World Bank states its commitment

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