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E valuating Governance and Decentralization in Indonesia

E valuating Governance and Decentralization in Indonesia. The 2002 Governance and Decentralization Survey (GDS). BBL, 12:30-14:00 2 nd October 2002, MC 9-W150 EACIQ and the Decentralization Thematic Group Kai Kaiser World Bank Office Jakarta/EASPR www.worldbank.or.id/decentralization.

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E valuating Governance and Decentralization in Indonesia

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  1. Evaluating Governance and Decentralization in Indonesia The 2002 Governance and Decentralization Survey (GDS) BBL, 12:30-14:00 2nd October 2002, MC 9-W150 EACIQ and the Decentralization Thematic Group Kai Kaiser World Bank Office Jakarta/EASPR www.worldbank.or.id/decentralization

  2. Indonesian Decentralization • 2001 “Big Bang” • 30 Provinces • 348 Local Governments (kotas/kabupatens) • Administrative & Legal • Unitary State • Emphasis on Local Governments • “Devolution” of Civil Service • Fiscal • Law 25/1999 90/10 25 % Net Revenue Framework • Block Transfers Dominant Source of LG Revenue (the DAU)

  3. Transformation of Accountabilities • Pre-Decentralization • Central-Regional Accountabilities • Tied Funding (SDO/Inpres) • Appointments • “Dual” Civil Service Structure • Decentralization • Local Bureaucracy-Legislature • Legislatures Elected in 1999 (again in 2004) • Regional Heads Elected as Term Ends • Annual Accountability Speeches • Partners….in an uncertain marriage?

  4. Main Governance Themes • Elite Capture • Money Politics (politik uang) • Little Kings (raja kecil) • “Overgrazing” (campur tangan) • Uncertainty • “Pro-Poor” Regional Governments? • Capacity

  5. Main Initiatives • Central Support of Evolving Intergovernmental System • Regional Public Expenditure Review (RPER) • Integrated Performance Monitoring • Regional Fiscal Information • Sectoral Outcomes at the Local Level • Governance and Decentralization Surveys • Local Monitoring, Case Studies and Project Initiatives

  6. 2002 Governance & Decentralization Survey

  7. GDS Framework • Tracking over time • 2002/4 GDS • Strategic Links of Primary & Secondary Data Indonesian Decentralization Empirical Analysis (IDEA) • Research Partner (CPPS/UGM, Yogya) • Network of 16 Regional Universities • Leveraged on Project and Sectoral Work • ILGR– Initiatives for Local Government Reform Project • ULGRP – Urban Local Government Reform Project

  8. Information Strategies • Quantitative • Survey Instruments • Qualitative • Field-supervisor Notes • Logs of Best Practices and Worst Practices • Regional Forums/Facilitators Follow-up

  9. GDS Coverage & Sampling • 150 Randomly Sampled Local Governments • 27 Project Top Ups • 12 Structured Questionnaires • 4 Village Clusters • Health Clinic • School • 60 Households • 36 Public Officials and Civil Society

  10. Decentralization Dimensions • stakeholder’s understanding of local autonomy • civil service reform • commitment to public needs • service quality • stakeholder’s judgment on local autonomy implementation • corruption, collusion and nepotism (KKN) • technical capacity of local governments • level of conflict

  11. Governance Dimensions A Few of Our Favourite Things • participation • rule of law • effectiveness & efficiency • responsiveness • transparency • equity • conflict resolution

  12. Preliminary Findings/Issues • The Good, the Bad, and the Ugly • Data still being cleaned • Detailed analysis still being conducted

  13. The Good • People have heard of decentralization • 81,52 % did after one year • Perceptions suggest that core services have not collapsed • People are optimistic • Expectations across respondent types largely consistent

  14. Decentralization Optimism

  15. Decentralization Optimism II

  16. Perceptions of Decentralization Some indications that perceptions differ off-Java

  17. The Bad • Concerns about crime/rule of law • LG’s don’t do enough for the poor

  18. Decentralization Troubles

  19. Pro-Poor Local Governments?

  20. Perceived Reasons for Local Poverty

  21. Perceived Priorities?If I had a 100 billion Rps?

  22. The Ugly (or at least vexing) • Perceptions about participation vary across key actors • The relationship between participation, accountability, and LG “efficacy” is not yet clear

  23. Differing Perceptions

  24. Accountability? But levels vary across local governments.

  25. Accountability • Prospects for accountability? • Electoral (esp. 2004)? • Legal/Judicial? • Administrative? • “Informal” Mechanisms • Planning, budgeting, and implementation • Dis-junctures • Routine versus development budgets

  26. GDS Objectives & Trade-Offs • Breath versus Width • Yardstick Competition • Comparability Across Regions • Common Language • Common Proxies • Monitoring & Evaluation • Rating Systems

  27. Follow-up • National Report (11/2002) • Good and Bad Practices Digest (12/2002) • Regional Ratings (2/2003?) • Regional Investment Climate • Case Studies / IGRs? • Local Capacity Building for Evaluation

  28. Reality Checks • Targeted Case Studies • Monitoring Over Time: GDS 2004 • The Sulawesi Fiduciary Review • Spirit versus Letter of Good Governance

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