U.S. funding for Cambodia to drop by quarter in 2008

The United States funding for Cambodia is slated to drop 25 percent in fiscal year 2008 to 40.9 million U.S. dollars, from 54.9 million U.S. dollars in fiscal year 2006, local media said on Thursday.

"The projected cuts in funding in fiscal year 2008 are unrelated to conditions in Cambodia and are a function of a tight budgetary environment in Washington and realignment of global development priorities," U.S. Embassy spokesman Jeff Daigle told the Cambodian Daily.

Funding for anti-human trafficking, promotion of labor rights and political party development after the 2008 national elections will no longer be focus areas for the U.S. assistance, he said.

It will turn to focus on developing democratic institutions, strengthening peace and security, establishing a health system that can respond to infectious disease outbreaks and encouraging market-driven economic growth, he said.

Meanwhile, Cheam Yeap, lawmaker from the ruling Cambodian People's Party (CPP), said that the proposed cut will not be felt deeply, as the U.S. doesn't provide much direct assistance to the Cambodian government.

"The U.S. cutting funds will not affect the government's programs and the government's budget," he said.

He also said that Cambodia has a wealth of other donors that it can turn to for assistance.

"China also gives us a lot of money for infrastructure," he added.

The proposed reduction comes amid a warm-up of the U.S.- Cambodian relations.

The U.S. has decided to resume direct aid for the Cambodian government after a decade of hiatus and a U.S. Navy vessel just paid an official visit to the kingdom's port city Sihanoukville.

In addition, under the terms of the 2007 U.S. budget resolution passed on Feb. 15, Cambodia will likely receive about 56 million U. S. dollars of aid this fiscal year, without any restrictions on direct government assistance.

Source: Xinhua