Mainstreaming Anti-Corruption for Equity Program

Duration

March 2007 - March 2010

Donors

USAID

Overview

The Mainstreaming Anti-Corruption for Equity Program builds on the achievements of Pact's previous Anti-Corruption Coordinated Action Program.

Corruption has been widely recognized as the one of the largest problems currently hindering Cambodia’s development.  According to a 2004 USAID Corruption Assessment Report, it is estimated that “annual diversions from government coffers range between $300 and $500 million.” In 2006 a report by the Economic Institute of Cambodia, "Assessment of Corruption in Cambodia’s Private Sector", indicated that due to corruption, the Royal Government of Cambodia only collects a relatively small percent of tax revenue owed which results in a loss of revenue of hundreds of millions of dollars per year.

In 2005, Cambodia was ranked for the first time on Transparency International’s Corruption Perception Index as 130th out of 158 countries. The same TI index in 2007 saw Cambodia rank 162 of 179 countries that were evaluated, or thirteenth from the bottom of the list.

The impact of corruption within Cambodia permeates all aspects of daily life for all citizens. High levels of collusion between the state and the private sector result in a fundamental distortion of the basic legal and regulatory framework and allow:

Local NGO member taking signed copies of the Clean Hand Treaty to the National Assembly

• Collection of limited legal revenues, as large sums are lost to bribes and other illegal practices;

• Redistribution of revenues within a small circle of elites;

• Sanction of citizens and institutions that threaten structures enabling collusion; and

• Diversion of pressures to address the systematic pandemic of corruption.

The recent discovery of significant commercial deposits of oil off the coast of Cambodia and bauxite deposits in the northeast are new factors which have the potential to exacerbate corruption in Cambodia. By 2010, Cambodia’s extractive industries -- oil, gas, and various types of mining -- could more than triple the annual revenue received by the Royal Government of Cambodia. There is significant concern in Cambodia that this new wealth, unless managed effectively and transparently, could actually be a curse, as typified by countries like Nigeria and Chad.

Despite concerted efforts of international experts, civil society and donor community, the government’s verbal and written commitments to fight corruption far outpace practical measures to reduce corruption.

In the absence of practical measures to implement an anti-corruption strategy, the government’s commitment to anti-corruption remains primarily political rhetoric rather than a demonstration of real political will.

Goal

Increase political will to develop and implement effective solutions to the problem of corruption in Cambodia.

Objectives

• Increase the involvement of Cambodia’s private sector in fighting corruption.

• Continue training and equipping journalists to do investigative reporting, expanding the quantity and quality of media reports on corruption in Cambodia.

• Assist the government in drafting international standard anti-corruption and freedom of information legislations.

• Work with Pact’s Local Administration and Reform Program to increase sustainable mechanisms for monitoring accountability, transparency and good governance at the commune level.

• Build on the success of the "Clean Hand" campaign in building the awareness and resolve of Cambodians to take a stance against corrupt practices.

• Develop transparency and watchdog mechanisms around expected resource inflows from the extractive industry sector.

Publications

Please see the Publications page.