DSF Annual Report 2009 by Decentralization Support Facility

DECENTRALIZATION SUPPORT FACILITY ANNUAL REPORT

ADB

Embassy of the Kingdom of the Netherlands

2009

Indonesia Stock Exchange Building ! "# $%

&# $%

'# ( ) *+ * , -# *+ * , " . / . # 0 . * - . , + ,* 1 2 * 3 3 * * 41 ** 3 ** . 3 * ( 5 & 6 * , * . 1 * 5 & * , 33 3. ( 3 * !

DECENTRALIZATION SUPPORT FACILITY ANNUAL REPORT 2009

DSF Annual Report 2009

Foreword 78 6 ( . * ( * * *9 1 , ** * 1 3 * * , 3 * ,, * 5 & * 1 * ( 3 1 1 * * , 32 6 * , * 1 * 1 0 * , * ( 1 , ** * * 1 1 * , * 3 * 6 * * 1 * * : * * ! * ( 3 1 , ** ( 1 * 5 & + * 3 1 * * 3 2 1 9 3 32 . 6 * * 11 4 3 6. , 6. - ; ! 6. 1 2 * * 3 * 3 *2 6. 3 32 ( ** 3 2 < ! , , 32 2 * ! 6. 5 & * 1 1 * 6. 11 2 * ( , =3 3. . ( ** * 3 > 6. 4 * 3 ( 2 ( 3 . 2 + * ( * * * 1 * ,, * * * 41 3 3 ** . * 11 6. 5 & 3 : 2 3 *2 3 * ( . , 1 3! , ( 32 2 * . ( 3 , - 3 * 6 1 , ** * 6 + 1 3 1 1 , * , ?* ( * , 3 1 2 * ( 3 : 2 < 1 6 3 * 3 . 1 +*3 3 : 2 , 3 3 1 3 . 6 , 1 , 1 ( 3 , * ( 1 * , ( 5 & * 11 ( 6 * 1 3. , * , * * * 11 , . * , ( 1 , 3 1 * @ : 2 ( > 32 ** 1 2 ( 5 & 1 1 . * ! 1 3 12 * 3 3 , 1 ( 3 6 ( * , 3 * 3 ( 5 & '4 3 2 " 3 12 * ( * 33 ** (

, * 4 ( 41 3 2 * * 6 *23 3 3 * 3 * 6 * , 6 - 3 + 1 , 23 3 * 32 9 11 3 6 * ** ( 5 & . ! ( 6 + * > 32 ** , 1 1 * . * , ! / 5 3 6 A C * 6 * 3 *3 * ( * , * 1 ( * 6 6 3 6 * 3! 6 1 * * * 11 6 * 11 . ( D F 2 6 1 * ( - 1 . 3 * *1 ( 12 * 3 + 3 ( * * * * 2 ( , 6 6 , 6 6. 5 &?* 6 * * 11 ( 3 : 2 * 1 2 6 . 1 ** ** * 3 6 ( . :

Prof. Dr. Mardiasmo, Ak., MBA / 3 5 & , / F 5 3 G 5 3 G ( & *3 ; 3 H * . ( & 3

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

DSF Annual Report 2009

Preface * 1 3 * * 1 , ** 6. 5 & 1 * . * 4 *2 , 1 , ( 32 2 * * * ( 3 6 2 * +*3 3 : 2 J * 3 .J *1 3 * ( , 3 ( J 1 , 1 ( 3 , J > 32 ** ( 1 32 2 * * * J ! , , 7 ! 1 , 1 ( 1 3 1 2 * * , 1 * 7 1 23 . 3 ( * , ( 1 , * * , 3 * , +3 3 ( 32 2 * 3 : 2 K , 3 1 3 . 6 , ( 3 , , * * 5"@5J , 2 ( *1 3 3 2 ( * 3 , * 57 J *2 2 6 , ( * 3 1 *J 3 1 3 . 6 , ( , 1 1 3. ( 2 L C ! * 1 ** 6. * , . * 1 * * ! 1 , , * *2 2 3 1 3 . 6 , , * * ( * ( 5 & 6. * ( * , * 3 . 3 3 *2 2 : 2 ( ( 3 ,. *( 7 1 * , *1 3 ( ! 1 , * 6 F 2 , D . ** 3 * * 3 1 ( * 1 ( 32 . 3 3 1 * . 1 , ( * 2 1 * 3 6 3 , * 1 2 ( ! 1 , * 6 * * ( * , 1 , ** - ( , * * ( ( 3 6 2 * *1 * 6 . ( * 33 ** ( * 6 , , 5 & 1 * 1 * ( * 1 . 3 * * , * ! 1 , ( * 11 2 * ( > ( * ( 3 1 2 * 6 3 11 7* 3 3 * ( H , / F ( 5 & 1 . 3 *3 * ( *1 * 6 2 * ( ! , 5 & 6 > 32 ( 3 1 ( 1 * 11 3 : 2 , 6 * ( / F , : 3 ! * . * * 7* * 1 * ,, * * * *. ! , * , 1* 3 3 * * 4 6 . , : * * ( H * * 3 * * 6 . 3 3 ! , 2 ; ** ( 5 & 1 * * ( * 33 D * 3 1 F 2 1 * 3 ,

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

/ ,. ( , +3 ' *

M M

O O O % M M M A A A

O O O O

Introduction

Governance and Development Context

, * 5 1 N11 2 * ( 733 5 1 ; + * ( 5 3 : 2 " 3. / 3 * @ 2 3 5 . G 6 & 3 '3 3 / * * , " 1 * @ * ( 5 &

Existing Work Program

" 6 3 3 5 . & 32 7** , * H 3 * 7 2 H 3 * * ( 3 5 . G " 323 * & *3 5 3 : 2 , *( * 6 2 ; , 6 2 1 * * @ * * G 3 @ ( @ ( 6 2 ; * ** / @ ( " , " ( 3 H , C 3 G @ , 2 * C 3 G " ( 3 N .* ' 2 * 6 2 2*23* 11 N=3 ( ' * * , '43 , " * 1 " 2 11 5 1 " * ' * * & ' * * @ * 3 P ! 1 3 " , ( " 1 N(' @ " * ( & , H ,

DSF Annual Report 2009

Work Program 2009-2011

, 3 & ! 5 ( C 3 " 6 3 3 * 11 . ( C 3 " 6 3 3 * " 3 * G , 11 . ( C 3 " 6 3 3 * , 3 ' 1 * * - ! " 732 2 * " 6 3 3 5 . & *3 5 3 : 2 G 3 @ ( " , " ( 3 H , 1 & * ( 7/P* 5 1 5 7/P * 2 * / 1 3 . , , " , ( 5"@5 / 1 3 . ; , ( @ , 5 1 " 3. & 2 3 : 2 " 1 2 ( / 3 C F H , ( 3 3 1 2 ' 2 ( Q* ( 1 3 7 3 2 & * K57 L H , , , *2 2 ; , ( C 3 " 6 3 3 " *

M M

DSF Executive

Risks and Constraints

7 '> 32 ** '41 3 2 * 7** 12 * " 9 3 /.3 ' , , C 3 G 5 & G 3 3

M M A

Conclusion

Annexes

7 4 7# 3 * 7 4 ;# & 3 @ 1 7 4 /# H , C , & 7 4 5# C * ( 73 . *

O OO OM %

DSF Annual Report 2009

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. 5 &?* , / F . 6 , * _ , ( * , 3 32 * ( 5 3 : 2 11 & 3 . K5 &L 6. * , / F K /L 11 ( " , H , ( 5 & '4 3 2 11 ( 5 & - ! " , 2 , 5 & 6. * 1 3 1 + 3 K5( 5L * + 3 * K7 *7 5 / 57L ( 3 * 4 * , 1 6 6 3 * 6 3 ** . 1 , ** * * , , * , ( > * ( 5 & * 3 J + : 2 ( * 2 1 3 * * 3 * 1 2 * J 1 ( ! 1 ,

Governance and Development Context * ?* , , * * * * 6 * , 3 23 3 . . 6 * 3 . * . 3 , : 2 3 . ( 2 * * ( . * 3 * 6 1 , ** * 6 6. , 2 3 3 3 , , 3 ( 1 1 ( 3 , . 2 1 23 69 32 * ( 3 : 2 0 1 , ** 3 1 3 * K* 3 * .L * 6 * , 6 41 3 * 3 4 * * * . 1 * ( 3 2: * 2*( 32 * 3 . K `* 3 . 1 4?L * ,, *2 , , F 2 * 6 , * ( ( 3 : 2 6 3 * 3.3 ( * 3 . * 3 1 * 3 2 ( , 41 3 2 * ** ( , * 6 , 2 * , 3 2: * < 3 ( 1 * 3 . < 3 6 3 2 * 11 . * * 11 1 * K , ,*L 3 2 ( , 3 2 * 3 , * ( * 3 1 * 5 & * , 3 ( ! * 1 3 1 * * * * * * , * * > 3 * ( , 6 3 3 + 3 3 * * 733 , * 3 - ; ! *2 * * 3 . * * , ** . 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 6 (

Existing Work Program / 1 2 1 323 41 3 * 3 3 * 3 * 3 ( * , . **. 6 * ** 1 23 3 . ( 3 * 3 ( * 3 1 4 2 * ! * 3 2 ! . 1 ' * 5 &?* 4 *2 , 32 2 * . 11 6 + * * , / 4 1 * ( * 6 ( 5 &?* * 11 K +*3 3 : 2 L * 6 2 6 , > *1 3 * ( , 2 0 +3 3. ( 4 *2 , ! 1 , * * 2 , 3 ( 3 1 3 . *2 2 6 , * * 3 , * 32+ 5 & ! 1 , ! " # $ ( 1 6 3 * 3 . 5 & * * , +3 3 6 2 * # 1 ** 2 ( , * 2 1 3 * , , ( 32 ** , *J * 6 * ( * 3 * * K 3 *2 , (LJ *2 2 3 1 3 . 6 , ( * 3 1 * K ( * ` 2 3 * * ( * 3 .?LJ 2+3 2 > * ( , 1 323 * # $ 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

1 , ** ** * * , +*3 * 3. & , 5 & * 11 3 1 * .* * ( , , * 1 * * * * 3 2 * ( 1 , 3 , > 3 2 * ( 3 , , * 1 6 3 ( * 3 % &$ 5 & * 11 , 3 ( * 6 3 # K L ( 3 * * 6 + * ** 3 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 , 1 9 3 * 6 , 3 2 # K L * 11 2 , * ** 2 ( * 1 * 1 KN L , * , 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. ( * 1 `" 23 3 .? * * * . ( 2 * 1* 6 * * 3 . 6 ! * * * , . ( * , . ( 3 3* 1 23 *3 3 * 3 ,. * 6 1 * 2 , K 3 3 23L *. 1 * 41 2 * ( * 3 3 3 . ( 1 * 6 , 8 ** 3 6 (* * j * 6 2 ( 1 3 , : 2 * * 3 . j 2 * ( ! * 1 3 . 3 1 3 . *3 * ( 2 3 3 ( 1 . ( 32 * 3 3 23 41 2 * 1 6 * , * 3 , ,

! # & & & 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 * 6* 3 1 3 ** ( 8 ,

, # K L .* * ( , , 2 * 3 , 2+3 2 ** 2 ( `6 * 1 323 ? 4 1 * ( 3 , 2 *J K6L .* * ( 3 , 2 * 1 6 3 * 3 *J K3L 1 , 3 * 2 , 2 6 * ( 3 , , 2 * N 1 * 3 # * 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 * ( ** ! 1 * L 3 @ 3 2 * ( * 1 (. , *.* 1 , .* 5 , . ( 2 conducted with DSF support in O % 3 1 * ( 1 6 3 * 6 ( .* 3 , 3 6 * * ( 32 33 ** K , * * 3 L 7 , ,* * 11 helped government with: system design, set-up, and 3 J D .J * , .* * 2 : 2 J 8 , ( , * 2 '( ) * # 11 N=3 ( ' * * K N(' L * * * 4 * 3 ! , !* 1 > 32 ** ( 1 2 * * * * * , ** 2 , 3 ! , ** *J 6 , 6 , * !* 6 > 1 2 * * 1 ( * * ( 3 1 *J 1 , * ( * 1 2 * ( * * * 33 ** * 3 ( 3 * 32 3 , N(' ?* !* G * 0 * ( ;7""'57 3 3* PGN* 3 * ! * ** 2 * 3 > 32 **

* 1 * * * . 1 3 * 0 5 1 4 K05 L 6 2 , D * ( * 3 * 3 ** + 6. G ( * * ,, , K L + - # & & & , 11 ( 5 & - ! " , 2 , ( 3 * 4 * , 1 6 ! , , 32 2 * 6 , , 7 donor mapping data base has been developed; a series of policy briefs has been produced; and the design and 3 ( 5 & 6 * * 6 1

Work Program 2009-2011 11 5 & - ! " * *3 6 3 3 * * , 3 ( ! 3 32 2 * " * , ( * * , * * * 1 * * ( , 2 * 3 * 6 ( *3 12 * ( 32 2 * * 11 2 , 2 * 32 2 * * 11 ! 1 * 3 33 , ( 1 . * *21 6. 5 & / ** ( ! . ** * , , * , 3 ( ! H * 32 2 * 3 * , +3 *2 2 6 , 3 1 * 732 2 * 6 * * , 3 * ( ; ( 4 3 2 1 2 ( 32 2 * ! 1 3 ! 1 3 . * 6 1 * =3 1 6 * * ( 1 3 32 . 3 3 1 * K7/P*L K 1 2 L ! 6 ! * * 6 * , * 3 1 2 41 3 * ( * 1 ** 6 * 6 ( 6. 6 * ! , + 1 ( + * 6 3 ( 7/P* * , ( 11 5 & - ! " ! 1 3 , 1 71 * * 4 3 3 1 * 1 11 6. ( 1 6

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, ( * 6 F 2 1 23 3 . ** * * 2 * * 1 ( 7/P* 3 3 `3 1 3 . * , , ( 5"@5?J ` , * , , *2 2 6 , ( 1 6 3 * 3 1 *?J `3 1 3 . 6 , ( , 1 1 3. ( 2 ?J ` , 2 ( 57 ?

DSF Executive . 1 , ** * 6 , . 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 , 5 & '4 3 2 * ( 32 , * * 3 * 6 . 6 41 3 2 6 * 3 * * 3 . ! , ( 3 1 3 . 6 * * 3 . . ( 41 * " 1 2 * ( * * 6 * , , ( N(' ( 5 & 1 3 * 2*( 3 . ( * , , * 3 6 3 1 6 ( 5 3 6 7* 3 * D 3 ( * , 3 3 * ( * 11 6. 1 1 * *!* N(' * , ( 1 ** 6 * { ( , ( ( * > , , 6 - * 6 1 ** 6 1 3 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 * ( ' * * & ! 3 * * 1* * 6 * N(' * & 2 , * 2 6 ! * ' * * , '43 , & 2 K| . * ; L * *1 3 ( * , 6 3 6 * ( ; ( * * N(' * * 3 + 3 3 * ( 2 1 1 *

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 5 &?* , 3 * 3 7 > 32 ** ** * 3 * * ( * ! 3 . * 3. * J 1 9 3 4 3 2 *6 * .* . 41 3 2 * ** 12 * *3 ** 3 3 ,# * 11 * . 3 * ** ( 3 * 3 ( J *1 ( 3 , , 1 , : 2 *.* *J , ( `, ?J * ( `1 3. , ? 7*1 3 * ( 1 9 3 3.3 , , 3 * ! * 6 6 3 6 * D . 32 . * , 1 3 2 * ( D . ( 1 2 ( * 6 , * 1 3 ( + , .* ( 3 , 32 . * , * * ** * * ,, * . 6 , * 6 6 (. 5 & 3 F 6 * 1 ** * 2 2 5 & , 3 * 3 3 6 ( 2 * * 3 J 3 F * : 3 1 * 2 * 3 .1 * ( 6 * 1

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 ( 1 2 , 1 *6 * * Q 5 K } ( 1 , % } ( 3 2 *LJ

5 & * & ( Q 5 A 3 * P 1 1 * 32 2 * ( 1 2 , Q 5 %A 11 6. 5 & H , / F * 2 , ( & 6 . * 6. 5 & , / F * 2 , H 3 7 ( + 3 1 * * 7 4 ; 7 * . ( & 3 .?* 3 * 1 * 2 * * 6 ( 7 4 ;

Conclusion 1 3 3 * 6. 6* , 1 ( 5 & 6 *. 7* 1 ! * 33 ** D , . 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 , 23 . 3 * 32 . 6 , * ( 2 * ( * 33 ** 6 1 1 3 3 . .* .* 1 3 * 32 1 3 3 ( . *2 2 1 32 *

INTRODUCTION 33 3 5 & N1 2 * H * 1 * * 6 F .* ( , ( * 3 D ( 1 * 2*+ * 1 1 * * & * * * 3 2 1 * 1 , ** 3 * . . A < ; * 3 ** 3 2 . * * * *3 ** * 9 * ( 11 5 & ! 1 , ( 1 6 , * 3 ,. ( * , +3 * ! 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 , ( . * ! * * 3 1 2 ( 5 & * , 3 ( ! ! 1 ( 1 ** 3 , ( ! 1 3 * 2 6 , * 32 2 * 33 ( 11 4 . } ( 6 3 ( 6 ( * & 32 2 * 6 1 1 * , * 3 ( ( `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he aim is to

* 4 3 3 1 * 1 11 6. ( 1 6 * 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. 5 & N1 2 * H 6. - ; ! * * 1 . * 12 D . ** 3 * @ * . 6 ( * ( ; ! 3 * 3 ! 33 ( 1 ** 6 * ( 7/P* 6 * *3 ** * , , 3 1 *

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! . . 9 3 . , . O} & 3 ( 4 ( * ?* 3 * * 1 6. H5 - / 1 22 ** | 6 ! * ?* 3 1 22 ** ! , * 1 ( st place to 42nd and draws the 3 ` * *1 3 3 * * ( * ? * ! , 1 3 * * , 3 3 * ! ; : 6 3 * ! H 4 3 7( 3 / 1 22 ** ! ,* 6 * 3 ( ** ** * ( 3 , * 3 * ( 3 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* . 3 * * * , +3 , , 1 3 2 1 . *# * * * * * . > 3 , * * *

BeneďŹ ts of Decentralization 6 " # 5 . 3 * 6 ! 9 1 , * ( 3 : 2 1 . 1 1 * * 6 1 23 * ( 3 * 2 , 1 * 2 ( , 1 . ( , * * ( 1 2 , ( , 2 ( * * , 1 23 * 6 . 6 N 6 ( *3 ** 6 * ,, * * , * F 1 23 1 1 * *

6 * 6. , 1 3. 3 : 2 . 6 , 3 & $ ' * * 3 * , 3 2 * * 6 . 1 3 , 1 3 F 3 , 1 . 3 * , , ( 2 * , . * * 3 1 * * , 6. , 33 2 , 1 ( 6 , * 4 3 32 2 * 11 5 & - ! " ** * 3 F * 7 / " # 5 3 : 2 * 3 , 3 , , 2 * , +3 . & 4 1 ( , 3 * * , * , +3 *3 2 . *1 , . 3 , *J 3 , * 2 ** 6 * 1 * 3 3 2 * 11 3 6 , *J . *1 * 6 . ( * 3 * K . * K have been 41 * , +3 . 3 , ( ( 32 * G * : 2 ( 2 * * , . 1 , * * * 6 . ( 3 * 1 , 1 2 D 6 . ( 3 6 + * * 3 * . 3 2: * 32 ( *1 2 * 6 * ( * 3 . 6 , , 1 3 , *$ 7 6 ( 32 2 * 11 5 & - ! " * , ?* 3 ** , * 3 ** * % 8 " 5 To the extent that local governments have grown accustomed to the greater autonomy > 6. 3 : 2 K1 23 . * 3 L 9 *! ( 3 , , 6 * ! 6 3 6 2 3 3 * * 3 * 3 , K , * , . * ,L ( * 3 ** , 2 * ( 1 1 . ( 3 ( , * 3 , . " 3 * 3 . 1 3 * * 6 ( * 1 * 2 * ** D *2 * ( * 3 3 3 43 * 7, 3 , 2 ( * * , ( 5 & * * , 3 1 2 * 3 33 1 1 3 1 * * 3 . ( . 3 2: *

Policy Choices in Relation to Service Delivery * 3 1 6 6* * ( 3 : 2 * 3 * 3 3 * * K , C * Â&#x20AC; ! AL * ,, *2 , K * 6 .L 1 * * * 11 . * * 3 , , 1 23 . 1 * J 3 * 3 * , 1 6 ! *J 1 3. 3 1 4 2 * 1 ( 32 *J ** 3 1 6 * ( 1 2 3 * 1 * 3 * 3 . 6. 2 1 ( 3 2 3 1 . 3 * K * 6 L

: # # ;5 1 4 3 . * 2 3 2: * 1 * 2*( 32 * 3 * 1 6. 3 , 1 3. 3 3 * 1 * 6. * 1 4 41 ** 6. C * ! K AL# Â 69 32 3 * ,, * * * +*3 3 : 2 * . , D . 3 1 6 3 * 3 * 3 2 . 1 1* 3 2: * 11 6 1 23 . ** 2*+ * * ( > * 9 D *2 3 ( 2 , ( * * ( . , * 6 6 1 D . ( 3 * 3 * , 3 11 2 , 3 * 3 2: 6. * , , ! , 6 3 * 3 . 4 1 . , * 3 6. * +*3 ( * . 11 ( * 6 , 3 * * , 4 , * 2 3 * , ( , ( * 3 . , 4 *2 , +*3 *.* * * 3 , 3 * 1 ( , * ( , ( * 3 * . 3 * * 6 , , 3 ! ** 3 2 6 * 3 D . + 3 =3 6 ( 3 * 3 1 * 2 2 , 6 F * 3 3 * 6. , 2 , 1 ( 3 3 2 * * 3 ( , *( * * * 3 6. * 1 6 3 + 3 1 3. ! * * F 1 * ( 3 * 33 6 . *.* ( * 3 . 6 12 ( 3 1 * * ( * * ,. * ! . ( 3 * , +3 1 23 11 * 2 7 + 12 6 * ** 3 2 , 3 2: * 6 , * ( 33 ** D . 1 6 3 * 3 * 3 , , 1 ** 3 , * ( 1 * 3 . Q ( . * 3!* 6 * *2 2 3 1 1 * 7 3 11 3 ( 3 * * 41 2 , 3 3 3 2 , * 1 6 * * 6 , 3 1 3 . 3 * 3 . , 1* 3 3 2: * 2 * * . 6 3 3 ( ! , 3 1 , ** 3 3 4 Â&#x201A; K1 L and # & #/ # &5 N 6 ( .* * ( , 3 1 3 3 * 3 * * * ,, * * 2 , , 3 3 : 2 * 3 . * 3 6 , ( * ( 3 * , ** ( , * K 6 , 2 *L 41 3 2 * 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 * * ! . 1 3 * * 3 . 3 . ( , 6 + 3 3 3 3 * * 6 ** . 3 * , 6 *2 6 * , +3 1 23 . 2 * ( 1 . 1 . 2 * ( 6* 2 1 . < ( 3 ! . * 2 . , * : ( * 3 . * 1 3 , ( G5" 3 *2 6. 1 ** * 3 3 . 1 2 3 3 *2 * > 3 * ( * 3 ** * 3 ! , 3 ** . , * * 1 ** 6 12 : * 1 . 1 . 2 6 + * 11 2 * ( 5 & ! 1 , 3 , 2, 2 ( > 3 * ( 3 * * 1 . 6 3 * ( ( 2 D *2 * ( *3 6 * 6 3 * # + * 4 *2 , 32 2 * * , 6 ( * . 3 ( 1 , 3 3 + 3 ` * ?J * 3 6 3 * ! 1 , * , . 6 6. ( * *2 2 3 2 * 6 3 . * =3 ( 3 , * 1 , * 6 ! . . , * *

*2 * > 3 * * 3 3 3 6 + * < * 3 * 9 6 * ( * 3 !* %

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 * *

% - ; !?* 3 6 2 * ?* *1 * 3 * * * 6 " 6 3 '41 11 & 3 . ( Â&#x192; 6 3 2 , 6 , * 11 3 1 * , 3 6 2 * ( - ; ! KÂ&#x192; 6 L 75; KÂ&#x192; 6 L 7 * KÂ&#x192; 6 L 1 KÂ&#x192; 6 L * ( 3 . * * , * 11 * ?* F 1 * * 3 + 3 , ( 1 6 3 * * , 1 ( , . 2 ! 3 2 *

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. 5 & P 2 " , ( / . ' 1 K"P"HL * ! * 6 1 * 1 . '43 1 ( N(' ! , , 6 ( 3 * 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 + * 1 3 . & * 11 2 , 33 * * * ( 3 * 3 1 ( * ( 4 1 # Q * K AL ( * ` ** ** 3 1 4 . ( 1 1 3 ** *?J Â&#x20AC; H K ML ! * 6* 2 * 6 3 , 5 3 3 * 3 J - ; ! *2 K L 3 * ` 6 * 33 **( 1 2 , ( * 3 * * * 8 6 . ** ** 1 ( 3 3 3 * , * K L * . 3 * ? K1 L H 3 3 6 ( , 3 3 * 3 ( 3! , * 1 3 ( 1 23* K 3 3 23 ** *L 1 3. ( 3 , , . , : 2 * *2 2 * ( , 732 . * , 1 2 5 & ! 1 , * * ( 3 *3 * ( 1 23 3 . 1 2 * 4 *2 , 32 2 * have been, although not always able to do as much about them as their 1 3 * 7 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 . 1 * 3 KQP5"

ML * 3 * 11 . D . , 3 (

. ( 3 , !* 6 32 2 * * * 41 32 , .* + 3 * ** F 12 , 3 * 3 D 2 * ( * ! * * * * *8 * / #

$ P ** * , ** , 32 2 * *. ,. 6 * . # * * 6. ( * 1 32 2 * *3 ** * 6 2 6 , 32 2 * 3 6 * .1 * ( , 2 < * 6 +*3 3 : 2 H * 32 ( * 1 * 32 2 * 11 ( ! 1 , 6 * 3 ! * * ,, * * *1 * 3 ** ** ( 3 * 3 ( * * 6 , ( : 23 , 2 6 5 & * 11 32 2 * " # $ * * 2 , 32 2 * *3 ** 6 3 1 * ( *2 2 3 1 3 . 6 , * ( * . * =3 F 2 * , * 3 D *2 * * , 1 2 ( * 32 2 * * * 3 , * 32+ 5 & ! 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 . * 3 * 11 * 3 6 1 ( P " 2 ( 4 1 # *1 1 2 *J 3 ** +3 2 3 ( *1 3 *1 *J ( , 2 3

*J ( , 2 3 2 *J ! 3 2+3 2 J * 3 J + 3 , * 3 6 * * ( *3 ** * 6 * * 6. H * . ( 0 7> * , H * . ( ' H * . ( ' 3 2 P 2 & . " , 7, 3. H * . ( C , 0 @ , * " 3 3 , * * 3 * 7* * ( * *3 ** * , 3 2 * ( . 6 3 1 3 * 3 3 . , * 6 3 + 3 * * 3 * , * 2 6 3 3 & 5 & * 11 * * ! . 4 * 3 * * 3 *# , , 3 * ! 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 . 3 2 ( * 3 N ( * 1 33 ** 6 . D . ( * * 3 * * , 2+3 2 1 2 ( * 3 * * * j O 3 , 3 , * ** H + * 3 *# 1 6 3 * , * 3 1 1 2 3 , * 2 9 2 + 8 , * 2 * 6 1 1 ( H P 2 7, 3. ( & . " , * * 6 *3 ** 6. 7 * . ; ( @ , 7 .10 8 7 1 23 3 . 11 3 3 * 3 ( * 11 * 1 . 3 3 23 ! * ,* ** *2 * 3 ( ** * 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,

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 @ | ,. ! 5 & * 1 * 11 , . 3 *2 , ( H 1 ( H 3 *2 , * 6 ( * 6. 1 ( ** 3 3 3 ( 2 *.* 12 Training * ( ( 3 3 ( 2 *.* 6 1 3 * * & * 11 ( H 3 *2 , 6 4 * 3 * * 3 , * ( 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 , : * *1 * , +3 ! ** * , ( * 3 . H * 1 3 * * 3 * K L 3 2 * K L 1 6 3 * 3 * 3 . , 3 * 3 * K L 1 2 , ( 3 2 * 6 ( *1 3 3 * * 3 , 1 * * 1 6 3 * 3 1 * K * 3 , 1 * * "57HL 0 , ( 1 + * 3 . *2 2 * K;CQ ;CQ514L ( . 1 F . 6 * . F ** * . ( 1 6 3 * 3 * * 6 2 ( * ( 1 * 3 22 * 1 6 3 * 3 * * * 4 & = 4 > * ** 3 7H 5 , * 3 3. * , 3 3 * 7* * 11 * ` 2 *? * * * 1 23 . * / * 6 1 1 : . * . > ( * N'/5 3 * N * K3 ( * , . ! * ` 2 * 3 .? < 7 5L * + 6. & Â&#x2020; ** K

M 1 %L *# ` 3 2 . 3 1 3 ** ( 1 6 3 * 3 * 3 , 1 * . ( * 3 * 3 * 6. * , , 3 ( 32 * * 3 . , 1* , 22 * ? 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 * * ` 2 3 * * ( * 3 .? K7H 5L * ( D . * * 1 1 * * 3 * 6 . * * 3 , 3 2 . 6 ` *2 2 3 1 3 . 6 ,? 5 & * 11 7H 5 * 6 ` ? * * 1 6. ; K L 3 * *1 * 6. N*6 G 6 K

L * * 3 2 2 * ( *2 2 6 , , : 2 1 * _ ,* . 6 11 6 ( 5 & * 11 * 1 32 ( `6 1 ? ( 1 2 , 7H 5 , , * ** * 6 * 3 *1 3 * ( , : 2 ( 32 , 1 ( 3 * 3 *# ? ' # $ 5 * * 3 . D *2 3 . 23 , , # , * 69 32 *J * *1 * 6 2 *J , 2 ( . 11 1 , 2 * H * 3 : # H * . ( 0 @ , 2 P MO jH'P ' j "'@j j A H * . ( 0 @ , 2 P A AjH'P ' j j Â&#x2021;j A 3 3 , 3 ( * 3 * * ! 6 1 j! 12 * ! 3 6 3 . ** KO H . L H * . ( 0 5 3 P MjH'P ' j j j * * 69 3 ;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

? ? ? ? ?

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 * , . D . ( * * 3 * * 3 * 6 . ( , , 0 * 3 , * 41 2 .* 1 * 3 . , * , * 4 1 * * 6 1 3 , * * 1 , * 2(. * 3 2 * 6 * *.* 23 . 3 * , 1 323 * 3 6 . ** 12 6. 3 , * * 11 * 6 , *.* 23 11 3 33 2 , 12 ( , 1 323 * * 3 . 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 *

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 * *

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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

# & 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. * 6 3 , 1 . * 3 3 3 43 * * * ,, * , * * 6 , 6 3! , * 33 , 1 , ** * 6. 0 5 1 4 * + ,* 3 2 * *3 ** 2 * ! !* 1 * 6. ; 11 * QP5" . 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 * .* * 6 + * ( * , +3 / 2: * . 3 , * ** * 2*+ 1 6 3 3 2 * 2 * 3 * 3 2: * , * H , * ** ! . 1 . 32 1 , * 1 3 + ,* ( * * . * 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 * ,

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

, 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

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 , *

* 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 *

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 * ! Â / 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

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 .

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 *

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

, *( * * , , 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 ( ,

$ ( : 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 * *

* * + 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 * (

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 .

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 .

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('

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

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;

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

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 *

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 ( ; @ , * ?

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 | ! 11 4 Â&#x20AC; Q P 2 * @ * 3 *2 ( 3 5 1 O ` 3 3 23 " 3. H ! , 5 3 23 733 6 . KQP@ 5L ? : # QP@ 5 " 3. ; ( P 11 O Q * A ` * " 23 7 .* * / , , 5 ; Â&#x2C6;? " 1 " 1 ( / ( 3 ( 5 1 * 7** 3 2 Q 7 5 5@ " % ` 3! ! , * ?* @ 3 5 3 : 2 @ ( * ? Q* . ! ` * ?* 5 3 : 2 " 3.# 2 '41 3 * ' , , " 6 * ? - ! , " 1 H'@Q @ * 3 *2

Q* . ! P . H H & 6 . * `@ , 7 . ; * ** / # # / * * ( - * ? H'@Q @ * 3 *2 - ; ! ` N 3 6 ! 5 3 : 2 C 3 5 1 ? F1#jj 3 * ,j 3 : 2 j ; . - ; ! *2 `/ . / 1 3 . 5 1 ? / 1 ( -; 7 @ 1

G;" Q 5 /75

7 * 7, 3. ( 2 5 1 K7Q 7 5L

/ 2 5 1 7, 3. K/ 57L

1,000,000

24,000,000

! # &

Â? Q 3 1 , * 41 ** Q 5 D * .

! #

Q , 5 1 ( 2 5 1 K5& 5L

6 &

) )6: 7*U :*'6 V!!' : *7*:W ! # # 3 X G

Annex B: Financial Report

1,000,000

GX XG [

499,002

1,000,000

A O

V )Y

! # #

LG\XLG\1

M MA

V )Y Z

V # ! #

) )6: 7*U :*'6 V!!' : *7*:W " & =V #

#> 3 X G

J # =V > Receipts " , * K 3 *L * 3 N 3 : Disbursements ! " '41 , & @ ( N12 * & 32 7** , * 11 2 , '* 6 * ( & 3 . & * 6 H Service Standards 7 2 H 3 * * ( 3 5 . 2+3 2 @ 1 3 2 ( G " 323 *

]]G X[G X]

&& & =V > Z

O M 24,849 XG[\ G \X

LG X1G [G AM

]1XG \L M

OM A %

2,029

200,000 M % OMA O M

% O

, *( * 6 2 ; , 6 2 1 * * @ * * 5 / 32 7 .* * ( H , ' 2 4 7** , N * 3 @

LG1 [G % M 480,000 100,000

\ G[1] M O O A M % % -

LX1G^ ^ 900 102,019 M A %AM -

% & 7** ** , @ * , .* ( _ , ; * & *3 7, 3. , & ! & K 6 2 2*23*L 711 * # 6 2 * / @ (

LGX XG\L]

1 XG[X\

]\ G

M M

OM% O OM% O

! # ! & 4 & C 3 G " ( 3 H * , H , ( '> 32 C 3 G 11 " , * H 11 , 7 .* * ( C 3 " , ; , 2 , " 3 ** * 1 ' 3 ; * ( G ; C 3 "

\X G^\] AM MO

X XGL[] AM MO

O M

120,000

M %A

[G]\]G]L]

[GX [GL

1]G\

A O M O M % %A OA O % 109,000 M OAA

% %MO

M % O M A %%% % %A OAO O A

% M A

%% %%M

0 0 0 0 0 0 M MO A% 0 0 0

!6!4 =6 ! & && )& - & > P 2 " , ( / . ' 1 CDD Summit " 3. 5 1 ( "P"H / * 733 2 , @ ( /55 " , * 3 3 7** ** ( /55 " , * ( 2 ' 3 2 / 3 2 ( "P"H Q* & 7** ** ( /55 " , * H 1 ( "P"H H , ' 2 H j C , H , ' 2 // ; * .

OO O

=V >

Budget (USD) Disbursements ) * # = )*> Quickstarts ! N ' > 3 * * N1 2 3 * * Total Project Disbursements 7 * 2 ( Total Disbursements N * , 3 * Â?

Actual (USD)

Commitments (USD) *

3,310,588 97,908

2,435,462 97,908

257,896 0

7,700,000 4,200,000 3,500,000 21,462,298 440,350 21,902,648

3,350,088 1,806,426 1,543,662 13,690,934 223,033 13,913,967 1,606,411

162,617 0 162,617

: " =Â&#x20AC; # / " & / && & >

1,606,411

8,049,695

Â? / ( 2 * 6 ( 6 ! 4 3 * ( * . * 3 * 1 1 3 * * 41 ** Q 5 D * 1 3 6 N * , 3 * . 3 ** . * 3 *6 * * ( &

50 C 3 , * expenditure and local governments performance in basic public service delivery

4 & Z

; ( ** ** ( 0 ( 32 ** , * . 6 3 1 6. 7 , *

! % ( 32 ** , * KP " L 0 * 3 *3 ** 1 * * K 3 , ; 11 * ' " 6 3 - !* H 07 H * . ( 7 * 2 @ ( L * D . P " H 2 , * ( F 8 , 2 ( P " / * 2 * , * .

/ 6 2 * 1 ** 2 ( , * 2 1 3 * , , ( 32 ** , * J * 3 * * 3 , 3 *2 , *2 2 3 1 3 . 6 , ( * 3 1 * 2+3 2 > * ( , 1 323 *

Comment on indicators and milestones outlining key issues ( 3 . ** ** ( , j ** 12 * *!*

Â?Â?

3 32 * 1 1 * ! 3 1 6 *

Â? H , & 3 * 32 2 * * 4 *2 , 32 2 * 3 32 Aj * ( 3 3 2 6 . Â?Â? N69 32 * ! . 6 # L Â # ] Â # & # ; Â # [ Â # X Â # Â&#x201A; Â N #

' L5 ! " '"N * # H * , 2 * 1 + 2 * 3 P " ( * 3 ( 32 * issued for at least 4 and strengthened * 3 * K7, 3 3 1 3 . ( H 07 H , C and selected 7 * 2 L 6. relevant ministries to formulate December 2010 and monitor 1 2 ( norms, standards, procedures, and 3 KP " L ( public service delivery

Equitable, accountable and high quality public services 1 6. 2 local governments

1 * 3 3 3 development and reduced poverty

* ?* 0 5 1 4 K05 L

* * * from original log frame tracking any +3 2 *

* * * ( original log frame

* #

'"N s

Annex C: Monitoring Log-Frame

7 2 * 3 delivery schemes established in selected sectors and districts 6 F 33 ** ( women

P 6 ( * 3 district governments developed pilot 2 *3 * service delivery, and number of women reached by these pilot schemes

' L5 ! " '"N * # H 3 7 12 * KH L 1 2 ( in targeted H * 3 * sectors budgeted, selected districts implemented and monitored in selected district governments

7/P H , , , *2 2 ; , ( " 6 3 3 5 . 1 1 * 6 5 & H/

5 & 1 23 1 2 , * 6 * , 3 3 ! , , 1 1 ( " 6 3 3 * * 1 { (

: , * * 11 , , 1 9 3 * GN 1 3 * 1 2 *

5 8 " ( " 2 , 7H 5 K , *L 1

5 8 7** ** ( C , @ , . & ! 3 1 H .

5 8 6 1 ( 1 , 1 6 3 * 3 . * , 7H 5 3 1 H .

7 2 H 3 * ( 3 5 . K7H 5L# H , , , *2 2 ; , ( C 3 " 6 3 3 " * 6 , 71 A 41 3 6 3 1 6. P 6

7/P ( 3 *2 , H ( 2 * 3 * ( 3 2 , H 1 2 * 3 *# 0 " 6 3 0 * , 6 , 6 3 1 6. 7 , *

H 3 *2 , * * , ( , * K; , , ,. ! L * 2 , 0 H 3 *2 , 3 1 11 * F 3 ( . ** H * ( 0 5 3 P MjH'P ' j j j 3 3 G 3 ( / *2 , " ( 73 ( H 0 * 3 * 3 * H .

! & : 2 * 3 : 2 ( 0 H 1 | ,. ! H ! ** ; P 6 A

& 3 2 ( 1 2 , H 3 *2 , 6 1 , * | ,. ! 1 3 6 , , .

&& H 3 *2 , 6 3 3 ( 6. 7 , * & 6. , ( , 3 * * hardcopy manuals and CD will be completed and ** 6. H * ( 0

52 Evidenced based research on territorial reform excepted by three ! . * *# HN& ; 11 * H 07 ( policy input

P 2 1 3. , 1 323 * **

1 understanding of 2 6 * 1 323 * * 3 1 23 * * 3 * * 6 + * 2 * ( territorial reform

% 1 3 government systems ( ** 2 1 3 2 ( , 1 323 * * 3 delivery

' L5 ! " '"N * # O 1 1 6 3 732 " * ( service delivery improved public service in selected local delivery adopted governments in in selected local border areas governments in border regions

H * . ( 0 7> * * * * ( 3 * 2 * 8 1 , K * , 2 L ; * " 323 *

/ * * ; + * ( " ( 2 ( @ , * K" ! .* * 3 1 ( H & ! . + ,* ( +*3 *( ( * 1 ! P 6 M / 1 2 .* * ( , , , 1 323 1 , * * 3 1 71

'41 3 * @ ( # 1 3 2 * ( * J x @ * 3 ,# / . / * *J x " 3 ** 1 3 2 * ( 3 " 23 5 * * ( @ ( # / * * ( 6 * ; 6 F 5 & H/ A (

.* * 3 1 ( H 07 * , C P 5"5 5"@ 3 , ( 2 ** * ( 2 41 3 ( , 1 ( 2 #

! 5 8 7/P ` , , 3 : 1 ( 6 *? * 6 F ; 11 * H 07 ( 7/P 3 6 * 32 . O K1 6 3 * 3 . L O K 1 1 ,L 6 , * 1 , * 11 * , * 6. ! , ; 11 * H 07 H * . ( 5 * , @ , * ` @ ( # & , 2 * ( " 1 ?* - ( ? K" ! 5 H 3 7 2( ! 7 * 9 @ !. L 1 , 1 6 3 * 3 . 3 1 ( ; 11 * * 1 H 5 1 " K@" HL O + 2 * 1 ! ( 1 , 1 6 3 * 3 . 3

Â&#x2021;

" 9 3 1 2 * been handicapped by key members of the selected consultancy team not being available as proposed and * 6* D .* + , * 6 1 3 * * issues have now resolved and 1 9 3 * 41 3 * , * 6. 5 3 6

1 +*3 3 : 2 1 3.

Strengthened regional + 3 ( 2 systems and 33 ** 6 2 . comprehensive data

'"N H * . ( & 3 ?* @ , & 3 ( 2 System recording local government budgets is completed

& 2 ( " 3 N " ( 3 4 K"N" L * .* 1 6. N 11 Q ; H . 6. " 3 G ( P *

" 3 N 11 Q * 6 * ; , ( Q 71

" 9 3 6 * * .* 6 * ** 3 * , * 3 * 3 * 3 1 3 1 * , =3 * H 3 ; 71 P *

7 ( ( * 3 N 1 * P * " 3 & 6 . 2(. ** * * ( 3 , *

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

H & @ , & 3 ( 2 .* K 5L 33 . records local government budget data K7";5L 1 2 ( `G 5 * , ( & *3 5 3 * 2 ? 3 ** government ministries and local governments

7/P 11 ( 1 ( G 5 * , & *3 5 3 : 2 * 3 . 6 , 1 1 *3 ** HN& ( * 6 ** 5 & H/ N3 6

& * 6 . ** ** * ( 1 ** 6 3 2 * ( , * *.* 3 , * , 3 1 * * * 32 * ( 1 1 ( 3 3 1 6. 1 6 A

5 & * 6 * > 32 =3 3 3 6 * . ( + 3 . % 1 6 A

' 5 # & * # ! P 6 ( 3 5 & * * 11 2 , . ( H &?* @ , & 3 government budgets ( 2 .* ( & *3 | MJ * 11 * 3 H * . H . * 41 3 6 3 1 6. 5 3 6 ( & 3 @ , & 3 ( 2 System

' L5 ! " '"N * # M C 3 , * C 3 , implement performance in > 32 =3 1 2 , N ( and accountable business licensing , 2 * processes for business licensing

&& DSF will discuss the future of its engagement in this area with the Director of Funding ' 2 @ , ( 2 3 , 1 * . 32 2 * * 3 * .* * Similar assistance is 3 1 ( M and 2008 data when this is 6 @ D * ( *3 **

" 3 11 Q P * * 41 3 6 ( . ( 32 6. .

&& 1 9 3 1 , ** , and expected to deliver all the expected outputs as per *3 7 4 * ( 32 . 1 * 6 considered to consolidate the 3 1 3 . 1 > * made during this phase and ensure that they result, by } 3 * 2 D ( 6 * ** licensing in the 24 target * 3 *

54 " 6 3 + 3 .* * completed by selected local governments as basis for local government planning 6 , 2 , H , 2 1 * completed on expenditures of propoor government fund in selected local governments

1 1 6 3 + 3 , by local governments KN L

% G 1 1 *1 3 3 2 fund monitored and evaluated

'"N O P 2 1 3. local government borrowing, including issuance of municipal bonds, adopted 5 ! * 3 * * ( 1 9 3 * 6 + 3 6. 1 1 * 6 *J 1 . *2 6 * 5@ J ; , * * 3 1 9 3 6 + 3 by municipal bonds and is currently in the process of 1 3 , 3 * ( 3 , 4 *2 , ( * 6 . * . * 6 * , "N5 K1 1 . ( ** 3 ( 3 1 6 *L

7/P * 3 1 * 11 6. 5 & H/ " 3 41 3 3 3 .

Empirical analysis on regional government investment in public ( * 3 6 * 6 * + 3 ( O M 3 1

Empirical analysis of regional government surpluses based on ( M 1 3 * * 3 * * 2 , 1 3 2 * 3 1 A

7/P ( 3 2 2 ( 6 * * 11 2 , 32 2 * 3 . 6 , + : *3 ** 5 3 ( @ , ; , G 2 , / 1 3 . H & 6 ** 5 & H/ 6. 7 , *

@ ( * / / ** * 2 , 6 3 6 ! 1 3.j * 3. 3 1 6. H .

' 5 # & * # ! 7 2 1 3. 3 7 .* * 1 1 . ! ( ** 3 ( ! government borrowing, ; , 6 *# including issuance x 7 * * ( 3 3 * 11 * , * ( of municipal bonds, " 3 5 ! ; , 3 . adopted underway;

Â&#x2021;

& * * K*L * 3 * near Jakarta will be conducted , 1 1 2 * , > ( ; 11 * 57 K 1 3 7 3 2 & L / 2 " , H , ' 2 Team Secretariat are expected 6 32 . , + * *

732 . * 3 . pending further discussions GN

&& * 41 3 @"N5 K 8 on the issuance of municipal 6 *L 6 3 1 . ( G 5"@5 K 3 1 L 11 6. 5 3 6

1 ! , sharing on support to local governments

'> 32 accountable public service delivery by local , =3 * > 32 , 6. / N * * in selected local governments C 3 , 3 2 3 * demonstrated improvement in 3 32 , , programmes for local , =3 * O 1 1 6 3 accountability of local governments delivered by / N*

'"N '> 32 , * 2 processes, resource 3 2 * , ( 32 * * selected local legislatures

" 6 3 . 33 ** 6 base on support to local government developed and number of development forums and

: 2 32 2 * facilitated

Competency-based training programmes 3 : public service delivery developed by local government training centres " 6 3 33 6 . mechanism developed and implemented by / N*

P 6 ( 2 and local government =3 * / N leaders professionally > 32 accountable public service delivery

- ! , G 1 / N 733 6 . 3 3 ( 3 * , 1 *3 ** * K&G5*L " , " 6 , H ! ** H H 3 j71 M% 1 23 1 2 , / N* # 1 6 3 * 3 .J / N CG 2 *J / N* , 33 6 .

Â&#x2021;

7 *3 ** 1 1 3 , / N , , * 6 , 1 1 ( ( 3 , H/ 2 ,

7 11 , 6 * 3 6 ' , * ; * * F1#jj *+ * ,j 11*j *( j3, 6 j 3, " * K L 5 3 " ' 5 H 07 7 , * A K L 3 . 5 - ! , G 1 H 3 K L 7 CP H 07 H .

Â&#x2021;

7 732 . / 3 1 P * 1 1 2 6 3 1 6. 7 , *

7/P 5"@5 , , * 6 F 5 & H/ 7 732 . / 3 1 P * 1 1 2 6 * 6 F 5 & H/ 6. 7 , *

' X5 * " * # ! P 6 ( 1 3 H 11 , ( 5"@5 * , , 1 3 ** * * 6. * 3 H"* 3 , H 07 5 & H 07 5 3 * H"* 1 , * 2 , , : 2 * , * 2 1 3 ** * K PGNL 1 , * H . * 1 1 2 ( 5"@5 6 , 2 , * , * , , 3 3 1

The database well received and commended as a useful ( 3 2 monitoring of donor support 3 : 2 & development and design work will be undertaken based on ( 6 3! ( * *

56 * # 7 development plans and budgets adopted by selected local governments

C 3 , * 12 , resource planning and management policy C 3 , * border regions which have completed and made public their development work plans

'"N

O 1 2 * 3 plans included in local government annual, mid-term and longterm development plans

O P * 3 planning management policies developed by targeted local governments

O C 3 , in border regions improved capacity and accountability in development planning

5 8 7/P ` , , 5 3 : 5 1 ( ; 7 *? * 6 F ; 11 * H 07 ( * 3 6 * 32 . O * 3 . O development planning in border regions to provide integrated * 11 * , * 6. ! , ; 11 * H 07 H * . ( 5 * , @ , *

Â&#x2021;

5 8 7/P ` , , C 3 '3 3 G 3 ( Â&#x2021; ; F H , ( P @ * 3 *? 1 1 * 6 F ; 11 * (

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

7/P `@ , 5 1 " 3.? ( , Â&#x2021; 1 1 3. 11 6. 5 & H/

' ]5 ! # ! & 4 & !

H 07 ; 11 * proposed focusing this 32 . * , , 3 ** * *2 2 * * 3 * P 2 7, 3. ( H , ( ; @ , * 3 , and develop border regions and to improve policy for development of border , * 7/P * proposal is expected to 6 * 6 F H/ 6. ( . ( 11 ( 11 * ( C& 1 3 * * *j , * 6 D

" 9 3 1 1 2 *3

1 *3 ** * ; 11 *? 5 3 ( 1 2 " , C 7> * * 7/P 6 2 * . 3 6 body of work which will contribute to capacity of local governments to produce , *1 2 * 3 planning documents

* # P 6 ( 3 governments achieved minimum performance requirements set by HN07

@ * * ( 3 2: * 2*( 32 * .* publicly available

Study of sectoral data systems at central and regional level with 1 3. 3 2 * 1 6. ;" K/ 2*23* 7, 3.L 1 23 1 2 , 3 governments

'"N

O O H performance requirements set by H * . ( 0 7> * KHN07L 6. 3 , * KN L

O 1 33 ** 6 . ( 3 2: *? 1 3 12 ( public service . C 3 G as input for policy 3 2 *

O % 1 D . availability of sub 2 * 2*23* ( local decision making

Â&#x2021;

& 1 1 3. 3 2 * , 1 categories of: x .* 5 * , 1 H 3 J x " 2 ( 5 Â&#x2039; .J 711 3 2 ( ( 2 / 3 2 3 ,.J x 0 " .* 3 & 3 @ * 3 *J , , ( 5 , 7 .* * Q2 : 2 J x C , * 2 @ , 2 H .

7** ** ( ( ! 6 1 j! ** ** ( 3 2 ( ! 6 1 j! 3 1 .

P 2 3 * 3 *.* .* ( , * K% 1 3 * O ! ! 6 1 L .

` 1 , Â&#x2039; . 7 6 . ( 6 P 2 2*23* ( C 3 5 3 * H ! , Â&#x20AC; , & ( 2*23* 6 @ , * / ? * . 3 1 * 11 ( ;" 3 , * .

1 G 3 5 3 : 2 . KG5 L 6 ( 1 6 3 * , , * * 3 Q* 3 D . ( 2 ( * . 32 .J D . ( 32 * 6 ( O % * ( * .* 6* * 3 * ( 2 * . including survey instruments, manuals and notes, as well as * 3 1 * 1 * 2 * , G5

' ]5 ! # ! & 4 & !

The website will be linked to 5 & 6*

* 32 . * 3 . pending further discussions GN

58 P 6 ( 1 3. * and consolidated on 2 6 * of local government , 2 *

O M 1 3 regulatory frameworks to assist local government to provide quality services and ensure consistency between 2 * 3 level programs

* # P 6 ( 3 2 !* : 2 * * 6 . 2 2 *

'"N

3 * 3 1 2

: 2 , key development stakeholders including 2 , local governments, PGN* 3 3* donors, DSF and private sector

G * ( 3 , * ( 8 , ( 3 , 2 *

'41 * ( 1 , 3 3 , 2 * ( % * 3 *

& 8 1 3. * 6 1 6 * 6. 5 3 6 # `' * , * 6 . ( " 1 " , * , C 3 @ , 2 *?J `5 1 , @ ( 5"@5 11 2 , " 23 1 2 C 3 @ , 2 *?

'* 6 * ( 3 ! , , 1* 3 , 2 * ( 2 3 * " 1 ' * C 6 ! " 6 ,, , !

1 , !* 1* * 11 ( K' * * * 3 P !L * 2 , , 1 2 * 3 , * 3 3 1 3 . 6 , 3 * K* 6 L

N(' , / 57 * 2 G 3 ' G - ! , G 1* 2 . , 2 1 1 1 9 3 * *

" 3 , j 3 2 , 1 3 , 2 1 1 * ( 3 * # D . 2 ,*J *3 ** * J 9 + * *

&& , +3 * 11 1 D * 2 development partners, local , * 3 PGN* @ 3 2 3 * most stakeholders deemed this 6 . 6

" 9 3 * + * 6 working group chaired by ; 11 * * D * an extension to focus on strengthening local , , . 8 , processes, ensuring greater

: 2 2 , 2 * 3 understanding of challenges faced by local governments in , . 8 , 1 3 **

/ 2 ( 2 ! , , 1 3 , 2 * 1 / 6. ; 11 * K5 3 ( C 0 @ , *L 1 23 1 2 3 ** 1 * ( , , : 2 * * 7 1 3. 1 1 3 , 2 *

* 6 1 3

' [5 *& # & )Â&#x192; ) * # !

* #

'"N

' ]5 ! # ! & 4 & !

* #

C 6 . ' * * " 6* 1 2 and accessible, * 6 2 ( . , : 12 ( , 1 323 * handbook by number of development stakeholders in eastern *

'"N

1 33 ** ( 2 increased learning 12 ( , 1 323 * among development stakeholders in eastern *

- 6* =3 * 3 * ( D . * * M * 3 * 3 7 , * A

* * ; ( 3 . H ! ** ( 2 ,* * research and access to computers and internet increased from , ( 1 M 1 ,

C 6 . 33 ** * 3 * ( , ( * * 1 M K| 5L

/ 2 * 11 ( 3 2 * * * * 3 * * 6 ( 2 , 9 32 2 * ( 3 2 , 3 * * 1 3 , * 1 * , ,

Three directories on research, researchers and research *2 2 * * * 1 1 9 . * *2 ( 3 3 * . ** , * * 2 * 1 33 ** * 3 * 3 * * *

2 ( * 3 1 * 1* 3 , 3 2 , 3 3 6 : 2 3 * 3 3 1 3 . 6 , * 2 , ( 9 j7 G@" K7 * * G 3 @ * 3 " , L , !* 1 @ * 3 6 3 1 1 6 * ** 6. 5 3 6

' [5 *& # & )Â&#x192; ) * # !

0 6 ! 3 . + * 3 `, 1 323 *? 6 1 1 ( , ' * * & 7 , *

6 * 32 , * 3 ** * 6 ?* *2 2 ( 2 * require strengthening to 1 2 * 3 , * 2+ 6. , : 2 * 6 ( 3 * ( N(' (

N(' ?* 43 2 * 1 currency with high level local , =3 * 3 , governors, allows it to act as * 6 * =3 * 2 * ( 3 2 , D . , ! , * 2 , > 32 1 2 ' * *

60 P 2 H " 3 * ' * * 1 * * C 3 G * 1 1 3 * , 2 , 1 . 1 , *

Development stakeholders in * * 1 3 development agendas and policies

' * * & , 1 3. , *

5 & *3 ** 1 1 3. 1 2 * ( , 1 1 2 * . ( & & / ( 3 H ! ** 7 , *

7 1 . 11 , 1 , * 11 6. N(' QP /'&

* 6 1 3 * 6 * 3 * * 3 * - * * * 1 6 1 3 * 3 * - * *

7** * 3 ( 5"@5 / * * > 32 *3 ** 2 . 1 ** , ( 1 3 ; , ( A

& 3 2 ( * 2 ,* ( ' * * " 3 0 * ( ;7""'57 , ;7""'P7 P 2 H " O " 2 * 2+ 1 P 2 5 1 " , / * 2 * KH * 6 , *L

7 3 D *2 *1 * * * ,, * , 1 323 * 1 6. N(' 6 , 1 3 , * , | . * C 7 6 H ! " 3 1 23 ; P * 6 3 3 3 2 2 1 6. &/ "'P 7 led to a cocoa sustainability partnership between the two , 1*

/ 3 2 ( ; P * , : * 1 *2 ( * 1 3 1. * . 3 * M 1 3 ( * * 2*+ ; P * 1 2 ( , 1 323 * 1 1 ! , H O 1 3 ( * * . 11 * ( ; P * !

' [5 *& # & )Â&#x192; ) * # !

* #

'"N

' * * & / ( 3 7 , * * 41 3 2(. 1 . policy issues that will become a ( 3 * ( ( N(' > * 1 3. 3 7 ( 1 . mapping program is scheduled to be conducted before the (

Annex D: List of Acronyms 7//' # 75 7 # 75 # 7H 5 # 7";5 # 7 *7 5 # ;7 : ;7""'57 : ;7""'P7 : ;" # ;"H5 : CCT # CDD : / 57 # / " '5 # / N # 5& 5 # 5G # 5 : 5 & # ' " # ' ""5 : ETC : &77 # G5 # GN # G Â&#x2020; # 0 j7 5 # 5"C # &/ # CN # "'7 # : 5" # ""N5 : CG"H # C " : HÂ&#x20AC;' # H/ # H5G #

7 * / . 5 1 Â&#x20AC; / 3 . , , 3 7* * * 5"@5 6 1 * K7** 3 2 ( * 5 * 3 5"@5L 7 * 5 1 3 * 1 7 2 H 3 * * ( 3 5 . 7 ,, " 1 ; 9 5 K" 3 j5 * 3 ; , L 7 * 7, 3. ( 2 5 1 # ( 6 K' * * '43 , L ) ) ! KC 3 " , Â&#x20AC; 5 1 7, 3.L ) ) & KP 2 " , Â&#x20AC; 5 1 7, 3.L ) # K7 ; ( @ 1 6 3 ( * L ) ' K/ . ' 1 7, 3.L / 2 / * *( Community Driven Development / 2 5 1 7, 3. / * " 3 ' 1 * 5 1 / 3 . N , : 2 5 1 ( 2 5 1 5 3 G ! #! 6 K ! 1 3 @ , L 5 3 : 2 11 & 3 . ' * * " 8 # = ) ) ! ! KC 3 G " ( 3 ' 2 L Extended Term Consultant & *3 7, 3. 7, G 3 5 3 : 2 . G ( * G * *3 8 (Â&#x201C; 3 *3 Â&#x2020; * 6 KG 3 3 / 1 2 L 0 +3 . *j73D 5 +3 3. . ( * 3 5 1 " 3. C 2 & 3 / 1 2 2 C 6 N , : 2 2 2 ( " 6 3 '41 7 .* * : ) # ( 6 K' * * @ * 3 P !L 3 5 1 " , # ) ) > ! KH , / F ( C 3 7 . 1 2 L C 3 G " ( 3 H * 6 ) ! 6 K * *2 ( 3 3 L H , Â&#x20AC; ' 2 H , / F H 5 1 G

H "" : HN&# HN07 # HNQ # H # P/G # PGN # P " : P ; : P # N # "5 ;H : "'7/0 # "'H57 : "H5 : "H # "P"H : " & # @'5 # @' "' : @ # SC # N(' # STC : 7 # 7& # TF : Q 7- # QP5" # QP /'& # -; # | "5 :

' # ) ) 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 ) # 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 ) ' # K& 3 H * @ , 2 L ) & ) ' 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