RURAL WORKS PROJECT, PADAT KARYA GAYA BARU : SOCIO-ECONOMIC ASSESSMENT

THIS REPORT IS A SUPPLEMENT TO THE 1977 EVALUATION (PD-AAA-428-A1) AND FOCUSESONLY ON THE PROJECT'S SOCIO-CULTURAL ENVIRONMENT, BENEFICIARIES, AND BENEFITS. THIS SOCIO-ECONOMIC ASSESSMENT IS BASED ON A 10/77 FIELD SURVEY OF 34 (20%) OF THE 169 SUBDISTRICTS IN WHICH THE LABOR-INTENSIVE SUBPROJECTS WERE LOCATED. 1,200 PEOPLE WERE INTERVIEWED; 827 OF THEM WERE HEADS-OF-HOUSEHOLD IN BENEFICIARY VILLAGES. AMONG THE 34 SUBPROJECTS, 13 WERE CONCERNED WITH CANALS FOR IRRIGATION OF FLOOD CONTROL. THESE DIRECTLY AFFECTED 1,300 HA OF CULTIVATED OR CULTIVATABLE 1AND. FLOODING WAS CONTROLLED ON ANOTHER 1,600 HA IN SURROUNDING AREAS. AT LEAST 75 HA OF FISHPONDS WERE CREATED OR IMPROVED. IF ALL THESE CANAL SUBPROJECTS WERE BROUGHT INTO FULL OPERATION, EXTENDED SLIGHTLY, OR IMPROVED TO TAKE A GREATER VOLUME OF WATER, ANOTHER 3,000 HA WOULD PROBABLY BENEFIT. CANALS HAVE PERMITTED CULTIVATION OF PREVIOUSLY UNCULTIVATED 1AND, DOUBLE CROPPING ON SINGLE CROP LAND, INCREASED YEILDS, AND CREATION OF FISH PONDS. THE $313,250 INVESTMENT IN THESE CANALS (83% OF WHICH WENT TO SUBPROJECT LABORERS) WAS MORE THAN RECOVERED WITHIN A YEAR THROUGH INCREASED AGRICULTURAL PRODUCTION. IN THE 10 CANAL SUBPROJECTS FOR WHICH FIGURES WERE AVAILABLE, AGRICULTURAL EMPLOYMENT OPPORTUNITIES INCREASED 60% AFTER THE SUBPROJECTS WERE COMPLETED. ECONOMIC BENEFITS RESULTING FROM THE ROAD SUBPROJECTS WERE LESS APPARENT. PRODUCER INCOME ROSE NOT ONLY BECAUSE OF MORE DIRECT, RAPID ACCESS TO MARKET BUT ALSO BECAUSE OF THE BYPASSING OF THE MIDDLEMAN. ALSO, THE PRICE OF GOODS AVAILABLE IN THE VILLAGES DECREASED. INCREASED PRODUCTION, GREATER CASH FLOW IN PROJECT AREAS, AND MORE ACCESSIBILITY HAS ENCOURGAGED ENTREPRENURIAL ACTIVITY, INCREASED LAND VALUES (REPORTEDLY AS MUCH AS 50% OF PROJECT VILLAGES), & IMPROVED THE QUALTIY OF VILLAGE LIFE. THE STRONG VILLAGE STRUCTURE IN INDONESIA SUPPORTS THE DECENTRALIZED PKGB PROJECT. OF THE 34 SUBPROJECTS STUDIED, REQUESTS FOR 23 WERE INITIATED AT THE VILLAGE LEVEL.