Thursday, July 19, 2007

WB aid grant: Is it really to reduce poverty or fatten the rich government officials?

World Bank Gives $15 Million Aid Grant

Heng Reaksmey, VOA Khmer
Original report from Phnom Penh
18 July 2007

The World Bank has promised $15 million in poverty reduction and development grants that will focus on good governance.

"Firstly, we foresee higher rates of growth and poverty reduction through an improved investment climate, higher agricultural productivity and more effective public service delivery," World Bank Vice President for the East Asia and Pacific Jim Adams said in a statement. "Secondly, a reform dialogue with Government that's focused on governance and results, and thirdly, greater alignment of development partner policies and financial support."

Finance Minister Keat Chhon said in a statement the country's poverty reduction strategies had led to "substantial" improvements in Cambodia's economy.

Cambodia's economy has seen rapid growth rates in recent years, while fewer now live below the poverty line, the World Bank said.

Other economists, however, have cautioned that increased growth rates don't always translate into prosperity for Cambodia's poor. The higher economic growth rate, in reality, has meant a widening gap between the rich and poor, they warn.

1 comment:

Anonymous said...

The Cambodian economy will grow even more if the income gap between the rich and poor is closing. If the poor can have more money to buy, they then generate higher demand for goods and services. With goods and services is in demand, everyone else in the country (not import more) has to produce more to meet up with demand; for which will induce economic growth. It sounds simple but will take years to achieve. Cambodian government should start implement this policy now.