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Managing Development Assistance to Improve Fiscal Decentralization in Indonesia

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Abstract

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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Correspondence to Heru Subiyantoro.

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Based partly on a paper presented by the first author at the School of Political Science and Economics - Waseda University, Tokyo, in conjunction with the 8th International Conference of Japan Economic Policy Association; National University Finance and Management Center; Tokyo; Nov. 28–29, 2009. I am grateful to Prof. Dr. Yasumi Matsumoto of Waseda University for inviting me to speak at the conference and to Peter Blunt for his extensive comments on earlier drafts of this paper. The opinions expressed in this paper are solely those of its author.

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Subiyantoro, H. Managing Development Assistance to Improve Fiscal Decentralization in Indonesia. IJEPS 5, 1–11 (2010). https://doi.org/10.1007/BF03405724

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  • DOI: https://doi.org/10.1007/BF03405724

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