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A ripple in development? - Channel Research

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In Sri Lanka despite strong mobilisation by sub-national public<br />

governance <strong>in</strong>stitutions <strong>in</strong> the aftermath of the tsunami, few additional<br />

resources were allocated to them for tsunami work and their role was<br />

primarily to facilitate the work of aid agencies.<br />

In Indonesia, the BRR, endowed with m<strong>in</strong>isterial power, established<br />

its base <strong>in</strong> Banda Aceh and accelerated decentralisation. Decentralisation<br />

has clearly progressed <strong>in</strong> Indonesia s<strong>in</strong>ce the time of the tsunami,<br />

although serious issues of local capacity rema<strong>in</strong>. As consistent<br />

with the wishes of the Government of Indonesia, donor fund<strong>in</strong>g is<br />

<strong>in</strong>creas<strong>in</strong>gly via on-budget support <strong>in</strong>stead of be<strong>in</strong>g off-budget, lead<strong>in</strong>g<br />

to better livelihood prevention strategies and larger national <strong>development</strong><br />

strategies which are consistent with meet<strong>in</strong>g the pr<strong>in</strong>ciples of the<br />

Paris Declaration and re<strong>in</strong>forced at the Accra High Level Forum on Aid<br />

Effectiveness.<br />

The evolution of decentralisation laws <strong>in</strong> the country cont<strong>in</strong>ues, as<br />

can be seen <strong>in</strong> related public expenditure laws such as Law No. 25/2004<br />

on National Development Plann<strong>in</strong>g and Regulation No. 21/2004 on<br />

L<strong>in</strong>e M<strong>in</strong>istry and Agency Budget Work Plan.<br />

This was well matched by the creation of the MDF. Without exception,<br />

all stakeholders <strong>in</strong>terviewed by the evaluation (<strong>in</strong>clud<strong>in</strong>g government)<br />

expressed the op<strong>in</strong>ion that the role of the MDF as a policy forum<br />

had an <strong>in</strong>fluence far wider than just fund<strong>in</strong>g projects. To a large extent<br />

it helped set the agenda for the BRR, particularly <strong>in</strong> terms of process<br />

(monitor<strong>in</strong>g, procurement, etc) and the sequenc<strong>in</strong>g of priorities (hous<strong>in</strong>g,<br />

<strong>in</strong>frastructure) 26 . The MDF is (<strong>in</strong> practice) a consensual body, not a<br />

vot<strong>in</strong>g body, and there is a degree to which this is perceived to lead to<br />

lowest common denom<strong>in</strong>ator approaches – arguably, this happened <strong>in</strong><br />

2005 when construction projects with output <strong>in</strong>dicators (numbers of<br />

newly built houses, for <strong>in</strong>stance) outstripped the more medium term<br />

(and less visible) livelihoods projects 27 .<br />

But this was not a problem <strong>in</strong>herent to the MDF itself, as it simply<br />

reflected the k<strong>in</strong>d of projects be<strong>in</strong>g submitted by partner agencies. By<br />

2007, as policy-driven consensus had <strong>in</strong>creased, the MDF was, for<br />

<strong>in</strong>stance, tak<strong>in</strong>g a lead <strong>in</strong> encourag<strong>in</strong>g capacity build<strong>in</strong>g and tra<strong>in</strong><strong>in</strong>g<br />

projects (and components with<strong>in</strong> projects) for local government.<br />

Separate EC 28 and DFID reviews of the MDF concluded with a<br />

largely positive appraisal, <strong>in</strong> spite of serious delays <strong>in</strong> fulfill<strong>in</strong>g objectives.<br />

The MDF performed considerably better <strong>in</strong> the second year, and<br />

lessons from the above evaluations (particularly on start-up, more rapid<br />

release of funds, and how to overcome bureaucratic bottlenecks) have<br />

clearly translated <strong>in</strong>to more efficient decentralisation.<br />

26<br />

DFID Country Programmeme Evaluation for Indonesia, ITAD, Chris Barnett et al.<br />

27<br />

TEC Synthesis Report, 2005<br />

28<br />

“Mid-Term Evaluation of the Multi-Donor Fund for Aceh and Nias”, Particip and <strong>Channel</strong> <strong>Research</strong><br />

for the EC, 2009.<br />

43

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