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Basis of Knowledge

Introduction
Cambodia is a country standing in South East Asia that people in the world well-known, which full of cultural, artists, education and religion. In the past, during the king Jayavarman VII is a leader but the next generation the Cambodia has broken and has civil war and destroys everything.
Nowadays, Cambodia is a developing country that has been rebuilds everything newly. After Cambodia became a member of Asian Association, it is very fast for improvement such as economic, tourism, education and religion. Cambodia has many country donated to rebuild instruction, irrigation that made the Cambodian people easy in their life. The most of Cambodian are farmer. Agricultural is the main economic of Cambodia.
Also, there is a lot of country that investment in Cambodia today. Especially, there are a lot of Japanese companies are interested in another investment destination country Cambodia. Japan is a country that donated to Cambodia lots to rebuild the road, bright, building and other.

1.1 Official name of country
Destination Cambodia, this is a virtual travel guide to Kampuchea (the local name of the country).
・Official Name:
Preah Réachéanachâkr Kâmpuchea/ Kingdom of Cambodia
・Short form:
Kampuchea / Cambodia.
1.2 National Flag
The national flag of Cambodia consists of three horizontal stripes, the blue (top), red (double width), and blue with a white three-towered temple representing Angkor Wat outlined in black in the center of the red band; only national flag to incorporate a building in its design.

 

The Meaning of Cambodia Flag
The blue bands in the Cambodian flag represent integrity, justice and Heritage.
The red band in the middle represents liberty, cooperation and brotherhood.
In the center of the flag is a white emblem of the towers at Angkor Wat, which represents bravery.

1.3 National Land /Area
Cambodia is a country in mainland South-east Asia, covers a total area of 181,035 km2 (69,898 sq. mi), bordered to the west by Thailand, to the north by Laos and to the east by Vietnam, Cambodia is a roughly circular country with a southern coastline giving onto the Gulf of Thailand. The landscape comprises tropical rainforest and fertile cultivated land, with lush highlands rising in both the northeast and southeast. Rivers are a central feature of its make-up, with Phnom Penh situated at the confluence of the Bassac, the Tonle Sap and the mighty Mekong. A large inland lake, also called Tonle Sap, sits close to the Angkor Temple Complex in the north. There are numerous beaches and offshore islands along the southwest coast.
However, Cambodia’s main landscape is its jewel, comprising tropical rainforest and fertile cultivated land, with lush highlands rising in both the north east and south east. This rich, nutritious land also includes a wealth of nature, including rare and endangered species such as Indochinese tigers, Asian elephants and freshwater Irrawaddy dolphins.
Unfortunately Cambodia suffers from high rates of illegal trading in endangered wildlife and logging, and man is fast wiping out these incredible creatures and their habitat. Around Cambodia visitors can find various eco-camps and rainforest preservation trips offering excursions, education and an alternative form of income to locals previously involved in illegal trade.
1.4 Capital
Phnom Penh is the capital, which has an area of 290 square kilometers, is seriously considered the major center of administration, commerce, communication, culture, economy, education, industry, policy, and tourism. It is also home to legal immigrants from Australia, Burma, China, France, India, Japan, Korea, Laos, Malaysia, Philippine, Russia, Singapore, Taiwan, Thailand, UK, USA, Vietnam etc. The Phnom Penh Capital is a lifeline of Cambodian economy for sustaining residents and it is a tropical paradise for tourists and businessmen. The Phnom Penh’s resident population is said to total over two million people.

1.5 Weather
Being located in the tropical zone north of the equator, Cambodia has a monsoon climate.
There are two distinct seasons:
oWet season start from: May – October
oDry season start from: November – April.

1.5.1 Cambodia’s Wet Season
Cambodia’s Wet Season comes courtesy of the southwest monsoon, which blows from May to October, bringing with it some three-quarters (3/4) of Cambodia’s annual rainfall. Cambodia, throughout much of the rainy season, daytime temperatures average between 25°C and 27°C.
Not surprisingly, wet season is characterized by rain, and during the peak of wet season from July to September it can rain every day. Rainy days however tend to have a few hours of heavy rain rather than being all-day downpours, though the latter do sometimes occur — you will get wet travelling in a Cambodian rainy season.
Aside from getting drenched, the main disadvantage of travelling in wet season in Cambodia relates to flooding and degraded road conditions. The bulk of roads in Cambodia are dirt and in rainy season they turn to heavily rutted and pot-holed mud pits. Travelling in rural areas, particularly the north and northeast of the country can be slowed considerably. You will still be able to go just about anywhere, it will just take longer.
Lightweight clothing is worn in rainy season such as: Umbrellas and raincoats are advisable during the monsoon season because when it rains, it pours. Rain may continue solidly for days on end.

1.5.2 Cambodia’s Dry Season
Cambodia’s dry season runs from November to April, when the dusty northeast monsoon arrives. Blowing like a hair-dryer set to high, the northeast monsoon dries out the country fast. While November and January are quite cool (high C20s) by April, the weather is scorching and so-dry it will take your breath away. Characterized by heat and dust, this season coincides with Cambodia’s peak tourist season — travelers arrive in their droves between November and January to take advantage of the lack of rain and relative cool. By March, travelling can be uncomfortable and hot, while April can be excruciating. Usually being the hottest of the year with temperatures in excess of 35°C at times.
As the country dries out, badly rutted roads get graded and trip times improve dramatically, though they get incredibly dusty. Cambodia’s beach strips at Kep, Sihanoukville and Ko Kong bask in brilliant sunshine with clear calm waters — if you’re a beach bum, dry season is the season for you.

1.6 Time Different
In this case, we compare time difference between Cambodia and Japan.
Japan is 2 hours ahead of Cambodia. That means when its 2:48 PM Wednesday, in Cambodia is
4:48 PM Wednesday, in Japan (Tokyo).

1.7 Population
Total population is 15.77 million. Ninety percent of residents are Khmer, and the remnants of these are Chinese, Vietnamese, Indian, Thai, Phnorng, Kuoy, Stineng, Tamil, etc.
Here are a number of Cambodia people, calculate on 15-07-2015.

NumberDescription
15,770,502Total population
7,719,933Male population
8,050,570Female population

1.8 Language
The Khmer language now serves as the official language of Cambodia, where it is spoken by the majority of the population, an estimated 14,494,293 people. It is also spoken by approximately 1.3 million people in southeast Thailand (Surin Province, called Khmer Surin) and by more than 1 million people in southern Vietnam (Khmer Krom).
1.9 Currency
The riel (Khmer: រៀល; sign: ៛; code: KHR) is the Cambodia’s official currency. The Cambodia’s currency can be exchange is KHR to USD rate because the united stated dollar can be used for trade in Cambodia.
Anywhere in the Cambodia you can pay for something in dollars and get your change in a mixture of dollars and riel.
There are some area can be use other currency like in Battambang, Poi Pet, Pailin and other areas near the Thai border, the Thai baht is also accepted.

1.10 Religion
There are several religions that the Cambodia’s population follows Theravada Buddhism, Hinduism, Islam and Christianity.

Theravada Buddhism is Cambodia’s state religion and has been since the 13th century, except during the Khmer Rouge period. Today the country is about 95 percent Buddhist.
Buddhists see the universe and all life as part of a cycle of eternal change. Buddhists believe that a person is continually reborn, in human or nonhuman form, depending on his or her actions in a previous life. They are released from this cycle only when they reach nirvana, which may be attained by achieving good. Otherwise, they abstain from all of the Five Precepts of Buddhist belief, which prohibit killing, stealing, fornication, lying, and drinking. While they may not follow all of the rules, Cambodians still believe in reincarnation and the idea that one’s position in life is derived from past actions. (This may explain why, as a rule, they treat their dogs so poorly.)
Hinduism was the first influenced in Cambodia during the beginning of the Kingdom of Funan. It’s one of the Khmer Empire’s official religions. Cambodia is the home to one of the only two temples dedicated to Brahma in the world. Angkor Wat of Cambodia is the largest Hindu temple of the world.
Islam is the religion of a majority of the Cham and Malay minorities in Cambodia. This religion of Cambodia is making up 3 percent of the population.
However, Christianity is being active and popular among a large number of population as well in the capital and provinces, showing a sign of growth.
Here is the Cambodia Religion Flag

 

The meaning of Cambodia religion flag:

-The Blue symbolizes the spirit of Universal Compassion for all being.
-The Yellow symbolizes the Middle Way which avoids all extremes and brings balance and liberation.
-The Red symbolizes the Blessings that practice of the Buddha’s Teaching brings.
-The White symbolizes the purity of The Buddha’s Teaching and the liberation it brings.
-The Orange light symbolizes the unshakable Wisdom of Buddha’s Teaching.
-The Combination Colors symbolizes the universality of the Truth of the Buddha’s Teaching.

1.11 The Cambodia’s Main History
Despite being one of the poorest countries in Southeast Asia today, Cambodia was once an extremely prosperous nation. Cambodia has a long and rich history, and was once strong and independent, taking influence from other Asian nations such as India and China.
In the early days Cambodia stretched across much of Southeast Asia, and this impressive influence can still be seen to this day in neighboring countries such as Thailand, Laos and Vietnam where vast monuments, palaces and temples created in the early Khmer style can still be seen to this day.
However, Cambodia was torn apart by a number of conflicts, which started in the 13th century when Cambodia was at war with Thailand and gradually escalated over the years. Cambodia then came under French control and was heavily bombed during the First and Second World Wars.
Finally, the atrocities committed by the Khmer Rouge during the second half of the 20th century resulted in the murder of around three million Khmer citizens, with families being torn apart and forced to work hard in the countryside under threat of death.
Before being plunged into civil conflict in the 1970’s Cambodia had begun to industrialize, though most of the labor force was still engaged in agriculture. The country was self-sufficient in food and produced exportable surpluses of its principal crops of rice and corn. In spite of relatively low yields and a single harvest per year, Cambodia annually exported hundreds of thousands of tons of rice.
In 1975 the newly installed Khmer Rouge government nationalized all means of production in Cambodia. Money and private property were abolished, and agriculture was collectivized (ownership was transferred to the people as a group, represented by the state).
The Khmer Rouge Four-Year Plan, a utopian document drafted in 1976, envisaged multiple plantings of rice and a vastly expanded irrigation system. The plan aimed to increase income from exports of rice and other products and to use this income to buy machinery with which to industrialize the country. The Four-Year Plan was poorly thought out, brutally enforced, and unsuccessful. Rice production rose slightly, but between 1976 and 1978, hundreds of thousands of people died from malnutrition, overwork, and mistreated or misdiagnosed diseases.
The Khmer Rouge executed hundreds of thousands more people whom they judged to be enemies of the regime. The atrocities of the Khmer Rouge period decimated Cambodia’s labor force.
After the Khmer Rouge was overthrown in early 1979, the government’s grip on agricultural production loosened, and millions of Cambodians attempted to resume their lives as subsistence farmers. By the mid-1990s Cambodia once again achieved self-sufficiency in rice production and began to export small quantities of rice. The country’s infrastructure improved gradually in the 1990s, largely due to massive infusions of foreign assistance. Other sectors of the economy were less fortunate, however. By 1995 the country’s economy as a whole was performing at only 40 to 50 percent of its pre-1970 capacity. For many visitors to the country, Cambodia’s poverty is masked by the prosperity of sections of Siem Reap town.
Poverty in Cambodia is overwhelmingly a rural phenomenon. Over 93% of the country’s total number of poor live in rural areas, 6.2% live in other urban areas, with a tiny percentage in urban Phnom Penh.
Cambodia must find ways of enhancing the productivity of the rural economy to accelerate the growth of rural incomes and opportunities. Poverty rates are high among those whose household heads have little or no education. Similarly, years of schooling and literacy of household heads are strongly related to poverty. This shows the lack of human capital on the part of the poor and brings out the importance of investing in human capital as an effective means of fighting poverty in Cambodia.
In addition, poverty incidence is high among households whose heads earn their living as mining, agricultural and construction workers. Targeting agriculture, however, is the most important as it accounts for 63% of the total number of the poor in the country?
Improvements in all aspects of Education, coupled with improvements in agricultural efficiency and output, will help to lift the greatest number of people out of poverty and many of our projects are working to support the government’s activities in these areas.
1.12 Cambodia Political System
The Prime Minister of Cambodia is a representative from the ruling party of the National Assembly. He or she is appointed by the King on the recommendation of the President and Vice Presidents of the National Assembly. In order for a person to become Prime Minister, he or she must first be given a vote of confidence by the National Assembly.
The Prime Minister is officially the Head of Government in Cambodia. Upon entry into office, he or she appoints a Council of Ministers who is responsible to the Prime Minister. Officially, the Prime Minister’s duties include chairing meetings of the Council of Ministers (Cambodia’s version of a Cabinet) and appointing and leading a government. The Prime Minister and his government make up Cambodia’s executive branch of government.
The current Prime Minister is Cambodian People’s Party (CPP) member Hun Sen. He has held this position since the criticized 1998 election; one year after the CPP staged a bloody coup in Phnom Penh to overthrow elected Prime Minister Prince Norodom Ranariddh, president of the FUNCINPEC party. Hun Sen has vowed to rule until he is 74. Hun Sen is a former Khmer Rouge member who defected and oversaw Cambodia’s rise from the ashes of war. His government is regularly accused of ignoring human rights and suppressing political dissent. After the 2013 election results, disputed by Hun Sen’s opposition, demonstrators were injured and killed in Cambodia in protests in the capital where a reported 20,000 protesters gathered, some clashing with riot police.

1.13 Cambodian Education System
In Cambodia, an education system has been in place since at least from the thirteenth century on. Traditionally, Cambodian education took place in the Wats (Buddhist monasteries) and was offered exclusively to the male population. The education involved basic literature, the foundation of religion and skills for daily life like carpentry, artistry, craftwork, constructing, playing instruments etc.
This ‘traditional’ education was gradually changed when Cambodia was a French colony (1853-1963). The French introduced a formal education system influenced by a Western educational model, which was developed through the independence period (1960s), alongside with the traditional education. During the following civil wars, the education system suffered a chronic crisis and was completely destroyed during the Red Khmer regime (1970s). Between 1980s and 1990s, education was reconstructed from almost ‘nothing’ and has been gradually developed until now.
Cambodian general education is based on a national school curriculum that consists of two main parts: basic education and upper secondary education. Basic education curriculum is divided into three cycles of three years each.
Upper Secondary Education curriculum consists of two different phases. The curriculum for the first phase (grade 10) is identical to the third cycle of primary education (see above). The second phase (grade 11-12) has two main components: Compulsory and Electives.
Primary Education
Presently, after its reform in 1996, the formal educational structure of Cambodia is formulated in 6+3+3. This means 12 years for the completion of general education that divides up into six years for primary education (grade 1 to 6) and six years for secondary general education (grade 7 to 12).
Cambodia is struggling to throw off the shackles of its past in education and in many others ways. Although education is theoretically free enrolment fees may vary inversely according to parents’ position is society and hence the poor are often still deprived of their rights. The process begins with 6 years of primary education.
Secondary Education
Secondary education consists of three years each for lower secondary education (grade 7 to 9) and upper secondary education (grade 10 to 12). This formulation does not include at least one year for pre-school education (kindergarten) for children from 3 to below 6 years old and university education of 4 to 5 years. Two others components of Cambodian educational structure involve non-formal education providing all children, youth, adult, disabled people with literacy and access to life skills. The other component is teacher training education. This allows students that successfully completed grade 12 or grade 9 to pursue teacher certificates at provincial teacher training colleges (for primary school teachers) or regional teacher training centers (for lower secondary school teachers).
Tertiary Education
Despite the ravages of the past, higher education is available at the Royal University of Phnom Penh, the Royal Agricultural University, the Royal University of Fine Arts, and various Faculties of Medicine, of Law and Economics, and of Business. The Higher Technical Institute of Soviet-Khmer Friendship has been rebranded the Institute of Technology of Cambodia, while the Australian-funded Maharishi Vedic University functions in rural Prey Veng Province.

The Royal University of Phnom Penh is Cambodia’s oldest university having been founded in 1960 by the Cambodian King assisted with French money. It was reopened in 1998, and now approximately 4,000 students may study Khmer literature, biology, chemistry, computer science, geography, mathematics, philosophy, psychology and sociology there.
1.14Politics / Economic trends

Politics
Cambodia is a constitutional monarchy. The present King, His Majesty Norodom Sihamoni, acceded to the throne on 29 October 2004.
The Constitution stipulates that Cambodia adopts a policy of liberal democracy and pluralism, and that the Cambodian people are masters of the country. The Constitution also sets out that the power of the Legislative, Executive and Judicial branches shall be separated. (Article 51)
The country has a bicameral legislature, which consists of the National Assembly and the Senate. The latest elections for the National Assembly was held on 27th July 2008 in which the Cambodian People’s Party (CPP) won landslide and occupied 90seats, followed by Sam Rainsy Party (SRP), Human Right Party, FUNCINPEC and Norodom Ranaridh Party which won 26 seats, 3 seats, 2 seats and 2 seats respectively. The Senate held its last election in 2006, through which the CPP gained 45 seats, FUNCINPEC 10 seats and SRP 2 seats. Remaining 2 seats are appointed by the King.
Above all, the CPP has formed the Royal Government with FUNCINPEC and Mr. HUN SEN has been elected as the Prime Minister of the Kingdom of Cambodia.
Economic Trend
・Gross Domestic Product
Cambodian economy maintained high growth of more than 10% p.a. for four consecutive years between 2004 and 2007. While GDP growth dropped to 0.1% in 2009, having suffered from world economic recession started in the latter half of 2008, GDP growth rate in 2010 recovered up to 6.0%. According to the MEF’s forecast, the growth rates are estimated to persist between 6.0% and 6.5% in 2011 and 2012 (below figure).


Source: Ministry of Economy and Finance (MEF), Cambodia
Trend of GDP Annual Growth
GDP amount has been steadily grown with 43,057 billion Riels in 2009 and 47,048 billion Riels in 2010 and is projected to be 52,141 billion Riel in 2011 (approximately USD 12.9 billion) and 57, 363 billion Riel in 2012 (approximately USD 14.2 billion).
Per capita GDP has also steadily increased since 1998 when the Riel greatly depreciated against the dollar. Per capita GDP in 2010 reached USD 830, an increase of approximately 70% from 487 US dollars in 2005. It is projected to reach USD 904 in 2011 and USD 984 in 2012 respectively, according to the MEF’s forecast. (Below figure)

 

Source: Ministry of Economy and Finance (MEF), Cambodia
GDP Per Capita
・Gross composition
The composition of GDP by industrial sectors is as shown in Figure II-1-3. One of the characteristics of changes took place in between 2006 and 2011 is that the ratio of industry dropped from 26% to 22%, while the ratio of Agriculture, Forestry and Fisheries increased from 30% to 32%.
As for “Agriculture”, the crops’ gross value added (GVA) dropped to 3.7% in 2011, although it grew at the highest record of 27.6% in 2005. “Livestock & Poultry” recorded the growth of 5% or more in 2009 and 2010 but growth ratio became lower in 2011. The growth ratio of “Fisheries” and “Forestry & Logging” sharply dropped in 2010, but recovered in 2011 to 3.8% and 1.1% respectively.
Among “Industry”, the “Textile, Apparel & Footwear” and “Construction”, which occupied 76% share in 2007, have been the major players for fast growth of the sector. These subsectors, however, were seriously suffered from the financial crisis of 2008. Industry’s growth decreased to 4.0% in 2008 and -9.5% in 2009 but it recovered to 13.6% in 2010. According to MEF’s forecast, the growth rate of “Industry” will be remained at 8% to 9% in next few years.
“Services” occupied 38% share in GDP in 2011 with heavy dependency on the “Trade” and “Transport & Communication”. “Hotel & Restaurant” which have been benefited from tourism and infrastructure development remained high growth ratio constantly until 2011, except for 2009. While the growth rates of “Real Estate and Business” were sharply dropped to -2.5% in 2009 and -15.8% in 2010 due to world economic crisis of 2008, the rate recovered to 5.1% in 2011.

Note: Figures of 2011 are the estimated value.

Source: Ministry of Economic and Finance, Cambodia
Composition of GDP by Economic Activity
GDP Growth Rate by Economic Activity, 2005-2011

 Growth Rate of GDP (%)
2005200620072008200920102011e
Agriculture, Fisheries & Forestry15.75.55.05.75.44.03.6
Crops27.65.38.26.65.85.73.7
Livestock & Poultry5.68.23.73.85.05.63.9
Fisheries5.63.80.86.56.00.43.8
Forestry & Logging5.17.01.10.91.10.21.1
Industry12.718.38.44.0-9.513.68.5
Manufacturing9.717.48.93.1-15.529.69.0
 Textile, Apparel & Footwear9.220.410.02.2-9.018.510.4
Construction22.120.06.75.85.0-25.56.4
Services13.110.110.19.02.33.36.3
Trade8.57.19.59.44.27.56.0
Hotel & Restaurant22.313.710.29.81.811.210.7
Transport & Communication14.52.17.27.13.98.06.8
Real Estate & Business7.810.910.75.0-2.5-15.85.1
Other Services18.317.212.112.02.94.24.6
Taxes on Products6.17.645.79.16.10.14.1
GDP13.310.810.26.70.16.06.0

Note: Figures of 2011 are the estimated value.
Source: Ministry of Economic and Finance, Cambodia

Breakdown of Industry in GDP, 2005-2011 (Unit: Billion Riel)

 2005200620072008200920102011e
Mining97115135165196279317
Manufacturing4,5845,5416,0746,4416,2086,9137,742
Food, Beverages & Tobacco6086647579249781,0711,160
Textile, Apparel & Footwear3,1583,8694,2344,3153,9384,4034,993
  Wood, Paper & Publishing148171203239252273294
  Rubber Manufacturing126181148153168219248
  Other Manufacturing5456577328118729471,047
Electricity, Gas & Water124164195212230252280
Construction1,6311,9952,3382,5722,6942,8453,161
Total Industry6,4367,8168,7419,3899,32710,28911,501

Note: Figures of 2011 are the estimated value.
Source: Ministry of Economic and Finance, Cambodia
The comparison of industrial structure with other Southeast Asian nations, as shown in below table, indicates that Cambodia is still at the initial stage of industrialization together with Laos and Myanmar.
Table II-1-3 Composition of GDP of Selected Southeast Asian Countries in 2010, Unit: (%)

CountryAgricultureIndustryService
Cambodia36.023.041.0
Indonesia15.347.037.6
Laos30.827.441.8
Malaysia10.443.646.0
Myanmar36.426.037.6
Philippines12.332.655.1
Singapore0.028.371.7
Thailand12.444.742.9
Vietnam20.641.138.3

Source: Asian Development Bank (ADB), Key Indicators 2011
•Gross Domestic Expenditures (GDE)
The following figure presents the composition of gross domestic expenditures (GDE) by component for the last ten years (2002-2011). In Cambodia, the private final consumption is the largest component of demand occupying around 80% of GDE. Although the gross fixed capital formation regularly continued to be equivalent to nearly 20% of GDE, it decreased its share to 16% in 2010 and 2011 (estimate).
Cambodian economy heavily depends on exports and imports. The exports and imports were equivalent to around 60% and 70% of GDE respectively in the first half of the 2000s. Although the size of imports to GDE has tended to decrease since 2006, the imports are still equivalent to 62% of GDE. Since the imports usually exceed the exports, net exports (exports minus imports) have continued to have a deficit.

Note: Figures of 2011 are the estimated values.

Source: Ministry of Economy and Finance (MEF), Cambodia
Composition of Gross Domestic Expenditures
(Exports and Imports are shown in the form of Net Exports)

 

Note: Figures of 2011 are the estimated values.

Source: Ministry of Economy and Finance (MEF), Cambodia
Composition of Gross Domestic Expenditures
(Exports and Imports Are Separately Shown)
The major driving force of Cambodia’s economic growth is the private final consumption. At the same time, the gross capital formation also made a significant contribution to the growth during the period from 2002 until 2009. The contribution of net exports is often negative because of negative trade balance.

Source: Ministry of Economy and Finance (MEF), Cambodia

Contribution of Components to Changes in Gross Domestic Expenditures at 2000 Market Prices
•GNI per capita
According to ADB’s data, Cambodia’s GNI per capita from 2002 to 2008 had increased by 55 US dollars on annual average and reached 650 US dollars in 2009. Although the figure of Cambodia is still among the lowest in the region (below figure), people with the purchasing power to buy high-end products are now found in Phnom Penh City. Although for investors the Cambodian market seems to be limited, they can enjoy the ASEAN integrated market once the ten ASEAN member countries reduce all import tariffs, which is scheduled for implementation by 2015.

Source: Asian Development Bank (ADB), Key Indicators 2011

GNI Per Capita of ASEAN
Consumer Price Index (CPI)
As shown in below figure, although the inflation rate jumped up to 14.0% in 2007 and 12.5%