Friday, March 03, 2006

Donors give Cambodia $601 million in aid for 2006

PHNOM PENH, March 3 (Reuters) - International donors agreed on Friday to give impoverished Cambodia just over $600 million in aid for 2006, more than last year, but they demanded action on judicial reforms and fighting corruption.

The increase reflected the "significant progress" made by Cambodia in reforming its economy, World Bank country coordinator Ian Porter told a news conference after the annual two-day meeting in Phnom Penh.

"But the government needs to accelerate its reform programmes, particularly in the areas I highlighted -- anti-corruption, legal and judicial reform and natural resource management," he said.

Finance Minister Keat Chhon said donor governments and institutions agreed to give the southeast Asian nation $601 million in grants and loans, up from $504 million in 2005.

The Cambodian government, which relies on foreign aid to cover half of its annual budget, had asked for $513 million.

"We succeeded, but we should not take this assistance for granted. I am optimistic we will improve in fighting corruption and natural resource reforms," Keat Chhon said.

Cambodian Prime Minister Hun Sen pledged to improve governance in a speech on Thursday to donors demanding action against rampant corruption and mismanagement.

Hun Sen, a former Khmer Rouge soldier who has led the impoverished Southeast Asian nation for 20 years, said that the National Assembly would soon pass an anti-corruption bill which has been talked about since the early 1990s.

Donors gave the government some credit for gains against poverty in the past year, thanks to a stronger economy on the back of agriculture, garment exports and tourism.

But graft continued to plague the country ranked 131 out of 158 countries -- below Albania and Sierra Leone -- on Transparency International's 2005 corruption index.

"I think the government would agree that the overarching issue is corruption which impedes the development of this country," U.S. Ambassador Joseph Mussomeli told Reuters.

"It's going to be a long battle."

Donors welcomed the improved political climate after Hun Sen patched up his differences with opposition rival Sam Rainsy, who returned from self-imposed exile in France last month.

However, some rights groups noted the reconciliation came after pressure from foreign donors led by the United States, which had accused Hun Sen of using the law to crush the opposition.

Hun Sen has denied his reconciliation with Sam Rainsy had anything to do with the donors meeting.

1 comment:

Anonymous said...

why not give the poors who have no place to live ..idiot..what's wrong with this donors,, you all go to hell for sure. b/c the give more money for the to make khmer poors more suffered...eeyore