Indonesia - Implementing National Policies in a Decentralized Context - Special Purpose Programs to Protect the Poor

by Ehtisham Ahmad

Indonesia is in transition from being one of the most highly centralized countries to one of the most decentralized. A critical difficulty is that local governments (particularly at the district or lower level) currently lack credible social protection instruments. On the other hand, at the central level, there is limited capability to implement or monitor local expenditures. During the transition, there is a possibility of conflicts of interest between the various levels of government. The varying incentives have a direct bearing on the design and efficiency of Social Safety Net (SSN) measures aimed at protecting the poor, particularly from shocks to the economy.

31 pages, Kindle Edition

First published June 1, 2000