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CBJ 2006
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Search for information in the FY 2006 Congressional Budget Justification:

   

Cambodia

Budget Summary

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Please note: All linked documents are in PDF format

Objective SO Number FY 2004 FY 2005 FY 2006
HIV/AIDS & Family Health 442-009 30,360 28,700 27,400
Democracy and Human Rights 442-010 16,650 20,314 15,950
Improving Basic Education 442-011 2,000 6,000 1,250
Total (in thousands of dollars) 49,010 55,014 44,600

Excludes P.L. 480. See Program Annex.

The Development Challenge: Significant developments have taken place in Cambodia during the last 18 months, presenting unique opportunities as well as challenges. After a year of political stalemate, the country has inaugurated a new administration and a new monarch, signaling new prospects for stability. Many of the issues affecting Cambodians since the Paris Peace Agreement of 1991, however, remain unresolved. The impact of corruption within Cambodia permeates all aspects of daily life for citizens. Lack of good governance, unsatisfied social needs, and growing environmental threats are but a few hurdles the Royal Government of Cambodia will face in the coming years. The government lacks a separation of powers, with the executive branch dominating the legislature and the judiciary.

After a year of protracted negotiations following the 2003 National Election, Cambodia's political parties finally agreed to form a new government. Negotiations began with the National United Front for an Independent, Neutral, Peaceful, and Cooperative Cambodia (FUNCINPEC) joining the Sam Rainsy Party to form the Alliance of Democrats. Although the alliance lasted longer than originally suspected, the chance to have a three party government ended when FUNCINPEC rejoined its old coalition party, the Cambodian People's Party (CPP). The election and subsequent one year stalemate demonstrate that democracy in Cambodia remains nascent.

A few months later, the King announced his abdication due to poor health. His son Norodom Sihamoni, formerly the country's representative to the United Nations Educational, Scientific, and Cultural Organization (UNESCO), was confirmed and assumed leadership of the country.

Although there have been improvements in education, these recent political developments have had little impact on the country's largely unmet social needs. The government is not investing satisfactorily in health and education. While the estimated HIV prevalence rate in Cambodia has fallen by nearly one-third since 1997, the country still faces an epidemic that could potentially threaten its development. The World Health Organization estimates that over 100,000 people, including children, will develop AIDS by 2005. High infant mortality (estimated at 96 per 1,000 births) and maternal mortality (placed at around 5 per 1,000 births) reveal the poor state of public health provision in Cambodia.

More than half of Cambodia's 13 million people are under the age of 18. Ensuring that they receive adequate education that will prepare them to be productive citizens remains a major challenge. During the late 1990s, only 48% of those over 25 years of age had completed primary education. In 2004, UNESCO estimated adult total literacy at 69% and adult female literacy at 59%.

The forests of Cambodia are one of its most valuable resources. According to the United Nations Food and Agriculture Organization, the forest cover has declined from 73% to 58% of the total land area over the last 40 years. The World Bank reports 94% of the timber is cut illegally thus providing no revenue for the public good. The Government has attempted to regulate forest exploitation, with limited success.

U.S. interests in Cambodia include strengthening democracy; expanding regional cooperation and integration; promoting greater economic openness and lower trade barriers; implementing the Association of South East Asian Nations (ASEAN) Cooperation Plan, which seeks to strengthen U.S. relations with ASEAN members; and addressing terrorism through a combination of careful intelligence liaisons and targeted foreign assistance.

The USAID Program: USAID is requesting FY 2005 and FY 2006 resources to fund activities that aim at accomplishing three objectives that concentrate on supporting critical elements of the primary health care information and service delivery system, especially related to HIV/AIDS and mother and child health issues; promoting good governance, human rights, and equitable treatment for all citizens; and promoting improvements in the relevance, quality, and accessibility of basic education. USAID will use FY 2005 funds to expand ongoing programs in HIV/AIDS prevention and care; expand access to maternal, child, and reproductive health services; increase the participation of political parties, non-governmental organizations (NGOs), and the private sector in promoting human rights and documenting evidence of Khmer Rouge atrocities; and improve the quality of basic education.

In FY 2006, USAID expects to implement a new country strategy in Cambodia. The new strategy will build on the successes of current activities and take the changing challenges and opportunities into account. For example, with elections having taken place, the democracy and governance objective would shift its focus from political competition to good governance. Environmental stewardship and improved economic management will also be considered. The specific activities to be funded by FY 2005 and FY 2006 appropriations are described in more detail in the Program Data Sheets of the Congressional Budget Justification.

>Other Program Elements: In addition to the resources requested in the Program Data Sheets, USAID's Office of Foreign Disaster Assistance manages the Flood Forecasting and Early-Warning Systems in the Mekong River Basin. This project strengthens the Mekong River Commission's flood warnings by making them more responsive to the needs of at-risk populations.

USAID's Women in Development Office is supporting a grant to the International Justice Mission to combat human trafficking.

USAID's Center for Human Capacity Development is supporting two grants in Cambodia. Fisk University has partnered with the National Institute of Management in Phnom Penh to develop a Center for Entrepreneurship and Development at the National Institute of Management. Florida A&M has joined the Royal University of Phnom Penh to undertake environmental studies.

In partnership with California State University at Fullerton and Pannasastra University of Cambodia, the Partnership for Educating Leaders through Community Service Learning is establishing a Center for Community Service Learning at Pannasastra University. The focus of the partnership is to provide training that meets community needs, such as HIV/AIDS education, increase literacy, and promote education. Other health-related partnerships are funded through the Global Fund for HIV/AIDS, Tuberculosis, and Malaria.

Other Donors: The Consultative Group (CG), which brings together multilateral and bilateral donors, typically makes annual aid pledges in the $500 to $600 million range, although disbursed aid is often lower. The World Bank, Asian Development Bank, United Nations, and United Kingdom's Department for International Development are collaborating on a joint assistance strategy for Cambodia. Although USAID does not participate directly in this process, it intends to enhance donor coordination by using some of the preparatory work done by these organizations in the development of its own new country strategy.

Japan, Cambodia's largest bilateral aid donor, is active in almost every sector. The United Kingdom's activities involve health sector reform, HIV/AIDS, urban poverty reduction, teacher training, and environmental conservation capacity building. France is working on rural credit for agro-enterprises, higher education, rural water supply, public accounting support, tourism infrastructure support, and legal and judicial reform. Australia assists in agricultural extension services, policy development, and institutional capacity building.

Recent negotiations between China and Cambodia resulted in 25 bilateral agreements. The initiatives include feasibility studies for a hydropower plant and grant and loan agreements covering textile and cement plants, tourism, and highway construction. Although these agreements are relatively small in financial terms, they signify how China is using its newly won economic power to expand its presence and political influence among its southern neighbors. The USAID program helps ensure that the United States also remains fully engaged with Cambodia and other nations of Southeast Asia.

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Tue, 14 Jun 2005 16:03:52 -0500
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