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(1)

Inclusive Development: Can We improve

Service Delivery to the Poor?

!

Hotel Grand Hya-, Nusa Dua - Bali 10-11 December 2015

Presented by:!

Scott Guggenheim!

(2)

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!

(3)

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!

(4)

Kondisi Saat Ini: Nasional

40% Masyarakat Termiskin

4

Iden%tas hukum Kesehatan Pendidikan Air, sanitasi,

perumahan

(5)

Total transfers to villages are becoming very large

Trends (trillion rupiah) !

0! 45! 90! 135! 180!

2014! 2015! 2016! 2017! 2018! 2019!

(6)

Potential for Villages to

Manage Basic Services is High

Village Servce

National Cost Estimates ((IDR)trillion)

Early Childhood

(7)

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

(8)

But the institutional capacities to spend

funds well are still underdeveloped

!

Fragmentation in Jakarta (MOHA, MoV, Bappenas,

MoF)!

Unclear spending responsibilities!

(9)

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

(10)

And local level rigidities

!

Funding goes to districts but spending is at

facilities.!

Unclear status and roles for kecamatans and

village governments.!

(11)

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!

(12)

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

(13)

What to fix: longer-term

!

The Frontline Model: enabling facility level

performance management.!

Increasing competition and choice in service

provision.!

(14)

CONCLUSIONS

Local service delivery for poverty reduction is

increasingly bimodal

Experiences with community partnerships is

positive

Availability of resources is not the primary

constraint

Potential for improvement is high, but

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