leader stressed economic and technical cooperation with Vietnam. He believed such cooperation would be "an indispensable factor" in the development of agriculture and of forestry in Cambodia. Heng Samrin also advocated better economic cooperation with the Soviet Union and with other socialist countries.

    Data as of December 1987


    NOTE: The information regarding Cambodia on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Cambodia First Plan, 1986-90 information contained here. All suggestions for corrections of any errors about Cambodia First Plan, 1986-90 should be addressed to the Library of Congress and the CIA.

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