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A CASE STUDY: NATIONAL COMMUNITY EMPOWERMENT PROGRAM (PNCE)
 

A CASE STUDY: NATIONAL COMMUNITY EMPOWERMENT PROGRAM (PNCE)

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Graduate School of Asia and Pacific Studies University of Waseda, Tokyo-JAPAN 2008

Graduate School of Asia and Pacific Studies University of Waseda, Tokyo-JAPAN 2008

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    A CASE STUDY: NATIONAL COMMUNITY EMPOWERMENT PROGRAM (PNCE) A CASE STUDY: NATIONAL COMMUNITY EMPOWERMENT PROGRAM (PNCE) Presentation Transcript

    • PUBLIC ADMINISTRATION: CONCEPTS AND PRACTICE X. NATIONAL COMMUNITY EMPOWERMENT PROGRAM (PNCE) A CASE STUDY Graduate School of Asia and Pacific Studies University of Waseda, Tokyo-JAPAN 2008
    • CONTENTS INDONESIA S INDONESIA’S MAIN POVERTY ISSUES GOALS: ALIGNMENT OF KEY GOVERNMENT PRIORITIES WITH MDGs COMMUNITY EMPOWERMENT WHAT IS NPCE? WHY NPCE? HOW IT WORKS? DURATION, COVERAGE AND BUDGETING THE SOURCE OF FUNDING THE IMPACT ON EMPLOYMENT AND POVERTY REDUCTION GSAPS-2008 www.ginandjar.com 2
    • INDONESIA’S MAIN POVERTY ISSUES LARGE NUMBER OF POOR MACRO STATISTICS (BASED ON SUSENAS, MARCH 2007): 37.17 MILLION PEOPLE LIVE UNDER POVERTY LINE (16.58% OUT OF 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 POOR. POOR, 69 POOR LOW QUALITY OF HUMAN RESOURCES HIGH NUMBER OF CHILDREN AT THE LOWEST QUINTILE ARE Q DROP-OUTS. PARTICIPATION RATE AT JUNIOR HIGH SCHOOL OF THE LOWEST QUINTILE IS ONLY 70%. 70% GSAPS-2008 www.ginandjar.com 3
    • INDONESIA’S MAIN POVERTY ISSUES INDONESIA S MATERNAL MORTALITY, ESPECIALLY OF THE LOWEST 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 42 000 VILLAGES GROM THE TOTAL NUMBER OF VILLAGES IN INDONESIA OF 77,000 VILLAGES ARE CATEGORIZED AS POOR VILLAGES. VILLAGES GSAPS-2008 www.ginandjar.com 4
    • GOALS: ALIGNMENT OF KEY GOVERNMENT PRIORITIES WITH MDG MDGs INDICATORS/TARGET (%) 2002 2009 MDGs ACTUAL TARGETS 2015 TARGETS Poverty Population below US$ 1 a day 7.2 10.3 Poverty head-count ratio 18.2 8.2 7.5 Health Under 5 mortality rate (per 1,000 live births) 60 26 (,1 33 mortality) Maternal mortality ratio (per 100,000 live births) 307 226 105 Education Net enrollment rate in primary education 92.7 99.6 100 Gross and net enrollment rate at junior level 79.7 98 Literacy rate of 15-24 y.o 98.7 100 Water & Sanitation f l h h % of population that has access to improved d 78 80 water Rural Development Agricultural sector growth 35 GSAPS-2008 www.ginandjar.com 5
    • COMMUNITY EMPOWERMENT A BASE FOR NATION BUILDING Building community capacity as social capital Providing economic capital Enhancing social Through Community Block entrepreneurship at community Grants/BLM level through facilitators/community leaders GSAPS-2008 www.ginandjar.com 6
    • COMMUNITY EMPOWERMENT AIMS AT CREATING AND ENHANCING COMMUNITY CAPACITY TO EFFECTIVELY OVERCOME VARIOUS DEVELOPMENT PROBLEMS FACED BY THE COMMUNITIES. GSAPS-2008 www.ginandjar.com 7
    • POVERTY REDUCTION THROUGH COMMUNITY EMPOWERMENT RESPONSIVE GOVERNMENT/EMPOWERED COMMUNITIES Strengthening bottom-up planning and budgeting; Improving local government representation and responsiveness; Improving social service delivery to the poor; Pro-poor planning and budgeting P l i d b d ti Market linkages Social Protection Non-bank and Women’s participation ’ microfinance Justice for the poor SADI (smallholder dvpt) Helping marginal groups Information technology Budget transparency Renewable energy BLOCK GRANT Community trust funds TRANSFER TO Sustainability THE POOR GSAPS-2008 www.ginandjar.com 8
    • COMMUNITY EMPOWERMENT MAIN ACTIVITIES TRAIN THE COMMUNITIES IN IDENTIFICATION, ANALYSIS AND DECISION MAKING PROCESS TO TACKLE THEIR POVERTY PROBLEMS CREATE/EXPAND SMALL SCALE INFRASTRUCTURES AND COMMUNITY ECONOMIC PRODUCTIVITIES. INCREASE COMMUNITY CAPABILITY AND SELF-HELP TO ACHIEVE BETTER STANDARD OF LIVING GSAPS-2008 www.ginandjar.com 9
    • EMPOWERMENT PROCESS GSAPS-2008 www.ginandjar.com 10
    • WHAT IS NPCE? NPCE 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 SUSTAINABILITY COMMUNITY DRIVEN EMPOWERMENT PHASES: EMPOWERMENT LEARNING PROCESS EMPOWERED COMMUNITY SELF-HELP COMMUNITY. TRANSFORMING COMMUNITY RESOURCES INTO SOCIAL/ECONOMIC CAPITAL GSAPS-2008 www.ginandjar.com 11
    • 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. GSAPS-2008 www.ginandjar.com 12
    • WHY NPCE? THERE HAVE BEEN DIFFERENT KINDS OF POVERTY ERADICATION ACTIVITIES WITHIN MINISTRIES/INSTITUTIONS CREATING INEFFICIENCY AND OVERLAPPING ACTIVITIES, MECHANISMS, COMMUNITY S COMMUNITY'S INSTITUTIONS NEED HARMONIZATION. IMPERFECT MARKET, ESPECIALLY IN MEETING , PEOPLE’S NEEDS IN REMOTE AND ISOLATED AREAS. DIFFICULTIES TO REACH THE POOR. GSAPS-2008 www.ginandjar.com 13
    • 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 URBAN-BASED EMPOWERMENT • RISE: FAST-GROWTH AREAS COMMUNITY EMPOWERMENT • COMPONENTS: • COMMUNITY BLOCK GRANTS • FACILITATION, TECHNICAL ASSISTANCE, TRAINING, LOCAL GOVERNMENT CAPACITY GSAPS-2008 www.ginandjar.com 14
    • NPCE CONSOLIDATES 53 POVERTY REDUCTION PROGRAMS IN 22 LINE MINISTRIES. IT 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 quot;TRANSITION PERIODquot; TO PREPARE PROGRAM CONSOLIDATION AND UNIFICATION. SUPPORTS 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 WILL BE DETERMINED LATER. GSAPS-2008 www.ginandjar.com 15
    • PROGRAM CONTAINS: 1. A UNIFIED SYSTEM AND MECHANISM MECHANISM; 2. A UNIFIED PROGRAM DESIGN; 3. BETTER NATIONALTARGETING OF THE POOREST POOREST; 4. DIRECT TRANSFER OF FUNDS; AND 5. INCREASED COMMUNITY BLOCK GRANTS. GRANTS GSAPS-2008 www.ginandjar.com 16
    • THESE PROGRAMS ARE IMPLEMENTED THROUGH FOUR MAJOR FRAMEWORKS : 1. 1 STIMULATING THE QUALITY OF ECONOMIC GROWTH WITH SPECIAL EMPHASIS ON THE DEVELOPMENT OF LABOR- INTENSIVE INDUSTRIES, AS WELL AS THE DEVELOPMENT OF MICRO, SMALL MICRO SMALL, AND MEDIUM SCALE BUSINESS. BUSINESS 2. IMPROVING THE POOR COMMUNITY’S ACCESS TO BASIC SERVICES SUCH AS EDUCATION, HEALTHCARE, INCLUDING FAMILY PLANNING FOOD AND NUTRITION AS WELL AS BASIC PLANNING, NUTRITION, INFRASTUCTURE. 3. SCALING–UP COMMUNITY BASED DEVELOPMENT PROGRAMS. 4. 4 IMPROVING THE SOCIAL SECURITY SYSTEM BY IMPROVING AID AND SOCIAL SUPPORT SYSTEMS FOR POOR HOUSEHOLDS. GSAPS-2008 www.ginandjar.com 17
    • THE MAIN CHARACTERISTICS EACH COMMUNITY GROUP CONSISTS OF 10 TO 15 PERSONS. LOCATION OF ACTIVITIES AT SUB-DISTRICT/VILLAGE LEVEL. O G O SO PRIORITY GIVEN TO ISOLATED/BACKWARD AREAS AND POOR / C S OO COMMUNITIES. ALIGNING BASIC PRINCIPLES, COMMUNITY-BASED DRIVEN DEVELOPMENT STRATEGIES AND INDICATORS 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. GSAPS-2008 www.ginandjar.com 18
    • THE CURRENT CONDITION PROGRAM PROGRAM PROGRAM PROGRAM PROGRAM PROGRAM MANAGEMENT OVERNUMBER MANAGEMENT STRUCTURE IN MEDIATORS STRUCTURE FIELD COORDINATION ? MISDELIVERED PROGRAM ?? FIELD COORDINATION OVERLAPPING WITH OTHER ?? PROGRAMS ?? ?? IGNORED GSAPS-2008 www.ginandjar.com 19
    • UNDER NPCE Program Program Program Program Program The aid is directly y delivered to the hand of community so that they could receive bigger and integrated aid All empowering supports empo ering s pports 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, standard Process, Community through Procedure empowering groups conduct and Data collection and Guidance NPCE, supporter by Sectoral targeting on the p g g poor Empowering Packages (BLM (BLM, accurately facilitator, training etc) GSAPS-2008 www.ginandjar.com 20
    • PROGRAM CYCLE: POLICY AND OPERATIONAL STRATEGY PLANNING ORGANIZATION IN MANAGING TEAM AND IN EACH COMMUNITY BLUEPRINT/DESIGN ON NPCE SYSTEM, MECHANISM, CRITERIA, SYSTEM MECHANISM CRITERIA PROCESS AND PROCEDURE GENERAL GUIDANCE AND OPERATIONAL TECHNICAL GUIDANCE BUDGETING PREPARATION AND TRAINING OF ASSOCIATE FACILITATORS SOCIALIZATION (COMMUNICATION, INFORMATION AND EDUCATION) IMPLEMENTATION CONTROLLING MONITORING AND EVALUATION GSAPS-2008 www.ginandjar.com 21
    • DURATION, COVERAGE AND BUDGETING NPCE WILL BE CONTINUOUSLY CONDUCTED UNTIL 2015 ~ IN LINE WITH INDONESIA'S MDGS. COVERAGE: 2007 : 2.827 KECAMATAN OR MORE 2008 : 3.800 KECAMATAN OR MORE 2009 : 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 KECAMATAN KECAMATAN IS THE SUB-DISTRIC UNIT OF LOCAL GOVERNMENT, UNDER WHICH ARE VILLAGES , GSAPS-2008 www.ginandjar.com 22
    • THE SOURCE OF FUNDING CENTRAL GOVERNMENT BUDGET LOCAL 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 CONTRIBUTIONS FINANCING MECHANISM MULTI DONOR TRUST FUND UNEARMAKED BUDGET SUPPORT quot;SOFT EARMARKINGquot; CO-FINANCING, CO FINANCING MULTIYEARSFINANCING FOR COMMUNITY BLOCK GRANTS GSAPS-2008 www.ginandjar.com 23
    • THE IMPACT ON EMPLOYMENT AND POVERTY REDUCTION IMPACT ON EMPLOYMENT: 24 MILLION EMPLOYED. NPCE BENEFITS ARE INCREASINGLY THE RESULT OF GREATER ECONOMIC ACTIVITY NOT OF EMPLOYMENT PROVIDED DIRECTLY DIRECTLY. IMPACT ON THE POOR: 16 MILLION POOR BENEFITED. GSAPS-2008 www.ginandjar.com 24
    • NPCE 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 IN THE SLOW SEASONS FOR AGRICULTURE, CONSTRUCTION, ETC., WHEN MANY POOR PEOPLE ARE DESPERATE TO SUPPLEMENT THEIR INCOME. GSAPS-2008 www.ginandjar.com 25
    • EMPLOYMENT 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 THEY 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 WEEK. 20 30 WEEK THE UNEMPLOYED, BY CONTRAST ARE MOSTLY EDUCATED MIDDLE CLASS YOUNG PEOPLE WHO WILL NOT TAKE THE LABORERS' JOBS THAT THE PROGRAM OFFERS. OFFERS GSAPS-2008 www.ginandjar.com 26
    • THE 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 ACTIVITY ACTIVITY. INDIRECT BENEFITS ARE DUE TO: THE INCOME quot;MULTIPLIERquot; - 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 HIGHER- HIGHER PRICED COMMODITIES. GSAPS-2008 www.ginandjar.com 27
    • SOURCES OF EMPLOYMENT BY NPCE Direct benefits- million employed by NPCE program itself Indirect benefits- due to greater economic activity GSAPS-2008 www.ginandjar.com 28
    • 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 BENEFITS THAT CAN NOT BE MEASURED IN TERMS OF JOBS CREATED AND INCOME INCREASED: IT HELPS TO KEEP WAGES FOR ALL, EVEN NON ALL PARTICIPANTS, FROM FALLING TO DISTRESS LEVELS IN THE OFF-SEASON. PNCE CAN SERVE AS A SOCIAL SAFETY NET OR SOCIAL INSURANCE MECHANISM. GSAPS-2008 www.ginandjar.com 29
    • OF THE 16 MILLION POOR WHO WILL BENEFIT: 6.5 6 5 MILLION WILL BE PULLED OUT OF POVERTY AND 9.5 MILLION WILL GET INCREASED INCOME OF 10- 14%, 14% ALTHOUGH MAY NOT ENOUGH TO FULLY ESCAPE POVERTY. SOME 16 MILLION OF THE POOR, 35-45% OF ALL , POOR, WILL BENEFITS BY 2009 GSAPS-2008 www.ginandjar.com 30
    • HOWEVER, HOW MANY POOR THERE ARE ALSO DEPENDS AS MUCH OR MORE ON: ON THE PRICE OF RICE AND OTHER BASIC FOODS; THE NUMBER OF JOBS CREATED BY THE RATE OF GROWTH AND HOW LABOR INTENSIVE IT IS; THE EFFECTIVENESS OF THE CONDITIONAL CASH TRANSFER PROGRAM GSAPS-2008 www.ginandjar.com 31
    • OTHER BENEFITS IT 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 EMPLOYMENT IT IS ALSO EFFICIENT IN DEVELOPING LOCAL INFRASTRUCTURE. GSAPS-2008 www.ginandjar.com 32
    • SOME 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: RP 17 TRILLION [$ 2 BILLION] IN 2009 AND RP 26 TRILLION IN 2010 [ALMOST $ 3 BILLION] AS A RESULT OF INDIRECT EFFECTS IN STIMULATING THE ECONOMY 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 FUTURE YEARS. GSAPS-2008 www.ginandjar.com 33