Sunday, August 05, 2007

World Bank head urges Cambodia to tackle corruption

Sunday, August 5, 2007
The Associated Press

PHNOM PENH, Cambodia: World Bank President Robert Zoellick said Sunday Cambodia needs to make a greater effort to tackle rampant corruption if it wants the continued support of international donors.

"As many of you know, Cambodia draws about US$690 million (€504 million) of assistance a year from international donors, which is no small sum in a world of competitive aid," Zoellick said at a press conference ending his visit to Cambodia Sunday.

"And to be able to continue and strengthen that support, it will need to build a positive record and counter the challenge of corruption," he said.

Cambodia has been blessed by a double-digit economic growth for the past three years but it remains plagued by chronic corruption.

It was ranked 151 among 163 countries in Transparency International's 2006 "corruption perceptions index," where the number one country is the least corrupt. Transparency International is an international non-governmental agency.

Some 35 percent of its 14 million people live with less than 50 US cents (36 euro cents) a day.

The World Bank is among donors who in June pledged US$689 million (€502 million) in aid for Cambodia, where recent discovery of offshore oil has raised both hope for the country's future and fear that it could make corruption even worse.

Fraud and corruption in the procurement process forced the World Bank in June 2006 to freeze US$7.6 million (€5.5 million) in funding for several projects in Cambodia.

Prime Minister Hun Sen angrily denied the allegations and said there was no proof of wrongdoing.

Early this year, the bank lifted the suspensions on the projects after it had reached agreement with the government on frameworks for improving the project's implementation.

Zoellick said combating corruption also comes down to an issue of "fairness to the Cambodian people."

"For people who've suffered enormously, they need the share and the benefit of the growth and development," he said.

A government spokesman could not be immediately reached for comment.

Zoellick said he met with Hun Sen and other government officials behind the push of economic development.

He said he discussed with them recent economic achievements of the country and the challenges it is still facing in trying to move "to the next level of development."

He said revenue from recently discovered oil will be a fresh opportunity for Cambodia to advance its development and provide the basis for spreading rural electrification and eradicating poverty.

"This will also be a key question for Cambodia with natural resource development. Will it apply high standard whether it be the energy sector or the forestry sector?" he asked.

No comments: