DSF Annual Report 2009

DECENTRALIZATION SUPPORT FACILITY ANNUAL REPORT

ADB

Embassy of the Kingdom of the Netherlands

2009

Indonesia Stock Exchange Building

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DECENTRALIZATION SUPPORT FACILITY ANNUAL REPORT 2009

DSF Annual Report 2009

Foreword 78 6 ( . * ( * * *9 1 , ** * 1 3 * * , 3 * ,, *

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Prof. Dr. Mardiasmo, Ak., MBA / 3 5 & , / F 5 3 G

5 3 G ( & *3 ; 3 H * . ( & 3

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Dr. Kenny Dick / 3 5 & , / F 5 3 5( 5 *

DSF Annual Report 2009

Preface

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Heru Subiyantoro, PhD / 3 5 & H , / F 3 .

5 3 G ( & *3 ; 3 H * . ( & 3

Peter Ellis, PhD / 3 5 & H , / F '3 * * 6 5 1 5 1 - ; !

iii

DSF Annual Report 2009

Table of Contents Foreword

Preface

Table of Contents

Summary

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O O O

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O O O O

Introduction

Governance and Development Context

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G 6 & 3 '3 3 / * * , " 1 * @ * ( 5 &

Existing Work Program

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DSF Annual Report 2009

Work Program 2009-2011

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DSF Executive

Risks and Constraints

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'41 3 2 * 7** 12 * " 9 3 /.3

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Conclusion

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Annexes

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DSF Annual Report 2009

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SUMMARY This report presents an account of progress achieved by the DSF over the period July 2008 â&#x20AC;&#x201C; June 2009, but it also discusses important aspects of the work program that has been approved for the period 2009-2011; the governance and development context within which this program is set; and * , 3 ( ! *1 * * 3 4 6 * * ( 32 * 1 6.

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Governance and Development Context * ?* , , * * * * 6 * , 3 23 3 .

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9 3 . ; rises in unemployment and poverty are likely and are already being felt in * * 3 * * 1 * ( 3 . 6 *. ( 5 &

4 * , +3 3 * 1 . 1 . 3 * * , . 6 3 * ( D *2 * ( *3 6 * 6 3 * ( 2 , ( 32 . * , 1 2 ( 6 4 *2 , 1 1 * 32 2 * 6 3 * ( *2 2 3 2 * F 4 3 32 2 * 6 6 4 * , +3 3 3 , 1 , * 6 ! . . , * * 3 3 *2 * > 3 * * 3 * 9 6 * ( * 3 !* 0 . ( 1 1 * * * ( 5 & * ,

* , 6 Soundly based, equitable, and well directed and implemented development policy; strong governance *2 2 *J 3 1 6 1 1 ( , , .J > 32 1 ** * 3 1

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Existing Work Program / 1 2 1 323 41 3 * 3 3 *

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$ 5 & 1 * 11 * ( +*3 3 : 2 # K L , *( *J K6L * 6 2 6 ,J K3L * 6 2 * 1 * * * * 2 intergovernmental transfers 5 & ** * ( * 6 . ** ** * ( > 3 2 * that might be introduced into the grants system, including the possibility of using revenue-sharing intercepts * * 32 * ( 1 1 ( 3 Q , , (

, the DSF supported 32 2 * 6 * 3 ,J 1 1 . ! ( ** 3 ( ! 6 ; , 6 J

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3 2 ( , *J K6L * 6 2 6 * ** 3 (

case of territorial reform 3 1 2 41 3 * 6 4 3 3 * ( 1 ** * ( , * , 1 ( 2 6 2+ ; * 2 3 * * * * , +3 3 ( , 3 . * * & ,* 3 2 * ( * ! 3 8 , ( , * 2 The DSF has contributed to

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3 1 3 . ( , 1 3 , * K; P * L ( , * 3 j3 . , *

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* 6 2 ( 1 3 , : 2 * * 3 . j 2 * ( ! * 1 3 . 3 1 3 . *3 *

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! # & & & To date, four areas of planning and performance management have 3 5 & * 11 # K L 1 ( 3 , , 2 *J K6L 3 , 1 ( 3 J K3L 3 3 ( 6 ( 2 * .* 2 *J K L * 6 2 * 2*23*

5 & * 11 3 , 2 1 , * 3 6 6

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* 6 * ( 3 ! , , 1* 3 , 2 * ( 2 3 * " 1 ' * C 6 ! " 6 ,, , !J 2+3 2 .* * ( 6 * 1 323 3 , 2 *J 41 * ( 1 , 3 3 , 2 * ( % * 3 *J 1 32 ( * ( , * ( 3 , * ( ** ** ( 3 , 2 * 2

, the DSF supported assessment of the regulatory framework for data 3 32 .* * 1 2 , ( 3 , 1 ( 3 * 1 3 K * ( ** !

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conducted with DSF support in O % 3 1 * ( 1 6 3 * 6 ( .* 3 , 3 6 *

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Work Program 2009-2011

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1 ( * ( 7/P* 1 3 * , 3 * , +3 3 3 : 2 their inter-connectedness; their basis in healthy engagement and genuine policy dialogue with government; and,

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DSF Executive . 1 , ** * 6 ,

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11 ( '4 3 2 5 3 * ( * * > * * , +3 . 1 N(' 3 1 3 . 7 3 . 3 3 / 57 3 * * * 4 * 2 1 41 3 N(' * ( * 2 * 1 3 1 2 . N(' * > ( * 11 * (

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Risks and Constraints & * , +3 3 , * ( *! 3 * *3 ** ** 3 # + * 5 &?* > 32 ** 1 2 J * 3 , ( 41 3 2 * 3 3 , 3 * 3 ( J

1 9 3 * , 4 3 2 1 2 J ( 3 , , , J +8

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Finances N 6 * * ( 43 , * 1 ,

1 , 5 & * * Q 5 OO O N( * ( Q 5 O% KO } ( 1 , L * 6 ( . 3 ! * * 5 & 1 2 * * , 2 * 3 2 ( * D * * ( 11 3 2 ( N(' * , , * , * * ( , 1 2 , 1 7

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Conclusion

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6 * . ( 1 * ; ,

5 & * 3 1 ** ** * * D 2 *

( 6 ( ( * , { ! 3 * 6 2 1 1 * ( 5 & * 3 . .

6 3 5 & 3 *2 * 3 6 , 23 . 3 * 32 .

6 , * ( 2 * ( * 33 ** 6 1 1 3 3 . .* .*

1 3 * 32 1 3 3 ( . *2 2 1 32 *

5

6

INTRODUCTION 33 3

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1 3 1 * * P 4 1 , ** 1 * * , * , *3 ** ( 1 * < 1 * * 1 . *3 ** * ( 3 4 1 * D . 1 * * 6 F , . & , ( * 1 *3 ** * 33 1 * * 1 , ** ( 4 *2 , 5 & + 3 32 2 * * * 5 & * , 3 ( ! * . ( 32 2 * 3 11 5 & - ! "

1 * * 1 , ** 2

1 1 2 ( 5 & - ! "

1 3 3 * 6 ( *3 ** * ( 1 * 5 & '4 3 2 *!* ( 3 , 5 & *

" , ** , * * * * 3 1 ` , , ( ?2 * 7 4 / 7 + 3 1 ( . * 1 * 7 4 ;

Chronology of SigniďŹ cant Events / &" 1$ . 6 ,

11 7 , * A ( " , H , ( 5 & '4 3 2 * * ( 1 6 6. * _ , ( 6 * , 3 32 * ( 5 & 6. * , / F 11 ( * 4 *2 , 5 & 32 2 *

3 2 3 5 & * 11 , 3 1 2 &" / &" 1$ ; 1 6 5 3 6 A 3 * 6 , : 2 1 * , * 3

5 & '4 3 2 * , +3 1 * D .

2 ** ( 1 2 ,J 1 ( 3 , .J * > 3 J , : 2 3 &" 1$ ;. 5 3 6 A 5 & N1 2 * H 6 + * 11 1 , ** 6

1 ( ! 1 ( 1

2

& * 1 2 , 1 1 * * 5 &?* 1 3 1 + 3 5( 5 * 3 * 3 , ( * 6 * 5 & , ( 6 ** , * , D 2 2 *1 3 +3 . some of the milestones and in some cases raises the levels of accomplishment expected under 3 * * 1 (. * 2 ( 5 & 1 2 , 5( 5 *3

* report and subsequent reports like it will monitor and report on performance against the log( 1 6. 5( 5 ( * ` , , ( ?

7 * 5 3 6 A ( , 2 , ( 5 & H , / F KH/L * 3 3 2 6 /

5 & =3 H ! ** ! * N(' should cease to be a part of the DSF, and that such disengagement should be completed by no later than the end ( 3 . * . * 1 2 ( N(' ( 5 & * * * 6 . * , * , , 1 * 6 1 1 6. " , H , ( 5 & '4 3 2 3 $ ; , * , 3 1 2 * 2+ 6.

5 & / * ( 32 2 * 2+ 6. , 3 1 * F 1 ( A ,

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** 3 , ( ! 1 3 * 2 6 , * 32 2 * 33 ( 11 4 . } ( 6 3 ( 6 ( * & 32 2 * 6 1 1 * , * 3 ( (

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3 F ( * 7 * ,

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3 3 * ( H/ 1 . *1 * 6 . ( 1 * ( * 3 * 11 3 F * *

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6

1 ** 6 . ( 4 * 5 3 6

2 , 11 6.

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5 & * 1 1 6.

5& 5 =3 ! ( * 6 **

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3 $ & , , 2 , ( 3 * 4 * + * 6 3 ( 32 . 3 3 1 * * 3 3 ( 3 * 2 11 6.

H/ ( K ( L 1 4 The aim is to

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* 6 / H/ , , 3 , 3 3 * * 3 1 , H .

/ 6 2 7, * 1 3 ** ( 6 , * 33 , .

G ( * * * , , ( 1 ( ( * , , , 5 & 6 4 5 3 6 4 3 * D 6.

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8

GOVERNANCE AND DEVELOPMENT CONTEXT G 3 5 1 / 4 * ?* , , * * * * 6 3 3.

1 .* 3 * 32 , 2 3 2 * ( 2 * * . 3 , *

Strong, Sustained Development

6 * * ( * 3 1 3 + * * , ( 3 *.* 3

* 6 3 ( 3 1 22 , G * * 3 ( ( 1 3 ( 32 *

* * , +3 ( 1 * 2 * 3 * * 1 * 2 ( ( , 3 * * , 1 3 3!* 6 3 * 6 , * 2 9 3 4 3 2 6 3 * ( ,

/ *2 2 / 4 3 * * 3 23 * , ( 1 ( *2 2 * Fourth, as a consequence of good economic management over several years, 1 6 3 6 * 6 3 ( , * * , + 3 * 3 * 6 * , 6 * *23 3 . * 6 * 6 * * * ?* 3 3 3 3 2 * * 6 3 * * & 8 ( * * 1 3 * 3 ( , * 3 + 3 3 * 3 . , * 2 * 6 F 6 6 ( 1 * * * 6 4 3 , : , * * , 2 3 1 * * ( 4 ( *.* 3 3 12 ,

* 6 ! 1 , * 1 6 3 * 23 12 7* * ( * 3 1 * * * 6 F 1 3 * 3 * ,

3 , 6 + 3 3 3 * / 6 2 ( * ** ** * 3 2 *2 ( H , 5 1 K H5L , 6 `* ** * ? 3 1 * 1 6 *

!* * * rd in terms ( * ` * 3 ? , 6 3 * * * - ; ! 1 9 32 * * * ,, * * ?* 3 . * * , ** D 3! . .

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D 2 2 ` 69 32 ?

7 * 3 . * 3 * * * 6 * * ( * * * 1 * 7 4 7

Opportunities for Accelerated Development P ** * 6* * ,

* *2 ( 1 1 23 . 2 3 *1 3 * ( , , 3 / 3 *2 2 * * 3 * 3 * 3 , *.* * 3 . * 3 * 3 * ( , *2 ! & # # 5 " 1* * 1 .

1 . * 1 6 -

3 * 6 1 , ** * 6 * 3 * K( 4 1 ( 41 3 3.L * * 6 about measurement and indices, it is generally accepted that the number of people living in poverty is high for 3 3 . K * 1 3 , ( 1 1 2 L 3 1 6 *

( * 3 3 * * 3 * & 4 1 . * * 3 * 2 * * ( * 4 2 * * ( / C ** } ( * * 33 ** 1 1 * , *.* * 7* .

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BeneďŹ ts of Decentralization 6 " #

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6 ! 9 1 , * ( 3 : 2 1 . 1 1 * * 6 1 23

* ( 3 * 2 , 1 * 2 ( , 1 . ( , * * ( 1 2 , ( , 2 ( * * , 1 23 * 6 .

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10

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1 ** 3 , * ( 1 * 3 . Q ( . * 3!* 6 * *2 2 3 1 1 * 7 3 11 3

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6. , 3 2: * * * 6 3 6 3 2 * 11 . * * 11 K ,

,*L 1 * 3 2 ( , 3 2 * 3 , * ( * 3 1 * * 3 3 * * 1 3 ( 1 . * *1 3 + ( 5 & 6. * , / F 3 6 3 6 * 11 . * 3 * 2 *J 3 1 3 . 6 ,J 1 3. ( J * , , , 3 33 6 . ! , 11 1 6 3 6 * 11 . * * 11 3 : 2 * 6 F ( , , 6

5 &

The Global Financial and Economic Crises

3 3 .* 3 * * , , 6 + 3 3 * * 3 3 6 , ( 4 ( +3 2 * 6 3 3 , 1 2 , 1 -

> 3 * *2 ( ( 3 * 3 6 * * ! .

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.

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11 2 * ( 5 & ! 1 , 3 , 2, 2 ( > 3 * (

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* =3 ( 3 , * 1 , * 6 ! . . , * *

11

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Strengthened Purpose and Roles of the DSF 0 3 1 3 ( 1 1 * * ( 5 & 6 3 6. * * , 6 * . 6 * D 6 3 1 1 3.J * , *2 2 *J 3 1 6 1 1 ( , , .J > 32 1 ** * 3 1

5 *3 ** * 6* D * 32 * ( * 1 ( 4 *2 , 1 5 & 32 2 * * * 5 &?* 3 6 2 * 1 2 3 6 2 * *

%

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2 ! 3 2 *

12

EXISTING WORK PROGRAM ; ( 2 33 * * 6 ( 1 , ** , 3 * ( . 6. 4 *2 , 32 2 * `'4 *2 ,? 32 2 * 3 1 * * * 11 3 3 1 32 2 * 3 5 & - ! "

5 , 1 2 , 1 3 * 6 * 11 * 1 6.

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* 1 * 32 *

5 & 32 2 * 6 , * 33 , 1 . * * ( 5 & 6. * / 1 6 A :

&7$ To a large extent the diversity of the 32 2 * *3 ** 6 3 * ( , . ( . 1 6 3 * 3 * * 6 ** ** ( . F 1

1 . 3 3 23 3 * 3 ( * 4 * 3 * . . ( , : 2 3 ,

* * . , 23 , 3 ( * 1 1 * 2 3 + *

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3 * ? K1 L H 3 3 6 ( , 3 3 * 3 ( 3! , *

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1 , * !* ! , ( M `/ * 3 ( * * . * 11 2 , * ,. ( , 3 : 2 , 1 2 * * 3 . N * 3 : 3 * 3 * * ( * * 1 * 3 * 6 F , * 3 * =3 . * 11 , 3 , * 3 * 3 * 3 6 * * (

* *

3

, ( + * * 6 , 2 * 3 4 ( 3 : 2 * * 8 6 * 1 1 ( * ( 2 * =3 . D 6 . > 32 . @ ( ( 3 * 3 ( * 1 3 ** ( (. , * 3 2 * 6 =3 3 1 ( , , 6 ( 3 . 3 : ? K- ; !

L 3 * 3 * 3 . *1 3 ( 6 2 ( , 3 F 6 3 * , 3 * 3 .

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1 ,

Public Service Delivery 5 & * 11 * * 6 3 # K L ( 32 ** , *J K6L * 3 * *J K3L 2 3 * * ( * 3 .J K L 2+3 2 1 3 2 ( , 1 323 *

Functional Assignments G @ , 2 P Aj M ( 32 ** , * D * ( 2 ( * * * 1 3 * 3 KP " L ( . , * 3 K * 3 *L 5 & * 11 *

* 6 1 .

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* ! 6 * ( , . ( ! ( ( 32 ** , * `'41 , @ ( N12 * & 32 7** , *? K AL * : 5 & " 3. ; ( P ( *

Minimum Service Standards / , * 1 6 * ( 6 * 3 * 3 . * 6 ** P 2 & *3 5 3 : 2 732 " K L 3 * , 1 , 6 * 3 1 6 3 * 3 * *1 3 .

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( ** * 3 3 3 * 3 * * ( . .* ! . 6 ( 2 Q * K ML 6 * 1 * * 3 ( 1 . 3 3 23 11 3 * , * 3 * *3 6 * * ` ( 1 * 2 ?# `" 23 .* * * * 1 23 3 4 1 3 ** * 3 * 1 , 3 2 * ( 1 23 * 1 3. ! * ( , * 1 , ** 3 , * 3 .

3 , * 3 2 11 3 * ** 1 6 * 1 . + 3 3 3

1 23 6 ( Â 1 *Â&#x201A; 3 6 3 6. Â , Â&#x201A; 3 2 . Â&#x201E; * F 3 1 23 .* * * 1 12 , * D *2 * . , K * . 1 3 L ** 12 * 6 1 11 *? K1 L 9 7* * H * . ( 0 @ , 2 P MO j AJ H * . ( ' @ , 2 P j AJ H * . ( " 6 3 0 * , @ , 2 P j AJ H * ( 3 @ , 2 P j AJ H * . ( 0 7> * @ , 2 P % j A 10 7 * . 6 . " * 1 * 3 , . ** * * 3 * 6 * ( , * 3 2 * to regions related to tax sharing from oil, natural resources,

14

0 ,

,* 5 & * * 11 * 3 : 2 ** 2 ( * 3 * *

* 3 , * KH ! ** ; | ,. ! L 11 For example, a number of workshops

, F 1 ( A 41 2 * 3 3 , H 0 1 A% 3 , =3 * K5 * ; 11 5"@5 *L ( 1 3 *# * 1 @ | ,. !

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( 2 ! 6 * 2 H 6 H 3 A ** + 3 , 3 *2 , 1 2 ( * 3 * * " 23 1 * 3 1 * 2 * ( ; 11 * H * . ( 0 7> * H * . ( & 3 41 * *

Alternative Mechanisms for Service Delivery

, * 3 , : *

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4 &

= 4 > * ** 3 7H 5 , * 3 3. * , 3 3 * 7*

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7 5 3 * , : 2 , , ( * , * 1 2: 2 * 9 * 6 +3 32 2 3 , 3. 3 * 6 * ! , * ( 32 * 1 * . ( * 33 ** * , 1 3. ( 2 3 * 3 ( 3 * ( 3 3 6 * 4 * *

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12

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;CQ * 1 + , *2 2 * 6 * * 3 * 1 6 3 6. * , , * j * 3 * KG @ , 2 P j & 3 H , ( ;CQ / 1 7 23 " L 14 ;CQ5 ! * 3 * 3 =3 K "# " L ! , 3 * 3 =3 * 6 * * 3 * 1 6 3 6. * , , * j * 3 * ( 1 + KH * . ( 0 7> * @ , 2 P % j M 3 3 G 3 ( & 3 H , ( ;CQ5 / 1 7 23 " L

15

? ? ? ? ?

2 * 1 6 . *1 * 6 . 6 3 * ! j 4 3 j 1 @ & & & $ 0 * * 3 . D *2 F # * 32 1 3 32 ,J 1 ( 3 , J *1 3. ( ** '

$ * * 3 . D *2 3 *3 * ( ( , *1 3 * ( , : 2 3 # * 3 3 * 2 , . * 1 3 Â&#x2C6;

# $ * 3 * 3 . 11 1 ( * 3 K*L * 3 Â&#x2C6; ( * * Â&#x2C6; ' $ * * 11 1 ( * 3 K*L * 3 Â&#x2C6; ( * * Â&#x2C6; * G &&

# #

$ This will include: involvement of clients; 3 * 3 .

1 * 3 J 3 . , , J .* * ( * 3 1 * 2 ,

5 & * 11 * ** ** , , . ( ! , 1 *2 2 6 , ( 1 6 3 * 3 .J 1 3 8 1 ( 1 32 . * J 8 6 1 ( 1 2 , 1 ?* 1 2 3 ! 33 ( * 11 > 6. * * + - ! 6 3 5 & ! 1 , 6 * * ( 2 * * 6 . *3 6 * 1 * 32 6 C 6.

5 3 G ( G " 6 3 7> * , * * 6 * , 3 3 - ! , G 1 1 ( " 6 3 3 * 3 * 6 3 1 { ( : , * 11 , , 1 9 3 * , 1 3 * 5 & * 1 23 1 2 , * 11 2 , *

Good Practices

3 1 ( * 1 9 3 * 5 3 ( / 1 3 . ; , C 3 G " ( 3 ' 2 H * . ( 0 7> * * . 1 9 3 3 3 1 6 A

, , ( 32 . * 1 *.* * ( ** 2 1 3 2 ( `6 * ? K , L 1 323 * , 1 6 3 * 3 * 6. 3 , * *1 3 .

3 2

* 3 *

! ( 3 : 2 * 1 . 3 , * *1 * 6 ( , 6 * 3 1 6 3 * 3 * P * 1 * , .

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12 6.

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69 32 * ( 5 & * 11 # Â&#x2030; 7 .: 3 , 1 323 1 , * ** 2 * , * . * J Â&#x2030; " * ( > 32 12 ( 2+ , 1 323 * 6.

3 , *J Â&#x2030; @ 3 6 * * * 6 *.* ( 33 2 , 1 1 , , 3 , * 33 ** 6 , , 6.

4 ( *2 2 : 2 ( *.* * ( ** 2 , , 1 323 * * 3 . 6. 3 , * N 1 ( 3 3 K71 L D * 3 1 2 .* * ( , 1 323 1 , * * 6 3 3 J * 3 K 1 6 L D *

3 3 ( 1 * ( ** 2 1 3 2 ( 2+ , 1 323 *

1 9 3 * , : !* 1* ( 3 * , 1 *3 ** * 3 * 6.

1 , * ( 2+3 2 ( , 1 323 *

5 3 ( / 1 3 . ; , C 3 G " ( 3 ' 2 H * . ( 0 7> * KH 07L * 1 , , 2 , 1 323 * * * , 3 , 33 12 ( , 1 323 * * 3 . , 3 , * * 1 *2 2 : 1 3 ** ( * , ( 2 6 2 * 6. 3 , * 1 3 ** ( ** 2 , 1 3 2 , , 1 323 *

16

Fiscal Decentralization

* 5 & * 11 * 6 # K L , *( *J K6L * 6 2 6 ,J K3L * 6 2 * 1 * * * *

Intergovernmental Transfers 0 5 & * 11 * 1 , .* * > 1 ( 3 3 2 * ,

6 3 , * *.* J 41 3 3 * 3 * * > 12 *J

* 1* 6 !

32 7 ,

,* * ! ( *3 ** * 3 3 , 1 * ( 1 ( 3 * 3 ** 3 - ; ! ( * 3 1 1 3.

Q * 32 . ! * * 1 ** 6 2 * ( * , * , 3 1 * * * 32 * ( 1 1 ( 3 * 6 2 3 , 2+3 2 ( ` 6 2 * *? ` 3 1 *1 3 ? K 1 3

, ( * * 1 6 * 3 * 3 . ( 32 , ( 3 , D *2 L * ! 3 1 6 A

Sub-national Borrowing 5 & * 11 * * ** ( ** *# K L 6 * 3 ,J K L ! K5 L 6 J K L +*3 * 3.J KOL ; , 6 " & % 5 & * 6 1 , 3 H * . ( & 3 , ( 1 ( , * 1 ** 6 2 * ( 6 * 3 , * 3 1 * ( 4 *2 , , * 2 3 ,# K L H * . ( & 3 , 2 K"H L j A * F ( * 3 * 3 , 1 * *J K6L "H j A * F ( * 3 * 3 , *J K3L "H j A 3 1 3 * * 11 * * .* * 3 , j "57H 1 { * * 3

* , 1 * H * . ( & 3 *3 ** * 3 3 , 6 * 3 , & ! * * ! . < 6 * * 11 1 +* =3 I > " #$ DSF support has done much of the background analysis and preparatory work for the issuance ( * 3 6 3 6 + * 3 1 6 6 ** * 3 .* * * 3 6 * 3 , 3 1 6 . > , 1 * * 6 2+ 2 * 11

* 1 , ** * , * ( . ( * 3 1 9 3 * , 6 + 3 * .

1 * * ( 11 6.

G * ( 32 2 * ( 3 * .

1 1 2 ( 3 2 D 6. "H OMj % ( 1 * 2 3 , , * * K5"@5L H * . ( & 3 * 6 * * ( * ! , 11 1 3 6 ** 3

7 ,

,* * * 11 ( * *1 3 * ( * / / 1 , 6 * 3 * 6 ! 1 3. * 3. * 3 3 ( , * 2 , , 1 6 3 3 1 * K 2 , L * 1 * * * * , 1 2 , , 2 * 1 3 1 . * ( C * j O 3

6 , , , * 3. ( * ( + 3 3 * * N 1 + , * 6 C Mj O 3 6 11 , , * 3. 6 3 * ( 3 3 * 6 * , * 2 3 : 2 * + 3 * 0 * * ( ( 11 1 1 . 4 *2 , , , 2 * K""L Oj %j ! . 6 * =3 1 , + 3 3 * * * * * , ( 43 ** 6 , * ! .

4 * 1* * 11 8 , ( , * 2 ( * 6 * 6.

H * . ( & 3 ( , 3. ( ( , + 3 3 * * 3 , D +3 2 33 ** 3 ( * ( 6 J # " # * ! 6 , H 3

1 * 6 1 3 * *

* 1* 6 ! ( ; , 6 6 ! * ( * 3 + 3 * * 11 * * ** ** 6 , 6 * 3 , 3 1 3 . ( ; , 4 * 1* * _ , 1 ( 1 1 ( ** 3 ( ; , 3 1 6 * ! * 6 3 .* ( 6 , , 6.

- ; !

3 2 * *

17

Sub-national Surpluses and Reserves $ * ! 4 * ** * * , * 6 2 , *? +3 * * 1 * * * * ' 1 3 .* * ( , , * 1 * * K6 * ( M 1 3 * * 3 * 3 2 *L ( 3 * * 6 ! 1 * * 1 . # K L 1 6 * ( K F L 6 , 4 3 2 *1 ,J K6L *2 2 * ( * 3 * * , 1 3 *J K3L *! * K 6 ! 1 * * . ( . , * L 3 * 6. , ?* 23 12 J K L 3! ( ! , 3 3 , 2 ( * ( * * ( * 1 * 3 * @ 3 2 * 3 # , 3 ** . * 32 * 6 , 4 3 2 J * , ** ( 2 ( * ( * J 3 * , *1 3. 6. ! , ( 2 , , * 1 * * 1 6 3 . 6 J 1 , 3 2 * ( , 1 6 !* * 1 ( * * 1 * 1 * * 1 9 3 * 3 6 , 1 * & $ & ,* 3 1 * 2 ( * 6 2 , * 3 # Â&#x2030; @ , , * * * 6* 2 * * +4 ** * K 6 . * 3 * 6 ,*

* 3 *L 0 , , * 1 3 +4 ** * ,

, 33 * * * 3 1 2 ( * 3 ** * Â&#x2030; H * * * + 3 ** * 3 * * ( D . 1 23 1 2 , , 1 * *

* 1 6 3 * 3 . @ 3 2 * 3 2 2 , *3 ** *

33 2 , 1 ( ** 1

3 ( , , + 3 1 * < 6 6. 3 , , 33 2 , * * * * 3

1 * 3 ** (. * * 6. ( 32 K* 3 *

1 6 3 * 3 *L * 3 * K* 3 * * 3 2 , 2 L / , , 3 * 3 . * C ! * * 3

*3 ** * 3 3

7 ; ( @ 1 6 3 ( * 3 , , 1 3 2 ( +4 ** * 6. , , * *3 , , , , * ** * 1 6 3 ( * 3 * 3 *

Governance Reform * 11 1 * 1 . * ** # K L ( 3 * * 6 + * ** 3

3 2 ( , *J K6L * 6 2 6 * ** 3 (

Territorial Reform 5 & * 11 ! ( 1 , * , * # K L 3 1 2 41 3 3 , 3 . 3 * * *J K6L * 3 1 23 * * ( ( 6 * 3 * * * ( 6 * ; J K3L 3 * * 6 + * ( ( K( H * . ( & 3 L ! * 1 ( 2 > 1 3 6 * * 3 ( 1 3. ! * , 3 23 2 ( 6 ( , 2 * * , ( * & ; H . 3 * 6 ! 1 , * ( 3 * 2 , , 3 , * / 1 2 41 3 * * 3 * 2 3 * 6 2 . ( 6 3 , ( 3 * 2 * K 3 3 6 .J ( * 3 J 3 1 J * L

* 3 3 * 6 11 3 *23 . " 1 2 * : 3 * 6 1 . * 1 4. ( 6 . 7 1 3 ** 3 6 * 6 * 2(. 3 J ! 3 2 * 3 3 , 3 * 2 J 9 3 *1 * 5 4 2 ( 41 3 * ( 1 , 3 * KG P , " ! * L

3 . 6 ! 4 * 1 , * ( * 6 2 , 3 2 1 3 . K/ L

* 6 11 * 32 # + *

* . * =3 3 2 * ( , =3 * 3 * * 1 ( 2 1 ** J * 3 3 2: * 6 * ( , , * + 3 , 3 3 4 2 J 3 2: * 6 6 F 6 !

9 , * 6 * ( *1 _ , , ( 1 ( 3 ** ** * 1 9 32 * * 3 ( 2 * * . 6 J ( 6 F * 3 1 * 6. 3 , * 3 3 2: 1 ** ( 32

18

/

# &

6 * 5 * 3 * *2 , 3 * 6 3 * * + * , 3 * 3 : 2 * K 71

L * , * 1 1 2 * ( 3 , , * 3 * ; 5 * 3 K3 L * 3 * 6 3 * ( * * , +3 3

, ,. ( , 1 ( 2 K 8 * 3 2 * 6 * 2 *L 2 5 * 3 ; K * * 6* *L * 2 . , * ( , * 1 *1 32

3 j , * 2 j* 6 2 ( , , 3 2 * * , ( * !# Â&#x2030; * , ( * 6 2 , * * ( 1 6 3 3 * 3 . 1 3 2D * * ( 1 , 3 3!* 6 3 * Â&#x2030; 2 , ( ( ! * 6 3 , * * * ,

3 * 2 * 2 , 3 . 6 * * 2 6 * * =3 3 * 2 * , 3 3 6 . 3 3 ** Â&#x2030; & 1 6 3 1 *1 32 3 2 of new districts and new sub-districts led to improved public * 3 . / * .

3 : 2 ( 1 6 3 * 3 * 3 ( * 6 * 3 * * * 1 1 6 3 * 3 @ 3 2 * 3 , , . * 6 * 3 * 6 . 3 , * , < ` ? , * 2 * 11 * 6 , 1 . 1 1 23 1 . 3 32 * , ( * 6 2 , * * 6 1 ** 6 * 2 * , : , 1*

* + ,* 3 2 * ! 33 8 , ( , * 2 ,

1 2 , 1 & ! * * 3 3 ; 11 * & *3 7, 3. 7, K&77L QP5" *2, 2 * 1 ( 2 ( , * & ,* * ,, * 1 * * 6 1 3 , 1

, 1 ( 2

1 . 3 1 3. *

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, 6 3! , * 33 , 1 , ** * 6.

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2 !* 1 ; 11 * 1 * *

3 2 * 1 * 1 , ?* 1 1 O # " . + ,* 3 # Â&#x2030; 3 * ( 3 2 ( * 6 2 * 2 * K L K + * 3 * development expenditure of the central government and regional governments caused by L * * @1 M% * 2 , @1 32 ( * * 1 6 3 * 3 * Â&#x2030; H * ( 3 * ( * 3 * 6. 3 * 41 2 3 * * ( * 2 * 3 * * +*3 *( * ` 1 * ? > 3 Â&#x2030; * * ( 3 2: * 2*( 32 * .* *

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3 2 * 2 * 3 *

3 2: * , * H , * ** ! .

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+ ,* ( * * . * 6.

H * . ( & 3 ( * * , *( ( *

Sub-national Business Climate Reform

3 1 , 3. ( * 32 . * 5 3 G @ , 5 1 H * . ( 0 7> * 32 . * 9 . * 1 * ( 6.

5 & 2 & 3 / 1 2 J * 1 6.

7* & 2 * 3 1 *# 7! ! @ 3 ,.

5 1 *2 1 9 3 * P 6 A ( .

32 .?* , * 3 , * 1 > 32 =3 33 6 , 2 * 1 3 ** * ( 6 * ** 3 * , * 6 + * 6.

1 , , ! 6 F * ( , . 1 3 ** ** *J * 3 , * 11 * 6 * ( > 32 * 1 * 1* ( 6 * ** 3 * ,

19

7 ,

,* 1 9 3 * 6 , 3 2 # K L * 11 2 ,

* ** 2 ( N , * , 3 3

* 6 * ( 2 N , ( !J K6L 6 3 1 3 . ( , 1 3 , * K; P * L ( , * 3 j3 . , * * ( , . 1 3 ** ** * ( * _ , 1 ( > 32 N J K3L 1 * 11 , , 1 * 3 * 6 2 1 3. ( * 33 ** 6 * 33 , 3 , *? 1 ( 3 1 2 , * 1 * 1* ( 6 * ** 3 * , " ( 3 * * 3 K6.

L ** 3 ( 2 , * ( N 1 2 J 6. 7 , *

** 3 ( 2 N 3 3 , . 1 3 ** **

* 6 * ( ( . 1 2 1 3 * 11 *J 6. P 6

12 ( 2 , ( !

3 3 6. , 1 3 * ( 1 3 6 * * . * 3 N 1 ( 3 1 * ( , 3 3 ** * 3 * 3 3 , *

1 9 3 * , * . + * 1 ( 3 , * 6 3 *3 K, 3 3 F * N , * * ** % LJ 1 9 3 * 3! 3

* 3 , *3 P 2 N 3 3 1 ! * 3 3 7 8 3 3 * * ; 71 * * ( , P * 2 , ' 3 2 7, 3. ( H 07 * 2 : 8 ( 1 3 , K H 3

L C 1 , 2 , K % A H 3

L !

N 3 3 6 + : ** 6. .

* ( * 3 1 3 . 6 , ( 1 3 , * 3 3 * 32 2 * 1 the two target provinces: Â&#x2030; 7 1 , ** 2 32 1 , !* 1 * 3 1 3 H 3

3

1 1 23 1 *? * , ( ** * Â&#x2030; 7 ( ( * 3 N 1 * P * " 3 * & 6 .

2(. ** * , 3 1 3 . 6 , * ( 3 , * Â&#x2030; - ! , , 6 * * .* 6 * ** 3 * , 3 3 * 3 * 3 * 3 1 3 & 6 .

1 * , =3 * H 3

; 71

P * Â&#x2030; 7 1 3 N * 11 * * 6 * ; + * , ( N * 11 *

71

Â&#x2030; & 2 ( 1 3 N 1 ( 3 4 * *3 ** !* 1* H . ; A

P * Â&#x2030; N 1 ( 3 4 * .* 3 6.

N * 11 ; , A H .

6. " 3 G ( P * 1 % 1 * 41 3 6 + : .

Â&#x2030; N 1 3 * 11 P * * 41 3 6 ( . ( 32 6. .

* .

1 9 3 * 1 , ** , * ( , 41 32 .

1 3 * 2 4 * ( 32 . 1 * 6 , *3 ** *

3 1 3 .

1 ! , * 1 * * * 6. * , +3 3 * 2 D ( 6 * ** 3 * , O , * 3 *

Planning and Performance Management

* 3 , . 5 & * 11 * 6 1 # K L 1 ( 3 , , 2 *J K6L 3 , 1 ( 3 J K3L 3 3 ( 6 ( 2 * .* 2 *J K L * 6 2 * 2*23*

Local Government Regulations 1 3 , . ( !* 3 1 3 , * 1 6 F D . 1 6 3 * 3 * * 1 , * * 3 3 * * 2 , 2 * 5 & * 11 3

20

, 2 1 , 3 ( 7 , * M H 3

* 1 6.

- ; !?* *23 ( " *1 * 6. * ! , 1 6

* 6* 3 1 3 ** ( 8 , 3 , 2 * * 69 32 * # K L ! .* * ( , , 2 * 3 ,

2+3 2 ** 2 ( `6 * 1 323 ? 4 1 * ( 3 , 2 *J K L *1 ( 3 , * ! * 3 3 .* * * ( 3 , 2 * 1 6 3 * 3 *J K L 3 33 ** , , 2 * 6. 1 , 3 * 2 , 2 6 * ( 3 , , 2 *

9 3 * ( 1 , 6 # Â&#x2030; 3 2 ( 2 ! , , 1 3 , 2 * ! , , 1 * 3 6. ; 11 * K5 3 ( C 0 @ , *L 1 23 1 2 3 ** 1 * ( , , : 2 * * 7 1 3. 1 1 3 , 2 * * 6 1 3 Â&#x2030; * 6 * ( 3 ! , , 1* 3 , 2 * ( 2 3 * " 1 ' * C 6 ! " 6 ,, , ! ; * 1 323 3 , 2 * 2+ .: Â&#x2030; & 8 1 3. * ( 3 6 1 6 * * .# K L `' * , * * 6 . ( 1 1 1 , * , 3 , 2 *?J K L `5 1 , ( 5"@5 * 11 2 , 1 23 1 2 3 , 2 *? Â&#x2030; 41 * ( 1 , 3 3 , 2 * ( % * 3 * Â&#x2030; 1 32 ( * ( , * ( 3 , * ( ** ** ( 3 , 2 * - 5 & * 11 * * 3 * , * 3 2 , 41 , !

1 23 . ,

2 ! , , 1 2 ! , , 1 3 6. ; 11 * * D * 4 * ( 1 , ( 3 * * , , 3 , , . 8 , 1 3 ** * * , , : 2 2 , 2 * 3 * , ( 3 , * ( 3 6.

3 , * , . 8 , 1 3 **

Local Government Performance

* , * *1 * 6 ( # K L * , 3 , * , 6 * 3 * 3 *J K6L , , 3 *2 2 , *J K3L , , 2 * 3 *J K L ( * , 3 3.

-

1 2 ( , . 3 : 2 ( 3 , * * 8 * 1 , , 3 3 1 3 . 6 , 3 , * 3 32 , , 2 ( 1 ( 3 * 3 3

, 2 *.* ( 3 , 1 ( 3

* 6 1 1 6.

3 , K"" P %j AL * . * : 6 6 ( 1 2 , .23 D * 1 3 3 =3 * * ** 2

, 2 *.* : * * 3 2 6 * * 2 1 *

* 3 =3 * * ( , 733 , . 5 & * 11 * 1 , ** **

, . ( ! ( 3 , 3 32 .* * 1 2 , 1 ** 6 1 3 ( 4 *2 , , . 1 2 , D * Findings from this work suggest that the system is cumbersome and complex; that benchmarks are not set and 1 ( 3 * * 33 . 3 * * .J 1 ( 3 1 * * 6 F 6 ( > , , 3 * > ( * @ 3 2 * 6 ( * 1 (. ,

*.* 3 6 , * : , 1 * ( 1 , ( 6 3! 3 , *

Other Surveys and Evaluations 5 & * * * 11 , 2 * 6 ( * 3 ,# $ % ! & ' (

) : with a view to helping government to formulate guidelines ( 2 ( 1 1 2 5 & * 11 ( 3 * , 1 *3 ** * , 0 * ( ; 11 * 3 3* * 1 2 * $ *

+ ,* +

# F 1 * 6 *

, 6.

G5 < ( 4 1

3 2 * 2 * 3 * < 3 6 * ( 2 , 3 , 1 ( 3 7F 1 * * !

G5 3 2: * 2*( 32 * . 3 1 26 "" %j A 2

21

3 1 3 . 6 , ** 3

G5 / ( " 1 2 " 3. * Q * . ( G 9 H | ,. ! 3 3 * ( G5 7* * / * 3 * * 3 1 3 . 1 1 * ( 3 . * .* * 3 * G5 / * * 1 * 6 .

3 3 , ( + *J ** ** . 3 . ` 3 ,? 1 3 *J , , 2 *3 * .* $ - .

)) /"0112: DSF support helped , * 6 F * , * ! ** * ( * * ( 3 , 1 ( 3 2 J 2 ( 3 1 3 2 * ( , .J 2 ( * , *

* & & = *+ >$ This system has been working quite well and producing useful ( 2 , 1 6 3 + 3 ( * 6. * * , *2 2 * 3 3 * , 3 * 1 6 3 , 0 6 3 3 * . * ,

( D 3 , *

6 6 , . ( * 3 * 5?* 6 .

1 3 1 * 2 . ( 2 5 & * 11 * ( 6 3 * 6 * , > 32 =3 3 3 6 * . ( + 3 . % ** * 3 * 3 1 ( M ** ** * ( 3 1 3 . 6 , ( . .* * *

3 * 3 1 2 + 3 1 * 3 6 1 3 * * 6 * , 3 % #

5 , 3 * ( . ( 2 * .* 3 3

5 & * 11 O % 3 1 * ( 1 6 3 * 6 ( .* 3 , 3 6 * * ( 32 33 ** K , * * 3 L 6 * * 3 * 33 ( , * 1 . J * .

3 32 * * * J 1 3 *

Sub-national Statistics

* 1 9 3 3 6 2 6 QP5" K 5 & * 11 , &77L - ; ! * 11 ( / 2*23* 7, 3. , 3 3 * *1 * 6 ( , 3 32

! 3 3 1 , D . 6 . ( * 6 2 * 2*23* ( 3 3 * ! , * , ( * 2*23* 6 , * 3 1 9 3 4 * 3 *.* * 3 , * 4 1 3 * ( ( 3 , * K% 1 3 * O 3 2 * * 3 *L N 1 * 3 # D *2 * ** ** * *J 1 2 , , 3 *( ** ** ( *( 3 * *J * ( , 1 *J ** ** ( * 3 * 2*23* 2 J ** ** ( * 3 * 2*23* * 6 2 *J ** ** (

( * 3 * 3 2 *J ** ** ( 3 2 ( * 3 * 3 2 *J + 1 3 2 * 6 *

( ( 1 9 3 7 1 3. 3 2 4 * 3 1 ( 3 , 1 3 , * 3 , * 3 2 * 3 . 6 , *3 ** ( 1 2 6. ( ! , , 1 * 6 2 * 2*23* * 6. H 07 1 23 1 2 ( ! . * 2*23* , 3 * 7 2 !* 1 * . , 1 * 2 * ( H 07 ;" * * 1 23 1 2 , 3 , * '4 1 * ( 1 3. 3 2 * * 6 7 ( 3 2 * 3 6 * 11 6. ** * 3 ( , 2 3 6 , * $ + 3 # 3 * * * * 3 *.* * ( 3 32

+ * 3 * * 1 3 2 J ( 3 * 1 . 3 *J 3

3 ! 1 , 6 + * > $ ) 4 # / 2*23* 7, 3. * ** * 1 *

@ 3 3 , * - ; ! 6 * 1 3. . D ( 3 , * 6 3 , 7 . 3 , * 6 + * 6. 7 , *

22

* 2*23 *.* 6. * , ** ( 3 1 6 . 6 . ** * * 11 1 .

6 , 6 6. ** , 3 3 * 3 1 6 . ( * .1 * ( * 3 $ 5

! # 3 * * * 3 2 1 *.* * ( * _ , * 3 3

$ !

3

# 5 * 3 * 6 * .

1 6 3 1 D . . 6 3 D 3! . , ( 6 3! ( 21 * *

,

, ( + 1 $

: Central government should require provincial governments to collect, transmit ** * 3

Support OfďŹ ce for Eastern Indonesia N(' * * * + 3 * 3 * * 3 ! , !* * ,

> 32 ** ( 1 2 * * * * * , * , 3 ! , ** * 6 , 6 , * !* , ( 3 1 * 1 , 1 { * ( * ( * *

* 33 ** * 3 ( 3 * 32 3 , N(' ?* !* G * 0 * ( ;7""'57 3 3* PGN*

3 * ! * ** 2 * 3 > 32 ** * 1 * * * . 1 3 * 0 5 1 4 6 2 , D * ( * 3 * 3 ** + 6.

G ( * * ,, , K

L

Knowledge Exchange and Partnership Promotion 5 , A N(' ?* ' * * , '43 , K; L ( 3 . H ! ** 3 2 1 1 1 { ( 43 , ( ! , 1 2 ( 3 1 * 1* H

1 1 * ; , . 33 ** * ! , * 3 * F * K 3 , * * !* 1* * ( * ( ,L 1 ! * ; 1 3. *3 ** * 3

G ( * J H . ( H ! ** J 1 * 2 * ( ; 11 * H * . ( & 3 J 41 * ( 3 * 2 * 2 1 1 9 3 * " 3. *3 ** *

, 1 , 1 6 3 41 .* * 3 * 3 ( 1 6 3 * 3 . > 32 **

** * 3 : 2 N(' ?* 6 , , : ; P * 1 3 1 1 , * 2 * *

* 33 ** * ** *

* ( 3 ** , .

7 * . . *

M 1 3 ( * * 2*+

.

3 ; P * 1 , 1 323 * 1 ! , ( 3 1 * * H O 1 3 ( * * .

11 * ( ; P * ! P * * ** , * ( * 11 ( 3 , ( ( ; P * * * 3 ( ! , ( 1 3 N(' !* 1 ( ; P * 3 6 * H .

* * , 41 * ,

. 32 ! ( * , , 1 1 323 * " 23 1 * ( 1 3 * 1 * 3 ** * 32 ( 3 , PGN* 2 1 1 9 3 * 3 !* 1 2+ 6 ( * 33 **( 3 2 2 * 1 , 3

* 3 6 3 1 , * N(' * , * 11 2 , 1 23 1 * 1 * 2 2 * * , , ( 3 3 , *1 1 * 3 . + ; P * , :

Support to Development Partners N(' 1 , ( 3 2 ( 3 2 ( 2 2 1 1 * * 3 * 11 ( * * 6. ! 6 * * ( , 3. ( 7 *7 5 / 57 - ; !

* * * * * * 6. 6 2 1 9 3 * * N(' 3 2 * 11 1 3 , 3 2 + 2 1 1 * 3 2 * 3 * * 3 ( 3 2 , , 2 ,* 1 3. *3 ** * 9 + * * N(' * * 1 1 3 , * G * * 2(. , * 3 2 2 ,* 2 1 1 *

23

N(' 3 2 1 3 2 3 3 2 * * 11 ( " 6 3 '41 7 .* * / 1 3 . 0 : 2 K"'7/0L 1 , * 3 ( 3 2 ( 1 3 , * 1 K 41 ** G ?* 5 3 1 * ( 3 + 3 ,L 3 * . 1 23 1 2 "'7/0 H ! * 3 * , . ** 2 ( "'7/0 P 1 * "'7/0 6 3

6 !

N(' 1 * 1 * 3 , QP /'& 3 PGN * + * 1 2 (

3 . 6 * 1 . 1 2 , 1 1 , 5 * 3 " H * 1 , * * 1 , 2 , ( 3 * 6* * * 1 3 5 * 3 H 9 H * * 3 * 6 * ( * 3 * *

The Eastern Indonesian Forum N(' !* 3 * .

' * * & , * ! ( ( * ( , 3 * 3 . & ?* * 1 , 1 3 6. 5 H 5 6 KH 6 ( P 2 " " * ( * 7** 3 2 ( H * 3 *L 2 * ,

. 1 . 1 9 , 3 ( 3 *3 ( 7 , *

& ' * * & 3 ( 3 * !

 / 6 2 ( 5 1 '> 32 **Â&#x201A; * 3 * 4 1 * ( > 32 3 1 * 1* 6 , 3 * 3 . & 6 F 6. 1 1 3 3 1 * *

' * * & ,

2 2 ( " ( ** 5 - H ( 0 ( ;7""'57 G ( 3 0 * ( ;7""'57 & * , A

* ( ;7""'57 ( 3 * * , , , 1 , *1 3 . 1 , *. 3 : 2 6 1 3 , 3 , 1 , 7 6 ( , 1 2 * 2+ , ;7""'57 & 2 ,* 1 6. " 3 0 * P 2 5 1 " , / * 2 * KH * 6 , *L ! H .

Eastern Indonesia Researcher Network / * * * ( 3 * ! , 6 * 1 N(' * ( 3 ( 1 (

' * * @ * 3 P ! K L * 3 3 *2 ,

7 * * G 3 @ * 3 " * 1 , 1 , ( . , * 3 * " 23 1 * !* 1 * 6* D . * 4 * 3 , * ( 9 * 3 , ( 1 3. ** * 3 , 3 2 , 3 3 6 * 2 3 * 3 3 1 3 . 6 , N(' * !

* *2 ( 3 3 * 1 1 * 6 3 * ( * 3 ' * *

Special Program for Papua Despite some early delays in agreeing the terms of reference and work programs for the three senior advisers,

1 3 " , ( " 1 * 6 , . 6.

G ( " 1 * * 1 6 3 + 3 1 1 ,

3 * 32 3 6 2 * 1 3. 1 2 3 * * 1 ,

G ?* @' "' 1 , * 6 1 , ( 6 3 23 ( " 1 0 3! ( 3 . , , , * 41 3 2 * 6 ( G ( N(' j5 & * =3 ** **

* 33 ** ( * 1 ,

SOfEI Review and Plans for the Future 5 , P 6 5 3 6 A N(' * 6.

5 &?* H , / F 6 3 * ( 3 3 * , , * 3 5 &?* , 69 32 * ( N(' ?* ! * * ( 6 . , * 11 2 ( 5 & 1 2 * ( * !

1 3 12 * ( 3 , * 2 * 3 * 3 . 2 1 1 * , . 1 * 2 0

, , * 3 3 * , , 1 2 , *1 3. ! 6 * * ! * 3

6 , ** & 6 . ( , H , / F 5 & , / F 11 3 2 ( H , / F * , , N(' ( 5 & 6. 5 3 6

24

3 * 6. , / F , 1 ( 3 . ( N(' * > 7 6 8

1 3 , ,

* 6 6 6 1 3 2 N(' 6 3 1 3 * 6 N(' ?* ( & , 3 * 6. , / F * 1*

6 ! 6 N(' ?* * > 1 + Q ( . * 6 1 ** 6 + 3 '4 3 2 5 3 1 * 2 * * ! . * 11 2 1 * 5 & , * 1 3 3 , / F 2 , N(' * > ( * 11 * ( ' * * & ! 3 * * 1* * 6 * N(' * & 2 , * 2 6 ! *

' * * , '43 , & 2 K| . * ; L * *1 3 ( *

, 6 3 6 * ( ; ( * * N(' * * 3 + 3 3 * ( 2 1 1 * / 57 * * * 3 3 * 1 3 * 11 (

& 2 * 41 3

& 2 6 3 1 6

Knowledge Management N * ( ! , , ! ( N(' 5 & * 6 * 1 * 2 ! , , 1 . 6 3 * # + * 2 11 ( 5 & - ! " & 6 .j H 3

* 3 * ( 5 &?* ! , , ! 11 6 , J * 3 ! , , 32 2 *

, 2 , ( 3 * 4 * K H .

L 7 D * ( , , . 5 & 3 * 3 11 , 6 * 1 * * 3 1 * 33 * ( ( 1 ** * 3

+ ( 3 : 2 6 * * * , 3 * 2

( 5 3 ( / 1 3 . ; , C 3 G " ( 3 ' 2 H * . ( 0 7> * ( 3 1 , 3. ( * 32 . . 6

5 3 ( H , ( N * * / 1 2 * H * .

6 * 3 * ' , * ; * * * 6 3 6. 1 1 * and is accessible on the internet at F1#jj *+ * ,j 11*j *( j3, 6 j 3, 5 *3 ** *

, 3 3 , * * 6 . ( 1 * . " 23 . * 3 H . ( 1 ( 5 & 6 * * ! 1 3 6 2 * , 3 7 ,

,* 6 * 6 1 1 1 * ( * * 1 * . ( 3 * 1 , 3 : 2 F 2 * 1 * + < 2 . 2 .

7 * , 1 2 , 1 * * ( 1 3. 6 (* * 3

* : 1 3. 1 3 2 * ( 5 & * 11 ! ! ( 1 1 * * * * * 6 1 (

5 & 6 * * 3 3 * 6 2 * 3 3 .

25

26

WORK PROGRAM 2009-2011

11 5 & - ! " 3 * * , 3 ( !

3

32 2 * " * , ( * * , * * * * 3 * 6 ( *3 12 * ( 32 2 * * 11 2 , 2 * * * ( ! 1 *3 ** 6

Strategic Framework The 1 3 1 1 1 * ( 5 & * * 11 3 : 2 , (

G ( * 1 23 . * * 1 * 1 * 3 . ( 3 2: * T 5 & F 1 * * 2*(. * 1 1 * 6. ( + ,

roles, which are designed to help the government to improve: Â&#x2030; " 3. 1 1 2 * * 1 *

demand for and supply of local public services; and hence the 1 2 ( 3 , K L 33 6 . 3 2: * 3 , K 1 L 33 6 . 3 , Â&#x2030; G 3 3 1 3 . ( 3 : 2 6 3 * 6 2 * Â&#x2030;

: 2 , =3 3. > 32 ** ( development assistance %

5 & , / F * * ( 1 .

23 *

5 & ! 1 , * ** .# K L 1 6 3 * 3 J K L +*3 3 : 2 J K LJ , 3 ( J KOL 1 , 1 ( 3 *

( ! 1 1 * 6 6 * ( 1 . * 2+ 6.

5 & / * 3 , * 1 1 * ( 5 & , ( The framework is also informed by the discussion of the general governance 3 : 2 3 4 3 3! , * + * 3 * 6 3 *

6 3 . * * 2 6 ( 1 *1 3 * ( , , 3 J * 3 * , +3 6 + * . 6. , ?* 3 : 2 1 , 6

2 3 *

%

* 1 1 * * ( 5 & HNQ K1 23 . 2 > 32 **L ( 3 . * , ! / K5 3 6 AL

5 & * 2 * 4 1 ( .

3

* 1 2 1 > 32 **

7 * . ( * , 3 ( ! * * ; 4 6 ( 6. *3 ** ( * ( * J ; L5 & - I '

Demand for Local Public Services

Â&#x2030; 4 * * , 1 * 2*( 32 , 3 2: *

3 * ( 3 1 6 3 * 3 . Â&#x2030; * 3 4 * * 3 1 2 3 * ,, *2 , 1 ( 3 3 1 3 * * than that of some poorer countries in the region

Â&#x2030; 7 , * 6* 2 1 1 2 ( 3 2: * * , ** 1 . ( 1 * * 3 . Ă&#x17D; - ! 3 2: ( 1 6 3 * 3 * Ă&#x17D; - ! 3 2: ( 3 , 33 6 . Ă&#x17D; - ! 3 2: * , ( , 2 3. ( Supply of Local Public Services

Â&#x2030; * , +3 1 32 . ** * * , 3 K* >L 3 1 1 * * 3 1 * K 3 3 . =3 * 3 1 * L

Â&#x2030; * 6 3 6 3 K* >L 41 K 3 L 2 3 1 *1 , K 3 2 . =3 * 3 1 * L

Â&#x2030; 3 1 * * K 3 . 3 * . 6 6 L * , . ! 3 K 3 * !L

Ă&#x17D; - ! 3 , 3 1 3 . 1 * ( 3 * 3 * Ă&#x17D; Q *1 * 3 , * 3 1 * Ă&#x17D; Q 1 * * ( * 3 1 6 3 Policy Framework for Supply of Local Public Services

Â&#x2030; * 1 6 * * , 3 j 3 ** , 1 2 ( 3 : Â&#x2030; Â&#x2030; Â&#x2030; Â&#x2030; Â&#x2030;

( 32 * C 3 * = , * 1 . 3 : 4 ** , * 3 : C 3 * 3 * ( D . 3 3 *( * 1 3 * * 3 2 *

, . *.* ( 3 ( * 3 + 3 * 3 1 3 6 *

Ă&#x17D; - ! 3 , 3 1 3 . 1 3. * , Ă&#x17D; - ! 3 ( K 1 L * 11 ( K L 3 33 6 .

Overall Outcome * =3 3 2 , 1 * 3 1 6 3 * 3 1 * Generalized Factors Underlying Result Â&#x2030; * =3 1 33 6 . Â&#x2030; * =3 3 2: Â&#x2030; D 3 3 , 3 1 3 .

DSF Strategic Framework

Â&#x2030; Â&#x2030; Â&#x2030; Â&#x2030;

" 3 , K L 33 6 . 3 2: * , 3 2: " 3 , K 1 L 33 6 . 3 , ; 3 , 3 1 3 . * 3 1 * ; 3 , 3 1 3 . * , ( 1 3 * , * 3 1 *

* , 3 ( ! 41 ** * 1 1 * ( 5 & * (# K L ( 3 1 6 3 * 3 *J K L * 11 . ( 3 1 6 3 * 3 *J K L 1 3. ( !* ( * 11 . ( 3 1 6 3 * 3 *

28

Demand for Local Public Services 7* 3 * * , 1 * 2*( 32 , 3 2: *

3 * ( 3 1 6 3 * 3 . * 3 4 * * 3 1 2 3 * ,, *2 , 1 ( 3 3 1 3 * *

( * 1 3 * , 7 ,

,* * 11 3 32 . 6 41 3 2 * 1 ( 3 2: * 3 ( * 1 6 3 3 23 * / 2: * * 41 ** , ** 1 . ( 1 * * 3 . * 4

* * 3 * 3 * 3 3 3 . 3 1 * ** 1 3 ( 3 , 6 , * C 3 2: 3 6 , ( ! * 1 * =3 3 2 * 3 , * 1 * 3 . 3 * * 1 * 3 * 3 * N ( .* ** * 1 6 6 ! 3 2: * ( 6 . ( * 3 * ( * , * ( 33 ** 66. 3 , * ( 1 * 3 .

Supply of Local Public Services - 3 * * 11 . ( 3 1 6 3 * 3 * * , +3 1 32 . ** * * , 3 K* >L 3 1 1 * * 3 1 * ` 3 3 . =3 * 3 1 * ? ' 3 2 * 4 1 7 + * * ,

3 *2 2 . } 41 3 2 * * 6 0 1 . =3 3 * 1 6 3 *1 , * * * 1 3 2 3 * 7* * * .* * 3 3

! . 1 1 6 3 * 3 . * 1 =3 3. *1 ,

* 2 * 3 1 6. 6 3 * 6 3 K* >L 3 1 41 ` 3 2 . =3 * 3 1 * ? & * 3 , * 3 * 3 2 * *1 6 } ( 6 , , * 2 M * 3 *# * . 3 * ( 3 4 3 2 J *j * >J 1 *J 1 6 3 =3 6 , 6 2 3 * 32 C 3 , *1 , * 2 * ( ! *1 , * 3 * * 3 * ( * 3 *1 3 3 2 * K 1 3 LJ

KM 1 3 LJ , 3 KO 1 3 LJ * 3 6 * , K 1 3 LJ * . , K 1 3 L 43 12 * * 3 2 O O} ( 3

} 3 * * * ( 3 * * 3 1 * * * , . ! 3 C 3 , 1 3 12 * ( 3 * 3 . , : 2 * K/ N*L 3

1 2 6 : 3 2: * 2 * * C 3 , * 1 3 / N* 6 ( 3 ** 3! , ! , ( , 1 3 ** * / N* ( . ! * * . * 1 23 1 . , 3 * * =3 . 1 6. 3 , *

* 33 * 6 * , ( * 6* 3 5 3! ( , : 3 2: 3! ( 2 2 6.

3 , 1 3 * * 3 1 * 3 * * 6 * 1 6 3 * * 3! ( 33 6 .

supply of local public services is hampered by weak local government capacity in the provision of local services , *1 * **

Policies Governing the Supply of Local Public Services

* 1 6 * * , 3 j 3 ** , * 1 2 ( 3 : ( 32 * 3 , ( ! ! * 41 3 3 , * ( 3 : 2 # ( 32 * , 3. *!* 3 3 *!* * * !* 3 1 * * 11 * 6 1 6. , , , * 3 * * C 3 * = , * 1 . * 6 3 : J 4 ** , * * . 3 : J 3 * 3 * 11 * ( 3 , , 4 , * 2 3 3 , *? authority to create their own taxes, charges, and fees, and local government revenues will be restricted to a list ( 6 * * ( D . * 3 3 *( * 1 3 * * 3 2 *

, . *.* ( 3 ( * 3 + 3 * 3 1 3 6 * 3 9 M -

* * ,, , 6 * , 1 6 3 41 .* * * 3 , * * *1 1

( ( 6 , * ` 2 41 * *? ( , * 2

29

, *( * * , , 1 1 * , * * , 6 2 * 3 * ( ( * * 1 * * =3 2 * . , 3 1 ( 3 3 2 * *( *.* 6 3 * D * 3 , * N * * ( ! 3 , 3 1 3 . 1 3. * , ! 3 ( K 1 L * 11 ( K L 3 33 6 . * 6 6 , . ! 1 33 6 . * =3 3 2: D 3 3 , 3 1 3 .

3 * 1 * 3 1 6 3 * 3 .

Strategic Emphasis

5 & F 1 * ** * 3 1 4 1 6 * , 1 2 , 3 , K L 33 6 . 3 2: * , , ( 3 2: J 1 2 , 3 , K 1 L accountability to central government; building local government capacity in service provision; and building 3 , 3 1 3 . * , ( 1 3 * , * 3 1 *

Work Plan Activities

32 2 * * 11 ! 1 < *3 6 6 . 6 * 3 33 , ( 1 . * *21 6.

5 & / ** ( ! . ** * , ,

* , 3 ( ! H * 32 2 * 3 * , +3 *2 2 6 , 3 1 * 732 2 * 6 * * , 3 * (

Public Service Delivery

G ( * * 6 ! *1 3 (. 3 . ( 32 * 3 , * * 3 .

* * 3

. * 1 ( * ( 32 *J * , , . *.* ( 1 6 3 * 3 1 * ,

H * . ( 0 7> * 2 .

5 & * 11 ( 32 2 * * category, namely: $ 6 . # * * 11 ( ( 2 ( * * * 1 3 * 3 ( * 3 . ( 1 2 * 3 * 3 * $ 7

$ ' !

: to begin with, this will 6 3 3 * 3 * * 3 , * $ +

: this will entail a review of public services in border regions leading to 1 3. 3 2 * 1 ( 2 32 1 ( *2 2 6 ,

* 32 2 * , 3 .

1 1 * ( 5 & 3 * 6 * , 3 * , +3 3 (

, ?* 1 , ( 3 : 2 .

1 2 ( *3 , 1 2 .J .

3 . 1 1 3 2 * ( 1 33 6 .

Fiscal Decentralization

* 5 3 G ( & *3 ; 3 H * . ( & 3 * 2+ ( , + * 3 ( 32 2 * ( 5 & * 11 # $ $ $ $

'

+ 5

% , 5# + !

.

+

!

.

7 ( * 32 2 * 3 33 6 . *1 3 * ( , , 3 * 3 * *1 3.

. 3 * , +3 * ( 1 3. 3 3 1 3 . 6 ,

Governance Reform " 1 * 6.

H * . ( 0 7> * 32 2 * * , ** 3 , 3 1 3 .

1 * ( 3 * 3 * 3 , 3 1 3 . 1 3. * , + * 6 3 ( 32 2 * * 3 , . * *3 6 ( ,

30

$ (

: this will involve various forms of training and development ( 5"@5 1 3 * 3 3 . 1 * 2 * ( % 1 3 * $ 8

: here support will be provided for a limited number of coursework * * , 1 , * * 3 * * * * !* 1* * . * 3 : 2 ** * ( * 3 3 3 , =3 * 3 * 3 . * $ *

# * 11 3 3 1 3 . 6 , * ** ** * ( 3 2 , 3 * H 07 K

L 1 3 3 2 , 3 * K

L pilot capacity building programs for selected

* * : ( ( 3 1 3 . 6 , , * * 3

, 7/P 1 .* 6 * , ( , 2 , * 3 * 11 * * 12 : 1 3 * 6 ( ( , .* & * 11 2 * ( , , 1 3 3 3 2 6 41 2

, , 1 3 3 2 * ( 5 & * 11 32 2 * 3 1 23 F 2 . 6 , 3 *1 3 * ( 3 : 2

( 3 32 * 1 1 * 5 & * , 3 ( !

3

6 2 . , 3 by development assistance to date, such as social accountability and to a much lesser extent certain aspects ( +*3 3 : 2 7 * * ,, * 32 . 2 * 6 ( 3 * . 6 3

,

, 2 , 3 3 , * ( 1 * j *2 2 *

Planning and Performance Management " 1 * 6. ; 11 * H 07 32 2 * * 3 , . .* 1 6 * * , D . , 2 ( > .1 * ( 1 , 6 , : 2 3 1 3 . !

. * 1 * 11 3 , 1 ( 3 , $ 6

!

# * 32 . 6 * *2 2 3 1 6 . > * ( , ( 6 F : 23 , 2 ( * 3 1 *1 2 1 , $ '

# @ ( ( * 3 1 , , 1 3 3 3 1 3 , +*3 3 1 3 . $ 7

# / 6 2 , , ?* F 1 * 3 , *1 2 * * 32 . 6 F ( 6 F , 1 3. ! , ( , 1 $

# * 32 . 6 3 1 3 . ( 1 1 , 6 * $ +

# * 32 .

1 ( 3 , 1 ( 3 2 ( ! *2 2 : 2 ( + 3 32 .* * ; ( 4 3 2 1 2 ( 32 2 * ! 1 3 ! 1 3 . * 6 1 * =3 1 6 * * ( 1 3 32 . 3 3 1 * K 1 2 L ! 6 ! * * 6 * , * 3 1 2 41 3 * ( * 1 ** 6 * 6 ( 6.

6 * ! , +

Important Features of the ACNs Developed to Date 7* 3 32 * 1 1 ( + * 6 3 ( 7/P* * , (

11 5 & - ! " ! 1 3 , 1 71

( , ( * ( 7/P* .

# / # $ First, further analysis of the topics set out in the work plan 3 + * , 3 * , +3 3 , ( 3 3 ** 3 3 *. ,. ,

* . 11

. + * 1 1 * * . ( 32 2 * 1 * ! 1 3 * 2 . , 6 ( *2 2 *1 * * , 1 * * 3 , * 3 3 0 * 3 , * * 6 7* * ,, *

* 6 **

2 ** ** 2 ** ( 1 , * .1 3 ( 3 * 3 ( , 1 , 2 ** ( * * ! * .* , , H * *

31

* * + 1 ** * 3 1 { *1 * *! * ( 2+3 2 ( ` *? ) & # # $ 3 * 32 *

! 1 3 , 3 1 * 6 ( 1 6 * ( 3 > 32 2 * .* ( ** , * 1 6 * * , ( 6 * * , 1 3. , * * .1 ( !

*

, * 11 2 * ( ( 1 3. , 4 * 6

> * 3 * ( 5 &

, , * * , 7/P 1 6 ,

. 6 (

** * - 6 * ,

* .1 ( 3 , , , , < 6 > 1 * ( , , . ** * ( 3 + 3 * 3 *2 3 ** . 3 2 ( 1 2 , 1 9 3 *

* * 11 3 3 * * ( , , 7 I & - I$ ( 7/P* 1 1 * 11 2 * 3 * 6 3 6 * 11 . * 1 *1 32 * 1 33 6 .

* 1 *1 3 * . *1 * 5 & * , 3 ( ! -

* * .* 3

* *

( 3

* ** * ( 7/P* * 1 * 1 * * , 32

, * *

.

6 ! 1 1 . 33 *

" # # "

$ Fourth, much more so than in the past, the new DSF work program puts 3 * 6 1 * * 3 1 3 . *2 2 6 , * * 3 ( 7/P* 1 3 3 2 6 3 ( ( ( 7/P* * 1 * * *1 * ( 5 & * * , , ( * , 3 ,. *( * 3 . * 3 ** .

3 2 ( * * 6 . % # & 8 ( . * * * , +3 3 ( , 3 3 2 * 3 3 , 1 6 3 * 3 . 1 * 7/P* 1 3 3! ,

* , +3 3 ( , *21 1 2 , , * * 3 * +3 2 * ( ( . ,

. . F 1 * 6 *2 2 : , . ( ! , 6 3 : 2 * 3 .

* * ( ( D *2 * ( , * * ( 3 2 * 1 5 & * 11 D * 3 3 * , !

& 4

1 ** 6 1 23 3 . ** * 6 ! 33 @ 3 , 2 ( 1 3 ( * 3 F * ( * , ( 1 * , , 1 3 . 6 * * , * =3 * * 2 F * ** 1 . 1 ! P ** ! * * * * 1 + * * 1 * 6 , * 3 D *2 * 1 ( *3 ** 1 ** 6 ** 32 . * , 1 2

ACN Illustrative Summaries * ( * 32 ( 32 2 * 1 11 ! 1 * 6 * * * , , # + * * , 3 * , +3 3 * 3 . ( 32 2 *J * 3 3 1 j 33 6 .J

1 2 ( *3 , 1 2 .J (

1 * * 3 1 3 . *2 2 6 , ( * * 6 .J +8 *. , * 6

4 *2 , 5 & * 11 32 2 *

Capacity Strengthening Program for DPRD

* 32 . * * , * ,

3 1 3 . ( 1 3 * 3 j 3 1 5"@5 6 * * 3 * 1 ( ( 32 * ( , * 2 6 , 2 , * , 1 * 2 H * . ( 0 7> * 5 3 ( C 3 G 7> * 5 3 G ( @ , 7 . 41 3 * 5"@5 6 * * 3 * # K L * 3 , * , 3 *.* 2 * , ( 3 3 *2 2 J K L 11 3 1 3 2 * ( * 3 , * ( 1 3 * 3 j 3 1 5"@5J K L 3 , : *1 3 * ( .

2 * 1 6

(

, 5"@5 , 3 *.* J KOL 3D 3 3 3 1 6 2 * 1 ( 5"@5 ( 32 *J K L 6 *1 * 6 33 6 3 2: * , 3 *3 * (

32

1 { * 1 ** * 6 * ( 3 * D 3 * ( *, ** *

F 3 1 ( 1 , * 1 6 3 * * F 2 3 3 23 1 23 3 . *1 3 * ( ( 5"@5 6 * 3! , * 1 3 .

* *1 3 * ( 9 6 6

3 ** . * =3 * 1 1 > 32 1 ( 3 H 7/P 3 * 1 2 , , 1 3 * * * ( * , 1 41 1 323 2 * ( 3 3 3 1 ( 3 =3 * 7/P * *3 ** * *1 3 * ( 1 23 1 . 1 * 2 3 1 , + 3 , * .

3 3 1 ** * 6 *.* 3 ( 33 6 . , * 6 3! , * 3 3 K6 ( D . ! , L * ( 5"@5 6 1 ( 3 , , * * 1 2 * ( ( * 11 ( , * , 3 * , +3 3 D *2 * ( 1 33 6 . 1 2 D 6 * 3 .

* 32 . * . * 6 3 * D * 1 2 , , 3 . 1 * , ( 1 * 32 , 9 6 , ! * 11 3 2 ( ! , *! * 9 6

Capacity Building for Regional Development Policy Formulation 7* 1 ( G ?* * ,. 3 , *1 2 * * 32 . * * , 6 F ( 6 F , 1 3. ! , ( , 1 * * 6 3 6. ** ** ,

* 6 . 6 . . ( J .: , 1 3. ! , 1 3 ** *J , 6 * 1 > 32 1 3 * ( , 1 * ( , 7 3 3 1 (

1 9 3 6 1 ; 11 * 3 1 3 . ( 3 32 .* * 1 3. 3 J 3

3 ** * 3 * * * 11 3 * ;. + 2 * 32 . ** * D *2 * ( D . < 6 , * < 6. ** * ( * 3 3 3 43 * & ,* ( * 3 3 3 43 * F 6 6 1 3 3! ( 3 3 11 . , 3 6 . * ( 32 ( 1 3 12 * ( D 6 * 3 1 * 733 , .

4 5 & * 11 32 2 * ** * ** * . . ( 3 , *. , *23 3 *. , * 3 . 21

32 2 * D *2 3 * 1 3 * * 3 * C ! * * 6 3 6 ( 3 *3 3 ( * , 1 ( 5"@5 6 * 32 2 * 6 . *3 6 * * 32 ( 1 5 1 1 , 1 ( 3 ( * 3 1 * * ( 57 * 6 ( , * 3 * D 3 5"@5 6 * -

: , 6 * . ( . 3 2: * 5 & '4 3 2 F 2 1 2 *. , * ( * * . 11 .

6. 3 , , 3 1 * ! 3 ** *2 2 6 * K ` ( 6 4?L

Socialization and Pilot Implementation of Joint Circular Letter on Monitoring of Technical Implementation and Evaluation of Use of Special Allocation Funds (DAK)

* 32 . * * , 1 , 2 ( *1 3 3 2 ( * K57 L 6.

6 F 2 : 2 ( * 3 ( * 32 . * * 6. 41 , * * 3 * (

/ 3 C F , ( 57 1 2 3 . ** 6. ; 11 * H * . ( 0 7> * H * . ( & 3 " 1 1 2 ( , 2 *3 1 ( 6 3!

> 32 ** ( 3 57 1 3 * 3 1 3. 1 * 3 3 , *1 3 * (

, ( 57 " , 2 * * 3 3 32 . * ,, * 1 ** 6 2 * ( * 3 1 3. ( '> 32 *1 , 2 3 3 ( ( * 3 . 3 3 6

1 33 6 .

33

Management Strengthening and Institution Building for Local Public Service Providers

* 32 . * * , # K L * ,

3 1 6 . ( * 3 1 * ** ** 1

1 ( 3 6 * ( *1 3 * ( , *2 2 6 ,J K L * 11 3 , 6 4 6 + , * , 3 12 * ( 1 1 ( 3 * 3 .J K L ( , * K L ( * , 3 , *2 2 6 , ( 3 * 3 .

1 *J KOL 1 32 1 ( *3 , 1 2 . * , 3 , *2 2 6 , ( 1 * 3 .

4

3 3 3 1 6 . ( * 3 1 * * 3 * * 32 . , *

( * 3 1 * * 3 ** . 3 2 ( > 32 ** 1 2 . . ( * 3 * -

* * =3 * F * *3 ** ( 6 , 3 * ( , . 3 * 2

7/P 3! , * 1 3 ( , 2 * ( `* 3 ? . ( * 1 .* * * ( * 11 2 , 3 * 1 1* * K1 23 3 .L

, * , * ( * 3 1 * * 6 3 F * 3 *2 , * 3 , *2 2 6 , > 32 D 6 * 3 .

34

DSF EXECUTIVE *

" # Steady progress has been made throughout the year in 6 , > 32 =3 * 3 * 5 & '4 3 2 7 *1 3 * ( *2 2 6 , 3 F 2 # , : 2 * 3 * , 3 , * *1 * 6 2 * * 6 2 ( .J 3 3 2 2 ,* ! ,J * 32 1 3 32 1 ( * >J 1 ( 3 , D .

3 *3 1 J , : 2 3 * > J 3 1 , 4 2 * 3 , , , , J 1 2 , N 1 * 1 . 2 ( * F * * ( 3 2 * 1 ( $ * = , 3 , * , . * (

3 2 ( 1 * 2 * ( 5 1 . " , H , ( 5 & G C * 7 * ( * , 2 K* 3 * L , 11 * 1 * 2 * 6 * 3 ( 3 * 6 2 ( * 3 *

# $ 5 & '4 3 2 * ( 32 , * * 3 * 6 . 6 41 3 2

6 * 3 * 0 3 3 1 3 . * ( . 2 :

, ( 4 *2 , 32 2 *

1 1 2 ( !

1 , 7 * 6* 2 3 * 5 & '4 3 2 1 9 3 * 11 32 2 *

( D 2 * 3 * , , : 2 * 3

* 6 * 6 *

5 & '4 3 2 over the last eleven months is designed to allow for such expansion, and it

( 3 *2 3 * , ( 5 & 1 { ( 32 2 * ' )* # & " 1 2 * ( * * 6 * , , ( N(' ( 5 &

*!* N(' * , ( 1 ** 6 * { ( , ( ( * > * , +3 . 3 6 3 * ( * , 3 3 * ( * 11 6. 1 * -

* 6 1 ** 6 1 3

3 ( '4 3 2 5 3 * 6 , ( * * > * * , +3 . 1 N(' 3 1 3 . 7 3 . 3 3 / 57 3 * * 6 ,* 4 * 2 1 41 3

N('

36

RISKS AND CONSTRAINTS

+ * , +3 3 , * ( *! 3 * that face the DSF - some of which are not peculiar to the DSF and apply to 1 ** * 3 , . & * *!* ** 3

: 2 ( 5 &?* > 32 ** 1 2 J * 3 *!* ** 3

, ( 41 3 2 * 3 3 , 3 * 3 ( J

*!* ** 3 1 9 3 * , 4 3 2 1 2 J ( * 3 , . ( 3 * * * (

3 1 3 2 * ( , 3 1 * 3 ! * =3 , , 3 .

3 , J +8

* 1 * 6.

5 &?* , 3 * 3

Aid Effectiveness 7* 1 ** * 3 * 6 3 * * * percentage of government spending, and as demand increases from donor parliaments to see tangible development results from their assistance, so the 1 ** * ! * 3 ** * 3 > 32 * =3 . 7* . 2 * ( + ( 3 : 2

5 & * 1 3 1 * ( =3 3. > 32 ** , * 1 6 3 1 3 2 3 2 * 3 * K" * 733 ! L ! / K AL * * `, 1 1 * 3 3

number of ! ( * , * ( *? K1 L I # $

* * , +3 * 32 * ( 3 . K * 3.L 33 * + * 6.

1 3 2 3 * 3 1 4 . ( 3 ( 1 9 3 * , 4 3 2 1 2 2 .J * 3 6. 41 .* =3 3 * 3 * ( > ( * ( 1 9 3 4 3 2 J

6.

1 3 3 , > 3 * K * ! , ! L 1 23 1 * * 1 2 * 1 * * 3 6 ( ,

1 . 3 6 2 * , . ! N ; # # " & # $ * 1 * 6. > ( * ( 1 9 3 4 3 2 2 . 3 3 * ( , 4 3 2 * 1 *2 2 : 2 , , * * 1 *1 3 ( 1 * 11 / * 6 1 3 * F 3

* 1 3 2 * 6. * 1 2 * 7 * 2 * * 69 3 1 ** * *1 D 3! . * .

2, 1 2 * 3 *1 , * * 6 3 6 * , + 3 . * ( , * - ; !

1 3 1 3 * * ( 6 3 ! , 2 G 1 3 1 3 * * ( 6 3 ! 3 , K L

; ! 1 3 * , ( 1 2 3 * 6 3 * ( .* , * 3 3 * 6 D . Â&#x2039; *2 * ( 4 3 2 1 2 3 *3 ** * 6 , 5 & '4 3 2 3 3 , 32 . * , @ *1 * * ( > 1 * ( , 3 3 , 1 ( * ( 4 3 2 . * ( 3 * 3 , 3 * 3 * ( ( ( 1 3

* * 3 .

6 * 6

* 6 . ( , * 1 *2 2 : 2

*1 ( *6 * D . ( 1 2

5 & '4 3 2 3 41 ; !?* * ( , 4 3 1 9 3 * 6 3 1 3 . , ( 1 9 3 4 3 2

Expectations and Assumptions

( * * ( 41 3 2 * j ** 12 * 3 1 * * ( 32 , > 32 ** ( 5 & * # + * ** 12 * , , 3 3 3 * ** ( 3 * 3 ( J * 3 41 3 2 * 3 3 , *1 3 .

3 3 > 3 * 3 6 : 1 ** * 3 J

. 6 > 3 * ( 1 2 ( *!* ** 3

, ( `, ?J (

41 3 2 * 3 3 , * 3 `1 3. , ?

7

#

& Elsewhere in this report we have argued that civil services 6 * * * 3 23 *.* * * ( * 6 **. ! , 2 5 > * ** * ! . * *2 2 ( *1 * * * 3 * ( 5 &

, ( * 1 * * , * 6. * 3 3 , 3 3 ( * 3 , , , `6 , 6 ,? * 2 * ( 1 6 * ( 3 * 3 ( ( 3 : 2 =3 9 *2(. ( 23 * 1 *!. ( 1 323 18

* * * .

*1 32 2 * 3 3 6 * * *

.

3 6 6 +3 . # # C , 1 *.* 3 , 6 * 1 3 * 11 * 1 ( * ( * 3 , , . .* ! * , 1 1 41 3 7* * ,, * 6 ( , * 1 * , 4 3 2 6 * + 3 . * ( , * 33 1 6 *

1 9 3 4 3 2 1 2 1 3 3 ! , 2 & . 3 , 3 * * * , =3 2 * ( 41 3 F 6 2 ( > 3 * 3 *3 3 * 3 3 * > 3 2 * * =3 * 6 *

. 3 . : & O & #Q ! ( 3 , ( `, ? * 3 *

, 3 * 11 * * * 3 * 11 6 * 1 2 * * 41 3 . ! / K AL# `, 23 K 1 1 * *

3 * 1 1 ** * 3 L 1 1 * * 11 Â&#x201E;? K1 L 7 O # Q * F ! ( * , +3 * ( ` , ? 1 3. *3 ** ! , 1 3

5 & * * * ( * & * * 1 . all countries, high policy discussion , * 6 . 3 + * ,

, 1* K3 6 *L 19 , * * . ,

. , , D *2 * ( 2 * , . D * 6 . 6 3 *2 , 1 3.

18

* 23 1 * * 41 ( * 1 * . * * " 11

* , * (

3 * `1 3 ? ` 1 ? ( * ( * 3 , , 19 ; K M L 41 *# `/ 3 , * ( 1 3. < * 3 * ( 3 3 3 3 +*3 , 3 3. , <

6 , 6 , ( * * 6 . 3 F 2 ( D * 3 * groups at the highest levels of government, or

- 3 *2 * ` , 1 23*? 3 * . 6 3 *

3 * 2 1 , 1 . * * ( 3 * * * ( * K , * ( , 3 *

( F * * ` , 1 23*?J * , * ( 3 * 3 * ! , 6 , 6 ( 1 3. F *L 5 *3 ** ( * 3 1 3 * 33 * 2 . 3 * 2 3 ( 1 3 3 , . 3 1 3 6.

6 * . ( 1 23 * * ( 32 * , 1 3 * . 6 ( * ( 3 1 2 , * * 2, 1 * 3 3 ( 3 * ! , 6 3 *? K1 L

38

P 2 3 : 2 1 3. 3 . ( * 3 3 , . * 3 3 ( 3. ( 1 3. ! , * 3 1 * * . 2 1 3 ** * * 69 3 1 3 * 1 6 * , *3 ** * 2 20 7* * ,, * *

* 1 1 3 * > F * 6 * 6 41 3 32 * , 1 9 3 * , 1 2 , 3 * 3 1 3.

Project Cycle

* * * ( ( 32 *!* * * ** 3 * ( 1 9 3 * , J 1 9 3 4 3 2 J 1 9 3 1 2 " 9 3 4 3 2 *!* 3 * * 6 *3 ** 6 ! N #

11 ( ! 1 3 * , 1 ! 1 9 3 * , ! * " 9 3 * , * 3 . 3 3 1 9 3 D . 1 9 3 * , * * ,* * * . ( D .

6 3 * 3! 6 * D . K , : 2 3 1 3 .

5 & '4 3 2 L > 3 * *1 ( *6 * ! N & & 6 , 32 2 * 3 * : D . ( 1 ( 1 2 , , * 3 1 2 , ( 1 9 3 H 21 *2 2 , *1 * * , * ( * 3 *

! ( 21 3 . ( 2 . * 6 , 32 2 *

Engagement with Local Government - , 3 * * . ,

* 1 6 F 6 3 * 6 * 3! ! (

5 & 6 * 11 . 1 * * , , 1 1 * ( 5 & * * 6. * , 5 & * 11 32 2 * 6 6. * * ( 3 , N . 32(. * 6 3 F * 3 ( 5 & * 6 * 1 * * ,, * 6

DSF Governance Structure 5 , 3 * ( . 2 ,* ( 3 ( , , 6 * ( 5 & KH/ /L

* 2 ,* 1 * , * 6 41 3 3 1 4 . 2 * ( * 2 . , * , 1* F * 6 6. * 6 * 3 * * ! 6.

1 2 , > 32 ** =3 3. 3 . 3 3 1 ( 3 ( 5 & *

The lessons of experience to date suggest that the following aspects of the DSF governance structure are the * * , ( F 2 # 6 ( 2 * * 3 < Â&#x2C6; / F * : J * 3 3 1 * 2 J .1 * ( 6 * 1J *Â&#x2C6;

20

7, ; K M L 41 *# ` * . 3 (

1 3. 1 3 ** !* < 3 * 3

11 * 1 323 < * 3 . ( * ` ? * 1 3. ! , * ! 1 6 * ,

* 2 6 3 1 2 .23 * 3 * ! , 6 * 6 ( 2 , 3 * D 3 ( * 1* 0 * * 3 3 1 323 41 3 * ,, * * 1 3 * . * .

is to say, the sequence of steps outlined above imparts a false sense of order and structure to a process that is likely to be much more , 3 * 1 * * 11 ` ? " 3. ! , * 6 * 3 23 J 6 6 * ** D 22 * D . ( ( 2 ( . ( * 3 *J 6 1 2 J * 2 * 33 J 6 . 3 * 2 3 * ? K1 L 7 , * * F K

L * ,, * * `1 3. ! , 1 2 6 * * * 3 * ( 1 1 * * 33 *? K1 L

39

40

CONCLUSION

* , , 5 3 6 M ( ( * , 6

G ( * - ; ! 3 3 , 5 & !

6 , , ( ( 5 & 7* 3 * D 3 ( * , ,

DSF became a government-owned and government-led vehicle for the design , ( 3 : 2 * 11 1 , * 2 3 * 3 * 6 1 2 ( 3 * , > 32 ** N 1 * 2 * * 1 * * ( A * , +3 1 , ** has been made with the development of the DSF as a whole â&#x20AC;&#x201C; in terms of the 3 3 1 ( 3 ( * 4 *2 , * 11 ( 1 2 , 3 3 , * 3 F *J * ( * , ( * ( ! 1 , J * ( * , ( 32 , ( * , ( 32 5 & '4 3 2 C ** 3 , ,

* 6 4 3

5 & * 6 6 F 3 2 + 3 * ( 1 1 * 7 understandable and important part of the reason for this has undoubtedly 6 1 , ( 5 & '4 3 2 3

* . 2 .

3 . 6 , ( 32 * * . ( 32 , ( 5 & , 3 * 3 * .* 1 6 *? . 41 3 2 * of it, but neither it should be said have all membersâ&#x20AC;&#x2122; involvement and sense ( 9 *1 * 6 . 6 * . *

* 4 41 3 2 *

6 * ( ( + , & * * 3 3 * 3 * 3 *2 9 *2+ 6 * * ( * 3.J ( * 1 1* 3 43 * * for maintaining the 4 0 1 ( . ( 1 ( 3 (

5 & * 3 * 11 ( , , 3 + 3 3 3 F ( 1 3 2 ( . !

, 2 , H . ( 3 * 4 * 1 6 (

5 & 6.

5 &?* 1 3 1 + 3 5( 5 * 8 6. *

+ 3 * K7 *7 5 / 57L * > 5 & * 6 1

3 * * 6 1 2

1

6 *.

` *!*? * 32 (

* 1 6 *3 ** 1 41 . . 3 3 of succeeding, among other things, all development work requires ingenuity, 3 , . 1 * 3 ,. * * 3 6 2 *1 3. * . 6 1 1* 6 1 2 3 * * 2 , * ( * 6 F 6 * 3 *1 7 * .

3 1 2 3 , 3 1 4 . 3 *

6 * . ( 1 * ; ,

5 & * 3

1 ** ** * * D 2 * ( 6 ( ( * , { ! 3 * 6 2 1 1 * ( 5 & * 3 . .

6 3 5 & 3 *2 * 3 6 3 * 32 . 6 , * ( 2 * ( * 33 ** 6 1 1 3 3 . .* .* 1 3 * 32 1 3 3 ( . *2 2 1 32 *

42

ANNEXES

Annex A:Sources 7 ! * H 3 H Â&#x20AC; / - 5

`" 3. P !* " 3. / 2 * " 6 * ( G 3 ? * 9 5 6

:

) 5 ; K L 11 O A 71 1 @ .

A% `5 1 " 3. 5 *3 * ? ) 5

3 % KOL 11 MM A

; " `" 6 3 7 * 2 @ ( H , 2 ( 5 1 , / * ? " 1 1 * & G 6 & @ 2 , G , : *1 * 6.

Q P 2 * 5 * ( " 6 3 '3 3* " 6 3 7 * 2 ( 5 1 ( '3 3 3 7> * KP | !L H ! * H 33 5 3 6 ; " ` 7 . ( 5 1 / 1 2 # " 3 1 * " *1 3 * 5 ( '4 1 *

H * . ( & 3 G ( C 6 ? QP5" 11 OO ; " O `QP5" " , 11 G 3 @ ( C 6 # 7 N 3 ' 2 ? ; # QP5" 11 ; " % ` 11 " 3. 5 1 1 2 G ( C 6 # 7 @ ( QP5" H 2 * ? ; # QP5" 11 O ; " M ` " 3. " 3 **$Q H 11 M ; " Â&#x20AC; H M6 `5 3 * 2 5 3 3 2 " . @ 32 7* " 3 +3 ? / Â&#x20AC; 5 @ K' * L `5 3 : G 3 # ' , , / 3 1 * " 323 *?$ ; ! ,* *2 2 " ** 7* *2 ( 5 3 23 G 3 2 & . 3 ( G 0 Q * . ; " ` " 23 '3 . ( 733 6 . C * # 1 3 2 * ( " 6 3 " 3.$â&#x20AC;&#x2122; )

5

K L A

; 2* / 6 N=3

`" ( ** " 3. H ! , . & * / . ? C # , 3 " 3.

H ! , ; 2* / 6 N=3 11 MA ; 3! 0 H { Â&#x20AC; . @ `; F " 3. H ! , ? C # / ( H , " 3. * ; 2* / 6 N=3 11 OO / Â&#x20AC; @ 5 K' * L M `5 3 : G 3 # ' , , / 3 1 * " 323 *?$ ; ! ,* *2 2 " ** 7* *2 ( 5 3 23 G 3 2 & . 3 ( G 0 Q * . / - Â&#x20AC; ; " `@ 7 * 2 @ ( H ' * / *

O O ? H& - ! , " 1 11 O 5 & " 3. ; ( P A `'41 , @ ( N12 * & 32 7** , * ?

5 & " 3. ; ( P M A `C 3 4 '> 3 * ; * ** / ? & @ Â&#x20AC; Â&#x2020; ** 5 K' * L

M `7 2 3 5 .# , G 3 / ? *2 ( " 6 3 7 * 2 ( / "HG / ( G 3 & 2 G ( * `P 2 732 " & *3 5 3 : 2 ?

G ( * `P 2 & ! ( / 1 3 . ; , 11 5 3 : 2 ?

G ( * O `P 2 H 5 1 " K@" HP O L ?

G ( * 5 3 ( 1 3 C ** 5 1 @ , * ; 11 * A 5 *3 ** 3 # `" 1 2 ( & 2 ( @" H O " , ( 5 1 ( ; @ , * ?

44

G ( * `@ , 7 . 1 2 ,. ?

G @

M `5 *3 * * ( 5 1 ? 32 @ G Â&#x20AC; @ C 2 K' * L `5 *3 * * ( 5 1 # 7 1 , 3 " *1 32 * ? N4( # N4( 2 " 6 3 2 * G H Â&#x20AC; *

`78 5 3 * # 1 2 , " 3. @ ( * 5 1 , / * ? <

, A KAL 11 % A H5 `- / 1 22 ** | 6 ! ? G . * ` 3 , " 3. " 3 ** * ( * 6 C *# , * ( / , ? ; , # *2 ( 5 1 * 11 A ""N5 7* & 2 A `C 3 '3 3 G 3 * # 7 . ( ; * ** O @ , 3 *j/ 2 * * M ? . @ 1 C * ; 5 Â&#x20AC; 5 " _ * . `5 , / 2: 2*( 32 C 3 " 6 3 ' 3 2 * # , +3 3 ( 73 3 Â&#x2039; . G 3 / 2 * ? * ! 7! O K L 11 A C * ; 5 Â&#x20AC; 5 " _ * . A ` / * ( " 6 3 " . ' 3 2 * # 5 3 * P H H .Â&#x2C6;? - ! , " 1 5 & C * ; 5 Â&#x20AC; ! " A `& *3 5 3 : 2 * # - P Â&#x2C6;? - ! , " 1 5 & H 11 H 3 . 7 Â&#x20AC; @ , 5 , * ' A ` , * * P / .$Q / 6 # 7 * , 3 " 3. *2 H , ; .

M `" 11 ? & H H * * & j/ * P ' Â&#x20AC; 7 1 M$ O5 3 : 2 * P 2 ( N11 . ( - * $Q - ?* @ * 3 *2 N*6 5 Â&#x20AC; G 6

`@ 2 , G # 0 ' 1 1 * *( ,

" 6 3 3 ? 7 * - * . 11 O M " 11 O ` N1 3 . * ' * # " # 0 , Â&#x20AC; H 4 ? @ , Â&#x20AC; , " / `5 5 * @ , Â&#x2C6; 5 3 : 2 / , , C 3 G 3 * ? (!

5 - + M K L 11 O O O Â&#x20AC; & * H M `5 3 / 3 C * 1 ; H , " 3.

N C * 1 @ * ? " 1 1 *

* 23 5 , `C , & ( " 6 3 3 ? Q * . ( 5 P ! 5 Q 7 H . < F @

` " 3. " 3 **# 7 N ? C # N * * 5 1 *2 11

! / # 7 ( 5 1 '> 32 ** * ?* @ H 1 O 5 3 6 A QP5" K" ; Â&#x20AC; 5 @ L

M `@ 3 3 1 * , G 3 ? QP5" 5 * ( " 6 3 7> *# P | !

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K/ * H 4 ( " , ; , 2 ,L H * . ( & 3 H * . ( 0 7> * H ( Q * , H 3 P 3 / * 2 , G 1 P G N , : 2 & 3 + 3 )

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KP * " 3 * / L P * ,, ; K- * P * ,, L P * ,, K' * P * ,, L N 1 1 ) ! # '

K/ . ; * " . 5 Q1 2 ,L " 6 3 '41 7 .* * / 1 3 . ' 3 ) ! ! KC 3 G L ) ' KC 3 / . 5 1 L )

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KP 2 " , ( / . ' 1 L "P"H 11 & 3 . @ , '3 3 5 1 - + ) # K , 3 " ( , @ ( L @ * 3 , *2 , / F 11 N=3 & ' * * Short Term Consultant 3 3 7** * 3

7* & 2 Trust Fund Q * * * 7 - 3 K7 - 3 / *2 Q * .L Q P 2 * 5 1 " , Q P 2 * / ?* & - ; ! ? 6 ) ! ! K& 2 ( C 3 G 2 L

63

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