models, myths, realities: global models of pro-poor service delivery & political economic...

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Models, Myths, Realities Global models of pro-poor service delivery & Political economic realities in Jakarta, Indonesia STEPS – Liquid Dynamics II, 22 March 2011 Michelle Kooy, ODI

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STEPS Water & Sanitation Symposium 2011

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Page 1: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Models, Myths, Realities

Global models of pro-poor service delivery &

Political economic realities in Jakarta, Indonesia

STEPS – Liquid Dynamics II, 22 March 2011 Michelle Kooy, ODI

Page 2: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Global models of pro-poor service delivery & Political economic realities in Jakarta, Indonesia

Page 3: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia
Page 4: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Jakarta

Page 5: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Multiple waters, decentralised supplies, non-networked

Page 6: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Global architecture: 1997- 2024, 1999 and 2001

• Private sector contracts, 1999-2024

• Suez + Thames Water, West/East• 1999 – Asian Financial Crisis,

Suharto deposed• 2001 – renegotiated contract • 2004 – Thames withdraws,

replaced by domestic private sector

• Lack of incentives for pro-poor supply

Page 7: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Spatialised access – political policies

Page 8: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Model # 1. GP-OBA

• Global Partnership for Output Based Aid

• 5,000 vs. 20,000 cxns

• Low water pressure

• Low demand

• Delays, 2007 to 2009/2011

Page 9: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Local realities: challenges to the model

• Political – evictions• Technical – no water• Regulatory – cancel tariff

increases = lower average tariff rate

• Low demand from the poor

Page 10: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia
Page 11: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Model # 2. Community operated piped water supply: partnership with private sector

• Community owned, managed, maintained piped network– Meter reading– Bill collection– Infra repairs– management

• Connection to primary WS network line

• Agreement on tariffs with WS company

• Co-financing & revolving fund

Page 12: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

• Households:

– Access to piped water (65 HH)

– No ID card required

– consume 2x as much water; pay ½ the cost

• Private sector:

– Reduce risk of providing to poor households

– Increase customer base/profits

– Reduce illegal cxns

– Monthly WS costs reduced by ½

Page 13: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

• Physical conditions– Water pressure/volume– Water quality– Storage space

• Economic conditions– Access to finance

• Political relationships– PAM Jaya vs. PALYJA vs.

local government vs. residents

• Social conditions– Perceived risk– Social conflict (bill collection,

enforcement)– mobility

Local realities: challenges to the model

Page 14: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Challenge: exposure to hazards & allocation of risk

Page 15: Models, Myths, Realities: Global models of pro-poor service delivery &  political economic realities in Jakarta, Indonesia

Local Political and Economic Realities

• Political Barriers– ‘Illegal’ or unregistered residents of the city, requires ID card

– Citizenship in the modern city excludes the poor

– Lack of political mandate - never in the mandate of the govt to provide for the poor

– Land tenure – no service to informal housing

• Economic Barriers– Conditions of the PSP contract, indirect disincentive to provide the poor

– Poor not seen as profitable and ‘too difficult to deal with’, higher rates of non-payment

– Affordability of a household connection

– Home ownership vs. renter

• Physical Barriers– Location of the network, doesn’t extend to urban poor settlements

– Water pressure & technical capacity

– Requires extra storage capacity (irregular service), requires land space