Inclusive Development: Can We improve
Service Delivery to the Poor?
!
Hotel Grand Hya-, Nusa Dua - Bali 10-11 December 2015
Presented by:!
Scott Guggenheim!
Indonesia has a good story
to tell
!
• Top-level commitment!
• Long history of innovative, positive action!
• Significant poverty investments through social
protection and insurance, block grants for health and education, and Village Law!
But this should not gloss
over real world problems:
!
• Rising inequality (a top government concern)!
• Poor line agency performance/misaligned
incentives for delivery!
• Low quality services!
• High rates of perceived and real official corruption!
Kondisi Saat Ini: Nasional
40% Masyarakat Termiskin
4
Iden%tas hukum Kesehatan Pendidikan Air, sanitasi,
perumahan
Total transfers to villages are becoming very large
Trends (trillion rupiah) !
0! 45! 90! 135! 180!
2014! 2015! 2016! 2017! 2018! 2019!
Potential for Villages to
Manage Basic Services is High
Village Servce
National Cost Estimates ((IDR)trillion)
Early Childhood
And there is a track record
of innovative uses
!
• TNP2K community targeting RCT found low cost,
high legitimacy when combining community
verification of targeting for HH poverty transfers.!
• Village-built infrastructure costs up to 50% less.!
• Community participation in service delivery
But the institutional capacities to spend
funds well are still underdeveloped
!
• Fragmentation in Jakarta (MOHA, MoV, Bappenas,
MoF)!
• Unclear spending responsibilities!
Fragmentation in Jakarta
!
• Despite vast sums, nobody obviously in charge!
• Dysfunctional divisions between MOHA, MOV, and
Bappenas.!
• Ongoing lack of oversight or credible reporting!
• Unclear guidance or preparation for village
And local level rigidities
!
• Funding goes to districts but spending is at
facilities.!
• Unclear status and roles for kecamatans and
village governments.!
What to fix: short-term
!
• Who is in charge (if anyone) — role of MoF?!
• Allocation criteria!
• Clarifying roles and building capacities for districts,
provinces, village governments!
Responsive
FRONTLINE FRONTLINE
Account ability Community
empowerment
Access and quality
Governance
Feedback, analysis, ac/on
Feedback, analysis, ac/on
Feedback, analysis, ac/on
Frontline service delivery
mechanism
What to fix: longer-term
!
• The Frontline Model: enabling facility level
performance management.!
• Increasing competition and choice in service
provision.!
