15 People-based approaches: A basis for decentralized rural development for self help group promotion, Em Haryadi, Indonesia
An overview of development approaches in Indonesia
During the Green Revolution of the 1970s, the government, Department of Agriculture and donors were the main actors. Farmer groups were targeted with inputs of farm technology, chemical fertilizers, pesticides, production credit and extension services. Outputs included increased food/rice production. This resulted in varied impacts: in 1986 the country achieved self-sufficiency in rice production, an achievement recognized by an FAO award. Impacts, however, included decreased farmer income due to high dependency on chemical inputs, the environment was damaged, the gap between the rich and poor increased and there was much migration to the cities.
During the Basic Needs period of the 1980s, government was the provider and the private sector was supplier, targeting the people at large. "Presidential Instructions" on varied themes, such as education, health, economy, and welfare, were the primary inputs. Outputs included decreased illiteracy, IMR and poverty. Resulting impacts included leaving the marginalized behind (survival of the fittest), an increased gap between the rich and the poor and, more positively, an increasingly well-educated work force.
The 1990s were characterized by growth-led development. Government, international financial institutions, multilateral donors and trans-national corporations were the main players. The market and customers were the primary target. Inputs were capital-centred, hi-technology investment for industry; raw materials were important for production; while large-scale exploitation of both human and natural resources took place; producers looked to internatioanl markets for foreign exchange earnings; period GNP rose from US$50 in the 1960s to US$1 200 in 1996; and hi-tech was applied and necessary goods and services were available. Impacts were felt especially in the degradation of natural resources, a high dependence on foreign debt, high unemployment (due to hi-tech applications) and a growing informal sector (65 percent).
In short, Indonesia's current development approaches are centralistic and dominated by government as providers and business sector as suppliers and income earners. The people are the recipients and objects of development. Since development strategies are government and capital-centered, the people have been marginalized. People serve the economy to create profit for capital. It is profit before people. The challenge: to change development approaches to become people-centred.
Impacts of the economic crisis
Past development achievements have disappeared due to the economic crisis: GNP descended to minus levels; foreign debt, both government and private, has mushroomed; poverty increased to over 80 million people (compared to 25 million previously); the growing gap between the rich and the poor is followed by social unrest and conflict; and unemployment has risen dramatically to explosive levels (15 million in 1998). The informal sector reaches to 65 percent of the total population; natural resources are overexploited; people have been marginalized. How to put people first in development is our challenge and opportunity.
People-based approaches
The mandate of people-based approaches is to alleviate poverty by promoting self-reliance development at aiming to mobilize their own capacity of development by organizing themselves into self help groups. The vision of people-based approaches: economically people-centered approach vs. growth approach; local-focused or decentralized development vs. blue-print development; socially just development vs. elite-centered; politically democratic vs.authoritarian regime; ecologically sustainable vs. resource degradation; ethically vibrant vs. KKN; gender balance vs. fe/male domination. Basic strategy: promoting self help groups for self-reliance development.
People-based strategies in Bina Swadaya
A community-based development strategy recognizes the capacity of people to manage resources and surrounding in a sustainable way. It recognizes that since the poor do not have the same mobility as investments do, the heart of development efforts must start where people are. Therefore, the basic strategies of the people-based development of Bina Swadaya are as follows:
Empowering self help organizations by promoting SHGs among the poor. on-farm activities, e.g. income generation projects in 10 regions; cattle breeding and compost making in Lampung; small scale irrigation in Indramayu; organic farming practices in Ambeno; agroforestry in Java; collective work in agriculture in cooperation with 43 NGOs; off farm activities, e.g. savings and credit associations in 10 regions; interlending services in 10 regions; banking with the poor in four rural banks; running self-employment/collective businesses in cooperation with 43 NGOs.
Bridging the gap: by inter-mediating the poor and the political and economic powers; promoting triangle cooperation among GOI, MFIs and SHGs in programs linking NGO-Bank and SHGs; consulting development projects for low-income communities in WSSLIC and KIP; Linking with research institutions on Lab to Land in participatory action research in tissue culture project; Advocating policy reform on people-based approaches in poverty alleviation (IDT), social forestry, urban poor project.
Building local capacity. Building the capacity of the poor in SHGs to undertake their own development efforts. Among others are training programs on SHG management; participatory leadership practices; financial and accounting system; micro-enterprise management; self-financing strategies of SHGs. These training programs were attended by over: 1 220 community development facilitators; 510 middle-level managers of development programs; 205 top-level managers of organizations/agencies.
Networking. Bina Swadaya is participating in the network among non-governmental organizations and self help groups based on common interest of issues, sectors, micro-finances, among others are: cooperative movement, micro finance and rural development.
Challenges/opportunities for decentralized rural development and self help group promotion
There is a range of challenges and opportunities from which Indonesia will benefit if they are responded to, The survival response for decentralized rural development and the role of SHGs is challenging and reforming the economic model from capital-centred to people-centered, characterized by development based on people's need; optimizing needs and benefits of the people as basic requirements; People organizing themselves into SHGs to undertake their own development for sustainable livelihoods. Since the main stakeholders in development, as well as the main taxpayers, are the people, therefore the main actor of development is the people themselves organized in SHGs. Government function is no more provider but as administrator of development. The NGO community has the task to empower the people to manage their own development programme and to bridge the government vis-a-vis the people organized in SHGs. People in SHGs have stewardship responsibility in using/managing natural resources as well as protectiong resources being depleted. Distributive justice for the people; fair trade and greater equity in resource sharing livelihood of the people and their basic needs (as well as gender balance). Therefore, it is our challenge and opportunity to determine how to attain decentralized rural development by promoting SHGs that are economically people-centered, socially just, politically democratic and participatory, ecologically sustainable, ethically vibrant and gender balanced.
