International development? You can bank on it.

One of my less appealing characteristics is my ability to appear smug. One such time was during the banking crisis in 2008 when my mortgage with the Cooperative Bank, chosen because of their social contributions, fell along with interest rates to be the cheapest on the market.

Smugness was soon replaced by disappointment as despite everybody hating banks, they continued to give them all of their money. I couldn't understand this when there were banks like the Co-op or Triodos (invest in social, environmental and cultural organisations) offering a different banking model. My smugness fell even further when in Cambodia, I found myself promoting greater use of banks.

Perhaps unsurprisingly in a country without money, banks aren't that common in Cambodia. This means that Government sends budgets to schools and wages to civil servants by cash in cars, and school directors keep cash in their home. As money passes through the hands of the provincial office of education, to the district office of education, to school directors and then to teachers, the money gets lighter every time.

Before the election, a primary teacher had a starting salary of $75.50 p/m. Less than a garment factory worker. If some of that goes missing, then teachers are even more likely to need a second job meaning they miss classes. After the election, the government announced a rise to $102 but the details are unclear.

Looking into using the banking system, I found that one bank, ACLEDA, has greatly expanded in recent years and now has branches in approximately 80% of districts, covering the vast majority of schools and teachers. Understandably, ACLEDA were enthusiastic about the prospect of Government increasing its use of the banking system, and transaction costs would certainly be much lower than delivering by car.

International development agencies (EU, World Bank, UNICEF etc) are enthusiastic about this but the Government less so. In fairness, it would be a mammoth task to set up bank accounts and systems, but restricting the pilot to 1500 senior civil servants in Phnom Penh doesn't show a huge desire to change. However, they have just agreed with the Swedish International Development Agency (SIDA) that all schools will have a bank account within three years (the cynic questions whether they will be used...).

Children are meant to start grade 1 aged 6, but about one-third start later than that. Despite this, the malnourishment causes the children to be tiny and look really young.

 When meeting with ACLEDA, they began to talk about their ethos. It started as a not-for-profit and is still largely owned by its employees and then my smugness returned as I began reading that one of their largest investors who also provide advice was...ME! Well not exactly me, but Triodos, where my savings reside. I even felt proud to bank with Triodos - not a feeling many people have about their bank.

Understand this; your money is making a difference with whichever bank it is in. It can be used to invest in oil, defence or low-wage garment factories or it can be used to help some of the poorest communities wherever they are. You don't have to come to Cambodia to make a difference, in fact the biggest difference that we could make can be done by anyone, anywhere.

Giving it some high 5s in a school in Pursat, where our tuk tuk driver friend (Mr. Seng) is from.

 It's time to put your money where your mouth is.
Gordon