Hun Sen's latest concession land seizure "show" always work like a charm with aid donors

Jun 20, 2007
DPA

"Cambodia had taken pleasing steps to combat the problem, seizing five land concessions deemed illegal and suspending or disciplining more than 50 officials for corrupt practices in the past year" - Pius Fischer, German Ambassador to Cambodia

Phnom Penh - Despite heavy political pressure from human rights groups, donors significantly increased total aid pledges to Cambodia Wednesday to nearly 690 million dollars at an annual meeting in a move the government said recognized its ongoing efforts at reform.

Donors at the two-day Cambodia Development Cooperation Forum largely kept their pledges in line with previous years, granting 689.21 million dollars in grants and loans. The total included both direct government funding and indirect funding to non-government organizations, according to Finance Minister Keat Chhon.

The overall increase on the 601 million dollars pledged by donors in 2006 came despite demands from rights groups for donors to demand more for their money. They said widespread rights abuses and endemic corruption continue virtually unchecked in Cambodia.

It was bumped up by a contribution of 91 million dollars by China, which has previously refused to be involved with the meeting. Although it did not send a delegation, Chhon said it had made the pledge via official diplomatic channels. Japan remained the most generous donor, pledging 112 million dollars for 2007.

The German ambassador to Cambodia, Pius Fischer, said that although corruption remained a 'cancer of this society,' Cambodia had taken pleasing steps to combat the problem, seizing five land concessions deemed illegal and suspending or disciplining more than 50 officials for corrupt practices in the past year.

Germany, which is also the chair of the European Union (EU) this year, pledged 21 million dollars for 2007, although Fischer said total disbursment may actually be even higher. EU countries pledged a total of 170.2 million dollars for the year and nearly half a billion over three years.

No breakdown of the total into what constituted loans and what constituted grants was made available. Chhon said the total included direct funding for the government and indirect funding through non-government organisations.

Last week, the UN human rights envoy to Cambodia, Yash Ghai, delivered a stinging report in Geneva, and the government recently came under harsh criticism for banning a critical report on illegal logging by London-based Global Witness, but Fischer said donor funding was a complex process which 'should be interpreted more long term than short term,' and donors had seen overall progress as positive.

The forum meeting involved key donors to Cambodia, including the United States, Germany, Japan, South Korea, the Asian Development Bank, the European Commission, the International Monetary Fund, the United Nations Development Programme and the World Bank.

Government officials said the funds are primarily earmarked for the development of infrastructure, such as rural development and irrigation projects, as well as improving the fledgling health system, which remains in disarray after 30 years of civil war.

The World Bank estimates 70 per cent of Cambodians remained dependent on agriculture but the country also has one of the fastest rates of urbanization in the region. According to the IMF, its economy also grew 10.4 per cent last year and was expected to continue to grow at a rate of about 9 per cent in 2007.

Eight foreigners were briefly detained but later released during the meeting after a protest urging the release of two men who rights groups said have been falsely jailed for 20 years for the murder of unionist Chea Vichea.