Foreign Aid-Corruption Nexus in Cambodia: Its Consequences on the Propensity of Civil War

Contemporary Cambodia is most likely best known for two things—aid dependency and corruption. The thesis initially seeks to examine the nexus between foreign aid and corruption in Cambodia since 1993, the time when a huge influx of foreign aid injected into the country following the withdrawal of UNTAC, then explores if the correlation of the two encourages the propensity of civil war, and ultimately analyzes if the onset of civil war is attainable in the case that the propensity of civil war is feasible. Drawing from the analysis, the thesis concludes that “Foreign aid, particularly loans, indirectly instigates civil war by partly generating corruption, particularly political corruption, because corruption makes aid ineffective in contributing to economic growth and poverty reduction, while encourages huge economic inequality and chronic poverty, which makes Cambodia more vulnerable and prone to civil war”.