The Determinants of Local Public Service Delivery in Decentralized Indonesia

The project analyzes the effect of decentralization and democratization on public service delivery levels for selected sectors in Indonesia. We use as our dependent variables the number of junior secondary schools per 100 children of junior secondary school age, the junior secondary net enrolment rate (NER), the number of health posts per 10,000 people, the share of births attended by medical personnel, the share of villages with paved roads, and the share of households with access to clean water. These variables were selected because they are the best measure of services provided at the district level after decentralization. We estimated a set of empirical models using an unbalanced panel dataset of 418 districts in Indonesia from 1994 to 2010. We find signs of convergence because districts with a low initial level of service tended to increase their service level faster relative to the more advanced ones. The results also show that decentralization tends to improve service delivery levels, but there is no clear effect of direct elections. Furthermore, direct elections do not have a differential effect for districts with higher political concentration, except in the case of road infrastructure, which improves even further in districts with relatively higher political concentration.

Ansprechpartner: Prof. Dr. Günther Schulze
Tel: 0761 203-2342
Email: guenther.schulze@vwl.uni-freiburg.de

Projektbeginn: 01.10.2011
Projektende: (unbegrenzt)

Schulze G, Sjahrir Putra B

Albert-Ludwigs-Universität Freiburg
Abteilung für Internationale Wirtschaftspolitik
am Institut für Allgemeine Wirtschaftsforschung
Platz der Alten Synagoge
79085 Freiburg i. Br.

Telefon: 0761-203 2342
Fax: 0761-203 2414
Email: judith.mueller@vwl.uni-freiburg.de
http://www.vwl.uni-freiburg.de/iwipol/sopo.htm

• Schulze G
• Sjahrir Putra B

Bambang Suharnoko F. Sjahrir Putra (World Bank Indonesia)

decentralization, public service delivery, local governance