Human Development Training: Practical Application of the Human Development Approach for Local Planning, Budgeting and Pe

1. Planning and Budgeting using the HD and MDG Framework Human Development Training: Practical Application of the Human Development Approach for Local Planning, Budgeting and Performance Management Banda Aceh, 20-21 October 2009 Abdurrahman SYEBUBAKAR Head of Poverty Reduction Unit, a.i. UNDP Indonesia

2. Background • MDG mixed progress, national aggregates mask disparities across the archipelago---a significant number of the districts and provinces are unlikely to meet some goals • Decentralization offers both challenges and opportunities to achieving the MDGs and advancing human development. • With decentralization, the district has assumed greater responsibility in designing and executing public policies and programmes • Many districts & cities face capacity “deficits” ranging from lack of analytical tools and operational processes • Indonesia has radical fiscal decentralization---in 2006, 40% of all public funds spent by provincial and district governments. However, a recent review of public expenditures in Indonesia has noted that “Indonesia’s main development challenge is no longer to transfer money to poorer regions but to ensure that those poor regions spend the money well”

3. HD and MDG approaches: what do we use them for? • Defining, measuring and evaluating development performance, comparisons in-country and internationally • Guiding local development strategy – prioritysetting, strategic focus, planning, budgeting, better targeting and sharper allocations, stakeholder engagement, M&E, policy responses • Integration of development planning at the different level around development priorities

4. HD & MDG application? • HD and MDG frameworks embraced (RPJM, RPJMD, HDR, MDGR) at the national and sub-national level • Practical application of HD/MDG tools at the sub-national level has started but limited • Data analysis and Dbase • MDG score-carding • MDG based analysis of budget • Poverty mapping • HD based breakthrough programs, acceleration • targets

5. EXAMPLES: MDG-based Planning and Budgeting Poverty Map vs Budget Allocation for Poverty Alleviation MDG Scorecard Proportion of Poor People (%)

6. ACHIEVEMENTS 2009 P3BM was used to develop Regional Development Plans in 9 districts through Musrenbang for 2010 budgeting period. Below some indicative progress: Social and Culture Education Billion (Rp) Billion (Rp) Economy (Farming, Fishery, Coops. & SME) Infrastructure Year Year Starting from 2010, Provincial Government of NTB, NTT and Sulawesi Tenggara are to share their budgets with district governments to address PRIORITY ISSUES as shown in MDG Scorecard as Red

7. Gorontalo: Focus on 15 lower-HDI sub districts Gorontalo focusing on 15 lower-HDI sub districts Provincial HDI performance Province National Poverty

8. “Ingredients” of successful application Data: timely, valid, relevant – adjustment of regular data collection might be needed Measures and instruments adapted to local context Political support and commitment of leadership Capacities (data collection/analysis, planning, budgeting, monitoring, response) Inclusion of stakeholders (communities, musrenbang, local legislatures, academia, civil society) Coordination across sectors, institutions (BAPPENAS/Bappeda & BPS), levels of governance, executive and legislative

9. Challenges and issues: MDGs • Global, aggregate figures mask discrepancies • Technocratic process, less on transforming power relations while planning and budgeting – political process • Based on quantitative rather than qualitative measures (governance, participation, empowerment etc not captured) • Focus more on the “What” (results) than the “How” (process)

10. Challenges and issues: Human Development • Human development (HDI, participation, inequality, etc) • HDI-- measuring progress in major areas of HD but not all • Education – enrollment and literacy rates • Health & longevity – reflected in life expectancy • Standard of living – reflected in GDP per capita in PPP$ • Other indices (democracy index, human poverty index, gender empowerment measure)--robustness, relevance, comparability and utility questionable • Too complex, too broad, hard to measure qualitative dimensions (degree of inequality etc)

11. HD complements the MDG framework • Putting people at the center of development, help overcome limitations of economic approach • A lens of analysis--improving ways of “how to look” at the policy dimension of achieving national and sub-national development goals • Providing standards for “how to judge” the quality of public services • Emphasizing participation and accountability of all relevant actors • Questions: How to make it operational and integrated into MDG based planning, budgeting & evaluation?

12. Thank you