Multistakeholder Forestry Programme

1. Multistakeholder Forestry Programme State building in Indonesia: An aid instrument to support governance reforms

2. Big themes • Improving governance and building an effective state • Demonstrating impacts on poverty • Using a complementary aid instrument • Supporting policy reform for growth and rural employment, decentralisation • Improving environmental management

3. Why forestry? • It’s not about the trees… • Poverty in Indonesia = 36 million (17% below $1), variable (e.g. 42% Papua) • 10 million poorest have forest-based livelihoods • Natural resource drivers of bad governance • Bad governance results in poverty and environmental decline • Forest policy as entry point for engagement on key development themes: growth, poverty, anti-corruption, democracy, conflict, decentralisation

4. Conceptual framework • Political economy framework: • Agents (individuals and organisations) • Institutions (rules of the game, regulations and norms) • Structures (power relationships to sustain special interests) • Role of civil society in challenging government, promoting pro-poor change • Forestry as an entry point for change: • Conflict and injustice: communities, with govt and pvt sector • Governance: access to land resources and services • Poverty: 50m in forest, income, health, env services, no voice

5. Context: the political economy • Pre-1998 - Soeharto’s centralized elites, dominate politics, corruption and patronage to serve economic interests • Collapse, chaos and new political space • Rapid change – decentralisation, growth of civil society, democracy, changing power and influence • Still contested: political economy of land, high value timber, decentralised power

6. The MFP • Approach and design process (1999-2000) • Drivers of Change analysis of political transitions • Broker new relations between citizens & state • £25m (2001-2006) for grants for civil society and government partnerships, with added facilitation • Modest expectations – to improve the conditions for pro-poor policy reform • Phasing from “1000 flowers” to strategic game plan

7. Scale of intervention • over 220 partners, range of partners and roles Community development Local governments Watchdog Local NGOs National Ministry Networking Grant-making Farmers unions, Women’s groups … Training Universities Advocacy Research Nat / Intl NGOs Media Local parliaments Research organisations Marketing Adat federations

8. Working at local level (e.g. Sulawesi) -Policy analysis, shared learning -Press network -Communication forum -Advocacy network -Market development -Multistakeholder Forum negotiating rights -District regulations setting rights • -Poverty analysis, conflict mediation, informal justice • Social mobilisation, farmers’ associations • Demonstration of negotiated settlements

9. Working at national level • National partnerships, MFP and Ministry seconded staff • Role for MFP nationally, to facilitate • Building of policy evidence • Shared learning and building capacity • Policy and economic analysis • Policy advocacy • Challenging assumptions about poverty • Multiple and diverse policy arenas • local experience into national and international policy debates • international policy leverage in local advocacy

10. MFP facts and figures - budget • ₤25m commitment over 6 years • Over ₤16m in grants to partners • 379 grants 2001-2005, ave £28k • ₤2.5m block grant to MoF • Administration covers 1 national & 6 regional offices, 32 staff • ₤4m for value added activities: • support to partners • capacity building • shared learning • policy analysis • advocacy and communications • monitoring

11. MFP facts and figures - partners

12. MFP facts and figures - regions

13. MFP facts and figures – grantees

14. Governance impacts • changing attitudes • changing policies • changing the rules of the game • building skills and capacity • In local government: building understanding; supporting leaders; developing a client-focus • In NGOs: from conflict to partnership, from competition to networking • In business: from dominance to participation • In politicians: better informed on issues and solutions • 53 districts with reviews of policies, regulations, budgets • local government policies cover land access; customary rights, payment for environmental services, management partnerships … • national policies cover money laundering laws, land rights, forest product export regulations … • new trust, partnerships and power relations between poor people and governments • more transparent policy-making • joined up governments • corruption and transparency • organisational changes • recognition of the role of civil society • in local government: dealing with rural communities • in Ministry: running consultations • in NGOs: organisational and professional skills • in CBOs: mobilisation skills

15. Poverty impacts – changing lives • increased voice • reduced vulnerability • more transparent, accountable government • better incomes • participation in policy-making • building political and social capital, networks, information • social networks and political groups, access to local government • reduced conflict (within communities, with government / business) • access to justice (at least informal) • diversification of livelihoods • protection from crises & shocks – drought, flood, market prices • transparent and consultative policy-making • responsive policies • market services • stronger decentralisation and democracy • accumulation of assets (health, education, housing, land, trees…) • ability to sustain assets

16. Lessons – building effective states • Support political processes around voice and accountability • Work explicitly in the political economy • A sectoral entry point is important • Demonstrate results - governance reforms lead to: • reduced poverty outcomes • better managed natural resources • economic growth and employment

17. Lessons – aid instruments • A new kind of instrument – partnership grants with strategic facilitation (not just a CS challenge fund) • Timing and context important • Complement to other instruments • Good effort to reward ratio for DFID • DFID comparative advantage

18. Lessons – harmonisation and alignment • Alignment behind weak (not pro-poor) government policies does not build effective states • Ownership needs to be broadly based • Sustain the momentum • Harmonise through multi-donor funding frameworks