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Cambodia’s civil society is entering its most consequential decade since the post-UNTAC era. As the country prepares for its anticipated graduation from Least Developed Country (LDC) status by 2029, the global funding environment that had nurtured Cambodia’s NGO ecosystem since 1991 is shifting dramatically. The OECD projects a 9–17% drop in global ODA in 2025, following a 9% decline in 2024—marking the first time in nearly 30 years that major donors, including the U.S., France, Germany, and the U.K., have reduced aid for two consecutive years. Bilateral ODA to least developed countries is expected to fall by 13–25%, while health ODA may decline by as much as 60% from its 2022 peak, underscoring the severity of the contraction facing countries like Cambodia. These global headwinds are not abstract trends; they are already reshaping the operational landscape for Cambodian NGOs.
A shock came in 4 years earlier:
The most dramatic shock came in early 2025, when the United States abruptly froze foreign aid and later terminated 30 USAID-funded programs in Cambodia worth US$260 million, cutting across the health, education, child protection, civil society, independent media, and anti-trafficking sectors. This was part of a wider overhaul that saw USAID slash 83% of its global programs and eliminate thousands of contracts—a move analysts have described as “an extreme example of a broader, irreversible trend” in the global withdrawal from development financing.
The impact inside Cambodia has been profound: CMAC halted mine-clearance operations in several provinces after losing U.S. funding, affecting more than 1,000 staff before receiving only limited, short-term support months later. In the health sector, US$15 million in funding for tuberculosis diagnosis, treatment, and prevention was eliminated, despite rising TB cases in 2024, with 33,363 infections reported—a year-on-year increase. Education also suffered significant setbacks, including the termination of US$25 million in primary education support and US$27 million for teacher training and early childhood development programs—at a time when the enrollment rate of Cambodian children aged 3–5 in pre-primary education is among the lowest in ASEAN and when human capital indicators remain central to Cambodia’s development ambitions.
These shocks are occurring on top of other donor withdrawals. Sweden’s complete phase-out of aid after 2024 removed over SEK 145 million (US$13.6 million) in development assistance annually, including SEK 60 million directed to civil society and human rights organizations, leaving more than 60 groups at risk of closure or severe downsizing. The German Development Ministry (BMZ) has also announced reductions affecting bilateral programs, political foundations, and NGO funding streams, contributing to what regional commentators describe as a “shrinking pool of resources with no sign of return” for Cambodia’s civil society sector.
Findings from a CSO Roadmap Survey in August-September 2025:
These macro-level shifts are reflected within civil society itself. A CSO survey conducted by the Cooperation Committee for Cambodia (CCC), involving 49 NGOs, found that 40% operate on annual budgets below US$300,000, and 20% operate with less than US$50,000 or no secure funding at all. Only 5–9% access resources from CSR, social enterprise, or philanthropic channels. Twenty-six percent of NGOs say they are not financially viable beyond 2027. As funding becomes more constrained, nearly half (49%) express interest in shared support services to reduce costs; 24% are open to mergers; and 12% are considering transforming into technical assistance offices—marking the clearest shift yet from traditional NGO models toward leaner, more specialized structures grounded in local ownership.
At the same time, the structure of Cambodia’s NGO ecosystem remains costly and fragmented. More than 350 organizations are registered as members of CCC, NGO Forum on Cambodia, CPDD, CRC Cambodia, NEP, and HACC, yet many operate in overlapping thematic areas, competing for shrinking donor resources. Donors themselves face administrative burdens in managing numerous small grants, creating inefficiencies that weaken program scalability and dilute national-level impact. These challenges were repeatedly raised in CSO consultations involving more than 145 organizations, including INGOs, Cambodian NGOs, unions, and youth networks.
It’s time to redesign CSO ecosystem in Cambodia:
What emerges from these trends is not merely a story of decline but a call for the re-engineering of Cambodia’s CSO ecosystem. Cambodia’s civil society must intentionally redesign its architecture if it hopes to remain influential in a future defined by reduced aid, increased geopolitical competition, and the government’s accelerated development trajectory. The roadmap arising from nationwide consultations recommends a set of seven operating models: Business as Usual, Philanthropic Model, Social Enterprise, Advocacy & Monitoring Office, Technical Assistance Office, Merger or Consortium Model with consolidated operational support services, and consolidation into a few major organizations. Early estimates suggest that shared systems and merged operations could reduce overhead costs by 10–30%, freeing scarce resources for programming rather than administration.
Development Partners have a pivotal role. They must shift from short-term project grants to multi-year core support and pooled funding, while supporting the creation of a Civil Society Support Hub to streamline compliance and grant management. Donors should also align with the seven dimensions of localization and transition INGOs from subcontracting roles toward genuine co-leadership with Cambodian organizations. Local actors need investments not only in project delivery but also in institutional resilience—leadership, digital systems, financial management, and policy engagement.
Cambodia’s civil society is not standing at the edge of collapse; it is standing at a crossroads. The choice now is between fragmentation and reinvention. The global aid landscape will not return to the generosity of the 1990s and 2000s. But with strategic consolidation, stronger partnerships, diversified revenue streams, and a deliberate transition to locally led development, Cambodia can build a more sustainable civil society—one that survives shocks, commands influence and continues to serve as a cornerstone of accountability and development in the decades ahead.
Note: This Op-Ed was written by Hong Reaksmey and Sin Putheary. Reaksmey sits in the Executive Committee of CCC and is a development practitioner with extensive experience in civil society strengthening, localization, and governance reform in Cambodia.
Putheary is a Civil Society Executive focusing on Civic Space, Policy advocate, NGO effectiveness and organizational development. She has worked for CCC from 2014-2025
The views expressed in this article are solely those of the authors and do not reflect the positions of the organizations they are affiliated with.
