Think Before You Invest

Many institutions,banks being a good example, had a long tradition of only offering clients access to the bank's own investment vehicles. On the one hand, they did not have the infrastructure in place to monitor constantly a pool of over 40,000 funds available worldwide. On the other hand, they defended their “in-house” policy on the largely justifiable grounds of due diligence. Institutions rightly felt comfortable recommending their own products to their own clients.

When recommending a fund from an outside supplier, the institution must be in position to assure its client with regard to a number of key factors – the creditworthiness of this third party, the robustness of their investment procedures, the credentials of the fund manager, the like hood of maintaining decent levels of performance, their risk-adjusted return and so on.

Political Issues

A leading politician argues that globalization can benefit a country. The government has done a lot to regain confidence of the international donor community. With political stability restored, we managed ti gave micro-economic stability.

Critics charged that globalization benefits the wealthy developing ones; that the gap between rich and poor nations has never been greater. By their reckoning, it could be suicidal to expose the country's fragile economy to competition.

Some critics claim that Cambodia is a classic example of how the world economy and its architects have failed to address the needs of less developed countries.