The Politics of Poverty: Issues, Ideas and Actors

Transcription

1 The Politics of Poverty: Issues, Ideas and Actors Ari Perdana (TNP2K, Jakarta) and John Maxwell (Canberra) Forum Kajian Pembangunan LPEM FEUI Jakarta, 19 April 2011 Contact:

2 The story line Government s approach towards policy alleviation has changed: from general economic development policies in the past to more targeted policies More due to necessity (crisis); partly reflecting the change in the global discourse Democracy, openness has brought poverty from a merely restricted, academic discourse to a significant political issue Some are voice, much to do about noise Still a gap between technocratic and political sphere The effectiveness of policies are constrained by coordination and bureaucratic bottlenecks 2

3 Outline The evolution of poverty alleviation poverty The evolution of poverty discourse The bureaucracy and coordination issues 3

4 The evolution of policy orientation In the past there was no or relatively few policies targeted to the poor. The strategy was to deliver a broad economic growth policies, combined with rural infrastructure building While such approach was quite successful in reducing poverty, many poor has been excluded from the development outcomes. The economic crisis showed how the lack of social safety net and insurance policies left the poor exposed to economic shock More targeted programs and attempts to build social insurance after the crisis 4

5 Policies in the past New Order: Most efforts were mainly non-targeted (general price subsidies) Or through rural development (BIMAS, KUK, massive school and health facilities building) Later, targeted to regions (IDT) Crisis: Targeted but reactive measures under the JPS umbrella Urged by the crisis; to keep consumption level of the poor Padatkarya, Raskin, health card, scholarships 5

6 Policies after the crisis October 2000 fuel price increase Fuel subsidy reduction compensation program (PKPS-BBM): cash transfer, cheap rice, scholarships, health card, health services for poor households October 2005 fuel price increase Cash transfer (BLT), school operational funds (BOS), health insurance for the poor (Askeskin) Three (four?) clusters of poverty alleviation programs Household-based: PKH, Jamkesmas, scholarships Community-based: PNPM (lots of them; previously KDP, UPP, SPADA) SME-based: currently KUR Other programs: proposed cheap housing, fishermen livelihood 6

7 Outline The evolution of poverty alleviation poverty The evolution of poverty discourse The bureaucracy and coordination issues 7

8 The evolution of discourse Poverty started to be discussed intensively in the late 80s early 90s Mainly restricted academic discussion. Coincide with the high economic growth era; growing interests on how the benefits of economic growth was distributed Technical discussion of poverty have been more advanced nowadays The availability of surveys, poverty map, measurement techniques, research methods, international experience At the same time it has also become a significant policy issue But there is a gap between technocratic and political discourse, even between the technocratic and pure bureaucratic ones 8

9 The technocrats, bureaucrats and politicians gap Poverty statistics: which one (national, $1, $2)? From statistics of poverty to identifying the poor Understanding incentives to politicians Why attention to BLT has been disproportionate (as opposed to, i.e. Jamkesmas, PKH)? How do we explain danaaspirasi and danadesa proposal? Local-level incentives (local vscentral government programs) Jamkesnasand the proposed national security system Lack of political will or technically the current proposal is just not feasible and sustainable? 9

10 BLT was covered by media much more than Raskin and Jamkesnas Source: MediaTrac,

11 Outline The evolution of poverty alleviation poverty The evolution of poverty discourse The bureaucracy and coordination issues 11

12 What proportion of government expenditure is being allocated for social assistances? 1200 Central govt spending (Rp trillion) r 2011p Fuel & electricity subsidies Social assistances Transfers to region Non-energy subsidies Other central govt exp Source: Ministry of finance 12

13 But size of budget is not the thing that matters (education budget, remember?) Bureaucracy is still a big hurdle for delivering quality public services effective social assistances The role of TNP2K? Capacity, or more of the mindset? Coordination issues Among central government agencies Central-provincial-district relationships Budget issues Cycle Channels to direct and allocate resources Audit and evaluation process 13

14 Coordination issues in the central Why coordination is difficult? Mindset? Project-oriented? Institutional rivalry? Leadership? PNPM: SBY s flag program (since JK and ARB era) An evolution of KDP and UPP, now PNPM-rural and PNPM- urban, the core PNPM PNPM spin-offs : PNPM pertanian, perikanan, etc. Issues: integration, exit strategy PKH: the conditional cash transfer Involves M.ofSocial Affairs, Education, Health, Religious Affairs. Case: PKH and scholarships for the poor 14

15 Decentralization, budget and bureaucracy District governments are the frontline of public services Capacity issues, local politics Relationship with the higher level governments Fiscal process is not fully decentralized, Current budget cycle creates lags and bottlenecks High power at the district government, but lack of instruments to reach villages and people Performance evaluation Auditing process emphasis on physical output Monitoring-evaluation, performance-based budgeting? 15

16 Concluding remarks Much about poverty is obvious enough (Sen1981). The main question: what are the best strategies? Approaches to poverty have evolved over time. The government is moving towards more targeted and longerterm social assistance measures. Politics and political institutions under a more democratic and decentralized Indonesia provide opportunities as well as constraints. 16