Researcher warns of risks in governance of social assistance distribution through village cooperatives

However, if the governance is weak, it actually opens up space for patronage, where access to social assistance depends on closeness rather than need. Jakarta (ANTARA) - Researcher from the Center of Reform on Economics (CORE) Yusuf Rendy Manilet has reminded of the importance of strengthening the governance of involving Merah Putih Village Cooperatives (Kopdes) in the distribution of social assistance (bansos) to avoid creating new problems. According to him, in theory, village involvement can improve the accuracy of distribution because they are more familiar with their residents’ conditions. “However, if the governance is weak, it actually opens up space for patronage, where access to social assistance depends on closeness, not need,” said Yusuf to ANTARA in Jakarta on Wednesday. He also highlighted the potential for conflicts of interest in that scheme, especially if social assistance recipients are also involved as managers or workers in the cooperative that distributes the assistance. “If recipients of social assistance also become part of the managers or workers in the cooperative that distributes it, the boundary between recipients and distributors becomes blurred. This is risky,” he added. According to him, in social protection practices, the separation of roles between the distributing party and the receiving party is an important principle to maintain accountability. To ensure that social assistance distribution remains on target, Yusuf emphasised several prerequisites that need to be met. First, recipient data must be connected to the central system and updated periodically, not just relying on static lists at the local level. Second, he mentioned that the distribution mechanism should preferably be done non-cash so that it can be traced. Third, he continued, an independent complaint channel needs to be provided that does not depend on the cooperative or village government structure, so that the community has a safe space to voice complaints. In addition, he assessed that policy implementation should not be carried out directly on a large scale. “Pilot testing and evaluation are needed first before it is expanded,” said Yusuf. The government states that Kopdes Merah Putih is part of the state infrastructure designed to strengthen community economic access. Village cooperatives will act as off-takers of agricultural products and price stabilisers, distributors of strategic goods, social assistance distributors, as well as providers of financial services with 6 percent interest credit.