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Rhetoric and Practice: Rhetoric and Practice: Engagement between CSOs Engagement between CSOs

and the Word Bank in Indonesiaand the Word Bank in Indonesia

Oleh: Dian KartikasariOleh: Dian Kartikasari

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Soeharto regimeSoeharto regimeRelationship World Bank and Indonesia government:Relationship World Bank and Indonesia government:

• Indonesia is became one of the Bank’s biggest lenders in the world.

• The Bank ignored reality of systematically human rights abuses and military repressions.

• World Bank dealt with pervasive corruption, military power and human rights abuses (exp: lending some controversial projects witch violate human rights)

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• Independent and critical NGOs/CSO were not welcomed by Soeharto regime (Soeharto also oppressed CSO/NGO to silence : intimidation, torture and involuntary disappearance)

• Networking : International NGO- Indonesia NGO

Ignoring corruption and political repression in Indonesia caused the Bank greatest credibility problems, especially in the eye some NGOs/CSO.

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World Bank RoleWorld Bank Role• Coordinator for Consultative Group on Indonesia

(CGI) • Prepared report on Indonesia economy: CGI brief,

economy outlook, etc • Prepared assessments during Paris Club meeting

for debt rescheduling• Privatization support• Loan for poverty reduction: PPK, Social safety

net, poverty program• Loan for climate investment : infrastructure,

energy, propose policy, private sector participation

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International level situation International level situation

• Global solidarity pressured all international institution to be more transparent, accountable, democratic, respect and protect human rights, etc.

• Greater voice of CSO/NGOs give significant impact

• In 1997, World Bank has new strategy to manage and engage with civil society and NGOs.

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Change of World Bank Rhetoric Change of World Bank Rhetoric

speech in 1997, James Wolfensohn said:speech in 1997, James Wolfensohn said: The Voice of Civil society, the voice of all of you, is not fringe activity. It’s central to the development process. What we must have in term of new paradigm of the development is a partnership which works, where we get over stereotypes, the stereotypes that many of you had of the Bank of being tough, arrogant, not listening and dictating. Listen now to what the Bank is doing, and I have to tell my colleagues to listen to what civil society saying. We need each other, because the objectives of civil society ant the objectives of the official organization are not on some different path. They are to make the world a better place and to give people opportunity, such as education and better health. It is person to person, people to people, opportunity giving for these countries and we can have an interlinked justification, and we can have moral justification and we can have a social justice justification. (Wolfensohn, 1997b;69)

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The World Bank after SoehartoThe World Bank after Soeharto

• Soeharto step down ( May 1998) • Soeharto authoritarianism and political stability he

enforced were gone • This situation creating problems for the Banks (economic

agenda was under pressure as a consequence of the 1997/1998 economic crises).

• WB remain one of the biggest donor and creditor to Indonesia after Japan

• NGOs/CSO have greater space, play their role in constitution amendment, legal/policy reform, recommend to end relationship with IMF

• World Bank needed new strategy to encourage political stability to invite investor back to Indonesia and development agenda.

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Continued…………Continued…………

• The World Bank New Strategy in Indonesia – Speak out against corruption and admitted its past

mistake– Promote good and clean governance– Closer communication and dialogue with NGOs and

inclusion of NGOs in CGI meetings.– Involve NGOs/CSO in policy dialogue/consultation – Invite NGO/CSO to take a part World Bank’s project – Capacity building for NGO

– Call proposal for grant.

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How is NGO/CSO respond/position How is NGO/CSO respond/position NGOs/CSO is not united community. The have NGOs/CSO is not united community. The have

differences perspective, position and strategy:differences perspective, position and strategy:

1. Totally engage • Some NGOs became vehicle through

development services (health, welfare, education, engendering development, public services) and involve in some World Bank’s project, such Kecamatan Development Project, National Program People empowerment, advocated for increased intervention of the World Bank, receive grant.

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2. Critical engagement • Involved dialogues with World Bank,

challenge legitimacy of Word Bank’s role and agenda, highly critical World Bank’s development agenda and role in Indonesian political, legal and economic life, advocate for changes to Bank’s role and agendas.

• (receive or refuse the Bank’s Grant )

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3. Non engagement

• Do not engage on ground that the Bank is not legitimate, not relevant anymore and believe that The Bank will never willing to change or accommodate civil society’s perspective.

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INFID roleINFID role

• Advocate debt relief/debt cancellation base on human rights approach

• Advocate the revision of privatization (process and scope of privatization not to privatize basic need and public services such water)

• Advocate the consistency and coherency between macro economy and poverty reduction goals and MDG.

• Advocate the prosecution of soeharto and his cronies, seized his assets

• Advocate for the victims of human rights violation.• Joint with international NGO network called to reform

International Financial Institution (at the governance level and program level)

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Lessons learned : ChallengesLessons learned : Challenges

• WB and IMF In Indonesia is holding a kind of monopoly of analysis and solutions in development; especially the macro-economy of Indonesia

• Participation, yes (there are some dialogues and consultations), but meaningful participation is not happened

• Transparency yes, but not all document accessible for civil society.

• WB rhetoric on poverty is good, but the poverty program is under conservative model of economy

• They admitted the problem, but then they have different solutions

• WB said that Indonesia and other middle income countries are not eligible for debt relief

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Lessons Learned: OpportunitiesLessons Learned: Opportunities

• Use the rhetoric of poverty and participation of WB to promote the rights approach

• Take one issues: debt, budget, etc to questions the policies (macro-economy) and projects.

• Use the forum available (consultation meeting- in country level and regional level) to present alternative view and analysis, also cases from the ground/field

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Thank you……Thank you……