Article: Cambodia's Fragile Recovery // Rebels on Run, Economy Improving as Coalition Holds It Together

PHNOM PENH Nearly a year after Cambodia held national elections under United Nations auspices, there is a war raging, the economy is limping, and gunmen roam the roads. But the country is not a basket case.

The government, an odd-couple coalition of a failed communist regime and a royalist guerrilla force, is still in place despite a decade of hatred and widespread predictions it would collapse.

Its combined army has captured the headquarters of the Khmer Rouge near the Thai border and has the Maoist guerrilla group - which ruled Cambodia in a savage reign from 1975 to 1978 - on the defensive, if not defeated.

After years of runaway inflation that meant printing money to pay salaries, ...

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