Why do some rural communities escape poverty faster than others? A recent study in Indonesia highlights that the answer may lie in the quality of governance at the local level.
The article titled “The Effects of Governance and Multidimensional Poverty at the Grassroots Level in Indonesia” was published in the journal Public Policy and Administration (Vol. 23, No. 2, 2024). The study examines how governance practices influence both objective and subjective poverty in rural communities, particularly in Gowa Regency, South Sulawesi.
Good governance refers to how governments make and implement decisions that are transparent, accountable, participatory, and responsive to citizens’ needs. In the context of poverty reduction, governance plays a crucial role in ensuring that public services and social programs reach those who need them most.
The research found a strong and statistically significant relationship between governance quality and poverty reduction. Key governance factors such as community participation, accountability, public administration procedures, and e-government initiatives were shown to significantly lower poverty levels in rural households.
For example, increased participation in local decision-making—such as village elections and development planning—was associated with a noticeable decrease in poverty levels. Similarly, improvements in administrative efficiency and digital government services made it easier for citizens to access support, ultimately enhancing income and well-being.
However, not all governance aspects showed equal impact. Transparency, corruption control, and public service delivery did not demonstrate a statistically significant effect in the short term, although researchers note these factors may still contribute to long-term poverty reduction.
The study also highlights ongoing challenges in rural Indonesia. Despite government initiatives such as the Village Fund (Dana Desa), poverty rates in rural areas remain higher than in urban regions. Limited access to resources, infrastructure, and information continues to hinder progress.
Importantly, the research emphasizes that poverty is not only an economic issue but also a matter of perception. In addition to objective measures like income, the study considers subjective poverty—how individuals perceive their own well-being, including access to housing, healthcare, education, and basic needs.
This issue is closely linked not only to SDG 1: No Poverty, but also to SDG 16: Peace, Justice and Strong Institutions. The study shows that reducing poverty is not only about financial support, but also about building accountable, transparent, and participatory governance systems. In addition, the role of digital public services connects this issue to SDG 9: Industry, Innovation and Infrastructure, highlighting how technology can improve access and efficiency in rural development.
For policymakers, the message is clear: improving governance systems is just as important as providing financial assistance. Efforts should focus on increasing community participation, simplifying administrative procedures, and expanding access to digital public services.
Indonesia has made significant progress in addressing poverty, but this study shows that governance quality remains a key factor in determining success. By strengthening local governance, the country can ensure that development benefits reach even the most vulnerable communities.
Reference:
DOI:Â https://doi.org/10.13165/VPA-24-23-2-10
Contact:
Prof. A.M Rusli
+62 823-4666-0234
andimrusli@unhas.ac.id