For the past several years, localized conflicts in Indonesia have had negative social and economic consequences in affected sub-districts (kecamatan). In Maluku province, the growth rate has dropped by over 12% between 1997-2001. These conflicts have led to the depletion of social capital and the collapse of public service delivery.
The World Bank Country Assistance Strategy of December 3, 2003 focuses on governance reforms and addresses conflict through decentralized public institutions which are responsive and accountable to the needs of the poor. Twenty-five percent of all lending ($200 million per year) is allocated to scale up community-driven development projects.
One such project is the Kecamatan Development Program (KDP). Through the strengthening of sub-district village councils, the KDP institutionalizes participatory processes and provides for the cost-effective provision of basic social and economic infrastructure. Research involving both quantitative and qualitative methods is currently being conducted to evaluate whether the KDP helps communities better manage conflict.
To leverage lessons learned from KDP, the World Bank has initiated the Social and Economic Revitalization Project (SERP). It's aims are to (i) move the policy framework from one of 'conflict management' to one of 'transition from conflict to redevelopment'; and (ii) provide mechanisms through which local communities can participate in dialogue so that policies meet the particular needs of all population groups in conflict-affected areas. The objectives of the project are to help reverse the negative consequences of conflict by strengthening community-led planning and dispute resolution processes and increasing utilization of effective education and health services. SERP's first order of business is to assist Indonesia in breaking the conflict cycle.
The design and implementation of the SERP focuses on community planning methods and is informed by knowledge on end user involvement in social service delivery summarized in the 2004Â World Development Report. All components of the project are built on an inclusive process during which communities assess their needs and priorities and use the project structure to sort through appropriate but fast-acting responses to them. Relationships between the community and local government are institutionalized via the school and health committees, business forums and sub-district and district forums, in ways that provide positive examples of state involvement. By providing voice to the community, the project will help both to strengthen local governance and to build accountability within local government.
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