Cambodia’s NGO Sector Is Collapsing. Does It Matter?

Imported by international donors in the 1990s, NGOs have supplanted rather than strengthened local forms of political organizing.

A dusty road in Treak village, Siem Reap province, Cambodia.

From the early 1990s through the early 2010s, Cambodia hosted one of the most vibrant, generously funded, and unchecked civil society ecosystems in Southeast Asia. Former Prime Minister Hun Sen once famously referred to the country as a “heaven for NGOs.” And indeed, up to 6,100 registered non-government organizations (NGOs) and associations have been able to flourish, including about 3,450 NGOs and 2,650 other civil society associations. This number of NGOs is very high by global standards, by one count making up the second highest number per capita in the world after Rwanda.

A confluence of disasters has changed all that. The heyday for NGOs effectively started closing following the 2013 national elections, when the ruling Cambodian People’s Party (CPP) faced a major electoral threat and began systematically dismantling the public sphere. Viewing NGOs as a vehicle for hostile foreign-backed “color revolutions,” the Cambodian government introduced a restrictive and controversial Law on Associations and Non-Governmental Organizations in 2015. It also began to use tax audits, lawsuits, and political pressure – such as monitoring or disturbing civil society meetings, refusing to give permission for activities, and other coercive tactics – to restrict the sector.

Not only are NGOs required to navigate a suspicious and unfriendly political environment, but they also face a critically strained financial environment. Recently, the international development landscape has endured its steepest funding decline on record. As global power relations go through a process of significant reconfiguration and Cambodia simultaneously moves toward graduating from Least Developed Country status in 2029, global official development aid has been dramatically curtailed. This is set to continue.

The dramatic reduction in funds has had a significant and increasing impact on Cambodia and its NGOs. Already 10 years have passed since funding for Cambodian NGOs reached its peak in 2016. A recent survey of civil society organizations in Cambodia revealed that 26 percent of NGOs say they are not financially viable beyond 2027. It is not unreasonable to suggest that only one in five NGOs may survive the next decade.

In response to this calamity, there have been calls to redesign the ecosystem of civil society in Cambodia. These are led by the Cooperation Committee of Cambodia (CCC), which serves as the professional association of NGOs. A roadmap prepared by the CCC points to how major transformation can be achieved. Options being considered include increased reliance on local philanthropy; the reinvention of NGOs as social enterprises or technical assistance offices; blended financing; increased sharing of resources and organizational infrastructure; and, if there is interest, mergers.

If undertaken, these initiatives would together mark a profound shift away from traditional NGO models toward leaner, more specialized structures grounded in local ownership.

But it won’t work. And here’s why.

First, local philanthropy is captured almost exclusively by the CPP and, for the purposes of making merit, by pagodas and other institutions associated with Buddhist practice. There is little appetite among everyday citizens for giving to NGOs, and it seems unreasonable to expect NGOs to try and compete with entrenched political parties and organized religion in their fundraising efforts. A notable exception to NGOs’ failure to inspire local giving is the Cambodian Red Cross, which is skilled at generating significant donations from wealthy individuals. While this is a large and prominent humanitarian organization in Cambodia specializing in disaster relief, it is also compromised by political entanglements – its president is Hun Sen’s wife Bun Rany – and is the recipient of questionable major donations.

In any event, international philanthropy sometimes funds the wrong things, as any effective altruist will tell you. Well-meaning donors tend to give to projects that look good or feel good, not necessarily those that do good. Just this week, Sunrise Cambodia, a Cambodian NGO that has traditionally been very successful at fundraising in Australia, was in the news again after a former chairman of the Australian Cambodian Foundation, the registered charity raising funds for Sunrise Cambodia, was found dead after being charged with possessing child abuse materials. Financial support for Sunrise Cambodia will reportedly continue.

Second, there is no demonstrable demand for technical assistance offices or social enterprises on a scale that may mop up excess NGO programs and human resources. To date, no evidence has emerged that presents a sensible business case for this model of transforming NGOs.

Third, blended finance models may be excellent for particular types of NGOs, such as larger organizations working in agriculture, water, sanitation and hygiene, and health. But it is not a suitable approach for smaller, grassroots NGOs and those that have adopted strong social welfare, human rights, and poverty alleviation mandates. Expectations of........

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