SINGULAR TRANSITION TO DECENTRALISED GOVERNANCE

Indonesia borobudur temple

Indonesia borobudur temple

2. INDONESIA
— Big-bang decentralization in 2001 after fall of Suharto in 1998 is the political choice of Habibie to sustain himself and safeguard the country from disintegration.
— To get support from regional representatives in parliament and attenuate separatist tendencies.
— It is not first attempt but recurrent.
— 1966 to 1998 experienced highly centralized regime characterized by high levels of corruption and low bureaucratic efficiency.
— It is also a strategy to bypass provinces that are the center of regional unrest, sense of easy controlling of local governments
— Local governments were given health, education, infrastructure, and environmental services. Provinces were given minor role.
— Formula based general allocation grants replaced the earmarked funds, which form 95% of budgets of local governments
— 2/3rds of civil servants were transferred from the center to the local governments, whose expenses are to be born by them but cannot hire or fire.
— Centre government can annul local laws and regulations if they conflict with national ones. The district head can be dismissed by regional legislatures. (6% of heads were dismissed in this fashion)
— To study their effectiveness the indicators of citizen perception and public-service delivery are taken, significant improvements were found.
— In recruitment of personnel corruption continued both at district and local level.
— Perceptions of corruption and quality of governance were positively correlated with ethnic and political fragmentation but uncorrelated with local per capita income, inequality, poverty, or education levels.

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