Presentation for Cirdap-Edited by Lia

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    Macro Micro Lingkages in ProjectMacro Micro Lingkages in Project

    Planning an Indonesian Case inPlanning an Indonesian Case in

    Tsunami Rehabilitation ProjectTsunami Rehabilitation Project

    I S K A N D A RDeputy for Economic and Business DevelopmentRehabilitation and Reconstruction Executing Agencyfor Aceh and Nias (BRR)

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    Housing

    Infrastructure

    120,000 housing units destroyed

    2260 bridges rendered un-passable

    6.611 fishermen in Aceh killedAll major harbors destroyed

    About 25.000 hectares Mangrovearea destroyed

    Fishery

    Industries

    Education

    Health

    150,000 students lost educationfacilities

    1823 teachers killed17,228 students killed

    2112 schools destroyed

    690 health centers destroyed

    LivelihoodsWithout reconstruction, GDP in Acehwould decline by 14% between

    2004 and 2005

    THE DAMAGE

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    AND DESTROYED OVER 800 KM OF COASTLINE

    San Diego

    Paris London

    San Fransisco 800 km

    320 km

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    TOPICS TO BE COVERED

    BRR TO RESTORE ACEH-NIAS ANDBUILD BACK BETTER

    RURAL DEVELOPMENT ANDAGRICULTURE/FISHERIESREVITALIZATION

    MICRO-MACRO LINKAGES

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    BRR TO RESTORE ACEH-NIAS AND BUILD BACKBETTER

    To restore livelihoods and strengthencommunities in Aceh and Nias by designingand implementing a coordinated,community-driven reconstruction anddevelopment program with the highest

    professional standards

    BRR Mission

    4-Years Vision

    To build dignified, transparent,democratic and prosperous Aceh andNias societies

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    COMMUNITY CONSENSUS IS A KEY FORBOTTOM-UP APPROACH

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    397

    391

    307

    1

    679

    320

    982

    USD million

    INTERNATIONAL COMMUNITY HAS SHOWN GREAT GENEROSITY

    Red Cross

    Bi-lateral donors

    Multi-lateral donors*

    United Nations

    Govt. of Indonesia(debt moratorium)

    NGOs

    Total value $3.6B

    MDTF

    391

    450

    1,203

    1,414

    600

    982

    2,100

    Approved projects Commitments/MOUs

    $7.1B

    * Includes EU, ADB, IDB, IOMSource: BRR Project Concept Note database, BRR Commitments/MOUs/Pledges database

    05budget

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    67

    65

    49

    18

    208

    215

    303

    367

    384

    Economicdevelopment

    Cross sectoral

    Institutional building

    Education

    Health

    Infrastructureand housing

    Religion, Social,and Culture

    Secretariat

    Spatial planning

    Not allocated

    1,941

    USD million

    Total value $3.6B

    MAIN FOCUS HAS BEEN ON HOUSING AND INFRASTRUCTURE

    Source: BRR Project Concept Note database

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    2005 GOVERNMENT BUDGETPROJECTS

    NEED TO BE MONITORED AND ACCELERATED

    400

    110

    45

    Budgetapproval

    Intenderprocess

    Started

    Government budget projectMillion Dollars

    Local government projectsfunded by 4 trillion Rp debtmoratorium allocation slowto start

    BRR hiring technicaladvisors to review projectdesigns and monitorprocurement process

    BRR reserves right to takeover direct implementationof projects in event ofserious delays orirregularities

    Governmentbudget

    monitoring&

    acceleration

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    TARGETS BYTHE END OFTHIS YEAR

    Get all IDPs out of tents

    Build 30,000 housesProvide water and sanitation to 35,000Issue 50,000 land titles

    Strengthen existing roads & bridges (to carry 20 tontrucks)

    3 ports rehabilitatedSea wall protection in Banda Aceh

    150 new or rehabilitated schools; 200 under construction2 hospitals and 130 health facilities completed (25Puskesmas, 30 Pustu, 75 Polindes)

    Rehabilitation or distribution of 10,000 boatsRehabilitation of 35,000 hectares of farmlandRecovery of 4,800 SMEs

    Complete training for 460 project leaders andadministrators, and head of technical offices from all

    Kabupatens

    IDPs

    Housing& land

    Infrastructure

    Education &Health

    EconomicDevelopment

    InstitutionDevelopment

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    Villageplanning

    Temporaryshelter

    Permanent housingShelter WorkingGroup creating

    alignment onstandardsClear targets agreedwith 20 organisationsresponsible for 80%of construction

    Emergency

    infrastructure

    Monitoring

    system

    BRR IS COORDINATING 5MAIN EFFORTS TO HELP ACHIEVE TARGETS

    2005TARGETS

    Village planningPlanning, communitymapping and land titlingstandards set (piloted withUSAID)

    Training starting for NGOsand facilitators for villagemapping and planning

    BPN accepts community

    planning for land titlingand have now sent 180staff

    Emergency infrastructureRehabilitate key

    infrastructure, facilitiesessential for transport andlogistics over next 6m

    World Bank funds managesFast implementation

    methodsNGOs, UN carry out work

    MonitoringInfrastructureBRR rolls out monitoringand evaluation system

    All stakeholders need toprovide activityinformation

    Advisory Committee onInformation Management& Monitoring (UNIMS,World Bank, etc.) RAND

    system online

    Temporary shelterGet 67.000 IDPs out oftents and upgrade existingshelters by mid December

    UNORC manages programIFRC leads implementation,importing temporaryshelters

    IOM+Atlas+UNJLC: logistics

    NGOs: assist shelterconstruction and upgrading

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    MONITORING SYSTEMWILLMAKE USE OF5 CHANNELS

    Projectprogressreporting

    Communitymonitoringmechanism

    ComplaintsHandlingMechanism

    BRR

    NGOs,Donors

    Bupati/Bappeda

    Camat Camat

    Villages

    Impactsurveys

    1 2 3 4RandomFieldChecks

    5

    Surveyor

    consul-tants

    Govt.projects

    PO

    boxes,SMS,e-mail

    Statistics

    Bureau,donors,

    academics, etc.

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    GEOGRAPHIC GAPS ALSO EXIST CERTAIN KECAMATAN

    MAY BE LACKING PROGRAMS

    * Source: Camat survey by Garansi of 77 affected kecamatan

    All sectors have plan or activity

    1 or 2 sectors have no plan or activity

    At least 3 sectors have no plan oractivity

    No data

    LegendKecamatan without plan or activity

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    KEYPERFORMANCE ISSUES

    Slow pace of 2005 governmentprojectsGovernmentprojects

    Local and centralgovernment departmentsto speed up fund flows &implementationNot always using community-

    driven approachVariable quality and equity ofoutputs

    Non-registration

    NGOs NGOs to adopt code ofconduct and register with

    BRR

    Risk of corruptionLack of transparency into fundusage

    Governance &transparency

    All stakeholders to cooperatewith BRR Anti-CorruptionUnit and KPK, e.g.,encourage use of complaintsmechanism

    Issue Action required

    Lack of consolidated, verifiabledata on reconstructionactivities

    Information All stakeholders tocollaborate with BRR-ledmonitoring processes

    Lack of awareness of programsamong IDPs&local communities

    Bupati and Camats not alwaysinformed

    Participation All stakeholders to invest incommunication withbeneficiaries & government

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    RURAL DEVELOPMENT AND

    AGRICULTURE / FISHERIES REVITALIZATION

    Low farmer/fishermen productivity

    Low farmer/fishermen income

    Low farmer/fishermen individual productivity

    SECTORLABOR PRODUKTIVITY INDEX

    YEAR2003 YEAR2004

    Agriculture, Fisheries,Forestry

    0.32 0.31

    Industry 2.80 2.78

    Industry related toagriculture, fisheries, andforestry

    2.61 2.64

    Condition beforeTsunami

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    Even lower farmer/fisher productivity

    Damaged agricultural land and fish pond Loss of fishing boat

    Loss of agricultural machinery

    (hand tractor, thresher, etc)

    Loss of livestock

    Condition afterTsunami

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    Build back better

    Revitalization of Agriculture, Fisheries andForestry (promoted by Indonesian

    President)

    Opportunity to start implementation of theprogram in NAD and Nias

    Possibly become a role model for otherprovince in Indonesia

    Rehabilitation andreconstruction

    Strategy Community base development

    Commodity base program

    Market orientation

    Integrated approach

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    Micro-Macro Linkages

    The concept of micro-macro linkages:

    different from a way it is commonly used

    Common : a) The effectiveness of the micro-level initiatives such asat the village level are successfully replicated in other

    areas and thus have a beneficial impact much greaterthan in the original program area.

    b) The degree to which micro-level initiatives have afavorable effect on macro policies.

    Sources : Assessment of Micro-Macro Linkages in PovertyAlleviation: South Asia prepared by the United NationsDevelopment Program Evaluation Office in October 2003.

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    Our discussion : examining the relationships between thebenefits produced by Micro-levelinitiatives/projects and the existing ofcomplementary Macro-level initiatives.

    Our basic the benefits/productivity of many types ofhypothesis: micro-level initiatives can be enhanced by

    complementary macro-level initiatives.

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    Problem in RR: The productivity of micro livelihood activities invillages is limited by insufficient linkages/supportfrom macro activities

    Soon after the Tsunami, NGOs acted quickly with various programs tohelp villagers restore their livelihoods.

    Major areas of endeavor were:

    1. Cash for work schemes helping farmers to clear their lands of debrisbrought by the tsunami and repair irrigation and drainage channels;

    2. Provision of agricultural ingredient inputs to farmers such as seeds,fertilizers, pesticides, etc.;

    3. Provision of machinery and equipment to farmers such as handtractors, tillers, threshers, hand tools;

    4. Replanting of trees especially coconuts and mangroves;

    5. Replacement of fishersboats, equipment, and landing sites assistsmall businesses to become re-established through grants and micro-credit;

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    6. Rehabilitation of household and cottage industries;7. Training persons to enable them to earn incomes as service

    providers or employeessuch as to become bricklayers, carpenters,mechanics, seamstresses, preparing foods of various types, fishdrying and other processing.

    The potential benefits from most

    of these micro livelihood activities

    are limited by insufficient supportivemacro activities.

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    A Strategy for Rehabilitation and Reconstruction

    Fast respond from NGOs with their livelihood programs need to be

    supported by macro program.

    The BRR recognizes that through its

    debt moratorium funds it can fund

    macro activities that will have a very

    positive effect on the benefits

    realized from the micro livelihoods

    funds.

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    The success of the agricultural livelihood activities is affected by themacro support activities.

    High quality seeds will increases productivity

    But need support from agricultural inputs:

    - such as chemical fertilizers and pesticides,- in the case of rice paddy to have good control

    over the irrigation water supply.

    Thus the BRR puts a very high priority on rehabilitating theroad network serving rural areas

    If the roads serving the farmers has not been repaired:

    - the costs of their inputs will be high,- the price of their produce will be low,

    - uneconomic for farmers to increase their productivity

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    Irrigation system is greatlyaffected by:

    - rehabilitation of the irrigationchannel and system by NGO

    - deforestation upstream anderosion

    For this reason the BRR:not just concerned with thecondition of the irrigation afterrehabilitation by NGOs inspecific villages,

    but also with the condition of the relevant parts of the connected riverbasin.

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    Chemistry of the soils:

    Change significantly after the Tsunami,especially in its salinity.

    In some cases the NGOs went ahead withtheir land rehabilitation and support forreplanting programs without being aware ofserious soil chemistry problems.

    Because of this, the BRR is supporting aprogram to have soil experts survey theseareas and make recommendations for

    treating the land before replanting it, ormaking recommendations about the types ofplants that are suitable.

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    Other macro factors affecting farmers

    productivity: titles to their land, the quality of research and its

    application the prevention of plant and animal

    diseases

    quality agricultural extension services the healthiness of the environment inwhich the farmers live

    In these cases usually actions at a larger than village scale are requiredto address problems and increase potentials.

    The BRR in its programs is providing support in these ways to the villagefocused livelihood programs.

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    Rehabilitation of Aquaculture Activities

    The rehabilitation of fish pondsincluding water supply anddrainage channels is also acommon livelihood activity incoastal areas.

    Macro external factors also greatly

    affect their success:

    Shrimp hatcheries and nurseriesto supply the baby shrimp

    Nearby cold storage, processing,and marketing facilities arerequired to support theaquaculture activities of thefarmers.

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    Rehabilitation ofFishing Activities

    The rehabilitation of fishing activities including: the replacement of fishersboats, Provision of equipment, and landing sites

    But:Not sufficient for success.

    Other facilities needed (supported by BRR): processing and cold storage facilities well developed transportation network

    to get the fish to market fuel service stations.

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    Rehabilitation of Household and Cottage Industries

    Rehabilitation of household and cottage industries (HCI) can also behampered by external macro factors.

    The existence of a sufficiently developed road network

    to lower the costs of raw materials and to increase the produced product price

    The availability of reasonably priced, reliable and good qualitysupplies of electricity.

    Availability of micro-retailers to sell their products.

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    Business development services:

    Can substantially improve their competitiveness,

    Can greatly complement village livelihood activities,

    Fortunately in Aceh:

    Swiss Contact and the International Finance Corporation throughtheir PENSA program will be helping to increase the supply of these

    services.

    General business climate

    The costs of licensing to operate (time and money). Avoid licensing when possible, unless control is essential

    One stop service centers is crucial, such as the small businessregional forums (FORDA) and the PENSA program

    Law and order are also very important. E.g. theft of produce.

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    Employment ofPersons Trained is Dependent on

    Macro / External Factors

    Livelihood programs often include training activities for employment bothwithin and outside the village. In the case of training for outsideemployment clearly policies and programs affect the employmentdemand for the trainees.

    If the persons trained are not the best trained and most productive, then apolicy of setting high minimum wage rates will make it difficult for themto secure the jobs relative to more highly trained persons. In the case ofAceh, employers may prefer to bring in more highly trained personsfrom other provinces.

    Clearly also the types of skills developed through the training must matchthe composition of demand for these skills in the marketplace outside ofthe village. Individual livelihood training programs in villages may notbe knowledgeable about the overall supply and demand for particulartypes of skills in the larger marketplace.

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    Thank You