II – Loss of Revenue from Mismanagement of State Assets
         The main State assets are made up of land, forests, rubber plantations, fishing lots, airspace (civil aviation), and airwaves (telecommunication). Only a small portion of revenues from the management in the form of sale, lease, rent, concessions of State assets are paid into the National Budget under the heading, "Non-Tax Revenue"; the bulk of the revenues is collected by the main ruling party and government officials. The Non-Tax Revenue disclosed only $128 million in 2003. Various Global Witness reports indicate that the value of at least 300 million cubic meters of timber fraudulently exported from Cambodia since 1994 can be conservatively estimated at $3 billion or $250 million a year. According to an “Independent Review of the Forestry Sector” written by a group of international experts representing donor countries and given to the Cambodian government in April 2004, any commune with 5,000 hectares of well-managed forest could annually collect – in a sustainable manner – $150,000 for local communities. As 6 million hectares have been lost to forest concessions, the nation, in effect, forgoes annual revenue of $180 million, which would go a long way for rural Cambodia, especially for poor villagers in remote areas. A report entitled, “Feast or Famine - A Report Documenting Conflicts and Abuses of Vital Fishing Grounds in Cambodia” published in 2003 by the Cambodia-based Fishery Action Coalition Team (FACT) in collaboration with the London-based Environmental Justice Foundation, claims that “inland fisheries produce an estimated 200,000-400,000 tons of fish each year with an estimated value of up to $500 million. Only a tiny fraction of these funds reaches Government.” A tax of 5% of the value of fish catches would bring in $25 million to the State coffers; in 2003, revenue from fishery amounts to only $1.5 million. Therefore, the mismanagement of forest and fishery alone causes a loss of revenue of over $200 million a year. Many items concerning land, rubber plantations, civil aviation, telecommunication, which are also sources of corruption, have not been accounted for in the above calculation.

         III - Social and environmental costs
         Over the last ten years, main engines of economic growth for Cambodia have been prostitution, gambling, drug trafficking, and illegal logging. These industries have brought about social and environmental costs associated with the effects of HIV/Aids linked to human trafficking, the destruction of the social fabric, the increase in violence due to gambling and drug trafficking, and ecological disasters such as floods and droughts caused by deforestation. These social and environmental costs are being translated into economic costs (medical expenditures, loss of work productivity, crop destruction, damage to infrastructure caused by floods, etc.) that are difficult to assess, but are definitely an increasing financial burden for the nation.

         IV - Conclusion
         The total cost of corruption in Cambodia – at least $ 800 million – has far exceeded the amount of foreign aid of approximately $600 million a year up to 2004, and $504 million for 2005. It has virtually wiped out the anticipated benefit of the international assistance in terms of poverty reduction.