BAPPENAS Said World Bank Analysis Less Precise
BAPPENAS Said World Bank Analysis Less Precise
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JAKARTA - Minister for National Development Planning / Head of Bappenas, Sofyan Djalil respond to criticism of the World Bank report about the village relief fund distribution mechanism mentioned that multilateral institutions can lead to inequality among the population.
He said the main results expected from the use of village relief funds is the establishment of a public infrastructure that could provide the economic multiplier effect for the people in the village.
Sofyan assess less appropriate if the village relief fund is defined as direct incentives given to every poor and vulnerable poor in the region.
"Village relief fund was not immediately (given) to the poor. Village relief fund is used to build public infrastructure that could increase the uptake of labor intensive sectors in the country," the minister said here on Wednesday.
However, in response to the World Bank report, Sofyan said it will first examine in full.
Sofyan explained, the use of village relief fund was mostly for the construction of public infrastructure that directly involve and empower rural communities.
With the direct involvement and empowerment, said Sofyan, the government can increase the productivity and welfare of the people in the village. As a result of the economic value created leverage the infrastructure will double.
"So what is needed is a companion to the quality of rural communities," he said.
In the quarterly report of the World Bank, on Monday (15/12) yesterday, economists Ndiame Diop stressed the agency 90 percent of the funding formula villages divided evenly every village, and only the remaining 10 percent are based on demographic and geographic criteria can trigger antarpenduduk inequality.
The calculation formula, said Diop, can make a village that has poor and vulnerable poor in quantity, accept the little village fund allocation.
Meanwhile, the number of rural communities and vulnerable msikin poor little receive a larger allocation.
"Formula 90 versus 10 cause large variations in the Village Fund allocation received by each resident," the World Bank report.
"The grouping of villages into deciles based on the amount of the Village Fund which is 90 percent they received under the scheme shows the average large village has a small amount for everyone to enjoy in the distribution, compared to a small village," wrote the World Bank.
The Village relief fund budget has increased over two fold to Rp 46 trillion in 2016 from Rp 20,7 trillion in 2015.
He said the main results expected from the use of village relief funds is the establishment of a public infrastructure that could provide the economic multiplier effect for the people in the village.
Sofyan assess less appropriate if the village relief fund is defined as direct incentives given to every poor and vulnerable poor in the region.
"Village relief fund was not immediately (given) to the poor. Village relief fund is used to build public infrastructure that could increase the uptake of labor intensive sectors in the country," the minister said here on Wednesday.
However, in response to the World Bank report, Sofyan said it will first examine in full.
Sofyan explained, the use of village relief fund was mostly for the construction of public infrastructure that directly involve and empower rural communities.
With the direct involvement and empowerment, said Sofyan, the government can increase the productivity and welfare of the people in the village. As a result of the economic value created leverage the infrastructure will double.
"So what is needed is a companion to the quality of rural communities," he said.
In the quarterly report of the World Bank, on Monday (15/12) yesterday, economists Ndiame Diop stressed the agency 90 percent of the funding formula villages divided evenly every village, and only the remaining 10 percent are based on demographic and geographic criteria can trigger antarpenduduk inequality.
The calculation formula, said Diop, can make a village that has poor and vulnerable poor in quantity, accept the little village fund allocation.
Meanwhile, the number of rural communities and vulnerable msikin poor little receive a larger allocation.
"Formula 90 versus 10 cause large variations in the Village Fund allocation received by each resident," the World Bank report.
"The grouping of villages into deciles based on the amount of the Village Fund which is 90 percent they received under the scheme shows the average large village has a small amount for everyone to enjoy in the distribution, compared to a small village," wrote the World Bank.
The Village relief fund budget has increased over two fold to Rp 46 trillion in 2016 from Rp 20,7 trillion in 2015.
(rnz)
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