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

In: Globalization and Urban Development

Author

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  • Christopher Silver

    (University of Illinois)

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.

Suggested Citation

  • Christopher Silver, 2005. "Do the donors have it right? Decentralization and changing local governance in Indonesia," Advances in Spatial Science, in: Harry W. Richardson & Chang-Hee Christine Bae (ed.), Globalization and Urban Development, pages 95-108, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-28351-5_7
    DOI: 10.1007/3-540-28351-X_7
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    Cited by:

    1. Hampton, Mark P. & Jeyacheya, Julia, 2015. "Power, Ownership and Tourism in Small Islands: Evidence from Indonesia," World Development, Elsevier, vol. 70(C), pages 481-495.

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