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Do the donors have it right? Decentralization and changing local governance in Indonesia

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  • Christopher Silver

Abstract

Indonesia has initiated an ambitious decentralization program since 1999 spurred on by the international donor community (earlier decentralization measures were more like “deconcentration” under strong central control). This paper examines the degree to which Laws 22/1999 and 25/1999 are working. Local government employment has been expanded (not fully offset by a decline in central government employment) and training has been provided. Many functions have been transferred to the local level, but this was not matched by adequate funding transfers. Those localities that fare best have revenues available from their own natural resources. The results, therefore, are very mixed, and it is much too early to determine whether decentralization is a success. Copyright Springer-Verlag 2003

Suggested Citation

  • Christopher Silver, 2003. "Do the donors have it right? Decentralization and changing local governance in Indonesia," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(3), pages 421-434, August.
    • Handle: RePEc:spr:anresc:v:37:y:2003:i:3:p:421-434
    DOI: 10.1007/s00168-003-0162-9
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    Cited by:

    1. Beard, Victoria A., 2007. "Household Contributions to Community Development in Indonesia," World Development, Elsevier, vol. 35(4), pages 607-625, April.
    2. Fritzen, Scott A., 2007. "Can the Design of Community-Driven Development Reduce the Risk of Elite Capture? Evidence from Indonesia," World Development, Elsevier, vol. 35(8), pages 1359-1375, August.
    3. Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2022. "On the effects of intergovernmental grants: a survey," Working Papers. Collection A: Public economics, governance and decentralization 2204, Universidade de Vigo, GEN - Governance and Economics research Network.
    4. Mohammad Jahangir Hossain Mojumder & Pranab Kumar Panday, 2022. "GO–NGO Teamwork for Strengthening Local Governance: A Review of Extant Literature in the Context of Bangladesh," South Asian Survey, , vol. 29(1), pages 81-102, March.

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