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Multistakeholder Forestry Programme
State building in Indonesia:
An aid instrument to support governance reforms
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
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
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
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
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
Scale of intervention
• over 220 partners, range of partners and roles
Local NGOs
Farmers unions, Women’s groups …
Media
National Ministry
Universities
Local governments
Research organisations
Nat / Intl NGOs
Adat federations
Community development
Local parliaments
Networking
Watchdog
TrainingAdvocacy
Research
Marketing
Grant-making
Working at local level (e.g. Sulawesi)
-Poverty analysis, conflict mediation, informal justice
-Social mobilisation, farmers’ associations
-Demonstration of negotiated settlements
-Multistakeholder Forum negotiating rights
-District regulations setting rights
-Communication forum
-Advocacy network
-Market development
-Policy analysis, shared learning
-Press network
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
Staff Salaries 17%
Partnership Grants 61%
Value added 16%
Consultants 2%Offi ce Running Cost 4%
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
MFP facts and figures - partners
Types of grantee: number of grants (2000-2005)
Provincial government 3%
Local NGO 48%
National NGO 17%
International NGO 5%
Individual 4%
District government 3%
Central government 8%
Private sector 1%People's Organisation
5%
University / research institute 6%
MFP facts and figures - regions
Number of grants to regions
Sumatra9%
Sulawesi13%
Nusa Tenggara10%
Papua4%
Kalimantan16%
Java10%
National38%
MFP facts and figures – grantees
Types of NGOs: no. of grants
Research 12%
Networking 17%
Marketing 2%
Grant-making 1%
Community development 50%
Training 5%
Advocacy 13%
● changing attitudes● changing policies● changing the rules of the game● building skills and capacity
Governance impacts
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
● increased voice● reduced vulnerability● more transparent, accountable
government● better incomes
Poverty impacts – changing lives
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
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
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