Limits of Economic Assistance

Abstract

The international donor community made a noble policy commitment to the reconstruction and development of the Cambodian economy and did help ensure decent economic growth throughout the 1993–2006 period. As noted, however, the growth the country enjoyed offered most Cambodians limited benefits. Complex realist institutionalism further helps make sense of this problem. This chapter focuses on donors’ economic development shortcomings, despite their good intentions and generous assistance. It first examines donors’ policy commitment and then reveals the limited impact of economic neoliberalism. Furthermore, this chapter demonstrates that the lack of aid coordination among donors, as well as between donors and Cambodia, posed a chronic challenge to economic development.