Book Review: Ear, S. (2013). Aid Dependence in Cambodia: How Foreign Assistance Undermines Democracy.

Abstract

Book Review: Ear, S. (2013). Aid Dependence in Cambodia: How Foreign Assistance Undermines Democracy. New York, NY: Columbia University Press. ISBN: 978-0-231-16112-1. 208 pages.Based on the premise of the importance of national ownership for development, this book examines the relationship between Cambodia's aid dependence and its poor governance. Sophal Ear, assistant professor of National Security Affairs at the US Naval Postgraduate School, chooses Cambodia as a case study as it is one of the most aid-drenched countries in Southeast Asia. To achieve the aforementioned objective, the book is divided into four chapters, using field interviews, case studies, and document analyses as a source of information.Chapter 1 concisely highlights the connection between aid dependence and quality of governance. This chapter claims that the quality of governance depends upon the governance system followed in the country. It argues that foreign aid has had negative incentives for good governance, weakened tax collections, and undermined accountability since donors failed to improve the rule of law.Chapter 2 describes the recent economic growth in Cambodia and shows the ineffectiveness of foreign aid and government policies in three main economic sectors (garment, rice, and livestock). Ear points out that effective and sustainable economic growth depends upon good governance in as much as the government ensures the rule of law, democracy, and anti-corruption.Chapter 3 assesses the effectiveness of Official Development Assistance (ODA) and the effects of aid dependence based on the example of Highly Pathogenic Avian Influenza (HPAI). The chapter shows that the efforts and policy responses to prevent the disease were weak mainly because of the lack of good governance, fund management, and the weak coordination at the state level.Last but not least, Chapter 4 looks into indigenous human rights activism between 2005 and 2006 that drew on international media and international diplomatic ties to curtail the excesses of the state and the ruling Cambodian People's Party. Funding by the international community was particularly oriented towards local, national, and international NGOs working to liberalize Cambodian democracy. As a result of international pressure, some political prisoners were released; yet, the pressure was too weak to spur government reforms in the country.The central argument of Aid Dependence in Cambodia is that neither democracy introduced by the United Nation Transitional Authority in Cambodia (UNTAC) nor foreign aid flows led to economic development and a stabilization of the country. Therefore, the author suggests that Cambodia should cut foreign aid as soon as possible and instead strengthen domestic tax collection and enhance ownership for national development. Ear argues that Cambodia's main problems (e.g. poverty, corruption, and inequality) are global problems that can - particularly in postconflict societies - only be dealt with through international aid. However, Cambodia has received ODA for more than two decades with little impact on the socio-economic conditions of its people. The main reason for this ineffectiveness is high corruption and mismanagement of funding. The long-term aid dependence has made Cambodia a laboratory for donors' trial and error experiments (p. 10). Having this in mind, the author demands political will to change the culture of corruption.With regard to specific economic sectors, Ear finds that donors in Cambodia failed to invest in the energy sector and fight against informal payments in order to develop the rice, garment, and livestock sectors in the country. The garment industry as an important employment and income generation sector was successful mainly due to favorable external market conditions, the imposition of good labor practices by trading partners, and unified trade association. Lack of collaboration between rice-milling associations, poor access to credit, and high cost of energy and transportation limited the rice production in the country. …