French Protectorate of Cambodia - Economy During French Colonialism

Economy During French Colonialism

Originally serving as a buffer territory for France between its more important Vietnamese colonies and Siam, Cambodia was not initially seen as an economically important area. The colonial government's budget originally relied largely on tax collections in Cambodia as its main source of revenue, and Cambodians paid the highest taxes per capita among the French colonies in Indochina. Poor and sometimes unstable administration in the early years of French rule in Cambodia meant infrastructure and urbanization grew at a much lesser rate than in Vietnam and traditional social structures in villages still remained. However, as French rule straightened after the Franco-Siamese War, development slowly began in Cambodia, where rice and pepper crops allowed for the economy to grow. As the French automobile industry grew, rubber plantations like the ones already in Cochinchina and Annam were built and run by French investors. Economic diversification continued throughout the 1920s, when corn and cotton crops were also grown. Despite economic expansion and investment, Cambodians still continued to pay high taxes and in 1916, protests broke out demanding for tax cuts.

Infrastructure and public works were also developed under French rule, and roads and railroads were constructed in Cambodian territory. Most notably, a railway connected Phnom Penh with Battambang on the Thai border.

Industry was later developed but was primarily designed to process raw materials for local use or for export. As in nearby British Burma and British Malaya, foreigners dominated the work force of the economy due to French discrimination against the Cambodians from holding important economic positions. Many Vietnamese were recruited to work on rubber plantations and later immigrants played key roles in the colonial economy as fisherman and businessmen. Chinese Cambodians continued to be largely involved in commerce but higher positions were given to the French.