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Cambodia
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Situation and Cooperation
After the end of the civil war, Cambodian society had to start again from zero in almost every area of life. Its govvernment institutions had been smashed, its infrastructure was in ruins and almost the entire intellectual elite of the country had been killed or driven into exile. Its people were impoverished and uneducated as a result of decades of conflict. To this day, Cambodia is one of the countries most severely affected by land mines and unexploded ordnance, which cause the death or injury of some 250 people every year. Against this backdrop, its achievements to date are all the more remarkable. This clean slate has given Cambodia the chance to move towards national reconciliation and establish democratic structures in a process involving civil society.
Since 1993, Cambodia has been a constitutional monarchy with a democratic multi-party system. The government pursues a liberal economic policy and is successfully implementing financial and economic policies geared to macro-economic stabilisation. On the other hand, in other socio-political areas it is displaying increasingly authoritarian tendencies. The ruling Cambodian People's Party (CPP) actively obstructs the work of politicians critical of the government and uses legislative, administrative and judicial powers to put pressure on its political opponents. State institutions in the country remain weak, and the country lacks a stable legal and economic framework. Hence the country is still far from having achieved international democratic standards.
Corruption is widespread and, by tradition, tends to be accepted by society. In the 2010 Corruption Perceptions Index of Transparency International, a non-governmental organisation, Cambodia ranked 154th out of 178 countries. There are also clear shortcomings in the field of environmental protection. Natural resources are exploited without regard to the damage being wrought to the environment, which is sometimes drastic. Cambodian ecosystems are especially threatened by illegal deforestation of tropical forests and overfishing of the Mekong and Tonle Sap rivers. Lack of sanitation and solid waste disposal, and power production based on inefficient diesel generators are some of the other major problems faced by the country.
Economic prospects
Cambodia has a young population: one third of the 15 million or so Cambodians are under the age of 15. Even now, very high levels of unemployment and underemployment are key problems for Cambodia's economic development, and these trends are set to worsen.
Cambodia is heavily dependent on agriculture. For most people, agriculture provides the only means of earning any money: more than 80 per cent of the population live and work on the land. In most cases, this means subsistence farming. The productivity and importance of the agricultural sector are declining, however, and now account for only one third of gross domestic product, while the service sector's share of economic output has risen to 45 per cent. Tourism has grown in importance in recent years and further growth is likely. In 2010, 2.5 million tourists visited the country, two thirds of them from Asia.
Cambodia's regional integration has moved forward as a result of accession to international organisations such as the Association of Southeast Asian Nations (ASEAN, 1998) and the World Trade Organization (WTO, 2004), ending the country's economic isolation. The entry into force of the ASEAN-China Free Trade Area (ACFTA) in 2010, and the expansion of the EU Everything But Arms (EBA) initiative, have created new export opportunities for Cambodia. These, though, are also fraught with new obstacles. This is down to the fact that apart from textiles and tourism, which drive economic growth, Cambodian industry is largely uncompetitive. It is somewhat surprising to find that this agrarian country actually imports agricultural products.
After the USA and Singapore, Germany is the most important export market for Cambodian products. In 2009 more than 7.5 per cent of the country's exports were destined for Germany
Poverty reduction and the Millennium Development Goals
Widespread poverty is the most pressing problem in Cambodia. It hampers all other efforts to achieve the Millennium Development Goals (MDG). According to the United Nations Development Programme (UNDP), the progress achieved in areas such as school enrolment and the reduction of child mortality is offset by significant shortcomings in other areas. In the Human Development Index (HDI 2011) Cambodia is ranked only 139th of 187 countries, making it one of the least developed countries in Asia.
Since 1994 the proportion of people affected by income poverty has fallen by one per cent annually. Nevertheless, 5.6 million Cambodians still fall into the 'extremely poor' category. The gap between urban and rural regions in Cambodia is particularly wide: some 80 per cent of the country's poor live in rural areas. The health system is currently being developed; the education system too requires further improvement. Illiteracy runs at 22 per cent; levels among women and in rural regions are even higher. The infant mortality rate of 88 for every 1,000 live births is the second highest in the whole of Asia, after Afghanistan. Only about 60 per cent of the population have guaranteed access to safe drinking water.
In the fight against HIV and AIDS, on the other hand, progress has been made. Until recently, Cambodia had the highest infection rate in Asia – in the meantime, however, moves to stem the spread of new infections appear to be taking effect. Progress has been made too in the fight against malaria and tuberculosis. UNDP also commends the country's efforts to reduce gender-based discrimination, for example in education, in income distribution and in the political participation of women.
The Government of Cambodia is putting a great deal of effort into reducing poverty. Its current Rectangular Strategy II and the National Strategic Development Plan (NSDP), which was drafted with the collaboration of civil society, aim for sustainable economic growth as a basis for poverty reduction. Promotion of employment, gender equality and social justice are elements of this strategy, which has good governance at its heart. All bilateral and multilateral donors have pledged their active support for the strategy and the implementation plan and are aligning their pledges to the priorities of the Cambodian government.
Priority areas of cooperation
Diplomatic relations between Cambodia and the Federal Republic of Germany were suspended between 1969 and 1992. During this period, and again in 1997 and 1998, no development cooperation was undertaken due to the high level of political instability affecting Cambodia. From 1969 to 1975, however, and from 1979 until German reunification, Cambodia maintained diplomatic relations with the German Democratic Republic.
Cooperation between Cambodia and Germany currently focuses on the following priority areas:
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Rural development (land reform and regional economic development)
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Health sector development (quality assurance for health services and the establishment of a social health insurance scheme).
'Democracy, civil society, public administration and good governance' is a cross-cutting theme in the work of the German government in Cambodia, which means that these issues are addressed in all ongoing programmes. A few programmes are also specifically designed to improve public administration and strengthen democracy.
At the government negotiations in October 2009, Germany pledged continued financial support of 34 million euros to Cambodia for the two-year period 2009/2010. In 2010, a further 2.6 million euros were made available. The next government negotiations are scheduled for December 2011.
Special issue – The Extraordinary Chambers in the Courts of Cambodia (ECCC)
It very important for Cambodia's further development that the country should deal with the atrocities committed by the Khmer Rouge regime. The BMZ therefore supports the ECCC, which is composed of both international and Cambodian judges. In 2010 the first conviction was brought against a Khmer Rouge cadre, Kaing Guek Eav, former commander of the notorious Tuol Sleng prison, who was sentenced to 35 years imprisonment. Four other Khmer Rouge political leaders have been charged with, inter alia, crimes against humanity, war crimes and genocide. Their trial opened in June 2011.
According to the ECCC's overview of voluntary contributions to the national and international components of the ECCC, Germany is the third largest contributor after Japan and Australia. If spending on associated projects, such as victim support and the social dialogue process, is included, Germany would probably rank second. The German government, through the BMZ and the Federal Foreign Office, have provided approximately 8.6 million euros to date. In addition, the BMZ supports the ECCC in the form of the long-term secondment of a legal adviser to the judicial chambers of the court. These contributions are designed to help the country come to terms with the genocide and to establish an effective legal system and an appropriate legal culture.
Rural development
As most people live in the countryside, where there is a high level of poverty, Cambodian-German development cooperation focuses on rural areas. In February 2011, the new joint strategy paper for rural development was adopted by the two sides. The declared overarching goal is to improve the lives of the rural population, and especially women. Contributions to achieving this goal are being made by initiatives to strengthen the private sector and create jobs and alternative income-generation opportunities in rural areas. The launch of a microcredit scheme and the provision of regional services for small and medium-sized enterprises (SMEs) are intended to establish a sound basis for poverty reduction.
In addition, since 1995 work has been ongoing within the scope of Financial Cooperation to repair the road network in rural areas and build new roads. The project is helping to safeguard the livelihood of many people in structurally weak regions and has led to tangible progress, such as higher school enrolment rates and better access to health centres.
Germany is also working to improve electricity supplies in rural areas. Cambodia does not have a national electricity grid, and only 17 per cent of households have access to electricity. High electricity tariffs are holding back industry and the population. Germany is promoting the establishment of an efficient and affordable supply. A pilot programme to promote renewable energies has also been agreed for the province of Siem Reap.
Within the framework of Technical Cooperation, Germany is supporting the restructuring of land tenure, working in close consultation with other international donors. Under the brutal Khmer Rouge regime (1975 to 1979) all the data in land and property registers were destroyed. Since 1992 Cambodians have once again been permitted to own land. In view of the population's huge dependence on agricultural yields, a new regime on land tenure and land use rights will need to be established and enforced, especially for the poor sections of the population.
Health sector development
During the Pol Pot regime, the health system collapsed entirely. Almost every hospital in Cambodia was destroyed. With external support, the Cambodian government has developed a strategy for the reform and development of the health sector. The aim is to provide adequate health care, especially for the poor. Under a social health protection programme, Germany is supporting efforts to set up a community-based sickness insurance scheme and to provide cheap and easy access to high-quality medical care for families with little spending power. German development cooperation works closely with international partners such as the World Health Organization (WHO).
Above all, the health situation of women and children must be improved. Cambodian-German development cooperation focuses on training health sector workers and introducing quality standards into the basic and advanced training of health professionals. Family planning programmes and maternal and child health programmes are also supported.
Another important area of activity is the control of infectious diseases such as malaria, tuberculosis and HIV/AIDS. HIV prevalence within the population rose sharply in the 1990s, peaking at 1.5 per cent. The figure has since fallen again to 0.7 per cent (as at: 2009).
Good governance: Promotion of democracy, civil society, and public administration
Good governance is one of the most important prerequisites for sustainable development and successful poverty reduction in Cambodia.
Cambodia's institutional and physical infrastructure was almost completely destroyed by wars and the brutal Khmer Rouge regime, and the country now faces a host of challenges, including democratisation, the protection of human rights, the promotion of civil society and the development of public administration, the justice system and the financial sector. Equally, it needs to combat the widespread corruption. Under the democratically legitimated government of Prime Minister Hun Sen, instrumentalisation of the legal system and the media, and hindrance of the parliamentary opposition and civil society groups, are still everyday political events.
Promoting democracy, civil society and public administration has been agreed between the Cambodian and German governments as the cross-cutting objective for Cambodian-German development cooperation.
The overall goal is to help with the reduction of poverty and the establishment of equitable social structures. To this end, efforts are directed towards anchoring the principles of democracy in Cambodian society and building capacity in civil society.
In consultation with other development partners working in Cambodia, Germany is concentrating on three areas of activity:
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Administrative reform and decentralisation
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Increasing transparency and accountability
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Promotion of human rights (especially women's rights) and civil society.
Information
See also
- Press release 02.11.2011: In response to severe flooding in Southeast Asia, BMZ increases emergency aid for Myanmar and Cambodia by 700,000 euros
- Press release 15.03.2010: German Development Minister Niebel's first visit to South East Asia has been major success
- Issues: Good Governance
- Issues: Health
- Issues: Rural development
External links
Publications
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Cambodia – A Country in the Process of Reconstruction
Leaflet
(PDF 342 KB) -
Human rights in practice: Fact sheets on a human rights-based approach in development cooperation
BMZ Information Brochure
(PDF 1.5 MB, accessible) -
Rural development and food security
BMZ Information Brochure
(PDF 2.1 MB, accessible) -
Promoting Health – Fighting HIV/AIDS
Topics 178
(PDF 815 KB, accessible) -
Decentralisation and local self-government
Leaflet
(PDF 372 KB, accessible)
