Urban Local Governance Reform Project in Indonesia

The Capstone team was responsible for researching a broad range of issues pertaining to decentralization as background for the preparation of a new World Bank loan to support decentralization in urban areas of Indonesia. The Capstone team produced two papers. The first paper involved research and review of past and current urban projects in Indonesia (of both the World Bank and other donors) to extract positive and negative experiences that reflect the problems and best practices of projects in the urban sector. The second paper consisted of, a sampling of projects deemed to be "state of the art," from Southeast Asia, Eastern Europe, South America and Africa, that were examined to extract lessons from their key design features and relationship to the respective country's decentralization experience. It is expected that these two papers will inform a proposed project which seeks to implement a sustained program for local government reform in the context of an evolving decentralization program.