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02 Sept 2002

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For many poor countries, overseas aid is a major contributor to the economy and Cambodia is one such country. On the face of it, rich western countries generously donate large amounts of cash to help developing countries. However, aid is often tied to commercial deals which do much to benefit the donor country. We often wondered why the Japanese built so many roads here, but only recently found out that Cambodia has to purchase Toyotas in return. Then there are the huge payouts to overseas consultants, as this article from the Phnom Penh Post makes clear. Even well-intentioned help can have unexpected consequences. For example, we often bemoan the fact that government teachers are paid just $35 a month and then teach the exact same students privately to earn a living wage. Those who don't attend risk getting bad grades. So why not make all students pay modest fees to their schools and use the money to pay the teachers a decent wage so that they don't need to teach privately? Well, the UN's "Education for All" directive states that basic education must be free, and UN aid is conditional on this being the case...