This electronic thesis or dissertation has been downloaded from the King’s Research Portal at https://kclpure.kcl.ac.uk/portal/ Have Decentralisation and Democratisation been Effective in Promoting an Inclusive Social Protection System in Indonesia? A Comparative Case Study of the Implementation of Social Protection Programmes in Central Java Wardhana, Dharendra Awarding institution: King's College London The copyright of this thesis rests with the author and no quotation from it or information derived from it may be published without proper acknowledgement. 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Take down policy If you believe that this document breaches copyright please contact [email protected] providing details, and we will remove access to the work immediately and investigate your claim. Download date: 26. Sep. 2021 HAVE DECENTRALISATION AND DEMOCRATISATION BEEN EFFECTIVE IN PROMOTING AN INCLUSIVE SOCIAL PROTECTION SYSTEM IN INDONESIA? A COMPARATIVE CASE STUDY OF THE IMPLEMENTATION OF SOCIAL PROTECTION PROGRAMMES IN CENTRAL JAVA Dharendra Wardhana A thesis submitted to King’s College London for the degree of Doctor of Philosophy in Development Studies with reference to Emerging Economies November 2017 Abstract Decentralisation, democratisation, and social protection (SP) are widely regarded as three important endeavours that developing countries ought to pursue. Research has, however, neglected the relationship between these three. An exploration of this interplay is important given that efforts by decentralised governments to expand SP are often unaccompanied by sufficient resources. In the Indonesian context, most local governments struggle to maintain the viability of SP while attempting to garner electoral votes with various entitlement programmes. This thesis addresses this gap in the literature. The thesis asks what mechanisms of decentralisation and democratisation have supported SP effectively. The study uses a mixed method approach and finds the quantitative results to be consistent with the qualitative findings. The finding suggests that being strategically responsive to the needs of the public, local governments tend to expand their SP programmes. The thesis is comprised of three parts. The first concerns the conceptualisation of theoretical and methodological frameworks, underpinned by theories and assumptions in the literature. In the second part, one framework has been utilised to explore the secondary quantitative data sets obtained from the World Bank’s INDO- DAPOER repository and series of annual household surveys (Susenas). These two are followed by an in-depth qualitative exploration of case studies in two selected districts, specifically, Surakarta and Sragen. The thesis contributes to knowledge about SP programmes in democratic settings and their effectiveness in poverty and vulnerability reduction. The findings of the thesis highlight the factors that mediate the development of SP at the implementation level. The study concludes that current fiscal arrangements are susceptible to the fluctuations generated by budget cycles related to elections. The case studies in this thesis corroborate the argument that although the expansion of SP is an important way to reduce poverty and vulnerability, it does not necessarily ensure success in local elections. i Have Decentralisation and Democratisation been Effective in Promoting an Inclusive Social Protection System in Indonesia? A Comparative Case Study of the Implementation of Social Protection Programmes in Central Java Table of Contents Abstract .................................................................................................................................................... i Table of Contents .................................................................................................................................... ii List of Tables ........................................................................................................................................ viii List of Figures ......................................................................................................................................... ix Glossary .................................................................................................................................................. xi PART I INTRODUCTION............................................................................................................................ 1 Chapter One: Introduction and Background to the Thesis ..................................................................... 1 1.1 Introduction .................................................................................................................................. 1 1.2 Motivation and Rationale for Research ........................................................................................ 5 1.3 Research Objectives and Questions .............................................................................................. 7 1.4 The Scope of the Study ................................................................................................................. 9 1.5 Description of Poverty and Vulnerability ...................................................................................... 9 1.6 Structure of the Thesis ................................................................................................................ 16 Chapter Two: The Indonesian Context ................................................................................................. 18 2.1 Country profile ............................................................................................................................ 18 2.2 Political Developments ............................................................................................................... 19 2.2.1 Pre-Independence Period (pre-1945) .................................................................................. 20 2.2.2 Revolutionary and Nation-building Period (1946-1965) ...................................................... 22 2.2.3 New Order Period (1966-1998) ............................................................................................ 26 2.2.4 Reform Period (1999-2004) ................................................................................................. 28 2.2.5 Consolidation Period (2004-present) ................................................................................... 31 2.3 The Emergence of Decentralisation and Democratisation ......................................................... 32 2.3.1 Policy Context and Process .................................................................................................. 33 2.3.2 Democratic Politics and Public Participation ....................................................................... 35 2.3.3 Designing Organisations for Autonomous Governments .................................................... 36 2.3.4 Fiscal Decentralisation and Regional Developments ........................................................... 37 ii 2.3.5 The Lessons and Prospects .................................................................................................. 38 2.4 The Development of Social Protection ....................................................................................... 40 2.4.1 Overview of Social Welfare Prior to the Asian Financial Crisis ............................................ 42 2.4.2 Social Safety Net Programmes as a Response to the Crisis ................................................. 44 2.4.3 Reforms and the Expansions of SP ....................................................................................... 45 2.4.4 The Coordinative State and Roles of Local Governments .................................................... 48 2.5 Summary ..................................................................................................................................... 49 PART II LITERATURE REVIEW ................................................................................................................. 52 Chapter Three: Decentralisation, Democratisation, and Social Protection: A Review of Theory and Empirical Evidences............................................................................................................................... 52 3.1 Introduction ................................................................................................................................ 52 3.2 Theories of Democratisation and Decentralisation .................................................................... 53 3.2.1 Decentralisation: Concepts and Dimensions ....................................................................... 55