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Thursday, June 21, 2007

Donors pledge US$689m for 2007 to impoverished Cambodia

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Posted: 20 June 2007 2259 hrs

 


 


PHNOM PENH : Cambodia's donors pledged 689 million dollars to the impoverished country Wednesday, including tens of millions from China, which participated in the annual aid meeting for the first time.


The money for the coming year was promised despite strong concerns over rampant corruption and demands by rights groups that donors get tough on the government's apparent refusal to reform.


"Our development partners saw our financial performance is good and this is why the amount of aid was increased," Finance Minister Keat Chhon told reporters after the meeting. This year's pledges mark a significant increase over the 601 million dollars offered last year. “We have taken several concrete and important steps towards accelerating progress," Keat Chhon said.


China, one of Cambodia's biggest supporters which had previously avoided the annual donor talks, pledged 91 million dollars, Keat Chhon said. Beijing routinely gives Cambodia hundreds of millions in aid outside the donor structure, and has been repeatedly praised by Prime Minister Hun Sen for not attaching any conditions to its money.


Already Cambodia's largest donor, Japan said earlier it would likely offer the same, if not more money than last year's 110 million dollars. While acknowledging Cambodia's economic growth as a positive sign, Japan said in a statement earlier that "the slow progress in certain governance reform programmes seems to need particular attention." Foreign donors announced their pledges after two days of aid talks that focussed largely on the government's failure to pass anti-corruption legislation to tackle rampant graft.


Cambodia was ranked 151 out of 163 countries in Transparency International's 2006 corruption index, which compares graft levels in governments around the world.


Keat Chhon told reporters after the meeting that the government would be more accountable to its people and its financial backers.


"We are committed to speeding up reforms ... for Cambodia and her people. We have the political will to push reform forward," he said, adding that Cambodia would continue to rely heavily on foreign aid.


Donor aid accounts for more than half of Cambodia's national budget.


Diplomats lauded Cambodia's increased willingness to work with donors, with German Ambassador Pius Fischer saying: "In many areas, there is a lot of progress to recognise ... particularly in health, education, and infrastructure.


But the opening of the talks Tuesday was marred by the detention of foreign protesters which rights groups said highlighted the government's continuing hardline stance towards dissent.


The eight Westerners, who were demanding the release of two men many rights advocates feel have been wrongly jailed for the 2004 killing of labor leader Chea Vichea, were freed hours later.


The incident underscored Cambodia's failure to act on its reform promises made at previous donor meetings, rights groups said.


"The meeting has become an empty annual ritual, with the government making and breaking promises every year," said Brad Adams, Asia director of the New York-based group Human Rights Watch.


"There will be more promises made this year but without serious donor pressure they, too, will be broken," he added.


- AFP /ls


 


 


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