Wednesday, 11 March 2009

Cambodia: Foreign aid continues during economic crisis

Global Voices Online
Tuesday, March 10th, 2009
by Chhunny Chhean

Reports of foreign aid to Cambodia continue despite the global economic crisis. CAAI News Media shares news that the United States will give Cambodia $21 million USD over four years in a program to alleviate poverty in rural parts of the country.

According to a story posted by Cambodian News, the U.S. provided a total of $5.6 million USD in aid in 2008.

On the issue of foreign aid, Socheata Vong posts an interview from the Phnom Penh Post with political commentator Lao Mong Hay where he says,

“…[F]oreign aid basically serves foreign policy. Look at the American government. So long as recipient countries pursue policies in conformity with American foreign policy, they will give aid.
Mr. Semoun and Hort Sroeu post about South Korean investment into Cambodia. Sroeu's blog states:

In 2007, Cambodia became the 6th biggest host of South Korean investment after China, the U.S., China’s Hong Kong region, Vietnam and Malaysia, [South Korean ambassador to Cambodia Shin Hyun-suk] said…Initially, South Korean investment was concentrated on the garment manufacturing sector, he said, adding that banking, agro-industry, manufacturing, real estate development and IT sectors are the dominating fields of South Korean investment in Cambodia now.

However, the country must deal with projected decreases in garment exports and tourism. As Khmer Young reports,

Cambodia's economy [is predicted] to shrink 0.5 percent this year, the International Monetary Fund said on Friday. That is a big turnaround from the 4.8 percent growth the IMF had forecast in November.

The International Monetary Fund statement is available here.

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