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Indonesia: Implementing National Policies in a Decentralized Context: Special Purpose Programs to Protect the Poor

Ehtisham Ahmad and Luc Leruth

No 2000/102, IMF Working Papers from International Monetary Fund

Abstract: In the context of continuing adjustments in the economy, the Government of Indonesia proposes to bring energy prices closer to long run marginal cost, while adequately compensating the poor. We focus on the constraints on central government policy objectives towards the poor as decentralization takes effect. However, local governments currently lack credible social protection instruments and their objectives usually do not match those of the center, which imposes constraints on program designs. We discuss the suitability of a number of safety net mechanisms in a decentralized context and draw policy implications.

Keywords: WP; voucher system; coupon scheme; bus coupon; distribution process; oil price increase; Social safety nets; fiscal decentralization; incentives; energy prices; Public expenditure review; Inflation; Agricultural commodities; Transportation; Oil prices; North Africa (search for similar items in EconPapers)
Pages: 29
Date: 2000-06-01
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Citations: View citations in EconPapers (7)

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