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Evictions and forced relocation, the real cost of economic growth in Cambodia

During a recent visit of some colleagues to Cambodia, I joined a field trip to the An Dong relocation site. On the way to the site, we lost our way. Our guide, a very dedicated volunteer in one of the human rights NGOs in Cambodia, cannot recognise the changed landscape with new roads being built and rice paddies along the way getting covered with earth and fenced with concrete walls.

An Dong is only 22 kilometers from the centre of Phnom Penh, but more importantly, only 7 kilometers away from the Pochentong Airport. It became home, starting in June 2006, to around 1600 families who were evicted from Sambok Chab village in the capital Phnom Penh. The location is now site of an exclusive housing estate, one of the most prestigious residential communities in Phnom Penh.  Quite recently, some 100 families, the remainder of more than a 1,000 who were residents of Dey Krahorm, another community in a prime location in the city, were forcibly evicted and their homes bulldozed by a combined force of police and security personnel of the company that has acquired the property from the government. Dey Kahorm happens to be across the road from the new complex of majestic buildings that house the National Assembly and the soon-to-rise Australian embassy compound.

Development, progress, growth

From the coastal cities of Sihanoukville and Koh Kong, to the forests of Kratie and Preah Vihear, to the mountains of Rattanakiri and Mondulkiri, cases of land conflicts abound. Invariably, the cases involved poor communities in losing battles against wealthy and influential landowners. Invariably the poor end up losing access, and in some cases, even their established rights to land. In a good number of these cases, a number of community members involved were left with not much choice but to sell or accept compensation for the eviction. Some lost their lives and many were hurt staking and standing by their claim.

Meanwhile, in Phnom Penh and in the rest of the country, the price of real estate continues to rise at spectacular rates (although it tapered recently due to the global financial crisis). High-rise residential and commercial buildings are either built, under construction, about to be built, or even just rumoured or advertised to be built. Grand hotels and casinos and sprawling housing complexes mushroomed even in places where one does not expect them to be built. Lakes and floodplains were covered and more residential areas are in the plans for clearing to give way to high-end residential and commercial prime properties. In the not-so-distant future, one can see the An Dong relocation site standing in the way of this kind of development. Like most communities throughout the country, it may just be a matter of time, before residents are once more asked, or more accurately, forced, to leave.

Regardless of the way that rights over these lands fall into the hands of the moneyed and powerful, and setting aside ofr a while the entitlements of the evicted residents to just compensation (in various forms) one thing is certain: the bullish market for land has been driving the  frenzy for the accumulation of what most Cambodians consider to be life itself. For Cambodians, land is not only life itself. More than a source of living, it embodied their identity and history. Land has been witness to their anguish and suffering, as well as a testimony to their hope and resilience as a people. In the last 10 years or so, land has proven to be the most profitable investment for anyone who has capital, moreso if one has capital and political influence, and even more so if this is combined with access to the coercive instruments of state – the police and military. In the 5 years before 2008, the Cambodian economy has been growing at an annual average of 11%, rated by the WB as one of the best-performing economies of the world (the 4th, if I am not mistaken).

Economic Land Concessions

In the countryside, many community claims to land and land-based resources such as forests, had to give way to economic land concessions. Mandated in the Cambodia Land Law of (2000), economic land concessions or ELC allow private companies to lease up to 10,000 hectares of land for commercial agro-forestry purposes for a period of 50 years, renewable for another 25 years. Economic land concessions were conceived to attract much needed investment specifically to agriculture and agro-forestry and generally to the rural areas, where 80% of the population is found and where most people depend on natural resources for their livelihood and subsistence. By 2006, there are over 95 approved ELC, in theory, covering a maximum of 950 hectares of land and forestry area.

In reality, people can rarely point out the actual boundaries of these concessions. Nobody can tell exactly how big are the holdings of one company, or whether a company who have rights to vast contiguous swathes of land is only masquerading as a number of different companies. One such company, notorious for its vast landholdings and forest concessions is reputed to hold 315,000 hectares of ELC in contiguous forest areas in the western part of the country. These investments are expected to boost agricultural and agro-forestry production, create jobs, generate income, and hence contribute to the development of the country.

A study in 2007 conducted by a reputable research institute in Cambodia indicate that based on the approved ELC applications of these companies and on their actual operations, the concessions were only able to deliver a combined total of 5% of what they promised in terms of production, revenue, and employment. One ELC I had the rare privelege to visit in Pursat Province has so far cleared 20% of a 50,000 hectare forest area before being stopped by the provincial governor from further clearing. The manager who surprisingly was willing to discuss the concession operations with visitors complained that this is a problem, getting in the way of the concession and halting the march of progress for the community.

I asked what have they done with the area cleared so far, he said that they have put in several heads of cattle, dug  ponds for small scale fish production, and planted some fruit trees. And how many people from the community have they employed so far? 12. The manager explained that this is because, besides the fact that the governor has stopped the concession from clearing the forest, the community people are lazy and did not want to work in the concession for fear of being seen as poor.

Talking to the community of about 500 families later, I discovered that they used to rely on the forest not only for their subsistence, water, and other basic needs such as food, building materials for their houses, and medicines, they also have a temple located inside the forest. Now they are prevented from accessing any of these and many were forced to leave the community. They also said that when they had access to the forest, they are able to earn at least $20 per month for selling whatever products they get from it. The company offers $12 in monthly salary. Meanwhile, the ELC holders seem bent on sitting it out, unwilling to infuse further capital into the now idle land, and perhaps hoping that one day someone will come along to buy them out of the concession.

It reminded me of the house next to the one I’m renting in Phnom Penh. The property must have been sold 4 times in the last two years I’ve been staying there. According to my landlord, his own property was worth USD180,000 five years ago (with $30,000 of it owing to the personalised woodwork he had ordered for the house). Now, he claims, his property should easily sell for $500,000. Those who have already cashed in, at best, have invested in more lands and other potential prime properties. Many others bought imported Lexus cars and Hummers. All throughout the land, this and many other similar stories about value appreciation of property and instant wealth are multiplied manifold, perhaps fuelling a large part of what is perceived by many as miraculous economic growth and development for the country.

Risks and costs of miracles

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