PhnomPenhPost-June 23, 2024
A new report from the Lowy Institute has revealed that international partners have sharply reduced their development support to Cambodia, even though the country’s economy remains fragile and below pre-pandemic levels. The annual “Southeast Asia Aid Map’s 2024 Key Finding Report” shows that total official development finance to Cambodia fell by 30 per cent in 2022, dropping to $2.3 billion, in line with a broader regional trend for Southeast Asia. The reduction in aid to Cambodia is part of a larger pattern affecting the region. China, which provided over a third of Cambodia’s development finance from 2015 to 2022, saw its support plummet to its lowest point in 2022, with little sign of recovery. The decline in Chinese funding is significant given that China has historically been a major development partner for Cambodia, funding a mix of grants and non-concessional loans primarily focused on the transport and storage sector, as well as health. “The decline in official development finance to Cambodia is concerning,” said Alexandre Dayant, Southeast Asia Aid Map project lead at the Lowy Institute. “The Southeast Asia Aid Map shows the ongoing importance of official development finance to Cambodia and the region, particularly its role in funding infrastructure, health, education and poverty reduction initiatives,” he added, during the June 13 launch of the report, held at the Raffles Hotel Le Royal in Phnom Penh. In contrast to China’s reduced role, regional powers like India, Japan, and Korea have increased their support, suggesting a shift in Cambodia’s development partnerships. The Map encompasses more than 120,000 projects, by 107 development partners, totaling $255 billion, across 11 countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam. Read more at: https://www.phnompenhpost.com/business/international-aid-decline-raises-concerns-for-cambodia-s-economic-stability-
