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ODA and Accountability: Case Study Indonesia

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Project budget: US$ 355,2 Mio. Project year: 1996 2000. Findings: Collusion between Publisher and MoE crony publisher. Among publishers arrange bidding ... – PowerPoint PPT presentation

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Title: ODA and Accountability: Case Study Indonesia


1
ODA and AccountabilityCase Study Indonesia
  • CALD FNS Conference
  • April 2006 Siem Riep, Cambodia

2
Why Give Loan to Authoritarian and Corrupt
Regime?
Source World Bank.
3
Case 1 Education SectorBook Reading Project
Project budget US 355,2 MioProject year 1996
2000FindingsCollusion between Publisher and
MoE ? crony publisher Among publishers ?
arrange bidding Mark-up on book prize Weak
procedures - quality of appraisal -
prerequisite can be changed ? flexibleWB
action black-list publisher
4
Case 2 Education SectorSchool Improvement Grant
Project
  • Grant from Netherlands govt and manage by WB for
    2001-2003 FY
  • Grant for 73 district or municipal - US 30 mio
  • For Garut district US 980,000 grant and US
    70,000 from local budget
  • The project manage by local education agency and
    monitored by CIMU
  • Each school received US 5,500 14,500 depend on
    condition
  • Findings
  • Down payment or marketing fee 10 20 of
    grant
  • Mark-down the building quality
  • Netherlands govt response by seizing the SIGP,
    instruct WB to investigate

5
Findings SIGP Garut
6
Case 3Agriculture Loan
Nusa Tenggara Agriculture Area Development
Project (NTAADP)Total Loan US 22,1 (IBRD
scheme)Project year 1996 - 2002Cover 24
sub-districtSulawesi Agriculture Area
Development Project (SAADP)Total Loan US 26,8
(IBRD scheme)Project year 1996 - 2002Cover 2
districtObjectives poverty reduction, increase
peasant incomeActivities improvement on
agriculture and cattle breeding, village
infrastructureTarget groups marginalized
peopleProject redesign micro credit
7
Findings NTAADP SAADP
  • Project design was highly centralized, top down
  • Unclear strategy ? from agriculture development
    to micro credit scheme
  • Overlapping project or Pseudo demand
  • Almost no impact for marginalized groups ?
    repayment of credit become success indicator
  • Only capable group or person can obtain credit
  • The creation of credit union was arranged by
    field officer ? relatives and friends

8
Recommendation on Findings
Participatory
Poor design couple with top-down approach
Community centered approach
Designated Target Groups Clear indicator
Returned to recipient, Legal action,
Compensating Victims
Cases sound monitoring
9
Fall into Debt Trapnet capital drain out
2005
2006
USD 3111 Mio
USD 5800 Mio
USD 6422 Mio
USD 2689 Mio
USD 9744 Mio
USD 3322 Mio
10
Fall into Debt Trapthere is a burden of the
National Debt
2005
2006
Source APBN-P2 2005 APBN 2006
11
Road Ahead
Donors Responsibility On Odious Debt Haircut (?)
3. No Foreign Loan cut off unnecessary projects
2. People Centered Approach - Participation
1. Prevent and Combat Corruption More Efficiently
and Effectively
12
Thank you for your kind attention
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