The document summarizes an upcoming lecture on "Economic Globalization and the Economic Challenges Facing Cambodia". It discusses 3 tectonic shifts in economic globalization: 1) the rise of the West since the 15th century, 2) the rise of the US in the late 19th century, and 3) the rise of China and others since the 1980s. It also outlines Cambodia's growing economy and its integration into regional economic communities like ASEAN and RCEP. While poverty has declined, Cambodia must continue shifting its workforce from agriculture to manufacturing, construction, and services to further reduce poverty.

1. Paññāsāstra University of
Cambodia
Faculty of Arts, Letters, and Humanities
In Collaboration with Center for Khmer Studies
Proudly Presents
A Special Lecture on
“Economic Globalization and the Economic Challenges
Facing Cambodia”
By
Dr. Benny Widyono
Former UN Secretary General’s Representative in Cambodia
Srey Dim Conference Hall
May 8, 2014
5:30-7:00 pm

3. Defining Economic Globalization
Economic Globalization involves the
closer integration of national
economies into the international
economy through increased flows of

4. GOODS AND
SERVICES
Defining Economic Globalization

5. GOODS AND
SERVICES
INVESTMENTS BY
MULTINATIONAL
CORPORATIONS
Defining Economic Globalization

6. GOODS AND
SERVCIES
INVESTMENTS BY
MULTINATIONAL
CORPORATIONS
FINANCIAL
CAPITAL
Defining Economic Globalization

7. GOODS AND
SERVICES
INVESTMENTS BY
MULTINATIONAL
CORPORATIONS
FINANCIAL
CAPITAL
LABOR
Defining Economic Globalization

8. HOPE AND REALITY
THE GREAT HOPE OF ECONOMIC
GLOBALIZATION IS THAT IT WILL RAISE
STANDARDS OF LIVING AROUND THE
WORLD
THE REALITY IS THAT UNTIL RECENTLY
DEVELOPING COUNTRIES CONTINUE
TO SUFFER FROM POVERTY AND
UNDERDEVELOPMENT

9. THE THREE TECTONIC SHIFTS IN ECONOMIC GLOBALIZATION
I. The Rise
of the West
2. The rise
of the US
3. The rise
of China
and the
rest

10. THE FIRSTTECTONIC
SHIFT:THE RISE OFTHE
WEST
SINCETHE 15TH CENTURY AND ACCELERATED
DRAMATICLALY SINCE 1820sTHROUGH INDUSTRIAL
REVOLUTION

11. COLONIALISM IN 1945

13. WIDENING GAP BETWEEN WEST AND AFRICA
1820: Gap
between Britain
and Africa was
four to one
1998: Gap
between USA
and Africa is 20
to one

14. Angkor Wat built in 1150 Notre Dame de Paris built in 1345
Angkor Wat and Notre Dame de Paris

16. THE SECONDTECTONIC
SHIFT: RISE OFTHE US
Started at the closing years of the 19th century
In the closing years of World War II its dominance unrivaled

17. TEHE WORLD ECONOMIC ORDER SHAPED AT BRETTON WOODS
 ECONOMIC POWER
CONCENTRATED IN NORTH
AMERICA AND WESTERN
EUROPE: GATT, THE WORLD
BANK AND THE IMF
 COMMUNIST EASTERN
EUROPE AND CHINA IN
ISOLATION
 THIRD WORLD WERE
INTEGRATED IN WORLD
ECONOMY THEY NEITHER
MANAGED NOR CONTROLLED

18. THE WORLD DURING THE COLD WAR

19. THETHIRDTECTONIC
SHIFT: RISE OF CHINA AND
THE REST
SINCETHE 1980S UNTILTODAY

20. THE ERA OF ECONOMIC GLOBALIZATION
The end of the
cold war 1989
The collapse of
the Soviet
Union 1989
Reunification of
Germany 1989
Information
and
technological
revolution
The rise of
Brazil, Rusia,
India and China
(BRIC)

21. Soviet Union 122 to 1991 Break-up of Soviet Union 1991
BREAK UP OF THE SOVIET UNION

22. GDP RANKING BY PPP IN BILLION US DOLLAR
Rank Country GDP (PPP) $Billion Year
— World 85,538 2012
— European Union 16,805 2012
1 United States 15,685 2012
2 China 12,471 2012
3 India 4,793 2012
4 Japan 4,491 2012
5 Russia 3,380 2012
6 Germany 3,308 2012
7 Brazil 2,366 2012
8 France 2,355 2012
9 United Kingdom 2,265 2012
10 Mexico 2,015 2012

23. THE GIANT ASIAN DRAGON AWAKENED
 IN THE OLD DAYS CHINA WAS VERY
BIG BUT ALSO VERY POOR
 TODAY CHINA HAS AWAKENED AND
HOW?
 CHINA’S AWAKENING IS RESHAPING
THE GLOBAL POLITICAL AND
ECONOMIC LANDSCAPE

24. GAIGE KAIFANG 改革开放 reform and opening up
More than
tenfold
increase in
GDP since
1978

25. USA VERSUS CHINA 2013

26. CHINA’S SPECTACULAR ECONOMIC GROWTH
1) manufacturing: greatly assisted by
outsourcing of jobs by American and
European MNCs to China
2) construction: massive urbanization and
infrastructure expenditures by the
government

27. EXPORTS RANKING BY COUNTRY IN US DOLLAR
Rank Country Exports Date of
information
— World $17,779,000,000,000[2]
2011 est.
— European Union (minus internal trade) $ 2,170,000,000,000[3]
2011 est.
1 China $ 2,050,000,000,000 2012 est.
2 United States $ 1,612,000,000,000 2012 est.
3 Germany $ 1,492,000,000,000 2012 est.
4 Japan $ 792,900,000,000 2012 est.
5 France $ 567,500,000,000 2012 est.
6 Netherlands $ 556,500,000,000 2012 est.
7 South Korea $ 552,600,000,000 2012 est.
8 Russia $ 530,700,000,000 2012 est.
9 Italy $ 483,300,000,000 2012 est.
10 Canada $ 481,700,000,000 2012 est.

28. Foreign exchange reserves in millions of US dollars
1 People's Republic of China 3,341,000 Dec 2012[1]
2 Japan 1,238,713 Jun 2013[2]
Eurozone 808,192 May 2013[2]
3 Saudi Arabia 656,900 Dec 2012[1]
4 Russia 518,431 May 2013[2]
5 Switzerland 517,622 May 2013[2]
6 Republic of China (Taiwan) 406,062 May 2013[3]
7 Brazil 374,417 May 2013[2]
8 Republic of Korea 328,095 May 2013[2]
9 Hong Kong 305,713 May 2013[2]

29. CHINA TOP INVESTOR AND AID GIVER TO CAMBODIA
Loans and grants from China during the period 1992 to 2013 have
amounted to $2.7 billion.
From 1994 to 2012, total Chinese investment in Cambodia has reached $
9.17 billion.
China is also one of the leading trading partners of Cambodia. Last year,
bilateral trade volume accounted for $2.9 billion U.S. dollars and it is
expected to reach $5 billion by 2017.

30. Per Capita Income by PPP method selected countries

31. THE MILLENIUM DEVELOPMENT GOALS
 In Sub Saharan Africa almost half the population live
on $1.25 per day
 Sub-Saharan Africa saw the number of people living
in extreme poverty rise steadily, from 290 million in
1990 to 414 million in 2010, accounting for more
than a third of people worldwide who are destitute


33. Successful Poverty reduction in Cambodia
In Cambodian poverty has fallen sharply also. The
percentage of poor people w living on $1,25 a day has
more than halved within seven years to around 20 percent
in 2011
However, in order to reduce poverty in the future,
Cambodia must drastically move its labor force from
subsistence agriculture to an expanded manufacturing,
construction and services base

34. THE THREE ENGINES OF GROWTH IN CAMBODIA

35. CAMBODIA TODAY
Population 14.9 million
Population growth 1.8 percent
GDP (PPP, int’l US$) 37.1 billion
GDP per capita (PPP, int’l US$) 2,494

36. Worlds top ten Multinational Corporations (MNCs) in 2012

37. Company Industry
Revenue (USD
billions)
FY2012
1 Exxon Mobil Corporation Oil and gas $482 Irving, Texas
2 Royal Dutch Shell Oil and gas $481
The Hague;
London
3 Walmart Retail $469
Bentonville,
Arkansas
4 Sinopec Group Oil and gas $441 Beijing
5 BP Oil and gas $388 London
6
China National Petroleum
Corporation
Oil and gas $378 Beijing
7 Saudi Aramco Oil and gas $356 Dhahran
8 Vitol Commodities $297
Rotterdam;
Geneva
9
State Grid Corporation of
China
Electric utility $265 Beijing
10 Volkswagen Group Automotive $254 Wolfsburg

38. The rebirth of regionalism in
international trade

39. TOWARDS AN ASEAN ECONOMIC COMMUNITY IN 2015

40. TOWARDS AN ASEAN ECONOMIC COMMUNITY IN 2015
Objective of AEC: to
transform ASEAN into a
single market of 600 million
people with free movement
of goods, services,
investment, skilled labor,
and freer flow of capital

41. Annual asean summit prepare for aec
 Annual ASEAN Summit hosted by Cambodia in Phnom Penh Cambodia
18 November 2012

42. PHNOM PENH GAVE BIRTH TO RCEP
 Regional Comprehensive
Economic Partnership
(RCEP) is a Free Trade
Agreement scheme of the
10 ASEAN Member States and its
FTA Partners (Australia, China.
India, Japan, Korea and New
Zealand to be concluded by the
end of 2015

43. WILL THE TARGET DATE OF 2015 FOR AEC BE ACHIEVED?
THE TARGET DATE OF 2015
MUST BE SEEN AS A
MILESTONE RATHER THAN
THE END IN THE CONTINUING
PROCESS OF INTEGRATION.

44. CLVM VERSUS asean Six
The Brunei ASEAN
Economics Ministers
summit on 15th August 2013
declared that ASEAN has
implemented 80% of
measures under the AEC
blueprint

45. CONCLUSION