23 Sep 06: BRR's better performance depends on administrative reforms needed in Aceh/Nias
September 23rd 2006 00:22
Administrators are the main beneficiaries of aid funds for Aceh and Nias reconstruction, say World Bank team members in a report published in Jakarta Post.
The World Bank leads in organising Aceh/Nias project funds through a Multi Donor Fund (MDF) of the EU, World Bank, Asian Development Bank and 12 governments (other than Indonesia's bilateral funders - the US, Australia, Japan).
The Bank's team members identified three reforms vital for improving BRR's reconstruction oversight in Aceh and Nias:
(1) Spend more on infrastructure projects by arresting the funding of mushrooming administrative structures;
(2) Address the very low capacity to manage public funds well; and
(3) All parties to coordinate data compilations better to make a unified, comprehensive system.
BRR is Indonesia's Bureau for Rehabilitation and Reconstruction in Aceh and Nias
From the report:
Local governments spend most of their resources on salaries and investments in "government apparatus", and these expenditures have been increasing disproportionately in recent years. As a result, spending on most key sectors stayed much lower than it could have been, particularly on infrastructure. One reason for this trend is the mushrooming of administrative structures due to the splitting of districts.
More in "Hopes high for Acehnese to emerge from poverty"
by Wolfgang Fengler and Ahya Ihsan, Jakarta Post report 23 Sep 06
Jakarta Post's link
Research back-up
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