06 Study on Relation Between The Structure of Public Policy and Poverty Alleviation at Regency Level

STUDY ON THE RELATION BETWEEN THE STRUCTURE OF PUBLIC POLICY AND POVERTY ALLEVIATION AT REGENCY LEVEL: SHALL WE OPTIMISTICS? Promoting Poverty Alleviation through Structural Change in Public Policy Case Study: Bandung Regency, West Java Province, Indonesia Ari Nurman1, Diding Sakri2, Saeful Muluk3 Perkumpulan INISIATIF Institute for Innovation, Participatory Development and Governance Jl. Guntursari IV No.16, Bandung 40264, INDONESIA Inisiatif@bdg.centrin.net.id www.inisiatifbandung.org Juli 2006 ABSTRACT Poverty is not merely social-economic phenomena of a community such as low level of education, poor health condition or lack of purchase power. Moreover, poverty is also a matter of social-political phenomena. There are several factors accused to be the cause. One of them is a not-pro-poor political structure that is reflected by not pro-poor public policies: a less-participative planning and budgeting process, bad structure of government spending, and not transparent and not accountable procedures of public good and service provision and deliveries.

Much effort to improve local government policy instrument has been being directed towards a more pro-poor policy structure. In Bandung Regency, the implementation of reform to change the policy structure is conducted through enactment of local regulations that adopted the principles of good governance. Furthermore, the substance of those local regulations directed towards creating local government budget structure to be supportive to poverty alleviation efforts.

Currently, at least, there are four local regulations in Bandung Regency that in line with the objectives of poverty alleviation. Those are: • Bupati decree Number 22 year 2002 on Annual Development Planning Mechanism in Bandung Regency • Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 6 year 2004 on Transparency and Participation in Conduct of Government in Bandung Regency • Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 8 year 2005 on The Procedures of Formulation of Local Development Planning • Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 2 year 2006 on the Allocation of Village Equalization Fund All of those local regulations were intended to increase participation, alleviate 1

Ari Nurman, ST., M.Sc., reseracher staff at Perkumpulan INISIATIF. (arinurman@yahoo.com) Diding Sakri, ST., is the Director of Perkumpulan INISIATIF.(diding@bdg.centrin.net.id) 3 Saeful Muluk, S.Sos., reseracher staff at Perkumpulan INISIATIF. (ipung_0404@yahoo.com) 2

poverty, change budget structure towards a more efficient, transparent and accountable pro-poor budget, etc. But there is no assurance or guarantee on the impact of those regulations will result in: • Affecting the structure of decision making process on planning and budgeting towards a more participative and accessible planning and budgeting for the poor.

• Changing the orientation of budget policies to support efforts in alleviating poverty.

• Forcing local government to be more transparent and accountable This study examines both concept and implementation of the above-mentioned local regulations. We employed content analysis to analyze the concept. Meanwhile to examine the implementation, we will use and analyze cases of implementation.

At the end of this study, we found that In general, those analized regulation is consistent with the aim to aleviate poverty. Those regulations provide foundations towards a better structure of public policy. However, the problem now is in the implementation of those regulations. We still need more time to see the correct implementation. It is depend on the capacity and the willilingness of all stakeholders.

Regarding the results of our study, we recommend stakeholders to have a better implementation, particularly the government officials. In addition, if necessary, enforce law on the violation of those regulations. We also recommend citizens and mass media to perform continuous monitoring on the implementation of those mentioned regulation. We propose the need to enhance the capacity of local government and citizens, particularly in the implementation and monitoring of those regulations.

INTRODUCTION Poverty is a classical problem in human history. It is so complex and multidimensional, and seems likely will remain to sustain. There is no one single solution or formula identified proven to be useful to solve the problem of poverty. Therefore, to solve the problem of poverty, we still need to conduct all efforts and allocate more resource.

People can see poverty from different point of views. According to available concept, some scholars understand the concept of poverty from two main paradigms/grand theories: neo-liberal and social democrat. The earlier, Neo-liberalist, seen poverty as something absolute, resulted from individuals’ mistakes (laziness, etc). While the later, seen poverty as something relative, resulted from the failure of structure, either economic structure, social structure, political structure, etci. The adoption any of the mentioned point of views will influence the way a person in analyzing poverty, including the way he/she see the source of poverty and the choice of the proposed solution to end up poverty. A simple explanation about the differences presented in the following Table 1.

Table 1. The differences between neo-liberal and social democrat on poverty Neo-Liberal Social Democrat Base of analysis Conception and indicator of poverty Source of poverty

Poverty alleviation strategy

Individual Poverty is something absolute

Structural Poverty is something relative

Weakness of individual choices; income regulation, personality (lazy, etc) Direct and selective transfer of income to the poor, capacity building on financial management.

Residual. Mutual aid

Social injustice, unfair political and economical structure

Distribution of income on universal basis, fundamental changes on pattern of income distribution through state intervention Principe Institutional, vertical and horizontal distribution of income, collective actions Source: Cheyne, O’Brien and Belgrave (1998:176)ii in Suharto (without year)iii

There are many literatures exploring the sources of poverty. But in general, by considering the causes, some scholars categorize poverty in to the following groups: • Structural poverty (Makmun, 2003iv; Rochow, XXv; Dixon, 2002vi; Sobhan, 2005vii; Sanders, 1991viii; Jordan, 2004ix): also called man made poverty, caused by the existence of barriers (discriminative practices, in terms of policy, administrative rules and regulations, economic and social) rooted in the adaptation of values, systems and behavior by a (group) person(s), that prevent other (group) person(s) to access of rights, basic services, power, resources, etc. This notion also includes the term of cultural povertyx.

• Transitory poverty (Rochow: XX): correspond to the unexpected and temporary inability to assure survival, because of disasters, war and other phenomena.

• Natural poverty (Makmun, 2003; Nasution, 1996xi): caused by nature such as personal disabilities (mentally or physically), unsupportive geological or geographical condition, etc.

From the discussion about the source of poverty above, structural problem arises as the greatest. It resulted from individual(s) or group(s) choices on values, systems or/and behaviors, are the major cause of poverty. The next questions now are (1) who can play strategic role to solve poverty and (2) what are the potential ways?

Both neo-liberal and social democrat seem to agree that government can play important role to reduce povertyxii. Government, as some scholars proposes, can conduct several alternatives as follows: • •

At conceptual level, Dixon (2002), in oppose to the need-based approach, offers an alternative as an “antidote” to be carried out by “all human beings” to eradicate poverty: right-based approachxiii.

At general policy level, Cook (2006)xiv, based on her conclusion that growth alone does not guarantee sustained poverty reduction, stressed the important role of government policy in creating pro-poor growth, providing public goods and social protection mechanisms, and creating the institutional conditions for more inclusive and equitable development.

•

•

•

• •

Sobhan (2005)xv propose several macro policies to eradicate poverty. Those are (1) expanding the ownership and control of the poor over productive assets, (2) enhancing their access to a knowledge based society, (3) strengthening the capacity of the poor to compete in the market place, (4) restructuring monetary policy to deliver credit and provide savings instruments to the poor, (5) designing institutions for the poor, and (6) empowering the poor.

Similarly, The United Nationsxvi suggest some strategies in human development (which include poverty reduction strategies), comprising in general: the improvement of basic social services, agrarian reform, credit, employment, participation, a social safety net, economic growth and sustainability.

In a more operational policy, Rochow (without year: 8) suggest that strategic approach to reduce poverty needs to foster transparent and accountable governance; the assumption of responsibility for combating poverty by all level of governments experiencing poverty; participatory planning by the people directly affected by poverty; effective and efficient results-based management and administration; response to poverty at the macro, meso and micro levelsxvii; responsive poverty reduction programming that is sensitive to the types and incidence of poverty and differentiated by affinity groups, with a view to eliminating or reducing the causes of poverty.

Then Sulekale (2003)xviii give a conclusion that to accelerate poverty eradication, we need to change our civic empowerment paradigm, from top down to be more participatory, based on local resources and capital.

Meanwhile Adiyoga dan Herawati (2003)xix said, as the strategy to alleviate poverty can be performed through empowerment of the poor in fulfilling their basic needs (food, shelter, education, health, etc), allowing the poor to access resources (capital, technology, information), community (neighborhood, village) empowerment to perform self help strategy in helping their own member of community to solve poverty. Then the transfer of government authority to (at least) village level will give villagers a larger room to perform poverty alleviation programs in their own village.

*** *** *** As mentioned above, structural problem are major source of poverty. The existence of barrier, in any form, has prohibit community to access their rights, basic services, power, resources, etc. Thus government, as most important actor, can play their role by removing structural problems mainly those related with public policies. Either removing not-pro-poor public policies or initiating new pro-poor public policies.

Publlic policy, based on the type of deliveries, can simply divided in to two major groups. The first group is public policy in the form of public goods and services deliviries. While the second group is public policies in the form of regulations.

Furthermore, the second groups can also be divided in to two sub-groups. The first group is regulations that function as infrastructure. Some examples are regulation on local government budget (APBD), public service deliviries, poverty aleviation, standards of public services, etc. Meanwile, the second groups are regulation as suprastructure. Some examples of the second groups are regulation on transparency, accountability, participation, planning and budgeting procedures, etc.

Public particiption in whole process of public policy is important. From the making to evaluation of implemntaton, both in public goods/services deliviries and regulations.

Public participation is required to guarantee that the public policies will accomodate the needs and the preferences of the people. When the people does have any access to the process of public policy, what possibly to happen is, it will not guaranteed that public policies can address poverty. It is a structural problem.

The existence of structural problem in public policies, related with public participation in addressing poverty, mainly exist in: a less-participative planning and budgeting process, inefficient public decision (such as bad structure of government spending), and not transparent and not accountable procedures of public good and service provision and deliveries.

When less-participative planning and budgeting process take place, combined with a less transparent and less accountable procedure of expenditure, and worsened by low commitment of government that reflected by only a small amount of budget proportion dedicated to reduce poverty, will provide an “inefficient� government with opportunities to abuse taxpayers’ money (government budget). It is impossible for the people, in that condition, to guarantee that the public policies will accomodate the needs of the people and will not harm them. Furthermofer, the above condition possibly will result in sustaining or increasing the level of poverty.

From the previous discussion on potential ways to deal with structural problem, in this context, suggest us that the existence of policy that (1) enable to create participative planning and budgeting, (2) enable to reform government decision (such as the structure of government expenditure), and (3) enable the creation of transparent and accountable procedure, are key that will lead us to a better condition of region, which is reflected in a lower level of poverty incidence. For a clearer understanding, see Figure 1.

Figure 1. Public Policy and Poverty Structure of expenditure is not supportive to poverty reduction efforts

Planning and budgeting procedure are not easily accessible and less participative

Procedure of expenditure is not transparent and less accountable

Poverty

Regional policy that enable to create participative planning and budgeting is required

Regional policy that enable the reform of structure of expenditure is required

Regional policy that enable the creation of transparent and accountable procedure expenditure is required

Better condition of region (Lower level of poverty)

*** *** ***

Along the history of Indonesia as an independent country, poverty alleviation has always been the objective of development. During the period of 1976-1996, the percentage number of poverty in Indonesia has decreased from 40.1% to 11,3% of total populationxx. The best situation exists between 1987-1996, where the average number of poverty during those years is below 20%. The best situation achieved in 1996, where the percentage number of poverty is 11,3%.

Hence the multidimensional crisis hit the country, the number of poverty suddenly increase. Particularly between 1996-1998, where the number increase from 22,5 million people (11,3%) to 27.0 million people (BPS, 1999). The highest number accurs during the period 1998-1999 where the number of poverty reaches 40 million people, or almost 24% of population. Morover, according to the International Labour Organisation (ILO), off course with different standard and method of calculation, the number of poverty in Indonesia reach 129,6 million people, or about 66,3% of populationxxi.

In 2002, the number of poverty reaches 36 million people, or about 18% of the populationxxii. Based on the data from Central Bureau of Statistics (BPS) in 2004, the number of poverty in Indonesia reach 36,1 million people, or about 16.6% of the population. Meanwhile the data from the World Bank said that the number peoples with income less than US$ 1 per day reaches almost 7.4% of population, and almost 53% of population with income less than US$ 2 per day In West Java Province (Table 2), based on the data from BPS year 2003, the highest number of poverty took place in Kabupaten Bandung. The number of poverty in that regency reaches 543,3 thousand people. That number equal with 12,53% of the total pupulation of Kabupaten Bandungxxiii.

All efforts to remove the problematic structure/public policies and create better public policies to aleviate poverty are a new approach in Indonesia. For example, the national government of Indonesia has issued a new law on local government autonomy, development planning sistem, etc. meanwhile at local level, the community has also conduct efforst to solve the problem of structural poverty. They do community empowerment, form and establish community organizations, advocating their needs to local government, and any other efforts to open the blocked access to community to participate and influence public policies.

Local government is the most important actors in breaking the structural blockage that prohibiting the people to participate and influencing public policies. In kabupaten bandung, the local govenrment has issued several local regulation, which those regulation expected to will create a new pro-poor structure of public policy.

Those regulations are: • Bupati Decree Number 22 year 2002 on Annual Development Planning Mechanism in Bandung Regency • Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 6 year 2004 on Transparency and Participation in Conduct of Government in Bandung Regency • Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 8 year 2005 on The Procedures of Formulation of Local Development Planning

•

Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 2 year 2006 on the Allocation of Village Equalization Fund Table 2. Number of people live in poverty in West Java Province year 2003 Regency Number Pct of (Kabupaten/Kota) (thousand) population (%) Kab. Bogor Kab. Sukabumi Kab. Cianjur Kab. Bandung Kab. Garut Kab. Tasikmalaya Kab. Ciamis Kab. Kuningan Kab. Cirebon Kab. Majalengka Kab. Sumedang Kab. Indramayu Kab. Subang Kab. Purwakarta Kab. Karawang Kab. Bekasi Kota Bogor Kota Sukabumi Kota Bandung Kota Cirebon Kota Bekasi Kota Depok Total/ Average Source: BPS (2003)

452,3 362,2 368,6 543,3 323,7 341,1 265,8 203,3 388,4 214,3 142,8 300,3 224,3 101,4 267,4 118,1 65,4 21,7 75,3 24,7 66,2 68,5 4.938,2

12,54 17,07 18,49 12,53 15,40 16,21 16,22 20,36 19,64 18.89 14,40 18,65 16,59 13,99 14,55 6,61 7,34 8,29 3,51 9,00 3,66 5,62 13,38

The existence of those policies intended to increase participation, alleviate poverty, change budget structure towards a more efficient, transparent and accountable propoor budget, etc. Do those regulation really work as expected? Can we feel optimistic that the number of poverty will decrease? *** *** *** The above questions emerge as the reflection on the reality that the existence of those policies doesnot automatically will remove structural barrier and aleviate poverty since it depends on the implementation. Those regulation needs to be implemented properly to guarantee that those policies will result in: • Affecting the structure of decision making process on planning and budgeting towards a more participative and accessible planning and budgeting for the poor.

• Changing/reform the orientation of government decision to support efforts (such as budget policies) in alleviating poverty.

• Forcing local government to be more transparent and accountable This paper is inteded to show that the existence of those policies will not guaranteed to remove structural barrier for the people to access and influence public policies. We argued that there are three requirements for a public policy to be proven can break the structural barrier and aleviate poverty. First, substantially, those regulations consistent with the aim, goal and background, to remove structural barrier in order to aleviate poverty. Second, those regulations implemented in a right and proper way.

In addition, third, there is a decrease in the number of poverty after the

implementation of those regulations.

In accordance with the purpose of this paper, we categorize the mentioned regulations in the following groups: • To create condition towards more participative public policy: o Bupati Decree Number 22 year 2002 on Annual Development Planning Mechanism in Bandung Regency; o Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 8 year 2005 on The Procedures of Formulation of Local Development Plan.

• To enforce transparency and accountability in bureaucracy: o Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 6 year 2004 on Transparency and Participation in Conduct of Government in Bandung Regency.

• To encourage reform of government policy, particularly in terms of allocated budget, to support poverty alleviation: o Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 2 year 2006 on the Allocation of Village Equalization Fund; This paper based on our perspectives as action researcher, which is also involved in the advocation process. As the result of action research, this paper will be enriched by the experience and perpectives of the researcher.

METHODS This study examines substance/concept, implementation and impact of the abovementioned public policies (local regulations). Analisis will be conducted sequentially to answer the three mentioned requirements for a public policy to be proven can break the structural barrier and aleviate poverty.

• First, we examine the substance of those regulation, by asking whether those regulations consistent with the aim, goal and conceptional background. We employed content analysis to analyse the concept behind those regulation. As if we found that those examined regulation to be proven consistent, we move further to examine the implementation.

• Second, we examine the consistency in the implemetation by using case study. As if in the implementation of those regulation found to be consistent, we move further to analyse the result of implementation.

• Third, as if the substance and the implementation found to be consistent, the last test is to check the result of implementation. We here assume that if the substance and the implementation consistent, then, the structural barrier will dissapear and the number of poverty will dicrease.

As mentioned in the introduction, as case study, we will examine the structure/public policy in Kabupaten Bandung.

RESULTS AND DISCUSSION To understand the case context of this study, first, it is important to describe the general condition of poverty in Kabupaten Bandung. Afterwards, the discussion will be focused on several public policies that intended to reduce the poverty. We will be

successively discussed about: (1) the concept of such policy; (2) the implementation; and (3) the result or impact on poverty alleviation.

A. General Condition of Poverty in Kabupaten Bandung Firstly, the main problem of the poverty issues in Kabupaten Bandung is the accuracy of the data on poverty. Official documents of the government within the last five years seldom stated the number of the poor population, explicitly and exactly. It is only on the Document of Poverty Reduction Strategy and Action Plan (PRSAP), the number of the poor population clearly and explicitly stated. The main resources are Population, Citizenry, and Family Planning Agency (Dinas Kependudukan, Catatan Sipil, dan KB). PRSAP developed by the Participatory Poverty Assessment Task Force (PPATF), a main part of Initiative on Local Governance Reform Program (ILGR), a World Bank funded program.

There are 944.564 households (hh) in Kabupaten Bandung at 2001. In two years time, the number of the population increased, and become 1.017.254 hh. Approximately 23.36 percent of the populations are categorized as poor household (see table 3).

Table 3. Poor Household in Kabupaten Bandung 2001 2002 2003 Number of Household 944.564 998.830 1.017.254 Number of Poor Household 235.000 263.844 237.651 Percentage 24,87 26,41 23,36 Source: Bupati Decree No. 7 Year 2005 on PRSAP Kabupaten Bandung.

The percentage of poor household is decreased from 24.8 at year 2001 to 23.3 at year 2003. However, the number of poor household is increased from 235.000 at 2001 to 237.651 at 2003, in line with the increasing number of total population. Finally, it is conclusive that in two years time the number of the poor people is nothing but increasing.

Poverty condition in Kabupaten Bandung indicated by the Human Development Index (HDI), which is 68.52 at year 2004, categorized at moderat level (under 80).

Among others, there are two worst dimension of HDI: Life Expectancy and Infant Mortality Rate. Life expectancy is at worst condition. In fact, it is getting sloppy and growing negatively at last five years, from 68.37 at 2000 to 65.85 at 2004. As worst as life expectancy, infant mortality rate growing negatively from 37 at year 2000 to 46 at year 2004 (see table 4).

Table 4. Human Development Index Kabupaten Bandung Year 2000 Year 2004 Human Development Index (HDI) 65,9 Literacy Rate (LR) 95,5 Mean Year School (MYS) 7,16 Life Expectancy (LE) 68,37 Infant Mortality Rate (IMR) 43 Purchase Power n.a Source: BPS and Bapeda Kabupaten Bandung.

68,5 98,2 8,03 65,85 46 n.a

The figure above, describe the condition of health and education of the people of Kabupaten Bandung. To speak in general, there are a poor access of the people to

the services of health and education. There are two general perspectives, viewing that condition.

First is free market economy perspective, which the poor access to the health and education services is caused by the poor level of purchasing power. On the other hand, the structural-functional point of view, as well as this paper point of view, which is claimed that the poor access of the people to the health and education services is caused by the structural factor, which is not pro-poor.

Some efforts are applied from year to year. From 2000 to 2004, it is recorded about 52 programs are applied. All are oriented to the single objective: poverty reduction.

However, the general approaches to the program are charity and empowering the purchasing power of the people. None of them is oriented to the structural change of governance to become the pro-poor one. Until 2003, there are two initiatives to change the governance system, ILGR (Initiatives on Local Governace Reform) and IPGI (Indonesian Partnership on Local Governace Initiatives). ILGR was World Bank funded program cooperate with Bapeda, IPGI is Ford Foundation funded program, initiate by local NGO cooperate with Bapeda.

B. Public Policies that Create Condition Towards More Participative Public Policy B.1 Analysis of the substance Bupati Decree No. 22 year 2002 on Annual Planning Procedure in di Kabupaten Bandung Bupati Decree No. 22 year 2002 enacted to be the guidance of the annual planning procedure. It is strengthen the public participation. Public participation in annual planning held at village level, sub-district level, and kabupaten level (article 3 clause 1). One of the distinctive aspects of the public participation is the existence of people delegation to join the planning process at every level (article 4 clause 3, article 5 clause 3, article 6 clause 4, article 7 clause 5).

Local Government Regulation No. 8 year 2005 on Local Developmnet Planning Procedure As the Bupati Decree No. 22 year 2003 enacted and implemented, there is a need to strengthen the legal aspect of this procedure. Therefore, in year 2005, Local Legislator and Bupati enacted the Local Regulation No. 8 year 2005 on Local Development Planning Procedure. The higher legal statue of the planning procedure could enable more control and participation of the people in the planning process as well as the Local Legislator. Beside that, Local Regulation No. /2005, is conform to Law No. 25 year 2004 on National Development Planning System.

In general term, Local Regulation No. 8/2005, regulate a more comprehensive and detail mechanism of planning procedure. It put in order the mechanism and procedure of Longterm Development Plan, Midterm Development Plan, and Annual Development Plan. In specific term, this regulation is strengthen the public participation in every procedure of the development planning.

Several articles that specifically regulate the public participation. Those are: a. Public participation in multistakeholders planning forum (article 9 clause 2, article 10 clause 1, article 11 clause 2, article 13 clause 2, article 15 clause 2, article 17

clause 2, article 20 clause 2). b. Decision making process in multistkaholders planning forum (article 10 clause 5, article 15 clause 4). c. Various kinds of civil society organization that involve in multistakholders planning forum (article 10 clause 2 and article 20 clause 3).

A brief analysis of the substance of the mentioned regulations can be seen in the Table 5.

B.2 Analysis of the implementation The enactment of Bupati Decree No. 22/2002 was the initial step to implement the participative planning process as well as the transparent one. Decision making forum at every level of planning process could be the great opportunity for civil society to influence the nature and content of the public policy. Especially in term of annual budget allocation. The more participative and transparent the process, the more propoor the budget allocation will be.

Nevertheless, Bupati Decree No. 22/2002 was vague in term of implementation. It was indicated by lack in number of village which organized the event of Multi Stakeholders Planning Forum (Musrenbang). Another indication -even so the village, sub-district and kabupaten organize that event-, it was not dedicated to the process of collective decision making.

There are several reasons of the vagueness of the Bupati Decree No. 22/2002 in term of implementation. First of all, because the existence of the elite in village, sub-district and kabupaten level, who captured the participatory process. Sometime they decide not necessarily to organize the event of Musrenbang. Or in another way, even if they do organize the Musrenbang, they decide to decide nothing in Musrenbang, because the level of decision-making process was far beyond the reach of the common people.

In addition to the elite capture factor, one main problem of the implementation of the Bupati Decree No. 22/2002 is the absence of penalty to the parties who did not implement the rule as it has to be. If there were a penalty, it is possible that the elite capture could be diminished.

In year 2005, the lack of implementation of Bupati Decree No. 22/2002, tried to solve by the enactment of Local Regulation No. 8/2005 on Local Development Planning Procedure. The later, concist of a more comprehensive and detail aspect of planning process, participantxxiv, as well as public control to ensure the implementation of the rule.

In term of implementation, Local Regulation No. 8/2005, is in process to be implemented, since it is only a year time to evaluate. Nevertheless, several indications are positive. They are: (1) the enactment of Midterm Development Plan year 20062010 which consist of increased indicative budget allocation for health and education sector; and (2) public participation in legislative discussion to decide the Midterm Development Plan. Those could mean the initial step for civil society to participate in annual budgeting process. A brief analysis of the implementation of the mentioned regulations can be seen in the Table 6.

Table 5. Resume Of Related Articles, Consequences And Expected Impact Of Public Policies That Create Condition Towards More Participative Public Policy Expected Impact Consequences on the Structure of Policy Bupati Decree No. 22 year 2002 on Annual Planning Procedure in di Kabupaten Bandung Articles

Article 3 clause (1) and (2)

Substance of Articles

Stages of annual development planning forum, from villages to regency level.

Better development planning processes. Not only top-down, but also bottom up development planning.

Bottom up planning will guarantee a more responsive development plant to the needs and aspiration of the poor and marginalized community.

The existence of planning forums give the poor and the marginalized a chance to involve and express their needs and preferences in the development.

Local Regulation No. 8 year 2005 on Local Developmnet Planning Procedure Article 9 clause (2), Article 13 clause (2),

Article 10 clause (1), Article 15 clause (2) Article 10 clause (2)

Article 10 clause (5), Article 15 clause (4)

Regulation on obligation for the government to conduct public consultation as a mean to receive critics and comments from the people on the first draft of long, medium and annual local development plan.

The involvement of people in the meeting for long or medium range development plan (musrenbang).

Identification of element of community that required being involved in the meeting for long or medium range development plan.

Those elements are community organizations, citizen forums, youth organizations, women organizations, universities, association of professions, and mass media.

The agreement in the meeting for long or medium range development plan (musrenbang) are signed by both govenrment and community representations.

There are more space for the communities to participate in any forum of public policy making process (deliberative forums, public consultations, etc).

As result, the structure becomes more open, and people participations are guaranteed. They are guaranteed to participate in any planning forums.

Futhermore, decision-making process are more open, transparent, and participative.

The relation between

The involvement of the elements of community is expected to influence the substance of development plan.

Therefore, the plan will be more responsive to the need and preferences of the people.

Articles

Substance of Articles

Consequences on the Structure of Policy

Article 11 clause (2), Article 17 clause (2)

Regulating the obligation to arrange a public consultation in order to get input, advice or suggestions to the final draft of long or medium range development plan.

Obligation to involve the people in the meeting of medium range village development plan.

Identification of element of community that required being involved in the meeting for long or medium range village development plan. Those elements are community development organizations, women organizations, local leaders, and religious leaders, local NGOs. The agreement of the meeting must be signed by representation of government and community.

Regulating the involvement of community in the making of annual local government work plan.

Those articles mention the parties that allowed participating in planning forums.

government and the people are equal. They have equal opportunities to influence public policies.

Article 20 clause (2) Article 20 clause (3)

Article 20 clause (5) Article 26 clause (1) Article 4 clause (3) Article 5 clause (3) Article 6 clause (4) Article 7 clause (5)

Expected Impact

Table 6. Resume Of Substance, Implementation and Result Of Public Policies That Create Condition Towards More Participative Public Policy Background Substance Implementation Result Bupati Decree No. 22 year 2002 on Annual Planning Procedure in di Kabupaten Bandung The decree of the ministry of internal affair no.29 year 2002 does not arrange the mechanism to allow any form of people participation.

The decree of bupati is mean to fullfil the unregulated mechanism of people

Arranging the process of community forums in development planning, from village to regency level. It is the implementation of bottom up planning approach.

These forums are meant to gather peoples aspirations.

This decree was aimed as guidance in the development planning process, to guarantee peoples participation from the earlies stages. The result of these processes used as an input for the making of local government budget.

There is no massive participation of the people.

The community is only represented by several members of community organizations, which is related with the government functions.

The decree still cannot give enough opportunity for participation of the people in the making of public policy, particularly to influence development plan and budget. The output of the policy still cannot reflect the need of the peoples.

Background

Substance

participation.

Implementation

Result

The reason for it, that there is no guarantee of the implementation of people aspirations. Government officials thought that is not necessary to allow the people to participate, since they cannot give any promise.

Therefore, the people, particularly the poor and marginalized, still doesnt have any access to influence the development plan. Most of the decisions are taken by elites and government officials.

Local Regulation No. 8 year 2005 on Local Development Planning Procedure In order to achieve more effective, eficient, and responsive local development by adopting participatory planning principles.

Regulatin on the substance, proces and involved stakeholder in development planning. The substance is related with kinds of document must be produced at every stage of planning process, from planning to the enactment.

This regulation is implemented in kabupaten bandugn since 2006.

In the making of medium range development plan, this regulatio did not implemented properly. The govenrment did not held public consultation.

Futhermore, public participation implemented at lowest level, only announcing the plan. There is no agreement between community and government representatives.

At the implementation of the midle range development plan, finally the community can influence the plan by intensive advocation to influence the budget plan.

With intense advocation, finally the community can influence the midle range development plan, and influence the budget plan.

However, it is beyond the regulated procedure on local regulation no.8/2005.

C. Public policy that enforce transparency and accountability in bureaucracy C.1 Analysis of the substance Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 6 year 2004 on Transparency and Participation in Conduct of Government in Bandung Regency.

The efforts to promote the implementation of good governance concept in regional level of government have been consistently being done by the central government, international institutions such as The World Bank and UNDP and non-government organizations concerning governance issues. One of those efforts which was conducted by central government and supported by The World Bank was the program titled Initiatives of Local Government Reform (ILGR).

Bandung District was one of participants of the program. Its objective was to support the poverty alleviation effort through promoting local good governance. The output

of the program was to create a policy instrument directed to reform the behavior of local bureaucracy toward a more transparent and participative.

District Regulation No. 6 Year 2004 is the policy instrument created by the ILGR program. The regulation is directed to promote an effective, efficient, and responsive government through the implementation of good governance principles within the whole process of governance and development. The substance of the regulation consists of two things that are transparency on information and procedure of public policies and services.

Related to transparency aspect, this regulation stated the principles, objectives, and scope of transparency as well as the types of public information which should be transparent and accessible. It also regulates the mechanism of accessing public information and monitoring of the implementation. The similar substances are regulated in the aspect of participation. Besides, this regulation also stated the administrative sanction against the public officers who resist against this regulation.

However, the regulation does not guarantee the implementation of public transparency and participation by the government because the mechanism of monitoring is limited at the internal monitoring held by Bupati and political monitoring held by DPRD. These two actors have worked hand in hand to disfunctionalize the regulation through eliminating the institution of public monitoring from the draft. As the result, there is no systematic and institutionalized monitoring held by public or civil society toward the government.

A brief analysis of the substance of the mentioned regulations can be seen in the Table 7.

C.2 Analysis of the implementation The process of governance in Bandung Regency has been entering a new stage after the emergence of District Regulation No. 6 Year 2004. Public optimism revealed while the formulation process of the regulation was on going. Differ from other regulations, the draft of this regulation was formulated participatively by the working group which its member consists of the representatives of multi-stakeholders (civil society, government, and legislators).

Through this regulation, policy structures were forced to be more transparent.

Increasment of transparency, particularly on budget information, was expected to enhance the public participation and monitoring within the process of budget formulation and implementation. So that, the budget would be more effective, efficient and affirmative to the poor.

Yet, the emerging expectation toward a better policy structure suddenly faded out when the discussion of the draft took place in DPRD. There is a different view among stakeholders with respect to the substances particularly on the existent of transparency commission. Those who objected to the commission that were coming from the status quo have successfully dominated the forum against those who endorse it that were coming from civil society and reformist group. Finally, the commission of transparency was eliminated from the stipulated draft.

The exclusion of transparencey commission has significantly impacted the implementation of the regulation. The testcase of implementation conducted by a group of civil society with respect to transparency of budget information showed that the government remained unwilling to be transparent and the existence of independent institution which would guarantee the execution of the regulation and facilitate the public complain regarding transparency and participation is compulsory.

As the result, the budget information remains poorly accessible.

A brief analysis of the implementation of the mentioned regulations can be seen in the Table 8.

Table 7. Resume Of Related Articles, Consequences And Expected Impact Of Public Policy That Enforce Transparency And Accountability In Bureaucracy Articles

Consequences on the Expected Impact Structure of Policy Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 6 year 2004 on Transparency and Participation in Conduct of Government in Bandung Regency Article 2 clause (1) and (2) on the principles and aim of transparency

Article 12 clause (1) and (2) on the principles and aim of participation.

Substance of Articles

Principles of transparency are openness, approriateness, and facilitation. While the aim of transparency are (1) to increase responsibility of public bodies to the meaning of oppeness on every decision taken on the basis of democratic and transparent government, (2) to increase the role and function of public bodies in conducting good democratic and transparent government, and (3) to create a good and clean government Principles of participation are public interest, proportional, and accountability. While the aim of participation are (1) to increase responsiveness of public bodies, (2) to increase public awareness, (3) to influence the direction of the future and life and (4) to motivate the implementation of public bodies as facilitator, catalist and mediator.

This regulation will create a transparent government and public decisionmaking.

Increase the transparency of public policies, particularly those related with budget. It is expected to increase public participation in the form of monitoring and evaluation in the implementation of public policies. It is also expected to influence government budget to be more pro-poor.

The decision-making process will not dominated by the government anymore. Community becomes an equal partner in public policy making process.

Public policies will address the need and to solve peoples problem.

Table 8. Resume Of Substance, Implementation and Result Of Public Policy That Enforce Transparency And Accountability In Bureaucracy Background Substance Implementation Result Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 6 year 2004 on Transparency and Participation in Conduct of Government in Bandung Regency The implementation of the principles of good governance (transparency, participation, and accountability) in the government of kabupaten bandung.

This regulation is enforced by the support from central government through the Initiatives of Local Government Reform (ILGR) program.

There are two main substances in this regulation. The first, transparency on information and procedures of public services. The second, participation in every process of decision making on public affairs.

Unfortunately, implementation of this regulation as not as well as expected. On the other hand, the regulation not implemented at all.

The government still performs neither transparent nor participative.

Moreover, the government releases a bupati decree on the implementation of local regulation no.6/2004, which is contradictory in substance.

Information and public participation still inaccessible. The government still prohibits access of the people from their rights.

D. Public policies that encourage reform in government policy toward poverty alleviation D.1 Analysis of the substance Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 2 year 2006 on the Allocation of Village Equalization Fund This policy was inspired by several policies concerning regional autonomy issued by central government. These policies were so-called by a package of autonomy polices which consisted of authority and fiscal desentralization (Act No. 32 and 33 Year 2004). The package of policies were further interpreted by reformist group in Bandung Regency toward a package of decentralization policies form district government to village government. Therefore, the draft of twin regulations regarding village authority and equalization fund were issued by a group of civil society. These two drafts were proposed to DPRD to be discussed in legislation process. Through a long and fatigue discussion, one of the drafts was stipulated as a District Regulation No. 2 Year 2006. Meanwhile, another draft on village authority was postponed to unlimited time.

Most improtances substance of this regulation are: • An explicite admitance of village autonomy • Alocation of resource from local government to village based on the principle of transparency, certainty, fairness and even distribution.

•

Alocation of resurces that reflect the burden of village government as consequences of their obligation to serve public and development, and as result of the unique condition and specific objective of the village.

The regulation admits the needs of decentralization, the existence of village autonomy, and the existence of role sharing between governments. it is expected to resut in (1) a shorter decision-making process, and people can easily access it, (2) a more independent village (3) harmony between village and regency government.

Therefore, strucktur of public policsy becomes more simple and meaningfull; and the decision-making process becomes more responsif, eficient and transparent to the people.

The regulation empahasize that Village has the rights on their own sources of finance and on alocation of budgets from higher governments. Alocation of resurces from higher-level government should reflect the burden of village government as consequences of their obligation to serve public and development, and as result of the unique condition and specific objective of the village. The expected impact is that village can easily and certainly alocate resource for the development in their village in a rational and eficient way. it will enable village to design a more rational and realistic development plan. They can set their own objective of development, responsive to the need of the village.

The regulation allows the alocation of resource from local government to village based on the principle of transparency, certainty, fairness and even distribution. With the implementation these principles, Village will have a better position to the regency government and to other village. it is expected expected that the transfer of resource will reduce the burden of public service of each village and fill the fiscal gap. It is also expected that will be less complain from village on the alocation of resource from local government.

A brief analysis of the substance of the mentioned regulations can be seen in the Table 9.

D.2 Analysis of the implementation No much can tell about the implementation of the policy. Since it was just enacted in the beginning of january 2006, it will effectively implemented in 2007. Nevertheless, this year the formula to alocate resource to the villages begin to be implemented as trial.

From the trial, villages receive different amount of resources. It depends on the “score of variables� of each village. Those variables are the number of poverty, basic education, health, accessiblity, number of inhabitants, total area, economic potential, peoples participation, number of community unit. As result, some villages receive more funds, while other receive less.

A brief analysis of the implementation of the mentioned regulations can be seen in the Table 10.

Table 9. Resume Of Related Articles, Consequences And Expected Impact Of Public Policies That Encourage Reform In Government Policy Toward Poverty Alleviation Articles

Substance of Articles

Consequences on the Expected Impact Structure of Policy Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 2 year 2006 on the Allocation of Village Equalization Fund Article 2 clause (1) and (2) Article 8 clause (2) and (3)

The clauses emphasize the needs of decentralization, the existence of village autonomy, and role sharing between governments.

Articles 3-12

Village has the rights on their own sources of finance and on alocation of budgets from higher governments. Alocation of resurces that reflect the burden of village government as consequences of their obligation to serve public and development, and as result of the unique condition and specific objective of the village.

Alocation of resource from local government to village based on the principle of transparency, certainty, fairness and even distribution

Article 10 clause (1) Article 11-15

expected to resut in (1) a shorter decision making process, and people can easily access it, (2) a more independent village (3) harmony between village and regency government Village can easily and certainly alocate resource for the development in their village in a rational and eficient way.

A more simple and meaningfull decisionmaking process.

Public policy becomes more responsif, eficient and transparent to the people A more rationals and realistisch development plan.

Village can set their own objective of development,

Village has a better position to the regency government and to other village.

Less complain from village an the alocation of resource from local government.

It is also expected that the transfer of resource will reduce the burden of public service of each village and fill the fiscal gap.

Table 10. Resume Of Substance, Implementation And Result Of Public Policies That Encourage Reform In Government Policy Toward Poverty Alleviation Background Substance Implementation Result Local Government Regulation (Perda/Peraturan Daerah) of Bandung Regency number 2 year 2006 on the Allocation of Village Equalization Fund The need to strengthen village autonomy, particularly in the development of their village.

Principles of fiscal decentralizatiion, source of finance, alocation mechanism, etc.

Tmplementation shall take place in the folowing year. But the trial is already conducted.

There is a relatively more acceptible amount of fund alocated to each village. But still need to be perfected.

CONCLUSION From the mentioned three requirements that a policy will cange the structural barrier, (1) the concept and the substance of policies are pro poor; (2) the implementation is also pro-poor; and (3) the result or impact on poverty, it is found that most of the analized public policies cannot fulfill the second requirement. It is true that substantially all the analized regulation are pro-poor. However, the implementation is still far from expected.

The implementation of those analized regulation still faced several obstacles. The biggest obstacle is the capacity of stakeholder and the willingness of bureaucrats to implement those regulations. In the implementation of local regulation no.8/2005, it is found that several steps of development planning process, particularly those related with people participation and public consultation, are not performed.

As well with the implementation of local regulation no.6/2004. Its not implemented at all. The enactment of bupati decree on the guidance to implement this local regulation no.6/2004, which is substantially contradictive, has “successfully” avoid the correct implementation.

In general, those analized regulation is consistent with the aim to aleviate poverty.

Those regulations provide foundations towards a better structure of public policy.

However, the problem now is in the implementation of those regulations. We still need more time to see the correct implementation. It is depend on the capacity and the willilingness of all stakeholders.

Regarding the results of our study, we recommend stakeholders to have a better implementation, particularly the government officials. In addition, if necessary, enforce law on the violation of those regulations. We also recommend citizens and mass media to perform continuous monitoring on the implementation of those mentioned regulation. We propose the need to enhance the capacity of local government and citizens, particularly in the implementation and monitoring of those regulations.

i

This paper will not provide further discussion on two groups of paradigm or grand theories on poverty: neo-liberal and social democrat that consider poverty as a problem of individual and structural. Those two paradigm aggree that the role of state is important, eeither to “correct market failure” (neo-liberal) or to guarantee everyone can participate in social transactions that enable all members of community decide their choices and how to fulfill the needs (social democrat). ii Cheyne, Christine, Mike O’Brien dan Michael Belgrave (1998), Social Policy in Aotearoa New zealand: A Critical Introduction, Auckland: Oxford University Press. iii Edi Suharto, Konsep dan Strategi Pengentasa Kemiskinan Menurut Perspektif Pekerjaan Sosial, Sekolah Tinggi Kesejahteraan Sosial (STKS) Bandung, (http://www.policy.hu/suharto/makIndo15.html; accessed 08/08/2006 10:51)

iv

Makmun, Gambaran Kemiskinan dan Action Plan Penanganannya, Kajian Ekonomi dan Keuangan, Vol.7, No.2 Juni 2003 v Gunter Rochow, Poverty: An Overview of Key Issues, Occasional Paper 6, Capra International Inc., 1557 Bella Vista Drive, Cumberland, ON, K4C 1A7 Canada vi “The powerful or politically advantaged hold and maintain a grip on resources (political, natural, or otherwise) to maintain their authority. Whether through ruthless exploitation, seemingly harmless cronyism, or patron-client relationships, these elites maintain power at the expense of citizens’ rights.” Lawrence G. Dixon, The Antidote to Patronage, Power Politics, and Structural Poverty? Humanitarianism and Rights: Thoughts from a Practitioner, PRAXIS The Fletcher Journal of Development Studies, VOLUME XVII - 2002 vii Rehman Sobhan (2005), A Macro Policy for Poverty Eradication through Structural Change, Discussion Paper No.2005/03, UNU World Institute for Development Economics Research (UNU-WIDER), Helsinki, Finland viii Jimy M. Sanders (1991), “New” Structural Poverty?, The Sociological Quarterly, Volume 32, Number 2, pages 179-199. ix Gregory Jordan (2004), The Causes of Poverty-Cultural vs. Structural: Can There Be a Synthesis?, Perspectives in Public Affairs, Spring 2004 (pages 18-33) x According to Makmun (2003), cultural poverty caused by the existence of “unproductive” cultural values in a community. For example, a girl doesn’t have to pursue high education, etc. An identified example in Indonesia can be seen in Sri Widowati Sugih Hastuti (2003), Miskin Prilaku, Jurnal Ekonomi Rakyat Th.I - No.11 - Januari 2003 (http://www.ekonomirakyat.org/edisi_11/artikel_5.htm ; 08/08/2006 11:03). Further discussion on the term of “cultural poverty” can be found in Gregory Jordan (2004), The Causes of Poverty-Cultural vs. Structural: Can There Be a Synthesis?, Perspectives in Public Affairs, Spring 2004 (pages 18-33) and Jimy M. Sanders (1991), “New” Structural Poverty?, The Sociological Quarterly, Volume 32, Number 2, pages 179-199. xi Nasution (1996) in Tatang Wiranto, Profil Kemiskinan di Pedesaan, Info URDI Vol. 14 xii In this context, we, as action researcher, do not differentiate prescription to solve problems of poverty, neither from neo-liberalism nor social democrats points of views. Both points of view require government intervention to solve the problem of poverty, the extent of government intervention that those points of view differing. In fact, public policies that we shall examine as case study in the following section are not differentiated in to both distinct points of views above. xiii He said that “Eradicating poverty requires more than simply providing food, digging wells, donating seeds and farm tools, and offering technical assistance. Indeed, to tackle the root causes of poverty, issues of politics, justice, and rights must be addressed”. xiv Sarah Cook (2006), Structural Change, Growth and Poverty Reduction in Asia: Pathways to Inclusive Development, Development Policy Review, 2006, 24 (s1): s51-80 xv Rehman Sobhan (2005), A Macro Policy for Poverty Eradication through Structural Change, Discussion Paper No.2005/03, UNU World Institute for Development Economics Research (UNU-WIDER), Helsinki, Finland xvi UNDP Human Development Report, 1994. xvii The macro level would address necessary policy changes, the meso level desirable focused approaches and the micro level targeted initiatives; xviii Dalle Daniel Sulekale (2003), Pemberdayaan Masyarakat Miskin di Era Otonomi Daerah, Jurnal Ekonomi Rakyat Th.II No.2 April 2003 (http://www.ekonomirakyat.org/edisi_14/artikel_2.htm; 08/08/2006 11:02) xix IDBM Adiyoga and Erni Herawati (2003), Pola Nafkah Lokal-Acuan Mengkaji Kemiskinan di Era Otonomi Daerah: Kasus Propinsi Nusa Tenggara Timur, Jurnal Ekonomi Rakyat Th.I - No.12 - Februari 2003 (http://www.ekonomirakyat.org/edisi_12/artikel_3.htm; 08/08/2006 10:59) xx All numbers, from many relevant sources, presented here only seen poverty from economic point of view. Meanwhile, there is a wide array of definition of poverty. xxi Republika, 11 Januari 2003

xxii

Siaran Pers Kementerian Koordinator Bidang Perekonomian Republik Indonesia, tanggal 27 Maret 2003 xxiii Berdasarkan persentase, Kabupaten Kuningan menempati posisi tertinggi dengan 20,36% penduduknya (203,3 ribu jiwa) berstatus miskin. xxiv Local regulation of Bandung Regency No. 8/2005 Article 10 clause 2 stated that the participant from community consist of representation of community organizations at subdistrict level, citizen forums, youth organizations, women organizations, academics, association of professions, and mass media. At village level, article 20 clause 3 said that the participant of development planning meeting consist the representatiion of village development organization, community organizations, women organizations, neighborhood organizations, community leaders, religious leaders, and local NGOs.