Ministry of Villages, Development of Disadvantaged Area, and Transmigration (MoV) and World Bank
Report of the Senior Management Strategy Retreat - Village Investment for Rural Growth
Jakarta, October 5, 2016
The 1-day strategy retreat was held to provide an opportunity for MoV senior management and the World Bank team to develop a common understanding of the challenges and opportunities for village investment in connection with the implementation of the new Village Law.
The retreat was opened by Minister Eko Putro Sandjojo who provided a clear vision of sustainable village development to be hinged on rural economic growth. He emphasized the need for local capacities and a service infrastructure that lead to economies of scale. The workshop was attended by about twenty-five echelon 1 and 2 officials from MoV and World Bank specialists. Participants of the retreat consider the new Village Law to be a strategic foundation that provides an enormous opportunity for villages to self-accelerate investments in physical and non-physical assets that are expected to improve rural productivity, incomes, and welfare. This set the basis for the day’s discussion.
A major challenge faced by the Ministry is that villages do not have sufficient management skills needed for economic development and not all villages have the needed human capacities. The Minister explicitly conveyed the ministry’s key priority to ensure villages are equipped with the capacity and technical inputs they need to effectively use these fiscal resources for rural development and welfare.
The first point stressed by the Minister was the unique environment of Indonesia’s 74,000+ villages whose economic growth becomes the ministry’s priority. MoV is strategically considering a model to help villages become more focused on economic growth, equipped with more adequate economic development skills and an integrated supply chain.
Participants agreed that three driving forces underpin economic development at the village level: (i) A clear understanding of human capital needs, economic development needs and cultural needs backed by reliable data, (ii) A sustainable support infrastructure for villages that provides high-quality facilitation and technical assistance based on a viable business model, and (iii) an innovation brokering function that connects needs to solutions and provides vertical and horizontal innovation sharing support, as well as skills building for facilitators.
DEVELOPING THE MODEL : DISCUSSION AND RESULTS
Session 1: Needs Analysis
What would the villages need to invest on to achieve MoV’s vision?
In a first group exercise the participants were asked to identify the needs of villages that would achieve the ministry’s vision of rural economic growth. The needs were categorized in three main areas: (1) Human capital needs, (2) economic development needs, and (3) cultural needs. Inspiring examples, such as the Desa Supermart were highlighted to showcase that there is not a shortage of innovation in rural areas, but innovative solutions may not travel enough to inspire other communities.
Using MoV’s three pillars aimed toward innovative villages, (1) Jaring Komunitas Wiradesa (villagers’ network community), (2) Lumbung Ekonomi Desa (village economic center), and (3) Lingkar Budaya Desa (village cultural system), the needs of villages were identified as follow:
In a second session the participants looked at the support mechanisms needed to achieve economic growth and to address the needs in the three categories outlined above. The discussions also identified characteristics of facilitation support that would help MoV achieve its vision. Participants agreed that institutionalization of support structures will be critical in order to achieve sustainability and economies of scale. Partners such as NGOs, CSOs, private consultancies, universities, religious leaders, village champions and others were mentioned as important contributors.
Session 2: Village Support Structures
What support structures would the villages require to accommodate their needs? A market-based professional approach to facilitation support would be required to answer the needs of villages identified above, placing facilitators as key actors in the support system. The supporting structures identified by participants were as follow:
- Human touch / skills / capacity / interpersonal skills;
- Understanding of the market / business skills / negotiation skills;
- Access to many solutions and data;
- Communication skills;
- Technical competencies;
- Pragmatism / realism;
- Inclusions and knowledge of culture;
- Motivation and passion and attitude
- External stakeholders such as companies, NGOs, local government, or community associations
Villages would need to be motivated to receive or pay for these support. The following points were considered to be key in convincing the villages:
- Having villages’ involvement and participation in the process;
- Providing concrete benefits they could receive, such as economic and other value-added benefits;
- Building understanding of the benefits;
- Showing proof, demonstration, and examples for the villages to see;
- Expressing recognition through media attention, publications, and social media, and rewards through awards, such as most innovative or most improved village
Session 3: Brokering innovations
The needs and support structure will need to be connected for village economy to grow through a system and a model for facilitators to use, such as the following:
- a system needs to be in place and create an economic model based on the knowledge, innovation, and inspirations that exist in the villages;
- a model needs to be fundamentally and economically sustainable, self-sufficient, and viable; and
- install and provide training for facilitators who have some of the following basic requirements:
- Human / inter-personal skill
- Understanding of the market
- Access to many solutions
- Ability to communicate with people and all levels of local government
- Sense of empathy
- Communication skills
- Technical skills
- Inclusiveness / understanding of local culture
- Motivation and passion
- Aware of the need for data and data support
In summary, the needs, support factors, and brokering innovations is summed up in the following graphic on Village Innovation Marketplace Model:
Session 4: How could the World Bank support MoV in achieving its vision?
The workshop achieved its purpose in triggering the identification of a list of activities on which MoV and the World Bank could collaborate. A set of strategic activities were identified as ideas to be pursued further:
- Training of facilitators to ensure their competences with compatible trainings using World Bank resources:
- Focusing on cost-efficient and effective training models such as internship / OJT, and cross-learning/field visit to villages that are considered successful
- Facilitator jamboree for peer learning
- Create partnerships with NGOs/universities/other parties that already work on facilitation/training
- Benchmarking system: mapping solutions and success stories
- Data, information, knowledge repository, preferably IT-based universally accessible mobile application
- Mapping of village needs
- Innovation funds as incentive/bonus for villages to perform
- Recognition / award mechanism at sub-national and national levels
- Profiles of successful village heads and other experts at sub-national and national levels
- Performance measurement system for facilitators, using civil servant system as a basis
- Contractual / business-oriented support mechanism
- Capacity development of MoV staff based on training needs assessment
- Market assessment on existing support infrastructure (service providers) such as village incubation centers
- Solutions capturing mechanism to capture village innovations and experiences
- Graduation program for facilitators through market-based support
- Recognition of facilitators: ceremony in Jakarta for selected champions
- Village week as opportunity to take stock and share knowledge
Based on the day’s discussion and key points stressed by the Minister during his opening remarks, the participants came up with the following actions to be taken.
These actions are to be followed up by both MoV and the World Bank within the timeline written here, with detailed planning to be discussed further during a scheduled workshop in early November.