Cambodia Report

 

News and Views on Cambodia

 

 

Compiled by Farib Sos

 

Vol 4, No 1 June 2002

 

In this issue:-

1 Cambodia's government is hoping to turn Anlong Veng, site of the Khmer

Rouge's last stand, into a tourist attraction

 

2 Cambodia Creates Conditions to Attract Foreign Investments

 

3 Cambodia's friends should get tough

Jump-start stalled reforms

 

4 U.S. warns lagging reforms undermine Cambodia's development

 

5 Hun Sen says negotiations with UN on KR trial continue

 

6 Shortcomings in Cambodia's legal system dooms prospects for U.N.-backed

trial of Khmer Rouge: Amnesty

 

7 38 year old man gets prison term for buying sex abroad

 

8 Donors warn Cambodia: reform or risk losing aid

 

9 ADB's price of advice 'too high', says government

 

10 World Bank: Cambodia Has Made Progress But Some Reforms Still Needed

 

11 In Cambodia, the future hangs on a promise

 

13 Foreign donors pledge $635 million in aid to Cambodia

 

14 Cambodia says big aid pledged despite slow reforms

 

15 Donors pledge dlrs 635 million aid to Cambodia

 

16 ASIA-PACIFIC: Cambodia accused of failing to reform

 

17 Thanks To Donors For Their Commitment To Push For Good Governance And Promote Democracy In Cambodia

 

____________________________________________________________

 

 

 

Far Eastern Economic Review

June 13, 2002

Vol: 165 No: 23

Page 58

 

Cambodia's government is hoping to turn Anlong Veng, site of the Khmer

Rouge's last stand, into a tourist attraction

by BARRY WAIN

 

Through much of Cambodia, the most potent reminders of the Khmer Rouge are

the scattered, dry bones of the roughly 2 million people who died in the

killing fields. But in the northern district of Anlong Veng, where the

Maoist revolutionary movement made its last stand, the most visible legacy

of the Khmer Rouge is water.

 

Even in the dry season, when clouds of choking dust envelop the landscape,

the lake on the edge of Anlong Veng town stretches almost to the horizon,

blue, cool and serene. It is a product not of nature but of the strange

minds of Khmer Rouge leaders, who imagined they were engineers equal to the

god-kings who centuries earlier created the splendours of Angkor Wat.

 

 

The lake was created on the orders of the notorious Ta Mok, who in 1989

ordered his guerrilla troops to dam a small watercourse. Blocked, it

permanently flooded a forest and killed the trees. Today, their twisted

skeletons still jut from the lake's shallow waters. Although Ta Mok thought

the lake could be a source of irrigation, its only use now is as a breeding

ground for metre-long fish.

 

The lake is not the only souvenir of the Khmer Rouge in Anlong Veng, which

remained under the influence of the movement for far longer than any other

part of the country. Long after the regime fell in 1979, some of its

leading members held on in this northern outpost. Recently, Prime Minister

Hun Sen proposed transforming Anlong Veng into a "national region of

historical tourism," to attract both Cambodian and overseas visitors.

 

High on the visitors' itinerary, no doubt, will be the spot where the Khmer

Rouge's leader, Pol Pot, was cremated on a hastily built pyre of timber and

old car tyres in 1998. It can be reached only by motorbike over a rough and

winding track. There isn't much to see at the end of trail: just a pathetic

pile of cinders and ash. Nearby, Pol Pot's former house is just as

sad-fragments of brick walls standing above an empty bunker.

 

Far more impressive, and in better shape, is the home of the man who once

led Pol Pot's army, Ta Mok. Built on the shores of his artificial lake, the

two-storey house features floor-to- ceiling wall paintings of Angkor Wat

and other famous temples.

 

While the house alone might not be enough to draw curious visitors in

droves, it seems appropriate that Ta Mok can offer more than his former

commander-in-chief. Unlike the secretive Pol Pot, the one-legged Ta Mok was

a regular in town when it was a Khmer Rouge stronghold. Despite his

reputation he was popular with many: "Ta Mok took care of me," says

48-year-old San Reong, who lost his left leg fighting for the Khmer Rouge

against government forces.

 

Considering the state of their homes, it's fitting that Ta Mok had the

final say over Pol Pot. In 1997 he put his former leader on trial for

supposedly betraying the communist cause. The site of that show trial, in

which a peasant "jury" judged Pol Pot guilty, is another potential tourist

beacon.

 

Ta Mok was finally captured, still fighting, in 1999. Although he is often

referred to in the Western media as "the butcher," in Anlong Veng Ta Mok is

seen as something of a scapegoat. He is the only member of Pol Pot's inner

circle being detained, pending the establishment of a tribunal to hold the

Khmer Rouge accountable for its inexplicable cruelty.

 

That proposed tribunal is a symbol of how Cambodia is still struggling to

come to terms with the Khmer Rouge era. So can it be right for the

government to use memories of ~at era as a lure for tourists? Tourism

Minister Veng Sereyvuth believes it is. And, mindful perhaps of the Khmer

Rouge's own attempts to restart Cambodian history from Year Zero, he

declares: "We aren't trying to turn history upside down."

 

 

Xinhua, Thursday, June 13, 2002

 

Cambodia Creates Conditions to Attract Foreign Investments

 

PHNOM PENH, June 13 (Xinhuanet) -- The Cambodian government has made

great efforts to create conditions to attract more foreign investments

since foreign investors reduced money in the country in 1997.

 

Cambodia saw a steep reduction in foreign investments which dropped from

2.5 billion U.S. dollars in 1995 to 214 million dollars in 2001 after

the country was afflicted by the Asian financial crisis in 1997.

 

 

To solve the problem, the Royal government has created a political and

social environment of peace, tranquility and stability and amended the

Law on Investment by intensive consultations with the private sector and

the donor community.

 

The amended law has given attention to additional measures to facilitate

investors by streamlining procedures and paperwork in applying for

investment approval, imports and exports of goods and equipment within

the framework of the investment project.

 

Under the amendment, the government has given priorities to the

development of advanced science and technology, agriculture, electricity

generation, processing industry, telecommunication, education, tourism,

infrastructure and environment protections to encourage investors to

enlarge their investments in these sectors.

 

Some investment projects can also enjoy preferential treatments,

including fully or partly exemption from taxation, and exempting from

investors' profits for the first eight years of investment.

 

Furthermore, Cambodia can provide land to investors who invest in

agriculture and industry and they can rent land for up to 90 years.

 

 

 

Cambodia also welcomes investment in export-oriented industries and

producing goods that can be used as substitutes for imported goods.

Those of whose products 80 percent are for export can be rendered 100

percent exemption from taxation and cheap electricity power supply.

 

In the meantime, the government established an institution, which is

composed of national armed forces, military police, the police and local

authorities, to investigate, prohibit and crack down on smuggling and

evading taxes in order to ensure fair price competitiveness between

domestic products and imported goods.

 

Apart from these measures, Cambodia has increased its budget and

mobilized external assistance to rehabilitate or reconstruct

infrastructure, especially roads and bridges, ports and quays, airports

and electricity power stations so as to facilitate investments and

reduce costs of investment projects.

 

To create better investment conditions and business opportunities for

foreign investors, the government has formulated a long-term plan to set

up economic development and industry development zones, industry gardens

and "industry corridor."

 

Since June 2001, economic development zones have been set up on the

borders of Cambodia-Thailand, Cambodia-Vietnam and Cambodia-Laos, which

occupy an area equal to a third of the total Cambodian area.

 

In accordance with initiatives of investors and the government, seven

sectoral working groups under the leadership of the government have been

set up to help resolve contradictions and policy debates between the

government and investors.

 

The Cambodian government is now working hard in improvement of

investment environment to draw more investments in national economic

construction and realization of its strategy of poverty alleviation.

 

 

 

 

 

 

 

 

 

 

 

 

International Herald Tribune

Wednesday, June 19, 2002

 

Cambodia's friends should get tough

Jump-start stalled reforms

By Mike Jendrzejczyk (IHT)

 

(The writer, Washington director of Human Rights Watch's Asia Division,

contributed this comment to the International Herald Tribune.)

 

PHNOM PENH: Cambodia is struggling to lift itself out of poverty. Its

economy is being drained by a bloated military. Investment is deterred by a

weak legal system and a corrupt judiciary. The World Bank, in a carefully

understated analysis, says the country and its population of 12 million

face a "formidable array of development challenges."

 

When Cambodia's foreign aid donors meet in Phnom Penh from this Wednesday

to Friday, they should find a way to jump-start the reforms that are

urgently needed.

 

Poverty reduction and good governance will be the theme of the meeting of

what is known officially as the Cambodia Consultative Group. If it is

anything like past meetings, little will result but vague promises from the

Cambodian government in response to weak demands by the donors for reform.

 

On Feb. 3, Cambodia held its first local, commune-level elections in more

than 30 years. The pre-election period was marked by hundreds of complaints

of intimidation, harassment and death threats. From January 2001 to polling

day, 15 members of political parties running against the governing

Cambodian People's Party were murdered. There was widespread coercion of

voters, primarily through confiscation of voter registration cards and

pressure to take oaths of loyalty to the ruling party. It won control of

most commune councils.

 

Yet the donors and many Cambodians recognized this

experiment with grassroots democracy as an improvement over national

elections in 1993 and 1998 plagued by rampant political violence, in part a

legacy of years of civil war, Vietnamese occupation and fighting against

remnants of the Khmer Rouge regime.

 

The more important test will be the National Assembly elections scheduled

for July next year. The donors should develop a set of minimal benchmarks

for electoral reform, and condition any aid or tech-nical assistance for

the polls on the government's strict adherence.

 

 

There must be a comprehensive reorganization of the National Election

Committee, the body charged with supervising the election process, to make

it truly impartial. A good first step was the public hearing held recently

by the National Assembly on amendments to the electoral law. The election

committee is due to start work in September.

 

The security of all candidates and their supporters must be guaranteed, and

all parties should be given full and equal access to the broadcast media.

Procedures for the committee to investigate and penalize electoral abuses

should be strengthened. Violations committed in campaigning for the

February elections should be prosecuted and punished.

 

Donors should also take steps to put teeth into well-intentioned but

largely ineffectual efforts to promote good governance. As the World Bank

has pointed out, sustainable development cannot take place without a

credible legal and judicial system, an end to corruption and civil service

reform.

 

The Cambodian Human Rights Action Committee, a coalition of 18 Cambodian

nongovernment organizations, is calling on the donors to take much more

stringent action to monitor the government's commitments to strengthen the

rule of law.

 

Promises by Prime Minister Hun Sen and his cabinet have yet to bring about

improvements needed in the criminal procedure code and the penal code.

Nongovernmental organizations are urging the donors to press for a

comprehensive judicial reform plan and greater transparency in the

operation of the legal system. Also on the agenda for the donors' meeting

is Cambodia's $42 million Demobilization and Reintegration Project,' a plan

aimed at downsizing the military, disarming soldiers (who are notorious for

abusing civilians with impunity) and cutting the defense budget. But the

project, funded partly by the World Bank and Japan, is based on wildly

divergent estimates of the size of the armed forces, allegations that

thousands of "ghost soldiers" who don't exist are collecting compensation

packages, and other charges of corruption and incompetence. The World Bank

and the donors should cancel the project, or revamp it from top to bottom,

with assistance from nongovernmental organizations and scrutiny from

outside auditors.

 

The Cambodian government has signed and ratified international human rights

treaties. It should be praised for being the first Southeast Asian country

to ratify the Rome Statute for the International Criminal Court. But donors

should not remain silent about Cambodia's recent decision to close its

borders and deport hundreds of asylum seekers from Vietnam, contrary to its

obligations under international refugee law.

 

Cambodia is facing donor fatigue amid competing demands for aid to

Afghanistan and Africa. What it needs most is a transfusion of political

will as well as funding to tackle deep-seated problems created by years of

inertia and conflict.

 

 

Associated Press, Wednesday, June 19, 2002

 

U.S. warns lagging reforms undermine Cambodia's development

By Ker Munthit, Associated Press Writer

 

PHNOM PENH - As foreign donors gathered in Cambodia to discuss aid for

the poverty-stricken country Wednesday, a U.S. government agency warned

its development was being undermined by a failure to stem corruption and

strengthen the judiciary.

 

The warning in a report by the General Accounting Office, the

investigative arm of Congress, joins a chorus of domestic and

international criticism of the sluggish pace of much-needed reforms.

 

Cambodia's Finance Minister Keat Chhon told donors at informal talks

Wednesday ahead of the three-day meeting, the government would be

"relentless in pursuing reform in all walks of life, including the

judiciary."

 

Prime Minister Hun Sen's government will ask for dlrs 1.457 billion in

assistance for the next three years. Averaging dlrs 486 million

annually, the request works out to less than the dlrs 560 million annual

grant requested last year.

 

The GAO report said progress had been made in only three of seven

sectors marked for improvement by government and aid donors: public

finance, military downsizing and land management.

 

Areas lagging included the tackling of corruption, legal and judicial

reform, restructuring public administration and forestry management,

said the GAO report, dated June 13.

 

The report warned that lack of progress could endanger reforms already

underway and the "larger objectives of achieving economic and social

development."

 

The government has not introduced a law to fight corruption despite

considering the problem for seven years, the report said.

 

 

On Tuesday, about 2,000 poor Cambodians demanded proper use of aid money

in a demonstration led by opposition leader Sam Rainsy. The protesters

urged donors to ensure the aid benefited the poor, not corrupt

officials.

 

Poverty is widespread in Cambodia with up to 36 percent of its 12

million population living on less than dlr 1 per day. About half of

national budget comes from foreign aid.

 

Major donors such as the World Bank, the International Monetary Fund,

the Asian Development Bank, Japan, and France have already given more

than dlrs 3.6 billion in development assistance over the past decade,

according to government statistics.

 

The United States has contributed more than dlrs 200 million since 1993

to strengthen democracy, improve health care and education, and address

land mine problems, the GAO report said.

 

Chhon, the minister of finance, said the government is optimistic it

will secure the aid being requested at this week's meeting.

 

"But more importantly we will have to make more efforts in the legal and

judicial reform. We are building the momentum for it to accelerate," he

said.

 

 

Kyodo, Thursday, June 20, 2002

 

Hun Sen says negotiations with UN on KR trial continue

 

Prime Minister Hun Sen said Thursday that negotiations with the United

Nations are continuing in an effort to resume talks on a tribunal to try

former Khmer Rouge leaders.

 

"High-level negotiations are going on behind the scenes and have been

constructive," Hun Sen told an international forum on aiding Cambodia.

 

A senior government official involved in the process told Kyodo News

that Japan is playing a leading role in mediating the two sides.

 

The process hit a snag in February when the U.N. pulled out of the talks

that began in 1997 with the Cambodian government on setting up the

tribunal, saying the trial as planned by Cambodia would not be fair.

 

The tribunal is intended to try former Khmer Rouge leaders responsible

for the deaths of at least 1.7 million Cambodians in the late 1970s.

 

Three senior Khmer Rouge leaders -- Ieng Sary, Khieu Samphan and Nuon

Chea -- are living freely in Cambodia.

 

Only two senior Khmer Rouge figures are now in custody -- military

commander Ta Mok and Kaing Khek Ieu, better known as Duch, who reputedly

ran a Khmer Rouge torture center in Phnom Penh.

 

Associated Press, Wednesday, June19, 2002

 

Shortcomings in Cambodia's legal system dooms prospects for U.N.-backed

trial of Khmer Rouge: Amnesty

 

PHNOM PENH - Amnesty International on Wednesday blamed shortcomings in

Cambodia's judicial system for dooming talks between Cambodia and the

United Nations ( news - web sites) on setting up a tribunal to judge

surviving Khmer Rouge ( news - web sites) leaders for genocide.

 

The London-based human rights group said it believed the main reason the

United Nations announced in February it was pulling out of talks on

helping the Cambodia government to hold a genocide tribunal was that

Cambodia's judiciary "would not guarantee the independence, impartiality

and objectivity required by the U.N."

 

"The shortcomings of the judicial system have an impact not only on the

ability to deliver justice today," Amnesty said in a report. "They also

prevent the delivery of justice for the crimes of the past."

 

The 16-page report condemned Cambodia's judiciary as international aid

donors and top government officials opened a three-day meeting Wednesday

in the Cambodian capital. Millions of dollars in assistance and reform

plans will be discussed.

 

Cambodia is still rebuilding from the 1975-79 rule of the communist

Khmer Rouge, who emptied cities, abolished currency, disrobed monks and

forced virtually everyone to work on agricultural collectives. The

regime is blamed for the unnecessary deaths of 1.7 million Cambodians

due to disease, starvation, overwork and execution.

 

The Khmer Rouge's top leader, Pol Pot, died in 1998 but other leading

figures live freely in Cambodia. No one has appeared before a court to

answer for the atrocities committed in the 1970s, although two

defendants have been in jail for more than three years awaiting trial.

 

 

 

During years of talks toward establishing a U.N.-assisted Cambodian

tribunal to judge the Khmer Rouge, U.N. and Cambodian negotiators have

acknowledged shortcomings in Cambodia's legal system but said

international assistance would overcome them.

 

Kyodo, Thursday, June 20, 2002

 

38 year old man gets prison term for buying sex abroad

 

The Osaka District Court on Thursday sentenced a 38-year-old Japanese

man to two years and six months in prison for paying two underage girls

for sex in Cambodia in 2000.

 

According to the ruling, Takeshi Ozawa paid a 13-year-old Vietnamese

girl $60 to have sex with him in a hotel in Phnom Penh in August 2000

and paid a 14-year-old Vietnamese girl $550 to have regular sex with him

for a week in a hotel in the city in December 2000, even though he knew

both girls were under 18.

 

Ozawa's arrest in December 2001 was the first under a 1999 law that

makes it illegal to pay for sex with a minor abroad.

 

"The crimes were extremely malicious and the prison sentence without

suspension is inevitable," Judge Miyako Fujiwara said.

 

The judge said Ozawa visited Cambodia a number of times to buy sex from

underage girls, adding, "His committals are addictive."

 

Local police in Phnom Penh arrested Ozawa on suspicion of child abuse

and other allegations. He was freed on bail during a preliminary trial

and returned to Japan last June before the Cambodian court reached a

verdict, according to the Osaka police.

 

The Osaka police said they began investigating the case after being

notified about it by the National Police Agency, and then arrested Ozawa

in December.

 

The law banning people from buying sex from those aged under 18, which

took effect Nov. 1, 1999, allows Japanese police to arrest suspects even

if the illegal acts have taken place abroad.

 

If found guilty, offenders face a maximum three years in prison.

 

 

 

 

Reuters, Friday, June 21, 2002

 

Donors warn Cambodia: reform or risk losing aid

By Ek Madra

 

PHNOM PENH (Reuters) - Foreign donors expected to offer Cambodia some

$500 million in aid for the next year warned on Friday they would not be

so generous in future unless there was progress in fighting graft and

protecting the environment.

 

Donors meeting in Phnom Penh for the annual Consultative Group meeting

are set to announce their aid package later on Friday. But the money

comes with conditions attached, and many donors say promised reform has

failed to materialise.

 

"Demonstrable limits on the Royal Cambodian government's capacity and

perhaps willingness to make progress reinforce the need for

prioritisation. A pattern of increased donor support should not be taken

as a given," Britain said in a statement.

 

It said the government had achieved "overall disappointing progress

against the action points agreed at the 2001 Consultative Group meeting,

with only four of 10 points done and at best modest progress in the

areas judged partially done".

 

Donors want an improvement in the pace of reform, particularly in

fighting corruption, judicial and legal reform, human rights, fiscal

development, demobilisation of the military and environmental issues

such as logging.

 

The United States said future aid would also depend on whether general

elections next year were free and fair.

 

"Support for free and fair national elections will be a priority for

U.S. assistance in the coming year," the U.S. delegation said in a

statement.

 

"If the conduct of the 2003 national elections provides a safe

environment for all participants to compete... we can anticipate a basic

reexamination of remaining restrictions on U.S. assistance to Cambodia."

 

 

CORRUPTION A PROBLEM

 

World Bank country director Ian Porter, co-chair of the meeting, said

the past year had seen significant progress by the government.

 

"But progress with respect to anti-corruption and legal and judicial

reform has been disappointing," he said.

 

"It is critical that the government's overall strategies and policy

pronouncements are translated into effective implementation and real

results."

 

Donors give Cambodia about $500 million each year, or more than half the

country's annual state budget. Cambodia received $560 million in aid

last year and $548 million in 2000, and is now seeking $484 million a

year over the next three years.

 

Cambodia has been discussing for much of the last decade a possible

trial of former leaders of the notorious Khmer Rouge regime which

oversaw the deaths of some 1.7 million people during the late 1970s. But

years of talks between the United Nations and Cambodia over setting up a

tribunal broke down this year.

 

Prime Minister Hun Sen told the meeting on Thursday he was committed to

justice for the victims of the Khmer Rouge "killing fields" but that a

successful trial would require considerable financial assistance from

overseas.

 

There have been questions, however, about Hun Sen's real commitment to a

Khmer Rouge trial. Hun Sen, himself a former low-level member of the

Khmer Rouge, has been accused of foot-dragging to prevent what could be

an embarrassment for many senior Cambodian figures, including top

members of his party.

 

Sam Rainsy, a former finance minister who heads the opposition Sam

Rainsy party, said aid money had been wasted.

 

"In spite of billions of dollars that have been lavishly poured into

this country over the last nine years, the Cambodian people continue to

live in poverty," he said in a statement.

 

"I hope the donors will not be fooled again."

 

 

 

 

 

 

 

 

Phnom Penh Post [Free Online Edition], June 21 - July 4, 2002

 

ADB's price of advice 'too high', says government

By Caroline Green

 

The government has delayed signing a loan deal with the Asian

Development Bank for an environmental management project, complaining

that proposed consultant salaries are too high.

 

The Post has obtained the Memorandum of Understanding for the $20.5

million Tonle Sap Environmental Management Project. It budgeted for $8.3

million to be spent on consultants, and $1.1 million for raising

government salaries. International consultants would receive $12,000 per

month and an extra $80 per day for expenses, all paid for out of the ADB

loan.

 

Director of Fisheries Nao Thouk confirmed that the government had asked

the ADB to review salary costs.

 

"The government complained that the salaries are very high," he said.

"The two sides will discuss the matter during the MoU signing ceremony.

I think this is too much [money] because we have to pay the loan back to

the ADB. They should keep the salaries as low as possible."

 

The MoU also drew strong criticism from NGOs and the opposition Sam

Rainsy Party, whose MP Son Chhay said ADB loans did not serve the

interests of the people and were not approved by parliament.

 

"This has happened many times and we want to vomit at it. It is

ridiculous when the average Cambodian only gets $200 a year," he said.

"What can we do? Some deal has been made outside the country and there

is no transparency and accountability."

 

Urooj Malik, country director of the ADB, said he was unable to comment

on the project as the bank was still in discussion with the government.

 

However a statement from the ADB showed that a typical project would see

around 5 percent of costs allotted to salaries. That is far less than

the 46 percent of total costs allocated to salaries in the environmental

management MoU.

 

Mak Sithirith, coordinator of the NGO Forum's Fisheries Action Coalition

Team, said wages for the project were unusually high and this was not an

effective allocation of money.

 

 

"Not much money will actually go to implementation," he said. "This

[project] will benefit mostly the foreign consultants and those working

for the ADB, but will have less benefit for local communities."

 

Nao Thouk said he expected the revised MoU would be signed in late June.

 

"I am happy with the [concept of the] project because it could help the

government increase preservation of the environment and the Tonle Sap

lake resource and fishing lots," he said.

 

However Sithirith questioned the need for an ADB loan. He said the

fisheries sector generated substantial income, and felt some could be

used to fund conservation projects in the Tonle Sap area if the

government managed it properly.

 

"It is unfair. I don't know how much the people will get from this yet

they will be burdened with paying it back," he said. "Cambodia will have

a big problem in paying so much money back."

 

The Tonle Sap project will focus on community capacity building and

natural resource management. It is composed of an $11.8 million loan

from the ADB's Special Resources Fund and a $3.9 million contribution

from the Cambodian government.

 

It also includes a $760,000 grant from the UNDP's Capacity 21 program

and a Global Environment Facility grant of $3.7 million. The project

will be implemented mainly through the Ministry of Agriculture, Forestry

and Fisheries.

 

VOA News, Friday, June 21, 2002

 

World Bank: Cambodia Has Made Progress But Some Reforms Still Needed

Ron Corben

Bangkok

 

Cambodia has received pledges of more than $600 million from

international donors for the coming year. But international donors are

again warning the Cambodian government that more needs to be done in

fighting graft and protecting the environment, to ensure assistance

continues.

 

The international aid pledges account for more than half the

government's total budget. The pledges came Friday at the end of an

annual meeting of the Cambodia Consultative Group.

 

 

Cambodian Commerce Minister Cham Prasidh said the $600 million are, in

his words, a reward for the government's efforts in earlier reforms.

Phnom Penh had asked for $484 million in aid this year. Cham Prasidh

acknowledged progress in some areas was slow. He blames that, not on a

lack of political will, but a lack of political expertise.

 

Cambodia, one of the world's poorest nations, has been able to establish

some political stability in recent years, after almost three decades of

bloodshed and internal civil strife. Only five years ago, Cambodian

tanks and gunfire were on the streets of Phnom Penh, in a struggle for

political control.

 

Since then, the government has made progress in political and social

stability. The World Bank, in a release Friday, welcomed progress in

some areas, but said gaps still remained in forestry protection and

civil service reforms.

 

The bank commends Cambodia for appointing an auditor-general and

undertaking other legal reforms, such as adoption of a land law.

 

Some donors, however, urge the government to set priorities on reforms,

and warn that increased aid support should not be taken for granted.

 

A U.S. diplomat in Cambodia said Washington pledged $45 million. That

includes $3 million from the Centers for Disease Control and $2.5

million to help remove land mines.

 

This year, donors are expected to look for improvements in the pace of

reform, especially in fighting corruption, improving the legal system,

increasing protection for human rights, demobilizing the military and

protecting the environment.

 

 

International Herald Tribune

Friday, June 21, 2002

 

In Cambodia, the future hangs on a promise

By Michael Richardson (IHT)

 

TROPANG VENG, Cambodia: After Phan Vibol was conscripted into the army in

1982 when Cambodia was still occupied by Vietnam, he carried his mortar on

many patrols through the forest and rice fields in search of the Khmer

Rouge.

 

 

 

In another area of Kampot province, Khieu Teng was fighting with the Khmer

Rouge against the Vietnamese-backed army that Phan Vibol had joined. When

he was fighting, his only thought was of life and death, Khieu Teng said

the other day in his village at Mon Soh, 150 kilometers (95 miles)

southwest of Phnom Penh. He is happy now that there is no more war and

bloodshed.

 

Cambodia's dark era of civil conflict, Khmer Rouge tyranny and foreign

occupation finally ended in 1998 with the surrender of the last Khmer Rouge

commanders. Since then Phan Vibol and Khieu Teng have developed a common

interest, although they have never met. They are among 16,500 soldiers

officially demobilized from the country's army. It was bloated by the

addition of thousands of troops as peace was restored and former rival

armed factions, including the Khmer Rouge, were integrated into a single

military structure.

 

The coalition government of Prime Minister Hun Sen, with assistance from

the World Bank, says it has checked and listed all members of the armed

forces in 1999. As a result, a little more than 15,500 "irregular soldiers"

were reportedly removed from the payrolls, along with approximately 9,000

widows. The "irregulars" were evidently nonexistent or "ghost" troops who

were registered so that corrupt officers could pocket their pay.

 

That left about 131,000 members of the armed forces. In an effort to ensure

that less money was spent on the military and more on education, public

health, rural development and poverty alleviation, Cambodia's foreign aid

donors agreed to contribute to the demobilization scheme.

 

The donors are meeting in Phnom Penh this week. In recent years, they have

funded about half the Cambodian government's budget, at a cost of around

$500 million per year.

 

The $42 million allocated to the demobilization program should be enough to

ensure that the equivalent of $1,200 is paid to each of the 31,500 soldiers

leaving the military. The intention is to help them and their families

integrate into civilian life.

 

Whether those demobilized are getting full value is difficult to judge

because they are being paid mainly in kind, not cash. Phan Vibol and Khieu

Teng, both of whom are farmers, said that they had each received as

promised a cash severance payment in local currency equivalent to $240, or

one year's military pay, plus several sacks of rice and a resettlement kit

that included cooking utensils, farm tools, clothing and mosquito nets.

 

 

 

But they and many other demobilized soldiers in Cambodia complain that they

have not received some of the most valuable items they were promised. Phan

Vibol, who left the military in May 2000, has received the motorcycle he

needs for transport but not the cow he needs for plowing the fields.

 

Khieu Teng, who was discharged last October, has received neither the

promised motorbike nor the sewing machine that he wants for his 16-year-old

daughter.

 

Why the delay? The former soldiers say that they don't know. The

government, which has committed $7.2 million to the demobilization program,

blames the World Bank for delaying the disbursement of its $18.4 million

concessional credit to the scheme. The bank, meanwhile, has told other

donors that it wants to be certain that proper procurement procedures are

in place to minimize the potential for corruption and make sure that

soldiers returning to civilian life get the best possible deal.

 

Some former soldiers, like Sau Saveoun, have received skills training in

addition to their severance pay, rice ration and resettlement kit. Sau

Saveoun now has a bicycle repair business in Thom Thomei village in Kampot

that he says earns him nearly four times his former military pay. But he

still hasn't received the water pump he was promised when he was discharged

in May 2000. "I haven't asked why because I'm scared," he said. "I just

take what I can get."

 

 

Note: File contains three related articles. CT

 

Kyodo, Friday, June 21, 2002

 

Foreign donors pledge $635 million in aid to Cambodia

By Puy Kea

 

Foreign donors from 22 nations and seven international organizations on

Friday pledged an aid package to Cambodia amounting to $635 million,

some $75 million more than the amount pledged last year.

 

The pledge was announced by Cambodian Finance Minister Keat Chhon after

the three-day Consultative Group meeting, held in Phnom Penh for the

first time since 1996.

 

Keat Chhon said Cambodia had requested some $480 million at the start of

the meeting, but the amount pledged exceeded the request due to

additional projects in the Greater Mekong Sub-region and good

commitments undertaken by Cambodia.

 

 

With the aid pledge, donors emphasized continued support will depend on

accelerated and substantive progress in the government's policy reforms,

including urgent efforts to fight corruption and reform the country's

legal and judicial reform.

 

On Tuesday, opposition leader Sam Rainsy led a rally in Phnom Penh

calling on the donors to better scrutinize the government's commitment

to ending corruption, deforestation, impunity, prostitution,

lawlessness, illiteracy and malnutrition.

 

At the meeting, donors also spelled out four additional areas: forestry,

civil service reform, procurement, and budget allocations to social

sectors.

 

The donors, meanwhile, emphasized the importance of strengthening the

framework for free and fair general elections scheduled for July 27 next

year, including fair access by opposition parties to electronic media

during their electoral campaigns.

 

Japan, the biggest donor to Cambodia since the early 1990s, pledged $14

billion yen (about $112 million) for this fiscal year, compared to last

year's $118 million.

 

Most of the Japanese aid is earmarked for improving Cambodia's

infrastructure, removing land mines, reducing troop levels, and

enhancing health and education.

 

At the meeting, Japan also urged Cambodia to further promote reform in

key issues including judicial reform and good governance, said Japanese

Ambassador to Cambodia Gotaro Ogawa, who headed the Japanese delegation.

 

 

Since 1996, Cambodia has received foreign aid amounting to some $2.5

billion, an average of $500 million per year.

 

The government still depends on foreign aid to finance about half of its

annual budget.

 

The donors, meanwhile, voiced regret over deadlocked plans to set up a

tribunal to try former Khmer Rouge leaders responsible for the deaths of

at least 1.7 million Cambodians in the late 1970s.

 

The process hit a snag in February when the United Nations pulled out of

talks begun in 1997 with the Cambodian government on setting up the

tribunal, saying the trial as planned by Cambodia would not be fair.

 

Three senior Khmer Rouge leaders -- Ieng Sary, Khieu Samphan and Nuon

Chea -- are living freely in Cambodia.

 

Cambodia is one of the world's poorest nations with a per capita income

of less than one dollar a day.

 

Some 36% of the country's population of 12 million lives under the

poverty line and 80% are farmers.

 

***

Reuters, Friday, June 21, 2002

 

Cambodia says big aid pledged despite slow reforms

By Ek Madra

 

PHNOM PENH (Reuters) - Cambodia said on Friday foreign donors had

pledged more than the $484 million in aid it had requested for the next

year despite grumbling about slow progress in fighting corruption and

protecting the environment.

 

The exact figure pledged was not immediately available, but Finance

Minister Keat Chhon said Cambodia had been offered a total of $635

million in aid and loans. He did not give a breakdown.

 

More details of the package were due to be announced later.

 

The annual aid is equivalent to about half the government's annual

budget and keeps services in the impoverished country going despite a

moribund economy. Cambodia received $560 million in aid last year and

$548 million in 2000.

 

"We received more than what we expected from the donor donations,"

Commerce Minister Cham Prasidh told Reuters. "This is a reward for the

efforts that the government has made so far to implement its

commitments."

 

International donors have been meeting in Phnom Penh this week for the

annual Consultative Group meeting to decide how much to give Cambodia.

The money comes with conditions attached, and many donors say promised

reform has failed to materialise.

 

But Cham Prasidh said Cambodia was doing its best:

 

"They are slow reforms but it is not for lack of political will but for

lack of political expertise. When we can solve this problem we can move

it faster," he said.

 

Donors warned the government on Friday that they would not be so

generous with aid in future unless there was progress in fighting graft

and protecting the environment.

 

"DISAPPOINTING PROGRESS"

 

"Demonstrable limits on the Royal Cambodian government's capacity and

perhaps willingness to make progress reinforce the need for

prioritisation. A pattern of increased donor support should not be taken

as a given," Britain said in a statement.

 

It said the government had achieved "overall disappointing progress

against the action points agreed at the 2001 Consultative Group meeting,

with only four of 10 points done and at best modest progress in the

areas judged partially done".

 

Donors want an improvement in the pace of reform, particularly in

fighting corruption, judicial and legal reform, human rights, fiscal

development, demobilisation of the military and environmental issues

such as logging.

 

The United States said future aid would also depend on whether general

elections next year were free and fair.

 

"Support for free and fair national elections will be a priority for

U.S. assistance in the coming year," the U.S. delegation said in a

statement.

 

"If the conduct of the 2003 national elections provides a safe

environment for all participants to compete...we can anticipate a basic

reexamination of remaining restrictions on U.S. assistance to Cambodia."

 

 

Cambodia has been discussing for years a possible trial of former

leaders of the notorious 1975-79 Khmer Rouge regime which oversaw the

deaths of some 1.7 million people. But talks between the United Nations

and Cambodia over setting up a tribunal broke down this year.

 

Prime Minister Hun Sen told the meeting on Thursday he was committed to

justice for the victims of the Khmer Rouge "killing fields" but that a

successful trial would require considerable financial assistance from

overseas.

 

 

 

There have been questions, however, about Hun Sen's real commitment to a

Khmer Rouge trial. Hun Sen, himself a former low-level member of the

Khmer Rouge, has been accused of foot-dragging to prevent what could be

an embarrassment for many senior Cambodian figures, including top

members of his party.

 

***

Associated Press, Friday, June 21, 2002

 

Donors pledge dlrs 635 million aid to Cambodia

By Ker Munthit, Associated Press Writer

 

PHNOM PENH - International aid donors on Friday pledged dlrs 635 million

in assistance to Cambodia for the next year, exceeding the optimistic

expectations of Cambodian officials.

 

But the donors also demanded that the government take steps toward

fighting corruption and instituting legal and judicial reforms, said Ian

Porter, the country representative for the World Bank, which is one of

the donors.

 

The pledges are tied to "sustained and accelerated reforms," he told a

news conference to announce the aid from around 20 nations and

institutions, who held a three-day meeting here with Cambodian

officials.

 

Porter said some progress in reforms has been made in this

poverty-stricken nation, which is still recovering slowly from nearly 30

years of war and civil strife. But he said last year's progress was

inadequate.

 

"If significant progress is not made in the coming year, then I think

... donor support for Cambodia will not remain at the kind of level it

is at now," he added.

 

Finance Minister Keat Chhon said his government is strongly committed to

"vigorously" pursuing reducing poverty, combatting corruption and

accelerating legal and judicial reforms.

 

"If we reform, we will survive and prosper, if not, we will die," he

told reporters.

 

Cambodia's sole opposition Sam Rainsy Party issued a statement

applauding the pledges, along with the pressure on the government to

accelerate reforms.

 

"Beyond diplomatic language, we see their will to encourage crucial

reforms, the implementation of which is conditional to the disbursement

and the continuation of aid," it said.

 

Prime Minister Hun Sen's government had asked for dlrs 1.457 billion for

the next three years - or dlrs 486 million annually.

 

The total for the coming year exceeds last year's annual pledges by

about 13 percent.

 

In press statements issued Friday, Japan - which gives more money

directly to the Cambodian government than any other donor - pledged 14

billion yen (dlrs 113.6 million) for the next year, and the Netherlands

dlrs 5.5 million.

 

The Dutch pledge covered cooperation in such areas as strengthening good

governance, reforming the military and improving human rights.

 

French Ambassador Andre Jean Libourel told reporters his government

expected to contribute about dlrs 35 million for next year, about the

same as last year.

 

The European Commission said in a statement it has earmarked 68.7

million euros (dlrs 66.3 million) in assistance over the next three

years.

 

Financial Times

Thursday, Jun2 20, 2002

 

ASIA-PACIFIC: Cambodia accused of failing to reform

By William Barnes in Bangkok

 

The investigative arm of the US Congress said at the start of the annual

donors meeting in Cambodia that the failure to curb corruption and

strengthen a pliable judiciary was damaging the country's efforts to lift

itself out of poverty.

 

The Government Accounting Office report joins a chorus of foreign and local

criticism of prime minister Hun Sen's government, which is accused of a

slackening interest in key reforms.

 

Phnom Penh has asked for $1.457bn over the next three years, or $486m

annually - down from the $560m asked for last year. Developed countries

provide more than half the state budget every year of a country still

recovering from decades of often disastrous dictatorship.

 

Keat Chhon, the finance minister, told donors that the government would be

"relentless" in the pursuit of wide-ranging reforms but that this "took

time".

 

The GAO conceded that a bloated military had been trimmed, that land

management had improved and that public finances were under better control,

but it said that problems remained with corruption generally, including the

judiciary, the reform of local government and logging control. The GAO

report said the government had failed to produce an anti-corruption law

after seven years' deliberation.

 

The donors have little choice but to stump up most of what Cambodia asked

for, said a diplomat, because "a third of the people live in poverty. The

consequences of even trying to send a signal would not be pleasant". The

money was likely, however, to come wrapped in sharper criticism and the

warning that future aid could be diverted to such as Afghanistan, he added.

 

Amnesty International yesterday blamed the "lamentable" state of the

judicial system for the United Nations' decision in February to withdraw

its participation in a genocide tribunal for the surviving leaders of the

Khmer Rouge.

 

"The shortcomings of the judicial system have an impact not only on the

ability to deliver justice today, they also prevent the delivery of justice

for the crimes of the past," said an Amnesty report.

 

 

Phnom Penh, June 21, 2002

 

THANKS TO DONORS FOR THEIR COMMITMENT TO PUSH FOR GOOD GOVERNANCE AND

PROMOTE DEMOCRACY IN

CAMBODIA

 

We, Members of Parliament from the Sam Rainsy Party, thank donor

countries and international financial institutions for the

significant amount of aid they pledged to support Cambodia’s development

at the Consultative Group meeting that ended today.

 

In particular, we appreciate their firm commitment to push for good

governance and promote democracy in Cambodia, in line with the

Resolutions of the Congress of the Poor held in Phnom Penh on June 18.

Beyond their diplomatic language, we see their will to

encourage crucial reforms, the implementation of which is conditional to

the disbursement and the continuation of aid.

 

The priorities in the reform process include:

1- The fight against corruption with the adoption of a long-awaited

anti-corruption law.

2- A clearer and more effective forest policy in order to stop illegal

logging and protect the ecological system.

3- The implementation of a land reform in order to stop land grabbing

and improve agricultural production and productivity.

4- A reform of the judiciary in order to make it less subject to

corruption and political interference.

5- A reform of the civil service with the objective of restoring the

rule of law, delivering decent public services, and providing civil

servant with livable salaries.

6- Concrete decentralization measures in order to effectively empower

the recently elected local leaders, involve the local

communities in decision making process, and effectively address the

needs of the people at the grassroots level.

7- Better allocation and more effective use of public funds, especially

with regard to demobilization and procurement regulations and

procedures.

8- Serious preparations for the 2003 parliamentary elections since

democracy, good governance and development go hand in hand.

 

Donors realize that poverty reduction, which they state as the main goal

of their assistance, does not mean anything without the

above priorities being seriously included and implemented in any

government programs and policies that are expected to yield

results.

 

Donors are entitled to see results before committing to providing

further assistance. Therefore, donors will be more demanding and

less complacent with the Hun Sen regime. They realize that Hun Sen, who

holds the Cambodian people hostage, has been

blackmailing them in order to obtain money to keep his bankrupt regime

afloat. Hun Sen has claimed that the Cambodian people,

whose fate is in his rude and incompetent hands, would suffer more

because of worsening poverty if donors refused to subsidize the

current Phnom Penh regime. But Hun Sen has been fooling donors because,

in spite of billions of dollars that have been lavishly

poured into this country since 1993, the Cambodian people continue to

live in dire poverty and without justice.

 

Therefore, donors have the moral obligation to help ensure that the

parliamentary election next year will reflect the will of the

Cambodian people, who – understandably – want to put an end to the Hun

Sen regime in order to build a new, modern, democratic

and prosperous Cambodia.