Capital city: Phnom Penh
Official language: Khmer
Cambodia's climate, like that of the rest of Southeast Asia, is dominated by monsoons, which are known as tropical wet and dry because of the distinctly marked seasonal differences.
Cambodia has a temperature range from 21 to 35 °C (69.8 to 95 °F) and experiences tropical monsoons. Southwest monsoons blow inland bringing moisture-laden winds from the Gulf of Thailand and Indian Ocean from May to October. The northeast monsoon ushers in the dry season, which lasts from November to March. The country experiences the heaviest precipitation from September to October with the driest period occurring from January to February.
Cambodia has two distinct seasons. The rainy season, which runs from May to October, can see temperatures drop to 22 °C (71.6 °F) and is generally accompanied with high humidity. The dry season lasts from November to April when temperatures can rise up to 40 °C (104 °F) around April. Disastrous flooding occurred in 2001 and again in 2002, with some degree of flooding almost every year.
In 2011 Cambodia's per capita income in PPP is $2,470 and $1,040 in nominal per capita. Cambodia's per capita income is rapidly increasing but is low compared to other countries in the region. Most rural households depend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubber are Cambodia's major exports. The International Rice Research Institute (IRRI) reintroduced more than 750 traditional rice varieties to Cambodia from its rice seed bank in the Philippines.These varieties had been collected in the 1960s.
Based on the Economist, IMF: Annual average GDP growth for the period 2001–2010 was 7.7% making it one of the world's top ten countries with the highest annual average GDP growth. Tourism was Cambodia's fastest growing industry, with arrivals increasing from 219,000 in 1997 to 2 million in 2007. In 2004, inflation was at 1.7% and exports at $1.6 billion US$.
China is Cambodia's biggest source of foreign direct investment. China planned to spend $8 billion in 360 projects in the first seven months of 2011. It is also the largest source of foreign aid, providing about $600 million in 2007 and $260 million in 2008.
The National Bank of Cambodia is the central bank of the kingdom and provides regulatory oversight to the country's banking sector and is responsible in part for increasing the foreign direct investment in the country. Between 2010 and 2012 the number of regulated banks and micro-finance institutions increased from 31 covered entities to over 70 individual institutions underlining the growth within the Cambodian banking and finance sector.
In 2012 Credit Bureau Cambodia was established with direct regulatory oversight by the National Bank of Cambodia. The Credit Bureau further increases the transparency and stability within the Cambodian Banking Sector as all banks and micro-finance companies are now required by law to report accurate facts and figures relating to loan performance in the country.
One of the largest challenges facing Cambodia is still the fact that the older population often lacks education, particularly in the countryside, which suffers from a lack of basic infrastructure. Fear of renewed political instability and corruption within the government discourage foreign investment and delay foreign aid, although there has been significant aid from bilateral and multilateral donors. Donors pledged $504 million to the country in 2004, while the Asian Development Bank alone has provided $850 million in loans, grants, and technical assistance.
The foreign relations of Cambodia are handled by the Ministry of Foreign Affairs under H.E. Hor Namhong.
Cambodia is a member of the United Nations, the World Bank and the International Monetary Fund. It is a member of the Asian Development Bank (ADB), ASEAN, and joined the WTO on October 13, 2004. In 2005 Cambodia attended the inaugural East Asia Summit in Malaysia.On November 23, 2009, Cambodia reinstated its membership to the International Atomic Energy Agency (IAEA). Cambodia first became a member of IAEA on February 6, 1958 but withdrew its membership on March 26, 2003.Cambodia has established diplomatic relations with numerous countries; the government reports twenty embassies in the country including many of its Asian neighbours and those of important players during the Paris peace negotiations, including the US, Australia, Canada, China, the European Union (EU), Japan, and Russia. As a result of its international relations, various charitable organizations have assisted with social, economic, and civil infrastructure needs.
In recent years, bilateral relations between the United States and Cambodia have strengthened. The U.S. supports efforts in Cambodia to combat terrorism, build democratic institutions, promote human rights, foster economic development, eliminate corruption, achieve the fullest possible accounting for Americans missing from the Vietnam War-era, and to bring to justice those most responsible for serious violations of international humanitarian law committed under the Khmer Rouge regime. China's geopolitical interest in Cambodia changed significantly with the end of the Cold War. It retains considerable influence, including close links with former King Norodom Sihanouk, senior members of Cambodian Government, and the ethnic Chinese community in Cambodia. There are regular high level exchanges between the two countries. Japan has been a vital contributor to Cambodia’s rehabilitation and reconstruction since the high-profile UN Transitional Authority (UNTAC) mission and elections in 1993. Japan provided some US$1.2 billion in total overseas development assistance (ODA) during the period since 1992 and remains Cambodia’s top donor country.
While the violent ruptures of the 1970s and 80s have passed, several border disputes between Cambodia and its neighbors persist. There are disagreements over some offshore islands and sections of the boundary with Vietnam and undefined maritime boundaries and border areas with Thailand. Both Cambodian and Thai troops have clashed over land immediately adjacent to the Preah Vihear temple, leading to a deterioration in relations. The International Court of Justice in 1962 awarded the temple to Cambodia but was unclear regarding some of the surrounding land. Both countries blamed the other for firing first and denied entering the other's territory.
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