Article2020

A Critical Analysis of the Impacts of Financial Literacy and NPM on Village Funds Initiative in Indonesia

Harun Harun · Peter J. Graham · Haryono Pasang Kamase · Monir Zaman Mir

37 citations0/0 files storedInternational Journal of Public Administration

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Local Governance and Development Local Government Finance and Decentralization Public Administration in Developing Nations

Abstract

Since 1999 the Indonesian government has adopted a more democratic and autonomous political system to prevent national disintegration and reduce the economic ‘divide’ that has appeared in society. To support the policy, the government introduced the Village Funds Initiative in 2014. This study examines how the initiative has been ineffective and riddled with problems due to structural challenges including low financial literacy, complicated budgetary and reporting systems and corruption. The study reminds policy-makers the dangers of NPM (New Public Management) ideology which derived from neoliberal philosophy, and subsequently used in decentralization programs without considering local issues within an individual country.

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References

2011Case study research: design and methods 1991Democracy's Third Wave 1995Experts, networks and inscriptions in the fabrication of accounting images: A story of the representation of three public hospitals 1998Why Most Developing Countries Should Not Try New Zealand's Reforms 1993Managerialism and the Public Services: Cuts or Cultural Change in the 1990S?2006New public management in developing countries 2016Village Governance, Community Life, and the 2014 Village Law in Indonesia 2017Governance Reforms: the Good, the Bad, and the Ugly; and the Sound: Examining the Past and Exploring the Future of Public Organizations

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2022A Growing Light in the Lagging Region in Indonesia: The Impact of Village Fund on Rural Economic Growth 2020Financial Literacy in Asia: A Scoping Review 2023The Village Fund Program and Indonesia’s 18th Sustainable Development Goal: A Bibliometric and Content Study 2024Village fund program in Cibeureum and Sukapura village, Bandung Regency, Indonesia: Problems, risks, and solutions 2024Village fund management and reporting systems: are they accountable?

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