Economic Overview.

Structural weaknesses prevail.

Level of economic development is weak. Gross nominal income per capita (estimated at USD 1,024 in 2013) is among the lowest in Asia. The poverty rate is around 18%. The economy structure remains inefficient for growth with a strong dependency on the agriculture sector (1/3 of GDP and 64% of employment) and on the garment industry (2/3 of exports). The country continues to suffer from poor infrastructure including electricity shortages which limit industrial performance, and weak business environment (Doing business rank is 135 out of 189).

 

But short term economic  outlook is improving

However economic growth is performing well. After stagnation in 2009, the economy has recovered with growth averaging 7% per year between 2008 and 2013.  In 2014, latest indicators point to a growth of 7.2% even while the economy was faced with domestic (political deadlock until July 2014) and external uncertainties (political risk in Thailand, global demand slow down).  GDP growth was supported by improvement in the construction and the garment industries, and services.

In 2015, economic growth is projected to remain strong (7.3%). Under the assumption of further political stability, domestic demand is set to strengthen benefitting from: solid credit growth, large long-term Investment inflows (factories relocations related) and weak energy prices. External trade is projected to remain a key driver with exports amounting 60% GDP. In particular, improving demand in the USA, the Eurozone and ASEAN should give a boost to Cambodia’s exports.

Risks to the baseline scenario stems from domestic and external sources. For the first one it includes overheating risk due to too strong credit growth to real estate sector and renewed social-political risks. Regarding external risk, the main concern is related to the demand from Eurozone if economic recovery were to be delayed.

Inflationnary risks have receded but should remain on the radar

Inflationary pressures are decreasing and should stabilize at manageable levels. Headline inflation shows some volatility during the past reflecting volatility in food prices (food comprises 43% of the consumer price index). Weak energy prices should counterbalance further rise in food prices. Inflation will likely go below 5% in2015.

Rapid credit growth remains a risk to the undeveloped banking sector. Claims to private sector growth remain elevated (22% y/y mid 2014) even if some progress have been made (27% end 2013, 49% end 2012). 

Fiscal deficit is set to stabilize

Fiscal management is improving. The overall fiscal balance (including grants) is set to stabilize around -2.7% GDP. Public expenditures are set to rise reflecting increasing wage bill in the public sector. Revenues are set to improve with broader tax collection. Gross public debt should remain relatively low at just below 30% of GDP.

Current account deficit is large but FDI inflows offset associated risks in the short run

The annual current account deficit remains large (around -11% GDP). Exports are set to increase in the medium term with Cambodia emerging as a manufacturing hub. However in the short run, goods imports growth will remain elevated reflecting rising domestic demand and rising demand of investment related imports (equipment material).

However, this large external deficit should not be a cause of concern in the short run. Since 2011 it has been almost completely financed by net FDI inflows – largely related to power sector projects – and this is likely to continue in the next years. FDI inflows have also boosted official foreign exchange reserves to about USD4.2bn, which is almost 3.5 months import cover mid-2014 (3.4 months end-2013).

External debt burden is manageable

External debt is relatively high as a proportion of GDP (34%), but moderate in relation to export earnings (60%). And as most of the debt is on concessional terms, external debt-servicing is very low.

Macro- financial risk remain an issue

The financial system is very fragile with a high sensitivity to confidence shocks and capital outflows. The first reason behind this fragility is the lack of effectiveness of the monetary policy due to high dollarization in the economy. Second, the banking supervision is poor with   the current prudential framework underdeveloped. The banking system, saw a significant confidence shocks during the last election, the banking sector was subject to large withdrawal (-10% of total deposit in summer 2013). Third, the banking sector continues to be faced with high risks including rising foreign funding, strong exposure to the real estate sector and fast credit growth. 

Last review: 12/17/2014

Corporation

Corporation

A corporation (sometimes referred to as a C corporation) is an independent legal entity owned by shareholders. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs.
Corporations are more complex than other business structures because they tend to have costly administrative fees and complex tax and legal requirements. Because of these issues, corporations are generally suggested for established, larger companies with multiple employees.
For businesses in that position, corporations offer the ability to sell ownership shares in the business through stock offerings. “Going public” through an initial public offering (IPO) is a major selling point in attracting investment capital and high quality employees.
Forming a Corporation
A corporation is formed under the laws of the state in which it is registered. To form a corporation you’ll need to establish your business name and register your legal name with your state government. If you choose to operate under a name different than the officially registered name, you’ll most likely have to file a fictitious name (also known as an assumed name, trade name, or DBA name, short for "doing business as"). State laws vary, but generally corporations must include a corporate designation (Corporation, Incorporated, Limited) at the end of the business name.
To register your business as a corporation, you need to file certain documents, typically articles of incorporation, with your state’s Secretary of State office. Some states require corporations to establish directors and issue stock certificates to initial shareholders in the registration process. Contact your state business entity registration office to find out about specific filing requirements in the state where you form your business.
Once your business is registered, you must obtain business licenses and permits. Regulations vary by industry, state and locality. Use our Licensing & Permits tool to find a listing of federal, state and local permits, licenses and registrations you'll need to run a business.
If you are hiring employees, read more about federal and state regulations for employers.
Corporation Taxes
Corporations are required to pay federal, state, and in some cases, local taxes. Most businesses must register with the IRS and state and local revenue agencies, and receive a tax ID number or permit.
When you form a corporation, you create a separate tax-paying entity. Regular corporations are called “C corporations” because Subchapter C of Chapter 1 of the Internal Revenue Code is where you find general tax rules affecting corporations and their shareholders.
Unlike sole proprietors and partnerships, corporations pay income tax on their profits. In some cases, corporations are taxed twice - first, when the company makes a profit, and again when dividends are paid to shareholders on their personal tax returns. Corporations use IRS Form 1120 or 1120-A, U.S. Corporation Income Tax Return to report revenue to the federal government.
Shareholders who are also employees pay income tax on their wages. The corporation and the employee each pay one half of the Social Security and Medicare taxes, but this is usually a deductible business expense.
Read more about tax requirements for Corporations on IRS.gov.
Advantages of a Corporation

• Limited Liability. When it comes to taking responsibility for business debts and actions of a corporation, shareholders’ personal assets are protected. Shareholders can generally only be held accountable for their investment in stock of the company.
• Ability to Generate Capital. Corporations have an advantage when it comes to raising capital for their business - the ability to raise funds through the sale of stock.
• Corporate Tax Treatment. Corporations file taxes separately from their owners. Owners of a corporation only pay taxes on corporate profits paid to them in the form of salaries, bonuses, and dividends, while any additional profits are awarded a corporate tax rate, which is usually lower than a personal income tax rate.
• Attractive to Potential Employees. Corporations are generally able to attract and hire high-quality and motivated employees because they offer competitive benefits and the potential for partial ownership through stock options.

Disadvantages of a Corporation

• Time and Money. Corporations are costly and time-consuming ventures to start and operate. Incorporating requires start-up, operating and tax costs that most other structures do not require.
• Double Taxing. In some cases, corporations are taxed twice - first, when the company makes a profit, and again when dividends are paid to shareholders.
• Additional Paperwork. Because corporations are highly regulated by federal, state, and in some cases local agencies, there are increased paperwork and recordkeeping burdens associated with this entity.

Sole Proprietorship

 Sole Proprietorship
A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses and liabilities.
Forming a Sole Proprietorship
You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance writer, for example, you are a sole proprietor.
But like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by industry, state and locality. Use the Licensing & Permits tool to find a listing of federal, state and local permits, licenses and registrations you'll need to run a business.
If you choose to operate under a name different than your own, you will most likely have to file a fictitious name (also known as an assumed name, trade name, or DBA name, short for "doing business as"). You must choose an original name; it cannot already be claimed by another business.
Sole Proprietor Taxes
Because you and your business are one and the same, the business itself is not taxed separately-the sole proprietorship income is your income. You report income and/or losses and expenses with a Schedule C and the standard Form 1040. The “bottom-line amount” from Schedule C transfers to your personal tax return. It’s your responsibility to withhold and pay all income taxes, including self-employment and estimated taxes. You can find more information about sole proprietorship taxes and other forms at IRS.gov.
Advantages of a Sole Proprietorship

• Easy and inexpensive to form: A sole proprietorship is the simplest and least expensive business 
• structure to establish. Costs are minimal, with legal costs limited to obtaining the necessary license or permits.
• Complete control. Because you are the sole owner of the business, you have complete control over all decisions. You aren’t required to consult with anyone else when you need to make decisions or want to make changes. 
• Easy tax preparation. Your business is not taxed separately, so it’s easy to fulfill the tax reporting requirements for a sole proprietorship. The tax rates are also the lowest of the business structures.

Disadvantages of a Proprietorship

• Unlimited personal liability. Because there is no legal separation between you and your business, you can be held personally liable for the debts and obligations of the business. This risk extends to any liabilities incurred as a result of employee actions.
• Hard to raise money. Sole proprietors often face challenges when trying to raise money. Because you can’t sell stock in the business, investors won't often invest. Banks are also hesitant to lend to a sole proprietorship because of a perceived lack of credibility when it comes to repayment if the business fails.
• Heavy burden. The flipside of complete control is the burden and pressure it can impose. You alone are ultimately responsible for the successes and failures of your business.

Economy - overview	Brunei has a small well-to-do economy that depends on revenue from natural resource extraction but encompasses a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village tradition. Crude oil and natural gas production account for 60% of GDP and more than 90% of exports. Per capita GDP is among the highest in Asia, and substantial income from overseas investment supplements income from domestic production. For Bruneian citizens the government provides for all medical services and free education through the university level. The government of Brunei has been emphasizing through policy and resource investments it strong desire to diversity its economy both within the oil and gas sector and to new sectors.
GDP (purchasing power parity)	$22.25 billion (2013 est.) $21.93 billion (2012 est.) $21.73 billion (2011 est.) note: data are in 2013 US dollars
GDP (official exchange rate)	$16.56 billion (2013 est.)
GDP - real growth rate	1.4% (2013 est.) 0.9% (2012 est.) 3.4% (2011 est.)
GDP - per capita (PPP)	$54,800 (2013 est.) $54,900 (2012 est.) $55,200 (2011 est.) note: data are in 2013 US dollars
GDP - composition, by end use	household consumption: 22.1% government consumption: 18.2% investment in fixed capital: 14.6% investment in inventories: 0% exports of goods and services: 78.4% imports of goods and services: -33.3% (2013 est.)
GDP - composition by sector	agriculture: 0.7% industry: 70.9% services: 28.4% (2013 est.)
Population below poverty line	NA%
Labor force

Labor force - by occupation agriculture: 4.2% industry: 62.8% services: 33% (2008 est.) Unemployment rate 2.6% (2011) 2.7% (2010) Household income or consumption by percentage share lowest 10%: NA% highest 10%: NA% Budget revenues: $6.992 billion expenditures: $5.366 billion (2013 est.) Taxes and other revenues 42.2% of GDP (2013 est.) Budget surplus (+) or deficit (-) 9.8% of GDP (2013 est.) Inflation rate (consumer prices) 1% (2013 est.) 0.5% (2012 est.) Commercial bank prime lending rate 5.5% (31 December 2013 est.) 5.5% (31 December 2012 est.) Stock of narrow money $3.472 billion (31 December 2013 est.) $3.509 billion (31 December 2012 est.) Stock of broad money $11.92 billion (31 December 2013 est.) $11.41 billion (31 December 2012 est.) Stock of domestic credit $2.846 billion (31 December 2013 est.) $2.351 billion (31 December 2012 est.) Market value of publicly traded shares $NA Agriculture - products rice, vegetables, fruits; chickens, water buffalo, cattle, goats, eggs Industries petroleum, petroleum refining, liquefied natural gas, construction, agriculture, transportation Industrial production growth rate 1.5% (2013 est.) Current Account Balance $3.977 billion (2009 est.) Exports $12.75 billion (2011) $9.88 billion (2010) Exports - commodities crude oil, natural gas, garments Exports - partners Japan 45.7%, South Korea 15.1%, Australia 9.1%, NZ 6.6%, India 5.8%, Vietnam 4.7% (2012) Imports $3.02 billion (2011 est.) $2.73 billion (2010 est.) Imports - commodities iron and steel, motor vehicles, machinery and transport equipment, manufactured goods, food, chemicals Imports - partners Singapore 26.3%, China 21.3%, UK 21.3%, Malaysia 11.8% (2012) Debt - external $0 (2005) Exchange rates Bruneian dollars (BND) per US dollar - 1.23 (2013 est.) 1.2496 (2012 est.) 1.3635 (2010 est.) 1.45 (2009) Fiscal year 1 April - 31 March

Economy of Cambodia

The economy of Cambodia at present follows an open market system (market economy) and has seen rapid economic progress in the last decade.^[5] Cambodia had a GDP of $13 billion in 2012.^[6] Per capita income, although rapidly increasing, is low compared with most neighboring countries. Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas.^[7] The service sector is heavily concentrated on trading activities and catering-related services. Recently, Cambodia has reported that oil and natural gas reserves have been found off-shore.^[8]
In 1995, the government transformed the country's economic system from a planned economy to its present market-driven system.^[9] Following those changes, growth was estimated at a value of 7% while inflation dropped from 26% in 1994 to only 6% in 1995. Imports increased due to the influx of foreign aid, and exports, particularly from the country's garment industry, also increased.
After four years of improving economic performance, Cambodia's economy slowed in 1997-98 due to the regional economic crisis, civil unrest, and political infighting. Foreign investments declined during this period. Also, in 1998 the main harvest was hit by drought. But in 1999, the first full year of relative peace in 30 years, progress was made on economic reforms and growth resumed at 4%

Currently, Cambodia's foreign policy focuses on establishing friendly borders with its neighbors (such as Thailand and Vietnam), as well as integrating itself into regional (ASEAN) and global (WTO) trading systems. Some of the obstacles faced by this emerging economy are the need for a better education system and the lack of a skilled workforce; particularly in the poverty-ridden 

countryside, which struggles with inadequate basic infrastructure. Nonetheless, Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.

What is linguistics and why study it?

  What is linguistics and why study it?

Have you ever wondered why we say "feet" rather than "foots"? Or what we do with our mouths to make a b sound different from a p? Or why we rarely say what we actually mean? It's questions like these that intrigue the linguist!
Many people think that a linguist is someone who speaks many languages and works as a language teacher or as an interpreter at the United Nations. In fact, these people are more accurately called "Polyglots". While many linguists are polyglots, the focus of linguistics is about the structure, use and psychology of language in general.
Linguistics is concerned with the nature of language and communication. It deals both with the study of particular languages, and the search for general properties common to all languages or large groups of languages. It includes the following subareas :

• phonetics (the study of the production, acoustics and hearing of speech sounds)
• phonology (the patterning of sounds)
• morphology (the structure of words)
• syntax (the structure of sentences)
• semantics (meaning)
• pragmatics (language in context)

It also includes explorations into the nature of language variation (i. e., dialects), language change over time, how language is processed and stored in the brain, and how it is acquired by young children. All of these topics are examined in the coursework offered by the University of Arizona's Department of Linguistics.
Although linguistics is still largely unfamiliar to the educated public, it is a growing and exciting field, with an increasingly important impact on other fields as diverse as psychology, philosophy, education, language teaching, sociology, anthropology, computer science, and artificial intelligence.
A student with an interest in linguistics can choose among several different career paths. Some of these are listed below. Note that different career paths will benefit from different course concentrations, so it's a good idea to consult with the undergraduate advisor when choosing courses.