Cambodia’s economy continues to thrive, but the global situation was a concern at the G7 Summit in May and Japan has also decided to forgo raising its consumption tax for two and a half years. As for the cause of the fall in world economic demand, the slowdown of China and the disturbance of the EU would be significant factors. Although experts have analyzed this situation and advocated a situation breakthrough, the opinion that “growth” is not a prerequisite is the right argument. The estimated growth has no strong logic and the certainty of the outcome fades as well. Not only is it measured in the numerical value of GDP, but it is also necessary to discern the brunt of profits and to consider that future disadvantages such as environmental issues and air pollution, a large amount of expenditure associated with them may occur in the present. The more advanced an economy becomes, the more misunderstanding that consumption is unrestricted freedom, and the state to pursue even more extreme capitalism is very scary.
Recently, Internet finance has been growing rapidly in China. It is highly popular as a new investment destination for investors following the collapse of stock prices. It has been used as a new source of business funds for agriculture and small and medium-sized enterprises, since it is easy to borrow through a smartphone, unlike from banks that only finance large companies. The Chinese government also boosts sit as one means of expanding domestic demand since the traditional external policy approach is in the downturn. Young people use this to buy up nail polish, cosmetics, and clothes by borrowing about 20,000 yen within 10 seconds while saying “parents had savings, but we can’t comprehend in our generation.” I became anxious about such a situation which accumulate even though7% of interest is deducted at the time of borrowing.
For example, what is required for a train is the speed to get to the destination more quickly. However, it is not the most important; it is the basic premise to travel safely and accurately. In today’s global economy, I think there has been too much priority given to achieving rapid growth and the purpose has been ignored. In the future, it would not go through this tunnel if it doesn’t serve the purpose of an investment on a global scale such as more fundamental life principles and measures of environmental issues that don’t aim for only buying and selling of goods.
Looking at the Condo and office buildings under construction lined up in Phnom Penh, I become worried that it would all fall down when one is overconfident about future growth, as previously described. Not only should the development of urban areas, but it should put also more emphasis on the infrastructure and basic education necessary for this country. The charm of this country lies in the fact that it builds the future. I hope it helps our consideration that now there is a possibility to become a better country in the future without repeating the mistakes of the developed countries.