Cambodia Receives US$1 Billion of Aid for 2009

Posted on 6 December 2008

The Mirror, Vol. 12, No. 589

“Phnom Penh: In spite of the global financial crisis, donor countries and communities promised on 5 December 2008 to grant more than US$951.5 million to Cambodia for the development of Cambodia in 2009, and recognized the work achieved by the government so far. However, the strengthening of good governance and the elimination of corruption are conditions set for the government to act effectively. The promise to provide this unexpectedly colossal aid was made at the end of a two-day meeting of donor countries and communities with the Cambodian government on Friday.

“China, the European Union, and Japan are big donor of Cambodia. Among the US$951.5 million, China grants US$256.7 million, the European Union grants US$214 million, and Japan grants US$112.3 million. Therefore, China is the most noticeable country that grants the most aid to Cambodia for 2009. The promise to provide US$951.5 million is not including aid promised by the United States, because the USA wait until its new government is formed.

“Last year Cambodia received nearly US$690 million. Therefore, the determination of donors to provide aid to Cambodia increased remarkably. It should be noted that between 1992 and 2007, Cambodia was granted US$1,892 million to rebuild the country after years of war, in order to encourage development.

“The Minister of Economy and Finance, Mr. Keat Chhon, said after the aid meeting that the US$951.5 million does not include aid which is not yet decided, because of the situation of some countries, like Belgium and the United States, but they promised to decide in the near future. Therefore the total aid is estimated to be up to US$1 billion for 2009.

“He went on to say that in the period of three more years, Cambodia might receive US$1 billion per year, which is sufficient to develop the country. He considered that this is an achievement based on the strong leadership by Samdech Akkak Moha Senapadei Dekchor Hun Sen in managing the reforms, making Cambodia to be like a train moving on its right track.

“A Chinese Embassy official, whose country is the biggest donor country for Cambodia in 2009, presented the determination of China to continue to help Cambodia. The Second Secretary of the Chinese Embassy in Cambodia, Mr. Qian Hai, told Rasmei Kampuchea, ‘Cambodia is China’s good friend. Therefore, we are pleased to help Cambodia towards proper development, and the citizens become richer.

“As for the French Ambassador to Cambodia, Mr. Jean-François Desmazières, who is also the representative of the European Union, said that in the period of three years from 2009 to 2011, the European Union expects to provide US$595 million for the development of Cambodia. He added that the European development partners would like to underline the necessity to encourage high economic development in order to support poor people, which include direct foreign investment in Cambodia as the major basis for development in this country. The quality and sustainability of direct foreign investment have a close relation with the legal system, with transparency and good governance. The European partners would like to express again their determination to help the government in all these sectors.

“The Japanese Ambassador to Cambodia, Mr. Shinohara Katsuhiro [篠原勝弘], said that Japan is delighted to see the new achievements of the Cambodia government in its efforts to continually develop the economy. He continued to say that we would like to express our support for the development of the economy and for poverty alleviation. Japan expects to grant US$112.29 million per year from now to 2011.

“At the same time of granting such enormous aid, donors also demanded the Cambodian government to strengthen good governance and to eliminate corruption, in order to guarantee that the Cambodian people receive real advantages from that aid.

“The Asian Development Bank decided to provide US$20 million for the good governance project in Cambodia, in order to promote the participation of citizens for development and good governance, and the response of the government to meet their requirements. In an announcement on 5 December 2008, the World Bank said that good governance is recognized as fundamental for sustainable development. As for corruption, it is recognized as a big obstacle against the capability and efficiency of the government, and it affects especially poor people. The growing demand of citizens for good governance becomes a key measure for the improvement of transparency and responsibility of public work, and is a part of the strategies of governance and of fighting corruption of the World Bank.

“The four-year project for good governance is a part of the effort of the World Bank to help deal with governance problems in Cambodia. Although this country achieved an admirable development of its economy during these latest decades, governance is still a major obstacle to broad development and increased poverty alleviation. Corruption, poor responsibility of public institutions, and the weakness of monitoring institutions, and of other mechanisms that directly affect the daily lives of citizens. These factors block foreign investment and the creation of employment, obstruct the requirements of income for the government, and also contribute to make more than one third of the Cambodian people to be poor.

“This creative project will promote good governance in all priority reform sectors of Cambodia by strengthening different institutions, by partnership support, and by sharing of experiences. These can be achieved by helping encourage measures of ‘the demand sector’ which assists in strengthening the capability of the citizens, of civil society, and of other non government bodies, to join with the government and to make the government show responsibility. These measures promote also the government’s capability to be better in responding to the citizens.

“The World Bank Country Manager in Cambodia, Mr. Fan Qimiao [樊启淼] said, ‘This project is a part of the World Bank’s responsibility of broad involvement for governance reforms in Cambodia. The World Bank provided leadership to support governance reforms previously for public institutions. Now, it is a good time to join with other relevant bodies, like the Royal Government, private institutions, civil society, donors, the National Assembly, the Senate, and the media, to better articulate the demand for good governance.’

“Different initiatives of the Royal Government and of civil society will be supported by aid from this project, that will seek the promotion of governance in four priority reform sectors – the private sector development, the management of natural resources, the management of public finance and decentralization, and citizens’ partnership for good governance.

“This project will support four state institutions that will implement the project to demand good governance, and it shows determination for the promotion of good governance.

“The total budget for this four-year project is US$25.28 million, where US$3.62 million will be granted by the Australian Agency for International Development – AusAID - and the rest will be provided to the Cambodian government by the International Development Association (of the World Bank that provides funds to low income countries).”

Rasmei Kampuchea, Vol.16, #4761, 6.12.2008