NGOs criticize poverty eradication program

JAKARTA (JP): A group of non-governmental organizations advocating better conditions for the poor suggested on Tuesday that the government intensify people's participation in its poverty eradication program in order to avoid past mistakes.

Circle for Participatory Social Management (CPSM) chairman MM Billah told a discussion that instead of helping people escape poverty, past government programs prevented the poor from improving their lot.

"Credit venture, to cite one of many examples, put farmers in debt instead of improving their income," Billah said.

One of the government's mistakes, according to Billah, was its failure to control the prices of seeds which in turn caused production expenses to increase beyond the farmers' reach.

"As a result, farmers have to pay off more debts to the government," he said.

CPSM and 16 other NGOs conducted a four-month study of conditions among the poor in six areas. The result of the study will be presented to the government.

The latest Asian Development Bank data show that Indonesia has 37.5 million poor people, about 17 percent of the country's total population. Some 70 percent of the poor live in rural areas.

Billah said the government mistakenly issued regulations without knowing the needs of the public.

"People have never been involved in the decision-making process. That's why the regulations have been harmful to the people's economic life," Billah said.

Another activist, Bambang Shergi Laksomono, also underscored the importance of autonomy and people's empowerment in the poverty eradication program.

He said it should be the poor themselves who decide how to overcome their financial burdens.

In response to growing demand for a review of the poverty eradication program, the government plans to introduce a new social safety net program starting in the 2000 fiscal year. The program will focus more on recovery, instead of rescue operations.

A former deputy chairman of the National Development Planning Agency (Bappenas), Gunawan Sumodiningrat, said on Monday the country no longer needed rescue programs because of the improving economy.

The government proposed to the House of Representatives that Rp 3 trillion (US$410 million) be earmarked for the social safety net program in the coming fiscal year from April 1 to Dec. 31. The current annual budget allocated Rp 5.7 trillion for the program. (dja)