Claudio Bussolino espatriato in Cambogia

The end of an NGO era in Cambodia

PHNOM PENH - With an overwhelming electoral mandate, robust economy and a potential bounty of revenues Cambodian Prime Minister Hun Sen feels in a strong enough position to move against the non-governmental organizations (NGOs) which have been a perennial thorn in the strongman's side since he took power more than two decades ago.
In late September he called for the revival of a controversial law which would require the country's more than 2,000 associations and NGOs to complete a complex registration process and submit to stringent financial reporting requirements. The draft law is expected to be passed by Hun Sen’s Cambodia People's Party (CPP)-dominated National Assembly in the coming months.
"Cambodia has been heaven for NGOs for too long," he said in a speech broadcast on national radio on September 26, adding that he had given up hope of reading any positive reports written by international or local NGOs. "The NGOs are out of control ... they insult the government just to ensure their financial survival."
By enacting the law, Hun Sen could recalibrate the government's terms of engagement with the Western-led aid community, on which his government has heavily relied for decades to finance its budget. The move comes as private-led foreign investment has fueled the country's economic rise, led in the main by China and South Korea.
"Many of the services provided by NGOs today will one day either be privatized or the revenues of the government will grow to such an extent that the functions currently being done by NGOs will be taken over by the government," said Brett Sciaroni, chairman of Cambodia's International Business Association.
While Chinese aid is generally funneled through vast infrastructure projects - including hydropower and road projects - usually contracted to Chinese companies, Western nations' share of the average US$600 million in annual aid arrives through international aid agencies and NGOs. The process has been widely cast as a corrupt, inefficient gravy train, giving some traction to Hun Sen complaints.
"In the 1980s, there was a popular T-shirt satirizing US Army recruitment commercials with the slogan, 'Join the army. Travel to exotic, distant lands. Meet exciting, unusual people. And kill them'," Brad Adams, executive director for Human Rights Watch's Asia Program, was quoted saying to Action Aid in 2005. "In the new millennium, it could be rephrased, 'Join the aid community. Travel to exotic, distant lands. Meet exciting, unusual people. And make a killing'."
This is still the case in Cambodia, Adams told Asia Times Online. "You can start with all the foreign consultants making more than $10,000 per month, almost always tax free. This is a huge drain on the aid budget for Cambodia and in many cases the consultants produce nothing of value for the country."
Many analysts and expatriates agree that NGOs and their workers suffer from an image crisis among the Cambodian public, partly due to their comparatively high salaries and lifestyles, which are far adrift from the 35% of the population which lives on less than $0.50 a day.
Country directors for prominent international aid agencies typically receive a $250,000 annual package, which includes a spacious villa in the capital's upmarket "NGO-ville" area, a four-wheel-drive vehicle - usually emblazoned with the logo of their donor agency or charity - and fees paid for the capital's better international schools.
The aid watchdog Action Aid estimated in 2005 that the 700 or so international consultants working for NGOs in the country earned more than Cambodia's 160,000 civil servants put together. "In 1993, yes, 99% of foreign consultants were justified; now, 5% are justifiable. The others are embedding and enabling the mentality of dependency," Center of Social Development director Theary Seng said in June.
Arne Sahlen, a founding member of the Cambodia Support Group, a 25-year-old volunteer organization, echoes Hun Sen's comments that fundraising has overtaken the focus on the actual progress of several NGO projects. According to Sahlen, "vast" resources are being swallowed up on pursuing donors that could be invested on direct project needs. "The need to please donors has warped the focus to not necessarily what is best for the project but what may look best on an application," said Sahlen.
Others contend that several NGOs are actually impeding the development of a self-sustaining private sector, mainly through the alleged abuse of their not-for-profit status to pursue business opportunities. That status helps them avoid taxes and other unofficial costs that private businesses pay, giving non-profit an unfair competitive advantage in the market, they say. Cambodians now understand the word NGO, especially in the local context, to be a for-profit enterprise, said Sophal Ear, the author of The Political Economy of Cambodia, Aid and Governance. "It's all a business and this is just another way to avoid taxes," he said. "When not covered by donors, capital costs for NGOs have largely been privatized, through an extensive network of 'donations' to the ruling party by Oknhas [politically connected tycoons] politicians, and civil servants."
The NGO law, known formally as the Law on Organizations, was first written over a decade ago and aims to address such complaints. It would require NGOs to submit for government approval documents detailing their structure, goals, funding resources, properties and even logos. It also entails fines and imprisonment for any NGO which fails to submit annual reports to the Ministry of Economy and Finance.
Many fear the discretionary powers the law will give the government in monitoring and sanctioning NGOs - rather than vice versa. Hun Sen no doubt had his one good eye on the anticipated bounty of future oil and gas revenues when calling for the controversial law's revival. Chevron, the US energy giant, discovered oil off Cambodia southwestern coast in 2005 and analysts have predicted the find could generate anywhere between $200 million and $2 billion in annual revenues for the government when full-scale production begins in 2010.
The government is still awaiting a key assessment from Chevron of the supposed find, and both sides have more recently played down expectations. Nonetheless, NGOS are already warning of a possible "resource curse" similar to places like Nigeria, where corrupt governments pilfered and wasted earnings derived from energy exports.
"NGOs are trying to tell us how to use the oil money, but this is of no interest to us. What is important is how to make our resources profitable," Hun Sen said in a recent radio broadcast speech.

ATTUALITA' CAMBOGIANE