Economy after the Khmer Rouge

The severity of the Khmer Rouge

After the fall of Pol Pot and the establishment of the People's Republic of Kampuchea (PRK) in January 1979, the Khmer or also known as Kampuchean People's Revolutionary Party (KPRP) that was led by General Secretary Heng Samrin, set Cambodia's economic development policies. The Party congresses adopted these policies at meetings in January 1979, May 1981, and October 1985. In June 1981, there was a new constitution that was approved by the National Assembly. and this defined Cambodia's new socialist direction and the role of the state in economic affairs. After six more years of struggling with an economy of survival, KPRP leaders presented their First Plan, which represented a systematic and explainable party effort, focusing on planning and improving the economy of Cambodia.

During a July 1980 conference, the government called for  a simultaneous development of command economy and private economy. The conference also decided that the state should buy agricultural products from the peasants and should sell the manufactured goods at free-market prices. The KPRP further clarified its economic policy at its Fourth Party Congress from May 26 to May 29, 1981. It declared that the nation's economic system had three main parts, the state economy, the collective economy, and the family economy, and that each of these parts had its own role.

The state economy covered huge agricultural production, all industrial production, the communications and transportation networks, finance, and domestic and foreign trade. The collective economy, which is the largest of the three elements, was assigned an important role in agricultural rehabilitation and development. The family-run economy included the home economies of the peasants, most retail businesses, individual artisans, handicrafts, repair shops, and small trade.