Wednesday, June 20, 2007

CAMBODIA: Donors told to attach conditions to aid

20/06/2007
Radio Australia
Australian Broadcasting Corporation


International donors to Cambodia are being told to get tougher on the government as they deliberate on their annual aid contributions. The Phnom Penh government has failed to follow through on its own anti-corruption rhetoric, and its critics say the general population has little to show for the billions of dollars received in international aid over the past 10 years. Cambodia was ranked among the worst countries for government corruption in a report last year.

Presenter - Karon Snowdon Speaker - Soun Seyla, planning advisor, UN Development Program in Cambodia; Dr Chek Sotha, head of research, Centre for Social Development

SNOWDON: A World Bank report on Cambodia released this month says the country has made some good progress on poverty reduction since the 1991 Paris peace accord. It could however, be much better, given its high rate of economic growth during the past decade. The report noted with alarm the growing inequality between the rural poor and the urban rich. Soun Seyla, is a planning advisor with the UN's Development Program in Cambodia, and he points out the country's economic weaknesses.

SEYLA: The city, the urban areas, yes there's a lot of rich people, but if you compare economic vision and the income of the rural people and the urban people it's quite different. Most of the poorest are living at the rural area, so yeah, there's a lot to be done at the rural area in order to raise the living condition of those people living in rural areas.

SNOWDON: Stepping carefully around the word "corruption" the World Bank report concluded Cambodia has a long way to go on land reform and in public sector financial management. The bank is only one of almost two dozen aid donor countries and organisations meeting in Phnom Penh. Together over the past 15 years, they've poured about $US15 billion into Cambodia, half the national budget. Money not well spent according to the New York-based group, Human Rights Watch. The group's statement released to coincide with the donors meeting, says the government has made almost no progress on the rule of law or judicial independence, and accuses it of rampant corruption and human rights abuses. It's demanding the donors make it clear they won't accept the government's annual empty promises in return for aid. That demand is repeated in Cambodia itself, despite the government's record of stifling critics. A report by the Centre for Social Development published last December, found corruption had pervaded almost every sector of society.

SOTHA: If you are talking about the corruptions now, it cover up from the top until the bottom.

SNOWDON: Dr Check Sotha, is the Centre's head of research. She says Hun Sen's government must adopt the anti-corruption legislation it has before it as soon as possible. It's thought the clauses dealing with the disclosure of politicians assets and the independence of an anti-corruption agency are among the sticking points. Dr Check says those in power have little reason to change a system that has given them so much power and personal wealth and the donors group should exert some pressure.

SOTHA: I think the donor should put more pressure to the government and then follow up what the government is doing, to do monitoring, very careful what the government is do. Corruption and destroy the country you see and sometime the power people, they get a lot of money by the black market or some like that, so that is the problem and big issue for Cambodia, you know.

SNOWDON: Is it holding back Cambodia's economic development?

SOTHA: Yeah, I think so, because even investment, they cannot come to Cambodia for investment, because of corruption.

SNOWDON: Yet another report by Transparency International ranked Cambodia number 151 out of 163 nations in its corruption index last year. The UNDP's Soun Seyla, also says the donors group should be applying conditions to its aid package.

SEYLA: That is a must, that is a must condition, the bondings it must be tied up to some condition, via respect of human rights, via respect of free press or via anti-corruption law - must be drafted and approved as soon as possible. Yes, those are the condition that the donor must reconsider them and put on the table for discussion.

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