via Khmer NZ News Media
Posted on 10 June 2010
The Mirror, Vol. 14, No. 668
“Donors and aid organizations provide development aid to Cambodia because they want the Cambodian government to create mechanisms to fight corruption, effectively implementing an anti-corruption law. In 2010, Cambodia received pledges of US$1.1 billion of aid from donors, where Japan provides US$131 million, comparable to China that provides more than US$100 million. The third big donor is the United States of America that provides US$68 million, Germany more than US$65 million, and Australia more than US$61 million. Besides, the Asia Development Bank, the World Bank, and many other global institutions provide most of the rest of the aid amounting to US$352 million.
“Also, twelve organizations of the United Nations provide more than US$86 million, and European countries, including through the European Commission, provide more than US$255 million, among which Germany provides most with US$65 million.
“Besides the intention to see the government organize anti-corruption mechanisms, the donors and aid organizations as well as international financial institutions focus on the plans to maintain macro-economic stability and to reduce the poverty of Khmer citizens, by suggesting that increased aid efficiency is essential, and they hope that the Cambodian government will use the aid efficiently and transparently, to encourage economic growth. If Cambodia cannot achieve economic growth, poverty alleviation will be difficult. Therefore, the donors and aid organizations will step up their mechanisms to carefully monitor the use of aid.
“The country director of the World Bank in Cambodia called for concentration to strengthen the economic basis, like through the improvement of competitiveness and of the investment atmosphere, the provision of concession land that benefits the poor, solutions for citizens who lose their land, public administration reforms, and especially the improvement of transparent control and use of income from natural resources.
“The International Monetary Fund, an institution that provides technical assistance on finance and banking, suggested that the Cambodian government has to cut down the national deficit that increased by 6% in 2009 down to 5% by eliminating tax exemptions, though they are important to attract investors.
“Formerly, in order to attract investors to Cambodia, the government decided not to tax factories or enterprises newly opened during the first two or three years, depending on whether those factors or enterprises had gained profit or lost.
“Also, the representative of the European Union demanded the improvement of education quality and the promotion of primary education, fields which are still weak. He said that the number of people who cannot attend school is still high. Thus, the government has to ensure that boys and girls have equal opportunities to go to school, so as to increase educational opportunities for girls. And the government has to decrease the number of students that drop out from school.
“Not only in Cambodia, but also in other developing countries in the world, financial aid is crucial for the development of these countries.
“Among the more than 14 million Khmer citizens, about 4 million live under the poverty line. In 2006, Cambodia received more than US$700 million financial aid, and the figures keep increasing from year to year, where in 2010 the aid pledges increased to US$1.1 billion. Nevertheless, expert officials estimated that in 2011, the aid will decline to US$958 million and in 2012 to US$750 million.
“The opposition parties suggested to donors and aid organizations not to provide aid to the government, accusing the government of committing corruption, and the government does not use the aid properly. But the aid keeps rising anyway.
“It is good that the government is successful in trusting donors and aid organizations in its ruling. But what the government had promised is not just to satisfy the donors. The government must work on its weak points and should not arbitrarily react against criticisms. Particularly, it should be able to carry out its commitment to conduct public administrative and judicial reforms, to strengthen the transparent management of income from oil and gas resources, and to strengthen the effective implementation of the anti-corruption law.
“If the government can achieve success following its commitments, we believe that the aid to be provided in 2011 would be more than that in 2010.”
Khmer Amatak, Vol.11, #777, 9.6.2010
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Wednesday, 9 June 2010
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