Working Papers   2

Aid Infusions, Aid Illusions: Bilateral and Multilateral Emergency and Development Assistance in Cambodia, 1992-1995

Author(s): JOHN MacAndrew

Published: 01-Jan-1996
Keyword: Development assistance, aid coordination, NGO involvement, Cambodia reconstruction, structural adjustment
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Abstract/Summary

This report analyzes bilateral and multilateral emergency and development assistance to Cambodia from 1992 to 1995, highlighting key trends and challenges. During this period, donors pledged nearly US$2.3 billion, with actual disbursements totaling about US$1.3 billion—72% from bilateral sources and 28% from multilateral institutions. Aid was unevenly distributed, heavily concentrated in Phnom Penh, and often bypassed government systems, limiting Cambodia’s absorptive capacity and undermining institutional development.

Aid types included technical assistance, investment projects, budgetary support, and emergency relief. While grants dominated, reliance on loans increased, raising concerns about long-term debt sustainability. Sectoral disbursements favored transport, humanitarian relief, and economic management, while rural development and basic services remained underfunded.

Coordination among donors was weak, with fragmented efforts and competing agendas. The paper emphasizes the need for a more Cambodian-driven, decentralized, and participatory approach to aid. NGOs played a vital role, especially in rural areas, but must strengthen their capacity for policy engagement and monitoring.

The report calls for long-term, sustainable development strategies focused on empowering vulnerable communities, rebuilding institutions, and aligning aid with national priorities. It urges donors to shift from short-term emergency responses to coherent, inclusive development cooperation.

DOI: https://doi.org/10.64202/wp.02.199701




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