Govt accountability demanded in safety net loan<\/p>\n
The World Bank has canceled the disbursement of the second US$
\n300 million tranche of a $600 million loan to Indonesia, due to
\nthe government's failure to meet agreed loan conditions.
\nSociologist Wardah Hafidz, coordinator of the Urban Poor
\nConsortium (UPC), says the measure has arrived too late.<\/p>\n
Question: UPC and other groups demanded that the World Bank
\nstop the social safety-net loan shortly after it began in 1998,
\nbut the cancellation occurred only last December. Your comment?<\/p>\n
Answer: In 1998, when we first made the demand, (World Bank
\nofficials) said the weaknesses could still be corrected. We made
\nthe same demand after the 1999 elections (following allegations
\nof vote buying using the social safety-net loan funds -- Ed) and
\nthey said the Bank must support the new legitimate government
\n(headed by President Abdurrahman Wahid).<\/p>\n
The demand for the loan cancellation was made because the loan
\nfunds, instead of reaching their target (the poor), had led to
\neven more widespread corruption, collusion and nepotism (KKN).<\/p>\n
The loans did not alleviate poverty because it was a piecemeal
\ncrash program. Job opportunities were not generated for the
\npoorest and the fight against health problems did not yield
\nsignificant results. Hence, the loans only added to our debt
\nburden.<\/p>\n
Wasn't the social safety-net loan only one of the programs
\naimed at protecting the poor from the impact of the 1997 economic
\ncrisis?<\/p>\n
It was the only (program) then. That it has been stopped now
\nis a very late measure ... They (World Bank) had so much evidence
\n(of misuse). Yet they insisted on continuing the program until it
\nhas accumulated to a Rp 30 trillion waste. This once again
\nreflects the Bank's lack of response to ... pervasive corruption.<\/p>\n
What were the main weaknesses of the social safety-net loan?<\/p>\n
The funds did not meet the targets, rampant KKN and
\ncentralistic planning -- poverty in the remote areas of Irian
\nJaya was approached in the same way as in the capital city.<\/p>\n
Didn't the program accommodate \"civil society consultations?\"<\/p>\n
Suggestions from below meant those from local bureaucrats. As
\nin the New Order (Soeharto regime), and as with many of our other
\nproblems, this \"elitism\" prevails. It was mainly suggestions from
\nthe universities, the non-governmental organizations (NGOs) that
\nhave been accommodated.<\/p>\n
A basic mechanism of the loan was \"independent verification of
\nresults\".<\/p>\n
There were many NGOs evaluating the social safety-net loan
\nwhich had found much weakness in its implementation. But because
\nthey also had vested interests, they argued the weaknesses could
\nbe corrected ... These included many government people who set up
\nNGOs to access the billions of rupiah provided in the loans.<\/p>\n
What about the mechanisms of \"information dissemination\" and
\n\"complaint resolution\"?<\/p>\n
In theory the data on the loans were sent to NGOs like UPC;
\nbut even NGOs had problems. Worse, people who were targeted
\ndidn't quite understand the information. The drive to monitor
\nsuch a program would be there if you knew what subdistrict had
\nloans for what.<\/p>\n
Complaint resolution largely consisted of a P.O. Box and e-
\nmail -- mediums of the middle class. There were indeed the
\nconsultants working among the people; some worked hard and others
\ndid nothing. The safety-net loans only enriched consultants.<\/p>\n
In one case of corruption of the loans in North Jakarta, the
\nofficials in charge at the National Development Agency just
\nreported to police and waited. So UPC staged a people's trial.<\/p>\n
With the cancellation of the loans how will the poorest cope?<\/p>\n
The question is only relevant if the funds had really reached
\nthe poor in the first place. Yet the end of the loans does not
\nreally mean the end of the program: it may continue under another
\nname. A poverty eradication program is being designed (under a
\ncommission led by agronomist) H.S. Dillon. I told him at a recent
\nmeeting that his concept sounds fine, but how will it tackle the
\ncore problem -- the rampant KKN?<\/p>\n
What is UPC focusing on now?<\/p>\n
We are preparing a class action on a national level, involving
\nother groups and also those in other cities, against the
\nPresident, the government and the World Bank, holding them
\nresponsible for the gross wastes of taxpayers' money in the
\nsocial safety-net program. We have gathered so many cases of
\nmalfeasance. The lawsuit will be filed in several district
\ncourts.<\/p>\n
What will the charges be?<\/p>\n
Basically, they must be accountable for the leakage of
\nfunds ... and we demand that the government no longer undertake
\npiecemeal policies to overcome poverty.<\/p>\n
Despite efforts to empower the urban poor, bureaucrats and
\ncity councillors are doing business as usual -- as indicated by
\nrecent reports of councillors asking for market kiosks. What does
\nUPC hope to achieve?<\/p>\n
At least there has been stronger awareness of the problems and
\nthat people just can't stay silent. Bureaucrats and councillors
\nmay not change soon, but the criticism has not been entirely
\nfutile. They know the heat is on, being criticized all the time.<\/p>\n
And this is happening in other cities too, like in Lampung
\n(South Sumatra) and Bandung (West Java), where people are
\nfocusing their oversight on their respective city budgets.<\/p>\n
UPC will also start working on the city planning issue,
\nanother key issue of city management, working among others with
\narchitects.<\/p>\n
What led to UPC's rallies calling for people to boycott paying
\ntaxes last Sunday?<\/p>\n
With the introduction of regional autonomy each province is
\ngoing all out to earn more income mainly from taxes. We're
\ntelling the city administration not to abuse these taxes.<\/p>\n
We know this is difficult. But at least this issue has entered
\nthe public domain, which means a warning to the administration
\nagainst abusing the funds.<\/p>\n
All this time we've been one step behind the administration
\nand reacting only when something happens. But focusing on the
\nbudget, for instance, is one way to be more proactive. (anr)<\/p>",
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