Minister deplores inefficient use of development funds

Minister deplores inefficient use of development funds

JAKARTA (JP): Minister of National Development Planning
Ginandjar Kartasasmita deplored yesterday the inefficient use of
developmental funds, saying it hampered past poverty alleviation
programs.

"We're actually not short of developmental funds. What's
happened is that the available funds aren't being utilized the
way they should," said Ginandjar, who is also chairman of the
National Development Planning Board (Bappenas).

In his opening remarks to a national meeting on the poverty
alleviation program yesterday, the minister blamed the lack of
congruity and synergy among the agencies involved.

"Low synergy will result in high costs and low results," he
said. A stable of mediocre human resources did not help either,
he added.

He also identified a lack of vision, low skill, half-hearted
commitment, and red tape as some of the obstacles to development
projects.

Among the remedies prescribed by the minister is better
coordination between government officials at all levels. "Better
coordination is needed to avoid confusion and competition between
one program and another," he said.

According to Ginandjar programs must also incorporate both
"top-down" and "bottom-up" approaches.

He explained that while a "top-down" approach may boost high
growth rates, it can also create economic disparity in society at
the same time.

"We are feeling this disparity now and, because of that, in
future development we must combine the approach with one which
invites greater public participation," he said, referring to the
importance of a "bottom-up" approach.

Ginandjar said the lessons of the past have been learned. A
number of new government programs, such as the assistance program
for least-developed villages, are being handled in a manner which
reflects the new realization, he said.

Ginandjar also said that the poverty alleviation program,
though started only two years ago, has yielded positive results.

Under the scheme, least-developed villages were granted Rp 20
million (US$8,695) a year as capital to launch economic
activities which would help boost their welfare.

The program has now reached 44 percent of all villages in
Indonesia, Ginandjar said.

"Although there has yet to be an extensive study on this,
accounts from various regions and on-site reports indicate a real
improvement in poor people's income," he said.

Those officially listed as the poor make-up 14 percent of the
total Indonesian population.

Speaking to journalists afterward, Ginandjar refuted
suggestions that Indonesia had sacrificed welfare distribution
for the sake of high growth rates.

He explained that in theory there was usually a trade-off
between the two, but fortunately not in the case of Indonesia.

"If growth is boosted then wealth distribution is sacrificed.
If you spend a lot of funds for wealth distribution then growth
declines. That's what usually happens."

Ginandjar said that in the case of Indonesia, the campaign to
turn an impoverished community into a productive one actually
helps to increase productivity.

He warned against reading too deeply into particular economic
indicators because many other factors come into play.

Bappenas and the Central Statistics Bureau announced recently
that the country's growth indicator for 1995 stood at 8.07
percent. (mds)