The Legal Analysis of Economic Land Concessions in Cambodia

Abstract

Ⅰ. Background and Purpose □ Cambodia has made every effort to manage land since the collapse of the Khmer Rouge regime in 1979. Although the 1992 Land Law did not stipulate land concessions, the actual economic land concessions started remarkably in the mid 1990s. The failure to stipulate the law before providing economic land concessions made the competent authority unclear about the land size. □ This study is divided into three chapters. Firstly, it elaborates the legal framework on economic land concessions in which legal requirements for economic land concessions, all kinds of land subject to economic land concessions, and the competent authorities who have the right to sign contracts are stated in detail. Secondly, it shows about challenges of economic land concessions which is so far granted by the government. The social, economic and environmental impact has been the main focus of it. Lastly, it proposes some areas for improvement for the success of economic land concessions.

Ⅱ. Main Contents □ The concept of economic land concessions in Cambodia were just stipulated by law in 2001 while the real practice started earlier. The clear framework of economic land concessions is just stipulated in the 2001 Land Law. Following this law, the Sub-decree on Economic Land Concessions was adopted on December 27, 2005 to provide detailed procedures of economic land concessions. The main purpose of economic land concessions is a possible way to increase national economy through investing in state private land. □ Since the early inception of large scale economic land concessions in 1996, Cambodia has not remarkably enjoyed full benefit from the economic land concessions. In return, considerable economic land concessions granted continue to limit rural Cambodian's access to land and natural resources and to destroy the environment more seriously. Urgent government measures are necessary to be taken into account, because economic land concessions have continued to impact negatively on local community and indigenous people whose livelihoods depend upon land and forest resources. □ The failure to follow the 2001 Land Law and the Sub-decree on Economic Land Concessions has been a hindrance for country development. The contracting authority plays a very crucial role in fulfilling all legal requirements. Moreover, it is necessary that the concessionaires know legal requirements before starting to invest in economic land concessions in Cambodia. It is also importantly noted that the economic land concessions should not be a part of public land. And the restriction of economic concession land size may have a bad impact on law. The law provides a crucial role for the contracting authority to make economic land concessions successful. Lastly, it is necessary that the court form a mechanism to control the implementation of economic land concession contracts.

Ⅲ. Conclusion □ Economic land concessions are a way to attract large investors to invest in land of Cambodia. Labor force can be well absorbed by the well-implemented policy of economic land concessions. However, failure to follow the legal process of economic land concessions deters large and potential companies from investing in Cambodia. Furtuermore, encouraging unsolicited proposals may exacerbate the human rights and livelihoods of local and indigenous people. That is why the government finds a possible way to grant economic land concessions via unsolicited proposals.