How the National Community Empowerment Program Improves the Living Standards of the Rural Poor in Yogyakarta

Latif Adam () and Siwage Dharma Negara ()
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Latif Adam: Centre for Economic Research, The Indonesian Institute of Sciences (LIPI)
Siwage Dharma Negara: Centre for Economic Research, The Indonesian Institute of Sciences (LIPI)

Economics and Finance in Indonesia, 2011, vol. 59, 297-315

Abstract: This paper examines the achievements and challenges with regard to the implementation of the national rural community empowerment program (Rural PNPM) in improving the living standards of the rural poor in Yogyakarta. We found tiiat the program has encouraged the active participation of poor communities in the development process in their area. In turn, this more active participation contributes to improved communities' social capital. The program also opened up access to financial sources for the poor, which lieiped them to participate in the production networks. However, the program also faced several challenges. There has been a strong indication that the program was biased tozvards the interests of tlie rural elites. In addition, tlie program has marginalized the participation of local governments. It was also found that the quality of infrastructure financed by the program is relatively poor. The most worrying concern is that there is no clear exit strategy at the completion of the program. These ciiaiienges may potentially reduce the effectiveness of the rural PNPM in improving the living standards of the rural communities sustainably. Tills paper recommends a strong political commitment and some determined actions needed to address those challenges to improve the effectiveness of the program in enhancing living standard of the rural communities

Keywords: PNPM; poverty; rural community; social capital; empowerment (search for similar items in EconPapers)
JEL-codes: R58 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:201115

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