a case study: national community empowerment program (pnce)

PUBLIC ADMINISTRATION: CONCEPTS ANDPUBLIC ADMINISTRATION: CONCEPTS AND PRACTICE

X. NATIONAL COMMUNITY EMPOWERMENT PROGRAMEMPOWERMENT PROGRAM (PNCE)

A CASE STUDYA CASE STUDY

Graduate School of Asia and Pacific StudiesUniversity of Waseda, Tokyo-JAPAN

20082008

CONTENTS

INDONESIA’S MAIN POVERTY ISSUESINDONESIA S MAIN POVERTY ISSUESGOALS: ALIGNMENT OF KEY GOVERNMENT PRIORITIES WITH MDGsCOMMUNITY EMPOWERMENTCOMMUNITY EMPOWERMENTWHAT IS NPCE?WHY NPCE?HOW IT WORKS?DURATION, COVERAGE AND BUDGETINGTHE SOURCE OF FUNDINGTHE SOURCE OF FUNDINGTHE IMPACT ON EMPLOYMENT AND POVERTY REDUCTION

GSAPS-2008 www.ginandjar.com 2

INDONESIA’S MAIN POVERTY ISSUESISSUES

LARGE NUMBER OF POORLARGE NUMBER OF POORMACRO STATISTICS (BASED ON SUSENAS, MARCH 2007): 37.17 MILLION PEOPLE LIVE UNDER POVERTY LINE (16.58% OUT OF TOTAL POPULATION)TOTAL POPULATION)

URBAN: 33.56 MILLION (12,52%).RURAL: 23.61 MILLION (20,37%).( , )

MICRO STATISTICS (BASED ON UCT SURVEY DATA, 2005): 19,1 MILLION HH, CONSIST OF 3,8 MILLION POOREST, 8,2 MILLION POOR AND 6 9 MILLION NEAR POORPOOR, AND 6,9 MILLION NEAR POOR.

LOW QUALITY OF HUMAN RESOURCESHIGH NUMBER OF CHILDREN AT THE LOWEST QUINTILE ARE QDROP-OUTS.PARTICIPATION RATE AT JUNIOR HIGH SCHOOL OF THE LOWEST QUINTILE IS ONLY 70%


LOWEST QUINTILE IS ONLY 70%.

INDONESIA’S MAIN POVERTY ISSUESINDONESIA S MAIN POVERTY ISSUES

MATERNAL MORTALITY, ESPECIALLY OF THE LOWEST QUINTILE, IS HIGH.QUINTILE, IS HIGH.HIGH INCIDENCE OF MALNUTRITION AND UNDER FIVE MORTALITY.

THE SLUM AREAS IN URBAN AREAS COVERS OF 56,000 HECTARES IN 110 TOWNS, 42 000 VILLAGES GROM THE TOTAL NUMBER OF42,000 VILLAGES GROM THE TOTAL NUMBER OF VILLAGES IN INDONESIA OF 77,000 VILLAGES ARE CATEGORIZED AS POOR VILLAGESCATEGORIZED AS POOR VILLAGES.


GOALS: ALIGNMENT OF KEY GOVERNMENT PRIORITIES WITH MDGGOVERNMENT PRIORITIES WITH MDGs

INDICATORS/TARGET (%) 2002ACTUAL

2009TARGETS

MDGs 2015ACTUAL TARGETS 2015

TARGETSPovertyPopulation below US$ 1 a day 7.2 10.3Poverty head-count ratio 18.2 8.2 7.5HealthUnder 5 mortality rate (per 1,000 live births) 60 26 (,1

mortality)33

Maternal mortality ratio (per 100,000 live births) 307 226 105EducationNet enrollment rate in primary education 92.7 99.6 100

Gross and net enrollment rate at junior level 79.7 98Literacy rate of 15-24 y.o 98.7 100Water & Sanitation

f l h h d% of population that has access to improvedwater

78 80

Rural DevelopmentAgricultural sector growth 35


COMMUNITY EMPOWERMENTCOMMUNITY EMPOWERMENTA BASE FOR NATION BUILDING

Building community capacity as social capital

Enhancing social entrepreneurship at community

Providing economic capital Through Community Block entrepreneurship at community

level through facilitators/community leaders

Through Community Block Grants/BLM


COMMUNITY EMPOWERMENT AIMS AT CREATINGCOMMUNITY EMPOWERMENT AIMS AT CREATING AND ENHANCING COMMUNITY CAPACITY TO EFFECTIVELY OVERCOME VARIOUSEFFECTIVELY OVERCOME VARIOUS DEVELOPMENT PROBLEMS FACED BY THE COMMUNITIES.COMMUNITIES.


POVERTY REDUCTION THROUGH COMMUNITY

RESPONSIVE GOVERNMENT/EMPOWERED COMMUNITIES

EMPOWERMENT

Strengthening bottom-up planning and budgeting;Improving local government representation and responsiveness;Improving social service delivery to the poor;P l i d b d tiPro-poor planning and budgeting

Market linkages Social Protection’

BLOCK GRANT

Non-bank and microfinance SADI (smallholder dvpt)Information technologyRenewable energy

Women’s participationJustice for the poorHelping marginal groupsBudget transparencyCommunity trust fundsBLOCK GRANT

TRANSFER TO THE POOR

Renewable energy Community trust fundsSustainability


COMMUNITY EMPOWERMENT MAIN ACTIVITIESTRAIN THE COMMUNITIES IN IDENTIFICATION, ANALYSIS AND DECISION MAKING PROCESS TO

COMMUNITY EMPOWERMENT MAIN ACTIVITIES

TACKLE THEIR POVERTY PROBLEMSCREATE/EXPAND SMALL SCALE INFRASTRUCTURES AND COMMUNITY ECONOMIC PRODUCTIVITIES.INCREASE COMMUNITY CAPABILITY AND SELF-HELP TO ACHIEVE BETTER STANDARD OF LIVING


EMPOWERMENT PROCESS


WHAT IS NPCE?WHAT IS NPCE?

NPCE IS A POVERTY REDUCTION POLICY FRAMEWORK FORNPCE IS A POVERTY REDUCTION POLICY FRAMEWORK FOR VARIOUS PROGRAMS AIMED AT POVERTY REDUCTION THROUGH COMMUNITY EMPOWERMENT.NPCE CONSOLIDATES THE ENTIRE COMMUNITY EMPOWERMENT-BASED POVERTY ALLEVIATION PROGRAM, ACCELERATING POVERTY ALLEVIATION EFFORTS AND INCREASING COMMUNITY'S EMPOWERMENT AND SELF SUSTAINABILITYSUSTAINABILITYCOMMUNITY DRIVEN EMPOWERMENT PHASES:

EMPOWERMENT LEARNING PROCESSEMPOWERED COMMUNITYEMPOWERED COMMUNITYSELF-HELP COMMUNITY.

TRANSFORMING COMMUNITY RESOURCES INTO SOCIAL/ECONOMIC CAPITALSOCIAL/ECONOMIC CAPITAL


NPCE IS IMPLEMENTED THROUGH HARMONIZATION AND STABILITATION OF EMPOWERMENT POLICIES AND PROGRAMS INVOLVING THE TARGETING OF REGIONS AS WELL AS BENEFICIARIES, BASIC PINCIPLES, STRATEGIES, APPROACHES, INDICATORS, C S, S G S, O C S, C O S,AND MECHANISMS.


WHY NPCE?WHY NPCE?

THERE HAVE BEEN DIFFERENT KINDS OF POVERTY ERADICATION ACTIVITIES WITHIN MINISTRIES/INSTITUTIONS CREATING INEFFICIENCY AND OVERLAPPING ACTIVITIES, MECHANISMS, COMMUNITY'S INSTITUTIONS NEEDCOMMUNITY S INSTITUTIONS NEED HARMONIZATION.IMPERFECT MARKET, ESPECIALLY IN MEETING ,PEOPLE’S NEEDS IN REMOTE AND ISOLATED AREAS.DIFFICULTIES TO REACH THE POOR.


HOW IT WORKS?HOW IT WORKS?

PNCE-SECTORAL PROGRAMS • CONSIST OF SECTORAL

EMPOWERMENT PROGRAMS• COMPONENTS:

• SECTORAL BLOCK GRANTS (RURAL ROADS, IRRIGATION, ETC)

• EXTENSION SERVICES

PNCE-CORE PROGRAMS (IN 2008)• CONSIST OF:

• KDP: RURAL-BASED COMMUNITY EMPOWERMENT

• UPP: URBAN BASED COMMUNITY• UPP: URBAN-BASED COMMUNITY EMPOWERMENT

• RISE: FAST-GROWTH AREAS COMMUNITY EMPOWERMENT

• COMPONENTS:• COMMUNITY BLOCK GRANTS• FACILITATION, TECHNICAL

ASSISTANCE, TRAINING, LOCAL GOVERNMENT CAPACITY


NPCE CONSOLIDATES 53 POVERTY REDUCTION PROGRAMS IN 22 LINE MINISTRIES.IT WILL BE A UNIFIED SYSTEM OF POVERTY REDUCTIONIT WILL BE A UNIFIED SYSTEM OF POVERTY REDUCTION AND JOBS CREATION BASED IN COMMUNITY DRIVEN DEVELOPMENT APPROACH, TO BE EFFECTIVE IN 2009.2008 IS THE "TRANSITION PERIOD" TO PREPARE PROGRAM CONSOLIDATION AND UNIFICATION.SUPPORTS FROM VARIOUS DONORS INSTITUTIONS INSUPPORTS FROM VARIOUS DONORS INSTITUTIONS IN FORMS OF GRANTS WILL BE PUT IN THE PNCE SUPPORTS FACILITY, UNDER THE RESPONSIBILITY OF GOVERNMENT OF INDONESIA, MANAGED BY FUND MANAGERS THAT WILLOF INDONESIA, MANAGED BY FUND MANAGERS THAT WILL BE DETERMINED LATER.


PROGRAM CONTAINS:A UNIFIED SYSTEM AND MECHANISM1. A UNIFIED SYSTEM AND MECHANISM;

2. A UNIFIED PROGRAM DESIGN; BETTER NATIONALTARGETING OF THE POOREST3. BETTER NATIONALTARGETING OF THE POOREST;

4. DIRECT TRANSFER OF FUNDS; AND INCREASED COMMUNITY BLOCK GRANTS5. INCREASED COMMUNITY BLOCK GRANTS.


THESE PROGRAMS ARE IMPLEMENTED THROUGH FOUR MAJOR FRAMEWORKS :

1 STIMULATING THE QUALITY OF ECONOMIC GROWTH WITH1. STIMULATING THE QUALITY OF ECONOMIC GROWTH WITH SPECIAL EMPHASIS ON THE DEVELOPMENT OF LABOR-INTENSIVE INDUSTRIES, AS WELL AS THE DEVELOPMENT OF MICRO SMALL AND MEDIUM SCALE BUSINESSMICRO, SMALL, AND MEDIUM SCALE BUSINESS.

2. IMPROVING THE POOR COMMUNITY’S ACCESS TO BASIC SERVICES SUCH AS EDUCATION, HEALTHCARE, INCLUDING FAMILY PLANNING FOOD AND NUTRITION AS WELL AS BASICFAMILY PLANNING, FOOD AND NUTRITION, AS WELL AS BASIC INFRASTUCTURE.

3. SCALING–UP COMMUNITY BASED DEVELOPMENT PROGRAMS.4 IMPROVING THE SOCIAL SECURITY SYSTEM BY IMPROVING AID4. IMPROVING THE SOCIAL SECURITY SYSTEM BY IMPROVING AID

AND SOCIAL SUPPORT SYSTEMS FOR POOR HOUSEHOLDS.


THE MAIN CHARACTERISTICS

EACH COMMUNITY GROUP CONSISTS OF 10 TO 15 PERSONS.LOCATION OF ACTIVITIES AT SUB-DISTRICT/VILLAGE LEVEL.

O G O SO / C S OOPRIORITY GIVEN TO ISOLATED/BACKWARD AREAS AND POOR COMMUNITIES.ALIGNING BASIC PRINCIPLES, COMMUNITY-BASED DRIVEN DEVELOPMENT STRATEGIES AND INDICATORSDEVELOPMENT STRATEGIES AND INDICATORS.SYNCHRONIZING PROCEDURES AND MECHANISMS (FINANCING, DISBURSEMENT, TRAINING, PLANNING, COMPLAINT MECHANISM, ETC).)STRENGTHEN THE COMMUNITY INSTITUTION AT THE SUB DISTRICT AND VILLAGE LEVEL .IMPROVE AND DEVELOP THE MANAGEMENT SKILL.STRENGTHENING THE LOCAL GOVERNMENT ROLE IN THE DEVELOPMENT COORDINATION AT THE DISTRICT AND VILLAGE/SUB-DISTRICT LEVEL.


THE CURRENT CONDITIONPROGRAM PROGRAM PROGRAM PROGRAM

PROGRAM MANAGEMENTPROGRAM

FIELD COORDINATION

MANAGEMENT STRUCTURE

PROGRAM MANAGEMENT STRUCTURE

OVERNUMBER IN MEDIATORS

MISDELIVERED

?

??

MISDELIVEREDPROGRAM

OVERLAPPING WITH OTHER PROGRAMS

FIELD COORDINATION

?? ????

GSAPS-2008 www.ginandjar.com 19IGNORED

UNDER NPCE Program

The aid is directly

Program

Program Program

Program

All empo ering s pports

ydelivered to the hand of community so that they

could receive bigger and integrated aid

All

All empowering supports rest under and managed

by “participative community body” which is formed by public itself,

in each village All programs run Similar Norms/crite

ria, standard

Data collection and targeting on the poor

standard, Process,

Procedure and

Guidance Community through

empowering groups conduct NPCE, supporter by Sectoral Empowering Packages (BLM


g g paccuratelyEmpowering Packages (BLM,

facilitator, training etc)

PROGRAM CYCLE:PROGRAM CYCLE:

POLICY AND OPERATIONAL STRATEGY PLANNINGORGANIZATION IN MANAGING TEAM AND IN EACH COMMUNITYBLUEPRINT/DESIGN ON NPCE

SYSTEM MECHANISM CRITERIA PROCESS AND PROCEDURESYSTEM, MECHANISM, CRITERIA, PROCESS AND PROCEDUREGENERAL GUIDANCE AND OPERATIONAL TECHNICAL GUIDANCE

BUDGETINGPREPARATION AND TRAINING OF ASSOCIATE FACILITATORSPREPARATION AND TRAINING OF ASSOCIATE FACILITATORSSOCIALIZATION (COMMUNICATION, INFORMATION AND EDUCATION)IMPLEMENTATIONCONTROLLINGMONITORING AND EVALUATION


DURATION, COVERAGE AND BUDGETINGBUDGETING

NPCE WILL BE CONTINUOUSLY CONDUCTED UNTIL 2015NPCE WILL BE CONTINUOUSLY CONDUCTED UNTIL 2015 ~ IN LINE WITH INDONESIA'S MDGS.COVERAGE:

2007 : 2.827 KECAMATAN OR MORE2008 : 3.800 KECAMATAN OR MORE2009 : 5.263 KECAMATAN

BLOCK GRANT ISSUED IN 2007 AMOUNTS TO RP. 750 MILLION UP TO RP. 1,5 BILLION PER KECAMATAN. STARTING IN 2008, THE AMOUNT WILL BE INCREASED ,TO RP 3 BILLION PER KECAMATANKECAMATAN IS THE SUB-DISTRIC UNIT OF LOCAL GOVERNMENT, UNDER WHICH ARE VILLAGES,


THE SOURCE OF FUNDINGTHE SOURCE OF FUNDING

CENTRAL GOVERNMENT BUDGETCENTRAL GOVERNMENT BUDGETLOCAL GOVERNMENT CONTRIBUTIONS (BASED ON FISCAL CAPACITY 20% FROM LOW-FISCAL CAPACITY REGIONS AND 50% AND ABOVE FOR MEDIUM TO HIGHER FISCAL CAPACITY REGIONS)PRIVATE/CSR CONTRIBUTIONSPRIVATE/CSR CONTRIBUTIONSFINANCING MECHANISM

MULTI DONOR TRUST FUNDUNEARMAKED BUDGET SUPPORT"SOFT EARMARKING"

CO FINANCINGCO-FINANCING, MULTIYEARSFINANCING FOR COMMUNITY BLOCK GRANTS


THE IMPACT ON EMPLOYMENT AND POVERTY REDUCTIONREDUCTION

IMPACT ON EMPLOYMENT: 24 MILLION EMPLOYED.NPCE BENEFITS ARE INCREASINGLY THE RESULT OF GREATER ECONOMIC ACTIVITY NOT OF EMPLOYMENT PROVIDED DIRECTLYPROVIDED DIRECTLY.IMPACT ON THE POOR: 16 MILLION POOR BENEFITED.


NPCE SHOULD PROVIDE 60 DAYS OF SUPPLEMENTALNPCE SHOULD PROVIDE 60 DAYS OF SUPPLEMENTAL EMPLOYMENT TO ABOUT 24 MILLION IN 2009

THE BENEFITS WILL BE ESPECIALLY GREAT BECAUSE THE INCOME AND EMPLOYMENT MADE AVAILABLE INTHE INCOME AND EMPLOYMENT MADE AVAILABLE IN THE SLOW SEASONS FOR AGRICULTURE, CONSTRUCTION, ETC., WHEN MANY POOR PEOPLE ARE DESPERATE TO SUPPLEMENT THEIR INCOME.


EMPLOYMENT GENERATED BY PNPMEMPLOYMENT GENERATED BY PNPM

OF THE 24 MILLION BENEFICIARIES FEWER THAN 500,000 WILL BE SHOWN AS EMPLOYED UNDER THE PROGRAM BECAUSE:

POOR PEOPLE CAN NOT AFFORD TO BE UNEMPLOYED THEYPOOR PEOPLE CAN NOT AFFORD TO BE UNEMPLOYED—THEY MUST HAVE WORK TO EAT. MOST OF THE BENEFICIARIES OF THE PROGRAM WILL BE UNDEREMPLOYED: DURING SOME MONTHS THEY CAN GET WORK ONLY FOR 20 30 HOURS A WEEKTHEY CAN GET WORK ONLY FOR 20-30 HOURS A WEEK.THE UNEMPLOYED, BY CONTRAST ARE MOSTLY EDUCATED MIDDLE CLASS YOUNG PEOPLE WHO WILL NOT TAKE THE LABORERS' JOBS THAT THE PROGRAM OFFERSLABORERS' JOBS THAT THE PROGRAM OFFERS.


THE BIG BENEFITS ARE DUE TO THE GREATERTHE BIG BENEFITS ARE DUE TO THE GREATER ECONOMIC ACTIVITY IT GENERATES, NOT PEOPLE IT HIRES DIRECTLY

ABOUT 60 % OF THE BENEFITS ARE INDIRECT: INCREASED ECONOMIC ACTIVITYECONOMIC ACTIVITY.INDIRECT BENEFITS ARE DUE TO:

THE INCOME "MULTIPLIER" - ADDITIONAL INCOME GENERATED IN THE VILLAGE AS THOSE EMPLOYED BY THE PROGRAM SPEND THEIR MONEY ON FOOD, OTHER GOODS AND SERVICES.THE BIGGER IMPACT IS FROM INVESTMENT IN IMPROVED INFRASTRUCTURE WHICH ALLOWS LOW COST SHIPMENT OF HIGHERINFRASTRUCTURE WHICH ALLOWS LOW COST SHIPMENT OF HIGHER-PRICED COMMODITIES.


SOURCES OF EMPLOYMENT BY NPCE

Direct benefits-million employed by NPCE program itself

Indirect benefits- due to greater economic activity


THE RURAL PROJECTS WERE ESTIMATED TO GENERATE A RATE OF RETURN, AN ANNUAL INCOME AS PERCENT OF INVESTMENT COST, 50 % OF WHICH CONTINUES FOR YEARS WITH MAINTENANCE. IN ADDITION THERE ARE OTHER INDIRECT BENEFITSIN ADDITION THERE ARE OTHER INDIRECT BENEFITS THAT CAN NOT BE MEASURED IN TERMS OF JOBS CREATED AND INCOME INCREASED:

IT HELPS TO KEEP WAGES FOR ALL EVEN NONIT HELPS TO KEEP WAGES FOR ALL, EVEN NON PARTICIPANTS, FROM FALLING TO DISTRESS LEVELS IN THE OFF-SEASON.PNCE CAN SERVE AS A SOCIAL SAFETY NET OR SOCIALPNCE CAN SERVE AS A SOCIAL SAFETY NET OR SOCIAL INSURANCE MECHANISM.


OF THE 16 MILLION POOR WHO WILL BENEFIT:6 5 MILLION WILL BE PULLED OUT OF POVERTY AND6.5 MILLION WILL BE PULLED OUT OF POVERTY AND9.5 MILLION WILL GET INCREASED INCOME OF 10-14% ALTHOUGH MAY NOT ENOUGH TO FULLY14%, ALTHOUGH MAY NOT ENOUGH TO FULLY ESCAPE POVERTY.

SOME 16 MILLION OF THE POOR, 35-45% OF ALL ,POOR, WILL BENEFITS BY 2009


HOWEVER, HOW MANY POOR THERE ARE ALSO DEPENDS AS MUCH OR MORE ONDEPENDS AS MUCH OR MORE ON:

THE PRICE OF RICE AND OTHER BASIC FOODS;THE NUMBER OF JOBS CREATED BY THE RATE OFTHE NUMBER OF JOBS CREATED BY THE RATE OF GROWTH AND HOW LABOR INTENSIVE IT IS;THE EFFECTIVENESS OF THE CONDITIONAL CASHTHE EFFECTIVENESS OF THE CONDITIONAL CASH TRANSFER PROGRAM


OTHER BENEFITSOTHER BENEFITS

IT CAN DEVELOP LOCAL/VILLAGE INFRASTRUCTURE ATIT CAN DEVELOP LOCAL/VILLAGE INFRASTRUCTURE AT A COST 40 % BELOW THAT OF GOVERNMENT PROJECTS. SO IT IS NOT ONLY EFFECTIVE IN REDUCING POVERTY AND INCREASING EMPLOYMENTREDUCING POVERTY AND INCREASING EMPLOYMENT IT IS ALSO EFFICIENT IN DEVELOPING LOCAL INFRASTRUCTURE.


SOME OF THE FUNDS FOR SOCIAL INSURANCES ANDSOME OF THE FUNDS FOR SOCIAL INSURANCES AND SOCIAL SAFETY NET PURPOSES CHOULD ALSO BE INTEGRATED TO NPCE TO PROVIDE MORE EFFICIENT SERVICES.NPCE INCREASES INDONESIAN NATIONAL INCOME ROUGHLY:ROUGHLY:

RP 17 TRILLION [$ 2 BILLION] IN 2009 ANDRP 26 TRILLION IN 2010 [ALMOST $ 3 BILLION] AS A RESULT OF INDIRECT EFFECTS IN STIMULATING THE ECONOMYINDIRECT EFFECTS IN STIMULATING THE ECONOMY.

RP 3-5 TRILLION OR SO WOULD GO TO GOVERNMENT IN INCREASED CONSUMPTION AND OTHER TAXES, WHICH COULD BE USED TO FUND THE PROGRAM IN FUTURECOULD BE USED TO FUND THE PROGRAM IN FUTURE YEARS.


a case study: national community empowerment program (pnce)

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