Managing Development Assistance to Improve Fiscal Decentralization in Indonesia
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Empirical evidence and argument is presented concerning the benefits of multi-donor facilities as a mode of development assistance within the field of decentralisation in Indonesia. Principal benefits include the quality and relevance of support provided, combined with significant economies of scale for donor partners and for government. Most important of all, however, is the fact that assistance provided under such facilities is genuinely government-led, making the multi-donor facility a preferred mode of aid delivery and management for the Government of Indonesia. Future success will hinge on the willingness of all development partners to participate constructively in such facilities; to exercise patience as well as commitment in order to give them sufficient time to work; and to be prepared to advance incrementally in ways that are not always in the precise direction or at a pace that conform neatly to individual or institutional predilections.
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