Transcript Indonesia Jobs Report - PNPM Support Facility (PSF)

Community Driven Development:
The Experience of PNPM
When unleashing the power of communities, what happens next?
Jan Weetjens
Social Development Sector Coordinator
Indonesia
February 25, 2011, 12:00 PM
Knowledge Series – Emerging Indonesia
MC3-101
The World Bank, Washington DC
The Central Idea
Empowering
communities to…
Determine their own
development priorities
Provide resources directly
for community decision and
control
Take charge of
implementation
Hold authorities accountable
to ensure better
development results
Key Premises
 To the extent communities are well
informed, they are best placed to
determine their development
priorities
 But don’t underestimate the need for
information
 For those areas that have sufficient
capacity, communities are best
placed to implement
 But don’t underestimate the extent of
the capacity of many communities
 Direct control of communities over
resources contributes to better
governance
 But don’t underestimate challenge of
capture by local elites
 Those who deliver services perform
best when they are (also)
accountable to beneficiaries
 But don’t underestimate the challenge
of realigning incentives for service
providers
Cluster of PNPM Programs
PNPM
Mandiri
PNPM
Urban
US$
915 m
Pilots:
• Generasi (3 MDGs)
• Green
• R2PN
•J4P
PNPM*
Rural
US$
3.1 b
SPADA
US$
104 m
RIS
US$
134.2 m
Local Programs:
• RESPEK (Papua)
• BKPG (Aceh)
PNPM-Rural now cover 75% (5000) of total sub-districts covered by PNPN (6600). 80% of the total
budget is for PNPM-Rural.
RISE
US$
252.2 m
SPADA: Support for Poor and
Disadvantaged Areas
RIS: Rural Infrastructure Support
RISE: Regional Infrastructure for
Social and Econ. Dev
R2PN: Rehabilitation &
Reconstruction Program in Nias
Key Features of PNPM-Rural
•
The program provides an unearmarked budget - an annual Block Grant to
sub-districts (kecamatan) for “open menu” use (except for items on a
small “negative list”);
•
The Block Grant can disburse when villages agree on priorities for funding
(against village proposals);
•
There is a direct transfer of funds from the government treasury account
to the community organization account at the sub-district level (UPK);
•
UPK channels the fund to village implementation committee based on the
work plan and progress;
•
Accountability procedures are set and agreed upon;
•
The local gov’t contribution to the Block Grant budget is a requirement but
completely up to them… they have the autonomy to refuse to participate in
PNPM.
How PNPM-Rural Works
Village
Meetings
Inter-Village
Priority
Meetings
Design &
Cost Write-up
Inter-Village
funding
Decision
• Agree on 3 proposals (2 from women) to be brought to the inter-village
forum meeting
• Agree on 6 village reps (3 women), proposal writing team & candidate
for UPK (FM/implementation committee) staff
• Agree to provide opportunity for women to express needs through
specific women's forum and agree on gender balance for facilitators
• Village proposals discussed and ranked after “verification”
• I-V Forum Head & Secretary elected
• UPK management staff (re) elected
• Using standard templates and local unit cost surveys, detailed
(engineering) designs and cost estimates prepared
• Villagers involved in the process consult and approve
• Final decision made on funding/amounts for prioritized proposal
• I-V Forum meeting reps elected for Kabupaten Planning Forum or
Musrenbang deliberation.
• Implementation begins
How PNPM-Rural Works
Implementati
on of Subprojects
• Poor villagers must directly benefit as labors/suppliers
• Transfer of funds from UPK to TPK in accordance with work
progress. Facilitators must supervise.
Village
Accountability
Meeting (2X)
• Cost survey of materials and equipment (min. 3 sources)
• Conduct village bidding for procurement of materials above Rp.15
million . Wholesale contracting is not allowed.
Design &
Cost Write-up
Formation,
Operation &
Maintenance
Team
• Establish O&M team.
• Villagers agree on operation and maintenance (estimated) budget
and SOP
How Funds Flow in PNPM-Rural
Replenishement
Withdrawal
Request &
Financial
Statement
3 stages: 40%-40%20%
Expenditure &
progress Report
Workplan &
progress based
Transparency and Accountability
After a physical project is fully constructed, a
community meeting is organized to hand over the
project . This picture shows such a meeting that
handed over a completed bridge constructed
between villages
A collaborative program with 149
community radio stations is aimed at
providing a two-way communication
channel among community and PNPM
implementers. People are encouraged to
voice their opinions and complaints, as
well as report corruption cases.
Anti-Corruption Efforts
The key features of anti-corruption efforts and fiduciary control mechanisms in PNPM-Rural
result from ten years of “learning by doing” and build on the results of specific research and
evaluations conducted as part of the program:
• Local control of funds
• Competition
• Social controls
• Code of Ethics
• Complaint handling
• Media and NGOs
• Audits
• Sanctions
• Use of formal judicial system
PNPM as part of the GOI’s Poverty Strategy
Cluster I: Social Safety Net and Social Protection.
Programs: Rice for the Poor (Raskin), School Operation Support
(BOS), Health Security for the Poor, Cash Transfers, and other social
programs (for post-disaster & marginalized groups)
Cluster II: Community Empowerment = PNPM Mandiri
Cluster III: Strengthening small and micro enterprises Kredit Usaha Rakyat (KUR), Pengembangan Usaha
Agribisnis Perdesaan (PUAP)
Growth of PNPM-Rural
Admin. Level
1998
1999-2003
2004-2008
2009
2010
2011
District
105
348
335
342
390
391
Sub-District
501
2,668
2,230
3,905
4,735
6,020
3,525
42,319
34,032
50,201
60,458
62,937
Village
Total figures above include special program such as RESPEK for Papua and Papua Barat Provinces and R2PN
for Nias Island, as well as other supporting programs within PNPM-Rural . Source: PNPM-Rural Annual Report 2009
and GOI Book for Location and Allocation 2010, 2011.
Growth and Scope
In late-2006 the GOI decided to integrate a nationwide CDD program into its poverty
reduction strategy based on the KDP/UPP model. A massive scale-up ensued and
PNPM now encompasses:
• 60,000+ villages;
• 11,000+ facilitators and consultants from sub-district to national levels;
• 100,400 village community empowerment cadres (village facilitators);
• US$2 billion disbursed each year from all sources;
• 50,000 sub-projects implemented yearly by local communities;
• US$25 million spent each year for community training activites.
Budget allocation in Medium-Term Expenditure Framework through 2014.
PNPM Support Facility (PSF)
Objective and activities
The PSF assists the GOI in providing effective leadership and management of PNPM by:
• Ensuring better coordination among development partners and across grants supporting
PNPM;
• Developing capacity at all levels to plan, manage, and improve poverty reduction
programs;
• Reducing poverty through government and civil society partnerships, and through
innovative pilot programs that address emerging needs;
• Supporting high quality supervision and M&E efforts.
Strong donor support (total pledges of US$187.8 million)
Additional support:
•
•
•
•
•
•
•
•
•
Netherlands
Denmarks
Australia
United Kingdom
USAID
CIDA
IDB
ADB
JICA
PSF Structure
PSF Model
Analytical work
Implementation Support
Design
Test
Bring to scale (e.g. Generasi, J4P)
Measure
Policy Dialogue (e.g. Local Government)
Spin Off (e.g. Aceh CPDA, ViCIS)
Discontinue (e.g. SADI)
PNPM: Outputs (1998-2009)
Infrastucture
•
53,271 km of roads built or upgraded
•
11,324 bridges built or reconstructed
•
17,972 clean water supply systems built
•
10,184 sanitation units built
•
12,770 km of irrigation systems constructed
•
1,759 public markets built or repaired
•
1,693 rural village electrification activities funded
•
6,896 village health centers supported
•
10,717 schools built or reconstructed
•
118,791 scholarships sponsored
Revolving Funds
•
2,255,607 loan recipients
•
Repayment rate of savings and loan groups is above 90 percent
Employment and other
•
Benefits to over 35 million villagers
•
87.06 million workdays generated from infrastructure projects
•
7.8 million people employed through sub-projects
•
Female participation rate is 47 percent, above target of 40 percent
The Last Bridge Standing
In the affected area
where all houses
were destroyed
because of the
earthquake that hit
Padang on
September 30, 2010,
bridges built under
PNPM-Rural survived
the disaster.
PNPM-Rural has supported the building or reconstruction of more than 11,000 bridges by communities.
Enabling School Attendance
In East Sumba, PNPM
Generasi funds enabled
the purchase of boats,
allowing the children to
attend school and the
midwife to make regular
visits to outlying
hamlets. Previously the
children swam to school
every day or had their
parents swim them
across on their backs.
In PNPM Generasi the size of Block Grants is determined by communities’ results on health and education
indicators.
Electricity for Remote Villages
“We have asked for an
electricity network so many
times to the state-owned
electric company but they
always answer with ‘later, later
and later.’ They built electricity
poles in the 80s, but the
electricity never comes.
Luckily, there is Rural PNPM
Mandiri which helps us to build
a micro hydro electricity supply
in our village.”
- Gafar Kahar, Village Head of Balayon,
Liang Sub-district, Luwuk, Central Sulawesi
PNPM-Rural has funded 1,693 rural village electrification activities.
Medical Check-Ups
• While 80% of PNPM
funds are used for
infrastructure
development, groups of
women in East Java,
most of whom are
illiterate, proposed using
funds for conducting PAP
SMEAR check-ups.
• A community meeting at
the sub-district level
approved the proposal
that allowed 79 women to
get check-ups.
• The check-ups detected
infections and followed
up with consultations at
the nearest hospital.
More than 6,700 activities funded by PNPM are related to health and almost all of them were proposed by women.
Local Government Initiatives
Papua & West Papua
(PNPM-RESPEK)
Local governments use their own
resources to complement PNPM block
grants:
Papua and West Papua: US$39.2 m
Aceh: US$96.2 m
Aceh (PNPM-BKPG)
Sharing Lessons with Other Countries
Adiya Kashtsetseg, Project Director of Sustainable
Livelihood Project (SLP) in Mongolia: "We are
interested to study National Program of Community
Empowerment (PNPM) Mandiri in Indonesia. We
want to study budget decentralization as it has been
implemented in Indonesia."
… with Mongolia, Kenya, Haiti, Timor Leste, etc.
Delegation leader Jean Alix Nicolas
from Haiti’s Bureau of
Monetization of Development
Assistance Programs: “We would
like to learn from all of you
(Government of Indonesia), how
your country recovered from the
disaster and how you rebuilt
damaged houses in a very short
period of time.”
PNPM Generasi
•
Incentivized block grant program targeting 3 MDGs
lagging in Indonesia:
1. Reducing child mortality
2. Reducing maternal mortality, and
3. Ensuring universal coverage of basic education
• Communities and local service providers target demand
and small supply-side constraints to improve access to
and use of health and education services.
• Block grant funds earmarked to target poor and
marginalized who do not use health and education
services.
• The main long-term impact was a decrease in malnutrition
(12 percent reduction from baseline levels);
• Performance incentive improved program effectiveness in
health, but not in education;
• Increased community efforts at health service provision
and community participation in education and health
programs.
Green PNPM
• Five-year (2008 – 2012) pilot project of
PNPM-Rural designed to further integrate
environmental issues in the CDD planning
and implementation processes;
• Supplemental block grant funds are
disbursed to target locations specifically
earmarked for community investments in
‘green sub-projects’ focused on natural
resource management (NRM),
environmental conservation, and
renewable energy (RE);
• TA delivered to communities through the
pilot-project’s support of local and
international NGOs in target locations on
Sulawesi and Sumatra Islands;
• Block grants have funded over 1,500 ‘green sub-projects’ – including 86 decentralized
micro-hydro power (MHP) facilities which will provide electricity to 10,000+ households.
Justice for the Poor
Legal education highlighted needs for improved
legal identity (e.g., marriage, divorce, birth
certificates) to allow female headed households,
often among the poorest, to access state
resources such as cash transfer schemes and free
health care for the poor.
One-third of women surveyed who were living
below the poverty line could not access one or
both of the above state services.
This recognition led (with AusAID support) to
targeted advocacy and improved service delivery
from the Supreme Court, which revised its
national policy to increase circuit courts and
funding for need-based legal aid.
Addressing and Preventing Conflict
• After the signing of the peace
agreement in Aceh, the PNPM’s
facilitators network was used to conduct
an assessment of post-conflict
reconstruction needs.
• PNPM helped the Aceh Reintegration
Board in delivering US$20.4 million in
assistance to over 230,000 conflict
victims in one-third of Aceh’s villages
(BRA-KDP). This was the first attempt at
testing the suitability of PNPM as a
delivery channel for post-conflict
recovery assistance.
• Support to Bappenas in the formulation of its Grand Strategy for Conflict Prevention
and Peaceful Development 2010-2014.
• The Violent Conflict in Indonesia Study (ViCIS) is building the most comprehensive
database on violent incidents in Indonesia to date (150 newspapers; 1998-2008; six
provinces completed and 10 more ongoing) to inform policymaking.
Revolving Loan Fund (RLF)
•
Only 11 % of poor household have access to credit from formal
financial institutions. >50% have no access to credit from any
kind of financial services;
•
PNPM helps the poor by providing non-physical collateral loans
to small business who otherwise un-able to access credit from
formal financial sector;
•
Over the past 10 years, the RLFs operating under PNPM, have
grown to reach an estimated 2,535 RLFs with accumulated assets
of IDR 1.72 trillion (US$191 million);
•
The RLFs serves almost 190.000 groups (majority is women)
which has reached at least 1,3 million individual borrowers.
Moving forward
•
Developing a clear policy and strategy by supporting the
transition of the RLFs from being a government-backed scheme
to becoming operationally and financially independent
microfinance institutions to ensure access to financial services
for unbanked populations;
•
Long term sustainability of RLFs operations through capacity
building and stronger linkage with commercial financial sector
Other PNPM Programs
Ongoing Pilots and Supporting Programs
•
PNPM Peduli: to be launched on Mar 2011
•
R2PN (Rehab. & Reconstruction Program in Nias): Feb 2007-June 2011
•
PAWE (Papuan Women Empowerment Project): May 2009-May 2013
•
PEKKA (Women Headed Household Program): since 2000
•
Empowering Women Overseas Migrant Workers Project: Apr 2010-Dec 2012
•
Local Government - Pro Poor Planning and Budgeting Scaling Up Plan: Jul 2010Jun 2011
•
P2SP (Participatory Development System Program): since 2006
•
PNPM Post-Disaster (special activity)
Completed
•
Creative Communities: May 2008-Feb 2010
•
PNPM SADI (Small Agribusiness Development Initiative): Dec 2008-Dec 2009
Impacts and Lessons Learned
Infrastructure Delivery, Economic Welfare and Access to Services
1. PNPM is an effective infrastructure delivery mechanism produces high quality,
cost-effective village-level sub-projects:
• Economic rates of return average ~52%
• Cost of construction 55% of standard contracted budget
• 94% of sub-projects fully functional after construction
2. PNPM increases household welfare and moves households out of poverty:
• Consumption gains 5-7 percentage points higher and probability of
transitioning out of poverty higher in PNPM areas
3. Impacts are strongest in poor and remote areas: The largest gains in terms of
EIRR, household welfare and transition out of poverty occur among poor
households and in poor and remote areas.
4. Poor and marginalized groups (e.g., female-headed households, households with
low levels of education) do not see significant benefits from the project.
Impacts and Lessons Learned
Access to Services and Employment Opportunities
•
•
•
No impact on access to education (enrollment and drop out rates)
Significant impact on access to outpatient health services
Smaller impact on reducing unemployment
Social Capital and Governance
1. PNPM has created strong culture of participation, transparency and
accountability within the PNPM program:
•
•
Participation of women and the poor ~45%
High satisfaction from project beneficiaries ~95%
2. Beyond PNPM, higher degree of participation and peaceful problem solving.
However:
•
PNPM approach/procedures do not spill over into planning and
implementation of other village and LG development activities.
Impacts and Lessons Learned
3. Community Perception of PNPM not pro-poor targeted:
• In contrast to household-targeted programs (BLT, RASKIN, etc.) PNPM-Rural
is not viewed as a poverty program, but one designed for the entire
community;
• Projects selected by the community are not always in line with needs of poor
households, particularly in areas with good existing infrastructure;
• PNPM is most likely effective in areas where existing infrastructure is
inadequate, leading to closer alignment between interests of the poor and the
overall community (e.g. road/bridge enabling quicker access to local markets,
irrigation).
Broader Impacts
• Rural PNPM forums reduce conflict;
• No serious environmental impact or safeguards issues;
• PNPM-Rural serves as an effective for responding to economic crisis and
natural disasters.
Main Challenges
Weak
institutional
capacity at the
central level
Private sector staff to deliver
program on the ground
Fiduciary
aspects
Key actions to strengthen controls
and systems to detect and act on
fraud and corruption
Reaching most
vulnerable and
marginal
groups
Working through Civil Society
Organizations
Multiple PNPM
Programs
Clarify integration agenda: what
does is mean for facilitators,
participation process, block grants?
Future Strategic Directions
The five main strategic issues that have emerged include:
1.
Integrating the GOI’s various CDD programs within “Cluster 2”;
2.
Adjusting the core PNPM model to different kinds of poverty (e.g., femaleheaded households, within wealthier areas, etc.) across Indonesia’s diverse
regions;
3.
Achieving great efficiency gains through enhanced management,
supervision, and monitoring systems;
4.
Using the social capital and community planning processes created through
PNPM to strengthen the downward accountability of local government;
5.
Strengthening the collaborative “handshake” between PNPM and sector
service delivery that can result from identifying and aggregating community
priorities within specific sectors.
Thank you for your interest!
Terima kasih!
PNPM website
www.pnpm-mandiri.org