World Bank states its commitment

We agree with the broad views expressed by Nila Ardhianie in the April 8 edition of The Jakarta Post on the importance of improved monitoring and participation to ensure the best use of development assistance. And we remain committed to seeking new and innovative ways to strengthen monitoring and supervision of bank projects and programs designed to help the poor of Indonesia.

I am also writing to express my appreciation to groups such as the Yayasan Duta Awam for getting involved in the monitoring and assessment of development programs.

Duta Awam first presented us with the results of their survey of farmers in October 1998, at which time we attended workshops to discuss the findings. The survey highlighted a number of issues that our own supervision reviews had begun to reveal and respond to regarding problems with civil works, supply of agricultural input and mismanagement of the capital revolving funds.

It also brought to our attention for the first time additional problems with inadequate community participation and pesticide use. Our subsequent supervision in February substantiated some of the survey's results, while finding that other findings were outside the project area or have since been remedied.

Project management, with collaborative input from Duta Awam, is also undertaking a fact-finding survey to establish a firm basis for correcting the ongoing problems, better evaluate the status and impact of project works and ensure a successful outcome to this program.

Corruption, leakage of funds, money failing to reach targeted beneficiaries -- all of these are important issues that we, as an international financial institution, must tackle. We have been working for some time now to reduce opportunities for corruption associated with projects we help to finance, and have sought to increase the participation of non-governmental organizations, the media and others in project design, monitoring, and implementation, while tightening our own supervision and operational processes.

We have tried to address "collusion, corruption, and nepotism" (KKN) problems as directly as possible through the conditions attached to financing we have provided during the economic crisis, and we intend to continue doing so.

Specifically, we are working with the government to improve the functioning of the social safety net program by greatly increasing transparency and the role of communities themselves in the planning and monitoring of programs. In related efforts we have helped to develop what is known as the Social Monitoring and Early Response Unit (SMERU), which monitors the impact of the crisis on the poor as well as the effectiveness of social safety net programs in urban and rural areas.

Is this enough? Are we satisfied? The answer is "no," or perhaps more specifically belum (not yet).

Reducing corruption is a huge task that will need the best efforts of all stakeholders and this means government, media, NGOs, community groups, project beneficiaries.

MARK BAIRD

World Bank

Country Director, Indonesia

East Asia and Pacific Region