Rokar Chunleung Commune (Kandal Province)
I work as an activist to promote development at Rokar Chuleung Commune. I have a very committed team to work during the weekend at this rural community, which has seen a lot of positive changes during the last five years.
Geographical location and proximity – Rokar Chunleung commune locates in Kandal Province, situating 40 kilometers from Phnom Penh and bordering next to Kompong Cham. Aside markets in Phnom Penh, Rokar Chunleung commune conducts trade in Preak Tamak, locates 5 kilometer northwest of Rokar Chunleung commune. The communities such as Preak Tamak and Roka Chralung are connected in part by paved roads, in part by non-paved roads but all must cross the Mekong River by ferries. From Preak Tamak, people commute to Phnom Penh across the Mekong by ferries whose capacity load include heavy equipment, automobiles and freighters crossing the Mekong River in that commuters, distributors and freighters can transport goods to their respective market destination. In short, it is evidence that people and communities are connected by physical infrastructure, namely roads and river albeit conditions of the roads and mode of transportation require more investment.
Economic structure – the economic structure of Rokar Chunleung commune is predominantly agricultural, namely rice cultivation, livestock and family scale gardening. Micro-economic development is essentially for progressive economic growth. Neither community plants cash crops, vegetables or produce. Researchers found no indications of economies of scale in terms of production, trade and investment and very limited number of seller and vendors. There is no indication of arts and crafts, textile or local production schemes such as farmer association, or farming extension service. Primary family incomes come from farming which is weather dependence and market performance. A family can earn at most US$250 where production cost is approximately 50% of the total revenue. In short, many families rely on complimentary income from non-farming income from the garment sector, construction, household services and other forms of migrant related work.
Market structure – the market structure of Rokar Chunleung commune is relatively embryonic, lacking trade and has a limited number of seller and buyer. There is very little competition affecting the price of commodity per se the price of rice where there is one family who purchases rice from farmers then resale at Preak Tamak. The economic good of these communities is leaning on supply side of the economy but merely generate substantial demand for production and consumption. Therefore, trade and service, finance, investment production, access and connectivity to the market is very minimal and at best very scarce. For these communities, in general, rice production requires land, seed and water and fertilizer but a family of four members receives only one ha of land, which equal to 25 meters square of land per person. Fertilizer costs 8000 Khmer Riels per bag of 50kg. A farmer requires 100 kilogram of fertilizers per ha, when there is adequate water for rice production, the average yield would be 2 tons per ha. Market price for the rice is seasonal; averaging price is 600 to 700 Khmer Riels per kilogram. Assuming if a farmer production yields 2 tons per ha and sell the rice at 700 Riels, his total revenue would be 1,400,000 Khmer Riels, but if he hires labor for harvest that would cost him 130,000 Khmer Riels, and adding the cost of 100 kilograms of fertilizer would accumulate additional cost of 16,000 Khmer Riels that would give him a net revenue of 1,255,000 million Khmer Riels, and with the exchange rate of 4200 Khmer Riels per US$1.0. If all factors remain constant, not considering externalities, transaction cost, transportation, energy, administrative cost and up to date mode of production, the farmer would take home US$298.0 which is still low.
Socio-Economic condition – Rokar Chunleung commune is dependent on farming and non-farming revenues. Primary income (farming) averages from US$150.00 per year/per family to US$250.00 per year/per family. These are figures are low compare to the national average per capita income of US$506.0 (2006). Therefore local earning here is inadequate that in effect undermines people living standards which could be improved when and if these communities diversify production and trade. Electrification and paved roads are primitive, underground water is primarily for household consumption not for irrigation. There are schools and health service centers. However, basic education is available for junior high and high school levels, no technical or vocational school available.
Production and Market Related Issues – the most fundamental economic and development challenge for Rokar Chunleung commune is their lack of comparative advantage, specialization and creativity as well as some management issues. Management issue in this case study strictly focuses on water management usage. Researchers learned that World Vision provided two reservoirs to the communities for household gardening. World Vision also provided several pumping wells, and FAO had sponsored several short-training courses on animal husbandry and Avian Influenza prevention. But the communities need large scale reservoirs and water stockade to sustain adequate water resource for large scale rice planting and cultivation. Both communities need an aqueduct system and water management system. Although, underground water is abundant, it cannot be used for rice paddy and gardening because high chalk harms rice seeds, plant, output and growth. As a result, rice yield and output has not been satisfactory due in part to the lack of water, bad water quality, but also due in part to the lack of technical-know how in using fertilizer and cultivation. Farmers tend to over apply or under apply the proper amount of fertilizer on the paddy. Adding to the existing challenges of low rice yield, productivity, resource constraint, and comparative advantage, members of these communities are lacking alternative specialization of non-farming skills to sustain adequate secondary income. To say the least, these communities not only have to improve the supply side capacity in farming but they also must acquire non-farming skills to generate secondary income. Unless technical and innovative measures, for example, water management, production capacity and marketing schemes are implemented, farmers of these communities continue to lose out in the market competition and market share.
Infrastructure – as infrastructure is expected to facilitate market operation and distribution. But in the case of Rokar Chunleung commune, on investment in improving competitiveness would be more cost effective because the existing infrastructure, especially roads are already adequate for small-scale transportation and distribution of good.
Policy Response – policy response should be in terms of micro-economic development. Assistance in market coordination, capacity improvement, promotion, specialization and diversification would help to improve resource allocation, market connection and community participation in the market system. At the present, short-term assistance would be more cost effective than long-term investment. Short-term assistance in the area of capacity building such as training in non-farming specialization, also water management; for instance, building large scale water stockades and reservoirs would help to increase community access to water for agricultural production. Technical training in agricultural knowledge-base would improve agricultural management and production yield. Intermediate-term assistance in basic education, vocational training, training in management and market promotion, investment in agricultural diversification; and short-term credit facilitation would enable the basic thrust for market connectivity. Long-term assistance would be investment in infrastructure, paved roads, electrification, long-term finance and credits, and agricultural diversification.
Naron&LawoftheSea 