Last week, my mom's friend got held at the airport for carrying too much cash. It turned out that she had at tens of thousands of dollars with her, all from Khmer friends in Revere who wanted to give money to their less well-off relatives back in Cambodia.
What I find ironic is that most Americans need an institution to legitimize donations. Things work in an almost the exact opposite manner in Cambodia. Organizations are viewed with skepticism and suspicion; your money will likely be funnelled into the hands of a corrupt leader. Instead, it is far more wise to entrust thousands of dollars to, say, your neighbor who is making a trip to the country. I guess the trust is derived from the fact that you know them, you know where they live, and you know that if anything wrong happens, everyone in the community will make sure they are held accountable. People in the Cambodian community in Revere talk. They gossip. I read about a similar phenomena in my economic development of Africa class but forget the actual term coined to describe this practice. I believe it was "economy of reciprocity."
Regardless, I think the key takeaway here is that while these dynamics work, it results in inefficiency and ineffectiveness. The social system of welfare occurs on a grassroots basis, where money shifts from one individual's hands directly to another's. But what about people who aren't as lucky to have wealthier relatives? (Maybe this is why my family is constantly alerted about the trials and tribulations of our distant cousin's wife's brother's great-uncle.) I think there is a reason why organized non-profits exist, but I find it sad that these non-profits cannot be trusted (rightfully) in Cambodia. Economies of scale ultimately becomes a foreign concept.
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