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The National Flag

Three horizontal bands of blue (top), red (double width), and blue with a white three-towered temple representing Angkor Wat outlined in black in the center of the red band.

Enlarged map

UN-sponsored elections in 1993 helped restore some semblance of normalcy, as did the rapid diminishment of the Khmer Rouge in the mid-1990s. A coalition government, formed after national elections in 1998, brought renewed political stability and the surrender of remaining Khmer Rouge forces.

Cambodia's economy slowed dramatically in 1997-98 due to the regional economic crisis, civil violence, and political infighting. Foreign investment and tourism fell off. In 1999, the first full year of peace in 30 years, progress was made on economic reforms and growth resumed at 4%. GDP growth for 2000 had been projected to reach 5.5%, but the worst flooding in 70 years severely damaged agricultural crops, and high oil prices hurt industrial production, and growth for the year is estimated at only 4%. Tourism is Cambodia's fastest growing industry, with arrivals up 34% in 2000. The long-term development of the economy after decades of war remains a daunting challenge. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Fear of renewed political instability and corruption within the government discourage foreign investment and delay foreign aid. On the brighter side, the government is addressing these issues with assistance from bilateral and multilateral donors.

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