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The Role of Foreign Aid

Author: NaLa（NGOUN CHANNARA）
Tutor: LiuDeBin；ZhangJingQuan
School: Jilin University
Course: International political
Keywords: Foreign Aid China’s Aid Japan’s Aid realism liberalism
CLC: D822.3
Type: Master's thesis
Year: 2011
Downloads: 135
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Abstract

Cambodia has been on the way to a peaceful and developed country after a long bitter history. It’s been about three decades that Cambodia has been trying to develop itself to the international arena. Without supports from donors, it would be difficult for Cambodia to survive. Aid is given by various countries and programs supported by the United Nations. Amongst those donors, China and Japan are seen playing their active roles as good partners in aiding to develop Cambodia for almost every field. Bilateral relations between Cambodia-China/Japan keep growing since the start of their relationship.China is seen having longer relations with Cambodia then Japan. During the Cold War, China had engaged with Cambodia by supporting military assistance to fight with Western bloc. The historical relations have continued until the present time. Achievements of infrastructures, government buildings and other assistance are provided by Chinese government. But Chinese foreign aid to Cambodia is criticized by some observers and writers.Japan started to give aid to Cambodia as Official Development Assistance (ODA) since Civil War in Cambodia was completely finished in 1993. Japan is seen the leading donor among other international donors. In the last few years, China besides giving a package of loan to Cambodian government, she has provided assistance to build infrastructures as Japan’s assistance.In this context, Cambodia receives a good outcome from the two countries. Infrastructures, which were destroyed, have been renovated. Achievements have been flourished every year. But the two actors do not play the same roles. China is noticed to help Cambodia related to political manner. Japan helps Cambodia in long -run perspectives. However, the ways they provide aid to Cambodia are different. Most of Japanese aid to Cambodia is related to ODA with specific projects and studies; but China, besides giving ODA to Cambodia, she also gives aid to Cambodia with no conditions when Cambodian government requests. China has emerged as a major donor to Cambodia and unlike aid from the West, Chinese assistance comes with no strings attached.1 Cambodia enjoys and welcomes any donation from any donor except the US in which there is complicated application. So, how large of aid have the two countries, China and Japan, given Cambodia?In 2007, for the first time, China offered aid through the Consultative Group’s pledging process. The CG pledged＄689 million in assistance to Cambodia including＄91.5 million from China. For the 2007-2009 periods, China pledged＄236 million in unspecified aid compared to Japan’s＄337 million.Moreover, Chinese businesses are the leading ones in Cambodia. Garment factories, clubs, casinos and other companies related to agricultures and mineral. Has it really served the national interest of Cambodia? In the last few years, clubs in which gambling were hided were closed down due to complaints from the people that it caused robbery and insecurity. Furthermore, riots from garments workers are often done to request the increase of salary and obey the labor law. As a matter of fact, Chinese factories and companies contribute to reduce poverty but still not a fundamental one. And there are also some NGOs show their concern about the hydroelectric power that may harm the environment and living lives. For Japan, there is few companies doing business in Cambodia, but people see more Japanese organizations helping in charity works, Japanese language schools and recruitment companies. So, what kinds of Aid have China and Japan provided to Cambodia? How do Chinese and Japanese Aid matter in Cambodia? Why are there not so many Japanese companies investing in Cambodia? Why more from China? How is the trend of Cambodian Government between the two donors?As there are critics about Chinese aid to developing countries for her own interest, and I have seen China have been giving her aid to Cambodia enormously in the last decade equivalent to Japanese aid, I am interested to do research on foreign aid of the two countries to Cambodia by comparing their similarities and differences of aid providing. Although there are criticism and controversy among international donors over Chinese aid to Cambodia, we can see rapid growth of Cambodia’s economy and the development. My thesis will be divided into five Chapters:Chapter 1 Brief review of Sino-Cambodia and Japan-Cambodia RelationsThis chapter briefly describes the background and contemporary relations between Cambodian -China and Cambodia-Japan and the evolution of diplomatic relations that leads to aid providing of both countries to Cambodia. Politically, China has engaged with Cambodia more than Japan due to Chinese support to Khmer Rouge regime. The former King Norodom Sihanouk is seen becoming close friend with Chinese leader since the non-aligned movement meeting in 1955 when he met Zhou En Lai. Since then, Cambodia has received both economic and military support from China.The diplomatic relations between Japan and Cambodia officially established on January 9, 1953, a head of Cambodia’s formal declaration of independence from French. Cambodia announced in 1954 that it renounced the right of the State to ask for compensation for damages caused by the presence of the Imperial Japanese Army in Cambodia during World WarⅡ. During the visit to Japan of the then Prince Norodom Sihanouk in December 1955, the House of Representative of Japan passed a resolution of thankfulness for Cambodia’s renouncement of compensation. In the spirit of this event, the Japan-Cambodia Treaty of Amity was signed on December 9th that year by Prince Norodom Sihanouk, the then Prime Minister of Cambodia and Foreign Minister, Mamoru Shigemitsu of the government of the then Prime minister Ichiro Hatoyama. The relationship has developed and strengthened steadily on the basis of mutual respect, understanding conviction and cooperation.Chapter 2 Literature ReviewThis chapter describes about the role of foreign aid of developed and developing countries in providing foreign aid to developing countries. After the Cold War, Japan was the leading donor. In the last decade, China has emerged as one of the top donors. So, this chapter will tell about the overview of Chinese and Japanese foreign aid toward developing countries and the role of China’s and Japan’s aid toward Cambodia.Chapter 3 Theoretical FrameworkThis chapter discusses theoretical framework, Realism and Liberalism concerning foreign aid. It will apply to Chinese and Japanese foreign aid to Cambodia. For realist, foreign aid is used as a political tool to achieve national goals. Aid can be used as a carrot and stick in order to cast political influence to recipient countries. For liberalist, interdependence is important. National interest is identified in long-term and relative gains.Chapter 4 Japan’s Aid to CambodiaThis chapter discusses about the aid relations and aid flow from Japan to Cambodia, especially, Japan’s ODA and its policy of giving aid to Cambodia. Physical infrastructures were built and have been built by Japanese ODA through JICA. Chapter 5 Chinese Aid to CambodiaVarious kinds of Chinese aid will be discussed in this Chapter. It will show the differences of aid compared to Japanese aid. China has long supported Cambodia since the former King Sihanouk during 1960s. During that time, factories and other achievements were constructed by Chinese assistance. In the contemporary period, China still pursues her foreign aid to Cambodia similar to Japanese ODA.

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