NVDB005_-_CH_4.001._The_Global_Gateway_Initiative_-_Vichny-5

Diplomatic Briefing — KAS Cambodia and CICP

74 — DP Vol. 05

The Global Gateway Initiative

transgressions have been committed by other partner countries enjoying comparable market privileges 11.

This clash of opinions has inevitably soured bilateral relations to some degree, making the acceptance of new joint ventures such as the GGI a more demanding endeavor. However, there are also some positive lessons to take away from these events. While a full withdrawal of the EBA was indeed within the EU’s prerogative, Brussels chose not to take advantage of this option. Instead, it sought to preserve existing channels of communication with Phnom Penh, which is evidence of its aspiration to maintain and increase its engagement in the ASEAN area in general. To that end, the EU has often chosen collaboration instead of judgment in its dealings with the Kingdom (as shown during the COVID-19 pandemic) 12. Europe’s growing involvement is hardly surprising given the threat to its strategic economic interest in the region that actors such as China pose. Cambodia can and should take advantage of Brussels’ openness in the pursuit of its own developmental agenda via promising platforms such as the GGI. There is no question that compromise on both sides regarding the Kingdom’s mode of gover- nance will be necessary to see this vision through. Nevertheless, Phnom Penh would be wise not to let that requirement obscure the enormous benefits for the domain of technology in a number of key sectors that the initiative could bring about. After all, the economic stability and progress of a country (which is now inherently tied to the digital realm) are just as important to politicians as the integrity of the positions of power they occupy.

The second factor of importance is the recency of the GGI’s announcement and the relatively inexact implementation strategy that underpins it. Since the initiative’s emergence last year, there are still a number of unknowns surrounding the fulfillment of its pledges on the ground. More time will be needed to adequately examine the platform’s operational intricacies and assess the impact it could have in the territories where it is deployed. In such a context, patience rather than an eagerness to acquire fresh funds would be advisable on Cambodia’s part. This necessitates carefully planned and comprehensively conducted multilateral negotiations that are based on both nation-specific realities and lessons drawn from other global investment initiatives (such as China’s Belt and Road).

11 https://www.idc-cdi.com/the-eu-needs-to-appreciate-cambodias- role-and-voice/

12 https://ec.europa.eu/trade/policy/countries-and-regions/ countries/cambodia/#:~:text=The%20EU%20ranked%20as%20 the,of%20the%20EU’s%20total%20trade

Conclusion

Recent years have revealed a Cambodia that is increas- ingly willing to embrace the global digitalization of human life. With this ambition comes the need for international collaboration between the Kingdom and foreign partners that can deliver on the financial and experiential needs that currently define the Kingdom’s tech sector. To avoid taking sides and facing adverse consequences in the tug of war between China and the U.S., Phnom Penh can look towards another player whose attention has increasingly been focused on bolstering its Southeast Asian ties - the EU. Its new Global Gateway Initiative (GGI) promises to revolu- tionize Europe’s investment relations with the rest of the world and by extension breathe new life into digital economies across the planet.

Collaborating as part of such a platform is an oppor- tunity for Cambodia to address many of the vulnerabil- ities and shortcomings it has been forced to confront at the onset of the digital age. Mere monetary investment in material infrastructure related to the sector is only one part of this equation. The GGI’s instruments could, for instance, help to make the government’s online presence more dependable and resilient in the face of potential future subversion. Moreover, digital financial systems and services that are only now being intro- duced could become more widespread and accessible throughout the country. The Kingdom’s workforce could also be given the educational opportunity to expand its expertise at a time when markets are in greater need for technology-centered skills. Generally speaking, all of this activity under the GGI is more than likely to produce a positive spillover effect in terms of digital innovation that would in turn positively impact other crucial sectors of the Cambodian economy.

There are challenges on the road ahead - the dialogue between Brussels and Phnom Penh has had its fair share of disagreements in recent times and their resolution will by no means be a simple task. Furthermore, as a foreign policy project, the GGI is still in its early days and remains far from the fully-fledged intercontinental investment powerhouse it aspires to be. Nevertheless, the Kingdom should remain undeterred - 2022 represents a critical moment in time as the EU is arguably closer to Southeast Asia than ever before. Cambodia should seize the opportunity to realize its mounting digital objectives through assis- tance from Europe, even if that would require a degree of diplomatic tact and compromise that the bloc and the country have struggled to reach in the past.