Empower village economy: Minister

SUKOHARJO, Central Java (JP): "Empower the village economy."

That has been the calling cry of officials and experts as a possible answer to the economic crisis.

In Karanganyar village, Weru subdistrict, State Minister of National Development Planning/chairman of the National Development Planning Board Boediono reiterated over the weekend this urgent need as he kicked-off a World Bank-sponsored program for this purpose.

"We see that it is the village economy which has been less effected during the crisis," Boediono said as he launched a new national plan called the Kecamatan (subdistrict) Development Program.

He said the plan would be part of the government's effort to alleviate poverty.

Boediono said the program would not overlap other already existing state-sponsored poverty alleviation programs: the IDT program for least developed villages and the Kukesra rolling fund for poor families to help start their own small business.

Achmad Mongid, from the office of the coordinating minister for people's welfare which supervises the Kukesra program, was confident that all existing programs would work in "synergy".

"It will jointly address the poverty problems," said Mongid, an assistant to the secretary of the people's welfare coordinating minister.

Boediono said financial assistance totaling US$225 million has been made available by the World Bank.

The program targets 1,500 subdistricts in 20 provinces in Java, Kalimantan, Irian Jaya, Sumatra, East Nusa Tenggara and East Timor.

"Overall, the assistance is not big, but the step taken (through the program) is already on the right track. It is already a major contribution if it helps solve some part of the crisis," he said.

It is hopeful that the program will also help address the food scarcity problems, increase job opportunities and recover the economy faced by the nation, he said.

Boediono said there were four main aims the program hoped to achieve: to encourage villagers' active participation from an early phase of development, to enhance village economy so more job opportunities would be created, to build village infrastructure to support village social economic activities, and to encourage institution building within subdistricts and villages.

Under the plan, between Rp 500 million and Rp 750 million -- depending on a subdistrict's population -- will be allocated to selected subdistricts to help finance their development projects.

For East Timor, only Rp 250 million has been allocated due to its small subdistricts and population, Boediono said.

"The fund is a grant channeled to villages through subdistricts. It can be given three consecutive times, depending on achievements," he said.

Boediono said that villagers were the core of the program's success, and the government would only function as a finance and technical supporter.

According to information obtained from the planning board, groups of villagers in subdistricts could procure funds once their development proposals had been verified by the Village Resilience Board and the Subdistrict Development Forum.

Both village forums are respectively chaired by the village chief and the subdistrict head, the lowest level of the country's administration. (aan)