Decentralized Poverty Reduction Strategy (PRS): Experience from Indonesia

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Decentralized Poverty Reduction Strategy (PRS)
Experience from Indonesia

• May 10, 2005

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Discussion Agenda

• Background
• Process and Outputs
• Links to Local Budget and Policy
• Links to The National PRS
• Lessons Learned
• Whats next?

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Why do a local PRS?
Background

• The National Government started formulating a
  National PRS(1) in 2002, finalized in late 2004.
  
• As a part of the National PRS formulation
  process, Participatory Poverty Assessments (PPAs)
  were conducted in the regions to provide a better
  understanding of the local situation and needs
• In the decentralized environment, the Central
  Government requested Local Governments to prepare
  regional PRS (at provincial and district levels)
  
• Many of the responsibilities for addressing
  multi-dimensional aspects of poverty had been
  devolved to the local level and/or were at the
  minimum a shared responsibility
• Diverse conditions largest poverty numbers on
  Java, but highest incidence off-Java require
  local poverty diagnosis at local level
• With decentralized planning and budgeting
  process, it would be more strategic to influence
  policies and budget at local level

(1) Official title of Indonesian PRS is National
Strategy for Poverty Reduction. However, we use
a more generic term National PRS in this
document.
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ILGR in the context of local PRS
Background

• At the same time the Bank started preparing the
  Initiatives for Local Governance Reform (ILGR)
  Project
• The project aims to improve local governance and
  to reorient local governments to be more
  pro-poor. In addition to capacity building and
  technical assistance to support governance
  reform, the project has an investment component
  to demonstrate reforms through project
  implementation
• Rationale for ILGR to support local PRS
  formulation
• Help National Govt develop a model for locally
  conducted PPAs and PRS formulation (never done
  before!)
• Local PRS formulation is a pilot for ILGR
  districts to implement a participatory process in
  local policy formulation
• Local PRS will support the improvement of annual
  planning and budgeting process which is one of
  ILGRs key reform areas
• Pragmatic ILGR needs to identify sub-projects
  for investment in a participatory manner (through
  PPA)

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Who? When?
Background

• Who has been preparing the local PRS?
• A multi-stakeholder working group with members
  from LG officials, local parliament members, NGO
  and community representatives ? voluntary work!
• How does ILGR support them?
• 1 general facilitator for each district
• Training and workshops (at local or regional
  level)
• Backstopping from national consultants (1 covers
  5-6 districts)
• When?
• March 2003-December 2004

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Where? 15 districts in 9 provinces in Indonesia
(Sumatera, Java and Sulawesi)
Tanah Datar
Bolaang Mongondow
Boalemo
Solok
Cluster E
Cluster A
Cluster F
Bandung
Gowa
Bulukumba
Cluster B
Magelang
Takalar
Ngawi
Lebak
Majalengka
Lamongan
Kebumen
Bantul
Cluster C
PRSAP DISTRICT
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Local Poverty Reduction Strategy and Action Plan
(PRSAP) Formulation Framework
Process and Outputs
PHASE 4 Institutionalization
PHASE 3 Strategy Action Plan Formulation
PHASE 2 Assessment and Analyses
PHASE 1 Preparation

• Public meeting (multi-stakeholders forum) to
  establish Poverty Working Group (PWG)
• Legalization of PWG
• Preparation of work plan

• Preliminary Analysis of district poverty
  (secondary data)
• Public consultation on Preliminary Analysis and
  Selection of Sites
• PPA in selected sites (based on typology of
  poverty)
• Analysis to formulate Problem Statements
• Public consultation on Problem Statements

• Formulation of PRS
• Public consultation on the Strategy
• Formulation of Action Plan
• Public consultation on the Action Plan and
  overall PRSAP

• Legalization of PRSAP (through District Head
  Decree or Local Regulation)
• Implementation of PRSAP through local planning
  and budgeting mechanism

Training/ workshop backstopping
Training/ workshop backstopping
Training
Workshop Backstopping
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Social Inclusion the Poor were involved in the
process
Process and Outputs
I was involved in community meetings, this
is my first time to be invited to attend a
meeting. I have never been asked to attend any
village meetings said the poor seaweed farmer in
Bantaeng village
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Opening Public Arena for Poverty Debate
Process and Outputs
The poor from all typology cluster attended
public consultation in Gowa district. Their work
and opinions are shown in this meeting. They
participated in group discussions and debated
some statements. One man said that education for
his children is high because teachers asked
student to buy new books many times. The teacher
argued they did this because their salary is not
enough. The poor responded that they have to find
other ways to increase salary but not to add
burden to the poor.
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Women were Involved in the Process
Process and Outputs
We were involved in community meetings, we were
asked our opinions, we like it, according to the
women in one of the poorest village in Bulukumba
district.
Lia, a member of poverty working group gave a
PRSAP presentation in front of 150 participants
in Gowa district public consultation
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PRSAP outputs and outcomes
Process and Outputs

• 15 districts have finalized the PRSAP 8 of
  which have already been legalized through
  District Head (Bupati) Decree, which has budget
  implications
• Starting in 2005 budgeting process, PRSAP is one
  of the references ? Lets see how this will
  influence the budgetto be monitored
• Space established to allow non-government
  stakeholders to interact with the executive and
  legislative and, more importantly, to influence
  decision making process
• Build local stakeholders (particularly govt
  official) capacity in participatory process. On
  the other hand, gives opportunities for the poor
  (incl. women) to participate in district-level
  policy formulation
• The 15 districts get recognition from Central and
  Provincial Government, other donors, and other
  stakeholders (e.g., resource persons to share
  experiences in workshop/training, local
  government officials promoted and elected as
  local parliament members)
• Results of PRSAP process feed into National PRS

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How is the PRSAP reflected in Local Budgeting?
Links to Local Budget and Policy
Med-term Planning
Annual Planning and Budgeting
Village Planning Discussion
Sub-district Planning Discussion
Kabupaten Planning Discussion
Budgeting (Executive)
5-year Regional Devt Strategic Plan
Technical Agencies Programming
Parliament Budget Approval
PRSAP
Legend
regular process
ILGR intervention
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Example FY 2006 Budget of Kabupaten Magelang
Links to Local Budget and Policy
Agriculture Office Total (Rp)
Producing high quality seeds to increase agriculture productivity 90,005,000
Providing credits for small farmers 340,000,000
Infrastructure
Development / rehabilitation of irrigation 1,500,000,000
Water supply for poor areas 3,250,000,000
Empowerment of water users associations 950,000,000
Health
Training for health providers (midwives, paramedics, doctors) 150,000,000
Providing subsidy for poor people (not included in the insurance program)
- Medicines 290,000,000
- Family Planning 593,000,000
- Out patients 2,579,640,000
- In patients 2,500,000,000
Increasing role of community institutions (sub-district and village level) 96,104,000
Providing operational cost for family planning extension workers 61,050,000
T o t a l (Rp) 12,399,799,000
Public budget (Rp) 109,672,839,000
Percentage PRSAP 11
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Local policy view of the poor starts being
accommodated
Links to Local Budget and Policy

• Education
• More incentives for teachers working in isolated
  areas (Bulukumba)
• Land
• Participatory local regulation formulation on
  spatial planning that protects communities
  interest (Bulukumba, Ngawi, Bolaang Mongondow)
• Environment
• Formulation of local regulation and law
  enforcement on river pollution (Bolaang
  Mongondow, Bandung)
• Formulation of local regulation on forest
  management (Lamongan)
• Access to capital
• Policy formulation on the poors access to
  capital (Bulukumba)

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How Local PRSAPs feed into National PRS?
Links to National PRS

• Involvement of National PRS Formulation
  Secretariat in ILGRs PRSAP related activities
• The issues identified in the PPAs and PRSAPs are
  compiled and conveyed by ILGR National
  Secretariat to the National PRS Secretariat.
• Study by SMERU (supported by JICA) compiling and
  summarizing all ILGR Kabupatens PPAs to be
  presented to the National PRS Secretariat
• Direct meetings between local governments and
  National PRS Secretariat (e.g., through
  Bappenas-WB-GTZ-USAID supported poverty workshop)

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Examples of ILGR findings included in National PRS
Links to National PRS
EXAMPLES
National PRS 10 Rights
Findings from ILGR District PRSAPs

• Access to Food
• Access to Basic Health Services
• Access to Education
• Access to Job Opportunities and Business
  Development
• Access to Housing and Sanitation
• Access to Safe Water
• Access to Land Ownership
• Access to Natural Resources
• Access to Security
• Access to Participation

• High cost of medication and insufficient supply
  of health cards (to get free health services)
• Lack of incentive policy for health workers
  working in poor and isolated areas

• High transportation costs to go to school
• High costs of school uniforms and books

• Water springs damaged by logging
• Lack of policy to protect water springs

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General weaknesses of the PRSAPs
Lessons Learned

• Tendency to cover everything, difficult to
  prioritize
• Not enough details in action plans
• Difficult to maintain logical links from finding,
  analysis, strategy and action plans needs
  continued feedback
• Method to analyze district level data
  (quantitative and qualitative) and to link it to
  community level findings need to be strengthened
  and simpler
• Need to improve methodology in gender analysis

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What we learned from the process?
Lessons Learned

• District-level stakeholders have capacity to
  formulate local PRSAP in participatory manner and
  are willing to work voluntarily as long as they
  get right facilitation and support
• PRSAP formulation process took almost 2 years
  (!). Despite trial and error exercise,
  participatory policy formulation practices need
  time.
• Need to prioritize (and simplify) the tools and
  methodology in conducting PPA and formulating
  PRSAP
• Pre-commitment from the heads of local executive
  and legislative is extremely important. Not only
  to support the formulation (e.g., staff and
  budget), but, more importantly, is the will to
  implement PRSAP through budgets
• Learning from other districts is more effective
  and needs technical facilitation to allow for a
  well structured learning process
• Sustainable implementation of PRSAP needs minimum
  level of good governance
• Timing is critical the beginning of the head of
  districts and local parliaments period is the
  best time to formulate PRSAP

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Looking forward
Whats next?

• Use of local PRSAP formulation framework, manuals
  and training/ workshop modules in other regions,
  as well as district-level knowledge
• Policy dialogue in resolving local-level poverty
  issues which are a part of national government
  mandate (e.g., public forest area utilization)
• ILGR will
• Continue facilitating districts to implement
  PRSAPs
• Monitor and evaluate the implementation of PRSAPs
  (e.g., whether the pro-poor budget portion
  increases?)
• Enhance participatory planning and budgeting
  process
• Support cross-district learning