Poverty Reduction at Local Level Challenges in Eastern Indonesia Birgit Kerstan, GTZ, Program Poverty Alleviation and Support for Local Governance in the Nusa Tenggara Provinces Workshop of the OECD Development Centre and the Development Assistance Committee (DAC)- Network on Governance (GOVNET), Paris, September 29-30, 2004

Challenges at local level Mainstream poverty reduction into sectoral development programs (integrate PRSPs into district development plans – mid term and annual) Identify local-specific poverty indicators by translating MDGs into local agendas Create conducive business environment: taxes and levies not burdening the poor, infrastructure and easily accessible support services Integrate planning and budgeting processes (provide budget ceilings for participatory planning) Allocate more funds to villages for projects designed and implemented by the communities

Priority areas for local level support Develop monitoring mechanisms for local specific development indicators Develop methods to capture the aspirations of women and the poor who can not be easily involved into participatory processes (public hearings of district regulations, village and district planning) Strengthen service providers – govt. and non-govt. – and promote mechanisms to measure customer satisfaction (report cards, complaint systems) Build capacities of elected representatives at district and village level regarding communication with constituents, legal aspects, budgeting Support NGOs to provide civic education for the poor