A Change of Guard

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Friday 15 January 2010

The Dead Aid: does foreign financial aid really work?

Dear Khmerization

This is Peter from California. I recently changed my name from Rocky to Peter. I once contacted you before to publish an article about “who is Khom” a while ago. I hope you still remember me. Now I want to ask you for a favor to publish me another article “The Dead Aid: Does Foreign Financial Aid is Really Work?”
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The Dead Aid: does foreign financial aid really work?

I am not really sure yet, but let me lay it out straight on the paper. I feel that foreign financial aid to most of underdeveloped country is just like a heroin drug that makes the underdeveloped countries become addicted. I am not saying to all countries. In my conclusion, the financial aid is not an effective way to help the poor country; in contrast, it is just a waste both in time and resources, even though it will be considered as a good-will by donors. If you want to join and share your ideas, then you welcome to joint me.

Does foreign financial aid really work? As a Cambodian citizen, I consider Cambodia as my mother country. I have heard that this country donates, this organization gives $$ millions and that country gave $$$ millions every year. Sometimes, the aid reached to a billion of dollars a year, just like China a month ago. What a great amount of money? As a case in point, this is only just a small country like Cambodia. How about the other countries? How many countries like Cambodia in the world? What would be the final amount of money if we actually add those money together? For Cambodia, among the donors countries, China , at the moment, is the largest donor to Cambodia. Honestly, a part of my mind really wants to appreciate those countries that are helping Cambodia whether by financial or other form of picture of humanitarian help; however, the other part of me keeps asking: does it really work?

The fund or aid usually come in package, some have conditional obligation attached and some do not. Such as China tends to offer a free-obligation aid to Cambodian government but the western countries tend to put some specific conditions before they can release the money. In addition, the world body institutions, such IMF and World Bank, also offer some kind of conditional aids to the Cambodian government also, and most of the funds are using in humanitarian purpose such as health care and infrastructure; even though, some aid use for political purpose in form of appreciation.

Unfortunately, those money do not seem to work as it supposed to be. Instead, almost 50% of the aid fund have been misappropriated, in other word disappeared, according to the daily news paper, you can Google it. Maybe the term "Corruption" is better fit than "disappearing". And of course we all know that there is no such a perfect society in the world that is corruption free. But maximize the effect of the fund is what all donors hope for.

To me personally, I tend to call current Cambodian government economic policy as "Beggar" policy, because it seems like every where their official cabinet go and do their official jobs, it does not matter domestically or internationally, they always finish with a begging policy. Such as this project and there projects. As recently, Cambodia government had asked for cancellation of the old debt from the United States. So how can a nation-state put its national reputation and live on other nations' hand? where is their honor as a sovereign state as it claimed. This is really shameful. But please don't misjudge the general Cambodian. As tourist visit Cambodia especially the Angkor area. Every single tourist encounter beggars at least once in their whole trip if not all the time. This poor Cambodian kids and beggars are the victims of the current government policy, the "beggar" economic policy. But I pledge to all tourists, if you counter them please don't hate them but instead show some sympathy to them; even though, if you can not give them some money, but just only your good will heart of "poor you" in your mind should be enough. This is how the foreign financial fund program was created internationally, and that is why, regardless to the current Cambodian government action, policy, and corruption, they still get financial fund from the foreign countries around the world. If you might think that I am implying that the government just want to keep those poor people around in order to get some more fund, actually it is not what I mean, but maybe in reality it is one of those reasons too. You make your own judgment.

The point is the government should take responsibility for the poor. The pictures of disability, homeless, widow, thick face, and robbery are all the real face of the government. The people are just mirror that reflect the true government's policy and their incapable policy.

So why I claim that those foreign financial aid is not really work? because those money is just like an addict drug that they got it for free without doing nothing. So whenever it run out, they are going to beg some more regardless how they use them, whether for the people or for their own personal interest. Remember what happened between Thailand and Cambodia couple month ago about the loan to build the national road 68 along the Thai and Cambodian border. It was really hurt when we were turned down regardless of any reason. Yeah, I know there was some political and nationalism reasons get involved. However, there is national pride get involve with the issue. So it does not matter how much amount of money they receive, whether billions or trillion of dollars, as long as there is no reliable economic policy exist, Cambodia will be the beggar for the rest of its national live; and we don't want to be like that. Therefore, I think instead of wasting time to go out and beg some people money, they should concentrate on their own feet, find resolution, and create a reliable national economic plan for the sake of Cambodia, Cambodian citizens, and maybe for the Cambodian ancestors, the Angkorian people. So whoever read my blog from the start until now, it does not matter you understand what I talk above or not but if you understand the follow sentence that I am going to say right now then you fully understand what I mean.

"For the readers, regardless what nationality you are, you tell me what do you see when you go to visit Angkor Wat temple in Cambodia and you see a group of beggar kids come to beg you some money with their broken English, French, Japanese, Chinese,... in front of Angkor Wat temple which is well-known to the world as the world greatest religious monument in the world? please tell me or you tell your self quietly if you don't want to talk out loud.

Peter Na

4 comments:

My Community Networking said...

There are many forms of finacial aid in Cambodia, and not all of it in form of hard cash in one instance to the RGC coffer but rather as pay as it goes - disperse in accordance to the % of road constructed. I.e. if the financial aid for road construction would normally in care of an organization such as World or Asian Development Bank.

Anonymous said...

The aid, such as road construction, are good because the donors have control over it. But in the past it can still be embezzled. A few years ago, about 8 millions dollars went missing. It was later found out that Sok An had corruptly used it to purchase a few Chinese motorbikes and the rest of the money went to his and his conies' pockets.

The government have to use state money to repay the World Bank at that time.

My Community Networking said...

A few years ago, about 8 millions dollars went missing. It was later found out that Sok An had corruptly used it to purchase a few Chinese motorbikes and the rest of the money went to his and his conies' pockets.

This is to do with army demobilising, which was temporarily suspended by ADB.

Anonymous said...

The money was an aid from World Bank or ADB I'm not sure. Yes, it was for army demobilization but Sok An used the money to buy motorbikes for the demobilized soldiers or for his bodyguards or something. The point is, Sok An used state money to repay the WB or ADB before they will release the new funds.