Cambodia is no longer a communist state, having officially transitioned away from its historic Marxist-Leninist political system in the early 1990s following the Paris Peace Accords and United Nations-backed democratic elections. The nation operates under a constitutional monarchy with a parliamentary system of government, featuring a multi-party electoral framework alongside a market-driven capitalist economy. While the long-ruling Cambodian People's Party maintains dominant political control over state institutions, the country actively encourages foreign direct investment, private enterprise, and global trade.