Economic Theory and Political Strategy—Cambodia

Abstract

The political-strategic factors requiring economic analysis concerned what all agreed would be a transition from the Lon Nol regime, the Khmer Republic, to a government which at the least would have substantial Khmers Rouges representation. A more humane transition to the most liberal of feasible regimes was the American objective, shared by a significant segment of Lon Nol’s Cabinet. Monetary stabilisation, restoring confidence in the riel and bringing inflation under control, would, it was believed, importantly strengthen the Lon Nol regime.