Sample Business Paper on Foreign Aid in Cambodia

Foreign Aid in Cambodia

After decades of violence in Cambodia, the nation with the help of international organizations, finally gained stability but still experienced different challenges including civil wars, growing insurgencies, and religious conflicts. Additionally, the country still has a weak civil society and still depends on international aid. Considerably, the distribution of foreign aid in the country has experienced various challenges particularly due to the peace and war it encountered over the years. However, these effects are to the extremes with some being positive and others negative. As such, this research will assess some of the effects of both war and peace on international aid in the nation.

Effects of Peace and War

Peace has brought forth different advantages and disadvantages in the distribution of international aid in Cambodia. Since the peace agreement in 1991, the country has received numerous global support including direct aid, infrastructure funding, and development loans. This assistance boosted transportation of basic necessities including medical support, food, and educational facilities to rural Cambodia (Hokmeng & Moolio, 2015). For instance, between 2010 and 2014, the Chinese government funded 18 transport and storage projects in the country with one additional development catering for any social infrastructure construction. Additionally, organized distribution and planned development of communities were achieved that in turn enabled easy access to support centers (Hill & Menon, 2013). However, the peace in the country attracted different nongovernmental organizations that started their operation in the country and reduced the level of coordination among such entities. Equally, it resulted in the increase of corruption cases in the country with specific regions being prioritized than others.

The war in Cambodia has numerous negatives than positives in the distribution of international aid. Considerably, the country lacked proper infrastructure including roads and bridges that could facilitate proper distribution of aid (Hokmeng & Moolio, 2015). Moreover, human rights violations in the country including the targeting and arrest of human rights advocates such as Sia Phearun and Rong Chhun This limited the operation of international organizations including the UN in distributing any type of aid as some of its workers cited security reasons. However, the war helped in the identification of the areas that needed the urgent support of vulnerable and innocent civilians that had been affected by the war.

Role of Leaders

Cambodian leaders have been instrumental in advocating and maintaining peaceful coexistence among their citizens. Notably, they have engaged and established strategies that ensure that the country sticks to its development agenda and uniform development throughout the nation. For instance, the government has over the years supported NGOs that help in fighting human rights and restoration of the country’s image (Hill & Menon, 2013). Although several challenges still exist, most of these institutions including amnesty international, have successfully started their operations of providing civilians with the opportunity to settle and start a new life. Since the country has been experiencing different land dispute cases that eventually result to war between different communities, the government has identified more than 2000 youths to help in measuring and allocation of firms to farmers through the country (Roberts, 2016).

Considerably, the Cambodian leaders have increased their campaigns to urge developed countries such as the United States to withdraw their Peace Corps volunteers out of the country as it increases tension among its citizens. Notably, due to the many years of violence, the country’s authority’s site increased tension among its civilians due to the presence of the American troops. This not only helps in promoting the establishment of good corporation and friendship with other states but also helps the country to concentrate on its development agendas. Seemingly, it is expected to initiate self-healing among the country’s citizens.

Foreign Aid Impact on Poverty

The decades of civil war in Cambodia had left the country in total poverty with over 90% of the products in the nation being aid from other states. After its first democratic general election in 1993, Cambodia had over 35 official donors and numerous civil societies that offered to provide aid to the country. On average, it received over $5.5 billion from both NGO and other stable states. Some of the donors including China provide funds that are strictly aimed at poverty reduction through the development of different infrastructure in transport and energy sectors.

According to the World Bank report in 2016, the country’s poverty rate has been reducing steadily over the last decade and as at 2014, only 14% of the country’s population lived below the poverty line (World Bank, 2016). Effective utilization of the donor funds and establishing a stable market has seen different industries including tourism and garment export improving steadily. The rate of poverty in the country has since reduced from 47.8% in 2007 to 13.5% in 2014 (World Bank, 2016).

However, the country still faces different complications that limit their ability to increase their per capita income including an increase in the level of corruption, poor maternal health and lack of access to proper sanitation (Islam et al., 2016). As such, the extension of foreign aid to Cambodia has greatly helped in the reduction of poverty among its citizens and empowering to venture into different economic activities including farming and trading. Considerably the Cambodian government needs to enhance diversification, maintaining their macroeconomic stability and improving public service delivery to ensure effective response to its citizen’s needs.



Hill, H., & Menon, J. (2013). Cambodia: rapid growth with institutional constraints.

Hokmeng, H., & Moolio, P. (2015). The Impact of Foreign Aid on Economic Growth in Cambodia: A Co-integration Approach. KASBIT Journal of Management & Social Science8(1), 4-25.

Hokmeng, H., & Moolio, P. (2015). The Impact of Foreign Aid on Economic Growth in Cambodia: A Co-integration Approach. KASBIT Journal of Management & Social Science8(1).

Islam, A., Ouch, C., Smyth, R., & Wang, L. C. (2016). The long-term effects of civil conflicts on education, earnings, and fertility: Evidence from Cambodia. Journal of Comparative Economics44(3), 800-820.

Roberts, D. (2016). Political transition in Cambodia 1991-99: Power, elitism and democracy. Routledge.

World Bank. (2016). Poverty has fallen, yet many Cambodians are still at risk of slipping back into poverty, new report finds. Retrieved from