Monday, February 1, 2010

Australian agro-deal in Cambodia carries risks, rewards

Mon, 01 Feb 2010
DPA

Phnom Penh - As a former finance minister of Australia, Peter Costello is comfortable with large numbers. The latest is his proposal on behalf of an Australian fund to invest 600 million US dollars into at least 100,000 hectares of land concessions in Cambodia. The concessions would see private equity investors pumping money into plantations of teak, palm oil, sugar, rice and bananas. In return, Cambodia would get 150,000 jobs, the government said after Costello met with Deputy Prime Minister Sok An.
Significant investment, plenty of jobs plus the promise of improved agricultural methods? Such a deal should be good for Cambodia on all three counts.
But human rights workers said they worry the country's ongoing problems with corruption and poor governance combined with often-violent land evictions mean it is less certain that ordinary people would benefit.

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